why are they selling at 12 cents, page-7

I estimate a half year profit of $16 million pre tax (UML has significant tax losses) assuming all exploration costs are written off.

I base this on

$4 million increase in cashflow
$6 million increase in inventories
$2 million increase in environmental bonds
$4 million increase in Goldstone holdings via share purchase.

If UML can keep this up they should make around $30 million for the full year - I would hope this would put them on the radar of a few more fund managers/investors as that is quite a tidy profit.

Obviously they need to keep increasing their reserves at Henty and prove up other resources in Tas and, Africa with hopefully some positive finds from their Victorian JV partners a bonus.

The last activity report mentioned an JORC upgrade in February so that is something to look forward to - currently they have around 4 years of reserves if they produce 50,000 ounces a year so it would be good if that can be extended out to five years and more by which time some of their africian exploration has started to yield cash.