Ann: Quarterly Report March 2016-MML.AX, page-20

Firstly, I only reduced my position in MML by a third on Friday, and I have no intention of selling more next week and I think MML will be flat to up on Monday for the following reasons:

1 - The flat share price recently (in spite of a rising PoG) suggests that some of the selling may have been occurring prior to the announcement
2 - The strong buying seen late on Friday with PoG at $1273 should only increase with the PoG at $1293
3 - The PoG in Q1 was $1173 where as its now $1293
4 - They still made money (kept costs under control) even with their lowest production since Sept 2014
5 - This quarter's setback hasn't changed the 2017 outlook

At these gold prices if Q4 production does hit the 25k Boyd is aiming for then MML should put a healthy amount of cash in the bank prior the EOFY and is still on track to produce a huge amount of Free Cash Flow by 2017.

Even on Q4 guidance at these share prices MML should have FCF of around 10% - which is better than 98% of stocks on the ASX.

So I think those selling MML at this point would have difficulty arguing "it's for financial reasons or because it has poor prospects" based on the information shareholders have been given. So I suspect selling at this point would be about "management trust issues" or "doubts about the information that has been given"...

Also I feel that with the PoG approaching the quite significant level of $1300 it will start to get media attention and retail interest may start picking up again!

Whilst that doesn't apply to MML specifically I think fund flows might start to improve for the industry in general which may begin to put some more upward pressure on gold miner SP's.