They have already booked an EPS of US$ 12c/share for 1H15, so c. A$ 15.5c. A simple extrapolation over the full year would indicate a conservative EPS of A$ 31c for the year. At a SP of A$ 90c that's a P/E of only 2.9x !
But given the improved capacity of the L8 shaft it looks eminently probable that throughput will be higher over 2H15 so an EPS of A$ 33c looks achievable - ie P/E of 2.7x.
The improvements are clear from the quarterlies. Positive free cash flow at last, AISC reducing as throughput and grades improve, and estimating forward it looks as though AISC will drop to c. US$911/oz in 3Q15 and c. US$902/oz in 4Q15.
So what's not to like?
CPDLC
MML Price at posting:
90.0¢ Sentiment: Buy Disclosure: Held
