There will always be " believers" and " non believers" . This makes markets and will not go away.
But sometimes " non believers" focus on what has happened and are unwilling to look at what has changed. For MML that big change was the new management and delivering on what they promise.
As an equity investor you always have to ask yourself " what is discounted in the SP". In the case of MML it is my opinion " a lot of negative things". The new management is making the company fit for a structural higher production of gold. It has to invest for that. Does it pays off? I will think so with a production level of something more than 62.000 OZ in FY 13/14 towards a level of around 140.000 for the FY 16/17. These changes make it possible for MML to grow the cash level again and yes it is important for the company to be aware of the costs and do everything to keep control of costs. I will monitor that very carefully in the next 1 to 2 years. But if management is able to let the AISC- level around the $ 1010 to be the max and can show investors that it will decrease towards a more competitive level (that is why I keep repeating that man agent must guide investors more on this matter) than the " believers" will bring the SP to a more appropriate level.
This is what is making the equity markets so exciting and unpredictable at the same time. I am a believer and trust the management to turn the corner to produce a lot more OZ at a competitive cost-level.
MML Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
