Ann: Investor Presentation May 2016-MML.AX, page-4

I will give it a try: first I very much appreciate the first sign of the new CEO. Last week I mentioned that a big part of our telephone conversation last week was about an open and transparent communication policy for MML. By that time he was probably already working on the " market brief" and the " investor presentation". So for that matter: I am encouraged by what I see now. If he keeps up this kind of communication then I will be happy.

On the content: the way I read it he is telling us what he is doing now with the Co-O mine. I especially like the new slides about the reserves/resources by level. Also he is giving us an inside on what he is working on for the next couple of years with the possible new projects in the surroundings of the mine (so the tier 1 projects). This is the most important for me. The tier 2 and 3 are further down the road and a lot can happen in that time. But you must have you plans ready. So he is making those steps.
About the near future of the CO-O mine. I think he is telling us that a sustainable level right now is the 110.000 OZ per year production (exactly the levelI pencilled in for the FY 16/17 in my framework for valuing MML). The growth towards a higher level (the + 110.000 OZ level) have to come from successful conversion from resources towards reserves by the current drilling program for the levels beneath level 8. Also not a surprise because MML is a narrow vein underground mining company. When the tier 1 expanding projects, together with the possibilities from the B1/2 deposits are successful then the production level can even be higher.
He is also saying that the cash will be sufficient for the current projects and that sustaining capital will decrease by completion of that. The message behind this is that finances are in control but only when the work is done the cash position will grow to a much higher level. About costs of further projects (B1/2, tier 1 prospects) I can't tell anything. Still to early
So in my opinion this is a realistic picture Mr. Timler is telling us. The production level of finally some 150.000 OZ is still very much possible in 2 or 3 years, the POG is always uncertain but for now profitable for MML. Valuation of MML will adapt to the sustainable production level of MML. If we reach the 150.000 OZ level and the POG is still around the $ 1.250,- or higher and the AISC has dropped, then the value of MML will be (much) higher. For now I am happy with the way Mr. Timler has taken his responsibilities as the new CEO of MML. I hope he will keep up this way of communicating.