CNCVenture, I think you nailed it. It is just weeks now that the new CEO is at the helm of MML. Still a very short period of time. I had some questions about the last quarterly report so I send Mr. Timler an e-mail. What do you think he gave me a call instead of just answering the mail. I very much appreciated that (I don't know if Mr. Timler will do that for everybody sending him an email. That will probably take too much of his precious time.) First thing I noticed is that he is a professional because he told me right away that he was only willing to speak to me about things he can share with me (so no delicate info about exact figures and no secret info).
We spoke, in general, about the following things: my main message was the need for a company like MML to have an open and transparent communication with its shareholders. I emphasized that this is important for the trust in the company and that this will lead to a proces where the true value of MML will surface. MML will have to put effort in this to reach a stable track record in communicating in the right way with its shareholders. Mr. Timler is aware of this. Some of the subjects that came along: what the mine is capable of after the work has been done in the mine (so future production levels and future AISC. No figures were given though); deliver on what you promise (very important!); are there growth prospects in the surroundings of the mine?; size and capabilities of new management team; things still to be done in the mine and the timetable of that; current constraint on production because of the work done in the mine and the relation with the lower head grade for example like we have seen in the march quarter.
Overall I had a good feeling about the conversation and I am of the opinion that MML, after the infrastructure works in the mine, will be a different MML than before and during the works. Gradually we will see the hand of the new CEO more and more, as it should. I do understand that some people are disappointed in the last quarter. I am to but I try to look through this phase of MML and am willing to wait for the next phase. It is my opinion that Mr. Timler knows what he is doing and that he will deliver what he (for the future: is going to) promise to the shareholders. Have some patience with MML. Perhaps we will be rewarded with a (very) profitable POG as well. In my note from a few days ago I talked about a framework of valuing a company like MML. I think the shareholders can use this to get a sense of the (future) value of MML and compare that with the value of the peers of MML based on the same framework. They can work with their own assumptions about POG; AISC, production levels and ROC (return on capital) and calculate the bandwidth of "fair values".
MML Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
