Someone is buying up - there was a large 500k bid at 72 cents on the open, and now 1.013m shares have traded in the first 31 minutes since opening. Many goldies are a bit down this morning while MML is up marginally.
I would like to see the new CEO and Chairman put up some money acquiring shares to show that they believe in the future of the company. That is what Bob Vassie and a new director did at SBM when the share price was near the lows.
At present the company is being run for the benefit of the local community and not its shareholders.
The main issue with the quarterly report, and noted by us, is the grade fell well below the reserve grade of around 7 g/t - there was no excuse for this and it was clearly a case of excess ore dilution by the miners who almost maintained the level of ore mined (so that they got paid by volume) but took too little care to ensure they were not counting rubbish as ore. This have been an ongoing problem which seemed to be under control by the former COO and his local ex-pat helper, both now gone.
MML still has Paradice as a substantial shareholder, and recently acquired another fund as a substantial holder so it seems others still see value here.
Basically I think the BoD needs to be cleared out, except for the CEO who may be OK - way to early to tell if he can fix things.
loki
MML Price at posting:
71.0¢ Sentiment: None Disclosure: Held
