Because they are so fundamentally cheap based on what they are capable of producing and that their C1 cash costs are around $550/oz and the fact that their costs are not going to rise when their production does. Total costs will be around $24mil/qtr whether they are producing 20,000 or 30,000 ozs/qtr so I'm expecting at least 90% of the increased revenue to fall to the bottom line, before tax.
And IMO they are capable of producing 35,000 ozs/qtr once the E15 Service Shaft is in operation from Feb/Mar18.
MML Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held