This is what I had been worried about since their last quarterly result.
With the first quarter's results being so poor they needed everything to go right in the next three quarters to even meet the LOW END of their guidance.
But this is even worse than I imagined it would be. I was thinking 95k to 100k for the FY.
MML's cash balance fell $2.4m last quarter when it sold 21k oz of gold at $1315/oz...
I cringe at how badly the cash balance will be hit this quarter selling only 17k oz at only $1215/oz!
And with the March quarter production volume now in question and additional capex to assess and fix L8 we can probably expect more cash burn in Q3 when I was originally expecting that Q3 would be when MML went back to being FCF+.
I hate to say it but a dwindling cash pile and a volatile gold price will only make MML a riskier investment than it already is. And increased risk doesn't help share prices.
If they had of announced this 4 weeks ago when gold was down and gold miners had negative sentiment the MML share price would have made new lows, might have even dropped into the 20s!
I suspect the market beat down tomorrow morning will be absolutely savage!t
