Horrible 2016/17results but it was expected. The gold production was revised downward twice this year. Unfortunately, I bought more shares after the first revision. I bought more after the second revision. Then we had the marshal law in Philippines! The only good news is the rising gold price which has nothing to do with the company. I hope they hedge some of their production using the high gold price at the moment.
The balance sheet of the company deteriorated. The current ratio decreased down to 1.5. The borrowing slightly increased. The market to book ratio is still low (around 0.3). With higher gold price, the company should make decent returns this year and even higher the following year.
The production guidance is low and the ASIC guidance has a high range ($1050-1200). Again, luckily the gold price is relatively high.
MML Price at posting:
29.0¢ Sentiment: Hold Disclosure: Held
