@ discoveryman. My understanding is that AISC does include...

@ discoveryman.

My understanding is that AISC does include office expenses (can someone with more knowledge of the matter please clarify).

Also, if we are talking about this year's income, I don't think today's gold price is reflective of what the FY14-15 income will be given that we are over 70% through the year already and have had a gold price that has averaged more like US$1240.

So if today's prices remain for the rest of the FY then doing the income calculation with a PoG of $1210 might be more appropriate.

Of course today's gold price does dramatically affect the valuation of the company.

Secondly you've assumed as AISC of $1000, when their guidance has been of having a AISC of $900 to $1000.

Normally I'd be OK with a conservative assessment, but given the dramatic falls in the price of oil I doubt this year's AISC will be at $1000, but we can still be conservative as say the AISC might be at the upper end around $975.

My gut tells me that in FY15-16 their guidance will be more like $850 to $950 (if not lower).

Finally, the above calacultions are being done in USD, but we are dealing in AUD.

So far this FY the AUD is averaging about $0.86, but currently sits at $0.76. I'm not sure if MML convert their USD at the end of the FY (that would be ideal given the recent falls) or if they convert throughout, but if we assume that the AUD remains where it is for the remainder of the FY, we'd end up with an average of around $0.82.

So now the conservative calculation looks different:

100,000oz x ($1210 - $975) / $0.82 = $28.6M

So that means:

PE = 175M (market cap) / 28.6M = ~6

And if we are looking forward for next year, but using today's PoG, PoO and AUD I think the equation will look more like this:
Net Income = 110,000 x ($1160 - $900) / $0.76 = $37.6M

And I think I'm being conservative.

That's my two cents.