- Current producer (100,00 ounces)
- One of the lowest cost producers in the world ($190 per ounce)
- Significant production increases planed over the next 5 years (100,000 to 400,000 ounces p.a.)
- Expansion potential clearly defined and significant
- Production increases to be achieved organically via cash flow
- Is now paying a dividend
- Very tight control over share issuance and shareholder dilution
- High profitability (over 40% return on equity)
- Strong and consistent cash flows
- Debt free
- High institutional ownership
- Has delivered on targets
There is a board restructure in progress with the current managing director Geoff Davis stepping down and being replaced with Peter Hepburn-Brown (current Executive Director of Operations).
This is unfortunate, however it does not cause me concern at this stage because Mr Davis will be reappointed as Non-Executive Chairman and Mr Hepburn-Brown seems well suited to steer the company's ongoing expansion. This will likely be a smooth transition and should not impact on the success of this fantastic company.
Disclosure: I own MML with an original entry price of $4.46.