Millennium Minerals (ASX.MOY), the Western Australian gold producer, has had a year of mixed results

Adam Kiley

Millennium Minerals (ASX.MOY), the Western Australian gold producer, has had a year of mixed results. Whilst annual gold production exceeded our expectations (Actual 75,867oz vs. Forecast 74,000oz Au), high operating costs and a change to the mine schedule has caused investors to be concerned about Millennium's ability to repay their debt obligations and has resulted in a significant fall in the share price over the past few months. We therefore have reduced our valuation to $44m or 0.20/share. The reduction in our valuation is due to a number of factors; namely a change in our mine schedule and mine life assumptions as well as an increase in our cash cost assumptions. We however highlight that a significant reduction in operating costs is required imminently for this potential valuation to be achieved. If Millennium continues to operate at their December costs it is likely the company will have insufficient funds to meet their debt obligations. However if there is an improvement we believe our valuation can be reached in time. Link to full report & video (VIEW LINK)

Adam Kiley

Adam is the Founder and Principal of (TSI Capital). TSI provides equity analysis of listed companies, however, is different from traditional providers as TSI presents its analysis in a video format. This includes...


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