Millennium Minerals which last week reported an after-tax profit of $31.8 million for the 12 months to December has a market value of just $43 million
Millennium Minerals which last week reported an after-tax profit of $31.8 million for the 12 months to December has a market value of just $43 million. The WA gold miner had been targeting higher production and lower costs in 2014 with enough in the ground for up to seven years production. It is reappraising these plans to take account of lower gold prices with a view to providing updated guidance in February. Investors should wait for this to happen but take another look. There is another attraction: the company has the chance to break the mold by making a commitment to direct a large proportion of future free cash flows to shareholders rather than look to put more into exploration.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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