Reporting Season: Millennium reaffirms gold production guidance
Published 07-AUG-2018 10:53 A.M.
|
1 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Name: Millennium Minerals Ltd (ASX:MOY)
Market Capitalisation: $150 million
Intraday Share Price (August 6, 2018): 19 cents
Presenting on the first day of the Diggers and Dealers Mining Forum in Kalgoorlie, Millennium Minerals reassured investors that it was on track to deliver on calendar year 2018 production guidance in a range between 75,000 ounces and 80,000 ounces.
After falling short of production guidance and analyst’s expectations in the first half of calendar year 2018, Millennium expects to produce at least 45,000 ounces of gold in the December half.
This is a speculative figure at this stage and investors should seek professional financial advice if considering this stock for their portfolio.
Management is forecasting all in sustaining costs (AISC) to be in a range between $1280 per ounce and $1350 per ounce.
With the Australian dollar gold price hovering in the vicinity of $1640 per ounce that implies a margin of circa $320 per ounce.
Hartleys sees Millennium as a 2019 story
However, the company is really a 2019 story according to Hartleys’ resource analyst Mike Millikan.
He is forecasting annual production to increase to just over 100,000 ounces in that year with AISC coming back to $1274 per ounce.
Based on his gold price and currency assumptions for 2019, Millikan is forecasting that Millennium will generate a normalised net profit of $23.6 million, representing earnings per share of 2.3 cents.
Importantly though, with much of the capital expenditure behind it, he expects the company to increase cash flow per share by more than 50 per cent in 2019 to 5.8 cents per share.
Millikan has an accumulate recommendation on the stock with a price target of 25 cents per share.
It should be noted that broker projections and price targets are only estimates and may not be met. Those considering this stock should seek independent financial advice.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.