Millennium Minerals Limited (MOY.ASX) | Price = 24.5c | Target = 27c | MOY =3A Gold price PLUS self=2Dhelp increasing value

MOY�s has had strong operational performance

Beer & Co sees more operational upside to MOY

Gold price is also helping

Beer & Co affirms our BUY, High Risk, recommendation.

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The rising gold price has lifted the prices of all gold producers, including MOY which has risen strongly due to

Leverage, due to the cost of production;
Higher than guided production, with 45.9koz produced in the first 6 months, compared with guidance of 80 � 85koz; and
Better than expected costs, given higher royalties and higher capital investment.

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In our last update, Beer & Co stated that MOY was being priced on reserves plus cash, with no value for the gold mineralisation at Nullagine.

Beer & Co believes that the market is now beginning to recognise some value for Nullagine and MOY�s operational potential. There is significant upside to Beer & Co�s base case valuation from

Higher grade : Beer & Co assume that MOY�s future feed is 1.5g/t, while increasing this by 0.1g/t adds 13% to our valuation, while MOY has reported much better grades than 1.6g/t from drilling;
Higher throughput : Beer & Co assume 2.0Mt/yr as our base case now, while MOY�s deep drilling will aid the decision to add mill capacity to treat refractory material, of which there is already a large inventory.
from the plant, and are new areas.

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There are many more bullish views on gold now than even 3 months back, with heightened uncertainty.

MOY has shown that it is a good exposure to higher gold prices.

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Beer&Co.
ACN 158 837 186
Authorised representative Melbourne Venture Securities Pty Ltd
www.beerandco.com.au

Author:
Pieter Bruinstroop
pbruinstroop@beerandco.com.au

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The gap between price and value would not normally justify a BUY recommendation.

Beer & Co maintains a BUY recommendation due to MOY�s operational upside as well as gold price potential.

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