Millennium Minerals Limited (MOY.ASX) | Price = 4.5c | Target = 14.5c | MOY at top of guidance=3B over 90koz at $A 1175=2Foz

MOY at top of upwardly revised guidance

MOY pulled back on its potential !

Beer & Co�s model projects 80koz at $A 1267/oz for 2016

But we think MOY will do better than our model

Beer & Co valuation and conclusions confirmed

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In March 2015, MOY�s guidance for 2015 was production of 72koz � 75koz at an All-In Sustainable Cost of $A 1275 - $A1325/oz.

On 12 August, 2015, MOY increased its guidance to 80koz � 83koz at an AISC of $A 1200 - $1250/oz. On 13 October, MOY again increased guidance to 88koz � 93koz at $1190 - $1240/oz.

On 18 January, MOY reported that its actual production for 2015 was at the top of the guidance range with costs below the guided range, at $1175/oz.

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Beer & Co�s view is that MOY processed lower grade material in Q4 as our �back-calculation� suggests the average grade processed in the December quarter was around 1.58g/t, the lowest for the year.

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Beer & Co�s model is based on MOY�s reported Reserves, which grade about 1.4g/t, even though MOY has consistently processed higher grades.

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In our 21 December note (click here), Beer & Co highlighted MOY�s drilling success, with significant intercepts grading higher than our modelled grade.

Beer & Co expects that MOY�s 2016 results will be better than we have assumed in our modelling.

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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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Beer & Co�s risked, base case, valuation of MOY is 14.5c/share is based on MOY spending $10m a year to delineate 2.0Mt of ore at 1.5g/t. Results to date suggest a much lower spend for the volume of ore, and grades at or better than 1.5g/t.

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

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