Millennium Minerals Limited (MOY.ASX) | Price = 9.7c | Target = 20c | MOY guides higher=3B earnings and valuation up

MOY guidance for 2016 : 80 � 85koz, at $A 1180 - $A 1200/oz

MOY�s guidance increases Beer & Co�s earnings and valuation

Drilling results show further upside potential

Beer & Co�s valuation raised and recommendation affirmed

Keywords : Australia | Delete | Gold | Oil |

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For 2015, Moy produced 91,462oz at an AISC of $A 1175/oz. This compares with original guidance, in March 2015, of 72 � 75koz at $A 1275 - $A 1325/oz.

MOY�s out-performance was a result of cost management, throughput achieved and ore grade; achieved ore grade was 1.78g/t, compared with expected / reserve grade of 1.55g/t.

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Beer & Co�s original estimated was based on MOY�s reserves. We expected that, just as in 2015, MOY would process material at higher than reserve grade.

Beer & Co�s original estimate was for 79,465oz to be produced, from an average ore grade of 1.41g/t, at an AISC of $A 1246/oz. Our resulting earnings estimate was $A 15.6m, or 2.1c/share.

Beer & Co now increases our expected average ore grade for 2016 to 1.46g/t, giving an AISC of $A 1206/oz and earnings of $19.1m or 2.6c/share.

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On 22 February, MOY announced significant width above reserve grades, near present mining activities. MOY is able to process this material into gold before it is factored into reserve estimates.

Beer & Co expects that MOY will continue to deliver results like this given the prospectivity of its tenements and $10m invested in drilling each year.

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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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MOY�s guidance raised Beer & Co�s earnings, from 2.1c/share to 2.6c/share for 2016, and risked valuation form 19c to 20c/share.

Beer & Co�s risked, base case, valuation is 20c/share assuming spot gold prices and AUD-USD rate, and oil prices in 2017 rising (to $50/bbl in 2017).

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

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