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Millennium Minerals' $6m Underwritten Rights Issue In-The-Money

Millennium Minerals' (ASX: MOY) share price continues to be well-supported as the company increases gold production while cutting costs at the Nullagine gold project in the Pilbara Region of Western Australia.

The 2 for 21 non-renounceable rights issue announced by Millennium is currently 'in-the-money' by 15.6%, which will raise $6 million as it is fully-underwritten, priced at $0.32 each.

With MOY last trading at $0.37, each shareholder taking up the rights will be receiving new shares at a significant discount - based on the last traded prices.

MOY is also benefiting from a resurgent gold price with spot currently trading at US$1398 an ounce, and based on the exchange rate of AUD / USD 0.90253 - this equates to A$1550 an ounce.

Highlighting the margin for MOY's production, for the six-months ending June 2013, the sustaining cash cost for the period was A$955 per ounce, which includes C1 costs, royalties, site capital and corporate expenses.

The helped the company to declare a maiden half-year profit of $34.2 million for the six months.

The headline after tax profit figure includes an unrealised derivative gain of $21.2 million related to the company's hedge book. It follows that the underlying profit for the period before treasury and tax was $12.9 million. At the mine operating level the gross profit for the period was $16.3 million derived from sales of $54.0 million and cost of sales of $37.7 million.

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