Chairman`s Address to Shareholders
17 November 2010 - 6:01PM
UK Regulatory
TIDMMML
MEDUSA MINING LIMITED
ABN: 60 099 377 849
Unit 7, 11 Preston Street
Como WA 6152
PO Box 860
Canning Bridge WA 6153
Telephone: +618-9367 0601
Facsimile: +618-9367 0602
Email: admin@medusamining.com.au
Internet: www.medusamining.com.au
ANNOUNCEMENT
17 November 2010
CHAIRMAN'S ADDRESS AT AGM
Please find attached the Chairman's address which will be delivered today at the
Company's Annual General Meeting, to be held in the Goldsworthy Room, The
Sheraton Hotel, 207 Adelaide Terrace, Perth, Western Australia at 11.00 am
For further information please contact:
Roy Daniel
Finance Director
Phone: +618 9367 0601
Website:www.medusamining.com.au
CHAIRMAN'S ADDRESS
Dear Shareholders,
This is my first AGM as Chairman of Medusa and I would like to take this
opportunity to introduce myself.
My background is as a mining engineer by qualification and I have learned my
trade in the Canadian mining industry for more than 40 years, mostly in
underground mines, mining commodities such as potash, coal, gold, zinc and
copper. In more recent years I have managed major mining projects, been CEO of
HudBay Minerals Inc., as well as Chairman of the Mining Association of Canada.
Since joining Medusa in July this year, my expectations have been more than
confirmed as the Company has achieved substantial and stable production and
established itself as a gold producer with cash costs among the lowest in the
world. Your Board of Directors together with Management plans to continue this
strong organic growth and cost performance profile, and has set an achievable
corporate objective of producing between 300,000 and 400,000 ounces of gold
within 5 years.
Our Managing Director, Geoff Davis, who has a profound knowledge of Philippine
geology, advises that our well established Co-O Mine and 820 square kilometre of
land position which comprises a structurally well-defined but relatively
unexplored mineral field, has the geological potential to achieve our corporate
objective. This region of the Philippines is well endowed with minerals and the
demonstrated potential at the Co-O Mine, several advanced exploration targets,
as well as the potential to discover new deposits, all give us confidence that
Medusa's 5 year organic growth objective is well underpinned.
Within and around the Co-O Mine, together with areas identified as advanced
exploration targets, we will this year continue our US$21 million annual
exploration programme. This programme is expected to extend the potential for
mineral resources at the Co-O Mine, improve our confidence of other mineral
resources and identify new deposits.
At site our workforce now exceeds 1,900 people with a wide range of skill sets
that also benefit local businesses. We are proud to operate with minimal
expatriates, attesting to the abundance of skilled personnel in the Philippines
and the willingness of employees to develop new skills in the fields of mining
and exploration. We support the provincial government and local municipalities
through payment of local taxes, employment, and community programmes.
Well before financial year-end, our Co-O Mine and Mill were consistently
operating at a rate equivalent to 100,000 ounces of gold per year. The Company
produced 89,679 ounces of gold in the last financial year and as one of the
lowest cash cost producers in the world generated a net profit after tax of
US$65.8 million. The Company is in a strong positive cash position and expects
to self-fund all cash requirements for the next financial year.
We look forward to the immediate year ahead and plan to continue to make
improvements with the aim of increasing gold production from the Co-O Mine by
having available the full 1,000 tonne per day ore processing capacity of the Co-
O Mill. In the 2011-2012 financial year, we also expect to have the new Saga
vertical shaft which will access new mining areas.
In addition, as announced earlier this morning, I am pleased to tell you the
Company is planning to further increase production capacity by building a new
mill capable of producing 200,000 ounces per year and by continuing to expand
the mine.
My observations from a recent site visit are that we have a very dedicated
workforce who work well together, with common goals which include safety,
achieving production targets and controlling costs. It is also clear that our
mining and exploration activities fit well with the local communities near our
work sites.
During this last financial year Medusa has also grown corporately. In addition
to the listings on the ASX and TSX, the Company has delisted from AIM and is now
listed on the LSE. Recently, Medusa also announced and paid a maiden dividend,
recognising the substantial support of the Company's shareholders, and aims to
pay a regular dividend annually.
Medusa today, I believe is in an enviable position with its high grade Co-O
Mine, recent near mine exploration success to further fuel growth, together with
the potential of regional exploration success to achieve our 5 year self-funded
organic production target.
In closing on behalf of the Board of Directors, I would like to particularly
thank Geoff Davis our MD, and his team for extraordinary leadership in guiding
Medusa through challenging times to become a demonstrable low cost producer and
also our Philippine workforce who make safe production and exploration an
everyday reality. To our shareholders, thank you for the solid support over the
last many years and I hope that the demonstrated performance to date and the
growth opportunities within reach will convince you to continue that strong
support.
Thank You
Peter R Jones
Chairman
[HUG#1463182]
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Source: Medusa Mining Ltd via Thomson Reuters ONE
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