TIDMMML
RNS Number : 7657X
Medusa Mining Limited
21 February 2012
21 February 2012
MEDUSA MINING LIMITED
HIGHLIGHTS OF HALF-YEAR FINANCIAL REPORT
Medusa Mining Limited ("Medusa" or the "Company"), presents its
interim financial results for the six months to 31 December 2011,
with a Net Profit After Tax of US$24.0 million.
HIGHLIGHTS FOR THE SIX MONTHS TO 31 December 2011:
Financials
- Revenues of US$40.9 million compared to US$78.3 million for
the corresponding period in the previous year, due to decreased
gold production as a result of planned mine expansion and
development, partially offset by a higher average price received on
sale of gold. Medusa is an un-hedged gold producer and received an
average gold price of US$1,655 per ounce from the sale of 25,446
ounces of gold for the half-year to December 2011 (corresponding
period to December 2010: 48,883 ounces at US$1,291 per ounce);
- Earnings before interest, tax, depreciation and amortisation
("EBITDA") of US$28.4 million, (US$63.3 million in the prior
corresponding period);
- Earnings per share ("EPS") of US$0.127 on a weighted average
basis is based on NPAT of US$24.0 million (six months to December
2010: EPS of US$0.310 based on NPAT of US$58.1 million);
- The Company remains debt free and had total cash, cash
equivalent in gold on metal account and bullion on hand of US$80.2
million at 31 December 2011 (corresponding period to 31 December
2010: US$87.2 million).
Description Unit Dec 2011 Dec 2010 Variance (%)
($37.4
Revenues US$ $40.9 M $78.3 M* M) (48%)
($34.9
EBITDA US$ $28.4 M $63.3 M M) (55%)
($34.1
NPAT US$ $24.0 M $58.1 M M) (59%)
EPS (basic) US$ $0.127 $0.310 ($0.183) (59%)
(*) Includes the sale of bullion that relate to prior year's
production (previously re-classified from revenue to inventory at
30 June 2010 to comply with Australian Accounting Standards). Refer
2010 Annual Report.
Dividends
The Board has approved an interim un-franked dividend payment of
A$0.05 per share payable to shareholders on 23 March 2012.
The relevant dates for the interim dividend are as follows:
Dividend Record Date : 09 March
2012
Ex-Dividend Date (on ASX) : 05 March
2012
Ex-Dividend Date (on LSE) : 07 March
2012
Dividend Payment Date : 23 March
2012
There is no foreign conduit income attributed to the
dividend.
Operations
- The Company produced 26,780 ounces of gold for the half-year,
compared to 24,347 ounces from the previous corresponding period,
at an average recovered grade of 8.10 g/t gold (six months to
December 2010: 14.28 g/t gold);
- Average cash cost for the half-year of US$261 per ounce, was
higher than the previous corresponding period's costs of US$186 per
ounce;
Description Unit Dec 2011 Dec 2010 Variance (%)
Production ounces 26,780 51,127 (24,347) (48%)
Cash costs US$/oz $261 $186 ($75) (40%)
Gold price
received US$/oz $1,655 $1,291 $364 28%
Production Outlook
The revised forecast gold production for the fiscal year to 30
June 2012 after taking into account current production of 25,780 is
now 75,000 ounces at anticipated cash costs of US$230 per
ounce.
A breakdown of actual and budgeted production ounces and cost
per ounce by quarters for the last six quarters and the remaining
two quarters of this fiscal year is highlighted in Graph 1 (please
see link at the end of this announcement).
Please see link at the end of this announcement for Preliminary
Development Timetable.
Peter Hepburn-Brown, Managing Director of Medusa, commented:
This financial year is a year of transition at the Co-O Mine
while expansions to the haulage capacity from underground are
completed, and accelerated development is prioritised.
New, large scale haulage in the form of the Saga Shaft commenced
in January 2011. Progress has been good, and we anticipate the
shaft will be fully operational from 350 metres below surface in
the last quarter of calendar year 2012. This will allow us to
develop more levels ahead of increased production and to stockpile
ore ahead of the new mill commencing operation in mid calendar year
2013.
Continuing exploration success to the east of the Agsao Shaft
has driven us to begin preparations for another deep shaft in this
area, initially to approximately 750 metres, but possibly to a
final depth of approximately 1,000 metres. Geotechnical drilling to
test the ground conditions in this area are in progress.
At the mill we have commenced construction and we anticipate
that all long lead time items will be delivered on schedule.
Initially we are focussing on upgrading the wet circuit being the
leach tanks, elution circuit and the thickener, and installing a
de-toxification unit to ensure our tailings are benign when
discharged to the tailings dam.
The construction of a number of buildings is also in progress.
It is always difficult to expand an operation and produce at the
same time. However with the team we have on site assisted by our
consultants, we are confident we will achieve our timelines for the
Co-O expansion, barring interference from the weather.
At the Bananghilig Deposit, drilling is continuing with emphasis
on converting the historic 650,000 Inferred resource ounces and
additional inferred resource ounces to the Indicated category. The
aim is to achieve an initial reserve of approximately 1 million
ounces for a 200,000 ounce per year operation.
Our growth plans remain intact and are progressing steadily
forward. This year promises to be an exciting year as we move the
Co-O Mine construction forward to completion, and we look forward
to providing updates as milestones are reached.
DISCLAIMER
This announcement may contain certain forward-looking
statements. The words 'anticipate', 'believe', 'expect', 'project',
'forecast', 'estimate', 'likely', 'intend', 'should', 'could',
'may', 'target', 'plan' and other similar expressions are intended
to identify forward-looking statements. Indications of, and
guidance on, future earnings and financial position and performance
are also forward-looking statements.
Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and
other factors, many of which are beyond the control of Medusa, and
its officers, employees, agents and associates, that may cause
actual results to differ materially from those expressed or implied
in such statements.
Actual results, performance or outcomes may differ materially
from any projections and forward-looking statements and the
assumptions on which those assumptions are based.
You should not place undue reliance on forward-looking
statements and neither Medusa nor any of its directors, employees,
servants or agents assume any obligation to update such
information.
The complete Half Year Report for December 2011 is available for
viewing on our website www.medusamining.com.au.
To view Graph 1 and Preliminary Development Timetable, please
click on or paste the following link in your browser:
http://www.rns-pdf.londonstockexchange.com/rns/7657X_-2012-2-20.pdf
Contacts:
Australia
Medusa Mining Limited
Geoffrey Davis, Chairman
Peter Hepburn-Brown, Managing Director +61 8 9367 0601
United Kingdom
Fairfax I.S. PLC
Financial Adviser and Broker
Ewan Leggat/Laura Littley +44 (0)20 7598 5368
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEMFWSFESEEE
Medusa (LSE:MML)
Historical Stock Chart
From Jun 2024 to Jul 2024
Medusa (LSE:MML)
Historical Stock Chart
From Jul 2023 to Jul 2024
