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Medusa Mining Limited - Full Year Results 2014

September 2, 2014

ENP Newswire - 02 September 2014

Release date- 29082014 - Medusa Mining Limited presents its financial results for the year ended 30 June 2014, with a Net Profit After Tax of US$30.9 million.



Revenues of US$84.2 million compared to US$100.7 million for the previous year, a decrease of 16%.

Medusa is an un-hedged gold producer and received an average gold price of US$1,299 per ounce from the sale of 65,943 ounces of gold for the year (2013: 77,488 ounces at US$1,610 per ounce);

Earnings before interest, tax, depreciation and amortisation ('EBITDA') of US$48.3 million (US$63.2 million in the previous year), a decrease of approximately 24%;

Basic earnings per share ('EPS') of US$0.154 on a weighted average basis, based on NPAT of US$30.9 million (2013: EPS of US$0.266 based on NPAT of US$50.2 million), a decrease of 42%;

The Company had total cash and cash equivalent in gold on metal account of US$13.68 million at year end (2013: US$7.45 million);

No dividends were declared nor paid during the year (2013: Nil)

Depreciation of fixed assets and amortisation of capitalised mine development and mine exploration was US$17.5 million (2013: US$13.1 million);

US$23.6 million was expended on capital works associated with the new mill construction and infrastructure, mine expansion and sustaining capital at the mine and mill (2013: Us$44.2 million).

Capitalised mine development costs totalled US$36.3 million for the year (2013: US$34.5 million);


The Company produced 59,904 ounces of gold for the year, compared to the previous year's gold production of 62,243 ounces, at an average recovered grade of 4.76 g/t gold (2013: 7.02 g/t gold);

The average cash cost for the year of US$418 per ounce, was higher than the previous year's average cash costs of US$313 per ounce due primarily to excess mine manning levels, low mine productivity, treatment of significant amounts of development ore and lower than budgeted mill recoveries.

Production Guidance to 31 December 2014

The production guidance for the six months to 31 December 2014 is expected to be between 40,000 to 45,000 ounces.

Reserves and Resources

New Resource and Reserve estimates for 2014 are incomplete and will be reported in accordance with JORC 2012 when finalised.


Contiguous tenement package maintained at >800km2;

Budgeted exploration for fiscal year 2015 of US$15 million (2014 FY actual: US$15.8 million);

Exploration highlights at Co-O include:

revised the vein classifications and interpretations and

underground drilling continues to confirm and extend mineralization across strike and at depth.

An Induced Polarisation, Resistivity and Ground Magnetics geophysical programme was commenced over the Co-O Mine environs and which should be completed in the coming months;

At the B2 Prospect adjacent to the Bananghilig Deposit, drilling has continued to assess the extent of the mineralization and

Regional exploration has continued over the Company's granted tenements.



In the September 2013 quarter, the Company raised gross proceeds of A$34,002,702 via the placement of 18,890,390 ordinary shares at A$1.80 each to clients of Euroz Securities Limited.

Board Changes

Mr. Geoffrey Davis (Founding Managing Director of Medusa) retired as Non-Executive Chairman on 22 November 2013 and was succeeded by Non-Executive Director, Mr. Andrew Teo.

LSE delisting

On 04 April 2014, application was made to the UK Listing Authority for the Securities to be removed from the Official List, and to the London Stock Exchange ('LSE') for the Securities to be removed from trading.

The last day of dealings in the Securities on the LSE was on 22 May 2014. The cancellation of the listing and of trading in the Securities on the LSE took effect on 23 May 2014.


No dividends were declared nor paid during the year.

Events Subsquent to Year End

Resignation of Managing Director

On 19 August 2014, Mr. Peter Hepburn-Brown tendered his resignation as Managing Director and as a Board member of Medusa.

Appointment of Interim Chief Executive Officer

Mr. Geoffrey Davis agreed to assume the role of Chief Executive Officer for an interim period following the resignation of Peter Hepburn-Brown as Managing Director, and will officially commence his role on 1 September 2014.


This report contains 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.


Tel: +618 9367 0601

Fax: +618 9367 0602

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Source: ENP Newswire

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