TORONTO, ONTARIO--(Marketwire - Aug. 29, 2011) -
Medusa Mining Limited (
News -
Market indicators)(LSE:MML) ("Medusa" or the "Company"), is pleased to present its full year financial results for the year ended 30 June 2011, highlighted by a record Net Profit After Tax ("NPAT") of US$110.4 million, an increase of US$44.6 million or 68%.
HIGHLIGHTS OF THE FINANCIAL YEAR:
Financials
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Description Unit 30 June 2011 30 June 2010 Variance (%)
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Revenues US$ US$149.6M US$94.6M US$55.0M 58%
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EBITDA US$ US$120.7M US$73.7M US$47.0M 64%
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NPAT US$ US$110.4M US$65.8M US$44.6M 68%
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EPS (basic) US$ US$0.587 US$0.378 US$0.209 55%
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Cash & bullion US$ US$102.1M US$55.8M US$46.3M 83%
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Dividend paid A$ A$0.10 - - -
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-- Earnings before interest, tax, depreciation and amortisation ("EBITDA")
of US$120.7 million, up 64% from US$73.7 million in the previous year;
-- Basic earnings per share ("EPS") of US$0.587 on a weighted average
basis, based on NPAT of US$110.4 million (2010: EPS of US$0.378 based on
NPAT of US$65.8 million);
-- Revenues increased 58% to a record US$149.6 million, due to increased
gold production and a higher average price received on sale of gold.
Medusa is an un-hedged gold producer and received an average gold price
of US$1,371 per ounce from the sale of 96,217 ounces of gold for the
year (2010:64,020 ounces at US$1,100 per ounce);
-- The Company remains debt free and had total cash and cash equivalent in
gold on metal account of US$102.1 million at year end (2010: US$55.8
million);
-- Medusa paid un-franked dividends (in two equal instalments) totalling
A$0.10 per share during the year.
To view the Revenues graph, please visit the following link:
http://media3.marketwire.com/docs/723515REVENUE.jpg
Operations
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Description Unit 30 June 2011 30 June 2010
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Tonnes mined WMT 262,610 198,693
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Ore milled DMT 266,613 179,609
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Recovered grade gpt 12.63 16.52
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Recovery % 94% 94%
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Gold produced ounces 101,474 89,679
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Cash costs (1) US$/oz $189 $184
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(1) Net of development costs and includes royalties and local business taxes
but no by-product credits
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-- The Company produced a record 101,474 ounces of gold for the year, an
increase of 11,795 ounces or 13% from the previous year's production of
89,679 ounces, at an average recovered grade of 12.63 g/t gold (2010:
16.52 g/t gold);
-- The average cash cost for the year of US$189 per ounce, was marginally
higher than the previous year's average cash costs of US$184 per ounce.
Production Guidance FY2012
To view the Production graph, please visit the following link:
http://media3.marketwire.com/docs/723515PRODUCTION.jpgThe production guidance for the forthcoming year is between 100,000 to 110,000 ounces at cash costs of around US$200 per ounce. There is currently a heavy emphasis on mine development to prepare the Co-O Mine for future production increase.
Reserves and Resources
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Co-O Reserves Jun 2011 Jun 2010 Variance
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Probable reserves 502,000 505,000 (3,000)
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Co-O Resources Jun 2011 Jun 2010 Variance
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Indicated resources 616,000 603,000 13,000
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Inferred resources 1,344,000 898,000 446,000
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Bananghilig Resources Jun 2011 Jun 2010 Variance
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Inferred resources 650,000 650,000 -
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-- Gold reserves at Co-O maintained at the 500,000 ounces level;
-- Co-O's gold resources at year end comprised of 616,000 indicated and
1,344,000 inferred resource ounces, representing increases of 13,000 and
446,000 ounces within the indicated and inferred categories
respectively.
To view the Resources graph, please visit the following link:
http://media3.marketwire.com/docs/723515RESOURCES.jpgExploration
-- Contiguous tenement package maintained at greater than 800km2;
-- Budgeted exploration for 2012 fiscal year of US$27.0 million (2011
actual: US$26.7 million);
-- Exploration highlights at Co-O include:
-- discovery of new veins and extensions to known veins to the north
and east;
-- extension along strike to approximately 1,600 metres;
-- extension across strike to approximately 750 metres;
-- demonstrating that mineralisation extends to at least 750 metres
below the mine's adit entrance; and
-- estimation of a Conceptual Exploration Target (ii) for the Co-O Mine
of between 3 and 7 million ounces of gold.
(ii) The potential target size and grade of the Co-O Mine is conceptual in
nature and there has been insufficient exploration to define a mineral
resource. It is also uncertain if further exploration will result in the
target being defined as a mineral resource.
-- At the Bananghilig disseminated gold deposit, drilling commenced in July
2010 to validate and extend resources and establish reserves as a basis
for a feasibility study;
-- At Saugon, re-drilling of the First Hit Vein has produced encouraging
results; and
-- A large geophysical Induced Polarisation and ground magnetics programme
is ongoing over the Tambis intrusive-breccia complex, Kamarangan, Usa,
Saugon and Lingig.
To view the Exploration graph, please visit the following link:
http://media3.marketwire.com/docs/723515EXPLORATION.jpgNew Co-O Mill
The Board on 17 November 2010 approved the construction of a new Co-O mill with capacity to produce 200,000 ounces per year.
Subsequently, after evaluation of three sites, the preferred option is the complete remodelling of the current mill site. The initial Capex was estimated at US$80 million, inclusive of mine development and the Saga Shaft, which has now been reduced to approximately US$70 million.
Permitting requires the upgrading of the current Environmental Clearance Certificate which is anticipated to be completed by late September 2011.
The SAG mill has been ordered and the winder for the Saga Shaft has been secured.
Replacement and transferral of buildings and facilities in and around the current mill commenced in July 2011 to make room for the expansion.
The preliminary construction schedule after regulatory permitting is estimated to be 21 months.
Preliminary Development Timetable
To view the Preliminary Development Timetable, please visit the following link:
http://media3.marketwire.com/docs/723515PDT.jpgDividends
The Company declared a final un-franked dividend payment of A$0.05 per share payable to shareholders on 30 September 2011.
The relevant dates for the interim dividend are as follows:
Dividend Record Date : 16 September 2011
Ex-Dividend Date (ASX purposes) : 12 September 2011
Ex-Dividend Date (LSE purposes) : 14 September 2011
Dividend Payment Date : 30 September 2011
There is no foreign conduit income attributed to the dividend.
Peter Hepburn-Brown, Managing Director of Medusa, commented:
"I am pleased to report that the Company has again achieved a new record with respect to the production of 101,474 ounces which generated revenues of US$149.6 million, primarily on the back of escalating gold prices. Our current financial position allows the Company to self-fund the Co-O mill expansion and mine development, now estimated at US$70 million, and we are starting to accumulate the cash required to self-fund the Bananghilig Project, as it matures from the work currently being done.
We anticipate receiving approval shortly from the Bureau of Mines to enable us to proceed with the expansion of the Co-O mill capacity, to treat approximately 750,000 tonnes of ore per annum. This is a major transformation for the Company which will provide new modern treatment facilities to cater for the long life operations expected from the Co-O Mine and potentially other satellite mines such as Anoling.
I wish to thank our on-site personnel who have again made a great contribution to the on-going growth and success of the operations through their dedication and hard work. The future as we continue to grow the Company will be challenging, however I am confident our team is equal to the tasks that lie ahead."
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Mr Geoff Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Managing Director of Medusa Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Davis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has been estimated and compiled by Mark Zammit of Cube Consulting Pty Ltd of Perth, Western Australia. Mr Zammit is a member of The Australasian Institute of Mining & Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Zammit consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Carras Mining Pty Ltd
Information in this report relating to Ore Reserves is based on information compiled by Dr Spero Carras, FAusIMM of Carras Mining Pty Ltd. Dr Carras has 30 years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr Carras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
DISCLAIMER
This announcement 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.
The complete 2011 Annual Report is available for viewing on our website
www.medusamining.com.auABN: 60 099 377 849
Australia
Medusa Mining Limited
Geoffrey Davis
Chairman
+61 8 9367 0601
or
Medusa Mining Limited
Peter Hepburn-Brown
Managing Director
+61 8 9367 0601
admin@medusamining.com.au
www.medusamining.com.au
or
United Kingdom
Fairfax I.S. PLC
Financial Adviser/Broker
Ewan Leggat/Laura Littley
+44 (0)20 7598 5368 
