FULL YEAR RESULTS
(ASX: MML)
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: [email protected]
Internet: www.medusamining.com.au
ANNOUNCEMENT
27 August 2015
Medusa Mining Limited ("Medusa" or the "Company"), presents its financial results for the year ended 30 June 2015, with a Statutory After Tax Loss of US$218.1million (and includes asset impairment losses of US$259.6 million).
HIGHLIGHTS OF THE FINANCIAL YEAR:
Financials
Revenues of US$123.2 million compared to US$84.2 million for the previous year, an increase of 46%.
Medusa is an un-hedged gold producer and received an average gold price of US$1,220 per ounce from the sale of 97,200 ounces of gold for the year (2014: 65,943 ounces at US$1,299 per ounce);
Earnings before interest, tax, depreciation and amortisation ("EBITDA") of (US$186.8 million), and includes asset impairment losses totalling US$259.6 million (2014: EBITDA of US$48.3 million), a decrease in EBITDA of approximately 487%;
Basic earnings per share ("EPS") of (US$1.050) on a weighted average basis, based on NPAT of (US$218.1 million) (2014: EPS of US$0.154 based on NPAT of US$30.9 million), a decrease of 782%;
The Company had total cash and cash equivalent in gold on metal account of US$14.6 million at year end (2014: US$13.68 million);
Description Unit 30 June 2015 30 June 2014 Variance (%)
|
Revenues
|
US$
|
US$123.2M
|
US$84.2M
|
US$39.0M
|
46%
|
EBITDA (1)
|
US$
|
(US$186.8M)
|
US$48.3M
|
(US$235.1M)
|
(487%)
|
NPAT (1)
|
US$
|
(US$218.1M)
|
US$30.9M
|
(US$249.0M)
|
(806%)
|
EPS (basic)
|
US$
|
(US$1.050)
|
US$0.154
|
(US$1.204)
|
(782%)
|
(1) includes asset impairment losses totalling US$259.6 million
|
Depreciation of fixed assets and amortisation of capitalised mine development and mine exploration was US$31.7 million (2014: US$17.5 million);
US$11.2 million was expended on capital works associated with the new mill construction and infrastructure, mine expansion and sustaining capital at the mine and mill (2014: US$23.6 million).
Exploration expenditure, inclusive of underground diamond drilling was US$11.3 million
(2014: US$15.8 million)
Capitalised mine development costs totalled US$37.7 million for the year (2014: US$36.3 million);
Operations
Description Unit 30 June 2015 30 June 2014
|
Tonnes mined
|
WMT
|
659,495
|
521,899
|
Ore milled
|
DMT
|
582,311
|
460,004
|
Head grade
|
gpt
|
5.61
|
4.76
|
Recovery
|
%
|
93%
|
85%
|
Gold produced
|
ounces
|
98,359
|
59,904
|
Cash costs (1)
|
US$/oz
|
$385
|
$418
|
(1) Net of development costs and includes royalties and local business taxes but no by-product credits
|
The Company produced 98,359 ounces of gold for the year, compared to the previous year's gold production of 59,904 ounces, at an average recovered grade of 5.61 g/t gold (2014: 4.76 g/t gold);
The average cash cost for the year of US$385 per ounce, was marginally lower than the previous year's average cash costs of US$418 per ounce.
Production Guidance to 30 June 2016
The production guidance for the fiscal year to 30 June 2016 is expected to be between 120,000 to 130,000 ounces.
Reserves and Resources
New Resource and Reserve estimates for 2015 are currently being compiled and will be reported in accordance with JORC 2012 in the September 2015 quarter.
Exploration
Budgeted exploration, inclusive of underground diamond drilling for fiscal year 2016 of US$11 million (2015 FY actual: US$11.3 million);
Corporate
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 the role of Chief Executive Officer for an interim period following the resignation of Peter Hepburn-Brown and officially commenced his interim role on 1 September
2014.
Dividend:
No dividends were declared nor paid during the year.
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results and Mineral Resources has been directed and reviewed by Mr Gary Powell, and is based on information compiled by Philsaga Mining Corporation's Co-O mine-site technical personnel. Mr Powell is a member of The Australian Institute of Geoscientists and the Australasian Institute of Mining and Metallurgy. Mr Powell is Manager - Geology and Resources, and is a full time employee of Medusa Mining Ltd, and has sufficient experience which is relevant to the styles of mineralisation and type of deposits under consideration and to the activities for which he is undertaking to qualify as a "Competent Person" as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Powell 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 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.