TIDMMML
RNS Number : 6232B
Medusa Mining Limited
22 February 2011
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
22 February 2011
MEDUSA ACHIEVES RECORD HALF-YEAR PROFIT
(ASX & LSE: MML; TSX: MLL)
Medusa Mining Limited ("Medusa" or the "Company"), is pleased to
present its interim financial results for the six months to 31
December 2010, highlighted by a record half-yearly Net Profit After
Tax ("NPAT") of US$58.1 million, up 105%.
HIGHLIGHTS FOR THE SIX MONTHS:
Financials
Description Unit Dec 2010 Dec 2009 Variance (%)
--------------- --------- ------------- ------------ ------------ -------
Revenues * US$ $78.3 M $41.3 M $37.0 M 89%
--------------- --------- ------------- ------------ ------------ -------
EBITDA US$ $63.3 M $31.5 M $31.8 M 101%
--------------- --------- ------------- ------------ ------------ -------
NPAT US$ $58.1 M $28.3 M $29.8 M 105%
--------------- --------- ------------- ------------ ------------ -------
EPS (basic) US$ $0.310 $0.168 $0.142 84%
--------------- --------- ------------- ------------ ------------ -------
(*) 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.
------------------------------------------------------------------------------
-- Earnings before interest, tax, depreciation and amortisation
("EBITDA") of US$63.3 million, up 101% from US$31.5 million in the
prior corresponding period;
-- Earnings per share ("EPS") of US$0.310 on a weighted average
basis, based on NPAT of US$58.1 million (six months to December
2009: EPS of US$0.168 based on NPAT of US$28.3 million);
-- Revenues increased 90% to a record US$78.3 million, due to
increased gold production and a higher price received on sale of
gold. Medusa is an un-hedged gold producer and received an average
gold price of US$1,291 per ounce from the sale of 48,883 ounces of
gold for the half-year to December 2010 (corresponding period to
December 2009: 39,162 ounces at US$1,047 per ounce) as highlighted
in Graph 1 (please see link at the end of this announcement);
-- The Company remains debt free and had total cash and cash
equivalent in gold on metal account of US$87.2 million at 31
December 2010 (corresponding period to 31 December 2009: US$35.5
million).
Operations
Description Unit Dec 2010 Dec 2009 Variance (%)
------------- -------- --------- --------- --------- ----
Production ounces 51,127 39,162 11,965 30%
------------- -------- --------- --------- --------- ----
Cash costs US$/oz $186 $189 $3 1%
------------- -------- --------- --------- --------- ----
Gold price
received US$/oz $1,291 $1,047 $244 23%
------------- -------- --------- --------- --------- ----
-- The Company produced a record 51,127 ounces of gold for the
half-year, an increase of 11,965 ounces or 30% from the previous
corresponding period, at an average recovered grade of 14.28 g/t
gold (six months to December 2009: 16.65 g/t gold) as highlighted
in Graph 2 (please see link at the end of this announcement);
-- Average cash cost for the half-year of US$186 per ounce, was
marginally lower than the previous corresponding period's costs of
US$189 per ounce;
Production Outlook
The revised forecast gold production for the fiscal year to 30
June 2011 after taking into account current production of 51,127 is
now 102,000 ounces at anticipated cash costs of US$190 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 as highlighted
in Graph 3 (please see link at the end of this announcement).
New Co-O Plant
The Board on 17 November 2010, approved construction of a new
Co-O plant with capacity to produce 200,000 ounces per year.
Capital requirements of the new plant (inclusive of mine
development) are estimated at US$80 million and will be funded out
of cashflow.
The preliminary construction schedule after regulatory
permitting is estimated to be 21 months.
2011 2012 2013
----------------------------- ---------------------- ------------------------
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
---- ---- ---- ----------- --- --- --- ------- ---- --- --- --------
Permitting, Construction commences Production commences
engineering and
construction
contracts
---------------------- ----------------------------- ------------------------
Dividends
The Board has approved an interim un-franked dividend payment of
A$0.05 per share payable to shareholders on 23 March 2011.
The relevant dates for the interim dividend are as follows:
Dividend Record Date : 11 March
2011
Ex-Dividend Date (ASX purposes) : 07 March
2011
Ex-Dividend Date (LSE purposes) : 09 March
2011
Ex-Dividend Date (TSX purposes) : 10 March
2011
Dividend Payment Date : 23 March
2011
There is no foreign conduit income attributed to the
dividend.
Geoffrey Davis, Managing Director of Medusa, commented:
"I am pleased to report that operations have continued smoothly
for the half year to 31 December with the Company achieving record
production at the low average cash cost of US$186 per ounce. This
record production and elevated gold prices have contributed to a
record half-yearly net profit after tax of US$58.1 million.
Exploration is continuing around the Co-O Mine to increase the
likelihood of new vein discoveries to provide additional
production. Mine development is continuing with the sinking of the
3-compartment Saga Shaft underway, and the commencement of a new
adit to access the Royal Veins and the newly discovered North
Tinago vein systems.
The approval by the Board to construct a new Co-O mill with
capacity to produce 200,000 ounces of gold is an integral part of
the Company's growth strategy. The Company is advancing the
permitting process, and is currently engaged in discussions with
engineering design and construction groups.
We are also pleased to report that the payment of a dividend
twice a year will be an on-going policy to return benefits to our
shareholders."
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
United Kingdom
Fairfax I.S. PLC +44 (0)20 7598 5368
Financial Adviser and Broker
Ewan Leggat/Laura Littley
Lothbury Financial Services
Limited +44 (0)20 7868 2010
Michael Padley/Libby Moss
Canada
Nicholas Sayce, Investor Relations +1 416 822 4404
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 2010 is available for
viewing on our website www.medusamining.com.au
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/6232B_-2011-2-22.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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