TIDMMML
RNS Number : 5104M
Medusa Mining Limited
27 August 2013
Medusa Mining Limited
Annual Report and Financial Statements
27 August 2013
Medusa Mining Limited ("Medusa" or the "Company") advises that
its annual report and financial statements for the year ended 30
June 2013 has been published. The document can be accessed through
the link at the end of this announcement and is available on the
Company's website (www.medusamining.com.au).
A copy of this report has been filed with the National Storage
Mechanism and will be available for inspection shortly at
www.hemscott.com/nsm.do.
Highlights of the Financial Year
-- Earnings before interest, tax, depreciation and amortisation
("EBITDA") of US$63.2M (US$58.0M the previous year)
-- Earnings per share ("EPS") of US$0.267 on a weighted average
basis, based on net profit after tax ("NPAT") of US$50.2M (2012:
EPS of US$0.261 based on NPAT of US$49.2M)
-- Revenues of US$100.7M compared to US$81.2M. Medusa is an
un-hedged gold producer and received an average gold price of
US$1,610 per ounce from the sale of 77,488 ounces of gold for the
year.
-- No dividends were declared nor paid during the year.
-- The Company had total cash and cash equivalent in gold on
metal account US$7.45M at year end (2012: US$51.8M).
Item 30 Jun 30 Jun Variance
2013 2012
------------- ----------- ---------- ---------
Revenues US$100.7M US$81.2M 24%
------------- ----------- ---------- ---------
EBITDA US$63.2M US$58.0M 9%
------------- ----------- ---------- ---------
NPAT US$50.2M US$49.2M 2%
------------- ----------- ---------- ---------
EPS (basic) US$0.266 US$0.261 2%
------------- ----------- ---------- ---------
Dividend Nil A$0.07 -
paid
------------- ----------- ---------- ---------
Operations
Description Unit 30 June 2013 30 June 2012
----------------- --------- -------------- --------------
Tonnes mined WMT 364,257 274,185
----------------- --------- -------------- --------------
Ore milled DMT 309,648 253,138
----------------- --------- -------------- --------------
Head grade gpt 7.02 8.10
----------------- --------- -------------- --------------
Recovery % 90% 92%
----------------- --------- -------------- --------------
Gold produced ounces 62,243 60,595
----------------- --------- -------------- --------------
Cash costs (1) US$/oz $313 $261
----------------- --------- -------------- --------------
(1) Net of development costs and includes royalties
and local business taxes but no by-product credits
------------------------------------------------------------
-- The Company produced 62,243 ounces of gold for the year,
compared to the previous year's gold production of 60,595 ounces,
at an average recovered grade of 7.02 g/t gold (2012: 8.10 g/t
gold);
-- The average cash cost for the year of US$313 per ounce, was
higher than the previous year's average cash costs of US$261 per
ounce due primarily to the treatment of lower grade development
ore, higher power costs and operating inefficiencies associated
with increasing on-going maintenance associated with the old
mill.
Production Guidance for September and December 2013 Quarters
The production guidance for the September and December 2013
quarters is approximately 17,000 ounces and 35,000 ounces
respectively. Full year guidance for 2014 will be available once
the new Co-O mill is fully commissioned and further development has
been completed on Level 8.
New Co-O Mill and Mine Expansion
In November 2010, the Board approved a major expansion of the
Co-O Mine and the construction of a new Mill with capacity to
produce 200,000 ounces of gold per year based on processing up to
750,000 tonnes per year. The approved Capital Expenditure was
estimated at approximately US$70M for the mine expansion and new
mill.
The Environmental Clearance Certificate for 2,500 tonnes per day
for the new mill has been granted.
The current status of activities is:
-- L8 Shaft (formerly Saga Shaft) operational;
-- Commissioning of New Mill nearing completion; and
-- New electrical supply systems to the mine and mill operational.
Reserves and Resources
Co-O Reserves Jun 2013 Jun 2012 Variance
----------------------- ---------- ---------- ---------
Probable reserves
* 570,000 568,000 2,000
----------------------- ---------- ---------- ---------
Co-O Resources Jun 2013 Jun 2012 Variance
----------------------- ---------- ---------- ---------
Indicated resources 820,000 715,000 105,000
----------------------- ---------- ---------- ---------
Inferred resources 1,375,000 1,304,000 71,000
----------------------- ---------- ---------- ---------
Bananghilig Resources Jun 2013 Jun 2012 Variance
----------------------- ---------- ---------- ---------
Indicated & Inferred
resources 1,136,000 1,100,000 36,000
----------------------- ---------- ---------- ---------
Saugon Resources Jun 2013 Jun 2012 Variance
----------------------- ---------- ---------- ---------
Indicated & Inferred
resources 15,700 0 15,700
----------------------- ---------- ---------- ---------
-- Gold reserves at Co-O increased marginally to 570,000 ounces (after depletion);
-- Co-O's gold resources comprised of 820,000 indicated and
1,375,000 inferred resource ounces, representing increases of
105,000 and 71,000 ounces within the indicated and inferred
categories respectively and excludes mining depletion for the
year;
-- Bananghilig's total resources increased by 36,000 ounces to 1,136,000 ounces;
-- The initial indicated and inferred resources for Saugon are 15,700 ounces.
(*) "as per JORC 2004"
Exploration
-- Contiguous tenement package maintained at >800km(2) ;
-- The Company wrote off US$6.8 million in exploration
expenditures primarily due to the relinquishment of the Anoling
gold project;
-- Budgeted exploration for fiscal year 2014 of US$15.0 million (2013 actual: US$24.0 million);
-- Exploration highlights at Co-O include:
-- the global resources pass 2.1 million ounces and are still
open at depth, to the east, north and to the west;
-- underground drilling continues to extend mineralisation;
and
-- the Conceptual Exploration Target ** for the Co-O Mine of
between 3 and 7 million ounces of gold continues to be validated
with global resources and mined ounces now totalling in excess of
2.7 million ounces;
** 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 has
converted 766,000 ounces to the Indicated category and 370,000
ounces are in the Inferred category. During the year, the Company
announced the discovery of a new zone of gold mineralisation, B2,
proximal to the current Bananghilig gold deposit. There is
potential for defining a new resource at B2 from continued
drilling;
-- At Saugon, Cube Consulting Pty Ltd completed a resource for
the Saugon deposit. A cut-off of 2 g/t was used resulting in an
Indicated Resource of 47,000 tonnes at 6.99 g/t gold containing
10,700 ounces and an Inferred Resource of 34,000 tonnes at 4.55 g/t
gold containing 5,000 ounces; and
-- Induced Polarisation, Resitivity and Ground Magnetics
geophysical programme have been completed over Saugon and Lingig
and in progress for the Co-O area.
Corporate
Dividend:
-- No dividends were declared nor paid during the year.
Funding:
-- With the current subdued gold price and the delay to the
commissioning of the new Co-O Mill caused by the situation with
Arccon, Medusa has been reviewing the efficiency of its operations
and also its costs. As a result of this review, the Company has
deemed it prudent to arrange funding facilities with two Philippine
banks.
-- The overdraft facilities available to the Group total Php600
million (approximately US$14 million) and as reported in the
announcement on Quarterly Activities dated 31 July 2013, the
Company has drawn down Php120 million (approximately US$3
million).
Managing Director's Review
Dear Shareholders,
This has been a difficult year as we strived to complete the new
mill and the L8 Shaft (formerly Saga Shaft) whilst endeavouring to
keep gold production on target. The old mill is 25 years old and
its availability during the year has contributed to reduced gold
production as breakdowns occurred more frequently and for longer
periods.
The construction of the new mill was scheduled to be completed
in July 2013, but due to the ECPM contractor, Arccon going in to
administration, the commissioning of the new mill has been
delayed.
A new contractor has been appointed and the new mill is now
being commissioned. The ramp up to full production of 2,500 tpd
will commence shortly. The power upgrade and tailings dams have
been completed, together with the upgrading/replacement of existing
infrastructure including new administration and accommodation
buildings, new surface fleet maintenance workshops, new core farm,
accommodation at the mine site and communications.
The L8 Shaft was completed in the March quarter and it is now
completely operational, hauling development ore and waste from
Level 8. Development ore along Level 8 has been hampered due to
narrow veins and faulting around the L8 Shaft, but as the
development has moved away from the shaft, the veins widths and
grades have improved. Development and stoping is still occurring on
Levels 1 to 6 and will continue for a number of years.
The Safety, Environmental and Community activities throughout
the year have been very positive, with only one lost time accident
during the year, no environmental breaches and a local community
that is very supportive of our operations.
Exploration at the Co-O Mine and at Bananghilig has continued to
be successful. The Resources at Co-O and Bananghilig has been
increased again this year and at Bananghilig exploration has
discovered a new area, called B2, proximal to the Bananghilig
resource where drilling is continuing to delineate this
deposit.
The Company is now positioned to move forward with increased
gold production and to rebuild its cash balance.
The decision to suspend dividends was unfortunately necessary
due to the cash being required for construction of the new plant as
well as for working capital. We expect that once the milling rate
has been achieved (2,500 tpd) and the cash balance has been
sufficiently built up, the Company will be in a position to
re-introduce dividend payments.
In closing, I wish to thank my fellow Directors, Perth office
staff and the dedicated Filipino team who have strived to achieve
our objectives under difficult circumstances during the year. We
also very much appreciate the continued support of the local
communities and the relevant Philippine government agencies which
enable us to expand our activities and thereby provide benefits to
an increasing number of people.
Contacts:
Australia
Medusa Mining Limited
Peter Hepburn-Brown, Managing
Director +61 8 9367 0601
United Kingdom
SP Angel Corporate Finance LLP
Financial Adviser and Broker
Ewan Leggat/Laura Littley + (0)20 3463 2260
AUDITED FINANCIAL STATEMENTS EXTRACTED FROM THE 2012 ANNUAL
REPORT
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the year ended 30 June 2013
Consolidated
2013 2012
US$000 US$000
-------- --------
Revenue 100,680 81,188
Cost of sales (33,551) (20,793)
Exploration & evaluation expenses (6,849) -
Administration expenses (8,508) (10,750)
Other expenses (1,587) (1,569)
-------- --------
Profit before income tax expense 50,185 48,076
Income tax (expense)/benefit (4) 1,108
-------- --------
Profit attributable to members
of the Group 50,181 49,184
-------- --------
Other comprehensive income, net
of income tax:
Exchange differences on translation
of foreign operations and other
comprehensive income for the year (6,381) 6,830
-------- --------
Total comprehensive income for
the year 43,800 56,014
-------- --------
Overall operations:
Basic earnings per share (US$ per
share) 0.266 0.261
-------- --------
Diluted earnings per share (US$
per share) 0.263 0.260
-------- --------
STATEMENT OF FINANCIAL POSITION
for the year ended 30 June 2013
Consolidated
2013 2012
US$000 US$000
------- -------
CURRENT ASSETS
Cash & cash equivalents 4,698 12,468
Trade & other receivables 29,617 55,964
Inventories 18,339 14,643
Other current assets 662 707
Total Current Assets 53,316 83,782
------- -------
Non-Current Assets
Trade & other receivables 2,600 -
Property, plant & equipment 101,549 63,929
Exploration, evaluation & development
expenditure 219,962 182,897
Deferred tax assets 1,603 1,632
Total Non-Current Assets 325,714 248,458
------- -------
Total Assets 379,030 332,240
------- -------
Current Liabilities
Trade & other payables 18,616 14,876
Borrowings 1,725 -
Employee benefits 1,017 920
------- -------
Total Current Liabilities 21,358 15,796
------- -------
NON-CURRENT LIABILITIES
Borrowings 528 -
Deferred tax liability 141 257
Employee benefits 753 520
------- -------
Total Non-Current Liabilities 1,422 777
------- -------
Total Liabilities 22,780 16,573
------- -------
Net Assets 356,250 315,667
------- -------
Equity
Issued capital 73,070 73,070
Reserves 18,087 23,760
Retained profits 265,093 218,837
------- -------
Total equity 356,250 315,667
------- -------
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2013
Foreign
Share Option Currency
Capital Retained and Performance Translation
Ordinary Profits rights Reserve Total
US$000 US$000 US$000 US$000 US$000
---------- ----------- ------------------ ------------- ---------
CONSOLIDATED
Balance at 30 June 2011 71,990 189,020 1,689 13,190 275,889
---------- ----------- ------------------ ------------- ---------
Comprehensive Income
Net profit after tax - 49,184 - - 49,184
Other comprehensive income - - - 6,830 6,830
---------- ----------- ------------------ ------------- ---------
Total comprehensive income
for the year - 49,184 - 6,830 56,014
---------- ----------- ------------------ ------------- ---------
Transactions with owners,
in their capacity as owners,
and other transfers
Shares issued during the period 789 - - - 789
Share options issued during
the period in accordance with
AASB 2 - share based payment - - 2,342 - 2,342
Transfer from Option Reserve
to Share Capital 291 - (291) - -
---------- ----------- ------------------ ------------- ---------
Sub-total 73,070 238,204 3,740 20,020 335,034
Dividends paid - (19,367) - - (19,367)
---------- ----------- ------------------ ------------- ---------
Balance at 30 June 2012 73,070 218,837 3,740 20,020 315,667
---------- ----------- ------------------ ------------- ---------
Comprehensive Income
Net profit after tax - 50,181 - - 50,181
Other comprehensive income - - - (6,381) (6,381)
---------- ----------- ------------------ ------------- ---------
Total comprehensive income
for the year - 50,181 - (6,381) 43,800
---------- ----------- ------------------ ------------- ---------
Transactions with owners,
in their capacity as owners,
and other transfers
Shares issued during the period - - - - -
Share options issued during
the period in accordance with
AASB 2 - share based payment - - 708 - 708
Transfer from Option Reserve - - - -
to Share Capital -
---------- ----------- ------------------ ------------- ---------
Sub-total 73,070 269,018 4,448 13,639 360,175
Dividends paid - (3,925) - - (3,925)
---------- ----------- ------------------ ------------- ---------
Balance at 30 June 2013 73,070 265,093 4,448 13,639 356,250
---------- ----------- ------------------ ------------- ---------
STATEMENT OF CASH FLOWS
for the year ended 30 June 2013
Consolidated
2013 2012
US$000 US$000
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 125,687 92,545
Payments to suppliers & employees (30,911) (30,354)
Interest received 26 370
-------- --------
Net cash provided by operating activities 94,802 62,561
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant & equipment (43,405) (26,353)
Payments for exploration & evaluation activities (10,350) (14,345)
Payment for development activities (45,682) (46,986)
-------- --------
Net cash (used in) investing activities (99,437) (87,684)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares - 1,079
Payments for dividends (3,925) (19,367)
Proceeds from bank loans 2,253 -
-------- --------
Net cash (used in) financing activities (1,672) (18,288)
-------- --------
Net (decrease) in cash and cash equivalents held (6,307) (43,411)
Cash & cash equivalents at the beginning of the
financial year 12,468 62,431
Exchange rate adjustment (1,463) (6,552)
-------- --------
Cash & cash equivalents at the end of the financial
year 4,698 12,468
-------- --------
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 Messrs Geoff
Davis and Gary Powell who are members of The Australian Institute
of Geoscientists. Mr Davis is the Non-Executive Chairman of Medusa
Mining Limited and Mr Powell is a Non-Executive Director and both
have sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and to the
activity which they are 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". Messrs Davis and Powell consent to the inclusion in the
report of the matters based on their 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 Mr Mark Zammit of Cube Consulting
Pty Ltd of Perth, Western Australia. Mr Zammit is a member of The
Australasian Institute of Geoscientists 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". 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 of Carras Mining Pty Ltd.
Dr Carras is a Fellow of the Australasian Institute of Mining &
Metallurgy and 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 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.
AVAILABILITY OF ANNUAL REPORT AND ACCOUNTS
The full annual report and financial statements for the year
ended 30 June 2013 are available on the Company's website
(www.medusamining.com.au) and can be accessed via the following
link:
http://www.rns-pdf.londonstockexchange.com/rns/5104M_1-2013-8-27.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUWCRUPWUMM
Medusa (LSE:MML)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Medusa (LSE:MML)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
