Medusa Share Discussion Threads

[atlantic57] 09/9/2018 12:38

jim rogers gold thoughts

[roguetreader] 04/9/2018 10:39

EDIT:
I think was barking up the wrong tree - removed post.

[roguetreader] 03/9/2018 10:21

Cheers, TF, thanks for the interesting pointers. I have not taken more than a cursory glance at the report to date as have been busy elsewhere. I assume the 58% increase in AT's pay packet relates to the take-on of the additional CEO responsibilities, it would be nice to see that earned through some transparent report to shareholders over the coming months (live in hope :))

Although I suspect few PI's wanted to see PHB back at Medusa, it is always sad to hear such shocking news.

RT

[tightfist] 03/9/2018 10:00

Sad news about anyone's passing-away, my thoughts are with Peter's family.

I havn't yet had time to get my head around the 2018 figures, and especially the restatements detailed on page 31 required by the move to voluntary immediate writing-off of Exploration costs rather than capitalising them. It's interesting to note that the auditors (BDO) are still not happy with some items, see pp 62-64.

The Impairment Key Assumptions (page 42) are based on 50k - 100kOz; I hope the BoD have a closer estimate than that even if they are not yet prepared to share it with the business' owners (aka shareholders).

However, I note on page 8 that AT's remuneration rose by 58%; I havn't yet found a supporting statement. IIRC he only adopted the Interim CEO role in June of this year.


Cheers, tightfist
PS: Did we not share some kitchen-sinking thoughts exactly 12 months ago?!

[deka1] 03/9/2018 07:09

PASSING OF NON-EXECUTIVE DIRECTOR (ASX: MML)


It is with deep sadness that Medusa Mining Limited (Medusa or the Company) (ASX: MML) advises that Non-Executive Director, Mr Peter Hepburn-Brown has passed away following ill health. Peter was recently reappointed to the Board of Medusa and had previously served as Managing Director of the Company between June 2011 and August 2014. The Board and staff would like to offer sincere condolences to Peter’s family.

[atlantic57] 01/9/2018 07:53

Paul you should check out the Shanta Gold Thread This could be renamed the Augustus
Loop thread.

[deka1] 31/8/2018 18:51

So guys help an old guy out here,is this clever accounting good or bad ?
do you like the play or not.

[galeforce1] 31/8/2018 12:48

Roguetrader - thanks for that. This confirms my view that that the impairments for 2017-18 have been artfully maximised with a view to reporting much better numbers in 2018-19. The balance sheet is now looking a lot more sensible. The Book Value is £64m. The market cap is now £41m, & the enterprise value is around £30m.

Looking at a model for 2018/19, a profit of $20m to $25m definitely looks achievable, assuming the gold price holds above $1200 and production holds around 95k ounces. But these are big assumptions.

One surprising thing is the big jump in Admin Expenses ($15m from $8m). Any ideas what has caused that? I'm assuming this figure will drop to a more normal level in 2018-19.

[polaris] 31/8/2018 10:32

atlantic57 - that would be Augustusgloop. Search the thread for the posts and the discussion. I find them highly enlightening now and that i/we were all a bit too star struck with MML at the time to see the cracks.

[roguetreader] 31/8/2018 10:24

Hi All

an interesting take on the recent report on Hotcopper (in full as below - thanks 'Miningnut')

" They were looking to create the maximum amount of impairments this year, so to do it they would have been using the ASIC from this year(17/18) that has all the cost of the E15 and other mine asset purchases($14.75mil) together with the development costs($27.4mil) and then they added three years on to the mine life (2022-24) where the operating/development costs from working on L16 would be higher.
The production capacity they're using of 50k to 100k also relates to this year(17/18) and previous years and is not forward looking - it even says in 1st para on pg43 that the 'Estimated production is assumed consistent with the capacity constraint of the Co-O mill taken into account while assuming a constant recovery rate.'
So they were able to create impairments of $81mil and knocked down the value of Property, plant & equipment from $41.75mil in 2017 to $12.96mil in 2018 - most of which relates to a knocked down value of the E15 shaft of $11.45mil.
They have also knocked down the value of Development expenditure from $66.44mil in 2017 to $29.88mil in 2018 that equates to the amount spent in the last 12 months.
If ever they finish the E15 shaft and increase production, then they will have little capital cost to depreciate & amortise against the income thereby being able to report larger profits from which they can then pay themselves even larger bonuses. "

[atlantic57] 30/8/2018 21:15

Paul who was that certain poster !

This has the same feel as vatakula where I lost a ton of money believing that Management were just about to turn the corner,

[rhuvaal2] 30/8/2018 20:10

Also, see that hedge funds own 11.6% of MML...

[roguetreader] 30/8/2018 15:45

G1, the 'guidance' is not guidance per se, it has been interpreted by me and possibly others as such as it is stated in the table in section 12 ii as part of the Impairment Assumptions. It would have been nice to have explicit guidance, but then it would also have been 'nice' to know what is going on with E15. Unfortunately Mr Teo didn't think it worthwhile the shareholders being updated on such mundane matters.

[deka1] 30/8/2018 13:12

MEDUSA MINING LIMITED ABN: 60 099 377 849 Unit 10, 100 Mill Point Road South Perth WA 6151 PO Box 122 South Perth WA 6951 Telephone: [phone] Facsimile: 618-9474 1342 Email: [e-mail] Internet: www.medusamining.com.au
ANNOUNCEMENT 29 August 2018
2017/18 FINANCIAL RESULTS (ASX: MML) Medusa Mining Limited (“Medusa”; or the “Company”;), presents its audited financial results for the year ended 30 June 2018, with a statutory after-tax loss of (US$55.6 million) which includes non-cash asset impairment losses of US$81.1M. Financials (audited)  Revenues of US$124.6 million compared to US$100.1 million for the previous year, an increase of 24%. Medusa is an un-hedged gold producer and received an average gold price of US$1,293 per ounce from the sale of 96,056 ounces of gold for the year (2017: 79,194 ounces at US$1,256 per ounce);  Earnings before interest, tax, depreciation and amortisation (“EBITDA”;) of (US$25.3 million) which includes asset impairment losses of US$81.1 million (2017: EBITDA of (US$29.8M) which includes asset impairment losses of (US$70.8M));  Basic earnings per share (“EPS”) of (US$0.267) on a weighted average basis, based on NPAT of (US$55.6 million) (2017: EPS of (US$0.273) based on NPAT of (US$56.7M));  The Company increased cash and cash equivalent in gold on metal account to US$15.1 million at 30 June 2018 (2017: US$11.5M); Description Unit 30 June 2018 (1) 30 June 2017 (2) Variance (%) Revenues US$ US$124.6M US$100.1M US$24.5M 24% EBITDA (1) US$ (US$25.3M) (US$29.8M) US$4.5M 15% NPAT (1) US$ (US$55.6M) (US$56.7M) US$1.1M 2% EPS (basic) US$ (US$0.267) (US$0.273) US$0.006 2% (1) includes asset impairment losses of US$81.1M for year ended 30 June 2018 and US$70.8M for year ended 30 June 2017; (2) Restated accounts relating to prior year adjustments due to change in accounting policy. EBITDA, NPAT and EPS (basic) previously reported were (US$35.2M), (US$62.1M) and (0.299) respectively.  Depreciation of fixed assets and amortisation of capitalised mine development and mine exploration was US$29.2 million (2017: US$18.0M);  US$14.6 million was expended on capital works associated with the new shaft construction and infrastructure, mine expansion and sustaining capital at the mine and mill (2017: US$16.2M);  Exploration expenditure, inclusive of underground diamond drilling, was US$5.4 million (2017: US$12.3M);  Capitalised mine development costs totalled US$24.5 million for the year (2017: US$27.6M); and  Corporate overheads of US$7.3million (2017: US$6.7M)

[galeforce1] 30/8/2018 12:11

Isn't there an element of 'kitchen-sinking' in these results?

We have non cash write-downs of $81m, plus the capital costs of the new lift shaft.

Looking to the current year, we should see much lower impairments and much lower capital costs. And might also see slightly higher production. They will certainly be able to move a lot more ore.

I can't see the production guidance mentioned in posts above, but I'm not surprised that Directors take an ultra-cautious view both on production and costs. It's much better to surprise to the upside.

But full-year production has risen by 19% and cash costs are down. That's all encouraging.

If I'm being delusionally optimistic here please say so.

Does anybody know what we can expect in impairments in 2018-19?

[deka1] 30/8/2018 09:37

Is their nothing positive to take rom the report guys ?

[speedsgh] 30/8/2018 08:45

2017/2018 Financial Results (2 page summary only) -

Appendix 4E, Directors Report & Full Year Financial Report (full report) -

[roguetreader] 30/8/2018 08:44

Pretty poor full year update:

Snapshot from my immediate viewing

- no mention of E15
- forward guidance on AISC up over the next six years
- production guidance down over the next six years



RT

[atlantic57] 26/8/2018 02:58

Possibly a turning point

Tightfist I have been involved in a charity in the Philippines for some years but now we have pulled out things have changed.

[tightfist] 24/8/2018 20:29

I noticed the following article headline from the UK FT:

"Fund managers turn their back on the Philippines

Holdings have more than halved amid worries over monetary policy and strongman president"

An intriguing trailer - Unfortunately it is a Premium article which I don't have a subscription for! Any insight anyone? Cheers, tightfist

[atlantic57] 18/8/2018 07:53

One ray of hope maybe the forthcoming trade talks between China and America.
A positive outcome could increase China's demand for base metals such as copper.
I understand that some gold miners produce copper and then produce gold for effectively nothing.

The other bullish note is that private investors who are invariably wrong currently
Hold the largest number of short positions in gold in 12 years.They will have to be closed out at some point.

The World debt position has been there for many years.What will be the catalyst for
This to light the fuse.?

[chipperfrd] 17/8/2018 16:45

Video about world debt levels. Nothing you guys should not all be aware of, but worth a reminder anyway.