Medusa Share Discussion Threads

[roguetreader] 22/11/2018 07:45

Teo re-elected at AGM but large rejection of Remuneration report recommendation. New slidedeck on web site.
RT

[roguetreader] 21/11/2018 09:05

Chairmans AGM address letter from Teo:



Arbiter stil buying:



RT

[ilostthelot] 20/11/2018 08:14

Looks like the market wants to see the results before any re rating here. Quite right. There will be opportunities to buy in here under 40c if and when the numbers improve. Imho.

[chipperfrd] 19/11/2018 11:07

Helps to explain why Brexit has gone the way it has:

[deka1] 19/11/2018 07:34

Hi Atlan yes most likely a bit rough for a time of adjustment to our new systems , but, anyway not for to long I hope, and then the time for the rewards , and according to the UN statement last week, the POVERTY levels in the UK are far to high, so looks like we aint got much further to fall lol.

[atlantic57] 18/11/2018 21:38

In the long run the uk would be better off with no deal as compared with the deal that is on offer.

However in the the short run there will be a huge shock to the uk economoy if there is no deal. Just listen to Radio 4 question time on Friday where john Redwood informs the chairman of seimanns that no deal would not impact uk infustry.

It won't be the likes of Borris Johnson or Rees Mogg that will pay the price of no deal

[ilostthelot] 18/11/2018 19:57

Some deal. We'd be better off no deal.

[deka1] 17/11/2018 21:48

The Rotten EU and that stinking deal.



You'll love this. If there was any doubt about the motivations of the EU and what its really there for then read these bullett points from a lawyer who has been thru the 585 pages of treachery..

The Mandelson Pension Clause: The UK must promise never to tax former EU officials based here – such as Peter Mandelson or Neil Kinnock – on their E.U. pensions, or tax any current ones on their salaries. The EU and its employees are immune to our tax laws. (Article 104)
Furthermore, the UK agrees not to prosecute EU employees who are, or who might be deemed in future, criminals (Art.101)

[ilostthelot] 07/11/2018 08:49

Haha i maybe I'll change it.

[glavey] 07/11/2018 06:41

With that moniker?

[ilostthelot] 05/11/2018 10:25

Tempted to open a position Mml could easliy make 5/6 millon per Q.

[deka1] 31/10/2018 06:42

QUARTERLY ACTIVITIES REPORT PERIOD ENDED 30 September 2018


Snapshot of Medusa:
❑ Un-hedged, high grade gold producer focused on growth in the Philippines and Asia Pacific ❑ No long-term debt
Board of Directors:
Andrew Teo (Chairperson and Interim CEO)
Raul Villanueva (Executive Director) Roy Daniel (Non-Executive Director)
Executive Management:
Raul Villanueva (President, Philippine subsidiaries) David McGowan (Chief Operating Officer) Peter Alphonso (Chief Financial Officer/Company Secretary) James Llorca (General Manager, Geology & Resources)
Patrick Chang (Corporate Development Officer)

Capital Structure: Ordinary shares: 207,794,301 Unlisted options: 6,030,000
Listing: ASX (Code: MML)
Address and Contact Details:
Suite 10, 100 Mill Point Road South Perth, WA 6151 Australia
PO Box 122 South Perth, WA 6951 Australia
Telephone: [phone] Facsimile: [phone] Email: [e-mail] Website: www.medusamining.com.au

OVERVIEW: Co-O MINE PRODUCTION ▪ Production: 24,177 ounces at average head grade of 5.97 g/t gold (Jun 2018 qtr: 22,835 ounces at average head grade of 5.74 g/t) ▪ Cash Costs: US$549 per ounce (Jun 2018 qtr: US$595 per ounce) ▪ All-In Sustaining Costs (“AISC”): US$1,126 per ounce (Jun 2018 qtr: US$1,278 per ounce) ▪ Mill Performance: Gold recovery averaged 94.5% (Jun 2018 qtr: 94.5%) ▪ Mine Development: Total advance was 7,898 metres of horizontal and vertical development (Jun 2018 qtr: 7,566 metres) ▪ Mine Infrasturcture Projects: - E15 Service Shaft - installation of the lower shaft steel work complete and practical completion on track for Oct 2018. - Development of internal hoisting winzes - E43 completed to level 10 and E48 winze completed to level 10. E35 winze continued development past level 10 and commenced development of level 10 plat. Development of this winze will continue to level 12.
Co-O MINE EXPLORATION ▪ Underground resource drilling Total drilling for the quarter was 10,471 metres, a 2% decrease from last quarter. Key areas targeted were as follows: - Reserve drilling at levels 5,6 and 7 totalled 3,158 metres from 25 holes. - Resource definition drilling at level 8 totalled 7,312 metres from 15 holes. - High-grade results from the resource drilling completed include 0.70 metres @ 425.27 g/t gold, 3.55 metres @ 60.28 g/t gold, 1.50 metres @ 14.88 g/t gold and 0.20 metres @ 210.40 g/t gold.
REGIONAL & NEAR MINE EXPLORATION ▪ Near Mine Exploration (MinEx): Reconnaissance activities within the mine environs identified two promising drill targets, the Royal Crowne Vein and Durian. Royal Crowne Vein lies 1.5km north of the Co-O mine and intial results of current scout drilling campaign confirm gold mineralisation. Complete assay results are still pending receipt from the laboratory. ▪ Epithermal Gold and Porphyry Cu-Au projects (Qld, Australia): Activity this quarter incldued working with landholders to progress the required agreements to access the land for drilling. The MML-Ellenkay Gold JV has also engaged with native title holders to prepare for clearance of the initial drill programs at both Mt Clark West (copper porphryry prospect) and Hill 212 (epithermal gold prospect).
CORPORATE & FINANCIALS ▪ Total cash and cash equivalent of gold on metal account at the end of the quarter was approximately US$11.8 million (June 2018 Qtr: US$15.1 million), after working capital movements, VAT, tax and interest charges. ▪ FY19 guidance of between 90,000 to 100,000 ounces and AISC of between US$1,050 to US$1,150 per ounce provided during the quarter. ▪ Non-Executive Director, Mr Peter Hepburn-Brown sadly passed away.

[deka1] 31/10/2018 06:38

PRACTICAL COMPLETION OF E15 SHAFT (ASX: MML)

• E15 achieved practical completion on 28 October 2018
• Final commissioning of E15 is continuing
• Completion of E15 will expedite production from lower mine levels

Medusa Mining Limited (Medusa or the Company) (ASX: MML) is pleased to advise that the E15 Service shaft achieved practical completion on 28 October 2018 and final commissioning is continuing (Figure 1).
Commenting on the milestone, Medusa Chairman Mr Andrew Teo said: “We are delighted to announce the practical completion of the E15 Service Shaft and we look forward to its contribution in the second half of FY18. We expect the shaft to take the burden of manpower and material movements from the L8 Shaft, allowing for an increase in the skipping capacity from L8 Shaft and expedite development and production on the lower mine levels. Importantly, the completion of this key infrastructure would also facilitate the establishment of more ideally located drilling stations for continued expansion of the Co-O Resources and Reserves in due course.”

[deka1] 30/10/2018 15:03

Nothing more important than family chip,good luck.

[roguetreader] 30/10/2018 14:16

Chip / Tightfist
Thanks for the added detail, still holding and waiting for my day in the ☀️
RT

[chipperfrd] 30/10/2018 14:01

I'm fine thanks Deka. Another grandchild arrived a fortnight ago so plenty to keep me occupied.

Hope all is well with you and yours.

Kind regards
Chip

[deka1] 30/10/2018 13:17

TF hi yes that's something MML has done almost always, funded expansion without borrowing, and they should be applauded for this , not much else to be applauded lol,

Good to hear from you Chip, hope you are well old friend.

[tightfist] 30/10/2018 10:55

Thanks for that Chip, deka1.

The company seems to have been very obscure with the forecast cost run-rate/out-turn on E15. IIRC the original cost was cited at ca. $12m and RG indicated an increase to $15m when the design scope was expanded a couple of years ago, increasing the depth and introducing limited ore haulage capability.

I don't think we have been told anything since (but I stand to be corrected). Again IIRC, the cash payback was suggested at circa 9 months, and should remain very swift.

There are several other capital projects that have been running in parallel with E15 but have been completed which may help to explain your figures. The ventilation project, tailings pond #5, the drainage/pumping project come to mind - I think the SAG mill capacity project/saga predates this?

That it was (virtually) all funded by internal cash generation speaks for itself!


Cheers, tightfist

[chipperfrd] 30/10/2018 10:37

Hi Deka,
Thanks for that. It seems to agree with my old estimates for increased haul capacity.

With reference to costs: I have just checked the average capital outlays over the last 14 quarters (ie period of E15 project - so far!) and it comes out at US$3.82m/qtr.

However, when I check the last 33 quarters (from September 2010) the average capital outlay per qtr is US$5m. So the period of the E15 build has actually seen lower average capital outlays compared to that.

Admittedly, that longer term average does include the L8 build (average of US$8.9m over 9 quarters), so perhaps an outlay of c. US$3m/qtr for capital works might be considered 'normal'. If so, E15 added perhaps US$0.8-1m per quarter for an estimated build cost of c. US$11-14m.

I would have thought that such an amount should be recouped over a relatively short period through increased production/sales as well as time saved on labour cost, etc, for shift changes, et al.

Regards
Chip

[deka1] 30/10/2018 08:15

Thanks RT, had a look and thought this post was worth putting up here.


E15 SS in service is designed to increase haul capacity by 300 tpd from L8 shaft. This is as a result of the L8 shaft currently having to alternate between skip haul for ore and man cage haul but will be dedicated to skip haul only as soon as E15 shaft is operational.

Mine output should increase from the latest Qtr to Sept of 145,000 wmt / 90 =1,600 wmt/d
ie to 1,600 wmt/d + 300 wmt/d = 1,900 wmt/d ie 18% increase.
Mill throughput should increase from 133k dmt/qtr by 18% to 157k dmt/qtr.

Gold production: 24,177 oz/qtr to 28,500 oz/qtr = 114k oz/yr.
(157k x 6 gt x 94.5% recovery / 31.1 gm/oz).

This ties in with a 2018 BT forecast of a 17% improvement in output post E15 SS implementation.

However the company's guidance for 2018/19 is 90 -100k. It seems this is too low but takes account of the uncertainty of operational issues during the first 6 months of the year in particular. The December quarter is affected by Xmas holidays for mine staff.

FY 2018/19 Possible production: 24k + 25k + 28.5k + 28.5k = 106k oz
FY 2018/19 AISC of between US$1,050 to US$1,150 per ounce. This is likely conservative. If actual production is higher than forecast AISC should reduce.

FY 2019/20FY 2019/20 Possible production: 114k oz
FY 2019/20 AISC. BT forecast was $850 oz but this is likely unachievable.

E15 SS was announced in March 2015, so more than 3 and a half years in design, planning and build. This is quite ridiculous! Umpteen completion dates were forecast during this time and none were met.
At what cost? The company won't say. If a cost estimate had ever been published it would have been subject to the same cost over runs as the time element.

[roguetreader] 29/10/2018 08:26

Some interesting speculation and posts on Hotcopper for those interested in viewing

[galeforce1] 25/10/2018 09:14

All reasonably encouraging, although with an average sale price of $1206 an an AISC of $1126 quarterly profit comes in at only about $1.5m.

The costs of the new service shaft over the quarter has absorbed most of the potential profit. We don't know exactly how much of the $3.7m 'capital works', but presumably most of it.

With the E15 shaft completing now, we should, start to see an AISC of around $1000 or below.

From December or January, when teh shaft is finally operating, we should also see slightly higher production. I'm pencilling in 25k, 26k and 27k for the next 3 quarters.

In theory, lower costs, slightly higher production and a gold price above $1200 will produce a profit of around $5m per quarter. Let's see!

[ilostthelot] 25/10/2018 08:04

They're becoming quite consistent with the 23-25,000 oz produced every Q.

The AISC coming down a little is something positive but it's still to high. Hopefully next Quarter without any money to spend on the e 15 shaft the Aisc will be closer to $1000. They should be trying alot harder to reduce costs to then reward shareholders with a dividend.

[roguetreader] 25/10/2018 07:42

Quarterly Report



RT

[tightfist] 24/10/2018 11:45

Terribly sad news overnight from Co-O and my thoughts are with the family.

This week's HK presentation seemed to have a different (and uncharacteristicly promotional) style about it? Maybe it was just the way I perceived it (and I have not gone back to review HK 2018) or maybe it's the marketing style of Patrick Chang being seen in action? Or maybe the II's are putting some pressure on AT for some positive share price progress?

Just a thought, tightfist