Medusa Share Discussion Threads

[stevea171] 21/5/2019 07:51

$36 million gold recovery plan.
Instead of monetizing the $36 million of gold in TSF#1, Medusa has current bank borrowings of $7.4 million (reduced from $10.5 million at end of the last financial year) on which it has been paying interest of approx $300k p.a. So over the past few years that's probably about $1 million that's been thrown away in interest since the TSF #1 assessment in 2015.

If after 3.5 years Medusa is still unable to come up with a plan to monetize the $36 million of gold in Tailings pond #1 then here is a plan for them:

1. Remove the surface water from TSF#1 by mobile "waste water evaporation equipment" (plse see below) and by short pipe line to the tailings pond in current use.
2. Move a contract dozer and digger in to load the material onto trucks to transport the short distance to the ROM pad of the mill.
3. Add this 1.7 gm/t tailings material to the 6 gm/t Co-o ore, to be processed together through the mill. With the current spare capacity of the mill this could be done over 6 months or so from August 2019.
4. When the gold has been removed from TSF#1, strengthen the dam and reuse it for new tailings before building another tailings pond.
5. Investigate Tailings pond 2 for containing gold that can be removed in the same way.

Waste water evaporation equipment. This is mobile, skid mounted equipment into which water is pumped without treatment direct from the tailings pond. The equipment then evaporates the water by jetting it into the atmosphere as a fine spray. It can evaporate approximately 25 litres per second of water depending upon climatic conditions.

Rather than building new tailings ponds every few years why is the company not adopting new technology to reduce the need?

If by the next AGM in November the company has not moved this project forward, questions need to be asked of the directors and CEO directly.

[stevea171] 21/5/2019 07:50

$36 million of extra gold.
Medusa's Annual Reserves and Resources Update Statement last month provided some new information on the gold contained in tailings pond #1. This has been measured to be 28.2k oz at 1.7 gm/t gold worth $36 million at current prices just below $1300. This gold was in waste from high grade mining in the early days before Medusa was on the scene or had efficient recovery from the old mill. It is a valuable resource that could be monetized by Medusa's under utilized mill operating currently at only 63% capacity.

$36 million of extra gold that was mined long ago could be extracted from the tailings pond and put through the mill at low cost of recovery. It should be low AISC and would be a very nice earner that would completely transform Medusa's finances. I don't know why this has not been done already but it should be a top priority project to get this done this year.
Medusa says:
"A more detailed study into the feasibility of mining and processing the material from TSF#1 is ongoing."

This has been ongoing for years now with no progress. It is not good enough. Drilling and assessment was completed in 2015. So 3.5 years later the company still has no idea or plan to recover the gold that it can communicate. This goes with 3.5 years to build the E15 shaft with umpteen extensions to the time scale, redesign, you name it.

New management needs to give top priority to getting this gold recovered this year with no more prevarication. The company needs to adopt a 'can do' attitude and move quickly rather than move at a snail's pace with any project they are involved with.

TSF# 1 Tailings Drilling Project

The Tailings Storage Facility (“TSF”) #1 was the TSF utilised by the original processing plant since the 1980s. The TSF#1 material is from the earlier higher gold grade Co-O mine ore and was processed with techniques used at that time. Assessment completed in October 2015 was based on a 63-holeBangka drilling program with a total meterage of 516 metres. The drilling results were modelled in Surpac and a resource estimation using a lower cut-off grade of 0.85 g/t gold gave 510,169 DMT with 1.72 g/t gold containing 28,200 ounces of gold in the Indicated category that is compliant to the JORC 2012 code reporting standard. A more detailed study into the feasibility of mining and processing the material from TSF#1 is ongoing.

[crossing_the_rubicon] 14/5/2019 09:05

Nice to see a positive uplift in share price overnight.

[tightfist] 13/5/2019 16:43

Hi speedsgh,

Totally agreed here! Maybe the replacement of the Chairperson is required to deliver my not unreasonable requests.... The voting-down of the Autumn 2018 Remuneration Report indicates that significant ii's are becoming restless.....

I note again that last night only 25% of trade volumes end in a "00". Anything else than "00" has to be a 'bot?? Patient tightfist!

[speedsgh] 13/5/2019 15:24

@tightfist - "IMO what we need is the dividend to be restored and/or a modest share buy-back programme to be authorised at the AGM and put an end to all these trivial trades that seem to plague the ASX."

Change of Chairman would do the world of good too. One can but live in hope!

[ilostthelot] 13/5/2019 15:07

Thanks for the reply tightfist. You guys are owed at least that for your paitence.

[atlantic57] 13/5/2019 15:00

I have lost track of time but once upon a time when medusa was producing 25k a quarter
The share price was much much higher.However I can’t remember what the gold price was back then
And the resource size.

[tightfist] 13/5/2019 14:17

ILTL,

Re: the ore mining vs milling mismatch, I have never understood the discrepancy between Wet Ore and Dry Ore mass within MML numbers. Could this account for part of the difference?

With regard to upside potential I have thought for the last six months that A$2 is IMO readily on the cards. I am a proven optimist, but, if the BoD was rejuvenated I stand by my number in the next 18 month. IMO what we need is the dividend to be restored and/or a modest share buy-back programme to be authorised at the AGM and put an end to all these trivial trades that seem to plague the ASX.

Cheers, tightfist

[crossing_the_rubicon] 13/5/2019 09:51

Great news the production upgrade. And AISC to be at the lower end of the range.

Have we turned the corner I wonder??

[ilostthelot] 13/5/2019 09:17

I am still on side lines here but the investment case looks alot better...
Enterprise value of $40M.
Last quarterly cash banked $5M based on that alone it's got to be valued at least 50% higher.

Anyone care to put their fair valuation down?

[noirua] 13/5/2019 01:28

Investor Presentation
May 2019

[noirua] 13/5/2019 01:27

FY19 PRODUCTION GUIDANCE UPGRADE
13 May 2019

[ilostthelot] 08/5/2019 11:47

I note 160,000 tons were mined and 142,00 tons processed.
Leaving 18,000 tons of unprocessed ore.

That is substantially more than what is usually left over from previous Quarters.

I'd expect this extra ore will be at the higher head grade and in turn benefit this Quarters AISC s and mined ozs.

So I'm hopeful of over 27,000 ozs produced and AISC between $950-$1000 for this Quarter.

[shiv1986] 07/5/2019 14:16

ADVFN is hosting an investor event for Avation plc, on the 21st May to find out about their future prospects.

Sign up to attend this event in order to meet the Finance Director of Avation plc along with the ADVFN team:

[roguetreader] 07/5/2019 14:15

Yes, cheers Steve interesting post. I think the key is management producing consistent Oz (25k per qtr)over the next two to three quarters at an AISC closer to the $1050 per Oz to get some belief back in the company.

[crossing_the_rubicon] 07/5/2019 12:05

Cheers for the updates Steve.

[deka1] 07/5/2019 06:35

Steve hi , thanks for the numbers mate all looking very positive MML.

[deka1] 01/5/2019 06:49

re steve 747 post regarding Diwalwal possible JV with MML could be the way forward for MML , I hope they pursue it.


Could be a real gamechanger.

[ilostthelot] 30/4/2019 14:12

First time for a long time you can honestly say good results medusa.!! . Maybe the touted Aisc of $800 is possible after all, especially if the mill gets filled.

[galeforce1] 30/4/2019 10:52

It's been a long wait, but what a great quarter from MML! Well done David McGowan.

We have $19.7m in the bank and Jan-March production was 29,858 oz, a massive jump from 23,120 oz in Oct-Dec.

They caution that the 'higher-than-planned production' is partly down to a lucky hit on some high-yielding ore.

But even if production comes down 5% in the next quarter MML should still be very profitable. We should see a cash on the balance sheet of at least $25m by the financial year-end on June 30th.

Market cap is now around $59m. Subtract the cash and that becomes $39m. If we are making $5m per quarter net profit that's a p/e of 2.

I wonder if the board will be tempted to distribute a divi? Maybe 2 cents ($4m approx)

[chipperfrd] 30/4/2019 08:33

Hi Deka,

Hope all is well with you. I lost much of April through a bad bout of flue but back to normal now thank goodness.

I am tending to do far less on shares these days and putting lots of effort into family and leisure instead. Currently building (actually rebuilding) a large model railway for grandchildren!

Hope you have a good 2019.

Kind regards
Chip

[deka1] 30/4/2019 06:10

cheers chip.

[chipperfrd] 29/4/2019 12:08

Thanks for posting the info guys. I will have a deeper look when I have the time.

[andypar] 29/4/2019 10:11

Great quarter, better than I hoped.

Bizarrely the results felt like a miss and came across as downbeat. Cash improved by nearly $5m, new shaft working well. Low capital spend :o)

Let's get a proactive video up, quarterly analyst conference call. Tell people and they will buy shares.

Bad times hopefully behind us. Let's start talking divi for say payment in Q4 this year.