Medusa Share Discussion Threads

[tightfist] 03/9/2019 07:48

Hi ILTL,
Agreed, with all the historic asset writing-down and now the reduction in payables there they are surely running out of hiding holes! Unless the Aussie adventure becomes a cash pit?....
With 2/3 of the BoD as accountants I am pretty confident IMO that everything is straight within the numbers - but the ongoing prudence/risk-aversion/lack-of-adventure is the price we pay? Even so, there is IMO quite some way to go, especially if we start seeing some returns for long-suffering shareholders (assisted by some PoG advance also being priced-in).

Cheers, tightfist

[ilostthelot] 02/9/2019 09:46

The lack of transparency from manangement is the main reason for the low rating but money talks, we'll soon see. The chart looks good, clearly others agree, the price has trebled from the lows. This move up hasn't reflected the strong movement up from the gold price. Imho.

[ilostthelot] 02/9/2019 09:22

Thanks for your analysis Steve. Very much appreciated.

Going forward, if gold stays at around this price, the manangement will struggle to hide all the cash Medusa is making. We will be a cash cow and paying dividends pretty soon.

[tightfist] 01/9/2019 17:39

Hi Steve;
“This is in line with the policy of secrecy and non-disclosure that pervades all aspects of the company's operations” - depressingly true - if the company was heading for the rocks maybe I would be slightly more forgiving...

Many thanks for your analysis; however, having substantial net cash is surely not a prerequisite for paying a (justifying a lack of) dividend in my book, especially as PoG is substantially on the rise and we already have net cash of USD5.5c - AUD8.2c ps.

It will be interesting to what extent the BoD are bending towards the shareholders interests in the AR in one month’s time.

Cheers, tightfist

[roguetreader] 01/9/2019 16:30

Steve, interesting observations
Cheers
RT

[stevea171] 01/9/2019 11:10

MML sp: 82.5c
EPS: US 17.2c (AUD 25.4c)
PE Ratio: 3.2

Headline figure: Total cash and cash equivalent in gold on metal account of US$23.4million at year end (2018: US$15.1M)
Actual cash & cash equiv: US$18.1 million (2018 $11.1 million)
Bank Borrowings & Interest Rate: US$6.6 million @ 6.3% (2018 $6.3 million @ 3.6%)

This gives an actual net cash figure of US$11.5 million.

In MML's quarterly reporting, interim and FY accounts why does the company not provide a net cash or net debt figure? Under current reporting, bank borrowing is reported only twice a year with interim results and FY accounts so the true position of net cash is either not reported at all or is buried in the accounts that have to be waded through to calculate this important metric. This is in line with the policy of secrecy and non-disclosure that pervades all aspects of the company's operations.

During the year cash flow has been used to reduce trade payables by $10 million from $24 million to $14 million rather than reduce bank borrowing. This would seem to be highly necessary for good business relations and to keep creditors at bay.

Dividend. It can be seen that the company has very little real net cash on hand ($11.5 million) with which to pay a dividend. This is likely to be an entirely different matter by the end of September with Q1/19 gold prices an average $200 or 300 higher falling straight to the bottom line.

[tightfist] 31/8/2019 17:14

Thanks Deka , but the acid test is doing something different as a result of years of well-justified frustration. Maybe the Miningnut content gives us some clues and especially those ii’s that are on the case?

I am away on holiday for next three weeks and investing activity is curtailed; however cash conversion from PAT to Cash looks like weak? Are there adequate explanations yet?

Cheers, tightfist

[deka1] 31/8/2019 07:43

Thanks guys all great posts and info.

[tightfist] 30/8/2019 19:52

(Repeat post)

[tightfist] 30/8/2019 19:52

Many thanks, Steve.
I am particularly glad Miningnut confirmed point 2 - E15@300tpd. I haven’t had chance to look back to ASX updates from three? years but the Q4 report states that E-5 shaft was “not designed” to haul ore. That is a plain untruth - the shaft was delayed and redesigned by RG to go two levels deeper AND haul 300 tpd ore. Let’s have the truth BoD - if the shaft has now been proven incapable of hauling ore please have the temerity to tell us so - or preferably haul ore. It was OUR cash that funded that capability.

A few other points I would add:
The inability to select and work with a multiple CEO’s
The BoD composition, action and recruitment breadth. Re-recruitment of previous deadwood
Lack of reported action since the 2018 remuneration report was voted-down
BoD shareholdings are minimal and moribund
BoD thinking has become increasingly narrow; Cambodia vs Australia inituatives goes unexplained

Hopefully we have the bedrock to now engage some ii’s and force action.

All the best, tightfist

[stevea171] 30/8/2019 12:01

Deka. In the closing auction MML finished the day at 82.5c. The drop earlier was because the market assumed the delay was because they would miss the deadline or had dire results to report (which was not the case.)

The results were posted very late in the day on the final day allowed to report. So, so typical of this company who are totally ossified and asleep at the wheel with anything that needs doing .....

[deka1] 30/8/2019 11:47

So are we putting the near 3cent drop last night down to big drop on gold yesterday .

[speedsgh] 30/8/2019 11:30

I see Corporate Overheads increased 19% to USD 8.7m (2018: USD 7.3m). Seems to me they need to start buying cheaper biscuits!

[tightfist] 30/8/2019 10:14

I mentioned a while ago a possible tender offer at a premium - don’t know much about them, had one some years ago and I believe EKT recently mentioned one.
How about starting with a buy-back of 5% max of individual MML shareholding’s at A$1.50?

Food for thought, tightfist

[ilostthelot] 30/8/2019 08:50

Maybe it's time to begin paying a dividend again. 25/30% of free cash flow 🤔

[c9ajl] 30/8/2019 07:59

https://www.medusamining.com.au/wp-content/uploads/2019/08/20182019_financialresults.pdf

[tightfist] 30/8/2019 07:16

FY results now posted. First glance is much as expected - a pe of about 3 and cash rose to around 15% of MC. PoG is currently trading around 20% up on 2019 FY average....

Pressure must surely be mounting on the BoD to do something!

Cheers, tightfist

[crossing_the_rubicon] 29/8/2019 11:38

Long way to go for many of us to recoup losses here..
But t's looking a bit more positive so cant complain.

"Gold" as in ABX/Randgold is on a stormer

[quepassa] 29/8/2019 11:21

galeforce1 - what a total moron you seem to be.

Why don't you go and find some other thread full of other halfwits like yourself.

[ilostthelot] 29/8/2019 08:52

It was 54pence(80c) i bought in at back in 2009. That was some bull run it went on after that. I sold out at 78 pence or something and realised I'd made a mistake eventually holding and selling most around £3.

[ilostthelot] 29/8/2019 08:49

Cheers Deka. With the upgraded infrastructure (lift shaft) in place. The more Conservative approach with production targets . Gold where it is.

MML is now a low margin, high leverage play. I expect an easy double within 12 months and probably a three or 4 bagger within 24 months.
You guys deserve at least that for your patience.

[deka1] 29/8/2019 06:53

Welcome back ILTL