Medusa Share Discussion Threads

[stevea171] 24/10/2019 07:44

Production steady but exploration disappoints Medusa.

PHILIPPINES gold producer Medusa Mining delivered a steady September quarter despite a number of hoisting constraints and power outages at its flagship Co-O mine, and is on track to reach its full-year targets, although exploration efforts were largely disappointing.

The company is looking across the Asia-Pacific for new projects, but it has determined its Mount Clarke West project in Queensland is unlikely to host significant gold or copper values.

A 1288m drilling program as disappointing and the company is now waiting on assays from the Hill 212 gold project where shallow drilling vein structures with favourable epithermal textures and reasonable continuity but no visible sulphides.

Just three of 243 samples from drilling of the West Road 17 prospect in the Philippines, near the Co-O mine, returned grades above 1gpt, with the work failing to validate the down-dip continuity of mapped high-grade mineralised structures at surface.

A scout drilling program on the contiguous Calavera prospect is being considered.

It was more successful at its Royal Crowne Vein project, with the first hole in the phase three drilling program completed, returning a best result of 0.25m at 16.7gpt gold.

Drilling within the Co-O mine reduced 16% due to a lack of access, but 7722m of resource drilling was completed returning high-grade hits including 1.6m at 160gpt.

Production rose from 26,151 ounces at average grade of 6.04 grams per tonne last quarter to 27,515oz at average grade of 5.93gpt gold, and while cash costs were US$50/oz higher at $613/oz, the company kept the reins on all-in sustaining costs, which were steady at $997/oz, and mine development advance increased from 7778m to 9517m for the quarter.

Some 172,965 tonnes of rock were hoisted, primarily via the Level 8 Shaft which is now supported by the completed E15 shaft , and the mill processed 151,224t of ore with recovery rates steady at about 95%.

The processing plant throughput remains limited by mine hoisting production.

Production is expected to be lower this quarter due to an annual planned maintenance period, but Medusa's financial 2020 guidance remains between 95,000-105,000oz at an AISC of between $1025-$1125/oz.

The company ended the period with increased cash and bullion worth $31.1 million, up from $23.4 million after the sale of 26,689oz at an average $1484/oz.
The market liked the producer's reliability and its share closed up 7% yesterday at A75.5c, valuing the company at $157 million.

[sparkey_two] 23/10/2019 07:03

Yeah in both cases trying not to make us poorer 😀

[deka1] 23/10/2019 06:48

We can liken our BOD to our parliament and MML is the UK,the people we voted for to represent us and work for us have an ulterior motive .

[rhuvaal2] 22/10/2019 16:38

so say all of us ...

[ilostthelot] 22/10/2019 14:15

Indeed TF. 👍😁

[tightfist] 22/10/2019 13:46

Hi ILTL,

If you set easily achievable targets then you get no applause, as far as I am concerned.

Looking back to the Nov 2018 AGM, almost 60% voted (excluding Abstain, Disc.) against the Remuneration Report. For me this indicates the level of underlying dissatisfaction.

Not withstanding all the verbiage about Remuneration in the latest AR, personally I am looking forward with anticipation to the 7th November AGM, the outcome of Resolution 2 and, in the event that > 25% are Against adoption, the voting on Resolution 3 and a potential subsequent Spill Meeting within 90 days.

That way we may appoint a revised BoD that actually wants to transparently inform shareholders of their plans, set stretching but deliverable targets and, at long last, a Chairman that actively represents their interest.

Hope springs eternal! tightfist

[ilostthelot] 22/10/2019 09:11

New presentation on the website.
Another solid quarter.
Its fair to say production targets should be met fairly easily.

Decent cash build as well. 23.4 M to 31.1 M in that Q. So nearly $8M

If they keep it up at that rate surely they'll start paying a dividend.

Or will there be another massive saga with another mine shaft to access the below L12 🤔

[deka1] 22/10/2019 09:06

Quarterly Activities Report for the
Period Ended 30 September 2019
Production: 26,151 ounces at average head grade of 6.04 g/t gold (Mar 2019 Qtr: 29,858 ounces at average head grade of 6.98 g/t gold);
Cash Costs: US$613 per ounce (Jun 2019 Qtr: US$566 per ounce);
All-In Sustaining Costs (“AISC”): US$997 per ounce (Jun 2019 Qtr: US$995 per ounce);
Mill Performance: Gold recovery averaged 95.2% (Jun 2019 Qtr: 95.3%);
Mine Development: Total advance of 9,517 metres of horizontal and vertical development (Jun 2019 Qtr: 7,778 metres);
Mine Infrastructure Projects:
­ 35E winze has reached level 12;
­ Final designs completed for major pump station on level 10;
­ Work has continued on the systematic refurbishment of the L8 shaft to improve its longevity as a key infrastructure at Co-O; and
­ Study into accessing and mining below level 12 continued with the outcomes of the study expected in early 2020.
CORPORATE & FINANCIAL
Total cash and cash equivalent of gold on metal account at the end of the quarter increased to approximately US$31.1 million (Jun 2019 Qtr: US$23.4 million) after working capital movements, VAT, tax and interest charges; and
Stuart Ellison commenced as General Manager Operations and Projects. Stuart is a mining engineer with +15 years’ experience and was previously underground mining manager at Sandfire Resources’ DeGrussa operation.
Co-O MINE EXPLORATION
Underground Resource Drilling
Total drilling for the quarter was 11,380 m. Key areas targeted were:
­Reserve drilling at levels 4, 9 & 10 totalled 3,658 m from 24 holes;
­Resource definition drilling at level 10 totalled 7,722 m from 16 holes; and
­High-grade results achieved in resource drilling included 1.60 m @ 159.91 g/t Au, 0.80 m @ 112.53 g/t Au, 0.55 m @ 64.80 g/t Au and 0.25 m @ 31.35 g/t Au.
REGIONAL & NEAR MINE EXPLORATION
Co-O near Mine Exploration (MinEx):
The first three drill holes of the Phase 3 drilling at the Royal Crowne Vein Project were completed by the end of the quarter.
­ Initial assay results from the 1,468 m of drilling have been returned with a best result of 0.25 m at 16.7 g/t Au.

Mt Clarke West and Hill 212 Gold Projects (Qld, Australia):
Assay results from the four drill holes at the Mt Clarke West project were disappointing. Work was refocused to the Hill 212 Gold Project.
At Hill 212 Gold Project, seven shallow diamond drill holes were completed showing the right textures and structure continuity. Assay results are pending receipt from the laboratory

[stevea171] 21/10/2019 23:01

121 Mining Investment Hong Kong. 22/10- 23/10/19.
26 companies attending.
Last year MML attended and Patrick Chang gave a presentation.
Last year MML were completing the Services Shaft.
This year - nothing.
This year - no PR at all.
Why?

Isn't it obvious?
There is NOTHING going on for PC to talk about.
No company development.
Just standing still.
They don't even know if the directors will still be there in a month or so's time.

[atlantic57] 17/10/2019 18:25

There is a huge vote of no confidence in the Bod here.
If gold can go in a run and stay at elevated levels then all boats will rise.

[galeforce1] 16/10/2019 09:25

With a share price of AUD 71c the enterprise value of MML falls below $70m USD (I'm assuming there is now over $30m USD cash on the balance sheet). That's a trailing P/E of 2, despite the average selling price of gold in 2018-19 being $1,259.

So MML looks amazing value. But is it too early to add?

[deka1] 15/10/2019 09:02

I hope this drop in share price is tied to drop in gold , and not qtr 1 report out soon

[cp42kx07] 10/10/2019 08:51

Ditto, proxy instructions given (although I'm not sure that my ~ 0.16% holding is going to scare the directors too much!).

[speedsgh] 09/10/2019 10:15

My votes are in. Fingers xxd that the current board are swept out of office. It is long overdue.

[stevea171] 06/10/2019 15:18

It can be seen from below that to get a 25% vote against Resolution 2 and for Resolution 3 it would be helpful if two or more of the top 4 shareholders combined with PI's to vote down Resolution 2 and for Resolution 3 to register a combined 25% vote which would give rise to a Board Spill Meeting.

MEDUSA SUBSTANTIAL SHAREHOLDERS.

Name Date of Notice Ordinary Shares Held Ordinary Shares Held
Number of Shares Percentage

Ruffer LLP 20-Aug-19 31,045,518 14.94%

Arbiter Partners Capital Management 20-Nov-18 29,851,761 14.36%

Mitsubishi UFJ Financial Group 02-Aug-19 11,087,707 5.34%

Carol Australia Holdings Pty Ltd 06-Aug-19 10,564,969 5.08%

[cp42kx07] 04/10/2019 10:24

Hi tightfist R1 is tricky. I have no particular problem with RD but he'll be removed anyway if R3 is passed. It would then be up to the significant shareholders to suggest a new board that could (if they wish) include any necessary / useful current directors. It will all depend on whether the significant shareholders can be bothered to become active in order to boost the share price.CP

[tightfist] 04/10/2019 10:03

Thanks CP42:

I intend to vote (R1) For / (R2) Against / (R3 Contingency) For. IMO this gravy-train nonsense and endemic shareholder distain has has gone on far too long and needs to be brought to an end ASAP. The key will be mobilising the ii's in respect of Resolution 2.

I am on-balance favourable to (R1) Roy Daniels staying on - he was a colleague of Geoff Davis and some of his values must remain imprinted? And we would benefit from Roy's continuity perspective in a new BoD should R3 be Passed.

Cheers, tightfist

[cp42kx07] 04/10/2019 09:05

I intend to vote Against / Against / For as I have no confidence in this board. IMO this nonsense has gone on far too long.

[swallowsflysouth] 04/10/2019 07:54

Of particular not in following article - RESOLUTION 2 - ADOPTION OF THE REMUNERATION REPORT. I'm not sure they are going to take any notice of what the investors think ?

[deka1] 30/9/2019 18:26

FROM the gold thread

[deka1] 23/9/2019 14:33

Cheers lol

[crossing_the_rubicon] 23/9/2019 09:04

Hahaha
May you have many more! :)

And may there be a telegram from the big chief in your future when you hit 100

[deka1] 22/9/2019 18:11

CTR I'm already there 72years man

[crossing_the_rubicon] 22/9/2019 16:28

@Deka,

Was under the impression the target $25,000 was a bit less long term , and far closer to current year than many expect.

20-25 years most on these BB's will be dinosaurs... :)