Medusa Share Discussion Threads

[glavey] 27/5/2021 10:50

Ladies and Gentlemen, This may be of interest:

I recently asked if MML could arrange for international bank transfer payments of dividends and received a positive reply from the Registrar.

"To assist, I am pleased to update that Computershare has established a Global Wire payment arrangement that will facilitate a currency conversion and direct payment to a foreign account (subject to the payment being over A$100). There are no costs to you as the shareholder or the company (Medusa Mining Limited).

To access and update your details, please access our online ‘Easyupdate217; site; www.computershare.com.au/easyupdate/mml

To login, please enter your SRN number and country code (SRN commences with a “I”)
Follow the login prompts
One logged in, Select “Add New Payment Instructions”
Select “Global Wire” and follow prompts
In addition to the payment instructions, the Easyupdate service will also enable you to add your email address for immediate Shareholder communications."

[polaris] 21/5/2021 08:58

Nothing that unexpected. At least the plan doesn't vest 100% on too easy metrics. There is at least some semblance of performance required. I'd have liked the targets to be tougher for full vest, particularly as these are on top of other remuneration. Not that excessive for a small miner TBH.

[glavey] 21/5/2021 08:54

What do others think of that GM plan?

[c9ajl] 21/5/2021 07:18

Notice of General Meetinghttps://www.medusamining.com.au/wp-content/uploads/2021/05/210521_noticeofmeetingproxyform.pdf

[polaris] 20/5/2021 13:30

Little snippet here.

Since the beginning of the Q, pog has risen around $180, more than 10 %. MML has moved about AU$0.01 in that time, less than 1 %. 20, 50 and 100 DMAs for gold have turned upwards. A couple of the tier Is, Barrick and Newmont, are up 20 + % in the same time frame.

Even with all of this positive development, MML EV is about $60 M. Cash-flow for next 12 months could well eclipse that, with a steady pog at current level, never mind the impact of inflation and Basel III on pog.

Seems the market wants to chase bankrupt companies and meme assets. I'd say that you couldn't make this up but you clearly can. It is happening! (still scratching head)

[polaris] 07/5/2021 14:51

Added some more MML last night as i randomly woke up about 0130...logged on and took what was on offer with IG. Anything near the bottom of the channel will be a steal by CY end, IMO. pog is looking increasingly perky. Long may that continue!

[deka1] 29/4/2021 06:59

Glad your here Polaris, grateful for your input , thanks, Dek

[polaris] 28/4/2021 18:34

@atlantic57 - MML is close to a rating of 1x free cash-flow at $1750 pog. Even the proposed spend on Tiger Way over the next 3 years is less than the free cash-flow generated in the last 4 Qs, when adding back the dividend value to cash pile.

[atlantic57] 28/4/2021 18:24

Thank you Polaris

[polaris] 28/4/2021 18:17

Market is very different now than 10 years ago - those really were the times of 15-25x cash-flow ratings. Nothing like that now. If you get 5x then it's a premium rating, unless one of the 'hot stock' developers...

MML only listed on ASX and so many have no access cf. when on AIM. Teo is still there, so the legacy management issues remain... He just declared himself CEO for 3 years after going through another external... I am aiming for something in the AUS$1.50-$2, given the production profile, AISCs and development plans.

MML have $72.2 M on the books at end of Q, US not AUS, and 208 M shares or so...ie around AUS$93 M in cash. Full market cap is AUS$167 M. MML is a 90+ k oz producer with a long-term production record (now near 1.1 M oz produced) and AISCs under $1200.

Finally, MML reintroduced the dividend at HY, paying AUS$0.05 per share. What other miner out there has a greater than 5 % yield, based solely on the first half of the FY?

However much people don't rate Teo, the share price is too low.

[polaris] 28/4/2021 17:58

Had MML a similar throughput to last Q in terms of ore processed, the figures would have been more like 22.5 k oz production and AISCs around $1100. That would have generated another $7.0 M in cash cf. reported position.

If the current Q has similar grade and all the maintenance was performed last Q then i'd expect throughput for Q2 as the base scenario for Q4. That would give mid-range on production and low end of AISCs guidance for FY.

At $1750 average pog, cash pile should increase back above $80 M, assuming no spend on Tiger Way before July. This would be $7.0 M from extra production and no spend on the dividend ($8 M). Suppose we will see in a few months!

At closing price last night on Oz market, the EV is under $60 M. This is low, whichever way you look at it.

edit
corrected the figures as i accidentally used the WMT ore mined for Q3 rather than DMT ore processed for the previous Q to calculate gold production...

[polaris] 28/4/2021 13:28

Those are a little disappointing. Lower grade through plant leading to fewer oz, higher AISCs and lower cash pile than anticipated. They have also retained guidance for FY21. I was expecting a similar Q to last year. Grade is the thing to watch going forward. If that falls further then production and AISCs will suffer. Nothing to get excited about in the Qly but nothing to be overly worried about either.

Company has this to say:
Gold production at Co-O for the March quarter of 18,359 ounces was basically in line with the Company’s expectation which factored in the seasonal holiday period, adverse weather, planned maintenance and further impacted by unexpected Covid-19 movement restrictions.

The reduction in mining activities over the period led to lower ore mined, at 107,080 tonnes, of which 96,476 tonnes were processed, at an average head grade of 6.21 g/t gold. The combination of lower tonnes mined at a lower head grade contributed to AISC of US$1,304 per ounce for the quarter.


I'd now expect bottom end of 90-95 k oz production guidance, looking at Q4 last year and AISCs to be at the low end of the $1200-1250. It'll depend on exact production oz for Q4 (21947 oz last year).

[c9ajl] 28/4/2021 09:42

March 2021 Quarterly Reporthttps://www.medusamining.com.au/wp-content/uploads/2021/04/210428_march2021quarterlyreport.pdf

[cp42kx07] 23/4/2021 14:37

I may be wrong but it seems that there is consistent end of day small trade selling taking place here. This serves to keep the share price from rising. Perhaps someone is taking a new, sizeable position?

[cp42kx07] 20/4/2021 19:13

Positives: unhedged, almost no debt, historical resource renewal, interesting tailings potential, competent local management, long-term local connections;

Negatives: country risk, directors, 3 year Tigerway cash drain.

I can see MML as an attractive cash-generating addition to a multi-national PM producer portfolio but I suspect that the MML board will do everything in their power to avoid their gravy train being de-railed. Interests are most definitely not aligned.

An offer around AUD 2 (PE c. 4 excluding Tigerway investment and cash balance) might gain some traction, AUD 3 would succeed imo.

[polaris] 19/4/2021 18:00

Given that we have seen a few smaller gold plays taken out recently, i have started wondering about MML and what IIs might accept given prospects.

Best guess, given current H1 production figures, expected production for FY, AISCs and pog is NPAT of $65-70 M for FY21 (because i'm assuming H2 will be worse than H1 in terms of production, costs and average pog). Cash pile at next results will be a few M ahead of end of calendar year, accounting for the $8 M in dividend payments, so i assume $82.5 M. At half-decent Q4 production it'll be ahead of $90 M at FY results.

We now know that MML are contracted to build the Tiger Way and that will be a budgeted cap-ex of $54 M over the next 36 months. Completing this will allow haulage to be de-bottlenecked and, potentially, allow much higher throughput to mill and lowering of economically viable cut-off grade of ore.

Given that NPAT, current pog, expected cash pile at YE, prospects and forward projections, and the fact that MML only ever replace ozs mined and so don't have the sort of forward multiple of other operations, what would you accept for your shares to have the company taken private?

[glavey] 17/4/2021 04:09

FWIW, The 'cheque payment' deduction is 15% for a UK holder - "non-resident withholding tax".

I suspect the issue may be that II are holding AU quoted stock through a 'local' (i.e. 'resident') nominee holding (the "Australian market provider"), which may result in the full 30% deduction. I doubt ii are 'thieving' anything themselves. Computershare will be making the deduction on behalf of MML and remitting to the AU Gov't.

This may be a downside to the benefit of being able to invest in certain 'foreign' instruments via the ii platform.



For info.
Here is some recent EQi comment relating to ii holdings:
Q. "How will investing in international markets work?"
A. "When you move to the ii platform your CDIs will be converted to direct holdings in the underlying securities on the relevant market."
"The value of your direct holdings will show in your ii account in the local currency with an equivalent value in £GBP also shown."

[cp42kx07] 16/4/2021 20:48

See my post #38405 (in conjunction with the recent link) which I believe addresses this issue. Or so I believe!

[johnhemming] 16/4/2021 18:54

I don't think there is a dispute as to whether a tax treaty exists. They normally do. The question is what effect it has.

[cp42kx07] 16/4/2021 16:14

FYI, see Article 10 section 2 (b):hTTps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/785856/Synthesised_text_of_the_Multilateral_Instrument_and_the_2003_Australia-UK_Double_Taxation_Convention_-_in_force.pdf

[cp42kx07] 16/4/2021 16:08

AFAIK the UK does have a tax treaty with Australia. See the HMRC website (or Oz government one) to confirm. Best of luck.

[c9ajl] 16/4/2021 15:17

ii have sent me the following update after I queried the 30% tax on the MML dividend:Thank you for your secure message, I've been advised that we've previously challenged this payment with our Australian market provider and they've advised that as this payment is a fully unfranked dividend the payment will be taxed at the non treaty rate of 30%.As to your personal circumstances and any potential reclaim of a tax difference with the ATO (Australian Tax Office), Interactive Investor currently do not offer relief at source for dividends on the Australian market.We can only advise that you speak with an independent tax advisor, the local tax office or refer to the HMRC website.If after doing so, you believe that you areentitled to claim the tax directly with the ATO and require documentation fromourselves to assist with the process, please let us know what documentation yourequire, specifying which dividends and accounts and we will investigate yourrequest.

[c9ajl] 16/4/2021 13:31

Medusa Mining (ASX:MML) share price climbs on Co-O Mine progresshttps://www.fool.com.au/2021/04/16/medusa-mining-asxmml-share-price-climbs-on-co-o-mine-progress/