Medusa Share Discussion Threads

[deka1] 09/7/2022 15:13

nice one cp42

[polaris] 08/7/2022 08:22

Next step of company name trashing out today. Supreme Court proceedings launched in Australia for what appears to be bullying against president of Co-O mine, Villanueva. These proceedings have been in Philippine courts since 2016 and all named execs left by end 2016. Not material to the company but dragging them through the mud.

[bushtuckaman] 07/7/2022 16:03

He's either a bit dodgy or incompetent. Neither are a good recipe!
It begs the question about the level of DD the company did on him.

[glavey] 07/7/2022 12:29

Polaris, escrow, OK, thanks, found it.

Seems odd that PRW would put himself in this predicament.

[polaris] 07/7/2022 08:19

I don't put it past the realms of possibility that Teo will return! If Welker has engineered him out and is shown to be 'a bit dodgy' the path is open to come back. In this strange world that might even be seen as positive as he 'knows the company'.

[deka1] 07/7/2022 07:37

Great post Polaris , thanks for your take ,

[polaris] 06/7/2022 18:42

The board announcement from the 5th terminating the services agreement with Welker means he is out, no 6-month notice. I find that an interesting flag that maybe there is more to this than a simple breach of the board of directors code.

The fast move from Welker becoming a non-exec to managing director to then change the name of MML to X64 is all the more intriguing given what has now happened. I doubt that this story has ended. I have all kinds of ideas going through my mind...start a buyback to sell out the non-escrowed shares as fast as possible to pocket cash from worthless assets. Change the company name to provide some support to other similar named companies that are not part of MML but related to Welker. Oust existing management to siphon off cash to a related party. Trash company name to allow a low-ball takeout offer to succeed. Yes, i have a very devious mind! ;-)


Then X64 (MML) come out today with the announcement that Co-O meets production target, actually right at the top end of the revised forecast. That means well over 23 k production for Q4 FY 2022. Even with inflationary pressure, the AISCs are likely to come in at bottom end of forecast and maybe even below.

That is great news, as it means EPS is likely to be in the range of $0.17-0.20, US not AUD. Unless there has been a very large spend on the Tiger Way in Q4 then cash pile will be larger than that reported at end of Q3. US dollar is stronger against the Aussie dollar than last Q. share price and EV suggest a basket-case producer with serious issues. Just the producing asset more than justifies the current SP, ignoring the cash on the books.

Roll on the Q4 AISC report at the end of the month, the audited figures and forward statement in August/September and, hopefully, a decent dividend declaration and some further progress within the buyback mandate.

[polaris] 06/7/2022 17:57

Just checked. Almost 16 M of 20 M shares issued are in 24 month escrow. See announcements on 3rd and 28th February for details. Worst case scenario is assets are worthless, due to nefarious reporting and MML duped into acquisition. Cue the escrow share seizure and civil proceedings to recover other funds. More likely is that Welker has a direct interest in whoever is performing the exploration services, a breach of conduct for a director unless approved. He was forced to resign when this came to light.

[polaris] 06/7/2022 17:36

Look at the agreement to buy the assets. I think 80 % of the shares issued were put into a voluntary 12 month escrow to ensure that the related party did not just dump shares on market. If Welker, who came with the assets, is shown to be anything other than legal then I expect the shares in escrow to be seized, pending a civil case. Either way, the producing assets are on track and worth well above current share price with the cash on hand to boot.

[glavey] 06/7/2022 11:56

Actually I think the worst case might be that the assets turn out to be worthless. The shares were issued, the deal announced as completed, why do you think they (most) are still in escrow (or ring-fenced)?

[polaris] 06/7/2022 08:30

Interesting. X64 thought it prudent to put an announcement out that Production met target at 89789 oz. I think they are trying to move on from Welker episode and get the market focussed back on operations. That's a pretty nice Q4 and expecting AISCs to be at bottom end of forecast, despite all the cost inflation. Also means production all but hit the original 90-95 k oz range.

[polaris] 05/7/2022 16:13

Worst case is he lied to get MML to buy Aussie assets belonging to Welker vehicle and it is a fraud case. Likely that the 20 M shares would be ring-fenced (most are still in escrow) and a civil case brought against entity. Let’s see what comes out in the FY figures in a couple of months. There will be a comment. Latest board notice looks to be a prelude for an investigation, IMO.

[glavey] 05/7/2022 14:36

That doesn't bode well for his entry arrangements into Medusa.

Perhaps Teo had 'concerns' and walked...

[polaris] 05/7/2022 08:35

Conflict of interest that was not reported to, or approved by, the board. They have effectively fired him for breach of contract. The share price is still hurting but the FY results will be in line, meaning that X64 will trade at a P/E of 1 based on EV. It should be a sitting duck for a low ball offer, probably around AUD$1.

[killing_time] 05/7/2022 07:54

Well its all going on here, Welker kicked out, hope he hasn't done something bad that's going to effect us.

[glavey] 01/7/2022 17:48

Per the prev. announced Drummond Basin Drill Program (12/04/22) "First assay results from the drill program expected in June/July 2022"

The results are awaited but meanwhile we have the sudden MD resignation (6m notice, so end of 2022 if it proceeds to schedule) and not long after his appointment following Medusa's procurement of the 10-64 assets (Drummond Basin) just 4 months ago in exchange for which PRW (MD) received 20m new shares in Medusa (said to be equiv. A$16m.) and representing appx. 8.776% of the enlarged share capital.

In 2021 Medusa pulled out of it's Bananghilig Project.
In 2018 Medusa entered into and in 2019 pulled out of its Queensland Project.
In 2018 Medusa entered into and pulled out of its Cambodian Project.

In 2022 Medusa's name was changed to X64 (10-64), the name of the acquired assets previously largely controlled by PWR.

Since the buy-back announcement (17/05/22) the share price has drifted lower by around 5% and since the PWR resignation announcement X64's share price has fallen back a further 10%.

Medusa made two dividend payments to shareholders in 2021.
No further dividends have been announced in 2022.

[polaris] 01/7/2022 12:19

I'd contact the provider. Assumption is yes as it was just a name change but only they will know for sure.

[boadicea] 01/7/2022 12:05

I just received a communication from the registrar (Computershare Aus) to elect to receive all communications electronically which refers to needing "SRN/HIN and postcode detailed in this letter ...". They are nowhere to be found!
Do I assume that they remain the same as for MML before the change of name?... and will the dividend bank mandate carry over? (Hoping for more dividends.)

I think I have previously opted for electronic commumication under MML so will ignore the latest X64 notification (which arrived by email) and assume all is ok until it isn't.

[polaris] 01/7/2022 09:25

MML bought Aussie assets from Welker vehicle. Welker performed a boardroom coup to remove Teo. Now he has given 6 months notice. All the while, the operations have rumbled on, as they always have. In the background, work on access tunnel for long term debottlenecking of haulage continues. I'd say it is a trashing of reputation to enable a low ball takeout, but I'm a cynic.

[atlantic57] 01/7/2022 09:14

Then why is share price where it is ?

[polaris] 01/7/2022 08:56

Sheer madness returns. The market cap is $107 M. At last Qly they had $76.2 M in cash. X64 will produce around 88 k oz gold at AISC of $1350-1400. Their FY ended yesterday. EV is close to $30 M. At $1800 gold and top end of AISC, this equivalent to 1 year cash generation!

[deka1] 30/6/2022 17:45

chart shows Head and shoulders, any good?

[polaris] 30/6/2022 08:16

What on earth is going on? Welker just gave 6 months notice after ousting Teo. Makes me wonder if the boardroom coup didn't work out as he wanted.