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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Medusa Mining | LSE:MML | London | Ordinary Share | AU000000MML0 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 97.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jul 2019 to Jul 2024
TIDMMML
RNS Number : 7624X
Medusa Mining Limited
21 February 2012
21 February 2012
MEDUSA MINING LIMITED
ABN 60 099 377 849
and Controlled Entities
HALF-YEAR FINANCIAL REPORT
31 DECEMBER 2011
CONTENTS PAGE Results for announcement to the market 1 Managing Director's Address 2 Directors' Report 3 Auditor's Independence Declaration 21 Consolidated Statement of Comprehensive Income 22 Consolidated Statement of Financial Position 23 Consolidated Statement of Changes in Equity 24 Consolidated Statement of Cash Flows 25 Condensed Notes to Financial Statements 26 Directors' Declaration 32 Independent Review Report 33
This report should be read in conjunction with Medusa's Annual Report for the year ended 30 June 2011 and any announcements made by the Company during the interim reporting period, as it does not include all the notes of the type normally included in an annual financial report.
Appendix 4D
Half year report
For the 6 months ended 31 December 2011
Hot Features
Premium
Name of entity
MEDUSA MINING LIMITED
ABN or equivalent Half yearly Preliminary Half year/ financial ended ("current
company reference (tick) final (tick) period")
60 099 377 849 31 December 2011
Results for announcement to the market
Revenues and profits: US$'000 US$'000
down
Revenues from ordinary activities 48% 37,395 to 40,908
Profit from ordinary activities after down
tax attributable to members 59% 34,095 to 23,987
Net profit for the period attributable down
to members 59% 34,095 to 23,987
(All comparisons to the previous period ended 31 December
2010)
------------------------------------------------------------------------------
Dividends:
Interim dividend Amount per Franked amount per
security security
- current period A$0.05 Nil
- previous period (half year A$0.05 Nil
ended 31 Dec 2010)
The Record Date for determining entitlement to the dividend
is 09 March 2012;
Payment Date for dividends will be 23 March 2012;
There is no Foreign Conduit Income attributed to the dividend;
and
The Company does not have any Dividend Reinvestment Plan
in operation.
Net tangible assets per share:
The net tangible assets per share as at 31 Dec 2011 was
US$1.536 (31 Dec 2010: US$ 1.236)
Change in control of entities:
There has been no change in control, either gained or loss
during the current period.
Associates and Joint Venture entities:
The Consolidated Group did not have a holding in any associates
or joint venture entities during the current period.
------------------------------------------------------------------------------
MANAGING DIRECTOR'S ADDRESS
"I am pleased to report that exploration success has driven the decision to expand our Co-O mine and mill. Hence this financial year is a year of transition, from a 100,000 ounce per year operation in the previous year, to approximately 75,000 ounces this financial year while the expansions to the haulage capacity from underground are completed, and accelerated development is prioritised.
New, large scale haulage in the form of the Saga Shaft commenced in January 2011. Progress has been good, and we anticipate the shaft will be fully operational from 350 metres below surface in the last quarter of calendar year 2012. Recent re-optimisation recommended sinking directly to its final depth, which will then allow us to develop more levels ahead of increased production and to stockpile ore ahead of the new mill commencing operation in mid calendar year 2013. This is the first major shaft the Company has sunk, and the expertise gained from this will serve us well for the sinking of future shafts.
Continuing exploration success to the east of the Agsao Shaft has driven us to begin preparations for another deep shaft in this area, initially to approximately 750 metres, but possibly to a final depth of approximately 1,000 metres. Geotechnical drilling to test the ground conditions in this area are in progress. This will be a major undertaking for the Company and will cement the long term future of production from Co-O.
At the mill we have commenced construction, and our long lead time equipment has started to arrive on site. We anticipate that all items will be delivered on schedule. Initially we are focussing on upgrading the wet circuit being the leach tanks, elution circuit and the thickener, and installing a detoxification unit to ensure our tailings are benign when discharged to the tailings dam.
The construction of a number of buildings is also in progress. At the mine we are constructing additional accommodation, and at the mill, a new administration building and senior staff accommodation. The current laboratory is being upgraded and expanded, and the building of a new geology division office and a central core farm (that will house the 120 kilometres of core drilled each year, including core drilled to date) are in progress. A new maintenance workshop for trucks and heavy equipment will also be constructed.
It is always difficult to expand and produce at the same time. However with the team we have on site assisted by our consultants, we are confident we will achieve our timelines for the Co-O expansion, barring interference from the weather.
At the Bananghilig Deposit, drilling is continuing with emphasis on converting the historic 650,000 Inferred resource ounces and additional Inferred resources ounces to the Indicated category. The aim is to achieve an initial reserve of approximately 1 million ounces for a 200,000 ounce per year operation.
Our growth plans remain intact and are progressing steadily forward. This year promises to be an exciting year as we move the Co-O Mine construction forward to completion, and we look forward to providing updates as milestones are reached."
DIRECTORS' REPORT
The Directors present their report together with the consolidated financial report for the half-year ended 31 December 2011 and the review report thereon:
DIRECTORS:
The Directors of the Company at any time during or since the end of the half-year are:
Name Period of Directorship
Non-executives:
Mr Geoffrey J Davis (Chairman) Director since February
Dr Robert M Weinberg 2002
Mr Andrew Boon San Teo Director since July 2006
Mr Ciceron A Angeles Director since February
2010
Director since 28 June
2011
Executives:
Mr Peter Hepburn-Brown (Managing Director since September
Director) 2009
HIGHLIGHTS FOR THE SIX MONTHS TO 31 DECEMBER 2011:
Financials
- Revenues of US$40.9 million compared to US$78.3 million for the corresponding period in the previous year, due to decreased gold production as a result of planned mine expansion and development, partially offset by a higher average price received on sale of gold. Medusa is an un-hedged gold producer and received an average gold price of US$1,655 per ounce from the sale of 25,446 ounces of gold for the half-year to December 2011 (corresponding period to December 2010: 48,883 ounces at US$1,291 per ounce);
- Earnings before interest, tax, depreciation and amortisation ("EBITDA") of US$28.4 million, (US$63.3 million in the prior corresponding period);
- Earnings per share ("EPS") of US$0.127 on a weighted average basis is based on NPAT of US$24.0 million (six months to December 2010: EPS of US$0.310 based on NPAT of US$58.1 million);
- The Company remains debt free and had total cash, cash equivalent in gold on metal account and bullion on hand of US$80.2 million at 31 December 2011 (corresponding period to 31 December 2010: US$87.2 million).
Description Unit Dec 2011 Dec 2010 Variance (%)
($37.4
Revenues US$ $40.9 M $78.3 M* M) (48%)
------------- ------ --------- --------- --------- ------
($34.9
EBITDA US$ $28.4 M $63.3 M M) (55%)
------------- ------ --------- --------- --------- ------
($34.1
NPAT US$ $24.0 M $58.1 M M) (59%)
------------- ------ --------- --------- --------- ------
EPS (basic) US$ $0.127 $0.310 ($0.183) (59%)
------------- ------ --------- --------- --------- ------
(*) Includes the sale of bullion that relate to prior year's production (previously re-classified from revenue to inventory at 30 June 2010 to comply with Australian Accounting Standards). Refer 2010 Annual Report.
Dividends
The Board has approved an interim un-franked dividend payment of A$0.05 per share payable to shareholders on 23 March 2012.
The relevant dates for the interim dividend are as follows:
Dividend Record Date : 09 March 2012 Ex-Dividend Date (on : 05 March 2012 ASX) Ex-Dividend Date (on : 07 March 2012 LSE) Dividend Payment Date : 23 March 2012
There is no foreign conduit income attributed to the dividend.
Operations
- The Company produced 26,780 ounces of gold for the half-year, compared to 24,347 ounces from the previous corresponding period, at an average recovered grade of 8.10 g/t gold (six months to December 2010: 14.28 g/t gold);
- Average cash cost for the half-year of US$261 per ounce, was higher than the previous corresponding period's costs of US$186 per ounce;
Description Unit Dec 2011 Dec 2010 Variance (%) Production ounces 26,780 51,127 (24,347) (48%) Cash costs US$/oz $261 $186 ($75) (40%) Gold price received US$/oz $1,655 $1,291 $364 28%
Production Outlook
The total forecast gold production for the fiscal year to 30 June 2012 after taking into account current production of 26,780 is now 75,000 ounces at anticipated cash costs of US$230 per ounce.
A breakdown of actual and budgeted production ounces and cost per ounce by quarters for the last six quarters and the remaining two quarters of this fiscal year is highlighted in Graph 1 (please see link at the end of this announcement.
Graph 1 (please see link at the end of this announcement) shows the Co-O quarterly production/unit costs graph (Actual: fiscal year 2010/11, Sep & Dec 2011 qtrs; Budget: Mar & Jun 2012 qtrs)
OPERATIONS OVERVIEW
The locations of the Company's projects are shown on Figures 1 and 2 (please see link at the end of this announcement).
GOLD PRODUCTION
The production statistics for the six months to 31 December 2011 with comparatives for the December 2010 half year are summarised in Table I.
Table I. Gold production statistics
Description Unit Half-year Half-year Variance (%)
ended 31 ended 31
Dec 2011 Dec 2010
Tonnes mined WMT 113,468 121,988 (8,520) (7%)
Ore milled DMT 110,160 118,501 (8,341) (7%)
Recovered grade gpt 8.10 14.28 (6.18) (43%)
Recovery % 93% 94% (1%) (1%)
Gold produced ounces 26,780 51,127 (24,347) (48%)
Cash costs (1) US$ $261 $186 ($75) (40%)
Gold sold ounces 25,446 48,883 (23,437) (48%)
Average gold price
received US$ $1,655 $1,291 $364 28%
Note:
(1) Net of development costs and includes royalties and local business taxes but no by-product credits.
Gold production for the six months to 31 December 2011 was 26,780 ounces of gold at an average grade of 8.10 g/t gold was below last year's production of 51,127 ounces of gold at recovered grades averaging 14.28 g/t gold.
The average cash costs of US$261 per ounce, inclusive of royalties and local business taxes is higher than the previous period's average cash costs of US$186 per ounce, primarily due to reduced gold production.
Medusa, an un-hedged gold producer, sold 25,446 ounces of gold at an average price of US$1,655 per ounce during the period (corresponding period last year 48,883 at average price received of US$1,291 per ounce).
The forecast gold production for the fiscal year to 30 June 2012, following production of 26,780 ounces of gold for the half year to December 2011 has been revised to 75,000 ounces at forecasted cash costs circa US$230 per ounce.
A breakdown of actual and forecasted production ounces and cost per ounce by quarters for the last six quarters and the remaining two quarters of this fiscal year is highlighted in Graph 1 (please see link at the end of this announcement)
Please see link at the end of this announcement for the Preliminary Development Timetable.
Co-O MINE and MILL
Mine
Mine development and expansion involves
- The sinking of the Saga Shaft is at 210 metres as reported on 30 January 2012. Following a review during the December quarter and re-optimisation, the shaft will now be sunk directly to Level 8 (approximately 350 metres below surface) which will be the only haulage level for the Saga Shaft. The current mine shaft haulage capacity is sufficient for the current mill capacity of approximately 1,000 tonnes per day;
- The completion of a second internal shaft from Level 5 to Level 6;
- Record amounts of development are now being achieved to open up the mine for increased production, resulting in a higher percentage of development ore in the mill feed;
- Refurbishment and upgrading of the Agsao Shaft during the September quarter involved replacement of shaft timbers and installing a new larger winder and larger skip. This resulted in decreased production in the September quarter.
Mill
The mill has continued to operate normally. Production for the FY 2012 has been revised to 75,000 ounces due to the continuing aggressive development programme to match the sinking of the Saga Shaft to Level 8 which will continue the supply of a high percentage of development ore to the mill, as well as the effects of tropical storm Sendong and subsequent torrential rains which affected ore haulage from the mine to the mill.
In November 2010 the Company approved the construction of a new mill with the capacity of 200,000 ounces per year. Work has commenced on the following:
- Upgrading of the thickener and the elution circuit;
- Commencement of installation of one additional large leach tank and refurbishment of four small leach tanks;
- Installation of a detoxification unit; and
- Preparations for the installation of a new crusher and SAG mill.
Tailings Dam
Construction of tailings dam number 5 is 80% completed.
Health and Safety
Lost time accident frequency rate (LTAFR) for the six months to 31 December 2012 is 1.10 including exploration. By comparison, the latest West Australian gold mining industry figure available to 30 September 2011 was 3.10, excluding exploration statistics of 6.70.
As reported on 31 October 2011, an underground miner on afternoon shift was involved in a fatal accident in a shrinkage stope at the mine. The broken ore that the miner was standing on collapsed due to an undetectable cavity caused by bridging above the full ore chute.
There were no breaches of any of the project's operating regulations during the quarter.
Co-O RESOURCES AND RESERVES
On 27 July 2011 the Company announced the mineral resources as shown in Table II.
Table II. Mineral Resource estimation as at 27 July 2011
Category > 0 g/t gold
tonnes g/t ounces
gold
Indicated 1,601,000 12.0 616,000
Inferred 4,747,000 8.8 1,344,000
TOTAL RESOURCES 6,348,000 9.6 1,960,000
The resource estimation was undertaken by Cube Consulting Pty Ltd (2011)
Notes:
- Various uppercuts have been applied on an individual vein basis; and Resources are inclusive of reserves.
On 22 August 2011 the Company announced the mineral reserve as shown in Table III.
Table III. Mineral Reserve estimation as at 22 August 2011
Category > 3 g/t gold
tonnes g/t ounces
gold
Probable 1,500,000 10.1 502,000
The reserve estimations were undertaken by Carras Mining Pty Ltd (2011)
Vein modelling
Cube Consulting Pty Ltd of Perth, Western Australia was contracted to undertake the resource estimations. A wireframe model of the vein system and the mine depletions were based on all available information as at 30 June 2010. A 2D longitudinal modelling approach was used and is based on an accumulation variable incorporating mineralised vein horizontal width and intercept grade. Variography was used to analyse the spatial continuity of the horizontal width and accumulation variables within the mineralised veins and to determine appropriate estimation inputs to the interpolation process. The accumulation variables were interpolated into blocks using Ordinary Kriging. High grade limits were applied to gold prior to the calculation of the accumulation variable. Mineral resources have been reported in accordance with The 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code) and Canadian National Instrument 43-101.
Co-O RESOURCE DRILLING
Diamond drilling has continued since the last resource model update announced on 27 July 2011 and has focused on extending the Co-O Vein system mainly along the eastern side of the resource model. Results from a total of 24 surface drill holes for 16,824 metres and 33 underground drill holes 6,900 metres have been completed (as announced on 17 October 2011) since the previous resource estimation. Maps showing the location of these drill holes are contained in each announcement. Resource updates are estimated annually, generally in the third quarter.
Table IV lists the surface diamond drilling results greater than 3 g/t gold over >0.5 metre downhole width from the Co-O Mine for drill holes EXP 087 to EXP 110. These results are extracted from the announcement dated 17 October 2011 which contains more detailed drilling results with intersections down to 0.2 metres downhole width. Hole locations are also shown on the maps in these announcements.
Table IV. Surface drill hole results >=3 g/t gold and >=0.5 metres downhole for new holes EXP087 to EXP101
Hole East North Dip Azimuth From Width Grade (uncut)
number ([deg]) ([deg]) (metres) (metres) (g/t gold)
EXP 087 614291 912989 -45 180 357.65 1.00 9.13 (*)
424.80 1.40 28.02 (*)
EXP 088 614066 913152 -57 160 469.70 0.55 4.26 (*)
523.55 1.00 3.37 (*)
EXP 089 614542 912901 -55 180 345.95 6.60 6.54 (*)
EXP 091 614217 913473 -50 160 627.00 0.50 8.57 (*)
738.65 2.20 8.88 (*)
EXP 092 614575 913323 -50 160 113.75 0.75 4.53 (*)
286.75 1.45 56.23 (*)
501.70 0.50 10.03 (*)
579.00 1.55 33.55 (*)
EXP 093 614595 912950 -55 180 371.00 1.00 21.53 (*)
496.70 2.50 72.80 (*)
660.60 0.60 9.30 (*)
EXP 094 614758 913452 -50 160 725.10 1.10 14.73 (*)
Hole East North Dip Azimuth From Width Grade (uncut)
number ([deg]) ([deg]) (metres) (metres) (g/t gold)
EXP 095 614066 913152 -47 160 162.35 1.00 4.81 (*)
403.15 1.00 4.33 (*)
431.10 2.20 4.98 (*)
452.90 0.50 3.27 (*)
499.65 2.35 10.61 (*)
510.30 1.20 6.46 (*)
533.50 3.40 6.53 (*)
581.20 1.35 3.50 (*)
609.80 2.05 15.97 (*)
648.45 2.35 7.69 (*)
657.80 0.70 4.38 (*)
EXP 097 614589 913104 -52 160 285.60 5.10 5.22 (*)
448.20 1.15 5.92 (*)
454.70 1.80 3.09 (*)
519.55 0.50 24.30 (*)
536.45 1.95 9.74 (*)
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) Assays denoted by (*) are by Philsaga Mining Corporation's laboratory, all other assays are by McPhar Geoservices Inc. in Manila;
(iii) Grid coordinates based on the Philippine Reference System 92.
Table V lists the underground diamond drilling results greater than 3 g/t gold over >0.5 metre downhole width from the Co-O Mine.
Table V results are extracted from the announcement dated 17 October 2011 which contains more detailed drilling results with intersections down to 0.2 metres downhole width. Drill hole locations are also shown on the maps in these announcements.
Table V. Underground drill hole results >3 g/t gold and >0.5 metres downhole
Hole number East North Dip Azimuth From Width Grade (uncut)
([deg]) ([deg]) (metres) (metres) (g/t gold)
LEVEL 2
L2-044 613416 912949 0 322 3.80 0.60 11.17 (*)
L2-047 614057 913020 0 231 72.05 0.75 6.50 (*)
LEVEL 4
L4-024 613985 912881 0 152 108.55 2.40 24.34 (*)
LEVEL 5
L5-067 613945 912889 -58 138 60.45 0.80 5.87 (*)
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) Assays denoted by (*) are by Philsaga Mining Corporation's laboratory, all other assays are by McPhar Geoservices Inc. in Manila;
(iii) Grid co-ordinates based on the Philippine Reference System 92.
Figure 3 (please see link at the end of this announcement) shows a 3D model of the Co-O Mine looking north as at 17 July 2011.
Figure 4 (please see link at the end of this announcement) shows a composite diagram of the Co-O Mine area showing the projection of the veins at Level 6 and surface drill holes EXP 087 to 110.
Figure 5 (please see link at the end of this announcement) shows the Co-O Mine development 3D view looking north as at 17 July 2011.
TAMBIS-BAROBO AREA
BACKGROUND
The Tambis Project, containing the Bananghilig Gold Deposit as shown on Figures 1 and 2 (please see link at the end of this announcement), is operated under a Mining Agreement with Philex Gold Philippines Inc. over Mineral Production Sharing Agreement ("MPSA") 344-2010-XIII which covers 6,262 hectares.
The area has been known as an alluivial gold producing area since Spanish times. The first modern exploration pre-Medusa group was conducted in the 1970s followed by further work in the 1990s. The Company commenced a concerted drilling programme in July 2010.
The Bananghilig Deposit currently has an inferred resource of 650,000 ounces contained in 15,000,000 tonnes at a grade of 1.3 g/t gold. Figure 6 (please see link at the end of this announcement) shows the surface geology of the deposit and Figure 7 (please see link at the end of this announcement) shows a cross-section through the deposit.
Detailed deposit geological and mineralisation descriptions are contained in the announcement dated 12 September 2011 which contains results for drill holes TDH 027 to 102, and the announcement dated 17 January 2012 contains results for holes TDH 102 to 141 excluding TDH 131 to 134 which have been drilled outside Banaghilig. As there are a large number of intersections reported in these announcements, they have not been repeated in this half yearly report.
AIM OF PROGRAMME
In July 2010, new regional and detailed mapping and drilling programmes were commenced with the aim of validating the current resource and extending it to provide a reserve of approximately one million ounces. This reserve would form the basis for a feasibility study which would target production of 200,000 ounces of gold per year from a new milling facility.
REGIONAL GEOLOGICAL SETTING
The Tambis regional geology, termed the Tambis intrusive-breccia complex, typifies a structurally complex intermediate-sulphidation, epithermal gold, breccia-type system, including disseminated gold overprinting the host Tertiary-age igneous package which had been emplaced into an andesitic volcanic basement. The fertile igneous suite comprises a multi-phase calc-alkaline, high level, sub-volcanic intrusive package cut by extensive bodies of phreatomagmatic diatremes and hydrothermal breccias.
Laboratory studies including fluid inclusions have indicated that the Tambis area is only shallowly eroded with an estimated 500 to 950 metres of material stripped from the original surface.
The Tambis intrusive-breccia complex is overlain by younger marine limestones and basal mudstones to the south and the east. The extent of the complex below this younger cover is yet to be determined.
To date most of the mineralisation has been identified within or around the margins of the Bananghilig Diatreme.
Exploration
Drilling commenced in July 2010 and is continuing with seven surface rigs. Drilling is currently concentrating on ensuring as much as possible of the resources will be in the Indicated category. It is planned for a new resource estimation to be undertaken around mid-2012.
Induced Polarisation / Resistivity and ground magnetics surveys were completed over the area.
Figure 6 (please see link at the end of this announcement) shows the Bananghilig regional surface geology map and corss-section line 10710N.
Figure 7 (please see link at the end of this announcement) shows the Bananghilig Deposit cross section through line 10710N.
USA PROJECT
Background
The Usa prospect (Figure 8, please see link at the end of this announcement) is predominantly contained within Mineral Production Sharing Agreement application ("APSA") XIII-00077. The Company has a Memorandum of Agreement with Corplex Resources Inc. ("Corplex").
The tenement is being progressed to granting.
ANOLING
The Mines Operating Agreement ("MOA") with Alcorn Gold Resources Inc. covers Mining Production Sharing Agreement ("MPSA") application number 039-XIII situated approximately 8 kilometres north from the millsite as shown on Figure 2 (please see link at the end of this announcement). Granting of the Anoling MPSA is in progress.
Four drilling rigs are currently operating at Anoling to explore the vein system. Results from fifty drill holes drilled several years ago are available in the 2011 Annual Report.
An Induced Polarisation/Resistivity and ground magnetics were completed over the area.
SAUGON PROJECT
FIRST HIT VEIN
Background
Figure 2 (please see link at the end of this announcement) shows the Saugon Project located approximately 28 kilometres by road from the Co-O Mill. Work in 2004 involved drilling at the First Hit Vein (holes SDDH 1 to 35) in conjunction with underground development via a 30 metre deep inclined winze down the quartz vein-breccia to assist in understanding the mineralisation.
The 2004 drilling indicated a well developed central zone (First Hit Vein) with two possible splays partly developed as footwall and hanging wall zones. Further details are contained in the announcements dated 20 April 2010 and 1 December 2010.
Exploration
Drilling of 33 new drill holes totalling 13,410.40 metres (SDDH 69 to 101 inclusive) has been completed at and around the First Hit Vein. Drilling finished in the December 2011 quarter. A summary of results will be provided in the March quarterly report.
An Induced Polarisation/Resistivity and ground magnetics programme has recently been completed.
FINANCIALS
Medusa recorded a net profit after tax ("NPAT") of US$24.0 million and earnings before interest, tax depreciation and amortisation ("EBITDA") of US$28.4 million for the half year to 31 December 2011, compared to US$58.1 million and US$63.3 million respectively in the previous corresponding period.
The Company recorded Revenues of US$40.9 million compared to US$78.3 million in the previous corresponding period. Medusa is an un-hedged gold producer and received an average price of US$1,655 per ounce from the sale of 25,446 ounces of gold for the half-year to December 2011 (previous corresponding period: 48,883 ounces at US$1,291 per ounce).
The fall in NPAT, EBITDA and Revenues is directly linked to a significant drop in gold production (26,780 ounces compared to 51,127 ounces). The Co-O Mine has been pre-dominantly in development mode since July 2011 to prepare for the anticipated future production increase. All development ore has been treated through the mill and this increased amount of development ore is the primary reason for the lower grade recovered. A reduction in haulage capacity with the refurbishment of the Agsao Shaft has impacted on mill throughput and inclement weather experienced in late December 2011 contributed to lower than expected gold production.
As at 31 December 2011, the Company which is debt free, had total cash, cash equivalent in gold on metal account and bullion on hand of approximately US$80.2 million (Dec 2010: US$87.2 million).
During the half-year:
- The Company received proceeds of US$40.6 million from gold and silver sales and US$0.3 million from interest income (Dec 2010 half-year: gold and silver sales of US$63.3 million and interest of US$0.3 million);
- Depreciation and amortisation was lower at US$4.5 million, compared with US$5.2 million in the December half of 2010;
- US$15.9 million outlay on exploration expenditure, including US$8.3 million on the Co-O Mine (Dec 2010 half-year: US$12.0 million, including US$8.4 million for the Co-O Mine). The exploration budget for the 2011/12 fiscal year has been revised upwards by US$3 million to US$30 million;
- US$9.0 million was spent on sustaining capital at mine and mill and capital works associated with the new mill construction and infrastructure (Dec 2010 half-year: US$4.0 million); and
- Incurred US$14.7 million on general and accelerated mine development costs, inclusive of shaft sinking costs (Dec 2010 half-year: on general mine development only of US$5.2 million).
CORPORATE
Dividend
- A final un-franked dividend of A$0.05 per share was paid to shareholders on 30 September 2011. The total amount paid inclusive of associated costs was US$9.34 million;
- The Board approved the payment of an interim un-franked dividend of A$0.05 per share on 20 February 2012.
The relevant dates for the interim dividend are as follows:
Dividend Record Date : 09 March 2012 Ex-Dividend Date (on : 05 March 2012 ASX) Ex-Dividend Date (on : 07 March 2012 LSE) Dividend Payment Date : 23 March 2012
There is no foreign conduit income attributed to the dividend.
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results is based on information compiled by Mr Geoff Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Chairman of the Board of Medusa Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Davis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has been estimated and complied by Mr Mark Zammit of Cube Consulting Pty Ltd. Mr Zammit is a member of The Australasian Institute of Mining & Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Zammit consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Cube Consulting is an independent Perth based resource industry consulting firm specialising in geological modelling, resource estimation and information technology.
Carras Mining Pty Ltd
Information in this report relating to Ore Reserves is based on information compiled by Dr Spero Carras of Carras Mining Pty Ltd. Dr Carras is a Fellow of the Australasian Institute of Mining & Metallurgy and has 30 years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Dr Carras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Carras Mining is an independent Perth based resource industry consulting firm specialising in geological modelling and resource and reserve estimations.
DISCLAIMER
This report may contain certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.
Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Medusa, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements.
Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based.
You should not place undue reliance on forward-looking statements and neither Medusa nor any of its directors, employees, servants or agents assume any obligation to update such information.
LEAD AUDITOR'S INDEPENDENCE DECLARATION
The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 21 for the half-year ended 31 December 2011.
ROUNDING OF AMOUNTS
The Company has applied the relief available to it under Class Order 98/100 and accordingly, amounts in the financial report and directors' report have been rounded to the nearest $1,000.
This report is signed in accordance with a resolution of the Board of Directors.
PETER HEPBURN-BROWN
Managing Director
Dated this 21st day of February 2012.
GRANT THORNTON - AUDITOR'S INDEPENDENCE DECLARATION
Independent Auditor's Review Report
To the Members of Medusa Mining Limited
We have reviewed the accompanying half-year financial report of Medusa Mining Limited ("Company"), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year's end or from time to time during the half-year.
Directors' responsibility for the half-year financial report
The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's responsibility
Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Medusa Mining Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Medusa Mining Limited is not in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
P W Warr
Partner - Audit & Assurance
Perth, 21 February 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half-year ended 31 December 2011
Consolidated Group
------------------------
31 Dec 2011 31 Dec 2010
----------- -----------
Note US$ 000 US$ 000
----------- -----------
Revenue 2 40,908 78,303
Other income - 50
Cost of sales (10,663) (15,999)
Administration expenses (4,609) (2,151)
Other expenses (1,574) (2,121)
Profit before income tax expense 24,062 58,082
Income tax benefit (75) -
----------- -----------
Profit for the period after income
tax expense 23,987 58,082
----------- -----------
Other comprehensive income:
Exchange differences on translation of
foreign operations (net of tax) (2,323) 7,739
----------- -----------
Total comprehensive income 21,664 65,821
----------- -----------
Overall operations:
Basic earnings per share 0.127 $0.310
----------- -----------
Diluted earnings per share 0.127 $0.309
----------- -----------
The accompanying condensed notes form part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2011
Consolidated Group
----------------------
31 Dec 2011 30 June
2011
------------ --------
Note US$ 000 US$ 000
------------ --------
CURRENT ASSETS
Cash & cash equivalents 38,150 62,431
Trade & other receivables 60,572 57,112
Inventories 9,166 8,136
Other current assets 956 509
Total Current Assets 108,844 128,188
------------ --------
NON-CURRENT ASSETS
Property, plant & equipment 50,082 40,008
Exploration, evaluation and development
expenditure 143,292 116,382
Deferred tax assets 78 78
Total Non-Current Assets 193,452 156,468
------------ --------
TOTAL ASSETS 302,296 284,656
------------ --------
CURRENT LIABILITIES
Trade & other payables 10,962 7,704
Provisions 598 567
------------ --------
Total Current Liabilities 11,560 8,271
------------ --------
NON-CURRENT LIABILITIES
Provisions 342 239
Deferred tax liability 257 257
------------ --------
Total Non-Current Liabilities 599 496
------------ --------
TOTAL LIABILITIES 12,159 8,767
------------ --------
NET ASSETS 290,137 275,889
------------ --------
EQUITY
Issued capital 5 73,070 71,990
Reserves 13,398 14,879
Retained profits 203,669 189,020
------------ --------
TOTAL SHAREHOLDERS' EQUITY 290,137 275,889
------------ --------
The accompanying condensed notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half-year ended 31 December 2011
Other Foreign
Share Reserves Currency
Capital Retained (refer Translation
Ordinary Profits note 6) Reserve Total
---------- --------- ---------- ------------- --------
US$ 000 US$ 000 US$ 000 US$ 000 US$ 000
---------- --------- ---------- ------------- --------
Balance at 01.07.2010 70,906 97,642 1,834 5,044 175,426
---------- --------- ---------- ------------- --------
Net profit after tax - 58,082 - - 58,082
Other comprehensive income - - - 7,739 7,739
---------- --------- ---------- ------------- --------
Total comprehensive income
for the period - 58,082 - 7,739 65,821
Shares issued during the
period 779 - - - 779
Share options recognised
during the period in accordance
with AASB 2 - share based
payments - - 59 - 59
Sub-total 71,685 155,724 1,893 12,783 242,085
Dividends paid or provided
for (refer note 3) - (9,472) - - (9,472)
---------- --------- ---------- ------------- --------
Balance at 31.12.2010 71,685 146,252 1,893 12,783 232,613
---------- --------- ---------- ------------- --------
Balance at 01.07.2011 71,990 189,020 1,689 13,190 275,889
---------- --------- ---------- ------------- --------
Net profit after tax - 23,987 - - 23,987
Other comprehensive income - - - (2,323) (2,323)
---------- --------- ---------- ------------- --------
Total comprehensive income
for the period - 23,987 - (2,323) 21,664
Shares issued during the
period 789 - - - 789
Transfer from Option Reserve 291 - (291) - -
Share options and performance
rights recognised during
the period in accordance
with AASB 2 - share based
payments - - 1,133 - 1,133
Sub-total 73,070 213,007 2,531 10,867 299,475
Dividends paid or provided
for (refer note 3) - (9,338) - - (9,338)
Balance at 31.12.2011 73,070 203,669 2,531 10,867 290,137
---------- --------- ---------- ------------- --------
The accompanying condensed notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half-year ended 31 December 2011
Consolidated Group
--------------------------
31 Dec 2011 31 Dec 2010
------------ ------------
US$ 000 US$ 000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 42,403 63,272
Payments to suppliers and employees (14,649) (18,878)
Interest received 285 321
Net cash provided by operating
activities 28,039 44,715
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of non-current assets (12,824) (3,950)
Payments for exploration expenditure
and tenements (16,725) (12,040)
Payments for development activities (14,493) (5,219)
Net cash (used in) investing activities (44,042) (21,209)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 789 779
Payments for dividends (9,338) (9,472)
------------ ------------
Net cash provided by/(used in)
financing activities (8,549) (8,693)
------------ ------------
Net increase / (decrease) in cash
held (24,552) 14,813
Cash at beginning of period 62,431 32,457
Exchange rate adjustments 164 1,979
------------ ------------
Cash at end of period 38,043 49,249
------------ ------------
The accompanying condensed notes form part of these financial statements
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
for the half-year ended 31 December 2011
Note 1: Basis of preparation
Medusa Mining Limited (the "Company") is a company domiciled in Australia.
The consolidated interim financial report of the Company as at and for the six months ended 31 December 2011 comprises the Company and its subsidiaries (together referred to as (the "Group") and the consolidated group's interests in associates and jointly controlled entities.
The consolidated annual financial report of the consolidated group as at and for the year ended 30 June 2011 is available on the company's website.
(a) Statement of compliance
These general purpose financial statements for the interim half-year reporting period ended 31 December 2011 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.
The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the Consolidated Group as at and for the year ended 30 June 2011.
This consolidated interim financial report was approved by the Board of Directors on 20 February 2012.
(b) Significant accounting policies
The accounting policies applied by the Consolidated Group in this consolidated interim financial report are the same as those applied by the Consolidated Group in its consolidated financial report as at and for the year ended 30 June 2011.
(c) Change in accounting policy
From 1 July 2011, the Company has adopted the following Standards for the reporting periods beginning on or after 1 July 2011: Amendments to AASB 134 Interim Financial Reporting
The amendments clarified certain disclosures relating to events and transactions that are significant to an understanding of changes in the Group's circumstances since the last annual financial statements. The Group's interim financial statements as of 31 December 2011 reflect these amended disclosure requirements, where applicable.
(d) Significant events and transactions
During the six months the Company experienced a fall in Revenues which is directly linked to a significant drop in gold production (26,780 ounces compared to 51,127 ounces). The Co-O mine has been predominantly in development mode since July 2011 to prepare for anticipated future production increase.
(e) Comparative figures
Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.
(f) Rounding of amounts
The Company has applied the relief available to it under Class Order 98/100 and accordingly, amounts in the financial report and directors' report have been rounded to the nearest $1,000
Note 2: Profit for the period
Consolidated Group
--------------------------
31 Dec 2011 31 Dec 2010
------------ ------------
US$ 000 US$ 000
------------ ------------
The following revenue and expense
items are relevant in explaining
the financial performance for the
interim period:
Revenue items:
Interest revenue 292 321
Gold and silver sales 40,603 77,978
Other 6 4
Expense items:
Depreciation 2,591 2,291
Amortisation 2,308 2,920
Employee benefits expense 5,511 2,880
Recognition of share based payments 1,132 59
Note 3: Dividends
Unfranked dividend of 5 cents a
share (2010: 5 cents a share, declared
on 6 October 2010 and paid on 8
November 2010) was declared on
29 August 2011 and paid on 30 September
2011. 9,338 9,472
Note 4: Segment Information
The Consolidated Group has identified its reportable operating segments based on the internal reports that are reviewed and used by the Managing Director (the chief operating decision maker) and his management team in assessing performance and in determining the allocation of resources.
The Group segments are structured as Mine, Exploration and Other. Currently the only operational mine is the Co-O mine.
Mining Exploration Other Total
US$ US$ 000 US$ US$ 000
000 000
-------- ------------ -------- --------
Segment Revenue and Result
6 months to December 2011:
Segment revenue 40,603 - 305 40,908
Segment result 28,807 (10) (4,810) 23,987
6 months to December 2010:
Segment revenue 77,978 - 375 78,353
Segment result 61,100 (5) (3,013) 58,082
Segment Assets and Liabilities
31 December 2011:
Segment assets 284,552 3,852 13,814 302,218
Reconciliation of segment
assets to group assets
add -
Deferred tax assets 78
--------
Total group assets 302,296
--------
Segment liabilities 5,769 1 6,132 11,902
Reconciliation of segment
liabilities to group liabilities
add -
Deferred tax liabilities 257
--------
Total group liabilities 12,159
--------
30 June 2011:
Segment assets 234,772 7,925 41,881 284,578
Reconciliation of segment
assets to group assets
add -
Deferred tax assets 78
--------
Total group assets 284,656
--------
Segment liabilities 7,182 4 1,324 8,510
Reconciliation of segment
liabilities to group liabilities
add -
Deferred tax liabilities 257
--------
Total group liabilities 8,767
--------
Consolidated Group
----------------------------------------------------
31 Dec 30 Jun 31 Dec 30 Jun
2011 2011 2011 2011
------------ ------------ -------- --------------
(shares) (shares) US$ 000 US$ 000
------------ ------------ -------- --------------
Note 5: Issued Capital
Ordinary shares on issue 188,903,911 188,233,911 73,070 71,990
------------ ------------ -------- --------------
Opening balance 188,233,911 187,529,911 71,990 70,906
add -
Shares issued during the
period 670,000 704,000 789 779
Transfer from option Reserve - - 291 305
------------ ------------ -------- --------------
188,903,911 188,233,911 73,070 71,990
------------ ------------ -------- --------------
Movement in ordinary shares
during the half-year:
- Balance at beginning
of the period 188,233,911 187,529,911 71,990 70,906
- Options converted to
ordinary shares at A$1.25
each (including bonus shares*) - 55,000 - 53
- Options converted to
ordinary shares at A$1.25
each (including bonus shares*) - 110,000 - 123
- Options converted to
ordinary shares at A$1.25
each (including bonus shares*) - 99,000 - 111
Options converted to ordinary
shares at A$1.25 each (including
bonus shares*) - 440,000 - 492
Options converted to ordinary
shares at A$1.25 each (including
bonus shares*) 594,000 - 668 -
Options converted to ordinary
shares at A$4.40 each. 10,000 - 45 -
Options converted to ordinary
shares at A$1.25 each (including
bonus shares*) 66,000 - 76 -
Transfer from options reserve - - 291 305
------------ ------------ -------- --------------
188,903,911 188,233,911 73,070 71,990
------------ ------------ -------- --------------
*Bonus shares were issued in accordance with an announcement to ASX on 8 March 2010 of one ordinary share for every 10 ordinary shares held.
The A$ issue price per share has been converted using the exchange rate applicable on the date the funds were received and rounded to four decimal places.
Consolidated Group
------------------------------------------
31 Dec 30 Jun 31 Dec 30 Jun
2011 2011 2011 2011
---------- ---------- -------- --------
(options) (options) US$ 000 US$ 000
---------- ---------- -------- --------
Note 6: Option and Performance
Rights Reserve
Option and Performance
Rights Reserve 965,000 750,000 2,531 1,689
---------- ---------- -------- --------
Opening balance 750,000 1,240,000 1,689 1,834
less -
Options exercised (610,000) (640,000) (291) (305)
Options cancelled - - -
add -
Options issued - exercisable - 150,000 - -
at A$4.40 each (refer below)
Options issued - exercisable 575,000 - - -
at A$8.10 each
Performance Rights Issued 250,000 - - -
(Refer Note 9)
Share options and performance
rights recognised during
the period in accordance
with AASB 2 - share based
payments - - 1,133 160
---------- ---------- -------- --------
965,000 750,000 2,531 1,689
---------- ---------- -------- --------
Note 7: Contingent Liabilities
There have been no developments in the period since the annual report.
Note 8: Commitments
There has been no change to the commitments as disclosed in the Group's 30 June 2011 annual report.
Note 9: Related Parties
At the Annual General Meeting held on 10 November 2011shareholders approved the issue of 250,000 Performance Rights to the Managing Director Peter Hepburn-Brown in accordance with the terms and conditions as set out in the Explanatory Memorandum provided to shareholders.
Aside from the above arrangements with related parties continue to be in place. For details on these arrangements, refer to the Company's annual report for the year ended 30 June 2011.
Note 10: Events subsequent to reporting date
On 3 January 2012 the Board approved the issue of 1 million options to selected Filipino employees. The issue of the options will be at the discretion of the Managing Director at an exercise price of A$5.10.
On 21 February 2012 the directors declared an unfranked interim dividend of A$0.05 per share to the holders of fully paid ordinary shares. The relevant date for the interim dividend is a Dividend Record Date of 9 March 2012 and a Dividend Payment Date of 23 March 2012. This dividend has not been included as a liability in these financial statements.
Other than the matter described above, there has not arisen in the interval between the half-year ended 31 December 2011 and the date of this report any other item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Consolidated Group, the results of those operations, or the state of affairs of the Consolidated Group, in subsequent financial periods.
DIRECTORS' DECLARATION
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 22 to 31:
(a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations; and
(b) give a true and fair view of the Consolidated Group's financial position as at 31 December 2011 and of its performance for the half year ended on that date.
2. In the Directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter Hepburn-Brown
Managing Director
Dated this 21 day of February 2012
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF MEDUSA MINING LIMITED
We have reviewed the accompanying half-year financial report of Medusa Mining Limited ("Company"), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year's end or from time to time during the half-year.
Directors' responsibility for the half-year financial report
The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's responsibility
Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Medusa Mining Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Medusa Mining Limited is not in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
P W Warr
Partner - Audit & Assurance
Perth, 21 February 2012
A copy of this report has been filed with the National Storage Mechanism and will be available for inspection shortly at www.hemscott.com/nsm.do.
To view the Figures and Graphs, please click on or paste the following link in your browser:
http://www.rns-pdf.londonstockexchange.com/rns/7624X_-2012-2-20.pdf
Contacts:
Australia Medusa Mining Limited Geoffrey Davis, Chairman Peter Hepburn-Brown, Managing Director +61 8 9367 0601 United Kingdom Fairfax I.S. PLC Financial Adviser and Broker Ewan Leggat/Laura Littley +44 (0)20 7598 5368
This information is provided by RNS
The company news service from the London Stock Exchange
END
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