TIDMMML
RNS Number : 0352B
Medusa Mining Limited
27 February 2014
MEDUSA MINING LIMITED
("Medusa" or the "Company")
ABN 60 099 377 849
and Controlled Entities
HALF-YEAR FINANCIAL REPORT
31 DECEMBER 2013
This report should be read in conjunction with Medusa's Annual
Report for the year ended 30 June 2013 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 2013
Name of entity
MEDUSA MINING LIMITED
--------------------------
ABN or equivalent Half yearly Preliminary Half year/ financial ended
company reference (tick) final ("current period")
(tick)
60 099 377 31 December 2013
849
------------------ ----------- ----------- --------------------------
Results for announcement to the market
Revenues and profits: US$'000 US$'000
Down
Revenues from ordinary activities 35% 52,363 to 33,998
Profit from ordinary activities Down
after tax attributable to members 55% 28,598 to 13,020
Net profit for the period attributable Down
to members 55% 28,598 to 13,020
(All comparisons to the previous period ended
31 December 2012)
-----------------------------------------------------------------------------------------------
Dividends:
Interim dividend Amount per Franked amount
security per security
Nil Nil
* current period (half year ended 31 Dec 2013) Nil Nil
* previous period (half year ended 31 Dec 2012)
No dividend will be paid in the current period.
Net tangible assets per share:
The net tangible assets per share as at 31
Dec 2013 was US$2.006 (31 Dec 2012: US$ 1.854)
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
For the half year ended 31 December 2013, I am pleased to report
that the mill is in the final phase of commissioning and that
mining operations are able to meet the increased throughput
requirements for the ensuing periods ahead.
The six month period to 31 December 2013 proved challenging to
get the new Co-O SAG Mill fully operational. The start-up of the
new mill was delayed due to the installation of faulty powercells
which were repaired and re-installed in early December. The SAG
mill operated for the rest of December without any interruptions
and is currently running at approximately 2,000 tonnes per day.
The detoxification circuit, thickener, CIL tanks, gold room and
associated equipment for "wet" processing are all fully
operational. Planning for additional tailings storage facilities is
completed and construction is planned to commence after the wet
season in the March 2014 quarter.
Complementary infrastructure construction completed includes a
new junior staff accommodation, assay laboratory and metallurgy
offices.
At the Co-O Mine, the L8 Shaft is pulling ore and waste from
Level 8 (350 metres below surface). Rock passes from Levels 6 and 7
to Level 8 are operating and allow ore and waste from these levels
to be hoisted from Level 8. Level development continued on Level 8
and all veins in the resource model were intersected and are being
developed. The Don Pedro veins near the L8 Shaft are being
developed and stoped while development continues on Levels 1 to 7
concurrent with production stoping.
The Baguio Shaft has been deepened to Level 5 to access
additional ore on the west side of the mine and to reduce double
handling.
The Bananghilig area has continued to progress well with
drilling re-commenced between the Bananghilig Deposit and the B2
discovery with the view of combining the two areas. Sterilisation
and geotechnical drilling and associated technical work were
completed.
The extreme wet weather during December 2013 and January 2014
caused damage to the haul road between the mine and mill. A works
program is in place to repair the haul road after the wet season as
well as to develop alternative road access.
There were no Lost Time Incidents between July and December
2013, however as advised to the market on 13 February 2014,
regretfully a fatality happened in a stope underground. The Lost
Time Incidents Frequency Rate ("LTIFR") for the past 4 years to 31
December 2013 stands at 0.10 compared to the Western Australian
LTIFR for the mining industry of 2.0 for 2012-13.
The Company has provided rescue and relief efforts in response
to natural disasters that struck the Philippines last calendar
year. The Co-O Mine Rescue Team provided rescue aid to the Bohol
earthquake victims and relief support to the local communities on
the island of Leyte after the devastation caused by Typhoon Haiyan
(Yolanda).
The company continues to support the local communities through
employment, (99% Filipino workforce), education (scholarships,
school expenditure and adopt-a-school supporting over 5,500
students), health and essential infrastructure.
DIRECTORS' REPORT
The Directors present their report together with the
consolidated financial report for the half-year ended 31 December
2013 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 Andrew Boon San Teo (Non-Executive since 15 February 2010
Chairman) (1) since 01 July 2006
Dr Robert M Weinberg since 28 June 2011
Mr Ciceron A Angeles since 24 January 2013
Mr Gary Powell retired 22 November 2013
Mr Geoffrey J Davis (2)
Executives:
Mr Peter Hepburn-Brown (Managing since 15 September 2009
Director) since 24 January 2013
Mr Raul C Villanueva
Notes:
(1) Mr Teo was appointed Non-Executive Chairman
on 22 Nov 2013
(2) Mr Davis was Non-Executive Chairman from 09
Jun 2011 to 22 Nov 2013. Prior to that Mr Davis
was Managing Director from 05 Feb 2002 to 09 Jun
2011
HIGHLIGHTS FOR THE SIX MONTHS:
Financials
Description Unit Dec 2013 Dec 2012 Variance (%)
$34.0 $52.4 ($18.4
Revenues US$ M M M) (35%)
$19.4 $35.3 ($15.9
EBITDA US$ M M M) (45%)
$13.0 $28.6 ($15.6
NPAT US$ M M M) (55%)
EPS (basic) US$ $0.067 $0.152 ($0.085) (56%)
Revenues of US$34.0 million compared to US$52.4 million for the
corresponding period in the previous year, a decrease of 35% due to
a decrease in both gold production and a lower average price
received on sale of gold. Medusa is an un-hedged gold producer and
received an average gold price of US$1,304 per ounce from the sale
of 27,334 ounces of gold for the half-year to December 2013
(corresponding period to December 2012: 43,492 ounces at US$1,676
per ounce).
Earnings before interest, tax, depreciation and amortisation
("EBITDA") of US$19.4 million, (US$35.3 million in the prior
corresponding period), a decrease of 45%.
Earnings per share ("EPS") of US$0.067 on a weighted average
basis is based on NPAT of US$13.0 million (six months to December
2012: EPS of US$0.152 based on NPAT of US$28.6 million), a decrease
of 56%.
The Company had total cash, cash equivalent in gold on metal
account and bullion on hand of US$20.8 million at 31 December 2013
(corresponding period to 31 December 2012: US$15.8 million), an
increase of 32%.
Dividends
No dividend will be payable for the half year to 31 December
2013 (No dividend was payable for the previous half year to 31
December 2012).
Operations
Description Unit Dec 2013 Dec 2012 Variance (%)
Production ounces 26,089 32,580 (6,491) (20%)
Cash costs US$/oz $422 $300 ($122) (41%)
Gold price
received US$/oz $1,304 $1,676 ($372) (22%)
The Company produced 26,089 ounces of gold for the half-year,
compared to 32,580 ounces from the previous corresponding period,
at an average recovered grade of 5.07 g/t gold (six months to
December 2012: 7.82 g/t gold).
Average cash cost for the half-year of US$422 per ounce, was
higher than the previous corresponding period's costs of US$300 per
ounce due to delayed new mill commissioning and previously
highlighted operational issues with the old plant.
Production Guidance
The revised forecast gold production for the fiscal year to 30
June 2014 after taking into account current year to date production
of 26,089 is now between 70,000 to 80,000 ounces at anticipated
cash costs of US$400 per ounce.
The production guidance for FY 2015 is between 140,000 to
160,000 ounces and from FY 2016 onwards, 160,000 to 200,000 ounces
per annum.
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).
EXECUTIVE ORDER ON MINING SECTOR REFORMS IN THE PHILIPPINES
On 06 July 2012, Philippine President Benigno Aquino III signed
Executive Order No. 79 entitled "Institutionalizing and
Implementing Reforms in the Philippine Mining Sector Providing
Policies and Guidelines to Ensure Environmental Protection and
Responsible Mining in the Utilization of Mineral Resources" ("EO
79").
On 10 September 2012, the Department of Environment and Natural
Resources ("DENR") issued Administrative Order No. 2012-07 ("Rules
and Regulations to Implement EO-79" or "EO-79 IRR"), and on 08
October 2012, issued Administrative Order No. 2012-07-A2 ("EO-79
Amended IRR") to revise Sections 3, 7 and 9 of EO-79 IRR. EO-79 IRR
and its amendments took effect on October 25, 2012.
The implications of the EO-79 with regards to the Company's
projects are discussed in the June 2012 and September 2012
quarterly reports to the ASX. There has been no change in the
Company's view since then.
On 07 March, 2013, the Secretary of the Department of
Environment and Natural Resources (DENR) approved the lifting of
the moratorium on acceptance of applications for Exploration
Permits and Financial and Technical Assistance Agreements.
The new legislation on mining taxes and royalties is yet to be
finalised for submission to Congress.
EXECUTIVE ORDER ON EXTRACTIVE INDUSTRIES TRANSPARENCY IN THE
PHILIPPINES
On 26 November 2013, Philippine President Benigno Aquino III
signed Executive Order No. 147 entitled "Creating the Philippine
Extractive industries transparency Initiative" ("EO 147").
Pursuant to Section 14 of the EO 79, the Philippine government
commits to participate in the Extractive Industries Transparency
Initiative ("EITI") that sets international standards for
transparency and accountability in the extractive industries and in
government. Established in 2003, the EITI is a global coalition of
governments, companies and civil society collaborating to improve
honest and responsible management of revenues from natural
resources, particularly oil, gas, metals and minerals.
Through EO 147, the Philippine government has instituted the
Philippine Extractive Industries Transparency Initiative
("PH-EITI"), which commits to ensure greater transparency and
accountability in the extractive industries, specifically in the
way the government collects, and companies pay taxes from
extractive industries;
The implications of the EO 147 with regards to the Company's
projects are not considered to have any negative impact and the
Company sees the Executive Order as a positive commitment by the
Philippine Government to adopt good governance practices in
accordance with International Guidelines of the EITI.
MINERAL RESOURCES AND ORE RESERVES
The Company's current mineral resources (including the Saugon
resource) and ore reserves were previously announced in accordance
with the guidelines of the JORC Code 2004 (Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves). Refer to announcement of 08 August 2013, the September
2013 Quarterly Report, and the 2013 Annual Report.
The Co-O and Bananghilig deposits are currently undergoing
review, interpretations and revised mineral resource and ore
reserve estimations in accordance with the guidelines of the
recently adopted JORC Code 2012. Since there may be material
changes to the mineral resources and ore reserves, due to changes
in gold price, mining dilution and so forth, the Company will not
be reporting the resources and reserves until the revised
estimations have been completed and signed off by the independent
Competent Persons. The revised resources and reserves for Co-O and
Bananghilig are expected to be reported during the September 2014
quarter.
GOLD PRODUCTION
The production statistics for the six months to 31 December 2013
with comparatives for the December 2012 half year are summarised in
Table I.
Table I. Gold production statistics
Description Unit Half-year Half-year Variance (%)
ended ended
31 Dec 31 Dec
2013 2012
Tonnes mined WMT 222,644 160,095 62,549 39%
Ore milled DMT 190,051 143,808 46,243 32%
Recovered grade gpt 5.07 7.82 (2.75) (35%)
Recovery % 86% 90% (4%) (4%)
Gold produced ounces 26,089 32,580 (6,491) (20%)
Cash costs
(1) US$ $422 $300 ($122) (41%)
Gold sold ounces 27,334 43,492 (16,158) (37%)
Average gold
price received US$ $1,304 $1,676 ($372) (22%)
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 2013 was
26,089 ounces of gold at an average grade of 5.07 g/t gold was
lower than last year's production of 32,580 ounces of gold at
recovered grades averaging 7.82 g/t gold.
The average cash costs of US$422 per ounce, inclusive of
royalties and local business taxes are higher than the previous
period's average cash costs of US$300 per ounce.
Medusa, an un-hedged gold producer, sold 27,334 ounces of gold
at an average price of US$1,304 per ounce during the period
(corresponding period last year 43,492 at average price received of
US$1,676 per ounce).
The revised production guidance for the fiscal year to 30 June
2014, following production of 26,089 ounces of gold for the half
year to December 2013 is now between 70,000 to 80,000 ounces at
anticipated cash costs of US$400 per ounce.
The production guidance for FY 2015 is 140,000 to 160,000 ounces
and from FY 2016 onwards is 160,000 to 200,000 ounces per
annum.
Co-O MINE and MILL
Co-O Mine
Mine development and expansion achievements include:
-- The L8 Shaft is operating at 1,500 tonne per day. (Photo 1)
hauling from Level 8 (350 metres below surface). The current mine
combined shaft haulage capacity is now 2,500 tonnes per day from
the L8, Baguio, Agsao and Ventilation Shafts;
-- The rock-passes from Levels 6 and 7 to Level 8 have been
completed allowing broken material to move from both Levels to the
L8 haulage shaft;
-- The upgrade to the Baguio Shaft has been completed allowing
material to be hauled from Level 5, thus opening up new mining
areas in the western side of the mine;
-- Development is progressing at 1,500 metres per month and will
continue at approximately 1,500 metres per month for the
foreseeable future, resulting in a continuing high percentage of
development ore in the mill feed, and;
-- A winze is being sunk from Level 8 to Level 9 to expose and
gain access to the ore on Level 9.
Please see the link at the end of this announcement to view
Photo 1: L8 Shaft and stockpile area.
Co-O Mill
The new SAG Mill commenced operation on the 6(th) December 2013.
The delay in starting the SAG Mill was due to manufacturing defects
in the Powercells, which were repaired and re-installed. Production
for FY 2014 has been revised to 70,000 to 80,000 ounces and 140,000
to 160,000 ounces in FY 2015.
Please see the link at the end of this announcement to view:
-- Photo 2: SAG Mill
-- Photo 3: Primary Crusher
Tailings Storage
Planning and design for tailings storage facility number 5 has
been completed with construction planned when the "Wet" season
finishes.
Health and Safety
Lost time incident frequency rate (LTIFR) for the six months to
31 December 2014 is 0.1 including exploration. There were no
breaches of any of the project's operating regulations during the
period.
Co-O RESOURCE DRILLING
Diamond drilling has continued since the last resource model
update was announced on 08 August 2013 and has focused on extending
the Co-O Vein system along the eastern and western sides of the
resource model. Since the 2013 resource estimation, 41 underground
drill holes totalling 11,412 have been completed using two large
and two smaller portable diamond drilling rigs.
The Company has recently purchased six additional portable
underground diamond drill rigs to be deployed at various levels
within the mine to assist in exploring for zones of additional
mineralisation.
Table II. Co-O surface and underground drill hole results of
>= 0.5 metres at >= 3g/t gold
(Refer Appendix A for JORC Code 2012 Edition)
Hole East North RL Depth Dip Azimuth From Width Gold
Number (4) (4) (4) (metres) ((o) ((o) (metres) (2) Grade
) ) (metres) (1,3)
(uncut)
(g/t
gold)
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
UNDERGROUND EXLORATION DRILL HOLES - LEVEL 3
-------------------------------------------------------------------------------------------------------------
L3-64W-005 613338.9 913032.8 61.4 194.7 +3 317 167.20 0.40 16.57
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L3-64W-008 613339.3 913027.7 59.8 503.3 -60 219 42.75 1.50 4.45
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L3-64W-010 613348.2 913026.6 60.5 492.0 -25 124 335.60 1.10 20.30
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L3-64W-011 613341.2 913031.9 61.4 255.4 +3 331 223.65 0.90 3.47
---------- ---------- ---------
241.65 1.00 3.20
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L3-64W-012 613343.1 913032.7 61.4 256.8 +3 013 65.50 1.40 5.19
---------- ---------- ---------
L3-64W-014 613344.3 913032.9 61.3 327.4 +3 020 74.50 2.20 3.70
---------- ---------- ---------
UNDERGROUND EXLORATION DRILL HOLES - LEVEL 8
-------------------------------------------------------------------------------------------------------------
L8-19E-001 614207.3 913105.2 -192.0 487.1 +3 247 62.85 1.00 5.88
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-002 614275.5 912915.7 -190.8 403.4 0 047 2.00 0.75 3.49
---------- ---------- ---------
61.95 0.55 6.45
---------- ---------- ---------
175.10 0.50 5.70
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-003 614276.4 912912.9 -190.6 393.4 0 057 60.15 1.00 5.27
---------- ---------- ---------
86.60 0.50 8.90
---------- ---------- ---------
100.50 1.10 6.48
---------- ---------- ---------
168.20 2.80 16.88
includes 169.20 0.80 26.47
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-004 614270.0 912909.8 -190.7 115.6 +3 219 53.65 2.20 19.45
---------- ---------- ---------
includes 53.65 1.00 23.60
97.80 1.00 5.77
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-005 614270.6 912908.6 -190.7 475.9 +3 213 47.65 0.60 14.57
---------- ---------- ---------
55.00 0.90 16.60
---------- ---------- ---------
87.50 1.00 5.62
---------- ---------- ---------
108.70 0.90 14.52
---------- ---------- ---------
156.60 1.00 20.43
---------- ---------- ---------
180.35 1.15 30.27
---------- ---------- ---------
181.50 0.90 34.90
---------- ---------- ---------
183.40 0.60 57.83
---------- ---------- ---------
185.75 1.00 5.31
---------- ---------- ---------
192.95 1.00 5.22
---------- ---------- ---------
203.35 1.00 5.91
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-006 614270.6 912908.6 -190.6 411.9 +3 068 16.50 1.00 3.00
---------- ---------- ---------
54.10 0.90 3.67
---------- ---------- ---------
90.70 1.65 4.17
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-007 614276.1 912909.8 -190.6 464.3 +3 116 0.40 0.90 6.70
---------- ---------- ---------
92.40 0.60 6.20
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-008 614274.0 912908.3 -190.6 473.4 +3 174 57.80 0.65 47.77
---------- ---------- ---------
85.95 1.00 4.60
---------- ---------- ---------
169.30 1.20 5.30
---------- ---------- ---------
203.80 0.50 3.78
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-009 614276.3 912912.8 -190.6 452.2 +3 093 80.65 0.85 16.77
---------- ---------- ---------
186.60 5.80 5.62
---------- ---------- ---------
236.55 1.00 78.50
---------- ---------- ---------
326.60 0.40 5.33
---------- ---------- ---------
338.25 4.15 16.51
includes 340.40 1.00 43.77
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
L8-29E-010 614274.0 912908.3 -190.7 474.3 +3 142 194.50 1.00 13.53
---------- ---------- ---------
292.00 1.70 40.50
includes 292.00 0.75 73.73
------------ --------- --------- ------- ---------- ------ --------- ---------- ---------- ---------
Notes:
1. Composited intercepts' 'weighted average grades' calculated
by using the following parameters:
(i) no upper gold grade cut-off applied;
(ii) lower cut-off grade of 3.0 g/t gold,
(iii) high-grade samples (>20g/t gold) within composited
interval are individually reported ;and
(iv) >= 0.5 metres down hole intercept width at >= 3.0 g/t
gold, or
(v) >= 6 gram.metres.
(vi) maximum of 1.0 metre of down-hole internal dilution at ,
3g/t gold
2. Intersection widths are downhole drill widths not true
widths;
3. Assays are by Philsaga Mining Corporation's laboratory;
and
4. Grid coordinates based on the Philippine Reference System
92.RL is elevation in metres relative to Mine Datum
Co-O EXPLORATION
IP Survey
The ground Induced Polarisation ("IP") and Resistivity ("RES")
survey is ongoing within the Co-O tenements including the Co-O mine
environs. During the six months to December 2013, approximately 127
line kilometres of IP and RES surveys were completed. Heavy rain
has hampered the survey and it is now expected that the balance (of
approximately104 line kilometres) will be completed in the June
2014 quarter, with interpretations undertaken during the June and
September 2014 quarters.
Ground Magnetics Survey
A Ground Magnetics survey is ongoing, using the same grid as the
IP survey. A total of approximately 162 line kilometres were
completed during the six months to December 2013. Approximately 94
line kilometres remains to be surveyed, and are expected to be
completed and interpreted concurrent with the IP
interpretation.
Reconnaissance Programmes
Reconnaissance mapping and sampling programmes are ongoing.
TAMBIS REGION
BACKGROUND
The Tambis Project, which includes the Bananghilig Gold Deposit
as shown on (Fig. 2), 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 Executive Order on Mining (EO 79) signed on 6 July 2012, by
the President of the Philippines, will have no immediate impact on
the Bananghilig Project as the Company can continue to explore,
conduct feasibility studies and planning.
REGIONAL GEOLOGICAL SETTING
The announcement of 12 September 2011 summarises the Tambis
regional geological setting, local geological setting, deposit
description and mineralisation.
BANANGHILIG GOLD DEPOSIT
Additional information with respect to the Bananghilig gold
deposit is contained in the September 2011 quarterly report dated
24 October 2011, drilling updates on 17 January 2012, 8 August
2012, 21 November 2012, and 02 April 2013, operations update on 08
July 2013, and resource estimation updates on 29 January 2013 and
08 August 2013.
Indicated & Inferred Mineral Resource Estimation
The Bananghilig resource was previously announced in accordance
with the guidelines of the JORC Code 2004 (Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves). Refer to announcement of 08 August 2013, the September
2013 Quarterly Report, and the 2013 Annual Report.
The Bananghilig deposit is currently undergoing review,
re-interpretation and revised mineral resource and estimation in
accordance with the guidelines of the recently adopted JORC Code
2012. Consequently the project's revised mineral resources are
expected to be completed by the independent consultants and
reported during the September 2014 quarter.
Bananghilig Scoping & Pre-Feasibility Study*
On 09 April 2013, the Company published the results of a first
pass Scoping Study(1) of the Bananghilig Gold Deposit. The Scoping
Study was carried out and reported under the guidelines of the JORC
Code 2004, therefore the results of the Scoping Study do not now
necessarily comply with the requirements of the JORC Code 2012 and
will not be reported henceforth.
*The Scoping Study referred to in the announcement dated 9 April
2013 was based on low-level technical and economic assessments of
Indicated and Inferred Mineral Resources, as defined under the
guidelines of JORC Code 2004, and is insufficient to support
estimation of Ore Reserves or to provide assurance of an economic
development case at this stage, or to provide certainty that the
conclusions of the Scoping Study will be realised.
A Feasibility Study was initiated on the completion of the
Scoping Study. Sterilisation and geotechnical drilling programmes
were completed in early October 2013.
A decision was made towards the end of the September quarter to
temporarily suspend the feasibility study given the mineralisation
being encountered at the new B2 discovery area, as well as given
consideration to the depressed gold price and commissioning of the
new Co-O milling circuit.
Figure 3 (please see link at the end of this announcement) showd
the Tambis Project geology showing location of Bananghilig resource
relative to the B2 mineralisation discovery area & other
prospect areas.
Figure 4 (please see link at the end of this announcement) shows
the drill hole projection plan of the B2 drill holes relative to
the Bananghilig 2013 resource model.
BANANGHILIG EXPLORATION
B2 Discovery Area
During the September 2013 quarter, two large capacity diamond
drilling rigs completed two diamond drill holes (TDH332 and TDH334)
within the B2 area for a total advance of 622.6 metres.
Figure 3 shows the Bananghilig area geology and the position of
the B2 discovery, beneath limestone cover relative to the
Bananghilig resource.
B2 Drilling Results
Results of diamond drilling at B2 were announced on 2 April 2013
and 8 July 2013, in the March 2013, June 2013 and September 2013
Quarterly Reports, and the September 2013 Annual Report. Results
have subsequently been received for all outstanding sample
submissions as well as for the holes completed during this quarter.
Significant intercepts for completed drill holes are shown in Table
III below.
Geotechnical and Sterilisation Drilling Programmes
Geotechnical drilling and test pitting programmes were completed
in first week of October with one last diamond drill hole completed
for a total of 60 metres. Drilling was carried out to investigate
sites suitable for infrastructure associated with the potential
development of the Bananghilig Deposit, including plant site,
waste, tailings and process water storage facilities. A
sterilisation drilling programme was successfully completed with no
significant drill hole assay results received in these areas.
Regional Exploration
Reconnaissance mapping and sampling is on-going within the
Tambis Region.
Table III. Bananghilig B2 Discovery Area drill hole results
>= 1 g/t gold.
(Refer Appendix A for JORC Code 2012 Edition)
Hole East North RL Depth Dip Azimuth From Width Gold
Number (4) (4) (4) (metres) ((o) ((o) (metres) (2) Grade
) ) (metres) (1,3)
(g/t
gold)
---------- ---------- -------
BANANGHILIG - B2 DISCOVERY AREA
TDH308 613278 945405 156.0 359.10 -60 130 84.10 3.50 1.02
---------- ---------- -------
245.45 5.00 2.88
includes 246.65 1.00 11.25
---------- ---------- -------
312.10 7.30 3.23
includes 315.45 0.35 38.08
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH310 613435 944948 143.7 309.50 -60 130 198.65 13.45 1.38
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH313 613331 945128 178.9 302.13 -60 130 116.15 8.90 1.17
---------- ---------- -------
226.20 5.95 5.54
includes 231.05 1.10 25.90
---------- ---------- -------
237.95 16.40 2.04
---------- ---------- -------
286.35 12.00 1.33
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH314 613745 945277 116.9 312.63 -60 130 65.75 1.00 18.58
---------- ---------- -------
140.50 1.50 4.21
---------- ---------- -------
168.85 6.70 1.22
---------- ---------- -------
255.45 3.25 3.89
---------- ---------- -------
282.60 2.30 2.70
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH316 613537 945355 128.8 303.15 -60 130 186.45 3.50 2.37
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH317 613681 944841 170.1 302.10 -60 130 137.10 3.60 1.86
---------- ---------- -------
162.05 4.55 2.71
---------- ---------- -------
170.35 8.05 3.17
includes 176.10 0.70 11.28
---------- ---------- -------
262.25 21.55 2.34
includes 277.05 0.55 18.39
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH321 613616 945073 117.7 297.65 -59 130 115.85 20.70 2.26
includes 125.60 1.00 29.48
---------- ---------- -------
151.55 4.25 1.78
---------- ---------- -------
179.20 6.90 2.47
includes 185.10 1.00 10.03
---------- ---------- -------
246.65 2.25 5.87
includes 248.55 0.35 17.36
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH322 613591 945089 111.3 300.62 -61 130 198.60 6.65 1.24
---------- ---------- -------
211.25 1.75 2.88
---------- ---------- -------
235.60 6.30 1.14
---------- ---------- -------
248.30 11.35 3.18
includes 249.50 1.00 12.62
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH323 613631 945114 118.8 307.60 -60 130 116.00 3.85 1.40
---------- ---------- -------
159.30 12.45 2.98
includes 170.40 1.35 10.44
---------- ---------- -------
197.75 13.85 1.41
includes 197.75 0.45 13.51
---------- ---------- -------
215.40 11.80 1.23
---------- ---------- -------
245.10 8.10 1.55
includes 246.85 0.65 12.31
---------- ---------- -------
262.20 3.65 1.76
---------- ---------- -------
272.05 7.20 1.34
---------- ---------- -------
303.20 2.45 2.22
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH325 613575 944927 199.1 300.55 -60 130 135.15 8.55 1.27
includes 225.55 13.40 2.73
---------- ---------- -------
228.65 0.90 21.69
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
TDH326 613583 945050 130.0 304.40 -60 130 108.30 2.75 4.86
includes 108.30 1.00 10.12
---------- ---------- -------
114.25 5.70 2.42
includes 117.95 1.00 10.48
---------- ---------- -------
169.30 4.40 1.71
---------- ---------- -------
181.35 8.65 1.29
---------- ---------- -------
228.95 7.75 1.24
---------- ---------- -------
248.10 4.75 4.34
includes 248.10 1.00 14.06
---------- ---------- -------
279.10 8.70 2.79
includes 280.10 0.55 10.44
--------- ------- ------- ------ ---------- ------ ---------- ---------- ---------- -------
Hole East North RL Depth Dip Azimuth From Width Gold
Number (4) (4) (4) (metres) ((o) ((o) (metres) (2) Grade
) ) (metres) (1,3)
(g/t
gold)
---------- ---------- -------
BANANGHILIG - B2 DISCOVERY AREA
TDH327 613577 945103 112.6 303.60 -64 130 216.10 0.35 34.80
---------- ---------- -------
TDH328 613241.7 945191.7 214.6 312.50 -60 130 260.20 1.45 8.82
---------- ---------- -------
289.20 15.60 1.51
--------- --------- --------- ------ ---------- ------ --------- ---------- ---------- -------
TDH330 613626.8 945064.5 123.7 294.50 -56 130 154.85 16.50 3.78
includes 159.05 0.55 40.64
includes 161.05 0.75 16.71
---------- ---------- -------
197.85 5.80 0.93
--------- --------- --------- ------ ---------- ------ --------- ---------- ---------- -------
TDH332 613554.7 945020.3 142.1 320.50 -60 130 170.35 7.00 7.27
includes 174.70 1.00 45.49
---------- ---------- -------
236.30 0.70 22.40
---------- ---------- -------
254.50 7.55 5.79
includes 254.50 1.00 21.90
includes 259.70 1.00 14.69
--------- --------- --------- ------ ---------- ------ --------- ---------- ---------- -------
TDH334 613001.7 944955.1 147.5 302.10 -60 130 80.30 9.50 2.77
---------- ---------- -------
200.15 6.85 1.26
--------- --------- --------- ------ ---------- ------ --------- ---------- ---------- -------
Notes:
1. Composited intercepts' 'weighted average grades' calculated
by using the following parameters:
(i) no upper gold grade cut-off applied;
(ii) lower cut-off grade of 0.5 g/t gold;
(iii) high-grade samples (>10 g/t gold) within composited
interval are individually reported;
(iv) >= 5 metres down hole intercept width at >= 1.0 g/t
gold, or
(v) <= 5 metres down hole intercept width at >= 5 gram per
metres, and
(vi) maximum of 3 metres of downhole internal dilution at
<=0.5 g/t gold;
2. Intersection widths are downhole drill widths not true
widths;
3. Assays are by Intertek McPhar Mineral Services Inc. in
Manila; and
4. Grid coordinates and RL (elevation) based on the Philippine
Reference System 92.
LINGIG
The Lingig prospect is located in Mineral Production Sharing
Agreement 343-2010-XIII with an area of 3,824 hectares over which
the Company has an operating agreement.
Activities completed include Induced Polarisation, Resistivity
and ground magnetics surveys, Data processing and interpretation of
the geophysical data by an independent geophysical consultant and
detailed geological mapping.
Data compilation from the mapping, soil sampling, and
geophysical surveys will commence during the March 2014 quarter.
Interpretations will be reviewed prior to planning drill
targets.
USA PROJECT
A Memorandum of Agreement with Corplex Resources Inc. covers the
Usa prospect, which is located within MPSA application XIII-00077.
Processing of the tenement application is progressing.
SAUGON PROJECT
Detailed and reconnaissance geological mapping, trenching and
sampling programmes are on-going.
FINANCIALS
Medusa recorded a net profit after tax ("NPAT") of US$13.0
million and earnings before interest, tax depreciation and
amortisation ("EBITDA") of US$19.4 million for the half year to 31
December 2013, compared to US$28.6 million and US$35.3 million
respectively in the previous corresponding period.
The Company recorded Revenues of US$34.0 million compared to
US$52.4 million in the previous corresponding period. Medusa is an
un-hedged gold producer and received an average price of US$1,304
per ounce from the sale of 27,334 ounces of gold for the half-year
to December 2013 (previous corresponding period: 43,492 ounces at
US$1,676 per ounce).
The decrease in NPAT, EBITDA and Revenues is directly linked to
a decrease in gold production (26,089 ounces compared to 32,580
ounces) and a lower average price received on sale of gold
(US$1,304 per ounce compared to US$1,676 per ounce). As at 31
December 2013, the Company had total cash, cash equivalent in gold
on metal account and bullion on hand of approximately US$20.8
million (Dec 2012: US$15.8 million).
During the half-year:
-- The Company recorded Revenue of US$33.9 million from gold and
silver sales (Dec 2012 half-year: gold and silver sales of US$52.3
million and interest of US$0.3 million);
-- Depreciation and amortisation was lower at US$6.3 million,
compared with US$6.7 million in the December half of 2012;
-- US$8.5 million outlay on exploration expenditure, including
US$5.3 million on the Co-O Mine (Dec 2012 half-year: US$14.6
million, including US$9.8 million for the Co-O Mine);
-- US$11.6 million was spent on sustaining capital at mine and
mill and capital works associated with the new mill construction
and infrastructure (Dec 2012 half-year: US$23.5 million); and
-- Incurred US$17.5 million on general and accelerated mine
development costs, inclusive of shaft sinking costs (Dec 2012
half-year: on general and accelerated mine development costs,
inclusive of shaft sinking costs of US$15.8 million).
CORPORATE
Dividend
No dividend will be payable for the half year to 31 December
2013 (No dividend was payable for the previous half year to 31
December 2012).
CAPITAL RAISING
During the quarter, the Company raised gross proceeds of
A$34,002,702 via the issue of 18,890,390 shares at A$1.80 each to
clients of Euroz Securities Limited.
BOARD CHANGES
Mr Geoff Davis (Founding Managing Director of Medusa) retired as
Non-executive Chairman on 22 November 2013 and was succeeded by
Non-Executive Director, Mr Andrew Teo.
JORC CODE 2012 COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results is
based on information compiled by Mr Gary Powell, who is a member of
The Australian Institute of Geoscientists and the Australasian
Institute of Mining and Metallurgy. Mr Powell is a Non-Executive
Director 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
2012 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 Powell consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
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 2013.
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 $1,000.
This report is signed in accordance with a resolution of the
Board of Directors.
PETER HEPBURN-BROWN
Managing Director
Dated this 27(th) day of February 2014.
AUDITOR'S INDEPENDENCE DECLARATION
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Auditor's Independence Declaration
To The Directors of Medusa Mining Limited
In accordance with the requirements of section 307C of the
Corporations Act 2001, as lead auditor for the review of Medusa
Mining Limited for the half-year ended 31 December 2013, I declare
that, to the best of my knowledge and belief, there have been:
a No contraventions of the auditor independence requirements of
the Corporations Act 2001 in relation to the review; and
b No contraventions of any applicable code of professional
conduct in relation to the review.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
P W Warr
Partner - Audit & Assurance
Perth, 27 February 2014
FINANCIALS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
for the half-year ended 31 December 2013
Consolidated Group
--------------------------------
31 Dec 31 Dec
2013 2012
---------- --------------------
Note US$ 000 US$ 000
---------- --------------------
Revenue 2 33,998 52,363
Cost of sales (15,775) (18,175)
Administration expenses (3,905) (4,665)
Other expenses (1,298) (925)
Profit before income tax expense 13,020 28,598
Income tax expense - -
---------- --------------------
Profit for the period after
income tax expense 13,020 28,598
---------- --------------------
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation
of foreign operations (net of
tax) (11,073) 7,507
---------- --------------------
Total comprehensive income 1,947 36,105
---------- --------------------
Overall operations:
Basic earnings per share 0.067 0.152
---------- --------------------
Diluted earnings per share 0.067 0.152
---------- --------------------
The accompanying condensed notes form part
of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the half-year ended 31 December 2013
Consolidated
Group
------------------
31 Dec 30 June
2013 2013
-------- --------
Note US$ 000 US$ 000
-------- --------
CURRENT ASSETS
Cash & cash equivalents 19,909 4,698
Trade & other receivables 20,308 29,617
Inventories 20,666 18,339
Other current assets 992 662
Total Current Assets 61,875 53,316
-------- --------
NON-CURRENT ASSETS
Trade & other receivables 10,924 2,600
Property, plant & equipment 107,873 101,549
Exploration, evaluation and
development expenditure 235,113 219,962
Deferred tax assets 1,603 1,603
Total Non-Current Assets 355,513 325,714
-------- --------
TOTAL ASSETS 417,388 379,030
-------- --------
CURRENT LIABILITIES
Trade & other payables 20,621 18,616
Borrowings 1,125 1,725
Provisions 622 1,017
-------- --------
Total Current Liabilities 22,368 21,358
-------- --------
NON-CURRENT LIABILITIES
Borrowings 5,936 528
Provisions 723 753
Deferred tax liability 141 141
-------- --------
Total Non-Current Liabilities 6,800 1,422
-------- --------
TOTAL LIABILITIES 29,168 22,780
-------- --------
NET ASSETS 388,220 356,250
-------- --------
EQUITY
Issued capital 5 102,902 73,070
Reserves 7,204 18,087
Retained profits 278,114 265,093
-------- --------
TOTAL SHAREHOLDERS' EQUITY 388,220 356,250
-------- --------
The accompanying condensed notes form part
of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half-year ended 31 December 2013
Other
Reserves Foreign
Share (refer Currency
Capital Retained note Translation
Ordinary Profits 6) Reserve Total
---------- --------- ---------- ------------- ---------
US$ US$ US$ US$
000 000 000 000 US$ 000
---------- --------- ---------- ------------- ---------
Balance at 01.07.2012 73,070 218,837 3,740 20,020 315,667
---------- --------- ---------- ------------- ---------
Net profit after tax - 28,598 - - 28,598
Other comprehensive
income - - - 7,507 7,507
---------- --------- ---------- ------------- ---------
Total comprehensive
income for the period - 28,598 - 7,507 36,105
---------- --------- ---------- ------------- ---------
Shares issued during
the period - - - - -
Transfer from Option
Reserve - - - - -
Share options recognised
during the period
in accordance with
AASB 2 - share based
payments - - 1,100 - 1,100
Sub-total 73,070 247,435 4,840 27,527 352,872
Dividends paid or
provided for (refer
note 3) - (3,925) - - (3,925)
---------- --------- ---------- ------------- ---------
Balance at 31.12.2012 73,070 243,510 4,840 27,527 348,947
---------- --------- ---------- ------------- ---------
Balance at 01.07.2013 73,070 265,093 4,448 13,639 356,250
---------- --------- ---------- ------------- ---------
Net profit after tax - 13,020 - - 13,020
Other comprehensive
income - - - (11,073) (11,073)
---------- --------- ---------- ------------- ---------
Total comprehensive
income for the period - 13,020 - (11,073) 1,947
Shares issued during
the period 29,832 - - - 29,832
Transfer from Option
Reserve
Share options and
performance rights
recognised during
the period in accordance
with AASB 2 - share
based payments - - 191 - 191
Sub-total 102,902 278,113 4,639 2,566 388,220
Dividends paid or
provided for (refer
note 3) - - - - -
Balance at 31.12.2013 102,902 278,113 4,639 2,566 388,220
---------- --------- ---------- ------------- ---------
The accompanying condensed notes form part of these
financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half-year ended 31 December 2013
Consolidated Group
------------------------
31 Dec 31 Dec
2013 2012
--------- -------------
US$ 000 US$ 000
--------- -------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers 35,929 73,330
Payments to suppliers and
employees (11,398) (18,504)
Interest received 43 29
Net cash provided by operating
activities 24,574 54,855
--------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of non-current
assets (13,600) (24,360)
Payments for exploration
expenditure and tenements (3,853) (5,906)
Payments for development
activities (22,689) (18,658)
Net cash (used in) investing
activities (40,142) (48,924)
--------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of 31,684 -
shares
Transaction costs from (1,851) -
issue of shares
Payments for dividends - (3,925)
Proceeds from borrowings 4,808 -
--------- -------------
Net cash provided by (used
in) financing activities 34,641 (3,925)
--------- -------------
Net (increase) in cash
held 19,073 2,006
Cash at beginning of period 4,698 12,468
Exchange rate adjustments (3,862) (5,640)
--------- -------------
Cash at end of period 19,909 8,834
--------- -------------
The accompanying condensed notes form part
of these financial statements
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
for the half-year ended 31 December 2013
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 2013 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 functional currency of each of the Group's entities is the
currency of the primary economic environment in which that entity
operates. Though the Company's functional currency is Australian
dollars the presentation currency for the Group is US dollars. The
reason for using US dollars as the presentation currency is US
dollars is the primary currency used in the global gold market.
The consolidated annual financial report of the consolidated
group as at and for the year ended 30 June 2013 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 2013 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 2013.
This consolidated interim financial report was approved by the
Board of Directors on 26 February 2014.
(b) Significant accounting policies
The interim financial statements have been prepared in
accordance with the accounting policies adopted in the Group's last
annual financial statements for the year ended 30 June 2013, except
for the application of the following standards as of 1 January
2013:
-- AASB 10 Consolidated Financial Statements;
-- AASB 11 Joint Arrangements; and
-- AASB 119 Employee Benefits (September 2013)
--
The effects of applying these standards are described below.
AASB 10 Consolidated Financial Statements
AASB 10 supersedes AASB 127 Consolidated and Separate Financial
Statements and Interpretation 112 Consolidation - Special Purpose
Entities. AASB 10 revises the definition of control and provides
extensive new guidance on its application. These new requirements
have the potential to affect which of the Group's investees are
considered to be subsidiaries and therefore change the scope of
consolidation. The requirements on consolidation procedures,
accounting for changes in non-controlling interests and accounting
for loss of control of a subsidiary are unchanged.
Management has reviewed its control assessments in accordance
with AASB 10 and has concluded that there is no effect on the
classification (as subsidiaries or otherwise) of any of the Group's
investees held during the period or comparative periods covered by
these financial statements.
AASB 11 Joint Arrangements
AASB 11 supersedes AASB 131 Interests in Joint Ventures and
Interpretation 113 Jointly Controlled Entities -
Non-Monetary-Contributions by Venturers. It aligns more closely the
accounting by the investors with their rights and obligations
relating to the joint arrangement. In addition, AASB 131's option
of using proportionate consolidation for joint ventures has been
eliminated. AASB 11 now requires the use of the equity accounting
method, which is currently used for investments in associates.
The application of AASB 11 has no impact on the Group as there
are no joint arrangements in place.
AASB 119 Employee Benefits (September 2013)
AASB 119 makes a number of changes to the accounting for
employee benefits, the most significant relating to defined benefit
plans. AASB 119:
-- eliminates the 'corridor method' and requires the recognition
of remeasurements (including actuarial gains and losses) arising in
the reporting period in other comprehensive income
-- changes the measurement and presentation of certain
components of the defined benefit cost. The net amount in profit or
loss is affected by the removal of the expected return on plan
assets and interest cost components and their replacement by a net
interest cost based on the net defined benefit asset or
liability
(c) Significant events and transactions
During the six months the Company experienced a decrease in
Revenues which is directly linked to a decrease in gold production
(26,089 ounces compared to 32,580 ounces) and a lower average price
received on sale of gold.
The Group's objectives and policies for managing capital, credit
risk and liquidity risk are described in its recent annual
financial statements.
During the quarter, the Company raised gross proceeds of
A$34,002,702 via the issue of 18,890,390 shares at A$1.80 each to
clients of Euroz Securities Limited.
(d) Comparative figures
Where required by Accounting Standards, comparative figures have
been adjusted to conform with changes in presentation for the
current financial year.
(e) 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 $1,000.
Consolidated Group
----------------------------
31 Dec 31 Dec
2013 2012
------------- -------------
US$ 000 US$ 000
------------- -------------
Note 2: Profit for the
period
The following revenue and
expense items are relevant
in explaining the financial
performance for the interim
period:
Revenue items:
Interest revenue 65 27
Gold and silver sales 33,926 52,327
Other 7 9
------------- -------------
33,998 52,363
------------- -------------
Expense items:
Depreciation 3,263 3,203
Amortisation 3,041 3,507
Employee benefits expense 3,958 2,933
Recognition of share based
payments 191 1,100
Note 3: Dividends
No dividend was declared
(2012: 2 cents a share,
declared on 29 August 2012
and paid on 4 October 2012). - 3,925
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 unallocated. Currently the
only operational mine is the Co-O mine.
Mining Exploration unallocated Total
US$ US$ US$ US$
000 000 000 000
-------- ------------ ------------ --------
Segment Revenue and Result
6 months to December
2013:
Segment revenue 33,926 - 72 33,998
Segment result 15,937 (10) (2,907) 13,020
6 months to December
2012:
Segment revenue 52,327 - 36 52,363
Segment result 32,069 (16) (3,455) 28,598
Segment Assets and Liabilities
31 December 2013:
Segment assets 397,069 3,762 14,954 415,785
Reconciliation of segment
assets to group assets
add -
Deferred tax assets 1,603
--------
Total group assets 417,388
--------
Segment liabilities 24,807 1 4,219 29,027
Reconciliation of segment
liabilities to group
liabilities
add -
Deferred tax liabilities 141
--------
Total group liabilities 29,168
--------
30 June 2013:
Segment assets 371,846 3,943 1,638 377,427
Reconciliation of segment
assets to group assets
add -
Deferred tax assets 1,603
--------
Total group assets 379,030
--------
Segment liabilities 18,674 10 3,955 22,639
Reconciliation of segment
liabilities to group
liabilities
add -
Deferred tax liabilities 141
--------
Total group liabilities 22,780
--------
Consolidated Group
----------------------------------------------
31 Dec 2013 30 Jun 2013 31 Dec 30 Jun
2013 2013
------------ ------------ -------- --------
(shares) (shares) US$ 000 US$ 000
------------ ------------ -------- --------
Note 5: Issued Capital
Ordinary shares on
issue 207,794,301 188,903,911 102,902 73,070
------------ ------------ -------- --------
Opening balance 188,903,911 - 73,070 73,070
add -
Shares issued during
the period 18,890,390 - 29,832 -
Transfer from option
Reserve
------------ ------------ -------- --------
207,794,301 188,903,911 102,902 73,070
------------ ------------ -------- --------
Movement in ordinary
shares during the half-year:
* Balance at beginning of the period 188,903,911 188,903,911 73,070 73,070
* Ordinary shares issued - 7 November 2013 9,445,195 - 14,916 -
* Ordinary shares issued - 25 November 2013 9,445,195 - 14,916 -
207,794,301 188,903,911 102,902 73,070
------------ ------------ -------- --------
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
2013 2013 2013 2013
---------- ---------- -------- --------
(options) (options) US$ 000 US$ 000
---------- ---------- -------- --------
Note 6: Option and
Performance Rights
Reserve
Option and Performance
Rights Reserve 1,715,000 1,715,000 4,638 4,448
---------- ---------- -------- --------
Opening balance 1,715,000 1,965,000 4,448 3,740
less -
Options forfeited (140,000) (250,000) - -
add -
Share options and
performance rights
recognised during
the period in accordance
with AASB 2 - share
based payments - - 191 708
---------- ---------- -------- --------
1,575,000 1,715,000 4,639 4,448
---------- ---------- -------- --------
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 2013 annual
report.
Note 9: Related Parties
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 2013.
Note 10: Events subsequent to reporting date
There has not arisen in the interval between
the half-year ended 31 December 2013 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 2013 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 27(th) day of February 2014
INDEPENDENT AUDITORS REVIEW REPORT
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
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 2013, and the statement of profit or loss and other
comprehensive income, statement of changes in equity and statement
of cash flows for the half-year ended on that date, notes
comprising a statement or description of accounting policies, other
explanatory information 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 Medusa Mining Limited are responsible for the
preparation of the half-year financial report that gives a true and
fair view in accordance with Australian Accounting Standards and
the Corporations Act 2001 and for such controls as the directors
determine is necessary to enable the preparation of the half-year
financial report that is free from material misstatement, whether
due to fraud or error.
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 half-year
financial report is not in accordance with the Corporations Act
2001 including: giving a true and fair view of the Medusa Mining
Limited consolidated entity's financial position as at 31 December
2013 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 2013 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, 27 February 2014
Please see link at the end of this announcemnent for the
Appendices:
Appendix A. Co-O Gold Project
JORC Code, 2012 Edition - Table 1 Report
Section 1. Sampling Techniques and Data
Section 2. Reporting of Exploration Results
Appendix B. Tambis Project - Bananghilig Gold Deposit
JORC Code, 2012 Edition - Table 1 Report
Section 2. Sampling Techniques and Data
Section 3. Reporting of Exploration Results
APPENDIX C: TENEMENT SCHEDULE
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 complete half yearly report including figures,
photos and appendices, please click on or paste the following link
in your browser:
http://www.rns-pdf.londonstockexchange.com/rns/0352B_-2014-2-26.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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