Medusa Upgraded its Production Guidance for FY2019
On 13 May 2019, a mining, production and exploration company, Medusa Mining Limited (ASX: MML) through its Philippines affiliates, Philsaga Mining Corporation (PMC) and Mindanao Mineral Processing & Refining Corporation (MMPRC) declared the production guidance upgrade as per the actual YTD production results.
As per the initial guidance of the company, the expected production was in the range of 90,000 to 100,000 ounces of gold and AISC was in between US$1,050 to US$1,150 per ounce of gold.
The company has now revised its full-year production based on the performance to date and factoring better than expected production in April 2019. The expected production for FY2019 is now between 98,000 to 105,000 ounces of Au. At the same time, AISC is anticipated to be at the lower end of the guidance of US$1.05k to US$1.15k per oz of gold.
Further, the company has released its May 2019 Investor presentation where it highlighted on the Company’s overview, stating that the company is an operator of the high-grade Co-O Gold Mine. It has a sharp focus on improving its operating performance and has the potential to leverage expertise in the exploration of epithermal gold deposits, underground narrow vein mining and operating in Asia.
The presentation also covered the company’s recent developments. As on 31 December 2018, the mineral resource and ore reserves increased after 93koz of mine depletion. As compared to December 2017 resource, the December 2018 resource, showed a variance of more than 2.8% in Au(koz). December 2018 reserves increased by more than 7% as compared to its previous corresponding period.
In late November 2018, the final commissioning of E15 service shaft was completed. During the March 2019 quarter, the cash build was reported at US$5.1 million. On 1 March 2019, the Company appointed David McGowan as its CEO.
During the March 2019 quarter, the cash and gold of the company increased by US$5.1 million. The Company reported a borrowing of US$7.4 million as at 31 March 2019. The cash and gold by the end of 31 March 2019 stood at US$19.7 million.
The presentation also discussed the maiden Royal Crowne Vein gold deposit mineral resources.
In the 1H FY2019 period, the company generated revenue of US$58.668 million from ordinary activities, down by 14% as compared to its previous corresponding period. The decline in the revenue was due to lower gold sold, along with the lower average price received on the sale of gold. The Company made a net profit of US$8.286 million, down by 41% on pcp.
The balance sheet of the Company reported an increase in the net asset base as a result of growth in the total asset of the Company. The total shareholders’ equity by 31 December 2018 was US$93.500 million.
There was a cash inflow of US$27.486 million through the operating activities of the company. The Company received a bank loan of US$0.930 million during the period. There was a cash outflow of US$24.650 million through the investing activities of the Company. By the end of 1H FY2019, the Company had net cash and cash equivalent of US$13.963 million.
In the last six months, the shares of MML has generated a return of 15.63%. At present, the shares of MML are trading at A$0.380, up by 2.703% (as on 13 May 2019, 3:33 PM AEST). MML holds a market capitalization of A$76.88 million and approximately 207.79 million outstanding shares.