Final Results
(Thomson Reuters ONE) - MEDUSA MINING LIMITED ABN: 60 099 377 849 Unit 7, 11 Preston Street Como WA 6152 PO Box 860 Canning Bridge WA 6153 Telephone: +618-9367 0601 Facsimile: +618-9367 0602 Email: admin(at)medusamining.com.au Internet: www.medusamining.com.au MEDUSA RECORDS STRONG 2009 FINANCIAL RESULTSMedusa Mining Limited ("Medusa" or the "Company"), is pleased topresent its full year financial results for the year ended 30 June2009, highlighted by a record Net Profit After Tax ("NPAT") of $38.1million.Highlights: * Record Net Profit of 38.1 million (2008: ($1.3 million)) * Turnover increased 216% to $57.3 million * Earnings per share $0.25 (2008:$0.009) * Total Co-O mine resource increased 60% to 1.38 million ounces of gold * Maiden resource of 650,000 ounces of gold at its Bananghililg DepositManaging Director, Geoff Davis commented:"The year has been one of tremendous advance with gold productionfrom the Co-O Mine now annualised at June 30 at over 60,000 ouncesper annum, following production of 47,869 ounces at a cash cost ofUS$213 per ounce for the year, making Medusa one of the lowest costgold producers on the ASX and AIM markets. Work is progressing onschedule to attain 100,000 ounces of annualised production in early2010.Capital works are continuing and are expected to be completed by theend of the year, enabling the Company to concentrate on production ofgold. The main outstanding item is the completion of the millcrushing circuit expansion to treat up to approximately 1,000 tonnesof ore per day.Exploration expenditure has increased during the year with theaddition of more surface rigs, now totalling 12. As over 1,100,000ounces have been added to the Company's resource inventory since lastyear's annual report, this amount of effort has produced greatresults, and further increases are anticipated.The recent announcement of a maiden resource at Bananghilig of650,000 ounces of gold now sets the scene for propelling the Companyto upper mid-tier status by potentially developing a second mine witha potential total production profile of 300,000 to 400,000 ounces ofgold per year.The Bananghilig Deposit further strengthens the Company's belief inthe enormous prospectivity of its substantial tenement package.Financially the Company is in a sound position with just under $33million in the bank and this year's EBITDA of A$40.6 million sets thescene of what we believe will be strong future earnings growth."For further information, please contact:Medusa Mining Limited +61 8 9367 0601Geoffrey Davis, Managing DirectorRoy Daniel, Finance DirectorFairfax I.S. PLC +44 (0)20 7598 5368(Nominated Adviser/Joint Broker)Ewan LeggatMirabaud Securities Limited +44 (0)20 7321 2508(Joint Broker)Peter KrensLothbury Financial +44 (0)20 7011 9411Michael Padley/Libby MossManaging Director's ReviewAchievement of our production targets ahead of schedule during thepast year has triggered the desire to look back to where we have comefrom since becoming fully involved in the Co-O Gold Project inDecember 2006.At that point the Co-O Mine had a resource of 267,000 ounces. Theproduction target was a modest 40,000 ounces per year, butexploration was starting to indicate we had a growing giant on ourhands. In the next resource update in September 2007, it had grown to713,000 ounces, in August 2008 to 862,000 and in June this year to1,380,000 ounces, and this figure is expected to continue growing.With potentially a long mine life and production now heading rapidlyto 100,000 ounces per year from the first quarter of 2010, andexploration in progress to potentially justify a further expansion,the Company is set to enter the realms of a mid-tier gold producer.On a world basis, the Co-O Mine is producing gold as one of thelowest cost producers. We see no reason for this to change in theforeseeable future which cements the Company's position in the goldindustry as a low cost producer.While exploration has rightly focused on the Co-O Mine to fullyestablish cash flow, the Company now has the 650,000 ounceBananghilig Deposit to provide the potential for a second producingmine. The size of the deposit (which is anticipated to grow withfurther exploration), has the potential to add another 200,000 ouncesof annualised production. The deposit is low grade, but has a numberof redeeming features which are anticipated, with further work, totranslate into a medium-cost producer.Copper exploration is also advancing at the Lingig copper projectwhere drilling during the year returned encouraging intersectionsover good widths. Provided drilling continues to outline a body thathas commercial size potential, it is anticipated that the pace ofwork will pick up as results justify it.Encouraging scout drilling results were also obtained from theKamarangan copper project during the year, justifying furtherdrilling.A number of visitors and consultants to the Co-O Project during theyear have observed and commented that the project is noticeablyintimately integrated in our host communities. This is an observationof which our community relations people are intensely proud, not onlyfrom the perspective of personal achievement, but more importantlyfrom the perspective of the Company's ability to provide tangiblebenefits to our host communities, raising the aspirations of, inparticular, younger members of those communities through education,health, agriculture and for many of them, secure work at apotentially long life project.The Co-O Project today is the result of a dedicated team effort atall levels of the organisation. At times during our infancy it wasdifficult to see the light at the end of the tunnel, but toeveryone's credit, the sense of ownership and enthusiasm now presentat all levels is something of which I am immensely proud.We all look forward to progressing the Company to 300,000 to 400,000ounce gold producer which will significantly elevate the status ofthe Philippines as a gold producer and provide employment and otherbenefits to a large number of people.Geoff DavisManaging DirectorHIGHLIGHTS OF THE FINANCIAL YEARFINANCIALS+----------------------------------------------------------------+| Key Results | 30 June 2009 | 30 June 2008 | Variance | (%) ||-------------+--------------+--------------+-------------+------|| Revenues | $57,257,750 | $18,074,035 | $39,183,715 | 216% ||-------------+--------------+--------------+-------------+------|| EBITDA | $40,608,840 | $4,655,085 | $35,953,755 | - ||-------------+--------------+--------------+-------------+------|| EBIT | $35,819,516 | $1,018,439 | $34,801,077 | - ||-------------+--------------+--------------+-------------+------|| NPAT | $38,110,876 | ($1,347,489) | $39,458,365 | - ||-------------+--------------+--------------+-------------+------|| EPS (basic) | $0.25 | ($0.009) | $0.259 | - |+----------------------------------------------------------------+ * Record Net Profit After Tax ("NPAT") of $38.1 million (2008: ($1.3 million)), representing basic earnings per share ("EPS"), of 25 cents on a weighted average basis; * Revenues increased 216% to a record $57.3 million, due to increased gold production and a higher price received on sales. Medusa is an un-hedged gold producer and received an average gold price of US$880 per ounce from the sale of 47,869 ounces of gold for the year (2008: 19,009 ounces at US$849 per ounce); * Earnings Before Interest, Tax, Depreciation and Amortisation ("EBITDA") of $40.6 million (2008: $4.7 million) and Earnings Before Interest and Tax ("EBIT") of $35.8 million (2008: $1.0 million); * Mindanao Mineral Processing and Refining Corporation, Medusa's wholly owned Philippines subsidiary was granted a four year tax concession, commencing July 2009; * The Company is debt free and had a cash balance of $32.9 million at year end.OPERATIONSCo-O MINE * The Company produced a record 47,869 ounces of gold for the year, an increase of 28,860 ounces or 152 % from the previous year's production of 19,009 ounces, at an average grade of 13.30 g/t gold (2008: 10.40 g/t gold) and cash costs of US$213 per ounce (2008: US$248 per ounce) as seen in figure 1 (please see the link at the end of this announcement) * With Phase 1 of its expansion programme completed ahead of schedule in the June 2009 quarter and the Phase II expansion programme on schedule, the Company expects to produce approximately 82,000 ounces in the forthcoming fiscal year at an estimated cash cost of US$200 per ounceRESERVES AND RESOURCES+---------------------------------------------------------+| Type | June 2009 | June 2008 | Variance ||----------------------+-----------+-----------+----------|| Co-O Reserves | | | ||----------------------+-----------+-----------+----------|| Probable reserves | 500,000 | 249,000 | 101% ||----------------------+-----------+-----------+----------|| Total Co-O Reserves | 500,000 | 249,000 | 101% ||----------------------+-----------+-----------+----------|| Co-O Resources | | | ||----------------------+-----------+-----------+----------|| Indicated resources | 603,000 | 392,000 | 54% ||----------------------+-----------+-----------+----------|| Inferred resources | 777,000 | 470,000 | 65% ||----------------------+-----------+-----------+----------|| Total Co-O Resources | 1,380,000 | 862,000 | 60% |+---------------------------------------------------------+ * Gold reserves at Co-O increased by 251,000 ounces or 101 % to 500,000 ounces excluding mine depletion for the year of 47,869 ounces; * Co-O's gold resource inventory at year end of 1,380,000 contained ounces represents an increase of 518,000 ounces or 60% and excludes any mine depletion for the year as seen in figure 2 (please see the link at the end of this announcement) * Subsequent to year end, Medusa announced a maiden resource of 650,000 ounces at its Banaghilig Deposit (15 million tonnes at 1.3 g/t gold); * Together with Co-O's resource of 1.38 million, the Company's total resource inventory now stands at 2.03 million.EXPLORATION * Contiguous tenement package maintained at >800km2; * Budgeted exploration for 2009/10 of $17.0 million (2008 actual: $15 million); * Exploration highlights at Co-O include: * Discovery of new high grade veins, such as the Great Hamish Vein; * Extension along strike to approximately 1,400 metres; * Extension across strike to approximately 500 metres; and * Demonstrating that mineralisation extends to over 400 metres below the mine's adit entrance; as seen in figure 3 (please see the link at the end of this announcement). * At the Bananghilig disseminated gold deposit, a very large mineralised system has now been estimated in preparation for planning additional work; * At the Lingig copper prospect, drilling is on-going to define an economic sized resource following initial good results; * Scout drilling at the Kamarangan copper prospect returned encouraging results requiring follow-up drilling.INCOME STATEMENTSfor the year ended 30 June 2009 Consolidated Company 2009 2008 2009 2008 $ $ $ $Revenue 57,252,098 18,074,035 1,651,506 1,819,183Other income 5,652 - - -Cost of sales (17,339,343) (10,066,585) - -Exploration & evaluation expenses (80,735) (572,221) - -Finance Costs - (375,842) - -Administration expenses (2,351,838) (3,307,302) (1,787,601) (1,578,609)Other expenses (1,666,318) (2,733,646) (1,024,872) (2,437,571)Profit/(loss) before incometax expense 35,819,516 1,018,439 (1,160,967) (2,196,997)Income tax (expense)/income 2,291,360 (2,365,928) - -Profit/(loss) attributable tomembers of the Company 38,110,876 (1,347,489) (1,160,967) (2,196,997)Basic earnings/(loss) per share $0.250 ($0.009)Diluted earnings/(loss) per share $0.249 ($0.009)The accompanying notes form part of these financial statements.BALANCE SHEETSas at 30 June 2009 Consolidated Company 2009 2008 2009 2008 $ $ $ $CURRENT ASSETSCash & cashequivalents 32,938,971 4,834,161 17,662,620 2,242,620Trade & otherreceivables 6,198,161 2,185,194 23,914 27,425Inventories 1,446,171 935,976 - -Other current assets 159,595 333,119 48,102 29,484Total Current Assets 40,742,898 8,288,450 17,734,636 2,299,529Non-Current AssetsProperty, plant &equipment 37,818,693 28,499,551 45,438 60,481Exploration,evaluation anddevelopmentexpenditure 65,797,441 40,740,193 - -Deferred tax assets 85,989 2,851,792 - -Other assets - - 66,169,494 56,143,200Total Non-CurrentAssets 103,702,123 72,091,536 66,214,932 56,203,681Total Assets 144,445,021 80,379,986 83,949,568 58,503,210Current LiabilitiesTrade & otherpayables 11,423,616 6,845,501 568,549 1,217,702Total CurrentLiabilities 11,423,616 6,845,501 568,549 1,217,702NON-CURRENTLIABILITIESDeferred taxliability 388,879 5,217,720 - -Total Non-CurrentLiabilities 388,879 5,217,720 - -Total Liabilities 11,812,495 12,063,221 568,549 1,217,702Net Assets 132,632,526 68,316,765 83,381,019 57,285,508EquityIssued capital 92,773,702 65,866,550 92,773,702 65,866,550Reserves (1,231,604) (529,337) 2,072,018 1,722,692Retained profits /(accumulated losses) 41,090,428 2,979,552 (11,464,701) (10,303,734)Total equity 132,632,526 68,316,765 83,381,019 57,285,508The accompanying notes form part of these financial statements.STATEMENTS OF CHANGES IN EQUITYfor the year ended 30 June 2009 Foreign Share Currency Capital Accumulated Option Translation Ordinary Losses Reserve Reserve Total$ $ $ $ $ $CONSOLIDATEDBalance at01.07.2007 63,805,000 4,327,041 1,544,961 793,287 70,470,289Exchangedifferencesarising ontranslation - - - (3,045,316) (3,045,316)(Loss)attributableto membersof Company - (1,347,489) - - (1,347,489)Totalrecognisedincome andexpensesduring theyear - (1,347,489) - (3,045,316) 4,392,805Sharesissuedduring theperiod 1,742,200 - - - 1,742,200Sharetransactioncosts (674,750) - - - (674,750)Shareoptionsissuedduring theperiod inaccordancewith AASB 2- sharebasedpayment - - 1,171,831 - 1,171,831Transferfrom optionreserve 994,100 - (994,100) - -Balance at30.06.2008 65,866,550 2,979,552 1,722,692 (2,252,029) 68,316,765Exchangedifferencesarising ontranslation - - - (1,051,593) (1,051,593)Profitattributableto membersof Company - 38,110,876 - - 38,110,876Totalrecognisedincome andexpensesduring theyear - 38,110,876 - (1,051,593) 37,059,283Sharesissuedduring theperiod 28,208,841 - - - 28,208,841Sharetransactioncosts (1,301,689) - - - (1,301,689)Shareoptionsissuedduring theperiod inaccordancewith AASB 2-share basedpayment - - 349,326 - 349,326Balance at30.06.2009 92,773,702 41,090,428 2,072,018 (3,303,622) 132,632,526COMPANYBalance at01.07.2007 63,805,000 (8,106,737) 1,544,961 - 57,243,224Lossattributableto membersof Company - (2,196,997) - - (2,196,997)Totalrecognisedincome andexpensesduring theyear - (2,196,997) - - (2,196,997)Sharesissuedduring theperiod 1,742,200 - - - 1,742,200Sharetransactioncosts (674,750) - - - (674,750)Shareoptionsissuedduring theperiod inaccordancewith AASB 2-share basedpayment - - 1,171,831 - 1,171,831Transferfrom optionreserve 994,100 - (994,100) - -Balance at30.06.2008 65,866,550 (10,303,734) 1,722,692 - 57,285,508Lossattributableto membersof Company - (1,160,967) - - (1,160,967)Totalrecognisedincome andexpensesduring theyear - (1,160,967) - - (1,160,967)Sharesissuedduring theperiod 28,208,841 - - - 28,208,841Sharetransactioncosts (1,301,689) - - - (1,301,689)Shareoptionsissuedduring theperiod inaccordancewith AASB 2-share basedpayment - - 349,326 - 349,326Balance at30.06.2009 92,773,702 (11,464,701) 2,072,018 - 83,381,019The accompanying notes form part of these financial statements.CASH FLOW STATEMENTSfor the year ended 30 June 2009 Consolidated Company 2009 2008 2009 2008 $ $ $ $CASH FLOWS FROMOPERATING ACTIVITIESReceipts fromcustomers 57,019,136 17,540,189 - 805Payments to suppliersand employees (17,532,970) (10,738,999) (3,190,999) (2,708,082)Interest received 232,963 399,085 212,768 389,073Net cash providedby/(used in) operatingactivities 39,719,129 7,200,275 (2,978,231) (2,318,204)CASH FLOWS FROMINVESTING ACTIVITIESReceipt from sale ofinvestments - 110,119 - 110,119Payments for plant andequipment (8,379,429) (2,313,575) (6,012) (17,508)Payments for explorationand evaluationactivities (4,178,100) (8,293,728) - -Payment fordevelopment activities (23,187,857) (6,546,801) - -Loans to controlledentities - - (8,409,904) (9,621,057)Net cash (used in)investing activities (35,745,386) (17,043,985) (8,415,916) (9,528,446)CASH FLOWS FROMFINANCING ACTIVITIESProceeds from issue ofshares 28,143,000 1,742,200 28,143,000 1,742,200Transaction costs fromissue of shares (1,301,673) (1,811,250) (1,301,673) (1,811,250)Repayment of vendorfinance - (5,000,000) - (5,000,000)Net cash providedby/(used in) financingactivities 26,841,327 (5,069,050) 26,841,327 (5,069,050)Net(decrease)/increase incash andcash equivalents held 30,815,070 (14,912,760) 15,447,180 (16,915,700)Cash and cashequivalents at thebeginning of thefinancial year 4,834,161 20,168,063 2,242,620 19,166,563Exchange rateadjustment (2,710,260) (421,142) (27,180) (8,243)Cash and cashequivalents at the endof the financial year 32,938,971 4,834,161 17,662,620 2,242,620The accompanying notes form part of these financial statements.NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2009STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe financial report is a general purpose financial report which hasbeen prepared in accordance with Australian Accounting Standards,including Australian Accounting Interpretations, other authoritativepronouncements of the Australian Accounting Standards Board and theCorporations Act 2001.Australian Accounting Standards set out accounting policies that theAASB has concluded would result in a financial report containingrelevant and reliable information about transactions, events andconditions to which they apply. Compliance with Australian AccountingStandards ensures that the financial statements and notes also complywith International Financial Reporting Standards. Materialaccounting policies adopted in the preparation of this financialreport are presented below. They have been consistently appliedunless otherwise stated.The financial report covers the Group of Medusa Mining Limited("Medusa") and controlled entities, and Medusa as an individualCompany. Medusa is a listed public company, incorporated anddomiciled in Australia.The financial statements were authorised for issue by the Directorson 4 September 2009.Basis of PreparationReporting Basis and ConventionsThe financial report has been prepared on an accruals basis and isbased on historical costs modified by the revaluation of selectednon-current assets, financial assets and financial liabilities forwhich the fair value basis of accounting has been applied.(a) Principles of ConsolidationA controlled entity is any entity over which Medusa has the power togovern the financial and operating policies so as to obtain benefitsfrom its activities. In assessing the power to govern, the existenceand effect of holdings of actual and potential voting rights areconsidered.A list of controlled entities is contained in Note 19 to thefinancial statements.As at reporting date, the assets and liabilities of all controlledentities have been incorporated into the consolidated financialstatements as well as their results for the year then ended. Wherecontrolled entities have entered (left) the consolidated group duringthe year, their operating results have been included (excluded) fromthe date control was obtained (ceased).All inter-group balances and transactions between entities in theconsolidated group, including any unrealised profits or losses, havebeen eliminated on consolidation. Accounting policies of subsidiarieshave been changed where necessary to ensure consistency with thoseadopted by the parent entityComparative FiguresWhere required by Accounting Standards, comparative figures have beenadjusted to conform with changes in presentation for the currentfinancial year.(b) Revenue RecognitionRevenue is measured at the fair value of the consideration receivedor receivable after taking into account any trade discounts andvolume rebates allowed. Any consideration deferred is treated as theprovision of finance and is discounted at a rate of interest that isgenerally accepted in the market for similar arrangements. Thedifference between the amount initially recognised and the amountultimately received is interest revenue.Gold and Silver SalesRevenue from the production of gold and silver is recognised when theGroup has passed control and risk to the buyer.Interest RevenueInterest revenue is recognised using the effective interest ratemethod, which, for floating rate financial assets, is the rateinherent in the instrument.DividendsDividend revenue (net of franking credits) is recognised when theright to receive a dividend has been established.Dividends received from associates and joint venture entities areaccounted for in accordance with the equity method of accounting andrecognised when the dividends are received.All revenue is stated net of the amount of goods and services tax("GST").(c) Income TaxThe income tax expense (revenue) for the year comprises currentincome tax expense (income) and deferred tax expense (income).EARNINGS/(LOSS) PER SHARE Consolidated 2009 2008 $ $Earnings used to calculate basicand diluted EPS 38,110,876 (1,347,489)Weighted average number of ordinaryshares used in the calculation of thebasic earnings per share. 152,723,201 43,626,534Weighted average unlisted optionson issue 479,874Weighted average of ordinary sharesdiluted as at 30 June 2009 153,203,075Diluted earnings per share was not calculated for the year ended 30June 2008 as the result was anti-dilutive in nature.The annual report and accounts for the year ended 30 June 2009 willbe sent to shareholders by electronic means (or by post to thoseshareholders who have specifically requested a hard copy of theannual report) shortly and a copy will be available on the Company'swebsite thereafter - www.medusamining.com.au.ABOUT MEDUSA MINING LIMITEDMedusa Mining Limited ("Medusa" or the "Company"), a public companylisted on the ASX and AIM, is an Australian based gold producer,focussed solely on the Philippines.With total current resources of over 2,000,000 ounces of gold, Medusaaims to become a 300,000 to 400,000 ounce per year, low cost goldproducer. The Company is currently expanding its high grade Co-O Mineoperations (1,380,000 ounces at 10.8 g/t gold) to increase itproduction capacity to 100,000 ounces per year, and is conductingnear mine exploration to assess the possibilities of furtherexpansion to 200,000 ounces per year. Current cash costs at the Co-OMine are approximately US$200 per ounce. A pipe-line of deposits is now being established with theBananghilig Deposit (650,000 ounces at 1.3 g/t gold) which isexpected to expand, potentially in conjunction with new nearbydiscoveries.Further potential upside exists in the discovery of substantialcopper deposits within the tenement holding of > 800km2.+---+| |+---+JORC COMPLIANCE - CONSENT OF COMPETENT PERSONSCube Consulting Pty LtdInformation in this report relating to Mineral Resources hasbeen estimated and complied by Mark Zammit of Cube Consulting PtyLtd. Mr Zammit is a member of The Australasian Institute of Mining &Metallurgy and has sufficient experience that is relevant to thestyle of mineralisation and type of deposit under consideration andto the activity which he is undertaking to qualify as a CompetentPerson as defined in the 2004 Edition of the "Australian Code forReporting of Exploration Results, Mineral Resources and OreReserves". Mr Zammit consents to the inclusion in the report of thematters based on his information in the form and context in which itappears.Cube Consulting is an independent Perth based resource industryconsulting firm specialising in geological modelling, resourceestimation and information technology.Crosscut ConsultingInformation in this report that relates to Ore Reserves is based oninformation compiled by Declan Franzmann, B Eng (Mining), MAusIMM.Mr Franzmann is a full-time employee of Crosscut Consulting.Mr Franzman has sufficient experience which is relevant to the styleof mineralisation and type of deposit under consideration and to theactivity which they are undertaking to qualify as Competent Personsas defined in the 2004 Edition of the "Australasian Code forReporting of Exploration Results, Mineral Resources and OreReserves". Mr Franzmann consents to the inclusion in the report ofthe matters based on his information in the form and context in whichit appears.DISCLAIMERThis announcement contains certain forward-looking statements. Thewords 'anticipate', 'believe', 'expect', 'project', 'forecast','estimate', 'likely', 'intend', 'should', 'could', 'may', 'target','plan' and other similar expressions are intended to identifyforward-looking statements. Indications of, and guidance on, futureearnings and financial position and performance are alsoforward-looking statements. Such forward-looking statements are notguarantees of future performance and involve known and unknown risks,uncertainties and other factors, many of which are beyond the controlof Medusa, and its officers, employees, agents and associates, thatmay cause actual results to differ materially from those expressed orimplied in such statements. Actual results, performance or outcomesmay differ materially from any projections and forward-lookingstatements and the assumptions on which those assumptions are based.You should not place undue reliance on forward-looking statements andneither Medusa nor any of its directors, employees, servants oragents assume any obligation to update such information.---END OF MESSAGE---http://hugin.info/138050/R/1339709/320008.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 07.09.2009 - 08:01 Uhr
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