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Medusa Mining Ltd (MML)

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Tuesday 21 February, 2012

Medusa Mining Ltd

Half Yearly Report

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

 

Name of entity

MEDUSA MINING LIMITED

 

ABN or equivalent company reference

Half yearly (tick)

Preliminary final (tick)

Half year/ financial ended ("current period")

60 099 377 849


31 December 2011

 

 

Results for announcement to the market

Revenues and profits:


US$'000


US$'000

Revenues from ordinary activities

down 48%

37,395

to

40,908

Profit from ordinary activities after tax attributable to members

down 59%

34,095

to

23,987

Net profit for the period attributable to members

down 59%

34,095

to

23,987

(All comparisons to the previous period ended 31 December 2010)


Dividends:

 

Interim dividend

Amount per security

Franked amount per security

-  current period

-  previous period (half year ended 31 Dec 2010)

A$0.05

A$0.05

Nil

Nil

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)

Dr Robert M Weinberg

Mr Andrew Boon San Teo

Mr Ciceron A Angeles

Director since February 2002

Director since July 2006

Director since February 2010

Director since 28 June 2011

Executives:


Mr Peter Hepburn-Brown (Managing Director)

 

Director since September 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

(%)

Revenues

US$

$40.9 M

$78.3 M*

($37.4 M)

(48%)

EBITDA

US$

$28.4 M

$63.3 M

($34.9 M)

(55%)

NPAT

US$

$24.0 M

$58.1 M

($34.1 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 ASX)

: 05 March 2012

Ex-Dividend Date (on LSE)

: 07 March 2012

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 ended                       31 Dec 2011

Half-year ended                  31 Dec 2010

Variance

(%)

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 gold

ounces

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 gold

ounces

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 number

East

North

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (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 number

East

North

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (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 (metres)

Width (metres)

Grade (uncut)     (g/t gold)

 

 








 

613416

912949

0

322

3.80

0.60

11.17 (*)

 

614057

913020

0

231

72.05

0.75

6.50 (*)

 








 

613985

912881

0

152

108.55

2.40

24.34 (*)

 








 

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 ASX)

: 05 March 2012

Ex-Dividend Date (on LSE)

: 07 March 2012

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

 


Share Capital

Ordinary

Retained Profits

Other Reserves

(refer note 6)

Foreign Currency Translation 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$ 000

US$ 000

US$ 000

US$ 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 2011

30 Jun 2011

31 Dec 2011

30 Jun 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 2011

30 Jun 2011

31 Dec 2011

30 Jun 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 at A$4.40 each (refer below)

-

150,000

-

-

 

Options issued - exercisable at A$8.10 each

 

575,000

 

-

 

-

 

-

 

Performance Rights Issued (Refer Note 9)

 

250,000

 

-

 

-

 

-

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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