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Medusa Mining Ltd (MML)

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Wednesday 27 February, 2013

Medusa Mining Ltd

Half Yearly Report

RNS Number : 7709Y
Medusa Mining Limited
27 February 2013
 



MEDUSA MINING LIMITED

ABN 60 099 377 849

and Controlled Entities

 

 

HALF-YEAR FINANCIAL REPORT

 

31 DECEMBER 2012

 

 

This report should be read in conjunction with Medusa's Annual Report for the year ended 30 June 2012 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 2012

 

 

 

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 2012

 

 

Results for announcement to the market

Revenues and profits:


US$'000


US$'000

Revenues from ordinary activities

up 28%

11,455

to

52,363

Profit from ordinary activities after tax attributable to members

up 19%

4,611

to

28,598

Net profit for the period attributable to members

up 19%

4,611

to

28,598

(All comparisons to the previous period ended 31 December 2011)






Dividends:




Interim dividend

Amount per security

Franked amount per security

-  current period (half year ended 31 Dec 2012)

-  previous period (half year ended 31 Dec 2011)

Nil

A$0.05

Nil

Nil

No dividend will be paid in the current period.

Net tangible assets per share:

The net tangible assets per share as at 31 Dec 2012 was US$1.854 (31 Dec 2011: US$ 1.536)

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 the "game-changer" Saga Shaft is pulling rock from 350 metres below surface at Level 8 at increasing amounts as we push development laterally along veins and across the strike of the veins to expose as many veins as possible. Our interpretations show that the cross-cuts to the south from the bottom of the Saga Shaft should intersect 11 veins which will provide multiple headings from which to start drawing development ore. The cross-cutting is co-ordinated with two advancing ore passes using Alimak rises from Level 8 to Level 6, in addition to the completed winzed ore pass from Level 5 down to Level 8. These ore passes allow ore to be fed down to Level 8 and hauled up the Saga Shaft which is much more efficient than the older inclined shafts. This development changes the whole concept of the mine and over time will enable new efficiencies to be achieved.

 

The Baguio Shaft was refurbished and its capacity increased in July-August 2012 and now its depth is being extended from Level 3 to Level 5 to access additional ore and to reduce double ore handling. The next step will be to extend the Agsao Shaft from Level 5 to Level 8 which will be undertaken when Level 8 is fully operational.

 

The planning of a new deep shaft that I mentioned in my half year report last year has been postponed until later as re-configuring the haulage through deepening the inclined shafts and the success of our exploration has reduced the immediate need for the new deep shaft.

 

Exploration success has seen the resources for Co-O pass 2 million ounces for the first time. We aim to increase this to and maintain approximately 2.5 million ounces. As the conversion of Inferred Resources to Indicated Resources to Reserves through underground development averages 80%, we will aim to maintain a rolling 2 million ounces (from 2.5 million ounces) or 10 years of potential mineable material, including the current reserves.

 

Mill construction is on schedule and as at 31 January the new leach tank, installation of the crusher and the all the concrete foundations for the SAG mill were completed. The thickener upgrade and the detoxification plant are scheduled to be completed in February and the SAG mill lifted on to its foundations.

 

Complementary infrastructure construction completed includes a new senior staff accommodation building at the mine, a new central administration and combined accommodation building at the mill, a new geology office and combined accommodation, and a new central core farm.  Planned infrastructure in progress includes new junior staff quarters at the mill, a new maintenance workshop for trucks and heavy equipment, expansion of the mine-and-mill laboratory and the construction of a new laboratory specifically for exploration samples. Planning for additional tailings storage facilities is also in progress.

 

The difficulties of combining expansion and production from an old mill have continued, however we are confident we will achieve our timelines for the Co-O expansion.

 

The Bananghilig Deposit has continued to progress well with the publication in January of the first Indicated Resource of 608,000 ounces with the balance of 472,000 ounces still in the Inferred category. An additional 14 holes are in progress to convert the Inferred ounces to additional Indicated ounces. The current Indicated Resource will undergo pit optimisation studies and reserve estimations as the basis for a feasibility study to produce 200,000 ounces per year.

 

Our Co-O Mill expansion is on schedule, the Saga Shaft is in operation, and the Bananghilig Project is developing its own life in accordance with our initial aims and expectations.  All this would not be possible without the dedication of our own staff, contractors, consultants and construction supervisors and contractors. We continue to expand our community activities and maintain a safe working environment for the benefit of all our stakeholders.

 

 

DIRECTORS' REPORT

 

The Directors present their report together with the consolidated financial report for the half-year ended 31 December 2012 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

Mr Gary Powell

Director since February 2002

Director since July 2006

Director since February 2010

Director since 28 June 2011

Appointed 24 January 2013

Executives:


Mr Peter Hepburn-Brown (Managing Director)

Attorney Raul C Villanueva (Executive Director)

Director since September 2009

Appointed 24 January 2013

 

HIGHLIGHTS FOR THE SIX MONTHS:

 

Financials

 

Description

Unit

Dec 2012

Dec 2011

Variance

(%)

Revenues*

US$

$52.4 M

$40.9 M

$11.5 M

28%

EBITDA

US$

$35.3 M

$28.4 M

$6.9 M

24%

NPAT

US$

$28.6 M

$24.0 M

$4.6 M

19%

EPS (basic)

US$

$0.152

$0.127

$0.025

19%

 

Revenues of US$52.4 million compared to US$40.9 million for the corresponding period in the previous year, an increase of 28% due to marginal increase in both gold production and a higher average price received on sale of gold. Medusa is an un-hedged gold producer and received an average gold price of US$1,676 per ounce from the sale of 43,492 ounces of gold for the half-year to December 2012 (corresponding period to December 2011: 25,446 ounces at US$1,655 per ounce);

 

Earnings before interest, tax, depreciation and amortisation ("EBITDA") of US$35.3 million, (US$28.4 million in the prior corresponding period); an increase of 24%.

 

 Earnings per share ("EPS") of US$0.152 on a weighted average basis is based on NPAT of US$28.6 million (six months to December 2011: EPS of US$0.127 based on NPAT of US$24.0 million); an increase of 19%.

 

The Company remains debt free and had total cash, cash equivalent in gold on metal account and bullion on hand of US$15.8 million at 31 December 2012 (corresponding period to 31 December 2011: US$80.2 million). 

 

Dividends

 

The Board has temporarily suspended the payment of any dividend for the current fiscal year. In the previous half year to 31 December 2011, the Company paid an interim un-franked dividend of A$0.05 per share.

 

Operations

 

Description

Unit

Dec 2012

Dec 2011

Variance

(%)

Production

ounces

32,580

26,780

5,800

21%

Cash costs

US$/oz

$300

$261

($39)

(15%)

Gold price received

US$/oz

$1,676

$1,655

$21

1%

 

The Company produced 32,580 ounces of gold for the half-year, compared to 26,780 ounces from the previous corresponding period, at an average recovered grade of 7.82 g/t gold (six months to December 2011: 8.10 g/t gold);

 

Average cash cost for the half-year of US$300 per ounce, was higher than the previous corresponding period's costs of US$261 per ounce;

 

Production Guidance

 

The revised forecast gold production for the fiscal year to 30 June 2013 after taking into account current year to date production of 32,580 is now between 80,000 to 90,000 ounces at anticipated cash costs of US$250 per ounce.

 

A breakdown of actual and forecasted production ounces in calendar years (CY2011 to CY2016) and financial years (FY2012 to FY2017) is highlighted in tables below.

 

CALENDER YEARS

 

Jan to Dec

CY 2011 (Actual)

CY 2012 (Actual)

CY 2013

CY 2014

CY 2015

CY 2016

Co-O Mill

77,127

66,395

150-160,000

200,000

200,000

200,000

Bananghilig Mill

-

-

-

-

100,000

200,000

Total

77,127

66,395

150-160,000

200,000

300,000

400,000

 

FINANCIAL YEARS

 

Jul to Jun

FY 2012 (Actual)

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Co-O Mill

75,000

80-90,000

200,000

200,000

200,000

200,000

Bananghilig Mill

-

-

-

-

200,000

200,000

Total

75,000

80-90,000

200,000

200,000

400,000

400,000

 

 

 

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 IN THE PHILIPPINES

 

The new legislation on mining taxes and royalties is yet to be finalised by Congress

 

 

PRELIMINARY DEVELOPMENT TIMETABLE

 

To view the Preliminary Development Timetable, please see link at the end of this announcement.

 

MINERAL RESOURCES and ORE RESERVES

 

Following the estimation of the Indicated Resource for the Bananghilig Deposit, Table I shows the Company's Mineral Resources and Ore Reserves:

 

Table I. Mineral Resources and Ore Reserves

 

Deposit

Category

Tonnes

Grade

g/t gold

Ounces

gold

RESOURCES





Co-O Resources

Indicated

1,890,000

11.80

715,000


Inferred

4,325,000

9.40

1,304,000

Total Co-O Resources

Indicated & Inferred

6,215,000

10.10

2,019,000

Bananghilig Resources

Indicated

11,900,000

1.59

608,000

Inferred

9,000,000

1.62

472,000

Total Bananghilig Resources

Indicated & Inferred

20,900,000

1.60

1,080,000

TOTAL RESOURCES

Indicated & Inferred

27,115,000

3.55

3,099,000

Total Indicated Resources


13,790,000

2.99

1,323,000

Total Inferred Resources


13,325,000

4.15

1,776,000

RESERVES





Co-O RESERVES

Probable

1,820,000

9.70

568,000

 

Note:

 

(i) Resources include reserves

(ii) Co-O Mine ressources lower cut 3g/t gold, various upper cuts

(iii) Banaghilig Deposit lower cut 0.8g/t gold, various upper cuts

 

 

GOLD PRODUCTION

 

The production statistics for the six months to 31 December 2012 with comparatives for the December 2011 half year are summarised in Table II.

 

Table II. Gold production statistics

 

Description

Unit

Half-year ended                       31 Dec 2012

Half-year ended                  31 Dec 2011

Variance

(%)

Tonnes mined 

WMT

160,095

113,468

46,627

Ore milled

DMT

143,808

110,160

33,648

Recovered grade

gpt

7.82

8.10

(6.18)

Recovery

%

90%

93%

 (1%)

Gold produced 

ounces

32,580

26,780

5,800

Cash costs (1)

US$

$300

$261

 ($75)

Gold sold

ounces

43,492

25,446

18,046

Average gold price received

US$

$1,676

$1,655

 $21

 

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 2012 was 32,580 ounces of gold at an average grade of 7.82 g/t gold was marginally above last year's production of 26,780 ounces of gold at recovered grades averaging 8.10 g/t gold.

 

The average cash costs of US$300 per ounce, inclusive of royalties and local business taxes is higher than the previous period's average cash costs of US$261 per ounce.

 

Medusa, an un-hedged gold producer, sold 43,492 ounces of gold at an average price of US$1,676 per ounce during the period (corresponding period last year 25,446 at average price received of US$1,655 per ounce).

 

The revised production guidance for the fiscal year to 30 June 2013, following production of 32,580 ounces of gold for the half year to December 2012 is now between 80,000 to 90,000 ounces at anticipated cash costs of US$250 per ounce.

 

A breakdown of actual and forecasted production ounces in calendar years (CY2011 to CY2016) and financial years (FY2012 to FY2017) is highlighted in the tables below.

 

CALENDER YEARS

 

Jan to Dec

CY 2011 (Actual)

CY 2012 (Actual)

CY 2013

CY 2014

CY 2015

CY 2016

Co-O Mill

77,127

66,395

150-160,000

200,000

200,000

200,000

Bananghilig Mill

-

-

-

-

100,000

200,000

Total

77,127

66,395

150-160,000

200,000

300,000

400,000

 

 

FINANCIAL YEARS

 

Jul to Jun

FY 2012 (Actual)

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Co-O Mill

75,000

80-90,000

200,000

200,000

200,000

200,000

Bananghilig Mill

-

-

-

-

200,000

200,000

Total

75,000

80-90,000

200,000

200,000

400,000

400,000

 

 

Co-O MINE and MILL

 

Mine

 

Mine development and expansion achievements include

 

·     The commissioning of the 1,500 tonne per day Saga Shaft (Photo 1) has been completed and haulage is now underway from Level 8 (350 metres below surface). The current mine combined  shaft haulage capacity has now been boosted to 2,500 tonnes per day but the current mill capacity remains at approximately 1,000 tonnes per day until the new mill is completed;

 

·     The first ore-pass from Level 6 to Level 8 has been completed by winzing, and two others are underway using Alimaks;

 

·     The repair and upgrade of the Baguio Shaft was completed in the September quarter following a fire in July;  

 

·     Development is increasing from approximately 800 metres per month to >1,000 metres per month and will continue for the foreseeable future, resulting in a higher percentage of development ore in the mill feed to current mill.

 

 

Please see link at the end of this announcement to view Photo 1: Completed Saga Shaft headframe.

 

Mill

 

The current mill has continued to operate normally. Production for the financial year 2013 has been revised to 80,000 to 90,000 ounces. Updated planning and scheduling for the tie-in of the new mill to the existing facilities in the June quarter indicates that the tie-in period will take longer than the original time frame estimated, before construction commenced, of 2 to 3 weeks. This will result in reduced milling time due to interruptions and has been taken into account when re-estimating production guidance for the remainder of financial year 2013.

 

In November 2010 the Company approved the construction of a new mill with the capacity of 200,000 ounces per year. The status of the construction activities as at 30 January 2013:

 

·      conversion of the leaching circuit from Carbon-in-Pulp to Carbon-in-Leach to be completed in February;

 

·      crusher installed (Photo 2);

 

·      pipe racks for piping slurry from the SAG mill to the leaching circuit are advancing (Photo 3):

 

·      SAG mill installation on schedule;

 

·      de-toxification plant steel work advanced and to be completed in February;

 

·      upgrading of thickener to be completed in February;

 

·      installation of electrical supply systems to the mill is on schedule.

 

Photo 2 (please see link at the end of this announcement) shows the installed crusher on the right and emergency feed station on the left. The SAG mill foundations are behind the 150 tonne crane which will be used to lift the SAG mill components onto the concrete foundations.

 

Photo 3 (please see link at the end of this announcement) shows the pipe rack construction from SAG mill to leaching circuit on the left with the emergency feed station on the right.

 

Tailings Storage

 

Planning for tailings storage facility number 6 is in progress. 

 

Health and Safety

 

Lost time accident frequency rate (LTAFR) for the six months to 31 December 2012 is 0.9 including exploration. There were no breaches of any of the project's operating regulations during the period.

 

Co-O RESOURCES AND RESERVES 

 

On 6 August 2012 the Company announced the mineral resources as shown in Table III. 

 

Table III. Mineral Resource estimation as at 30 June 2012

 

Category

≥ 3 g/t gold

tonnes

g/t gold

ounces

Indicated Resources

1,890,000

11.8

715,000

Inferred Resources

4,325,000

9.4

1,304,000

TOTAL RESOURCES

6,215,000

10.1

2,019,000

 

The resource estimations were undertaken by Cube Consulting Pty Ltd (2012)

 

Notes:

 

(i) Various uppercuts have been applied on an individual vein basis; and

(ii) Resources are inclusive of reserves.

 

On 24 August 2012 the Company announced the mineral reserve as shown in Table IV.

 

Table IV. MineralReserve estimation as at 30 June 2012

 

Category

≥ 3 g/t gold

tonnes

g/t gold

ounces

Probable Reserves

1,820,000

9.7

568,000

 

The reserve estimation was undertaken by Carras Mining Pty Ltd (2012)

 

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 2012. 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 8 August 2012 and has focused on extending the Co-O Vein system along the eastern and western sides of the resource model. Results from a total of 52 surface drill holes for 35,989 metres and 40 underground drill holes for 8,147 metres have been completed since the resource estimation.

 

Tables V and VI summarise the intersections ≥ 0.5 metres at ≥ 3 g/t gold from the announcement of 21 February 2013 which contains more detailed assay information and maps showing the location of these drill holes.

 

Table V. Surface drill hole results ≥0.5 g/t gold at ≥3.0 metres downhole for previously completed holes designated †

 

Hole number

East

North

End of hole (metres)

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (g/t gold)

 

 

EXP 163†

614842

913100

800.10

-55

180

764.15

1.45

3.13*

 







771.45

0.85

11.14*

 

EXP 170

613251

913109

501.10

-50

180

127.10

1.00

3.26*

 

EXP 172

614711

913081

994.60

-64

180

364.30

1.00

4.55*

 







745.90

1.00

4.82*

 







897.80

1.35

8.31*

 







917.55

2.00

4.59*

 

EXP 173

614798

913152

800.00

-60

180

309.50

0.80

3.31*

 







429.60

2.45

6.83*

 







510.50

1.00

4.60*

 







540.10

0.50

20.10*

 

EXP 174

614898

913255

707.10

-62

180

447.20

1.50

9.31*

 







512.80

6.40

4.72*

 







558.60

0.50

11.15*

 

EXP 175†

614545

913270

1,004.10

-63

180

222.15

1.05

4.67*

 







450.60

1.20

5.29*

 







593.35

1.45

21.97*

 







654.45

1.65

3.34*

 

EXP 176

613331

913150

551.10

-61

180

184.40

1.25

4.35*

 

EXP 177

614756

913168

809.10

-60

180

323.55

0.95

4.78*

 







395.50

1.30

4.04*

 







406.50

3.70

3.27*

 







416.15

1.00

6.33*

 







426.05

2.55

10.85*

 







431.60

2.60

5.62*

 







516.35

1.50

3.59*

 

EXP 178

614733

913224

815.10

-60

180

454.00

1.70

30.25*

 







494.55

0.50

5.23*

 







506.30

1.00

10.50*

 







510.60

0.60

30.07*

 







531.20

4.30

4.86*

 

EXP 181

613555

913087

92.60

-50

180

71.40

0.60

4.03*

 







79.70

1.00

3.47*

 

 

Hole number

East

North

End of hole (metres)

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (g/t gold)

EXP 184

613451

913197

716.10

-50

180

92.80

1.20

3.68*

EXP 191

614600

913386

983.10

-55

180

929.20

2.60

6.83*

EXP 192

614552

913376

989.10

-62

180

106.40

4.00

16.26*

EXP 194

613450

913197

935.10

-60

180

582.60

0.60

4.55*







639.60

6.00

3.55*







824.45

1.00

13.98*

EXP 195

614695

913409

1,100.10

-57

180

153.60

2.00

3.98*







346.55

1.25

6.37*







349.80

2.00

3.75*







429.60

1.00

5.70*







586.10

1.00

5.93*







608.10

1.20

4.90*

EXP 197

613560

913094

101.70

-50

180

19.00

1.70

13.21*







99.40

1.20

3.11*

EXP 199

613561

913098

101.90

-50

180

97.95

2.75

5.69*

EXP 201

614948

913350

863.10

-51

180

530.35

0.85

7.49*







609.95

2.15

4.01*







677.80

1.30

10.75*

EXP 204

614901

913407

803.10

-57

180

630.25

1.00

6.80*

EXP 206

613701

913346

878.10

-51

180

847.60

2.05

3.13*

EXP 211

615098

913402

668.10

-50

180

604.05

1.40

3.98*

EXP 219

614840

913421

1,066.10

-45

180

593.15

1.20

10.96*

EXP 222

613551

913306

908.10

-50

180

131.30

3.40

19.81*







803.65

0.60

19.60*







805.70

4.40

4.15*

 

Notes:

(i) Intersection widths are downhole drill widths not true widths;

(ii) Assays denoted by (*) are by Philsaga Mining Corporation's laboratory;

(iii) Grid coordinates based on the Philippine Reference System 92.

 

Table VI. Underground drill hole results > 3 g/t gold and > 0.5 metres downhole for new holes and previously completed holes designated †

 

Hole number

East

North

End of hole (metres)

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (g/t gold)

 

 

LEVEL 1









 

L1-69W-015

613284

912929

111.20

3

214

61.40

0.20

10.08*

 

LEVEL 2









 

L2-2E-002

614001

912884

102.90

3

169

18.90

1.20

4.46*

 

L2-2E-005

614002

912890

93.10

3

11

66.90

0.70

17.83*

 

L2-2E-006

614003

912889

110.40

3

42

16.00

0.50

178.15*

 







57.60

0.50

5.47*

 

L2-10W-002

613919

913145

92.40

3

294

64.00

0.90

4.55*

 

LEVEL 5









 

L5-20W-008

613919

913145

92.40

3

328

2.00

1.00

8.87*

 







150.85

2.75

14.94*

 

L5-20W-009

613762

912854

356.80

-32

152

2.40

1.30

12.59*

 







213.20

0.30

9.27*

 

L5-20W-010

613763

912854

353.30

-30

148

2.20

2.30

12.36*

 







131.80

0.30

3.67*

 







227.35

0.45

3.53*

 

L5-20W-011

613763

912854

326.50

-50

140

3.30

1.60

5.92*

 







107.50

0.50

19.3*

 







112.45

2.80

3.39*

 







170.20

0.30

3.36*

 







212.45

3.80

7.13*

 

 

 

Hole number

East

North

End of hole (metres)

Dip  (°)

Azimuth (°)

From (metres)

Width (metres)

Grade (uncut)     (g/t gold)

LEVEL 5









L5-35W-107

613608

912813

294.50

0

134

1.23

0.37

6.10*







30.52

0.33

15.20*







54.85

0.20

88.40*







62.50

0.25

20.99*

L5-42E-016

614380

912691

435.10

-23

324

125.30

0.30

3.08*







179.25

0.50

7.17*







185.25

1.00

3.13*

L5-42E-017

614381

912691

404.80

-32

332

18.60

0.30

16.07*







139.55

1.30

27.62*







156.00

0.20

7.33*







159.90

0.50

8.28*







187.50

3.50

3.89*







197.60

1.20

16.55*







341.80

2.00

12.15*

L5-42E-018

614382

912691

378.00

-23

359

84.90

0.55

8.30*







109.60

1.90

7.94*







243.40

1.15

4.72*







271.60

3.00

19.08*

L5-42E-019

614383

912691

401.60

-23

14

93.10

1.55

6.41*







356.00

3.80

11.75*

L5-42E-020

614384

912691

376.50

-23

26

88.20

0.50

32.93*







126.90

0.20

7.12*







136.65

0.95

8.17*







253.30

0.30

10.90*







293.50

0.50

13.03*

L5-42E-021

614385

912690

399.40

-23

29

38.80

0.40

3.22*







60.10

0.40

20.40*







87.00

0.40

8.60*







131.10

1.20

749.88*







161.65

2.25

12.74*







278.55

3.65

11.33*







295.20

0.80

4.72*

L5-42E-022

614377

912690

404.40

-43

305

147.60

1.40

13.19*







156.00

1.00

4.55*







179.05

1.00

4.04*







228.00

2.30

19.25*

L5-42E-023

614378

912690

428.00

-43

309

412.55

0.35

5.63*

L5-42E-024

614379

912691

425.40

-43

316

38.30

0.40

28.10*







143.95

0.70

3.36*







186.60

0.30

5.00*

L5-42E-025

614380

912691

379.00

-43

328

32.60

0.40

20.07*







75.35

0.75

12.56*

LEVEL 6









L6-13E-001

614187

912929

121.20

3

28

33.80

1.00

10.70*







69.15

0.35

3.73*







88.00

0.60

4.64*

L6-23E-033†

614207

912726

110.80

0

225

8.40

4.80

26.28*

L6-23E-034†

614213

912726

111.00

0

113

20.50

0.20

97.23*

 

Notes:

(i) Intersection widths are downhole drill widths not true widths;

(ii) Assays denoted by (*) are by Philsaga Mining Corporation's laboratory;

(iii) Grid co-ordinates based on the Philippine Reference System 92.

 

TAMBIS-BAROBO AREA

 

BACKGROUND

 

The Tambis Project, containing the Bananghilig Gold Deposit as shown on Figures 1 and 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 area has been known as an alluvial 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 with the aim of extending the initial Inferred Resource of 650,000 ounces 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. 

 

The Bananghilig Deposit detailed geological and mineralisation descriptions are contained in the announcement dated 12 September 2011, and additional drilling results are contained in the announcements dated 17 January 2012, 8 August 2012 and 21 November 2012. As there are a large number of intersections reported in these announcements, they have not been repeated in this half yearly report.

 

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 epithermal mineralisation 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 to the south and east by younger marine limestones and basal mudstones. 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 with seven surface rigs and continued through until October 2012 when infill drilling was completed for Indicated Resources estimations. An additional programme of 14 infill holes recently commenced to convert additional resources to the Indicated Resource category.

 

Resources

 

An inferred resource was published on 8 August 2012 of 1,100,000 ounces of gold at a grade of 1.63 g/t gold in 21,000,000 tonnes using a 0.8 g/t gold cut-off.

 

Following completion of infill drilling in October 2012 and subsequent detailed surveying of artisanal workings, a new resource was published on 29 January 2013 as shown in Table VII. Figure 3 shows the Bananghilig geology and the projection of the resources to surface, and figure 4 shows a cross-section through the deposit showing 5 metres x 5 metres x 2 metres resource blocks represented by coloured dots.

 

Table VII. Mineral Resource estimation as at 29 January 2013

 

Category

≥0.8 g/t gold

tonnes

g/t gold

ounces

Indicated resources

11,900,000

1.59

608,000

Inferred resources

9,000,000

1.62

472,000

TOTAL RESOURCES

20,900,000

1.60

1,080,000

 

The resource estimation was undertaken by Cube Consulting Pty Ltd (2013)

 

Notes:

 

(i) A lower cut of 0.8g/t gold and various uppercuts were applied; and

(ii) Resources are inclusive of reserves.

 

 

Figure 3 (please see link at the end of this announcement) shows the Bananghilig regional surface geology map showing the projection of the resource to surface and cross-section line 10710N.

 

Figure 4 (please see link at the end of this announcement) shows the Bananghilig Deposit cross section through line 10710N showing the resource blocks.

 

USA PROJECT

 

The Usa prospect 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. 

 

The project has been terminated due to poor economics.

 

SAUGON PROJECT

 

FIRST HIT VEIN

 

Background

 

Figure 2 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

 

Work has focussed on regional mapping and detailed mapping, trenching and sampling of new veins with the aim of adding to the available mineralisation in the area.

 

FINANCIALS

 

Medusa recorded a net profit after tax ("NPAT") of US$28.6 million and earnings before interest, tax depreciation and amortisation ("EBITDA") of US$35.3 million for the half year to 31 December 2012, compared to US$24.0 million and US$28.4 million respectively in the previous corresponding period.

 

The Company recorded Revenues of US$52.4 million compared to US$40.9 million in the previous corresponding period. Medusa is an un-hedged gold producer and received an average price of US$1,676 per ounce from the sale of 43,492 ounces of gold for the half-year to December 2012 (previous corresponding period: 25,446 ounces at US$1,655 per ounce).

 

The marginal increase in NPAT, EBITDA and Revenues is directly linked to a slight improvement in gold production (32,580 ounces compared to 26,780 ounces). The Co-O Mine has been pre-dominantly in development mode since July 2011 to prepare for the anticipated future production increase and all development ore mined has been treated through the mill. A reduction in haulage capacity with the refurbishment of the Baguio Shaft (following a fire) and inclement weather experienced in December 2012 has impacted on mining activities and mill throughput, contributing to lower than expected gold production.

 

As at 31 December 2012, the Company which is debt free, had total cash, cash equivalent in gold on metal account and bullion on hand of approximately US$15.8 million (Dec 2011: US$80.2 million).

 

During the half-year:

 

·   The Company recorded Revenue of US$52.3 million from gold and silver sales (Dec 2011 half-year: gold and silver sales of US$40.6 million and interest of US$0.3 million);

·   Depreciation and amortisation was higher at US$6.7 million, compared with US$4.5 million in the December half of 2011;

·    US$14.6 million outlay on exploration expenditure, including US$9.8 million on the Co-O Mine (Dec 2011 half-year: US$15.9 million, including US$8.3 million for the Co-O Mine);

·   US$23.5 million was spent on sustaining capital at mine and mill and capital works associated with the new mill construction and infrastructure (Dec 2011 half-year: US$9.0 million); and

·   Incurred US$15.8 million on general and accelerated mine development costs, inclusive of shaft sinking costs (Dec 2011 half-year: on general and accelerated mine development costs, inclusive of shaft sinking costs of US$14.7 million).

 

CORPORATE

 

Dividend

 

The Board has temporarily suspended the payment of any dividend for the current fiscal year. In the previous half year to 31 December 2011, the Company paid an interim un-franked dividend of A$0.05 per share.

 

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 Non-Executive 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 2012.

 

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 27th day of February 2013.

 

 

AUDITOR'S INDEPENDENCE DECLARATION

 

 

 

 

 

 

 

 

 

 

 

Grant Thornton Audit Pty Ltd

ACN 130 913 594

 

10 Kings Park Road

West Perth WA 6005

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

2012, 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 thereview; and

 

 

b       no contraventions of any applicablecode of professional conduct in relation to the review.

 

 

 

 

 

 

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

 

 

 

P W Warr

Partner - Audit & Assurance

 

 

Perth, 27 February 2013

 

 

 

 

 

 

 

 

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not aworldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

 

Liability limited bya scheme approved under Professional Standards Legislation

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

for the half-year ended 31 December 2012

 



Consolidated Group



31 Dec 2012

31 Dec 2011


Note

US$ 000

US$ 000

Revenue

2

52,363

40,908

Cost of sales


(18,175)

(10,663)

Administration expenses


(4,665)

(4,609)

Other expenses


(925)

(1,574)

Profit before income tax expense


28,598

24,062

Income tax expense


-

(75)

Profit for the period after income tax expense


28,598

23,987





Other comprehensive income:




Exchange differences on translation of foreign operations (net of tax)

7,507

(2,323)

Total comprehensive income


36,105

21,664





Overall operations:




Basic earnings per share


0.152

0.127

Diluted earnings per share


0.152

0.127

 

The accompanying condensed notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2012

 

 

 



Consolidated Group



31 Dec 2012

30 June 2012


Note

US$ 000

US$ 000

CURRENT ASSETS




Cash & cash equivalents


8,834

12,468

Trade & other receivables


37,667

55,964

Inventories


14,375

14,643

Other current assets


152

707

Total Current Assets


61,028

83,782

NON-CURRENT ASSETS




Property, plant & equipment


86,741

63,929

Exploration, evaluation and development expenditure


215,443

182,897

Deferred tax assets


1,632

1,632

Total Non-Current Assets


303,816

248,458

TOTAL ASSETS


364,844

332,240

CURRENT LIABILITIES




Trade & other payables


14,054

14,876

Provisions


1,050

920

Total Current Liabilities


15,104

15,796

NON-CURRENT LIABILITIES




Provisions


536

520

Deferred tax liability


257

257

Total Non-Current Liabilities


793

777

TOTAL LIABILITIES


15,897

16,573

NET ASSETS


348,947

315,667

EQUITY




Issued capital

5

73,070

73,070

Reserves


32,367

23,760

Retained profits


243,510

218,837

TOTAL SHAREHOLDERS' EQUITY


348,947

315,667

 

The accompanying condensed notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half-year ended 31 December 2012

 


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 01.07.2011

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 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

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 and performance rights 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

 

The accompanying condensed notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the half-year ended 31 December 2012

 



Consolidated Group



31 Dec 2012

31 Dec 2011



US$ 000

US$ 000

CASH FLOWS FROM OPERATING ACTIVITIES




Receipts from customers


73,330

42,403

Payments to suppliers and employees


(18,504)

(14,649)

Interest received


29

285

Net cash provided by operating activities


54,855

28,039

CASH FLOWS FROM INVESTING ACTIVITIES




Purchase of non-current assets


(24,360)

(12,824)

Payments for exploration expenditure and tenements


(5,906)

(16,725)

Payments for development activities


(18,658)

(14,493)

Net cash (used in) investing activities


(48,924)

(44,042)

CASH FLOWS FROM FINANCING ACTIVITIES




Proceeds from issue of shares


-

789

Payments for dividends


(3,925)

(9,338)

Net cash (used in) financing activities


(3,925)

(8,549)

Net (decrease) in cash held


     2,006

   (24,552)

Cash at beginning of period


12,468

62,431

Exchange rate adjustments


(5,640)

164

Cash at end of period


8,834

38,043

 

The accompanying condensed notes form part of these financial statements

 

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

for the half-year ended 31 December 2012

 

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 2012 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 2012 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 2012 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 2012.

 

This consolidated interim financial report was approved by the Board of Directors on 26 February 2013. 

 

(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 2012.

 

(c) Significant events and transactions

 

During the six months the Company experienced an increase in Revenues which is directly linked to an increase in gold production (32,580 ounces compared to 26,780 ounces). The Co-O mine has been predominantly in development mode since July 2011 to prepare for anticipated future production increase.

 

The Group's objectives and policies for managing capital, credit risk and liquidity risk are described in its recent annual financial statements.

 

(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.

 

Note 2: Profit for the period

 



Consolidated Group



31 Dec 2012

31 Dec 2011



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


27

292

Gold and silver sales


52,327

40,603

Other


9

6

Expense items:




Depreciation


3,203

2,591

Amortisation


3,507

2,308

Employee benefits expense


2,933

4,378

Recognition of share based payments


1,100

1,132

 

Note 3: Dividends

 

Unfranked dividend of A$0.02 a share (2011: 5 cents a share, declared on 29 August 2011 and paid on 30 September 2011) was declared on 29 August 2012 and paid on 4 October 2012.


3,925

9,338

 

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 2012:





Segment revenue

52,327

-

36

52,363

Segment result

32,069

(16)

(3,455)

28,598

6 months to December 2011:





Segment revenue

40,603

-

305

40,908

Segment result

28,807

(10)

(4,810)

23,987

Segment Assets and Liabilities





31 December 2012:





Segment assets

355,386

4,127

3,699

363,212

Reconciliation of segment assets to group assets





add -





Deferred tax assets




1,632

Total group assets




364,844






Segment liabilities

11,860

2

3,778

15,640

Reconciliation of segment liabilities to group liabilities





add -





Deferred tax liabilities




257

Total group liabilities




15,897

30 June 2012:





Segment assets

322,651

4,004

3,953

330,608

Reconciliation of segment assets to group assets





add -





Deferred tax assets




1,632

Total group assets




332,240






Segment liabilities

13,273

8

3,305

16,316

Reconciliation of segment liabilities to group liabilities





add -





Deferred tax liabilities




257

Total group liabilities




16,573

 


Consolidated Group


31 Dec 2012

30 Jun 2012

31 Dec 2012

30 Jun 2012


(shares)

(shares)

US$ 000

US$ 000

Note 5:  Issued Capital





Ordinary shares on issue 

188,903,911

188,903,911

73,070

73,070

 





Opening balance

73,070

71,990

add -



Shares issued during the period

-

789

Transfer from option Reserve

-

-

-

291


188,903,911

188,903,911

73,070

73,070

Movement in ordinary shares during the half-year:





-  Balance at beginning of the period

73,070

71,990

-  Options converted to ordinary shares at A$1.25 each

-

668

-  *Bonus share issued on the basis of 1 for every 10 options converted

-

-

-  Options converted to ordinary shares at A$4.40 each

-

121

Transfer from option reserve

-

-

            -

291


188,903,911

188,903,911

73,070

73,070

 

* 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 2012

30 Jun 2012

31 Dec 2012

30 Jun 2012


(options)

(options)

US$ 000

US$ 000

Note 6: Option and Performance Rights  Reserve





Option and Performance Rights Reserve

1,965,000

1,965,000

4,840

3,740






Opening balance

1,965,000

750,000

3,740

1,689

less -





Options exercised

-

(610,000)

-

(291)

add -





Options issued - exercisable at A$4.40 each

-

1,825,000

-

-

Share options and performance rights recognised during the period in accordance with AASB 2 - share based payments

-

-

1,100

2,342


1,965,000

1,965,000

4,840

3,740

 

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 2012 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 2012.

 

Note 10: Events subsequent to reporting date

 

There has not arisen in the interval between the half-year ended 31 December 2012 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 30:

 

(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 2012 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 27th day of February 2013

 



 

 

Independent Auditors Review Report

 

 

 

 

 

Grant Thornton Audit Pty Ltd

ACN 130 913 594

 

10 Kings Park Road

West Perth WA 6005

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 2012, and the statement of 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 ofthe consolidated entity, comprising both the Company and theentities it controlled at the half-year's end or from time totime 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 internal control as the directors determine is necessary to enable the preparation of the half-year financial report thatis free from material misstatement, whether due to fraud or error.

 

Auditor'sresponsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our reviewWeconducted 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 thehalf-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 asat 31

December 2012 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.  Asthe auditor of Medusa Mining Limited, ASRE 2410 requiresthat we

comply with the ethical requirements relevant to the audit of the annual financial report.

 

 

 

 

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

 

Liability limited by a scheme approved under Professional Standards Legislation

 

 

 

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial andaccounting 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, wedo 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'financial position as at31

December 2012 and of its performance for the half-year ended on that date; and

 

 

b       complyingwith 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 2013

 

 

 

 

 

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/7709Y_-2013-2-27.pdf 

 

 

 

 

 

 


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