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Medusa Mining Ltd (MML)

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Thursday 27 February, 2014

Medusa Mining Ltd

Half Yearly Report

RNS Number : 0352B
Medusa Mining Limited
27 February 2014
 

 

 

MEDUSA MINING LIMITED

("Medusa" or the "Company")

ABN 60 099 377 849

and Controlled Entities

 

 

HALF-YEAR FINANCIAL REPORT

 

31 DECEMBER 2013

 

 

This report should be read in conjunction with Medusa's Annual Report for the year ended 30 June 2013 and any announcements made by the Company during the interim reporting period, as it does not include all the notes of the type normally included in an annual financial report.

 

Appendix 4D

 

Half year report

For the 6 months ended 31 December 2013

 

 

 

Name of entity

 

ABN or equivalent company reference


Half yearly (tick)


Preliminary final (tick)


Half year/ financial ended ("current period")





31 December 2013

 

 

Results for announcement to the market

Revenues and profits:


US$'000


US$'000

Revenues from ordinary activities

Down 35%

52,363

to

33,998

Profit from ordinary activities after tax attributable to members

Down 55%

28,598

to

13,020

Net profit for the period attributable to members

Down 55%

28,598

to

13,020

(All comparisons to the previous period ended 31 December 2012)






Dividends:




Interim dividend

Amount per security

Franked amount per security

current period (half year ended 31 Dec 2013)

previous period (half year ended 31 Dec 2012)

Nil

Nil

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 2013 was US$2.006 (31 Dec 2012: US$ 1.854)

Change in control of entities:

There has been no change in control, either gained or loss during the current period.

Associates and Joint Venture entities:

The Consolidated Group did not have a holding in any associates or joint venture entities during the current period.

 

MANAGING DIRECTOR'S ADDRESS

 

For the half year ended 31 December 2013, I am pleased to report that the mill is in the final phase of commissioning and that mining operations are able to meet the increased throughput requirements for the ensuing periods ahead.

 

The six month period to 31 December 2013 proved challenging to get the new Co-O SAG Mill fully operational.   The start-up of the new mill was delayed due to the installation of faulty powercells which were repaired and re-installed in early December.  The SAG mill operated for the rest of December without any interruptions and is currently running at approximately 2,000 tonnes per day.

 

The detoxification circuit, thickener, CIL tanks, gold room and associated equipment for "wet" processing are all fully operational. Planning for additional tailings storage facilities is completed and construction is planned to commence after the wet season in the March 2014 quarter.

 

Complementary infrastructure construction completed includes a new junior staff accommodation, assay laboratory and metallurgy offices.

 

At the Co-O Mine, the L8 Shaft is pulling ore and waste from Level 8 (350 metres below surface). Rock passes from Levels 6 and 7 to Level 8 are operating and allow ore and waste from these levels to be hoisted from Level 8. Level development continued on Level 8 and all veins in the resource model were intersected and are being developed. The Don Pedro veins near the L8 Shaft are being developed and stoped while development continues on Levels 1 to 7 concurrent with production stoping.

 

The Baguio Shaft has been deepened to Level 5 to access additional ore on the west side of the mine and to reduce double handling.

 

The Bananghilig area has continued to progress well with drilling re-commenced between the Bananghilig Deposit and the B2 discovery with the view of combining the two areas. Sterilisation and geotechnical drilling and associated technical work were completed.

 

The extreme wet weather during December 2013 and January 2014 caused damage to the haul road between the mine and mill. A works program is in place to repair the haul road after the wet season as well as to develop alternative road access. 

 

There were no Lost Time Incidents between July and December 2013, however as advised to the market on 13 February 2014, regretfully a fatality happened in a stope underground. The Lost Time Incidents Frequency Rate ("LTIFR") for the past 4 years to 31 December 2013 stands at 0.10 compared to the Western Australian LTIFR for the mining industry of 2.0 for 2012-13.

 

The Company has provided rescue and relief efforts in response to natural disasters that struck the Philippines last calendar year. The Co-O Mine Rescue Team provided rescue aid to the Bohol earthquake victims and relief support to the local communities on the island of Leyte after the devastation caused by Typhoon Haiyan (Yolanda).

 

The company continues to support the local communities through employment, (99% Filipino workforce), education (scholarships, school expenditure and adopt-a-school supporting over 5,500 students), health and essential infrastructure.

 

DIRECTORS' REPORT

 

The Directors present their report together with the consolidated financial report for the half-year ended 31 December 2013 and the review report thereon: 

 

DIRECTORS:

 

The Directors of the Company at any time during or since the end of the half-year are:

 

Name

Period of Directorship

Non-Executives:


Mr Andrew Boon San Teo (Non-Executive Chairman) (1)

Dr Robert M Weinberg

Mr Ciceron A Angeles

Mr Gary Powell

Mr Geoffrey J Davis (2)

since 15 February 2010

since 01 July 2006

since 28 June 2011

since 24 January 2013

retired 22 November 2013

Executives:


Mr Peter Hepburn-Brown (Managing Director)

Mr Raul C Villanueva

since 15 September 2009

since 24 January 2013

 

Notes:

(1) Mr Teo was appointed Non-Executive Chairman on 22 Nov 2013

(2) Mr Davis was Non-Executive Chairman from 09 Jun 2011 to 22 Nov 2013. Prior to that Mr Davis was Managing Director from 05 Feb 2002 to 09 Jun 2011

 

 

HIGHLIGHTS FOR THE SIX MONTHS:

 

Financials

 

Description

Unit

Dec 2013

Dec 2012

Variance

(%)

Revenues

US$

$34.0 M

$52.4 M

($18.4 M)

(35%)

EBITDA

US$

$19.4 M

$35.3 M

($15.9 M)

(45%)

NPAT

US$

$13.0 M

$28.6 M

($15.6 M)

(55%)

EPS (basic)

US$

$0.067

$0.152

($0.085)

(56%)

 

Revenues of US$34.0 million compared to US$52.4 million for the corresponding period in the previous year, a decrease of 35% due to a decrease in both gold production and a lower average price received on sale of gold. Medusa is an un-hedged gold producer and received an average gold price of US$1,304 per ounce from the sale of 27,334 ounces of gold for the half-year to December 2013 (corresponding period to December 2012: 43,492 ounces at US$1,676 per ounce).

 

Earnings before interest, tax, depreciation and amortisation ("EBITDA") of US$19.4 million, (US$35.3 million in the prior corresponding period), a decrease of 45%.

 

Earnings per share ("EPS") of US$0.067 on a weighted average basis is based on NPAT of US$13.0 million (six months to December 2012: EPS of US$0.152 based on NPAT of US$28.6 million), a decrease of 56%.

 

The Company had total cash, cash equivalent in gold on metal account and bullion on hand of US$20.8 million at 31 December 2013 (corresponding period to 31 December 2012: US$15.8 million), an increase of 32%. 

 

Dividends

No dividend will be payable for the half year to 31 December 2013 (No dividend was payable for the previous half year to 31 December 2012).

 

Operations

Description

Unit

Dec 2013

Dec 2012

Variance

(%)

Production

ounces

26,089

32,580

(6,491)

(20%)

Cash costs

US$/oz

$422

$300

($122)

(41%)

Gold price received

US$/oz

$1,304

$1,676

($372)

(22%)

 

The Company produced 26,089 ounces of gold for the half-year, compared to 32,580 ounces from the previous corresponding period, at an average recovered grade of 5.07 g/t gold (six months to December 2012: 7.82 g/t gold).

 

Average cash cost for the half-year of US$422 per ounce, was higher than the previous corresponding period's costs of US$300 per ounce due to delayed new mill commissioning and previously highlighted operational issues with the old plant.

 

Production Guidance

The revised forecast gold production for the fiscal year to 30 June 2014 after taking into account current year to date production of 26,089 is now between 70,000 to 80,000 ounces at anticipated cash costs of US$400 per ounce.

 

The production guidance for FY 2015 is between 140,000 to 160,000 ounces and from FY 2016 onwards, 160,000 to 200,000 ounces per annum.

 

 

OPERATIONS OVERVIEW

 

The locations of the Company's projects are shown on Figures 1 and 2 (please see link at the end of this announcement).

 

 

EXECUTIVE ORDER ON MINING SECTOR REFORMS IN THE PHILIPPINES

 

On 06 July 2012, Philippine President Benigno Aquino III signed Executive Order No. 79 entitled "Institutionalizing and Implementing Reforms in the Philippine Mining Sector Providing Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources" ("EO 79").

 

On 10 September 2012, the Department of Environment and Natural Resources ("DENR") issued Administrative Order No. 2012-07 ("Rules and Regulations to Implement EO-79" or "EO-79 IRR"), and on 08 October 2012, issued Administrative Order No. 2012-07-A2 ("EO-79 Amended IRR") to revise Sections 3, 7 and 9 of EO-79 IRR. EO-79 IRR and its amendments took effect on October 25, 2012.

 

The implications of the EO-79 with regards to the Company's projects are discussed in the June 2012 and September 2012 quarterly reports to the ASX. There has been no change in the Company's view since then.

 

On 07 March, 2013, the Secretary of the Department of Environment and Natural Resources (DENR) approved the lifting of the moratorium on acceptance of applications for Exploration Permits and Financial and Technical Assistance Agreements.

 

The new legislation on mining taxes and royalties is yet to be finalised for submission to Congress.

 

EXECUTIVE ORDER ON EXTRACTIVE INDUSTRIES TRANSPARENCY IN THE PHILIPPINES

 

On 26 November 2013, Philippine President Benigno Aquino III signed Executive Order No. 147 entitled "Creating the Philippine Extractive industries transparency Initiative" ("EO 147").

 

Pursuant to Section 14 of the EO 79, the Philippine government commits to participate in the Extractive Industries Transparency Initiative ("EITI") that sets international standards for transparency and accountability in the extractive industries and in government. Established in 2003, the EITI is a global coalition of governments, companies and civil society collaborating to improve honest and responsible management of revenues from natural resources, particularly oil, gas, metals and minerals.

 

Through EO 147, the Philippine government has instituted the Philippine Extractive Industries Transparency Initiative ("PH-EITI"), which commits to ensure greater transparency and accountability in the extractive industries, specifically in the way the government collects, and companies pay taxes from extractive industries;

 

The implications of the EO 147 with regards to the Company's projects are not considered to have any negative impact and the Company sees the Executive Order as a positive commitment by the Philippine Government to adopt good governance practices in accordance with International Guidelines of the EITI.

 

 

MINERAL RESOURCES AND ORE RESERVES

The Company's current mineral resources (including the Saugon resource) and ore reserves were previously announced in accordance with the guidelines of the JORC Code 2004 (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). Refer to announcement of 08 August 2013, the September 2013 Quarterly Report, and the 2013 Annual Report.

 

The Co-O and Bananghilig deposits are currently undergoing review, interpretations and revised mineral resource and ore reserve estimations in accordance with the guidelines of the recently adopted JORC Code 2012. Since there may be material changes to the mineral resources and ore reserves, due to changes in gold price, mining dilution and so forth, the Company will not be reporting the resources and reserves until the revised estimations have been completed and signed off by the independent Competent Persons. The revised resources and reserves for Co-O and Bananghilig are expected to be reported during the September 2014 quarter.

 

GOLD PRODUCTION

 

The production statistics for the six months to 31 December 2013 with comparatives for the December 2012 half year are summarised in Table I.

 

Table I. Gold production statistics

Description

Unit

Half-year ended                       31 Dec 2013

Half-year ended                  31 Dec 2012

Variance

(%)

Tonnes mined 

WMT

222,644

160,095

62,549

39%

Ore milled

DMT

190,051

143,808

46,243

32%

Recovered grade

gpt

5.07

7.82

(2.75)

(35%)

Recovery

%

86%

90%

 (4%)

(4%)

Gold produced 

ounces

26,089

32,580

(6,491)

(20%)

Cash costs (1)

US$

$422

$300

 ($122)

(41%)

Gold sold

ounces

27,334

43,492

(16,158)

(37%)

Average gold price received

US$

$1,304

$1,676

 ($372)

(22%)

 

Note:

(1)      Net of development costs and includes royalties and local business taxes but no by-product credits.

Gold production for the six months to 31 December 2013 was 26,089 ounces of gold at an average grade of 5.07 g/t gold was lower than last year's production of 32,580 ounces of gold at recovered grades averaging 7.82 g/t gold.

 

The average cash costs of US$422 per ounce, inclusive of royalties and local business taxes are higher than the previous period's average cash costs of US$300 per ounce.

 

Medusa, an un-hedged gold producer, sold 27,334 ounces of gold at an average price of US$1,304 per ounce during the period (corresponding period last year 43,492 at average price received of US$1,676 per ounce).

 

The revised production guidance for the fiscal year to 30 June 2014, following production of 26,089 ounces of gold for the half year to December 2013 is now between 70,000 to 80,000 ounces at anticipated cash costs of US$400 per ounce.

 

The production guidance for FY 2015 is 140,000 to 160,000 ounces and from FY 2016 onwards is 160,000 to 200,000 ounces per annum.

 

 

Co-O MINE and MILL

 

Co-O Mine

 

Mine development and expansion achievements include:

 

·     The L8 Shaft is operating at 1,500 tonne per day. (Photo 1) hauling from Level 8 (350 metres below surface). The current mine combined shaft haulage capacity is now 2,500 tonnes per day from the L8, Baguio, Agsao and Ventilation Shafts;

·     The rock-passes from Levels 6 and 7 to Level 8 have been completed allowing broken material to move from both Levels to the L8 haulage shaft;

·     The upgrade to the Baguio Shaft has been completed allowing material to be hauled from Level 5, thus opening up new mining areas in the western side of the mine;  

·     Development is progressing at 1,500 metres per month and will continue at approximately 1,500 metres per month for the foreseeable future, resulting in a continuing high percentage of development ore in the mill feed, and;

·     A winze is being sunk from Level 8 to Level 9 to expose and gain access to the ore on Level 9.

 

Please see the link at the end of this announcement to view Photo 1: L8 Shaft and stockpile area.

 

Co-O Mill

The new SAG Mill commenced operation on the 6th December 2013. The delay in starting the SAG Mill was due to manufacturing defects in the Powercells, which were repaired and re-installed. Production for FY 2014 has been revised to 70,000 to 80,000 ounces and 140,000 to 160,000 ounces in FY 2015.

 

Please see the link at the end of this announcement to view:

·     Photo 2: SAG Mill

·     Photo 3: Primary Crusher

 

Tailings Storage

Planning and design for tailings storage facility number 5 has been completed with construction planned when the "Wet" season finishes.

 

Health and Safety

Lost time incident frequency rate (LTIFR) for the six months to 31 December 2014 is 0.1 including exploration. There were no breaches of any of the project's operating regulations during the period.

 

Co-O RESOURCE DRILLING

 

Diamond drilling has continued since the last resource model update was announced on 08 August 2013 and has focused on extending the Co-O Vein system along the eastern and western sides of the resource model. Since the 2013 resource estimation, 41 underground drill holes totalling 11,412 have been completed using two large and two smaller portable diamond drilling rigs.

 

The Company has recently purchased six additional portable underground diamond drill rigs to be deployed at various levels within the mine to assist in exploring for zones of additional mineralisation.

 

Table II. Co-O surface and underground drill hole results of ≥ 0.5 metres at ≥ 3g/t gold

                (Refer Appendix A for JORC Code 2012 Edition)

 

Hole Number

East 4

North 4

RL 4

Depth (metres)

Dip   (o)

Azimuth  (o)

From  (metres)

Width 2 (metres)

Gold Grade 1,3 (uncut) (g/t gold)

UNDERGROUND EXLORATION DRILL HOLES - LEVEL 3

L3-64W-005

613338.9

913032.8

61.4

194.7

+3

317

167.20

0.40

16.57

L3-64W-008

613339.3

913027.7

59.8

503.3

-60

219

42.75

1.50

4.45

L3-64W-010

613348.2

913026.6

60.5

492.0

-25

124

335.60

1.10

20.30

L3-64W-011

613341.2

913031.9

61.4

255.4

+3

331

223.65

0.90

3.47








241.65

1.00

3.20

L3-64W-012

613343.1

913032.7

61.4

256.8

+3

013

65.50

1.40

5.19

L3-64W-014

613344.3

913032.9

61.3

327.4

+3

020

74.50

2.20

3.70

UNDERGROUND EXLORATION DRILL HOLES - LEVEL 8

L8-19E-001

614207.3

913105.2

-192.0

487.1

+3

247

62.85

1.00

5.88

L8-29E-002

614275.5

912915.7

-190.8

403.4

0

047

2.00

0.75

3.49








61.95

0.55

6.45








175.10

0.50

5.70

L8-29E-003

614276.4

912912.9

-190.6

393.4

0

057

60.15

1.00

5.27








86.60

0.50

8.90








100.50

1.10

6.48








168.20

2.80

16.88







includes

169.20

0.80

26.47

L8-29E-004

614270.0

912909.8

-190.7

115.6

+3

219

53.65

2.20

19.45







includes

53.65

1.00

23.60








97.80

1.00

5.77

L8-29E-005

614270.6

912908.6

-190.7

475.9

+3

213

47.65

0.60

14.57








55.00

0.90

16.60








87.50

1.00

5.62








108.70

0.90

14.52








156.60

1.00

20.43








180.35

1.15

30.27








181.50

0.90

34.90








183.40

0.60

57.83








185.75

1.00

5.31








192.95

1.00

5.22








203.35

1.00

5.91

L8-29E-006

614270.6

912908.6

-190.6

411.9

+3

068

16.50

1.00

3.00








54.10

0.90

3.67








90.70

1.65

4.17

L8-29E-007

614276.1

912909.8

-190.6

464.3

+3

116

0.40

0.90

6.70








92.40

0.60

6.20

L8-29E-008

614274.0

912908.3

-190.6

473.4

+3

174

57.80

0.65

47.77








85.95

1.00

4.60








169.30

1.20

5.30








203.80

0.50

3.78

L8-29E-009

614276.3

912912.8

-190.6

452.2

+3

093

80.65

0.85

16.77








186.60

5.80

5.62








236.55

1.00

78.50








326.60

0.40

5.33








338.25

4.15

16.51







includes

340.40

1.00

43.77

L8-29E-010

614274.0

912908.3

-190.7

474.3

+3

142

194.50

1.00

13.53








292.00

1.70

40.50







includes

292.00

0.75

73.73

 

Notes:

1. Composited intercepts' 'weighted average grades' calculated by using the following parameters:

   (i) no upper gold grade cut-off applied;

   (ii) lower cut-off grade of 3.0 g/t gold,

   (iii) high-grade samples (>20g/t gold) within composited interval are individually reported ;and

   (iv) ≥ 0.5 metres down hole intercept width at ≥ 3.0 g/t gold, or

   (v) ≥ 6 gram.metres.

   (vi) maximum  of 1.0 metre of down-hole internal dilution at , 3g/t gold

2. Intersection widths are downhole drill widths not true widths;

3. Assays are by Philsaga Mining Corporation's laboratory; and

4. Grid coordinates based on the Philippine Reference System 92.RL is elevation in metres relative to Mine Datum

 

Co-O EXPLORATION

 

IP Survey

The ground Induced Polarisation ("IP") and Resistivity ("RES") survey is ongoing within the Co-O tenements including the Co-O mine environs. During the six months to December 2013, approximately 127 line kilometres of IP and RES surveys were completed. Heavy rain has hampered the survey and it is now expected that the balance (of approximately104 line kilometres) will be completed in the June 2014 quarter, with interpretations undertaken during the June and September 2014 quarters.

 

Ground Magnetics Survey

A Ground Magnetics survey is ongoing, using the same grid as the IP survey. A total of approximately 162 line kilometres were completed during the six months to December 2013. Approximately 94 line kilometres remains to be surveyed, and are expected to be completed and interpreted concurrent with the IP interpretation.

 

Reconnaissance Programmes

Reconnaissance mapping and sampling programmes are ongoing.

 

 

TAMBIS REGION

 

BACKGROUND

The Tambis Project, which includes the Bananghilig Gold Deposit as shown on (Fig. 2), is operated under a Mining Agreement with Philex Gold Philippines Inc. over Mineral Production Sharing Agreement ("MPSA") 344-2010-XIII, which covers 6,262 hectares.

 

The Executive Order on Mining (EO 79) signed on 6 July 2012, by the President of the Philippines, will have no immediate impact on the Bananghilig Project as the Company can continue to explore, conduct feasibility studies and planning.

 

REGIONAL GEOLOGICAL SETTING

The announcement of 12 September 2011 summarises the Tambis regional geological setting, local geological setting, deposit description and mineralisation.

 

BANANGHILIG GOLD DEPOSIT

Additional information with respect to the Bananghilig gold deposit is contained in the September 2011 quarterly report dated 24 October 2011, drilling updates on 17 January 2012, 8 August 2012, 21 November 2012, and 02 April 2013, operations update on 08 July 2013, and resource estimation updates on 29 January 2013 and 08 August 2013.

 

Indicated & Inferred Mineral Resource Estimation

The Bananghilig resource was previously announced in accordance with the guidelines of the JORC Code 2004 (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). Refer to announcement of 08 August 2013, the September 2013 Quarterly Report, and the 2013 Annual Report.

 

The Bananghilig deposit is currently undergoing review, re-interpretation and revised mineral resource and estimation in accordance with the guidelines of the recently adopted JORC Code 2012. Consequently the project's revised mineral resources are expected to be completed by the independent consultants and reported during the September 2014 quarter.

 

Bananghilig Scoping & Pre-Feasibility Study*

On 09 April 2013, the Company published the results of a first pass Scoping Study1 of the Bananghilig Gold Deposit. The Scoping Study was carried out and reported under the guidelines of the JORC Code 2004, therefore the results of the Scoping Study do not now necessarily comply with the requirements of the JORC Code 2012 and will not be reported henceforth.

 

*The Scoping Study referred to in the announcement dated 9 April 2013 was based on low-level technical and economic assessments of Indicated and Inferred Mineral Resources, as defined under the guidelines of JORC Code 2004, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.

 

A Feasibility Study was initiated on the completion of the Scoping Study. Sterilisation and geotechnical drilling programmes were completed in early October 2013.

 

A decision was made towards the end of the September quarter to temporarily suspend the feasibility study given the mineralisation being encountered at the new B2 discovery area, as well as given consideration to the depressed gold price and commissioning of the new Co-O milling circuit.

 

Figure 3 (please see link at the end of this announcement) showd the Tambis Project geology showing location of Bananghilig resource relative to the B2 mineralisation discovery area & other prospect areas.

 

Figure 4 (please see link at the end of this announcement) shows the drill hole projection plan of the B2 drill holes relative to the Bananghilig 2013 resource model.

 

 

BANANGHILIG EXPLORATION

 

B2 Discovery Area

During the September 2013 quarter, two large capacity diamond drilling rigs completed two diamond drill holes (TDH332 and TDH334) within the B2 area for a total advance of 622.6 metres.

 

Figure 3 shows the Bananghilig area geology and the position of the B2 discovery, beneath limestone cover relative to the Bananghilig resource.

 

B2 Drilling Results

Results of diamond drilling at B2 were announced on 2 April 2013 and 8 July 2013, in the March 2013, June 2013 and September 2013 Quarterly Reports, and the September 2013 Annual Report. Results have subsequently been received for all outstanding sample submissions as well as for the holes completed during this quarter. Significant intercepts for completed drill holes are shown in Table III below.

 

Geotechnical and Sterilisation Drilling Programmes

Geotechnical drilling and test pitting programmes were completed in first week of October with one last diamond drill hole completed for a total of 60 metres. Drilling was carried out to investigate sites suitable for infrastructure associated with the potential development of the Bananghilig Deposit, including plant site, waste, tailings and process water storage facilities. A sterilisation drilling programme was successfully completed with no significant drill hole assay results received in these areas.

 

Regional Exploration

Reconnaissance mapping and sampling is on-going within the Tambis Region.

 

Table III. Bananghilig B2 Discovery Area drill hole results ≥ 1 g/t gold.

 (Refer Appendix A for JORC Code 2012 Edition)

 

Hole    Number

East 4

North 4

RL 4

Depth (metres)

Dip (o)

Azimuth (o)

From (metres)

Width 2 (metres)

Gold Grade 1,3 (g/t gold)

BANANGHILIG - B2 DISCOVERY AREA

TDH308

613278

945405

156.0

359.10

-60

130

84.10

3.50

1.02








245.45

5.00

2.88







includes

246.65

1.00

11.25








312.10

7.30

3.23







includes 

315.45

0.35

38.08

TDH310

613435

944948

143.7

309.50

-60

130

198.65

13.45

1.38

TDH313

613331

945128

178.9

302.13

-60

130

116.15

8.90

1.17








226.20

5.95

5.54







includes

231.05

1.10

25.90








237.95

16.40

2.04








286.35

12.00

1.33

TDH314

613745

945277

116.9

312.63

-60

130

65.75

1.00

18.58








140.50

1.50

4.21








168.85

6.70

1.22








255.45

3.25

3.89








282.60

2.30

2.70

TDH316

613537

945355

128.8

303.15

-60

130

186.45

3.50

2.37

TDH317

613681

944841

170.1

302.10

-60

130

137.10

3.60

1.86








162.05

4.55

2.71








170.35

8.05

3.17







includes

176.10

0.70

11.28








262.25

21.55

2.34







includes

277.05

0.55

18.39

TDH321

613616

945073

117.7

297.65

-59

130

115.85

20.70

2.26







includes

125.60

1.00

29.48








151.55

4.25

1.78








179.20

6.90

2.47







 includes

185.10

1.00

10.03








246.65

2.25

5.87







 includes

248.55

0.35

17.36

TDH322

613591

945089

111.3

300.62

-61

130

198.60

6.65

1.24








211.25

1.75

2.88








235.60

6.30

1.14








248.30

11.35

3.18







includes 

249.50

1.00

12.62

TDH323

613631

945114

118.8

307.60

-60

130

116.00

3.85

1.40








159.30

12.45

2.98







 includes

170.40

1.35

10.44








197.75

13.85

1.41







 includes

197.75

0.45

13.51








215.40

11.80

1.23








245.10

8.10

1.55







 includes

246.85

0.65

12.31








262.20

3.65

1.76








272.05

7.20

1.34








303.20

2.45

2.22

TDH325

613575

944927

199.1

300.55

-60

130

135.15

8.55

1.27







 includes

225.55

13.40

2.73








228.65

0.90

21.69

TDH326

613583

945050

130.0

304.40

-60

130

108.30

2.75

4.86







 includes

108.30

1.00

10.12








114.25

5.70

2.42







 includes

117.95

1.00

10.48








169.30

4.40

1.71








181.35

8.65

1.29








228.95

7.75

1.24








248.10

4.75

4.34







 includes

248.10

1.00

14.06








279.10

8.70

2.79







 includes

280.10

0.55

10.44

 

Hole    Number

East 4

North 4

RL 4

Depth (metres)

Dip (o)

Azimuth (o)

From (metres)

Width 2 (metres)

Gold Grade 1,3 (g/t gold)

BANANGHILIG - B2 DISCOVERY AREA

TDH327

613577

945103

112.6

303.60

-64

130

216.10

0.35

34.80

TDH328

613241.7

945191.7

214.6

312.50

-60

130

260.20

1.45

8.82








289.20

15.60

1.51

TDH330

613626.8

945064.5

123.7

294.50

-56

130

154.85

16.50

3.78







includes

159.05

0.55

40.64







includes

161.05

0.75

16.71








197.85

5.80

0.93

TDH332

613554.7

945020.3

142.1

320.50

-60

130

170.35

7.00

7.27







includes

174.70

1.00

45.49








236.30

0.70

22.40








254.50

7.55

5.79







includes

254.50

1.00

21.90







includes

259.70

1.00

14.69

TDH334

613001.7

944955.1

147.5

302.10

-60

130

80.30

9.50

2.77








200.15

6.85

1.26

 

Notes:

1. Composited intercepts' 'weighted average grades' calculated by using the following parameters:

   (i) no upper gold grade cut-off applied;

   (ii) lower cut-off grade of 0.5 g/t gold;

   (iii) high-grade samples (>10 g/t gold) within composited interval are individually reported;

   (iv) ≥ 5 metres down hole intercept width at ≥ 1.0 g/t gold, or

   (v) ≤ 5 metres down hole intercept width at ≥ 5 gram per metres, and

   (vi) maximum of 3 metres of downhole internal dilution at ≤0.5 g/t gold;

2. Intersection widths are downhole drill widths not true widths;

3. Assays are by Intertek McPhar Mineral Services Inc. in Manila; and

4. Grid coordinates and RL (elevation) based on the Philippine Reference System 92.

 

LINGIG

 

The Lingig prospect is located in Mineral Production Sharing Agreement 343-2010-XIII with an area of 3,824 hectares over which the Company has an operating agreement.

 

Activities completed include Induced Polarisation, Resistivity and ground magnetics surveys, Data processing and interpretation of the geophysical data by an independent geophysical consultant and detailed geological mapping.

 

Data compilation from the mapping, soil sampling, and geophysical surveys will commence during the March 2014 quarter. Interpretations will be reviewed prior to planning drill targets.

 

USA PROJECT

 

A Memorandum of Agreement with Corplex Resources Inc. covers the Usa prospect, which is located within MPSA application XIII-00077. Processing of the tenement application is progressing.

 

SAUGON PROJECT 

 

Detailed and reconnaissance geological mapping, trenching and sampling programmes are on-going.

 

FINANCIALS

 

Medusa recorded a net profit after tax ("NPAT") of US$13.0 million and earnings before interest, tax depreciation and amortisation ("EBITDA") of US$19.4 million for the half year to 31 December 2013, compared to US$28.6 million and US$35.3 million respectively in the previous corresponding period.

 

The Company recorded Revenues of US$34.0 million compared to US$52.4 million in the previous corresponding period. Medusa is an un-hedged gold producer and received an average price of US$1,304 per ounce from the sale of 27,334 ounces of gold for the half-year to December 2013 (previous corresponding period: 43,492 ounces at US$1,676 per ounce).

 

The decrease in NPAT, EBITDA and Revenues is directly linked to a decrease in gold production (26,089 ounces compared to 32,580 ounces) and a lower average price received on sale of gold (US$1,304 per ounce compared to US$1,676 per ounce). As at 31 December 2013, the Company had total cash, cash equivalent in gold on metal account and bullion on hand of approximately US$20.8 million (Dec 2012: US$15.8 million).

 

During the half-year:

·     The Company recorded Revenue of US$33.9 million from gold and silver sales (Dec 2012 half-year: gold and silver sales of US$52.3 million and interest of US$0.3 million);

·     Depreciation and amortisation was lower at US$6.3 million, compared with US$6.7 million in the December half of 2012;

·     US$8.5 million outlay on exploration expenditure, including US$5.3 million on the Co-O Mine (Dec 2012 half-year: US$14.6 million, including US$9.8 million for the Co-O Mine);

·     US$11.6 million was spent on sustaining capital at mine and mill and capital works associated with the new mill construction and infrastructure (Dec 2012 half-year: US$23.5 million); and

·     Incurred US$17.5 million on general and accelerated mine development costs, inclusive of shaft sinking costs (Dec 2012 half-year: on general and accelerated mine development costs, inclusive of shaft sinking costs of US$15.8 million).

 

CORPORATE

 

Dividend

 

No dividend will be payable for the half year to 31 December 2013 (No dividend was payable for the previous half year to 31 December 2012).

 

CAPITAL RAISING

During the quarter, the Company raised gross proceeds of A$34,002,702 via the issue of 18,890,390 shares at A$1.80 each to clients of Euroz Securities Limited.

 

BOARD CHANGES

Mr Geoff Davis (Founding Managing Director of Medusa) retired as Non-executive Chairman on 22 November 2013 and was succeeded by Non-Executive Director, Mr Andrew Teo.

 

 

JORC CODE 2012 COMPLIANCE - CONSENT OF COMPETENT PERSONS

 

Medusa Mining Limited

 

Information in this report relating to Exploration Results is based on information compiled by Mr Gary Powell, who is a member of The Australian Institute of Geoscientists and the Australasian Institute of Mining and Metallurgy. Mr Powell is a Non-Executive Director of the Board of Medusa Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators.  Mr Powell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

DISCLAIMER

 

This report may contain certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

 

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Medusa, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements.

 

Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based.

 

You should not place undue reliance on forward-looking statements and neither Medusa nor any of its directors, employees, servants or agents assume any obligation to update such information.

 

LEAD AUDITOR'S INDEPENDENCE DECLARATION

 

The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 21 for the half-year ended 31 December 2013.

 

ROUNDING OF AMOUNTS

 

The Company has applied the relief available to it under Class Order 98/100 and accordingly, amounts in the financial report and directors' report have been rounded to the nearest $1,000.

 

This report is signed in accordance with a resolution of the Board of Directors.

 

 

 

 

PETER HEPBURN-BROWN

Managing Director

 

 

Dated this 27th day of February 2014.

 

 

AUDITOR'S INDEPENDENCE DECLARATION 

 

Level 1

10 Kings Park Road

West Perth WA 6005

 

Correspondence to:

PO Box 570

West Perth WA 6872

 

T +61 8 9480 2000

F +61 8 9322 7787

E [email protected]

W www.grantthornton.com.au

Auditor's Independence Declaration

To The Directors of Medusa Mining Limited 

 

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Medusa Mining Limited for the half-year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been:

 

a              No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

b             No contraventions of any applicable code of professional conduct in relation to the review.

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

 

P W Warr

Partner - Audit & Assurance

 

Perth, 27 February 2014

 

 

 

 

FINANCIALS

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

for the half-year ended 31 December 2013

 

 

 



Consolidated Group



31 Dec 2013

31 Dec 2012


Note

US$ 000

US$ 000

Revenue

2

33,998

52,363

Cost of sales


(15,775)

(18,175)

Administration expenses


(3,905)

(4,665)

Other expenses


(1,298)

(925)

Profit before income tax expense


13,020

28,598

Income tax expense


-

-

Profit for the period after income tax expense


13,020

28,598





Other comprehensive income:




Items that may be reclassified subsequently to profit or loss




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

(11,073)

              7,507

Total comprehensive income


1,947

36,105





Overall operations:




Basic earnings per share


0.067

0.152

Diluted earnings per share


0.067

0.152

 

The accompanying condensed notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

for the half-year ended 31 December 2013

 

 

 



Consolidated Group



31 Dec 2013

30 June 2013


Note

US$ 000

US$ 000

CURRENT ASSETS




Cash & cash equivalents


19,909

4,698

Trade & other receivables


20,308

29,617

Inventories


20,666

18,339

Other current assets


992

662

Total Current Assets


61,875

53,316

NON-CURRENT ASSETS




Trade & other receivables


10,924

2,600

Property, plant & equipment


107,873

101,549

Exploration, evaluation and development expenditure


235,113

219,962

Deferred tax assets


1,603

1,603

Total Non-Current Assets


355,513

325,714

TOTAL ASSETS


417,388

379,030

CURRENT LIABILITIES




Trade & other payables


20,621

18,616

Borrowings


1,125

1,725

Provisions


622

1,017

Total Current Liabilities


22,368

21,358

NON-CURRENT LIABILITIES




Borrowings


5,936

528

Provisions


723

753

Deferred tax liability


141

141

Total Non-Current Liabilities


6,800

1,422

TOTAL LIABILITIES


29,168

22,780

NET ASSETS


356,250

EQUITY




Issued capital

5

102,902

73,070

Reserves


7,204

18,087

Retained profits


278,114

265,093

TOTAL SHAREHOLDERS' EQUITY


356,250

 

The accompanying condensed notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half-year ended 31 December 2013

 

 


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 01.07.2012

73,070

218,837

3,740

20,020

315,667

Net profit after tax

-

28,598

-

-

28,598

Other comprehensive income

-

-

-

7,507

7,507

Total comprehensive income for the period

-

28,598

-

7,507

36,105

Shares issued during the period

-

-

-

-

-

Transfer from Option Reserve

-

-

-

-

-

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

-

-

1,100

-

1,100

Sub-total

73,070

247,435

4,840

27,527

352,872

Dividends paid or provided for (refer note 3)

-

(3,925)

-

-

(3,925)

Balance at 31.12.2012

73,070

243,510

4,840

27,527

348,947

Balance at 01.07.2013

73,070

265,093

4,448

13,639

356,250

Net profit after tax

-

13,020

-

-

13,020

Other comprehensive income

-

-

-

(11,073)

(11,073)

Total comprehensive income for the period

-

13,020

-

(11,073)

1,947

Shares issued during the period

29,832

-

-

-

29,832

Transfer from Option Reserve






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

-

-

191

-

191

Sub-total

102,902

278,113

4,639

2,566

388,220

Dividends paid or provided for (refer note 3)

-

-

-

-

-

Balance at 31.12.2013

102,902

278,113

4,639

2,566

388,220

 

The accompanying condensed notes form part of these financial statements.

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

for the half-year ended 31 December 2013

 

 



Consolidated Group



31 Dec 2013

31 Dec 2012



US$ 000

US$ 000

CASH FLOWS FROM OPERATING ACTIVITIES




Receipts from customers


35,929

73,330

Payments to suppliers and employees


(11,398)

(18,504)

Interest received


43

29

Net cash provided by operating activities


24,574

54,855

CASH FLOWS FROM INVESTING ACTIVITIES




Purchase of non-current assets


(13,600)

(24,360)

Payments for exploration expenditure and tenements


(3,853)

(5,906)

Payments for development activities


(22,689)

(18,658)

Net cash (used in) investing activities


(40,142)

(48,924)

CASH FLOWS FROM FINANCING ACTIVITIES




Proceeds from issue of shares


31,684

-

Transaction costs from issue of shares


(1,851)

-

Payments for dividends


-

(3,925)

Proceeds from borrowings


4,808

-

Net cash  provided by (used in) financing activities


34,641

(3,925)

Net (increase) in cash held


19,073

     2,006

Cash at beginning of period


4,698

12,468

Exchange rate adjustments


(3,862)

(5,640)

Cash at end of period


19,909

8,834

 

The accompanying condensed notes form part of these financial statements

 

 

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

for the half-year ended 31 December 2013

 

 

 

Note 1: Basis of preparation

Medusa Mining Limited (the "Company") is a company domiciled in Australia.

 

The consolidated interim financial report of the Company as at and for the six months ended 31 December 2013 comprises the Company and its subsidiaries (together referred to as (the "Group") and the consolidated group's interests in associates and jointly controlled entities.

 

The functional currency of each of the Group's entities is the currency of the primary economic environment in which that entity operates. Though the Company's functional currency is Australian dollars the presentation currency for the Group is US dollars. The reason for using US dollars as the presentation currency is US dollars is the primary currency used in the global gold market.

 

The consolidated annual financial report of the consolidated group as at and for the year ended 30 June 2013 is available on the company's website.

 

(a)                    Statement of compliance

These general purpose financial statements for the interim half-year reporting period ended 31 December 2013 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

 

The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the Consolidated Group as at and for the year ended 30 June 2013.

 

This consolidated interim financial report was approved by the Board of Directors on 26 February 2014.              

 

(b)                   Significant accounting policies

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 30 June 2013, except for the application of the following standards as of 1 January 2013:

·   AASB 10 Consolidated Financial Statements;

·   AASB 11 Joint Arrangements; and

·   AASB 119 Employee Benefits (September 2013)

·  

The effects of applying these standards are described below.

 

AASB 10 Consolidated Financial Statements

AASB 10 supersedes AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation - Special Purpose Entities. AASB 10 revises the definition of control and provides extensive new guidance on its application. These new requirements have the potential to affect which of the Group's investees are considered to be subsidiaries and therefore change the scope of consolidation. The requirements on consolidation procedures, accounting for changes in non-controlling interests and accounting for loss of control of a subsidiary are unchanged.

 

Management has reviewed its control assessments in accordance with AASB 10 and has concluded that there is no effect on the classification (as subsidiaries or otherwise) of any of the Group's investees held during the period or comparative periods covered by these financial statements.

 

AASB 11 Joint Arrangements

 

AASB 11 supersedes AASB 131 Interests in Joint Ventures and Interpretation 113 Jointly Controlled Entities - Non-Monetary-Contributions by Venturers. It aligns more closely the accounting by the investors with their rights and obligations relating to the joint arrangement. In addition, AASB 131's option of using proportionate consolidation for joint ventures has been eliminated. AASB 11 now requires the use of the equity accounting method, which is currently used for investments in associates.

 

The application of AASB 11 has no impact on the Group as there are no joint arrangements in place.

 

AASB 119 Employee Benefits (September 2013)

 

AASB 119 makes a number of changes to the accounting for employee benefits, the most significant relating to defined benefit plans. AASB 119:

 

·      eliminates the 'corridor method' and requires the recognition of remeasurements (including actuarial gains and losses) arising in the reporting period in other comprehensive income

·      changes the measurement and presentation of certain components of the defined benefit cost. The net amount in profit or loss is affected by the removal of the expected return on plan assets and interest cost components and their replacement by a net interest cost based on the net defined benefit asset or liability

 

(c)                    Significant events and transactions

During the six months the Company experienced a decrease in Revenues which is directly linked to a decrease in gold production (26,089 ounces compared to 32,580 ounces) and a lower average price received on sale of gold.

 

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

 

During the quarter, the Company raised gross proceeds of A$34,002,702 via the issue of 18,890,390 shares at A$1.80 each to clients of Euroz Securities Limited.

 

(d)           Comparative figures

Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

 

(e)                    Rounding of amounts

The Company has applied the relief available to it under Class Order 98/100 and accordingly, amounts in the financial report and directors' report have been rounded to the nearest $1,000.

 

 

 



Consolidated Group



31 Dec 2013

31 Dec 2012



US$ 000

US$ 000

Note 2: Profit for the period




The following revenue and expense items are relevant in explaining the financial performance for the interim period:




Revenue items:




Interest revenue


65

27

Gold and silver sales


33,926

52,327

Other


7

9



33,998

52,363

Expense items:




Depreciation


3,263

3,203

Amortisation


3,041

3,507

Employee benefits expense


3,958

2,933

Recognition of share based payments


191

1,100

 

Note 3: Dividends




No dividend was declared (2012: 2 cents a share, declared on 29 August 2012 and paid on 4 October 2012).


-

3,925

 

 

 

Note 4: Segment Information

The Consolidated Group has identified its reportable operating segments based on the internal reports that are reviewed and used by the Managing Director (the chief operating decision maker) and his management team in assessing performance and in determining the allocation of resources.

The Group segments are structured as Mine, Exploration and unallocated. Currently the only operational mine is the Co-O mine.


Mining

Exploration

unallocated

Total


US$ 000

US$ 000

US$ 000

US$ 000

Segment Revenue and Result





6 months to December 2013:





Segment revenue

33,926

-

72

33,998

Segment result

15,937

(10)

(2,907)

13,020

6 months to December 2012:





Segment revenue

52,327

-

36

52,363

Segment result

32,069

(16)

(3,455)

28,598

Segment Assets and Liabilities





31 December 2013:





Segment assets

397,069

3,762

14,954

415,785

Reconciliation of segment assets to group assets





add -





Deferred tax assets




1,603

Total group assets




417,388






Segment liabilities

24,807

1

4,219

29,027

Reconciliation of segment liabilities to group liabilities





add -





Deferred tax liabilities




141

Total group liabilities




29,168

30 June 2013:





Segment assets

371,846

3,943

1,638

377,427

Reconciliation of segment assets to group assets





add -





Deferred tax assets




1,603

Total group assets




379,030






Segment liabilities

18,674

10

3,955

22,639

Reconciliation of segment liabilities to group liabilities





add -





Deferred tax liabilities




141

Total group liabilities




22,780

 

 


Consolidated Group


31 Dec 2013

30 Jun 2013

31 Dec 2013

30 Jun 2013


(shares)

(shares)

US$ 000

US$ 000

Note 5:  Issued Capital





Ordinary shares on issue 

207,794,301

188,903,911

102,902

73,070

 





Opening balance

188,903,911

-

73,070

73,070

add -





Shares issued during the period

18,890,390

-

29,832

-

Transfer from option Reserve






207,794,301

188,903,911

102,902

73,070

Movement in ordinary shares during the half-year:





-  Balance at beginning of the period

188,903,911

188,903,911

73,070

73,070

-  Ordinary shares issued - 7 November 2013

9,445,195

-

14,916

-

-  Ordinary shares issued - 25 November 2013

9,445,195

-

14,916

-







207,794,301

188,903,911

102,902

73,070






 

The A$ issue price per share has been converted using the exchange rate applicable on the date the funds were received and rounded to four decimal places.

 

 

 


Consolidated Group


31 Dec 2013

30 Jun 2013

31 Dec 2013

30 Jun 2013


(options)

(options)

US$ 000

US$ 000

Note 6: Option and Performance Rights  Reserve





Option and Performance Rights Reserve

1,715,000

1,715,000

4,638

4,448






Opening balance

1,715,000

1,965,000

4,448

3,740

less -





Options forfeited

(140,000)

(250,000)

-

-

add -










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

-

-

191

708


1,575,000

1,715,000

4,639

4,448

 

Note 7: Contingent Liabilities

There have been no developments in the period since the annual report.

 

Note 8: Commitments

There has been no change to the commitments as disclosed in the Group's 30 June 2013 annual report.

 

Note 9: Related Parties

Arrangements with related parties continue to be in place. For details on these arrangements, refer to the Company's annual report for the year ended 30 June 2013.

 

Note 10: Events subsequent to reporting date

There has not arisen in the interval between the half-year ended 31 December 2013 and the date of this report any other item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Consolidated Group, the results of those operations, or the state of affairs of the Consolidated Group, in subsequent financial periods.

 

 

DIRECTORS' DECLARATION

 

 

The Directors of the Company declare that:

1.        The financial statements and notes, as set out on pages 22 to 31: 

(a)     comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations;  and

(b)     give a true and fair view of the Consolidated Group's financial position as at 31 December 2013 and of its performance for the half year ended on that date.

 

2.      In the Directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

 

This declaration is made in accordance with a resolution of the Board of Directors.

 

 

Peter Hepburn-Brown

Managing Director

 

Dated this 27th day of February 2014

 

 

INDEPENDENT AUDITORS REVIEW REPORT

Level 1

10 Kings Park Road

West Perth WA 6005

 

Correspondence to:

PO Box 570

West Perth WA 6872

 

T +61 8 9480 2000

F +61 8 9322 7787

E [email protected]

W www.grantthornton.com.au

 

Independent Auditor's Review Report

To the Members of Medusa Mining Limited

 

We have reviewed the accompanying half-year financial report of Medusa Mining Limited ("Company"), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2013, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement  or description of accounting policies, other explanatory information and the directors' declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year's end or from time to time during the half-year.

 

Directors' responsibility for the half-year financial report

The Directors of Medusa Mining Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

 

Auditor's responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review.  We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Medusa Mining Limited consolidated entity's financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.  As the auditor of Medusa Mining Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

 

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.

 

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001. 

 

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Medusa Mining Limited is not in accordance with the Corporations Act 2001, including:

a          giving a true and fair view of the consolidated entity's financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

b         complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

 

 

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

 

 

P W Warr

Partner - Audit & Assurance

 

Perth, 27 February 2014

 

 

 

Please see link at the end of this announcemnent for the Appendices:

 

Appendix A. Co-O Gold Project

JORC Code, 2012 Edition - Table 1 Report

Section 1. Sampling Techniques and Data

Section 2. Reporting of Exploration Results

 

Appendix B. Tambis Project - Bananghilig Gold Deposit

JORC Code, 2012 Edition - Table 1 Report

Section 2. Sampling Techniques and Data

Section 3. Reporting of Exploration Results

 

APPENDIX C: TENEMENT SCHEDULE

 

 

A copy of this report has been filed with the National Storage Mechanism and will be available for inspection shortly at www.hemscott.com/nsm.do.

 

To view the complete half yearly report including figures, photos and appendices, please click on or paste the following link in your browser:

 

http://www.rns-pdf.londonstockexchange.com/rns/0352B_-2014-2-26.pdf


This information is provided by RNS
The company news service from the London Stock Exchange
 
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