TORONTO, ONTARIO — (Marketwire) — 08/29/11 — Medusa Mining Limited (ASX: MML)(LSE: MML) („Medusa“ or the „Company“), is pleased to present its full year financial results for the year ended 30 June 2011, highlighted by a record Net Profit After Tax („NPAT“) of US$110.4 million, an increase of US$44.6 million or 68%.
HIGHLIGHTS OF THE FINANCIAL YEAR:
To view the Revenues graph, please visit the following link:
Production Guidance FY2012
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The production guidance for the forthcoming year is between 100,000 to 110,000 ounces at cash costs of around US$200 per ounce. There is currently a heavy emphasis on mine development to prepare the Co-O Mine for future production increase.
Reserves and Resources
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Exploration
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New Co-O Mill
The Board on 17 November 2010 approved the construction of a new Co-O mill with capacity to produce 200,000 ounces per year.
Subsequently, after evaluation of three sites, the preferred option is the complete remodelling of the current mill site. The initial Capex was estimated at US$80 million, inclusive of mine development and the Saga Shaft, which has now been reduced to approximately US$70 million.
Permitting requires the upgrading of the current Environmental Clearance Certificate which is anticipated to be completed by late September 2011.
The SAG mill has been ordered and the winder for the Saga Shaft has been secured.
Replacement and transferral of buildings and facilities in and around the current mill commenced in July 2011 to make room for the expansion.
The preliminary construction schedule after regulatory permitting is estimated to be 21 months.
Preliminary Development Timetable
To view the Preliminary Development Timetable, please visit the following link:
Dividends
The Company declared a final un-franked dividend payment of A$0.05 per share payable to shareholders on 30 September 2011.
The relevant dates for the interim dividend are as follows:
Peter Hepburn-Brown, Managing Director of Medusa, commented:
„I am pleased to report that the Company has again achieved a new record with respect to the production of 101,474 ounces which generated revenues of US$149.6 million, primarily on the back of escalating gold prices. Our current financial position allows the Company to self-fund the Co-O mill expansion and mine development, now estimated at US$70 million, and we are starting to accumulate the cash required to self-fund the Bananghilig Project, as it matures from the work currently being done.
We anticipate receiving approval shortly from the Bureau of Mines to enable us to proceed with the expansion of the Co-O mill capacity, to treat approximately 750,000 tonnes of ore per annum. This is a major transformation for the Company which will provide new modern treatment facilities to cater for the long life operations expected from the Co-O Mine and potentially other satellite mines such as Anoling.
I wish to thank our on-site personnel who have again made a great contribution to the on-going growth and success of the operations through their dedication and hard work. The future as we continue to grow the Company will be challenging, however I am confident our team is equal to the tasks that lie ahead.“
JORC COMPLIANCE – CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Mr Geoff Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Managing Director 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 compiled by Mark Zammit of Cube Consulting Pty Ltd of Perth, Western Australia. 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.
Carras Mining Pty Ltd
Information in this report relating to Ore Reserves is based on information compiled by Dr Spero Carras, FAusIMM of Carras Mining Pty Ltd. Dr Carras 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 a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves“. 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.
DISCLAIMER
This announcement contains 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.
The complete 2011 Annual Report is available for viewing on our website
ABN: 60 099 377 849
Contacts: Australia Medusa Mining Limited Geoffrey Davis Chairman +61 8 9367 0601
Medusa Mining Limited Peter Hepburn-Brown Managing Director +61 8 9367 0601
United Kingdom Fairfax I.S. PLC Financial Adviser/Broker Ewan Leggat/Laura Littley +44 (0)20 7598 5368
