Unless gold does a reversal of trend, this company will not...

Unless gold does a reversal of trend, this company will not perform any better. They continually put mine development costs, that are always in the range of $9m/qtr in as a capital spend when it should be in AISC and operating expenditure.
If they didn't spend the money on it they can't get to the next stopes. This is an expense that will continue until the mine runs out of economic gold and closes.

Adding this expense to AISC and it is easy to see why they consistently don't make any money. With all the book entries that are for accounting and tax purposes, the cash at the end of the year, was about the same as the prior year.


Medusa is just a bet on the price of gold with the life of mine rapidly falling, the mining is happening at deeper levels, so more expense, and the exploration is finding nothing of value for the company to continue with.

I bailed at $1.64 minutes before the disastrous June quarterly came out last year, as the writing was on the wall with falling SP below crucial support levels just before the quarterly. Despite everything that has been stated with reducing costs less capital expenditure etc, they just cannot turn a profit to pay a dividend to shareholders and I cannot see this changing unless we get a rise of a couple of hundred dollars an ounce. Even then unless they find more high grade gold somewhere, then the shortening mine life will continue to see the price under pressure.

As it only took a little bit of selling to push the price back to one of the lowest prices for years, then that tells all loud and clear there is not support for it by anyone big yet. How low before buying pressure starts? No idea, but this could continue to go down to 40 or 30 cents before buying starts with any conviction, but is more likely to follow the price of gold.