Ann: Full Year Results 2015, page-68

SP back to 42c, gold down on Friday night so when this trades tomorrow (Monday) it is likely to make new lows, but why? We have had all the numbers thrashed about, and occasionally someone points out that underlying profit and cash don't add up.
Several reasons, one of which is the way they stretch the truth/numbers. 2016-2020 (a period of 5 years, go ahead and count them), they are likely to produce 135,000-150,000 oz of gold from the gold reserve of 590,000 oz.
Using my maths 590,000 divided by 5 gives a number of 118,000 at the most, so officially they cannot say what they just did!!
Development write-off, just a non-cash impairment, garbage!!! It was a real expenditure that the company keeps adding as an asset, when it is a real expense, not an asset.

For example, they dig a new tunnel to get to the gold, mine development cost, they dig out all the gold from that tunnel, then the tunnel is useless, but stays on the books as an asset. WRONG!! It is an expense in getting to the gold, therefore is part of ongoing expenses and should be treated as such. So there is no underlying profit of $37m or whatever, as the development cost was a real cost!! Hence you get the write off, of assets, or impairment of development costs. The ridiculous part is that the development costs should NEVER have been an asset in the first place. It is a cash cost to get to the gold, and will keep happening every quarter to the tune of $9m, yet the company treats it as an asset!!

The company has to keep spending money/capital call it whatever you like on digging further tunnels, putting in lifts and shafts etc just to get to the gold. All of those costs are recurring costs and do not add to the capital of the company. They just allow Medusa to get to the next area of ore.
The only way they can make money is if the POG goes up.
If the POG continues on it's downward path, then at some point Medusa will be asking shareholders for more dollars just to maintain this continued development. This is why the price is so low, when many can't see it.