MML 2.41% 85.0¢ medusa mining limited

Latest Seeking Alpha Article, page-4

  1. 6,756 Posts.
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    Yes that is an important statement about AISC that I had missed. They are predicting costs at around $96mil for FY18 as against $111mil for FY17 with lower Capital expenditure and lower resource drilling which they state in the quarterly will free up L8 shaft for higher ore delivery to the mill. I'm baffled as to why production would be under 25k ozs for the quarters to Sep & Dec17 unless one thinks they high-graded(6.38%) in the June quarter that won't be repeated going forward.
    Assuming total costs remain approx. the same at $96mil for a full year, then at AISC of $850 that only produces 113k ozs for a full year - surely this mine is capable of much more when the E15 Service shaft becomes available next year.
    Working through the quarterlies for FY17, it is interesting to note the movements in their VAT/GST account as follows: Sep16 +$2.0mil, Dec16 +$2.2mil, Mar17 +$1.5mil and Jun17 -$3.4mil to give an overall increase of $2.3mil. The overall amount due from VAT at 30Jun17 should be $38.7mil and should be continually reduced when there are low capital expenditures, so if they could start to reduce this amount by the Jun17 qtr amt then that would add some $13mil to their annual cash flow that is not reflected in AISC but unfortunately this will probably be partially offset by quarterly Corporate Tax payments of $2mil in FY18.
    Last edited by miningnut: 10/08/17
 
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