Medusa summary.
Updated as of release of Q4 production results on 27/7/2016.
Unhedged, no LT debt, cash flow positive, 108k oz gold producer on estimated PE of 2.1. Major shareholder, Ruffer LLP Group, notified this week holding increased by 2.4 million shares.
Upcoming events:
August. 2015/16 annual results.
8th September 2016. Presentation in Mayfair, London.
No of shares in issue: 207.8 million Share price ASX 30/7/16: 70.5c
Mkt Cap: AU$146.5 million (US$111 million @ 0.76 conv)
Substantial Shareholders
Ruffer LLP Group: 8.6%
Paradice Investment Management Pty Ltd: 5.9%
Dimensional Fund Advisors LP: 4.2%
52% of shares institutionally held
Co-O resources (30/6/2015): 3.5 million tonnes at an av grade of 10.2 g/t gold for a total 1.15 million oz.
Co-O reserves (30/6/2015): 1.8 million tonnes at an av grade of 7.33 g/t gold for a total 427,000 oz.
Bananghilig resources: Ind & Inf resource 24.5 Mt, at 1.14 g/t, 1.1 million ozs.
Valuation: US$100 per resource oz Co-O only, or $50 per resource oz incl Bananghilig.
Infrastructure upgrades underway at Co-O to increase production, resource and LOM.
New mill with spare capacity. Production to increase to approx 150k oz/year on completion of new Service shaft and other mine improvements by June 2017.
Compelling high-grade expansion opportunities at Co-O
Near-mine exploration opportunities
Gold price: $1,350
AISC FY16: $999
FCF potential: US$300 per oz (US$32 million/year, AU$42 million/year) Cash On Hand as at 30 June 2016: US$22.0 million
Debt: no long term debt. s/t c. $5 million
Hedging: Nil
Production FY16: 108.5k oz
Profit HY15/16 actual: $31.3 million (production 61k, av price $1109) Earnings per share HY15/16 actual: US 15c (AU 20c)
EPS FY16 broker av forecasts: US 26c (AU 34c) (H2 fewer oz 47.5k, but higher gold price $1260) P/E estimated FY16: 2.1
US$1 = AU$1.31 conversion
MML Price at posting:
70.5¢ Sentiment: Hold Disclosure: Held
