Medusa Mining Limited (MML)

Medusa Mining Limited (MML)

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General Information
Company Name: Medusa Mining Limited
Stock Code: MML
Website: www.medusamining.com.au
Market Cap ($M): 840
Equiv. Shares (M): 169

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 4.480 $ 0.000 $ 0.000 $ 0.000 $ 4.480 0 0%

Current Broker Consensus Recommendation more
Recommendation : Buy
Recommendation Date : 3rd Sep 2010
12 Month Target Price (average) : $5.85
Brokers Surveyed : 2

Market Statistics
% of Market: 0.0642
% of Sector: 0.2245
Sector: Materials
Industry Group: Materials
Industry: Metals & Mining

Company Overview
Company Overview
MML produces Au from the Co-O mine in the Philippines, where it is also actively exploring for new Au-Cu deposits. MML is debt-free. Total resources are 2.03Moz, with 1.0Moz @ 14.9g/t of Probable Reserves at the Co-O mine. The treatment plant is being expanded to 1,000t per day. Phase 2 expansion is designed to increase production from 60,000 to 100,000ozpa by 1QCY10. Ore will come from the Co-O mine. Exploration is increasing the resource base and defining new projects.
Company History
MML has a strategy to emerge as a low-cost 100,000oz per annum Au producer. A dominant land position of more than 820sqkm over one of the more mineralised geological provinces in the world is a potential pathway to success. MML is well placed to use cashflow from the Co-O mine to fund exploration programs with the goal of adding value to shareholders through a major discovery. MML was admitted into the S&P 200 index on 8 July 2009.
Differentiating Factor
Medusa achieved its IPO objectives by achieving cashflow within 21 months of listing—ahead of the targeted two years—and is now expanding production with low additional capital costs. Differentiating factors are (a) robust resources and high grades, low costs and a strong anticipated cashflow and (b) potential for world-class gold and gold-copper discoveries within the richly endowed East Mindanao Ridge.
Major Customers & Competitors
MML's major customers would include the retail, wholesale and international markets. Its competitors consist of other gold mining companies such as Metex Resources (MEE). The mining industry is a global industry, which is highly competitive.

Financial Summary
Year to n/a
 NPAT
Rep $M		 NPAT1
Adj $M		 EPS
c		 EPS chg
%		 PER
x		 PER rel
All Ords x		 PER rel
Sector x		 DPS
c		 Yield
%		 Franking
%		 ROE
%
2005 n/a (91.0) (5.8) (6.2) 0.0
2006 n/a (97.3) (5.6) (8.7) 0.0
2007 n/a 62.8 4.1 5.1 0.0
2008 n/a (901.0) (89.1) (135.2) 0.0
1NPAT is normalised by removing non-recurring items and goodwill. All the above statistics are derived from normalised earnings.

Peer Comparison
P/E (x) EPS Change (%) Dividend Yield (%)
Company Code Last Price Mkt Cap 07A 08F 07A 08F 07A 08F
BHP Billiton Limited BHP $38.55 $129,377M 14.3724 10.1000 6.1400 45.4000 2.6500 2.7000
Rio Tinto RIO $75.00 $45,512M 10.1000 11.0000 86.4000 -8.0000 1.3000 1.6000
Newcrest Mining NCM $38.19 $18,465M 22.2758 24.9000 52.9700 -2.7000 0.7100 0.7000
Fortescue Metals FMG $4.94 $15,351M 15.3274 9.3000 439.7600 97.8000 0.0000 0.0000
Medusa Mining Limited MML $4.48 $840M 8.8175 n/a 95.3600 n/a 0.0000 n/a

Share Price Returns
3 Months (%) 6 Months (%) 12 Months (%)
MML -1.9700 24.1400 37.4200
Sector 6.2735 -1.4183 12.0078
Market 3.2040 -3.3034 3.8945

Ratio Comparison
Year MML Sector Market
P/E (x) FY07 62.8 12.4 15.4
FY08 (901.0) 6.7 10.1
Yield (%) FY07 0.0 1.5 5.2
FY08 0.0 3.3 5.2
EV/EBIT (x) FY07 94.8 15.0 10.5
FY08 (864.9) 34.3 14.0
EV/EBITDA (x) FY07 90.0 17.1 12.5
FY08 (864.9) 21.6 12.0

Directors
Name Position
K Tomlinson Non-Executive Chairman
G Davis Managing Director
R P Daniel Director
Dr R Weinberg Non-Executive Director
Mr Hepburn Non-Executive Director

Management
Name Position
G Davis Managing Director
R Daniel CFO & Joint Company Secretary
P Alphonso Joint Company Secretary

Substantial Shareholders
Name % Holding
Rex Harbour & associates 11.29
Metalloinvest Holding (Cyprus) Limited 10.5
Advance Concept Holdings 8.76
Sprott Asset Management 5.4

Calendar of Events
Date Event
07-Nov-2008 AGM Date for Final Year Result
06-Oct-2008 Reporting Date for Final Year Result
09-Nov-2007 AGM Date for Final Year Result
18-Sep-2007 Reporting Date for Final Year Result
07-Aug-2007 EGM Date for Special Event


Data supplied by Aegis Equities Research Pty Limited (ACN 085 293 910).


IMPORTANT : This information has been prepared without taking into account your objectives, financial situation or needs and you should consider if the information is appropriate for you before making an investment decision. Neither InvestSMART Financial Services Pty Ltd nor any of its Related Companies make any recommendations as to the merits of any investment opportunity referred to in its emails or its related websites. Product disclosure statements for financial products offered through InvestSMART can be downloaded from www.investsmart.com.au or obtained by contacting 1300 880 160. You should consider the product disclosure statement before making a decision about the product. All indications of performance returns are historical and can not be relied upon as an indicator for future performance.

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