Medusa Mining just goes from strength to strength!
The management of this small tightly run company have their done shareholders proud over the last few years and there is still a great deal to come, I am sure.
Well done Medusa Mining!
The one thing going against Medusa is that the type of high-grade narrow vein systen they have means that it makes no sense to drill out a big resource which the market can value. If they can drill up some of their other prospects, particularly Banaghilig bulk disseminated, they may be able to get the market to take notice. They may then get the interest of a major.
Medusa is the ideal type of share to hold in this market as it is highly profitable, well-run and has enormous upside potential. It is my largest gold holding.
CS
Such is always the case with narrow vein mines.
Geoff Davis has commented on this fact a number of times. But this does not worry me in the slightest. Medusa are confident that the Co-O mine will continue to run at the +100k oz production level for a number of years yet and further expansion is planned at the Co-O mine.
The Co-O mine was described as a "long life mine" in the September 2010 company presentation [slide 26].
Co-O production costs are way below most of their competitors and even with dividends being paid to shareholders, the mine will provide the funds for the development of the Bananghilig bulk disemminated mine.
The cash flow will also proivide the funds for the company's other prospects over coming years. There are a number of these inckluding Linig [Cu-Au]; Karamangang [Cu-Mo]; Co-O [nearby Cu prospect]; - slide 21 gives details of them all.
So in Medusa we have a company which has:
I can't think of another gold producer which could tick all those boxes!
And these are the reasons why Medusa Mining is the largest holding in my family portfolios!
I agree with everything you've written. I wonder why such a low cost producer with exploration upside potential hasn't been snapped up by a major yet? The only thing I can think of is that there must be a doubt about being able to turn Co-O into a large enough operation to interest them. Possibly bulk mining projects such as Centamin's or Kingsgate's in Thailand are more scalable. It will be fascinating to see if any major fanices paying the extortionate tax rates Centamin are faced with in coming years.
CS
I guess there could be three reasons:
May as well note here that the prospectus for the main market listing is now available here: http://www.medusamining.com.au/aim/lse/prospectus.pdf
The re-listing should occur on 28th October.
and Medusa has published an updated presentation, here: http://www.medusamining.com.au/newsroom/asx/101022_presentation.pdf
The only significant differences I notice from the September presentation are that it mentions that two new CIL tanks are to be installed at the mill in March 2011 and (slide 13) that the number of headings on ore have increased from 21 to 23.
Cheers,
Mark
Mark - They actually said "on or about" the 28th October though that should be the date as you say! But it's in the hands of the City and Lawyers so I wouldn't be at all suprised if it slipped.
But if there is a slippage the share price may well get caned as many will see this [wrongly] as a "failure" on Medusa's part.
Hi Peter,
As the date is now officially printed in the prospectus, whilst theoretically it can slip, it is highly unlikely to do so, IME. The prospectus would not have been published without listing authority approval.
You don't need to worry. ;0)
I wonder whether the September quarter results will also be published on market move day (they have to be this week)? If so, hope they've got something good to tell the market!
Cheers,
Mark
Hello Mark
Yup!! Now on the main board and trading under SETqx. The current spread is 0.9%
And excellent September quarter results came out as well
We have officially passed the 100K ozs per annum barrier. Mind you only by 4 ozs - I had a mental picture of Geoff Davis using a spoon to get the last little bit in!!
It will be very interesting indeed to see if [or I should say "how"] many Institutions buy in over the next few weeks/months
I really am looking for faults in this company, it seems ALL good. But nothing's perfect... someone please find a fault just so I don't feel like an idiot who's fallen in love with a company.
Why worry!!
I fell in love with Medusa Mining after listening to Geoff Davis at the Master Investor Show in April 2009!!
Went home ......
Bought the shares on Monday [at a modest 80.25p] ......
Have bought more since......
Yes I love MML!
So don't be worried!
I'm a big fan of MML too, and VGM.
P3 it was you that pushed AGQ here wasn't it? If so, thanks for the heads up - in at 13p, doubled up at 21p :)
Sitting pretty.
someone please find a fault just so I don't feel like an idiot who's fallen in love with a company.
Well...it's in the Philippines, so there is political risk. Otherwise I suspect I would have rather more than the current 7 or 8% of my money in it! I really can't think of any miner that hits or exceeds its targets as consistently as Medusa. A really well run outfit!
w
Fangorn - I'm delighted that you got into AGQ as a result of anything I wrote.
As the share price has gone up 20p or so since you wrote on the 1st December, I bet you are over the moon now!! I see these being nearer to £1 in a few months!
Wistman - the Philippines political risk card has been a bit overplayed I feel. I think this started when t1ps.com advised on 5th December that after "a long long chat with Malcolm Burne", they had sold all their MML shares out of the T1ps Gold Fund. t1ps.com went onto say they had "underestimated the political risk in the Phillipines in the area Medusa operates in ".
This hasn't affected the MML price too much and we [Mrs P & I] have not sold any of our MML shares which stay firmly in our ISAs.
I agree 100% with you regarding how well MML is run.
Happy New Year
p3
Hiya P3,
Yes I am indeed. looking to double up again when funds permit in the next week or so. Additionally I went for my first physical investment to via Coininvestdirect - my silver and gold arrives in the next 5 days :)
