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MML - MEDUSA MINING LIMITED


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In reply to: ballcrusher on Friday 15/10/04 03:40pm

Dont know what happened tp Medusa because Murchison mining limited are going for thic ticker (MML), but they seem to be fly by nights to having been an internet company now wanting to mine iron but have no experience at management level

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In reply to: hayboys on Wednesday 15/12/04 03:41am

hi hayboys

MML is a stock I follow, but I am afraid I do not follow what you are trying to say here... I think you must be mixing this company up with another one entirely. MML is clearly focused on mining in the Philippines and also has leases in Australia. Care to elaborate?

Cheers

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  • 3 weeks later...

Good question by you Michaelk about pe for company, from a academic viewpoint the companys NPV may be more relevant.

as for PE the companay plans to spend up to 10 million for the Dizon project.

I would think around 10million tons will be processed per annum based on the 10 million in CAPEX and a probable 10 year mine life this is also based using figures from other mineral sand projects mainly BMX main difference BMX is a wet dregeing process dreding 2500 TPH cost of dredge around 15 million equals around 15 million tons dredged per annum.

10Million tons at $5.90 ton revenue less $2.00 in costs is $3.90

10 M tons X 3.90 = 39 million a year in profit

PE = 0.5 or each 6 months the company pays for its equity based on a 19.5 million market cap

I guess the big question is can they process 10 million tons per annum for a 10 million CAPEX without diluting the present shares on issue. Off take toll agreements and leasing machinery would help to keep the cap low, the fact it is really just heavy media seperation ie a form of large scale gold panning where the heavy magnetite and gold is left and the magnetite is lifted out by a magnet makes this a cheap process with few likely gliches to get the head grade up to around 6gms a ton from around 0.3 gms a ton at present in the tailings form, the magnetite is a bonus.

A 0.5 PE for 18 million present Cap would be nice would rerate this company to around 180 million cap at a PE of 5 ie this could be a 10 banger

 

 

 

 

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In reply to: hayboys on Wednesday 05/01/05 07:46am

This article in miningnet.net by Tim Treadgold Wed March o4 tends to reinforce plant throughput possibility for a 10 mil CAPEX its using Bacctech process also

 

"I had previous experience building the Youanmi bacterial oxidation plant, using BacTech technology, for Gold Mines of Australia," he said. "I left Sino and said to the government why don't I build you a plant using BacTech. After a lot of thinking they said do it, and they now have the most modern bacterial processing plant in the world.

 

"We took a plant that would have cost $25 million in Australia and built it for $10 million. China is a place where you can achieve some astonishing things. We started the plant in late 1999/early 2000 and within three months we had it commissioned, which is exceptional. It is now producing between 80,000-90,000oz of gold a year with some concentrate from Sino and from other mines, which we blend to get a constant feed."

 

The total BioGold facility (consisting of a number of plants) produces 300,000oz of gold a year. The original plan had been to acquire a 50% stake in BioGold. This has risen to the current 82% which is waiting on government approval which Secker expects to receive around mid-year.

 

For students of Australian gold history, BioGold in China completes a circle by bringing together again Secker and Stephen Everett, one-time chief executive of GMA and a strong proponent of the BacTech process. Everett is a major shareholder and non-executive director of Michelago." end of quote.

 

 

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In reply to: hayboys on Wednesday 05/01/05 11:43am

They are trying to take ove control of the Philsaga mine now. With only around 3 million in assets and needing to get a $28million asset this is like a carp trying to swallow a shark,

obvious massive dilution in shareholding with 25 mill shares to be issued to philsaga shareholders plus having to give them 14 mill in cash. Grades for the mine are high over 8 gms ton AU for over 250,000 ounces. Plans to mill 25000 ounces per annum and ramping up to 40,000 ounces.I think this is split in half for the jv partner mining cost around $200.00

per ounce US.

So say $200 profit on 30,000 ounces is $6 million US per annum split in half for jv then $3 million US.

So what happened to the Dizon project?

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  • 4 weeks later...

In reply to: hayboys on Thursday 06/01/05 05:56am

hi hayboys

 

i could be wrong but doesnt the TKO of Philsaga make Co-O whooly owned by MML?

 

Info on Dizon released today...bactehc technology use at Dizon should be attractive rates since is JVed.

 

I hold options (which are currently undervalued to SP)

 

Cdchi1

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In reply to: cdchi1 on Wednesday 02/02/05 07:47pm

cd I think you are correct on MML, Philsaga becomes fully owned by MML. MML currently have 5M in term loans and only 2M in the bank so this will tend to stretch them.

At 24K ounces Au per annum it would be around $5M in profit for MML at $200 in costs per ounce Au whic at that grade could easily be brought up to $10M profit from a company with a current cap of 20M and the resource potential is substantial

From what I just read it doesnt look like they need the bacterial technology for the tailings as they feel magnetic seperation and "conventional" processing of tailings can occur .

The company management have balls but I tend to see them over extending themselves in the short term, probably wont affect the share price.

I am not in as doesnt conform to my investment criteria geographic risk multiplied by their leveraged financial position is the opposite of my miopic view of using a gold stock to hedge financial market risk, (I have DIO currently drifting down)

MML must be a TO target for a mid size mining company.

 

 

 

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