INVESTOR PRESENTATION

Transcription

1 Gold producer focused on organic growth in the Philippines INVESTOR PRESENTATION April 2013

2 SNAPSHOT OF MEDUSA Un-hedged, low cost gold producer focused on organic growth in the Philippines 5 year, 2-phase growth path to production of 400,000 ounces per year underpinned by strong cash flow from Co-O Mine (narrow vein underground) Targeted production: FY 2013 (revised): 70,000 to 80,000 ounces at cash costs circa US$290 per ounce FY 2014: 200,000 ounces at cash costs circa US$220 per ounce FY 2015: 200,000 ounces at cash costs circa US$230 per ounce Total Mineral Resources now in excess of 3 million ounces Conceptual exploration target size** of Co-O Mine of 3 to 7 million ounces Excellent exploration upside (820 km 2 of tenement): high grade vein and disseminated bulk gold targets, plus nine copper targets exploration budget for FY 2013 of US$25M ** The potential exploration target size and grade of the Co-O Mine is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is also uncertain if further exploration will result in the target being defined as a mineral resource. 1.

3 CAPITAL STRUCTURE SHARE CAPITAL Ordinary shares: 188,903,911 Unlisted options: 1,715,000 Performance rights: 250,000 Market Cap (at 5 April 2013) ~A$750M LISTINGS ASX & LSE (Code: MML) Share Price $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Month/Year SHAREHOLDER INFORMATION Top 20 ~60.24% Substantial shareholders * M&G 12.88% Fidelity 10.40% Van Eck 8.10% * Information based on substantial shareholder notices provided to the Company Directors 2.22% FINANCIALS & CORPORATE Final un-franked dividend of A$0.02 paid on 4 Oct Total dividend paid in 2011/12 fiscal year - A$0.10 Debt free with total cash, cash equivalent in gold on metal account & bullion of US$15.7M at 31 Dec

4 FINANCIAL AND PRODUCTION STATISTICS Description Unit 31 Dec Dec 2011 Variance (%) Revenues US$ $52.4M $40.9M $11.5M 28% EBITDA US$ $35.3M $28.4M $6.9M 24% NPAT US$ $28.6M $24.0M $4.6M 19% EPS US$ $0.152 $0.127 $ % Dividend paid A$ $0.02 $0.10 ($0.08) - Description Unit Dec 2012 Quarter Sep 2012 Quarter Jun 2012 Quarter Mar 2012 Quarter HY 2012 FY 2011/12 Tonnes mined WMT 89,504 70,591 74,969 85, , ,185 Ore milled DMT 76,999 66,809 66,976 76, , ,138 Recovered grade gpt Recovery % 90% 90% 92% 92% 92% 92% Gold produced ounces 18,177 14,403 15,557 18,258 60,595 60,595 Cash costs * US$ $279 $328 $283 $239 $261 $261 Gold sold ounces 18,492 25,000 20,000 10,000 55,446 55,446 Avg gold price received US$ $1,731 $1,636 $1,624 $1,738 $1,658 $1,658 * Net of development costs and includes royalties and local business taxes but no by-product credits 3.

5 2012 FINANCIAL YEAR Construction of new Co-O Mill with capacity for 200,000 ounces per year on schedule Game-changer Saga Shaft to Level 8 (350 metres) now operational Accelerated development increasing to approximately 1,000 metres per month Gold production of 60,595 ounces at cash costs of US$261 per ounce (nett of development costs and includes royalties and local business taxes but no by-product credits) Total un-franked dividend of A$0.10 per share paid in 2011/12 financial year Revised production guidance 2012/13: 70,000 to 80,000 cash costs circa US$290 per ounce Production (ounces) 120, , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,009 47,869 89, ,474 60, (Guidance) 4.

6 PHILIPPINES MINING INVESTMENTS Government support revitalising mining Increasing foreign investment Projects in feasibility studies and development New projects commenced production Co-O project rarely receives typhoons Fraser Institute 2011 rates Philippines as 34 th safest country to conduct business 5.

7 SETTING East Mindanao Ridge - richly endowed Long mining history World class gold & gold-copper deposits Tenement area covers: Well defined new mineral province Excellent structural framework Major mineralised districts Extensive alteration zones 6.

8 CORPORATE STRATEGY Organic growth (5 year, 2 phase growth path to 400,000 ounces in CY2016) Co-O Mill (200,000 ounces) Bananghilig Mill (200,000 ounces) Aggressive exploration program Gold (projects beyond Co-O and Bananghilig) Copper (unlock value through discovery to crystallise early returns) Preference to self fund all capital requirements To avoid dilution of share capital Pay dividends (temporarily suspended until further notice) 7.

9 PRELIMINARY DEVELOPMENT TIMETABLE Co-O Phase 3 Expansion Indicative capital cost inclusive of development & infrastructure ~US$70M Permitting, engineering, construction contracts Construction phase Production CALENDER YEAR Resource confirmation, expansion drilling Bananghilig Project Feasibility and associated studies, permitting, engineering, construction contracts Construction phase Production Scoping study capex (± 25%) inclusive of development & infrastructure ~US$220M Production profile in (ounces) CALENDER YEAR CY 2011 (Actual) CY 2012 (Actual) CY 2013 CY 2014 CY 2015 CY 2016 Co-O Mill 77,127 66, , , , ,000 Bananghilig Mill ,000 Total 77,127 66, , , , ,000 FINANCIAL YEAR (Jul-Jun) FY 2012 (Actual) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Co-O Mill 60, , , , , ,000 Bananghilig Mill , ,000 Total 60, , , , , ,000 8.

10 MINERAL RESOURCES & ORE RESERVES Deposit Category Tonnes Grade Ounces Mineral Resources * Co-O Mineral Resources Indicated 1,890, ,000 Inferred 4,325, ,304,000 Total Co-O Mineral Resources Indicated & inferred 6,215, ,019,000 Bananghilig Mineral Resources Indicated 11,900, ,000 Inferred 9,000, ,000 Total Bananghilig Mineral Resources Indicated & inferred 20,900, ,080,000 Saugon Mineral Resources Indicated 47, ,700 Inferred 34, ,000 Total Bananghilig Mineral Resources Indicated & inferred 81, ,700 TOTAL RESOURCES Indicated & inferred 27,196, ,114,700 Total Indicated Mineral Resources 13,837, ,333,000 Total Inferred Mineral Resources 13,359, ,781,000 Ore Reserves Co-O Ore Reserves (3) Probable 1,820, , Co-O resources and reserves cut-off 3 g/t gold (30 Jun 2012) 2. Bananghilig resources cut-off 0.8 g/t gold (31 Jul 2012) 3. Saugon resource cut-off 2 g/t gold (5 Apr 2013) * Resources include reserves 9.

11 CURRENT Co-O MILL & INFRASTRUCTURE Current CIL Mill 1,000 tonnes per day Construction of Crusher Grid hydro power at Mine and Mill (standby power at Mine and Mill) 99% local workforce Main sub-station On site assay laboratory and support services New main sub-station Co-O Mill - Crushing Circuit Safety statistics Mine management team Description Jul Feb 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 Lost time injuries (1) LTIFR (2) LTIFR (2/3) Notes: (1) Does not include first aid injuries (2) Per million man-hours worked (3) WA U/G Gold Mining Industry Mine transformer station Mill transformer station Co-O Laboratory 10.

12 NEW Co-O MILL Upgraded Environmental Clearance Certificate to 2,500 tpd granted Construction on schedule for production in June-July Leach tanks completed and converted to CIL Detoxification plant commissioning in April Crusher on schedule for commissioning in June SAG mill installation on schedule for commissioning in June 42 kilometres of electrical cable installation completion in May Tie in of new crushing circuit to leach circuit: 4 weeks production loss Co-O Laboratory 11.

13 NEW MILL PROGRESS Crushing plant Photos of SAG mill and crusher, maybe something else 2,500 tpd SAG Mill De-toxification plant 12.

14 Co-O MINE PRODUCTION 25 year Mining Licence (renewable by another 25 years) Saga Shaft to Level 8 at 350 metres depth is operational 200 metres development completed 4 veins intersected, 7 more modelled The Saga Shaft Ore passes to Level 8 connected in July and August Levels 1 to 6 to 250 metres depth at 50 metre spacing ~ 50 headings on ore ~ 20 stopes on breaking cycle New Mine Office at Co-O Saga Shaft temporary headframe Development increasing to 1000 metres per month Production guidance for FY 2013: 70,000-80,000 ozs (subject to normal mining conditions and commissioning disruptions) Construction of SAGA shaft Saga Shaft 13.

15 Co-O REGIONAL SETTING Text here The potential exploration target size and grade of the Co- O Mine is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is also uncertain if further exploration will result in the target being defined as a mineral resource. 14.

16 Co-O MINE LEVEL 8 PLAN Text here 15.

17 GOLD PORTFOLIO Revised gold exploration budget FY 2013: US$22M (last year actual ~US$35M) PORTFOLIO: Bulk disseminated gold targets Bananghilig Barobo Corridor Others High grade vein targets Saugon Trento Others 16.

18 TAMBIS INTRUSIVE-BRECCIA COMPLEX Intermediate sulphidation, epithermal gold, breccia type system approximately 7km x 3km Extensive argillic alteration, K-radiometric and aeromagnetic anomalies Gold mineralisation in all rock types: extensive vein systems stockworks disseminated (Bananghilig) Copper targets: Kamarangan 17.

19 BANANGHILIG GOLD DEPOSIT Large diatreme breccia system Indicated Resource 608,000 ounces at 1.59 g/t gold Inferred Resource 472,000 ounces at 1.62 g/t gold Infill resource drilling yet to be included Sterilisation drill results include: metres at 7.69 g/t gold metres at 7.00 g/t gold metres at 7.33 g/t gold metres at 2.48 g/t gold metres at 5.47 g/t gold 18.

20 BANANGHILIG CROSS SECTION Text here 19.

21 BANANGHILIG SCOPING STUDY Key parameters ±25% Mill size: ~ 5,000,000 tonnes per annum for 200,000 annualised ounces CAPEX: US$220M comprising, Mill US$170M Associated infrastructure including tailings storage US$50M Mill OPEX: US$12 per tonne Metallurgical recovery: 80% CIL with potential to increase to 90% with flotation + oxidation processing routes at a later stage Indicative mining costs: US$10.50 per tonne/ore Indicative recovered head grade: 1.3 g/t gold Indicative waste to ore strip ratio: 4:1(after pre-strip) Indicative cash costs: US$565 per ounce (excluding royalties) Additional information Resource upgrade on incorporation of 14 infill holes and re-estimation of the resources and reserves in Sep quarter 2013 New mill site being prepared for sterilisation drilling Strong community support indicated from comprehensive community consultation Application for an Environmental Clearance Certificate in preparation Feasibility to ±15% accuracy by external consultants to be completed in Sep quarter

22 COPPER PORTFOLIO Copper exploration budget FY 2013: ~US$3M Aim: to monetise through resource discovery PORTFOLIO: * Lingig (Cu-Au): preparing for new drilling * Usa (Cu-Au): target size 500m x 500m * Sawahon (Cu-Au): drilled, discarded * Lower Bananghilig (Cu-Au): drilled, discarded * Saugon (Cu-Au-Ag): drill/aeromag indications * Kamarangan (Cu-Mo): drill intersections Co-O (Cu): indications of underlying porphyry Gamuton (Cu-Au-Ag): drill indications Lasang (Cu): aeromagnetic signature * Induced polarisation/ground magnetics in progress or completed 21.

23 SOCIAL PROGRAMMES Education Scholarships and assistance Adopt-a-school programmes in 17 schools Over 4,000 students benefitting Co-O Mine 16 bed hospital with doctors Community Development Micro loans to rice farmers Day care & community health centres Road maintenance and bridge building Construction of community buildings Water projects Back to school Environmental Protection Enhancement Environmental monitoring Re-afforestation using rubber plantations Tailings Sponsored dam rice rehabilitation farming Rehabilitation 22.

24 WHY MEDUSA!! Un-hedged, low cost, dividend paying gold producer Self-funded growth path to production of 400,000 ounces per year underpinned by strong cash-flow generated from the Co-O Mine Potential for long mine life at the Co-O Mine (Conceptual exploration target size (**) of 3 to 7 million ounces) Un-explored new mineral field offering excellent upside for: Increasing resource base high grade gold veins disseminated gold deposits porphyry copper-gold deposits Exploration budget of US$25M on 820 km 2 of tenements to unlock value (**) The potential exploration target size and grade of the Co-O Mine is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is also uncertain if further exploration will result in the target being defined as a mineral resource. 23.

25 IMPORTANT NOTICE This presentation contains only a brief overview of Medusa Mining Limited and its associated entities ( Medusa ) and their respective activities and operations. The contents of this presentation (including matters relating to the geology of Medusa s projects), may rely on various assumptions and subjective interpretations which is not possible to detail in this presentation and which have not been subject to any independent verification. This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, as well as factors outside of Medusa s control, may cause the actual results, performance and achievements of Medusa to differ materially from those expressed or implied in this presentation. Medusa does not warrant the accuracy, currency or completeness of the information with respect to forward-looking statements contained in this presentation, nor the future performance of Medusa. To the maximum extent permitted by law, Medusa and its officers, employees and advisers are not liable for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it. This presentation is not intended to be an offer for subscription, invitation, solicitation or recommendation with respect to securities in Medusa in any jurisdiction including the United States. No securities in Medusa have been nor will be registered under the US Securities Act of 1933,(USA) as amended. This presentation does not constitute an advertisement for an offer or proposed offer of securities under Australian law, US law or any other law and is for general information purposes only. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue and has been prepared without consideration of your objectives and needs and financial position. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Medusa or its activities. JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Mr Geoffrey Davis, who is a member of The Australian Institute of Geoscientists. Mr Davis is the Non-Executive Chairman of Medusa Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Davis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Information in this report relating to Mineral Resources has been estimated and compiled by Mr Mark Zammit of Cube Consulting Pty Ltd of Perth, Western Australia. Mr Zammit is a member of The Australasian Institute of Mining & Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Zammit consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Information in this report relating to Ore Reserves is based on information compiled by Dr Spero Carras, FAusIMM of Carras Mining Pty Ltd. Dr Carras has 30 years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Carras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 24.

26 Board of Directors: Geoffrey Davis (Non-Executive Chairman) Peter Hepburn-Brown (Managing Director/CEO) Raul Villaneuva (Executive Director) Robert Weinberg (Non-Executive Director) Andrew Teo (Non-Executive Director) Ciceron Angeles (Non-Executive Director) Address and Contact Details: Unit 7, 11 Preston Street Como WA 6152 Australia Telephone: Facsimile: Gary Powell (Non-Executive Director)