MML Q4 & Future Forecasts, page-2

Medusa is well undervalued based on known H1 and Q3 results and forecast Q4 results giving FY profit around US$52 million, with a forward EPS of US 26-27c (A 33.4c) for a P/E ratio of around 2.6.

So the sp could rise by 3x or 4x from here and still have a lowish EPS with further progress expected in the next full year starting in July when the production ramp up should continue to the likely range of 130 - 140k oz with an expected huge further increase in profitability even if gold remains around the $1200 mark as now.

***** The Co-O budget for 2015/16 financial year is currently in preparation and the production guidance for next year will be announced during the current quarter. (ie this month) *****

Forecast H2 production and FY outcome based on:

Q3 production of 23.9k oz (actual) and

Q4 production of 30.1k oz due to increased supply of ore to Co-O mill from L8 shaft capacity increase from 13/1/2015.

FY production: 102,000 oz (guidance 95 - 100k oz).

Description.......... Unit...........H2 14/15.... H1 14/15.... H1 2013

Production......... ounces........54,000........ 47,877....... 26,089
Cash costs......... US$/oz..........$381........... $381......... $422
Gold sold.......... ounces......... 54,000.........50,682....... 27,334
Gold price received US$/oz....$1,200........ $1,234....... $1,304
Gold price received US$/oz....$1,200........ $1,234....... $1,304
Revenues ...............US$........$64.8 M..... $62.2 M....... $34.0 M
EBITDA ..................US$.......................... $39.9 M....... $19.4 M
NPAT .....................US$.........$27.0 M.... $24.8 M....... $13.0 M
EPS(basic) ............ US$.........$0.139....... $0.128........ $0.067

FY 14/15 NPAT estimate: $51.8 M

FY EPS: US 26.7c (A 33.4c @  average A$1.25 to US$1)
Share price: A 87c
P/E ratio: 2.6