The September quarter has come to a close. One needs tojust look...

The September quarter has come to a close. One needs tojust look at the Gold price over the last three months and compare it to theAISC. In my opinion it appears that Medusa already has close to sufficient cashfunds to pay for the decline ("Tiger Way") with little debt

In my opinion my estimates of profit for the recentlypassed Sept Qtr - average gold price for the quarter was approx $1900US. Takingthe highest Medusa ASIC of $1250US we have an estimated profit of $650US per ounce.Assuming Medusa is on target for production - 90000 to 95000 ounces - erring onthe side of caution and assuming 90000 ounces divided by 4 = 22500 ouncesproduced.....therefore estimated profit of 22500 ounces x $650US = $14.6MUS.Todays exchange rate was 0.7191 which will convert to a profit of A$20.3M forthe quarter. My opinion is that this will in the main be free cash flow.

It is my understanding that Medusa has sufficient fundsnow (or very close to) to pay cash for the decline. There is also a cashpile being built. Medusa has very little debt and is unhedged andhas substantial excess production capacity that has been built, paid for andready to go (objective statements). In addition to the cash pile it isfurther noted that interest rates around the world are also very low generally.

Looking at the share profile.....the number of individualholders has been reduced over the last 4 years. It is also noted that over thesame time Ruffer and Arbiter have also increased their positions over the lastfour years and Paradice has come on board as well. Directors of the companyhave also been buying during the September quarter (for the directors interestsrefer to the “Appendix 3Y – Change in Directors Interest” notices lodged withthe ASX).

DYOR