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| Medusa Mining proposes dividend and constitution amendments |
| 03-SEP-2010 | proactiveinvestors.com.au |
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| 3 Sep, 2010 - 7:00:00 AM |
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Philippines focused gold producer Medusa Mining (CVE:MLL, ASX:MML, LSE:MML) will hold a general meeting of members on 6 October to propose special resolutions to amend the company's constitution.
A key proposed amendment is to remove the restriction that dividends can be paid only out of profits of the company.
This follows recent changes to the Corporations Act 2001 (Cth) that replaced the former profits test with a new three-tiered test which permits payment of dividends in circumstances other than out of profits.
Subject to the passing of this resolution, the directors propose that the company pay an unfranked dividend of A$0.05 per share.
Geoff Davis, managing director, said "it is with considerable pride that the Board announces a maiden unfranked dividend of A$0.05 per share, made possible by recent changes to the Australian Corporations Act."
"The Board acknowledges that Medusa is in a fortuitous position with its Co-O Mine generating strong and positive cash flow and is aware that it needs to strike a balance between returns to shareholders and the future capital requirements of the company's planned organic growth."
"On the proviso that the strong cash flow generated from the Co-O Mine is sustainable, it is the company's intent to reward its shareholders with dividend payments after taking into account the company's future cash requirements and position."
The record date for determining those shareholders on the register entitled to the dividend will be 15 October 2010, which is seven business days after the date of the meeting.
The ex-dividend date will be 11 October 2010 and the dividend is expected to be paid on 8 November 2010. There is no foreign conduit income attributed to the dividend.
The other proposed amendments to the company's constitution include the insertion of pre-emptive rights provisions in respect of new issues of shares for cash.
The directors consider that such provisions, which are designed to protect shareholders' interests in the company, are appropriate for a company seeking admission to the Main Market of the London Stock Exchange.
A separate special resolution will be proposed to seek approval to re-insert proportional takeover provisions into the company's constitution.
The constitution previously contained proportional takeover provisions which have now lapsed. The proposed proportional takeover provisions are substantially the same as the previous provisions.
Increased production at its flagship Co-O mine in the Philippines and higher gold prices have helped Medusa achieve record-breaking results in the last financial year.
Revenues soared 121 percent to $94.6 million, while EBITDA (earnings before interest, tax, depreciation and amortisation) reached $73.7 million, marking a year-on-year improvement of 142 percent.
Earnings per share rose 102 percent to $0.378. The company has highlighted record net after tax profits (NPAT) of $65.8 million. Adjusted underlying NPAT climbed 152 percent to $71.7 million and adjusted underlying EBITDA rose 162 percent to $79.6 million.
http://www.proactiveinvestors.com.au/companies/news/9722/medusa-mining-proposes-dividend-and-constitution-amendments-9722.html
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