MML - S/R & views please

Anne I received this today by mail. It originates from DirectorsTalk.com. thought it might interest you.

Medusa Mining* (MML LN) 109 pence, Mkt Cap £188.9m – Continuing share price weakness (company letter below)
Buy: Target Price 450 pence
· The Medusa share price has been under pressure as gold and the sector falls out of favour.
· The company is in the process of commissioning the expansion at the Co-O mine which will give them 200,000oz of production next year at full ramp up.
· The expansion is on schedule with the mill expansion from 1,000 to 2,500 tonnes per day on target.
· Mine production is increasing as most of the development work to meet mine expansion has been completed.
· Expansion of the mine has been self funded and the company has been able to meet capital requirements from internally generated funds.
· No new news has come out to drive this share price fall.
Below is the letter sent to the company by the ASX Listing Compliance following the fall in the share price last week.
· PRICE QUERY from Listings Compliance, ASX:
We refer to your letter dated 11 June 2013 and respond as follows.
1. Is the Entity aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?
No, the Company is not aware of any such information.
2. If the answer to 1 is yes, is the Entity relying on Listing Rule 3.1A not to announce that information under Listing Rule 3.1? Can an announcement be made immediately? If an announcement cannot be made immediately, why not and when is it expected that an announcement will be made?
Not applicable.
3. If the answer to question 1 is "no", is there any other explanation that the Entity may have for the recent trading in its securities?
No, save for the matter referred to below, the Company does not have any other explanation for the recent trading in its securities.
As foreshadowed in the Company's June 2012, September 2012 and April 2013 Quarterly Reports, new Philippine legislation relating to mining taxes and royalties has been proposed but is yet to be finalised by Congress. However, the Mining Industry Coordinating Council (MICC), who is currently preparing the draft bill, recently announced it was considering two options for the relevant "revenue sharing scheme":
(i) take a percentage of mining companies' gross margin; or
(ii) take a portion of mining companies' gross revenue, where income tax paid will be deducted after calculating the Government's entitlement.
Any proposed changes to existing Philippine mining taxes and royalties remain subject to deliberation and approval by Congress. It is possible that recent press on the proposed changes, and the MICC's announcement, may have influenced recent trading in the Company's securities.
4. Please confirm that the Entity is in compliance with the Listing Rules and, in particular, Listing Rule 3.1.
The Company is in compliance with the Listing Rules and, in particular, Listing Rule 3.1.
Our Conclusion: The response to the query by Compliance Listings of the ASX would suggest that there is no new news that the company can disclose which should impact their share price. On fundamentals the share price looks extremely oversold even based on downgraded expectations on the production outlook.

It does help, thanks Remo. I think I was a little transfixed by all those gaps! I've been in this share before (no position now) and from a fundamental position I'm pretty confident that it has something to offer - however, as you say - at the moment it's in 'no mans' territory' and probably left until a revival is clearly under way.

Thank you for your views

Anne

Hi Anne
This ones too risky to try and catch the bottom.
This has been in a down trend for some time and all the indicators are still pointing down.
You need to wait for a 123 low to form but even then you have to be cautious as this has been giving a few 123 low false signals. This ones more for the gambler as theirs no signals on this currently and its not traded this low before so its in no mans territory.
Currently theirs a hammer forming so that's a small sign that the bulls are trying to fight this but with hammers its best to trade them of previous supports and in the case of mml there is none.
Best way is to wait for a 123 low to form followed by a trend line break.The nearest trend line for this is at 142 area so 40% away...So a tad risky .These are the type of charts best be avoided due to no history.
sorry i cant be more clear but this is currently a falling knife so best to wait for a 123 low to form with stops below the 2 point just in case. That way a small risk but manageable.
hope that helps.......

dl.dropboxusercontent.com/u/4899609/mml8thjune.png

I wonder if anyone is watching this? It has fallen considerably in the last couple of months leaving some rather interesting gaps. Today it has fallen further and - just at the moment - seems to be experiencing something of a bounce.

Does anyone have any views on whether, or not, there remains the likelihood of further downward pressure or could this be the beginning of movement back to close some of the gaps left in it's recent rapid descent?

Many thanks
Anne

Hi Paitech
Theres no support for this share as its at the lowest its ever been.
You would have to wait for a 123 low to form and higher highs before even considering this share. This one is probably best avoided unless you believe in the fundamentals of the company.
This broke out of a symmetrical triangle and the target was roughly 115 points. so target is roughly 185.(so a support of sought)This is pretty close to it now.
As for resistance...
resistance...265.5(strong),,310.34,,,349.34(gap),,,373(short term trend line)

Hi all,

Any TA on MML would be much appreciated...

Ta

G