http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Thu, 24 May 2018 20:05:41 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Medusa Mining still on track to hit production guidance of between 85,000 and 95,000 ounces of gold this year ]]> http://www.proactiveinvestors.com.au/companies/news/196052/medusa-mining-still-on-track-to-hit-production-guidance-of-between-85000-and-95000-ounces-of-gold-this-year-196052.html Medusa Mining Ltd (ASX:MML) produced 22,918 ounces of gold from its Co-O mine in the Philippines during the quarter to March 2018. That was down slightly on the previous quarter as planned maintenance work prevented access to shafts.

Medusa continues to guide for full year production of between 85,000 and 95,000 ounces.

That guidance was revised upwards in December, and the company continues to predict that it will hit the upper end of that guidance.

All in sustaining costs rang in at US$1,073 per ounce, allowing for decent margin against the prevailing gold price of around US$1,310.

Ongoing drilling work has continued to push out known areas of mineralisation.

Total cash and cash equivalent of gold on metal account at the end of the quarter was approximately US$18.1mln, up from the Dec 2017 figure of US$16.7mln.

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Mon, 30 Apr 2018 12:28:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196052/medusa-mining-still-on-track-to-hit-production-guidance-of-between-85000-and-95000-ounces-of-gold-this-year-196052.html
<![CDATA[News - Medusa Mining ends Cambodian interest ]]> http://www.proactiveinvestors.com.au/companies/news/192545/medusa-mining-ends-cambodian-interest-192545.html Medusa Mining Limited (ASX:MML) will not go any further with an exploration venture in the Prek Kampi region of Cambodia.

A Memorandum of Understanding (MOU) with SEA Resources that might have resulted in Medusa taking a 70% stake expired on March 1.

READ: Medusa Mining's production rises as grades tick up

An earn-In agreement could not be finalised by the MOU deadline, said Medusa, though it remains keen to expand its presence in South East Asia as part of its longer-term strategic diversification plan.

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Fri, 02 Mar 2018 16:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/192545/medusa-mining-ends-cambodian-interest-192545.html
<![CDATA[News - Medusa Mining produces fewer ounces in September quarter but repeats full year guidance ]]> http://www.proactiveinvestors.com.au/companies/news/168323/medusa-mining-produces-fewer-ounces-in-september-quarter-but-repeats-full-year-guidance-168323.html A drop in grade as expected in the September quarter meant fewer gold ounces were produced from its  Co-O gold mine in the Philippines, said Medusa Mining Ltd (ASX:MML).

The firm produced 21,157 ounces of the yellow metal at an average head grade of 5.26g/t against 25,429 ounces at 6.32g/t in the preceding June quarter.

The drop in grade was expected mostly because of 9% more mine development in the quarter compared to the previous three months.

That saw 4,960 metres of horizontal and vertical mining compared to 4,501 metres in the June quarter.

Production guidance for the full year to June 30, 2017 remains the same, however, at 105,000 to 115,000 ounces, Medusa said.

The miner sold 21,152 ounces in the period, down from 25,519 in the previous three months, while all in sustaining  costs (ASIC) were US$1334 per ounce compared to US$1088 in the June period, impacted by exceptional costs like automation at the mill and costs related to dewatering.

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Wed, 02 Nov 2016 06:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/168323/medusa-mining-produces-fewer-ounces-in-september-quarter-but-repeats-full-year-guidance-168323.html
<![CDATA[News - Medusa Mining Ltd increases gold output in June 2016 quarter ]]> http://www.proactiveinvestors.com.au/companies/news/158956/medusa-mining-ltd-increases-gold-output-in-june-2016-quarter-70086.html Medusa Mining Ltd (ASX:MML) increased its gold output from the flagship Co-O mine in the June 2016 quarter.

The Philippines mine produced 25,429 ounces in the three months to end June, compared to 21,980 ounces in the previous quarter (to March).

The headgrade was also better than in the previous quarter - at 6.32 g/t gold compared to 5.47 g/t.

That meant it has produced 108,578 ounces in the year to date - higher than its previously revised guidance of 108,000 ounces.

All in sustaining costs (ASIC) were US$1,088 per ounce, compared to US$1,033 per ounce in the March quarter.

For the 2016/17 year, the firm is guiding for between 105,000 and 115,000 ounces to be produced, and all-in-sustaining-costs to be between US$1000 and US$1,100 per ounce.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 28 Jul 2016 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158956/medusa-mining-ltd-increases-gold-output-in-june-2016-quarter-70086.html
<![CDATA[News - Medusa Mining increases gold output in latest quarter ]]> http://www.proactiveinvestors.com.au/companies/news/128694/medusa-mining-increases-gold-output-in-latest-quarter-128694.html Medusa Mining  Ltd (ASX:MML) increased its gold output from the flagship Co-O mine in the latest quarter.

The Philippines mine produced 25,429 ounces in the three months to end June, compared to 21,980 ounces in the previous quarter (to March).

The headgrade was also better than in the previous quarter - at  6.32 g/t gold compared to 5.47 g/t.

That meant it has produced 108,578 ounces in the year to date - higher than its previously revised guidance of 108,000 ounces.

All in sustaining costs (ASIC) were US$1,088 per ounce, compared to US$1,033 per ounce in the March quarter.

For the 2016/17 year, the firm is guiding for between 105,000 and 115,000 ounces to be produced, and all-in-sustaining-costs to be between US$1000 and US$1,100 per ounce.

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Wed, 27 Jul 2016 12:16:00 +1000 http://www.proactiveinvestors.com.au/companies/news/128694/medusa-mining-increases-gold-output-in-latest-quarter-128694.html
<![CDATA[News - Medusa Mining's current work at Co-O mine supports output guidance ]]> http://www.proactiveinvestors.com.au/companies/news/125644/medusa-mining-s-current-work-at-co-o-mine-supports-output-guidance-125644.html Work currently underway at the Co-O mine in the Philippines, supports Medusa Mining Limited's (ASX:MML) production guidance of 108,000 ounces of the yellow metal for 2016, its chief has said.

Speaking in a market briefing, newly hired Boyd Timler said the findings of a mine review, which started in December, had fed into current work.

"Additionally, the review will be key in developing the 2016-17 budget and strengthening Medusa’s medium to long term strategy," he said.

"What is critical for the short to medium term, is the completion of the mine capital projects as quickly and prudently as we can, alleviating infrastructure and production constraints at Co-O and enhancing our ability to convert resources to reserves."

Current output guidance for the year is down from 120- 130,000 ounces, not least due to lower than expected output in the first quarter to end March.

But Timler pointed out at the briefing that year to date production was up 14% on the previous corresponding period.

"I expect the average production over this nine-month period is reflective of the mine’s sustainable performance until necessary infrastructure projects are completed."

For the three months to end March, the miner produced 21,980 ounces at a head grade of 5.47 g/t gold compared to 29,674 ounces in the last quarter (to December 2015).

All in sustaining costs (ASIC) were US$1,033, up from US$950 in the preceding quarter.

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Fri, 06 May 2016 11:46:00 +1000 http://www.proactiveinvestors.com.au/companies/news/125644/medusa-mining-s-current-work-at-co-o-mine-supports-output-guidance-125644.html
<![CDATA[News - Medusa Mining Ltd updates on gold production guidance ]]> http://www.proactiveinvestors.com.au/companies/news/158955/medusa-mining-ltd-updates-on-gold-production-guidance-68368.html Medusa Mining Ltd (ASX:MML), which operates the Co-O mine in the Philippines, now expects production for the year of around 108,000 ounces of gold.

That's down from 120- 130,000 ounces after lower than expected output in the first quarter to end March and the results of a new operations review.

For the three months to end March, the miner produced 21,980 ounces at a head grade of 5.47 g/t gold compared to 29,674 ounces in the last quarter (to December 2015).

All in sustaining costs (ASIC) were US$1,033, up from US$950 in the preceding quarter.

Underground drilling to expand the resource kicked off last month from levels eight to 16, but there were initial delays due to rig availability and issues around the chambers.

The firm highlighted that elevated AISC guidance (between US$900 and US$1,000) will persist until all mine medium term waste infrastructure projects are completed.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 02 May 2016 07:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158955/medusa-mining-ltd-updates-on-gold-production-guidance-68368.html
<![CDATA[News - Medusa Mining lowers production guidance for 2016 ]]> http://www.proactiveinvestors.com.au/companies/news/125409/medusa-mining-lowers-production-guidance-for-2016-125409.html Medusa Mining Limited (ASX:MML), which operates  the Co-O mine in the Philippines, now expects production for the year of around 108,000 ounces of gold.

That's down from 120- 130,000 ounces after lower than expected output in the first quarter to end March and the results of  a new operations review.

For the three months to end March, the miner produced 21,980 ounces at a head grade of 5.47 g/t gold compared to 29,674 ounces in the last quarter (to December 2015).

All in sustaining costs (ASIC) were US$1,033, up from US$950 in the preceding quarter.

Underground drilling to expand the resource kicked off last month from levels eight to 16, but there were initial delays due to rig availability and issues around the chambers.

The firm highlighted that elevated AISC guidance (between US$900 and US$1,000) will persist until all mine medium term waste infrastructure projects are completed.

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Fri, 29 Apr 2016 10:03:00 +1000 http://www.proactiveinvestors.com.au/companies/news/125409/medusa-mining-lowers-production-guidance-for-2016-125409.html
<![CDATA[News - Medusa Mining Ltd appoints new chief executive ]]> http://www.proactiveinvestors.com.au/companies/news/123943/medusa-mining-ltd-appoints-new-chief-executive-123943.html Philippines-based gold miner Medusa Mining Ltd (ASX:MML) has appointed experienced mining executive Boyd Timler as its new chief executive.

A 30-year veteran in the industry, Timler’s skills and experience in operating large scale projects in international environments, and in developing brownfield projects from PFS through to production, would be a major asset as it develops its operations in the Philippines said Andrew Teo, the miner’s chairman.

Medusa operates the Co-O mine in the Philippines and has forecast production this year of between 120,000 and 130,000 ounces of gold.  

Timler said: “I am looking forward to the challenge of delivering on the company’s immense potential of the mine operations.”

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Tue, 22 Mar 2016 07:27:00 +1100 http://www.proactiveinvestors.com.au/companies/news/123943/medusa-mining-ltd-appoints-new-chief-executive-123943.html
<![CDATA[News - Medusa Mining Limited sees near 28% increase in output in latest half year ]]> http://www.proactiveinvestors.com.au/companies/news/123563/medusa-mining-limited-sees-near-28-increase-in-output-in-latest-half-year-123563.html Medusa Mining Limited (ASX:MML), which operates  the Co-O mine in the Philippines, reported a strong set of interims, which saw significant cash flow and a 27% uptick in net profit.

"Despite the challenges associated with L8 shaft repairs and ongoing work to de-bottle-neck the haulage shaft, the company was able to follow up its record quarter of production in September with an excellent December quarter," chairman Andrew Teo told investors.

He added that the first half produced 61,169 ounces of gold, a 27.8% increase on the same period the previous year and a 21.2% increase on the preceding six months.

"Achieving this result in the face of some challenging conditions is testament to the dedication of our men underground in the Philippines," he added.

Revenues were up 11% to US$69mln from US$62.2mln in the same half to end 2014, while net profit was US$31.3mln (2014: US$24.7mln). Pre-tax profit came in at US $31.3mln against US$25.6mln the previous year.

The miner said its production guidance for the year to June 30 remained at between 120,000 and 130,000 ounces but was subject to an independent review of operations.

Cash costs are expected to remain between US$400 to US$450 per ounce and AISC (all in sustaining costs) of between US$900 to US$1,000 per ounce.

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Tue, 01 Mar 2016 08:45:00 +1100 http://www.proactiveinvestors.com.au/companies/news/123563/medusa-mining-limited-sees-near-28-increase-in-output-in-latest-half-year-123563.html
<![CDATA[News - Medusa Mining repeats output guidance for Co-O mine ]]> http://www.proactiveinvestors.com.au/companies/news/158954/medusa-mining-repeats-output-guidance-for-co-o-mine-66808.html Medusa Mining (ASX:MML) said it expects gold output from its Co-O mine in the Philippines to remain at between 120-130,000 ounces for the 2015-16 year.

All in sustaining costs will remain as previously announced, at an elevated US$900 to US$1,000 per ounce until all medium term infrastructure projects are completed, it told investors in the December quarterly update.

The three months saw production of 29,674 ounces at a head grade of 6.79g/t - down from 31,495 ounces at 6.8 g/t in the September quarter.

Gold recovery was the same as in the September quarter at 94%.

Meanwhile, results from underground resource drilling included 1 metre at 226 g/t gold; and 0.45 metres at 167 g/t gold.

Total cash on hand at the end of the quarter was around US$16mln compared to around US$11.6mln as at September 30 last year.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 02 Feb 2016 08:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158954/medusa-mining-repeats-output-guidance-for-co-o-mine-66808.html
<![CDATA[News - Medusa repeats output guidance for Co-O mine ]]> http://www.proactiveinvestors.com.au/companies/news/121989/medusa-repeats-output-guidance-for-co-o-mine-121989.html Mon, 01 Feb 2016 10:40:00 +1100 http://www.proactiveinvestors.com.au/companies/news/121989/medusa-repeats-output-guidance-for-co-o-mine-121989.html <![CDATA[News - Medusa's chairman takes charge as CEO Davis retires again ]]> http://www.proactiveinvestors.com.au/companies/news/119089/medusa-s-chairman-takes-charge-as-ceo-davis-retires-again-119089.html Medusa Mining (ASX:MML) said chairman Andrew Teo is to take over executive duties following the retirement of interim chief executive Geoff Davis.

Davis, who was talked out of retirement in September to re-join the company as interim chief executive, left the company today for the second time.

Andrew Teo, executive chairman, said the search for a new chief executive is in its final stages, he said, with an announcement expected shortly.

He was speaking at the Philippines-based gold miner’s annual general meeting, where he noted that Medusa remains on track to hit its full-year production guidance of between 120,000 and 130,000.

Production in the September quarter was at a record high for the company, though the December quarter will likely be slightly lower due to repairs on a shaft and scheduled maintenance over the Christmas break.

All in sustaining costs (AISCs) over the quarter were lower, around US$950, with AISC for the remainder of the year expected to be between US$900-US$1,000.

Shares closed in Australia 3.2% higher to 0.47p.

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Thu, 12 Nov 2015 11:12:00 +1100 http://www.proactiveinvestors.com.au/companies/news/119089/medusa-s-chairman-takes-charge-as-ceo-davis-retires-again-119089.html
<![CDATA[News - Medusa Mining ups output by 19% as grades improve ]]> http://www.proactiveinvestors.com.au/companies/news/116694/medusa-mining-ups-output-by-19-as-grades-improve-116694.html Medusa Mining (ASX:MML) is on track to meet its production target this year after a 19% rise in its first quarter to just shy of 35,000oz of gold.

The Philippines–based miner expects to produce between 120-130,000oz, versus 105,000oz, and repeated that with the latest numbers.

All-in-sustaining costs in the quarter were US$953, down from US$1,076 and in line with the target for the current year of between US$900-1,100.

The head grade rose to 6.8 g/t from 6.1g/t while recoveries held steady at 94%.

In the three months to September, Medusa sold 31,176 ounces at an average price of US$1,121 per oz compared to 29,350oz at an average US$1,197 in the preceding quarter.

House broker SP Angel said they were good numbers reflecting recent work to turn round the performance at Co-o.

As well as the higher grade, implementation of the new stoping protocol and payment system helped to improve stope grades drawn.

Recent development work at the Co-o mine has been on deeper underground resources and included a new service shaft.

The shaft headframe, main winder and sinking equipment are scheduled to arrive this quarter. They will be used to widen the shaft to its final dimensions from Level 2 to Level 8.

An underground drilling programme to extend the mine down from level 8 to level 16 starts this quarter.

SP Angel added: “The freeing up of the L8 shaft once the service shaft is in place in the second quarter of 2016 will be another step in terms of ore availability and improved mill utilisation.

“This should help to bring down costs and improve cash flows.”

Shares in the Australia–listed group rose 6% to A$0.6.

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Tue, 27 Oct 2015 07:41:00 +1100 http://www.proactiveinvestors.com.au/companies/news/116694/medusa-mining-ups-output-by-19-as-grades-improve-116694.html
<![CDATA[News - Medusa Mining has flexibility to cope with lower gold prices says boss ]]> http://www.proactiveinvestors.com.au/companies/news/111135/medusa-mining-has-flexibility-to-cope-with-lower-gold-prices-says-boss-111135.html Geoff Davies, Medusa’s Mining (ASX:MML) chief executive, said recent drilling has given the company the flexibility to adjust and remain profitable in the current gold price environment.

At the end of June Medusa’s Co-O gold mine in the Philippines had JORC compliant probable reserves of 427,000 ounces from 1.81mln tonnes of ore at a grade of 7.33 g/t.

The estimate was based on a gold price of US$1,150 per oz.

Davies said this price was US$100 per ounce lower than a year ago but reserves had only dropped by 4% and the total had been maintained around the same level for the last seven years.

Medusa’s recent focus has been to develop more resources underground at Co-O and this had increased its room for manoeuvre, said Davies,

 “As the understanding of the deposit has increased and new lower levels in the mine are being accessed and developed, it is apparent that we now have the flexibility to adjust cut-off grades to suit the gold price environment to ensure we only mine profitable ounces.

“This policy is being actively pursued in the mine operations and is being reflected in the increasing head grade at the mine,” he added.

“Drilling from Level 8 for the period 2015-17 in combination with development on Levels 9 and 10 should continue to replace the mine’s reserves (and resources) on an annual basis.” 

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Fri, 25 Sep 2015 10:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/111135/medusa-mining-has-flexibility-to-cope-with-lower-gold-prices-says-boss-111135.html
<![CDATA[News - Medusa Mining maintains indicated resource in Philippines ]]> http://www.proactiveinvestors.com.au/companies/news/110578/medusa-mining-maintains-indicated-resource-in-philippines-110578.html Higher confidence indicated gold resources remains largely unchanged compared to 2014, said Philippines-focused miner Medusa Mining (ASX:MML) as it issued its latest annual update.

The firm mined (depleted) 105,000 ounces in the year to end June, but the amount in the indicated category was around the same and at a slightly higher grade, the company said.

This was mainly because of the firm converting inferred into indicated resources by infill drilling, it added.

At the flagship Co-O mine, total inferred and indicated are now estimated at 3.5 million tonnes at 10.2 g/t gold for a total 1.15 million ounces gold, compared to the 2014 estimate of 4.34 million tonnes at 10.1 g/t gold for a total of 1.41 million ounces gold.

At the Bananghilig gold deposit, total inferred and indicated resources are 24.52 million tonnes at a grade of 1.44 g/t gold) and Saugon Gold - 81,500 tonnes at a grade of 5.97g/t gold - remain unchanged from 2013.

Chief executive Geoff Davis said the fact indicated resources were maintained validated the group's infill drilling emphasis during the year.

"Once the new reserve estimates are completed shortly, it is expected that the level of reserves should be maintained within the same range as the previous 6 years, a very consistent record.

"Whilst Inferred Resources have reduced primarily through less extensional drilling to replace converted resources, it is planned that the drilling due to commence from Level 8 in the December quarter will be a combination of extensional and infill drilling, and which should extend the resources to depth."

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Mon, 07 Sep 2015 10:41:00 +1000 http://www.proactiveinvestors.com.au/companies/news/110578/medusa-mining-maintains-indicated-resource-in-philippines-110578.html
<![CDATA[News - Medusa Mining plays down A$260mln impairment ]]> http://www.proactiveinvestors.com.au/companies/news/110509/medusa-mining-plays-down-a260mln-impairment-110509.html Philippines-based gold miner Medusa (ASX:MML) has taken a A$260mln write-down of its assets due to the slide in the price of the precious metal.

As a result of the write-down, Medusa reported a net loss of A$218.1mln for the year to June.

Geoff Davis, chief executive said: “Given that the carrying value of the company’s asset was considerable higher than its market capitalisation at 30 June 2015, the company was compelled to perform an impairment test, which resulted in a charge of almost US$260mln to its 2015 financials.

“I wish to add that this is purely an accounting treatment and has no bearing on our JORC resources and reserves in the Co-O mine and therefore will not affect operations.

“On the positive side, the impairment will decrease future depreciation and amortisation charges.”

Ignoring the impairment, Medusa made an underlying profit of US$41.5mln (US$30.9mln), an increase of 34% and a good result, said Davies.

House broker SP Angel said that the charge was inevitable given the current market cap of the company.

“Medusa remains profitable even under current gold prices with an AISC [all-in-sustaining-costs] of around US$1,000/oz with scope for this to come down as operational improvements are put into place to improve mining throughput to match plant capacity.

“Continued generation of cash and return of management credibility will be key to re-rating the shares as well as a stable gold price.”

The impairment was based on changes to a number of assumptions notably a reduction in the gold price forecast by US$100 to US$1,200 per ounce, an increase in the discount rate to  11.1% from 10%.

Under the new assumptions, probable reserves fall to 590,000oz from 820,000 oz.

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Thu, 03 Sep 2015 13:01:00 +1000 http://www.proactiveinvestors.com.au/companies/news/110509/medusa-mining-plays-down-a260mln-impairment-110509.html
<![CDATA[News - Medusa Mining meets guidance with 2015 gold output ]]> http://www.proactiveinvestors.com.au/companies/news/109352/medusa-mining-meets-guidance-with-2015-gold-output-109352.html Medusa Mining (ASX:MML) met its production guidance for the year to end June, it said, revealing output was 98,539 ounces of the yellow metal.

The firm, which operates the Co-O mine in the Philippines, had guided for between 95,000 and 100,000 ounces.

Next year, it expects to produce between 120,000 and 130,000 ounces as operations at the site are optimised and improved.

In the  three months to end June, its fourth quarter, the miner produced 26,542 ounces at a head grade of 6.01 grams per tonne (g/t) gold with AISC (all in sustaining costs) of US$1,076 per ounce.

That was an improvement on the third quarter, which saw 23,940 ounces generated at 5.84 g/t gold with AISC of US$1,073 per ounce.

Medusa sold 29,350 ounces in the quarter compared to 17,169 ounces in the March quarter, while the average gold price received in the latest three months was reduced to US$1,197 from US$1,217 per ounce in the March quarter.

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Mon, 27 Jul 2015 07:54:00 +1000 http://www.proactiveinvestors.com.au/companies/news/109352/medusa-mining-meets-guidance-with-2015-gold-output-109352.html
<![CDATA[News - Medusa Mining pleased with progress of new service shaft at Co-O ]]> http://www.proactiveinvestors.com.au/companies/news/108744/medusa-mining-pleased-with-progress-of-new-service-shaft-at-co-o-108744.html Construction at Medusa Mining’s (ASX:MML) new service shaft at the Co-O mine in the Philippines is making good progress.

The new shaft will drop to 400 metres underground and provide access to the mine between levels 3 and 8.

It will increase hauling capacity from level 8 to around 1,700 dry tonnes a day (dptd) from 1,400 and lift the total mine capacity to around 2,700dptd from all shafts.

The rope guided man-cage is on track to be installed in the second quarter next year and once that is done all men and material movement will be transferred to the new shaft from the L8 Shaft.

The L8 shaft will then be used exclusively to hoist ore to attain the 1,700 tonnes per day haulage target.

Geoff Davis, Medusa’s chief executive, said:  “The construction of the Service Shaft has got off to a great start and should be completed within the estimated timelines with all long lead times items ordered and being manufactured.” 

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Tue, 07 Jul 2015 08:21:00 +1000 http://www.proactiveinvestors.com.au/companies/news/108744/medusa-mining-pleased-with-progress-of-new-service-shaft-at-co-o-108744.html
<![CDATA[News - Medusa Mining developing a reputation for outperformance ]]> http://www.proactiveinvestors.com.au/companies/news/108120/medusa-mining-developing-a-reputation-for-outperformance-108120.html Things are looking up for Medusa Mining (ASX:MML), the owner of the profitable Co-O gold mine in the Philippines.

After a period in which it developed a reputation for being accident prone, the new management team has turned things around to the extent that the phrase “topped expectations” is being frequently used in reports on the company’s progress.

Results for the second half of 2014, released back in February, showed an 83% increase in revenues to US$62.2mln from US$34.0mln the year before, while underlying earnings (EBITDA) more than doubled to US$39.9mln.

The strong improvement in trading was achieved despite an unhelpful gold price; the average gold price received in the second half of 2014 was US1,234 an ounce, down from US$1,304 in the second half of the previous year.

Since then, the company’s first (calendar) quarter production update continued the improving production trend, with increased availability of ore from the level 8 shaft and various operational initiatives to mitigate dilution indicating the new management team, led by founder Geoff Davis who resumed the chief executive role, has a handle on things at Co-O.

Proof of that came in June when the company upped production guidance for the fiscal year to the end of June 2016. The company now expects to churn out 120,000 to 130,000 ounces, which is a 20 to 30 per cent increase on previous guidance; meanwhile, the company expects to see continued improvement in the following year with guidance set at 135,000 to 145,000 ounces.

As mother used to warn in our youth, it takes very little time to develop a bad reputation and a mighty long time to lose one, but the message seems to be getting through, with Medusa’s share price up almost 30% year-to-date to A$0.84.

Based on the last financial year’s earnings per share of 27 cents, that still leaves the shares at a jaw-dropping cheap earnings multiple of 3.1, which, even if you are bearish on the gold price, makes the stock a prime candidate for a re-rating.

As it happens, the gold price has been steady over the last three months, with the spot price edging up from US$1,160 an ounce in mid-March to around US$1,178 in mid-June.

With Medusa’s all in sustaining costs for the forthcoming financial year set to be somewhere between US$960 and US$1,060 an ounce – and that’s with around US$80 an ounce factored in relating to capital expenditure on improving the service shaft – the company has a decent cushion between production costs and selling prices.

Bear in mind also that after a period when the company had proved over-optimistic in setting guidance, the new management is erring on the side of caution as it seeks to restore confidence in the market.

Mining specialist SP Angel, a buyer of the stock, is a big fan of the stock and sees scope both for increased production and lower costs.

“After an extended period of disappointment, the new management team are turning things around,” the broker said back in April.

While the flagship mine continues to operate profitably and churn out cash, the company has a substantial pipeline of resource prospects in the Philippines that could add further benefits of scale.

Over the last 11 years the miner has acquired a portfolio of tenements with prospects that range from 'greenfields' to 'resource definition' stage.

Currently, apart from the Co-O mine, only the Bananghilig and Saugon deposits have resources, but Bananghilig is undergoing further geological work.

Medusa has identified two high priority exploration areas: the Co-0 mine environs - notably the NT series of veins, East Agsao and West Road 17 - and the Guinhalinan gold prospect.

According to CEO Geoff Davis: “Our core tenements have many years of exploration ahead as our substantial pipeline of prospects is systematically assessed, and more likely to be identified over time.”

In years gone by, that promise of “jam tomorrow” might not have cut much ice, but the new Medusa has proved its mettle in developing gold assets in the Philippines – although it appears not everyone in the market has realised this yet.

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Wed, 17 Jun 2015 16:38:00 +1000 http://www.proactiveinvestors.com.au/companies/news/108120/medusa-mining-developing-a-reputation-for-outperformance-108120.html
<![CDATA[News - Medusa Mining ups production guidance ]]> http://www.proactiveinvestors.com.au/companies/news/108101/medusa-mining-ups-production-guidance-108101.html Medusa Mining (ASX:MML) has upped production guidance for the year to end-June 2016 at its flagship Co-O gold mine in the Philippines.

The company said it expects production will fall somewhere between 120,000 and 130,000 ounces of gold in fiscal 2015/16, while production for fiscal 2016/17 is expected to rise to 135,000 – 145,000 ounces.

Guidance for the year to June 2016 has been raised despite some infrastructure projects scheduled to coincide with the installation of the service shaft.

“It is pleasing to see an anticipated increase in production guidance by 20 to 30% for the forthcoming financial year, despite the fact that production will be affected by the underground activities associated with the installation of the service shaft,” said Medusa’s chief executive, Geoff Davis.

The company said cash costs for the financial year about to start are estimated at US$380 to US$430 an ounce, while the all-in sustaining cost is tipped to be somewhere in the range of US$960 to US$1,060 an ounce.

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Wed, 17 Jun 2015 08:32:00 +1000 http://www.proactiveinvestors.com.au/companies/news/108101/medusa-mining-ups-production-guidance-108101.html
<![CDATA[News - Medusa Mining reaffirms gold ounce production guidance for FY15 ]]> http://www.proactiveinvestors.com.au/companies/news/158953/medusa-mining-reaffirms-gold-ounce-production-guidance-for-fy15-62030.html Gold production at Medusa Mining's (ASX:MML) flagship Co-O mine in the Philippines was slightly lower this quarter than the previous one but much higher than the same period last year.

The firm said 23,940 ounces of the yellow metal were produced in the three months to end March this year compared to 16,200 ounces in the first three months of 2014 and compared to 26,850 ounces in the quarter to end December, 2014.

The reduced ounces were due to a number of factors, including shut down of the Level 8 shaft for an upgrade.

The head grade was 5.84 g/t compared to 5.56 g/t in the previous three months, while the  recovery was also improved at 94% compared to 93% in the last three months of last year due to tweaks to the milling circuit.

Cash costs were US$391 per ounce compared to US$380 per ounce in the previous quarter, while gold sold was 17,169 ounces, down from 28,190 ounces in the preceding quarter.

For the year to end June, the miner is guiding for output between 95,000 and 100,000 ounces.

Ramp up of production to meet an increased capacity of 1,400 tpd is progressing on schedule, the firm added.

Earlier this month, the group said construction of a US$10mln underground service shaft had kicked off, which will take around 17 months, and lift the total mine capacity to around 2,700dtpd (dry tonnes per day) from all shafts. The estimated pay back time is 1.4 years.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 29 Apr 2015 08:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158953/medusa-mining-reaffirms-gold-ounce-production-guidance-for-fy15-62030.html
<![CDATA[News - Medusa Mining approves US$10mln service shaft at Co-O mine ]]> http://www.proactiveinvestors.com.au/companies/news/158952/medusa-mining-approves-us10mln-service-shaft-at-co-o-mine-61685.html Philippines-focused Medusa Mining (ASX:MML) is planning for the long term future of its flagship Co-O mine and has approved the construction of a US$10mln underground service shaft.

Surface earthworks for the project have kicked off, it said, which will take around 17 months to construct with an estimated pay back time of 1.4 years.

The new shaft, almost 400 metres underground, will have a rope-guided cage and improve the efficiency of the mine between levels 3 and levels 8, the company said.

It will increase hauling capacity from level 8 to around 1,700 dry tonnes a day (dptd) from 1,400 and lift the total mine capacity to around 2,700dptd from all shafts.

The new shaft will have a nominal ten year working life.

It comes after extensive re-modelling and reinterpretation of the geology at the mine over the last two years.

Geoff Davis, chief executive of Medusa, told investors: "The advances in the geological understanding of the large Co-O vein system greatly enhance our ability to plan for the future, as well as demonstrate the considerable upside beyond the current resources and reserves that will support a long life future.

"The mine to 30 June 2014 has produced approximately 630,000 ounces, and at the same date had 1.4 million ounces of total resources.

"The service shaft will greatly improve the efficiency of the Co-0 mine with respect to the transport of men and materials, supervision, safety and ore haulage. This is an important step in improving our haulage systems for the future."

SP Angel rates Medusa shares a 'buy' and puts its target price for the stock under review.

It notes that the mine development had been a bottleneck to making use of the new mill capacity which was to take the miner from a 100,000 ounce a year producer to a 200,000 one.

"We currently have 2,000 tpd of mine capacity built into our model for the next two years rising to 2,500 tpd in 2017," noted the broker.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 10 Apr 2015 10:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158952/medusa-mining-approves-us10mln-service-shaft-at-co-o-mine-61685.html
<![CDATA[News - Medusa Mining's Co-O mine improvements getting results ]]> http://www.proactiveinvestors.com.au/companies/news/158951/medusa-minings-co-o-mine-improvements-getting-results-60898.html Improved operating performance at its Co-O mine in the Philippines meant Medusa Mining (ASX:MML) posted better production, revenue and profit in its latest half year.

For the six months ended December 31, the miner exceeded guidance and says it's on track to produce 95,000 to 100,000 ounces of gold for the full year to end-June.

Net profit for the six months was up 90% to US$24.8mln compared to US$13mln in the same period in 2013, on revenues of US$62.2mln compared to US$34mln - an 83% rise.

Production for the period was 83% higher at 47,877 ounces, with 50,683 ounces sold compared to 27,334 last year.

This was put down to factors including improved mill recoveries and throughput.

Cash costs improved to US$381 per ounce compared to US$422 an ounce a year earlier.

Cash costs for the full year are expected to be between US$400 and US$450 an ounce and Medusa expects recoveries to be maintained above 92% with a head grade of greater than 5 grams per tonne (g/t).

Following a mine review kicked off last year, a number of changes have been made throughout the mine site.

The upgrade to the L8 shaft has now been completed with the haulage rate increased from 45,000 to 60,000 tonnes per month.

"We are already seeing improvements and are confident that further improvements will flow as these changes work through the new management systems over the next six months or so," said the company.

The review proposed a 750 metres deep shaft to Level 16 be considered and this is currently being evaluated, the group said.

The mill has performed well and improvements and refinements are still underway.

As at December 31, Medusa had US$13.6mln of cash and bullion on hand compared to US$20.8mln at the same time in 2013.

Broker SP Angel repeated a 'buy' call on the shares, saying "things were going in the right direction for Medusa after a difficult period".

"Expectations to grow production based on a new mill were de-railed when mine infrastructure was found to be wanting.

"With a focus to upgrade the haulage capacity at the mine now coming through – this will enable the company to regain production back to a base level of 100,000 oz.

"With all-in sustaining costs expected to be between US$900-US$1,000, this gives them the opportunity to generate cash flows of around US$20mln at the higher end of costs and 100,000 oz of production."

Medusa shares have risen around a third in the last three months and now stand at A$0.86 a pop.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 25 Feb 2015 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158951/medusa-minings-co-o-mine-improvements-getting-results-60898.html
<![CDATA[News - Medusa Mining's quarterly gold production hits record level ]]> http://www.proactiveinvestors.com.au/companies/news/158950/medusa-minings-quarterly-gold-production-hits-record-level-60391.html Medusa Mining (ASX:MML), the Philippines-focused gold miner, produced a record 26,859 ounces in the fourth quarter of 2014.

The gold was produced at an average head grade of 5.56 grams per tonne (g/t) and at a cash cost of US$380 per ounce, inclusive of royalties and local business rates.

All-in sustaining costs (AISC) for the quarter eased to US$989 per ounce, including discretionary exploration expenditure of US$2.9mln, from US$1,238 per ounce in the preceding quarter, when discretionary exploration spending was US$2.7mln.

The company said the increase in gold production was down to an increase in mill throughput, improved head grade and improved mill recoveries.

In the six months to end-December – the first half of Medusa’s financial year – the company produced 47,877 ounces of gold, which was above the top end of the company’s guidance of 40,000 – 45,000 ounces, given back in September.

The company added that the L8 shaft upgrade at its Co-O mine completed on schedule on 13 January, and should improve the combined mine haulage to around 60,000 tonnes per month and reduce the time it takes for worker to get to and from the underground work stations.

The company sold 28,190 ounces of gold during the final three months of 2014 at an average price of US$1,204 per ounce, compared to 22,491 ounces sold at an average price of US$1,272 an ounce in the preceding quarter.

At the end of the year, the company had total cash and cash equivalents of US$13.6mln, down from US$15.5mln three months earlier.

Yesterday, the company released an upbeat report on the potential of its Guinhalinan prospect in the Philippines, which it believes is a "major regionally significant" target.

The group said it had defined a "major corridor" of soil anomalies at the site; these anomalies over a strike zone of around 5km, which are open to the south over a width of up to 2km.

Outcropping mineralisation has been found at numerous locations and verified by previous drilling, the company said.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 30 Jan 2015 14:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158950/medusa-minings-quarterly-gold-production-hits-record-level-60391.html
<![CDATA[News - Medusa Mining has "substantial pipeline" of exploration prospects in Philippines ]]> http://www.proactiveinvestors.com.au/companies/news/158949/medusa-mining-has-substantial-pipeline-of-exploration-prospects-in-philippines-60241.html Medusa Mining (ASX:MML, LON:MML) has identified a "substantial pipeline" of resource prospects that could feed its Co-O gold mine operation in the Philippines.

It follows the completion of an exploration and tenement review by its Philippines operating business.

Over the last 11 years the miner has acquired a portfolio of tenements with prospects that range from 'greenfields' to 'resource definition' stage.

Currently, only the Bananghilig and Saugon deposits have resources apart from the Co-O mine, which is in operation.

Bananghilig is undergoing further geological work  before scoping studies begin, while Saugon is yet to be prioritised with scoping.

Medusa said today it had now identified two high priority exploration areas.

These are the Co-0 mine environs - notably the NT series of veins, East Agsao and West Road 17 - and the Guinhalinan gold prospect.

It has also reduced the tenement area to around 489 square kilometres, from around 806 square kilometres.

Geoff Davis, Medusa chief executive, said: "Our core tenements have many years of exploration ahead as our substantial pipeline of prospects is systematically assessed, and more likely to be identified over time.

"Rationalisation of our tenement areas has been undertaken now that sufficient regional to detailed knowledge is available regarding prospectivity, as well as considerations such as competing land use and accessibility.

"This will reduce our holding costs and administrative requirements."

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 22 Jan 2015 08:40:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158949/medusa-mining-has-substantial-pipeline-of-exploration-prospects-in-philippines-60241.html
<![CDATA[News - Medusa Mining expects output of 40-45,000oz gold for half year ]]> http://www.proactiveinvestors.com.au/companies/news/158948/medusa-mining-expects-output-of-40-45000oz-gold-for-half-year-58396.html Medusa Mining (ASX:MML) repeated its production guidance for the half year to end December this year of 40 - 45,000 ounces of the yellow metal, as it posted a quarterly report.

For the three months to end September, the firm produced 21,018 ounces of gold from the Co-O mine in the Philippines at a head grade 5.02 grams per tonne (g/t) and cash costs of US$382 per ounce.

That's an improvement on the previous three months, which saw output of 17,615 ounces at a cost of US$431 per ounce.

The average gold price received in the latest quarter was US$1,272 compared to US$1,292 in the June quarter.

The mine operated as planned during the quarter, the firm said, adding that the L8 Shaft will be upgraded from December 21 to January 13 next year to improve the mine haulage to approximately 60,000 tonnes per month.

Currently, a comprehensive operations review is in progress focusing on the underground mine. This review will produce a life of mine plan and budget.

Last month, the firm said it was looking forward to an improved production performance in the 2014-15 year.

Most of the building blocks from the group's expansion programme are now in place for the expanded flagship Co-O mine in the Philippines, it said, and the new mill is operating satisfactorily with some additional improvements to come.

Exploration at the mine has focused only on underground drilling, extending and infilling the vein system at depth and across strike.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 23 Oct 2014 09:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158948/medusa-mining-expects-output-of-40-45000oz-gold-for-half-year-58396.html
<![CDATA[News - Medusa Mining looks to boost gold production ]]> http://www.proactiveinvestors.com.au/companies/news/158947/medusa-mining-looks-to-boost-gold-production-57889.html Medusa Mining (ASX:MML) is looking forward to an improved production performance in the 2014-15 year, it told investors.

Most of the building blocks from the group's expansion program are now in place for the expanded flagship Co-O mine in the Philippines, it said, and the new mill is operating satisfactorily with some additional improvements to come.

Exploration at the mine has focused only on underground drilling, extending and infilling the vein system at depth and across strike.

In the 12 months to end June 2014, Medusa produced 59,904 ounces of gold for the year, compared to 62,243 ounces in the previous year.

The average recovered grade was 4.76 g/t compared to 7.02 g/t gold in 2013.

The average cash cost for the year of US$418 per ounce, was higher than the previous year’s average cash costs  of US$313 per ounce mainly due to excess mine manning levels, low mine productivity, treatment of significant  amounts of development ore and lower than budgeted mill recoveries.

Revenue came in at US$84.2mln compared to US$100.7mln for the previous year.

The group received an average gold price of US$1,299 per ounce from the sale of 65,943 ounces of gold for the year (2013: 77,488 ounces at US$1,610 per ounce).

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 01 Oct 2014 09:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158947/medusa-mining-looks-to-boost-gold-production-57889.html
<![CDATA[News - Medusa Mining updates resources and reserves at Co-O mine, Philippines ]]> http://www.proactiveinvestors.com.au/companies/news/158946/medusa-mining-updates-resources-and-reserves-at-co-o-mine-philippines-57814.html Gold miner Medusa Mining (ASX:MML) has updated its resource and reserve estimates, which show it has maintained a high level of reserves at its flagship Co-O mine.

Probable ore reserves - those economically and technically feasible to extract - at the mine in the Philippines are put at 1.92 million tonnes at a grade of 7.22 grams per tonne (g/t) gold for a total 450,000 ounces of the yellow metal.

That compares to an August 2013 estimate of 1.65 million tonnes at a grade of 10.7 g/t for 570,000 ounces of gold.

The change is put down mainly to depletion through mining and modified geological interpretations, the firm said.

Meanwhile, in terms of resources, the total inferred and indicated number at the mine is now estimated at 4.34mln tonnes at a grade of 10.1 g/t gold for a total of 1,410,000 ounces compared to the August 2013 estimate of 6.88 million tonnes at 9.9 g/t gold for a total 2,190,000 ounces gold.

Chief executive Geoff Davis said: “Despite a major continuing re-interpretation of the geology at the Co-O Mine, it is pleasing that the company has maintained a high level of probable reserves in line with the past 5 years, especially after allowing for total cumulative gold production in excess of 450,000 recovered ounces since 2007."

Earlier this month, the group said it expects production to increase for its third quarter running and the miner to start generating cash again.

Gold production from Co-O is expected to be above 20,000 ounces for the September 2014 quarter.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 26 Sep 2014 08:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158946/medusa-mining-updates-resources-and-reserves-at-co-o-mine-philippines-57814.html
<![CDATA[News - Medusa Mining ends drilling at Tambis on positive note ]]> http://www.proactiveinvestors.com.au/companies/news/158945/medusa-mining-ends-drilling-at-tambis-on-positive-note-57531.html Medusa Mining’s (ASX:MML) latest round of drilling at the Tambis deposits in the Philippines has finished with a flourish.

Medusa halted the programme in June but has just received the results from the last three holes on the B2 area of the Tambis area.

One hole returned a grade of 9.79 grams per tonne (g/t) over a 12 metre (m) width, while Medusa highlighted grades of 1.36 g/t and 1.22 g/t in another hole.

Geoff Davis, Medusa’s chief executive, said: “It is pleasing to finish the recent round of drilling with some more good results.

“Whilst the drilling is still wide spaced at the B2 Discovery area, we have established mineralisation over a large area of approximately 800 metres by 1,000 metres, and which appears to be still open in most directions.”

Tambis comprises the Bananghilig gold deposit and the B2 discovery area.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 12 Sep 2014 08:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158945/medusa-mining-ends-drilling-at-tambis-on-positive-note-57531.html
<![CDATA[News - Medusa Mining expects to produce 20,000oz gold in September quarter ]]> http://www.proactiveinvestors.com.au/companies/news/158944/medusa-mining-expects-to-produce-20000oz-gold-in-september-quarter-57470.html Medusa Mining (ASX:MML) expects production to increase for a third quarter running and the miner to start generating cash again.

The Aussie-listed group, which recently appointed engineer Robert Gregory to carry out a comprehensive review of operations at its Co-O mine, said gold production is expected to be above 20,000 ounces for the September 2014 quarter.

Medusa produced 17,615 ounces and 16,200 ounces respectively from the underground mine in the Philippines in the two previous quarters.

An update production update for 2014-15 will follow the operations review, Medusa added.

After a number of problems with a new mill at the mine, recoveries are currently running at a minimum of 90%, Medusa said, with a head grade over the quarter of more than 5 grams per tonne (g/t) gold.

Work is ongoing to cure the teething issues that have included including battery failure, a new feeder, a leaching circuit and screens overhaul, and grind problems.

Medusa added a significant re-interpretation of the vein structure at Co-O had now been completed and it is clear the main west-trending vein is controlled by a major shear system.

Following finalising of the re-interpreted and upgraded vein model a new resource and reserve estimate is nearing completion

The new 2012 JORC code reporting requirements require cut-off grade, minimum mining width and gold price parameters to be applied to the resource estimates to determine a break even grade.

As a result, the new resources will differ from previous estimates, as some vein sections are high grade but narrow and may not meet the minimum width requirements when diluted at current gold prices and/or extraction cost.

On development, horizontal and vertical expansion is planned at a rate of approximately 1,500 metres per month across approximately 60 priority headings for the foreseeable future. This is the minimum rate for new stopes to be mined as the old stopes are being depleted, Medusa said.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 10 Sep 2014 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158944/medusa-mining-expects-to-produce-20000oz-gold-in-september-quarter-57470.html
<![CDATA[News - Medusa Mining receives increased share price target from Cantor Fitzgerald ]]> http://www.proactiveinvestors.com.au/companies/news/158943/medusa-mining-receives-increased-share-price-target-from-cantor-fitzgerald-53385.html Medusa Mining (ASX: MML, LON: MML) has received an increased share price target from Cantor Fitzgerald, citing operational improvement at the Co-O mine in the Philippines.

The target was lifted from 222p from 190p. In Australia, the stock closed marginally lower Tuesday at A$2.35.

Analyst Asa Bridle suggests there is returning interest in the stock, as evidenced by the 18% rise in the shares in the last three months, backed by the gold price's recovery.

After a delay to commissioning due to equipment and weather, the mill started up in early December but this resulted in lower output for the December quarter.

In interim results last week, the firm revised gold production guidance for the year to end June 2014 to between 70,000 to 80,000 ounces (oz) at anticipated cash costs of US$400 per ounce.

It sees full-year 2015 output of between 140,000-160,000oz and production from 2016 onwards of 160,000-200,000oz a year.

Bridle notes that further weather-related issues in January and the weak comparatives in the interims could have been taken as backwards step.

"However, in our view, the operational position reported looks even stronger now, and the first publication in some time of production  guidance provides a fresh frame of reference."

He notes that the 200,000 ounce production target does remain, albeit as a top end range figure in full year 2016.

"We have been in a ‘downgrading’ spiral with MML for some time, but we are hopeful that our latest forecast, backed by the company’s current operating position, should prove conservative," said Bridle, who rates the shares a 'buy' and lifts the target price to 222p from 190p.

Medusa shares dipped on Tuesday 3.71% to stand at 123.25p.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 05 Mar 2014 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158943/medusa-mining-receives-increased-share-price-target-from-cantor-fitzgerald-53385.html
<![CDATA[News - Medusa Mining finished 2013 with US$21 million in cash ]]> http://www.proactiveinvestors.com.au/companies/news/158942/medusa-mining-finished-2013-with-us21-million-in-cash-52366.html Medusa Mining (ASX: MML, LON: MML) had a healthy US$21mln of cash in the bank going into the New Year after raising funds in a placing.

The company confirmed that production was, as expected, lower in the latest quarter due to power cell failures with the new SAG Mill at its flagship Co-O gold mine in the Philippines.

The new mill, however, operated at 1,800 tonnes per day in the last few days of December.

Production came in at 11,587 ounces of gold, down from 14,502 ounces in the September quarter. The new mill was not operational until December 6.

Cash costs were US$526 an ounce, up from US$339 in the previous quarter.

108,000 wet metric tonnes were mined, with 91,000 dry metric tonnes of ore milled.

Exploration spend in the quarter was US$4.1mln, down a touch from the September quarter.

The company sold 11,774 ounces of gold in the three-month period, another decrease on the prior quarter, at a lower average gold price of US$1,262, but still a comfortable margin given the low cash costs.

The shares traded flat at 112p.

 

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Fri, 31 Jan 2014 08:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158942/medusa-mining-finished-2013-with-us21-million-in-cash-52366.html
<![CDATA[News - Medusa Mining restarts operations at Co-O gold mine in the Philippines ]]> http://www.proactiveinvestors.com.au/companies/news/158941/medusa-mining-restarts-operations-at-co-o-gold-mine-in-the-philippines-52280.html Medusa Mining (ASX: MML, LON: MML) told investors that mining activities have restarted at the Co-O gold mine in the Philippines, following weather enforced disruptions.

The heavy rains that had caused slippages and landslides around the mine have now eased, the company said.

The restart comes after site assessments and structural inspections, as well as general clearing activities around the mine.

Additionally, Medusa said the inclement weather has caused extensive damage to several sections of the haul road between the mine and the mill, so the company is currently assessing alternative routes to overcome the temporary logistical issue.

At present the mine’s new mill is operating at 2,000 tonnes per day, Medusa said.

 

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Wed, 29 Jan 2014 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158941/medusa-mining-restarts-operations-at-co-o-gold-mine-in-the-philippines-52280.html
<![CDATA[News - Medusa Mining shares boosted by new mill start-up ]]> http://www.proactiveinvestors.com.au/companies/news/158940/medusa-mining-shares-boosted-by-new-mill-start-up-51007.html Medusa Mining's (LON:MML. ASX:MML) new SAG mill is up and running now new batteries have been installed, the firm told investors.

Investors welcomed the news and shares were up 5.74% to 96.75p.

The mill was successfully started last week and is currently undergoing commissioning and will gradually build to its throughput of 2,500 tonnes per day during the March 2014 quarter, the company said.

The commissioning of the new mine on Mindanao island in the Philippines fires the starting gun on the much anticipated production expansion of up to 200,000 ounces a year.

As reported in October, due to the battery delay, which Medusa said was down to the power cells' vendor, production in the quarter to December will be lower than expected.

Meanwhile, at the mine, improved grades and tonnages are starting to come through from the new working areas while a recent A$34mln placing gives financial support.

“The operating of the new mill is good news for the company with the ramp up now expected in the March quarter,” said John Meyer, at resources-focused broker S P Angel.

The delay in the commissioning of the mill will result in the projected throughput in the final quarter of 2013 coming down, Meyer noted. The fourth quarter of the calendar year is the second quarter of Medusa’s fiscal year (FY).

The broker now expects that with 30,000 tonnes per month running through the old mill, around 15,864 ounces (oz) will be produced, assuming a head grade of 6.2 grams per tonne and 89% recoveries.

“We have 150,000 tonnes factored in Q3 FY 2014 (March quarter) and 225,000 tonnes for Q4 FY 2014 (June quarter) – this gives around 106,000 oz for the full year. This is more than doubling of the production achieved in FY 2013,” Meyer said.

Notwithstanding the above, S P Angel has revised its target price down from 270p to 245p based on the slower than expected ramp up on the new mill.

“This is the low point in the earnings of the company with free cash flow picking up in the March quarter,” Meyer projects.

“Even against a muted gold price environment, Medusa has the potential to grow earnings and looks very cheap here. The shares should start performing once production can be demonstrated to come through,” he opined, reiterating his ‘buy’ rating.

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Mon, 09 Dec 2013 21:58:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158940/medusa-mining-shares-boosted-by-new-mill-start-up-51007.html
<![CDATA[News - Medusa Mining to raise up to $25m in bookbuild, gold production in Philippines ]]> http://www.proactiveinvestors.com.au/companies/news/158939/medusa-mining-to-raise-up-to-25m-in-bookbuild-gold-production-in-philippines-49687.html Gold-producer Medusa Mining (ASX: MML, LSE: MML) is looking to raise A$25.0 million (£14.8 million) by way of a non-underwritten placement, priced at A$1.80 per new share to institutional and other investors.

The placement will be conducted by way of a volume only bookbuild process in Australia.

Medusa will allocate the funds to three main areas, including to pay down outstanding trade creditors to normal operating levels and to partly pay down the company's working capital facility with Philippine Banks.

The company will also use the additional funding for working capital to maintain a prudent liquidity buffer pending the commencement of production from the its new Co-O Mill.

Medusa is on a growth path to annual production of 200,000 ounces following commissioning of new Co-O Mill.


Placement breakdown

- A$16.9 million under the Company’s 5% placement capacity (Tranche 1); and

- A$8.1 million, subject to shareholder approval of further placement capacity at the Company’s AGM on 22 November 2013 (Tranche 2).

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 31 Oct 2013 09:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158939/medusa-mining-to-raise-up-to-25m-in-bookbuild-gold-production-in-philippines-49687.html
<![CDATA[News - Medusa Mining says commissioning of new mill almost complete ]]> http://www.proactiveinvestors.com.au/companies/news/158937/medusa-mining-says-commissioning-of-new-mill-almost-complete-47241.html Medusa Mining (LON:MML, ASX:MML) said the commissioning of the new US$70mln mill at its Co-O mine in the Philippines is “nearing completion”.

The upgrade will allow the group to produce at an annualised capacity of 200,000 ounces of gold a year.

In the year to June 30 output was 62,243 ounces of the yellow metal at a very competitive cash cost of US$313 an ounce (up from US$261).

Giving guidance for the September and December quarters, it said production would be 17,000 ounces and 35,000 ounces, respectively.

Medusa added that full-year guidance for 2014 will be available once the new Co-O mill is fully commissioned and further development has been completed on Level 8 of the mine.

The update was released as Medusa filed results for the year ended June 30.

They showed the group posted a 9% rise in earnings before interest and tax to US$63.2mln on revenues of just over US$100mln.

Medusa has cash and equivalent resources of US$7.45mln as well as a US$14mln overdraft facility.

The shares rose almost 2% to 161p in morning trade. However the resources boutique SP Angel reckons the stock has been oversold and maintains its ‘buy’ and 300p price target.

It said the numbers chimed with recent guidance, although the cash costs were marginally lower than it predicted.

“Development work continues at Level 8 and is now moving away from the faulting near the shaft with vein widths and grades said to be improving. This is good news and could start to improve grades coming through,” said analyst Carole Ferguson.

“The company put an overdraft facility in place to be able to meet cash requirements during the development phase but with most of the spend behind them should be able to build up cash balances.

“Management are keen to reinstate dividends which should be supportive to the share price.”

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 28 Aug 2013 08:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158937/medusa-mining-says-commissioning-of-new-mill-almost-complete-47241.html
<![CDATA[News - Medusa Mining reaffirms gold production forecasts ]]> http://www.proactiveinvestors.com.au/companies/news/158935/medusa-mining-reaffirms-gold-production-forecasts--22621.html Philippines-focused Medusa Mining (ASX:MML, LON:MM) has reiterated its upbeat forecasts for the next few years at a meeting with broker Seymour Pierce.

Chairman Geoff Davis and chief executive Peter Hepburn-Brown confirmed a forecast of 90-100,000 ounces gold production this year to June, rising to 120,000 ounces in 2012/13 and 200,000 ounces the year after, Seymour Pierce said.

Costs were also forecast to remain at an extraordinarily low US$220 an ounce or less, while Medusa’s team reaffirmed their commitment to a 10 US cents a share dividend, according to the broker.

Medusa is currently producing gold at the Co-O mine in the Philippines and developing a second deposit in the country at Bananghilig.

Cash and equivalents now stand at US$81 million and the company is starting to build up its reserves to put towards the development of Bananghilig.

This is slated to become the company's second 200,000 ounce a year operation with very early estimates of capex at around US$200 million and operating costs around US$500 per ounce.

Medusa’s ambition is to become a mid-tier producer of 400,000 ounces of gold by late 2015.

To achieve that, it wants to expand Co-O mill capacity to 200,000 ounces per year and also to develop the deposit at Bananghilig to produce 200,000 ounces annually.

Drilling is underway at Bananghilig to expand the existing 650,000 ounces resource to one million ounces, which could be developed into an open pit.

Assuming the assessment work continues on track the plan is to have the feasibility study finished by the end of next year, Seymour Pierce said.

At Co-O, a permit is expected to come through to expand mill capacity “in the coming weeks”, while a new shaft at the mine is expected to reach level 6 by January, with a three month fit-out to be followed by a further extension down to level 8.

The new shaft will provide capacity to support the production increase over the next two years.

Another potential underground deposit, Anoling, located approximately 8km from Co-O and currently under evaluation, could provide additional feed of 500-1,000 tonnes a day to the Co-O mill, Seymour Pierce reported.

Medusa has earmarked at least US$22million this year for gold exploration and a further US$5 million on copper exploration, where there are 9 lead targets.

For the copper exploration, the plan is to establish a resource quickly before bringing in a joint venture partner to push on with the copper assessment work.

“Medusa does not see itself as a copper developer (wisely so based on the potential capital required to develop such porphyry-style targets) so would seek to list or sell its stake in the planned joint venture,” Seymour Pierce added.

Shares in the group have fallen back from a high of over 550p this year as the gold price has eased lower after record highs.

The broker’s target price for Medusa shares is 526p, compared to a current market price of 345p that values the group at about £651 million.

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Mon, 28 Nov 2011 09:37:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158935/medusa-mining-reaffirms-gold-production-forecasts--22621.html
<![CDATA[News - Medusa Mining reports strong full-year results, targets 100,000-110,000 oz gold production in curren ]]> http://www.proactiveinvestors.com.au/companies/news/158934/medusa-mining-reports-strong-full-year-results-targets-100000-110000-oz-gold-production-in-curren-19108.html Medusa Mining (LON:MML, ASX:MML) reported strong full-year financial and production results and is targeting to produce 100,000 to 110,000 ounces of gold in the current full-year at cash costs of around US$200 per ounce.

Pretax profit before interest, depreciation and amortisation rose to US$120.7 million in the year to end-June 2011, up 64 percent year-on-year from US$47 million. The company also posted 58 percent revenue growth to a record US$149.6 million due to increased gold production and a higher price received on sale of gold.

Medusa is an un-hedged gold producer and received an average gold price of US$1,371 per ounce from the sale of 96,217 ounces of gold for the year.

It produced a record 101,474 ounces of gold for the year, an increase of 13 percent from the previous year's production of 89,679 ounces, at an average recovered grade of 12.63 grammes per tonne gold, compared with 16.52 g/t gold previously.

The average cash cost for the year of US$189 per ounce was only marginally higher than last year’s US$184 average.

The group remains debt free and had total cash and cash equivalent of US$102.1 million at the end of the financial year-end, compared with US$55.8 million a year earlier.

Medusa is currently ploughing ahead with preparing the Co-O mine in the Philippines for a future production increase, to attain a capacity of 200,000 oz per annum.

The financial year under review has been the first full year of production at the rate of 100,000 ounces from Co-O.  Over the next few quarters there will be heavy emphasis on development at the mine. “We are developing new levels, sinking new and deeper shafts, and planning infrastructure that will support mining to a depth of approximately one kilometre with drilling to date pointing to good grades up to 750 metres below surface,” the company said.

To date, the Co-O mine has produced around 450,000 ounces and has a current resource of 1.96 million ounces. Drilling during the year and the new resource estimate, announced last week,  have strongly reinforced the conceptual exploration target size of 3 to 7 million ounces, Medusa said.

In its annual reserve estimation update last week, the company maintained the gold reserves at Co-O at just over 500,000 ounces.  Co-O's gold resource at year end comprised of 616,000 indicated resource ounces and 1,344,000 inferred resource ounces, representing increases of 15,000 ounces and 446,000 ounces within the indicated and inferred categories respectively.

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Tue, 30 Aug 2011 20:15:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158934/medusa-mining-reports-strong-full-year-results-targets-100000-110000-oz-gold-production-in-curren-19108.html
<![CDATA[News - Medusa Mining shares pause for breath; brokers point to a golden future ]]> http://www.proactiveinvestors.com.au/companies/news/158933/medusa-mining-shares-pause-for-breath-brokers-point-to-a-golden-future-15790.html Shares in Medusa Mining (ASX: MML, LON: MML) this morning paused for breath after another strong quarterly progress report.

However according to City brokers following the stock, the London and ASX-listed gold miner’ prospects are brighter than ever.

"We believe there is further upside, given the company's enviable cash margin and expansion plans over the medium term,” said Asa Bridle of Seymour Pierce.

Earlier, Medusa said its new plant at the Co-O mine in the Philippines will open in the middle of 2013 as it revealed it was on track for an annualised rate of production of 100,000 ounces of gold a year.

Output was 25,114 ounces in the three months to March 31 at an average grade of 11.58 grams per tonne and a cash cost of US$191 per ounce. The cumulative total in the past three quarters is 76,241 ounces.

It means Medusa has generated more than US$92 million in cash, allowing it to declare a 5 cents a share dividend, which was paid on March 23.

Key to the future development of the company is the new plant at Co-O. Permitting should be complete by late September, the group said this morning, and the estimated build time is 21 months.

Medusa is currently sinking another shaft at Co-O, called the Saga Shaft, which has reached 32 metres. The plan is to have it down to 200 metres, or level five, by the end of the year and to 300 metres, or level seven by June next year.

Drilling at Co-O, meanwhile, has discovered a new high grade vein. Early results reveal a 2 metre section with 219.7 grams of gold per tonne and 800 millimetres at 42.333 grams.

At the Bananghilig deposit, also in the Philippines, resource validation and drilling continues with two rigs on site. Regional mapping is also being carried out.

Managing director Geoff Davis said: "The Company has attained its forecast gold production for the quarter and is on track to meet its annual forecast production.

"At the Co-O Mine, the Saga Shaft is progressing and the Level one adit to access the Royal and NT veins is well underway. The accelerated development programme will continue to open up new levels and new veins.

"Drilling at the Co-O Mine continues to deliver some outstanding results, and potential resource additions in the area of the Royal and North Tinago veins are taking shape.

"The permitting process for the new Co-O Mill is progressing and currently on track to be completed by the end of September 2011.

"At the Bananghilig prospect drilling with six rigs is continuing. Initial findings of an extensive regional mapping programme over the Tambis region will be reported shortly."

The result of such a resilient showing was a 3 per cent fall in the share price, which was down 18.55 pence at 507.95 pence at 11 am.

This was no doubt the result of profit-taking following a 49 per cent spike in the share price over that last six months.

Fairfax, the company’s broker, is a buyer up to 549 pence. In a note to clients today, it said:  “The Co-O mine continues to deliver to plan as management keep operations running smoothly and deliver on promises. 

"The growing cash pile being generated ensures that the active programme of development, expansion and exploration across numerous targets are well funded and can be advanced in the appropriate manner.

“We see further value generation to come from the exciting exploration portfolio, the expansion of Co-O and work that should expand the resource base and extend the mine life. 

"Medusa provides an excellent means for investors to get exposure to gold with a low risk, high margin established asset funding future activities.”

 

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Thu, 28 Apr 2011 08:14:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158933/medusa-mining-shares-pause-for-breath-brokers-point-to-a-golden-future-15790.html
<![CDATA[News - Medusa Mining price target 613 pence as brokers remain positive ]]> http://www.proactiveinvestors.com.au/companies/news/158932/medusa-mining-price-target-613-pence-as-brokers-remain-positive-14256.html Medusa Mining (LON:MML, ASX:MML, TSX:MLL) has more than doubled in value in the past year.

However City brokers following the story of the Philippines-focused gold producer reckon there’s scope for the stock to push on further from the current price of 445 pence. 

Fairfax, repeating its buy advice, has set a 549 pence a share price target, while Seymour Pierce’s Asa Bridle this morning raised his valuation by 10.6 per cent to 613 pence a share.

His upbeat assessment comes in the wake of a very solid set of interim results in which production guidance for the current year was tweaked by 2 per cent to 102,000 ounces of the precious metal at a cash cost of US$190 an ounce, rising to 120-130,000 ounces in 2011/12.

The Seymour Pierce analyst is predicting pre-tax profit of $111.6 million this year, rising to $127.1 million next year. 

Expanding production at the Co-O gold mine on the Mindanao Island in the Philippines has transformed Medusa from a small AIM-listed junior into a dividend paying, main market, gold producer in just a few short years.

It acquired the mine, which was then producing 40,000 ounces of gold a year, back in December 2006 when it completed a merger with privately owned Filipino miner Philsaga Mining Corporation. 

Since then it has extended the mining operation substantially, taking the run-rate first to 60,000 and then to 100,000 ounces a year. Importantly the high-margin and cash generative mining operation gives Medusa the financial clout to keep expanding.

Medusa is now working to take production up to the 200,000 ounce a year level and ultimately it is aiming to be a 300,000 to 400,000 ounce a year, mid-tier gold producer.

Later this month Medusa will address to the BMO Capital Markets 2011 Global Metals and Mining Conference in Miami.

At this prestigious event it will outline plans to become 400,000 ounce gold producer in the next five years.

According to the company’s presentation, which has just been added to the website, it is a two-stage strategy based on the “excellent exploration” upside of Co-O.

“Medusa is at last gaining the recognition and respect that its operations deserve,” said Fairfax in a note to clients. 

“It is no mean feat to maintain such a low cost mining operation and it is good to see the market beginning to respect the high margin and strong production growth forecast here.”

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Sat, 26 Feb 2011 02:47:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158932/medusa-mining-price-target-613-pence-as-brokers-remain-positive-14256.html
<![CDATA[News - Riverside Resources’ Mexican project generation continues to add value ]]> http://www.proactiveinvestors.com.au/companies/news/158931/riverside-resources-mexican-project-generation-continues-to-add-value-14154.html Riverside Resources (CVE:RRI, PINK:RVSDF) is a gold and silver explorer focused on developing a portfolio of high potential projects in Mexico, and the United States. Riverside utilizes the Prospect Generator business model to ally themselves with strategic joint venture partners that will expose the company to substantial resource growth while limiting capital dilution.

Riverside’s portfolio includes the Sugarloaf Peak Gold Project in Arizona, and a number of Mexican properties including the Tajitos Gold Project, Clemente Silver-Gold Project, Libertad Gold Project, Cerro Azul Copper-Gold
‘\[Project, Penoles Gold-Silver Ppject and portfolio of Durango Gold Properties, Chapalota Gold-Silver Project, and the Cliffs IOCG Exploration Alliance.

The Sugarloaf Peak Project hosts a gold system that starts right at surface for easy open pit mining and has extensive alteration consistent with a large mineralized gold deposit.  The project is located in the same region as open pit gold mines at Mesquite Mine (4 M Oz gold mine), Picacho Mine and Copperstone Mine. Sugarloaf has rich surface gold that is both placer and open-pit style mineralization.  Riverside has drilled the project and found gold similar to previous work and will further progress the gold project toward a joint venture deal to continue to unlock value for company shareholders. 

Riverside drilled 5 holes that identified mineralization in all holes, following up on more than 60 previous drill holes which had been used to document a historic resource.  Riverside’s drilling from surface shows mineralization to greater than double the depth used to compile prior resource estimates and indicates the potential to expand the size of the gold deposit to a major open pit, low grade resource. Updated surface exploration traced an undrilled and potential gold bearing structural corridor for more than 3 kilometers across the property identifying numerous targets, in addition to identifying mineralization to the north, east and west of historically defined resources.  

The Tajitos Gold Project is Riverside’s current lead gold property with a large 150 km² concession located on one of Mexico’s most prolific gold trends, the “Sonora Mojave Megashear Gold Belt.” Chip samples of up to 34 g/t gold identified 3 zones for drilling, each of which has the potential to host a discovery and gold resource through further exploration which Riverside is undertaking in 2011.  Riverside also acquired the Clemente Silver-Gold Project in Sonora, Mexico discovering high grade silver exceeding 2 kg/t in shear zone vein structures, with numerous samples returning silver grades over 500 g/t.

Geologix Explorations (TSE:GIX) can earn up to 85% interest in the Libertad Project located nearby Puerto Libertad, by paying $500,000 and spending $5 million within 6 years. Geologix has announced results from an initial 10 hole drill program with multiple holes returning significant grades over sizeable widths, including LIB 10-001 with 26.05 meters at 2.03 g/t gold equivalent from 45.65 meters. Earlier trenching reported gold values over 1,250 meters of strike, and drilling in the northern section indicates that mineralization is widening at depth. The Libertad Project is a leading example of how Riverside uses the joint-venture business model to develop valuable assets in the Riverside gold portfolio while not adversely draining its financial resources.

Riverside retains a 40% interest in the Cerro Azul Copper-Gold Project and holds a significant ownership interest in Guerrero Exploration Inc. (CVE:GEX) where early exploration identified multiple high grade copper-gold zones. These zones will now be subjected to prospect scale geological mapping, hand trenching, ground geophysics, and rock chip and soil sampling. Guerrero Exploration Inc. recently listed an IPO using the Cerro Azul Project as their flagship property with the hopes to commence drilling upon the successful completion of an initial work program with Riverside acting as the operator.
The Penoles Gold-Silver Property is a 350 km² concession located in the prolific Penoles Mining District and near recent discoveries by Goldcorp (NYSE:GG) at Penasquito, with a Measured and Indicated Resource of 4.45 million ounces of gold, and 391.0 million ounces of silver, and the MAG Silver (TSE:MAG) Juanicipio Silver Project, with an Indicated and Inferred Resource of 204.1 million ounces of silver and 708,500 ounces of gold. The major prospects at Penoles includes the El Tubo gold bearing vein system carrying multiple surface samples exceeding 0.5 g/t gold over a substantial area. The second prospect is the Jesus Maria Vein System that produced historical mined grades of 300 to 2,000 g/t silver, 3-12% lead and 4-10% zinc to a depth of 200 meters. Recent exploration has identified drilling targets and assays from dumps and exposed surface veins have produced silver grades exceeding 255 g/t. The third prospect is the San Rafael Vein system, which was mined to a depth exceeding 100 meters, where recent chip sampling returned over 180 g/t silver, and drill targets have been identified along the vein.
El Capitan is the fourth prospect where recent drilling by Riverside supported prior results to define a shallow high grade gold zone that consistently exceeds 1g/t gold, contained within a much larger gold envelope averaging 0.4 g/t gold in oxidized rock. This mineralization links with a surface exposed gold rich zone with a strike line exceeding 1,000 meters that was drilled over a 700 meter by 200 meter area open to the northwest of the contact zone.
The Durango Gold Properties show potential for open pit, and in some cases, shallow underground resources.  The properties are all located in Mesa Central Region of Durango, Mexico and each one stands on its own as a major exploration play that has favourable surface geology and geochemistry. They were all generated from an evaluation of 220 anomalous areas in an Alliance with Kinross Gold (TSE:K, NYSE:KGC) and have been advanced by Riverside to the point where each of the properties have drill targets.

The first is Catrina, which has geological characteristics similar to the Camino Rojo deposit recently purchased by Goldcorp. The second at Escondida has IP and soil geochemistry revealing a large open pit gold style target. The third at Pedernal has 4 northwest trending mineralized zones with up to 3.5 kilometers of continuous veining and total vein strike lengths of up to 12 kilometers.  Individual surface veins have a true thickness of up to 6 meters with contiguous zones showing clusters up to 30 meters in width. Following the Prospect Generator business model, Riverside has optioned off Catrina, Escondida and Pedernal to BCY Resources Inc. (CVE:BCY).  The agreement, in addition to cash payments, includes a firm 3,000 metre drilling commitment in year one, and a commitment to drill a minimum of 6,000 total metres within the first 24 months. 

The fourth is known as Maravillas which carries a large structurally controlled gold anomaly at surface with various centers of mineralization where chip samples assay up to 1.5 g/t gold, 77g/t silver, and 1.5% copper.

The Chapalota Gold Copper Project lies within the highly productive Western Gold Belt of Mexico and is an early stage exploration project and is under assessment to develop drill ready targets.

Cliffs (NYSE:CLF) is contributing $1.5 million to a 2 year exploration program that is utilizing Riverside’s extensive Mexican data base to define four Iron Oxide Copper Gold targets within a 1.5 million km² area that runs along the western side of the country. Cliffs can earn a 70% interest by investing $4 million into identified IOCG targets over a period of 4 years. A progress report to shareholders is expected in the coming months.

In 2011 Riverside expects to see to see the establishment of new joint venture relationships and will be drilling high priority targets in Mexico and advancing projects with near surface high-grade veins and open pit potential. The upcoming year will build upon 2010 where Riverside successfully delivered on its goals to raise shareholder value through strategic Exploration Alliances, property acquisitions and joint-venture partnerships.

Riverside has built a strong and broad portfolio of gold and silver projects, many of which are now drill-ready. Riverside’s share price appreciated approximately 74 percent last year, and the Company’s portfolio growth in 2010 was accomplished while sustaining its tight share structure of under 25 million shares issued, with over $3 million cash on hand.

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Wed, 23 Feb 2011 08:02:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158931/riverside-resources-mexican-project-generation-continues-to-add-value-14154.html
<![CDATA[News - Medusa Mining doubles first half profits to record US$58.1 million ]]> http://www.proactiveinvestors.com.au/companies/news/158930/medusa-mining-doubles-first-half-profits-to-record-us581-million-14132.html Medusa Mining (ASX: MML, LON: MML, TSX:MLL) has unveiled strong half yearly results, with net profits more than doubling to a record US$58.1 million.

The company has been expanding production at the Co-O gold mine on the Mindanao Island in the Philippines, from 40,000 gold ounces a year up to 100,000 gold ounces.

This has transformed Medusa from a small AIM-listed junior into a dividend paying, main market, gold producer in just a few short years.

The gold miner produced a total of 51,127 gold ounces in the six months ended 31 December 2010. 

Crucially Medusa is benefiting from both rising mine output as well as rising gold prices.

Revenues were up 90%, compared with the same period in the previous year, to US$78.3 million, and earnings (EBITDA) rose 101% to US$63.3 million

Medusa’s gold production is very low cost, at an average of US$186 per ounce in the first half, and it is un-hedged.

During the period it sold 48,883 gold ounces at US$1,291 an ounce.

Geoffrey Davis, managing director, said, “Exploration is continuing around the Co-O Mine to increase the likelihood of new vein discoveries to provide additional production. 

“Mine development is continuing with the sinking of the 3-compartment Saga Shaft underway, and the commencement of a new adit to access the Royal Veins and the newly discovered North Tinago vein systems.

“The approval by the board to construct a new Co-O mill with capacity to produce 200,000 ounces of gold is an integral part of the company's growth strategy."

The news seems to have been largely expected, the record production levels were previously announced at the end of January, as the shares eased around 1%, in a fairly weak market today.

 

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Tue, 22 Feb 2011 23:23:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158930/medusa-mining-doubles-first-half-profits-to-record-us581-million-14132.html
<![CDATA[News - Medusa Mining could grow annual gold production to 400,000oz and beyond – Fairfax Securities ]]> http://www.proactiveinvestors.com.au/companies/news/158929/medusa-mining-could-grow-annual-gold-production-to-400000oz-and-beyond-fairfax-securities-12213.html Medusa Mining (LON:MML, ASX:MML, TSX:MLL) could potentially increase gold production up to 400,000 ounces of gold and beyond, according to new research by Fairfax Securities.

Fairfax mining analyst Marc Elliot looked at the ever expanding Co-O gold mine in the Philippines and the potential big impact of successful exploration on the tenements that surround the mine.

This morning, Medusa told investors that recent drilling has extended the high grade gold-silver zones on the Saugon project's First Hit Vein prospect.

The best assays had widths ranging from 0.75 to 4.55 metres, with grades ranging between 9.63 - 28.07 grams per tonne (g/t) gold and 125.13 - 413.6 g/t silver. The deepest high grade assay had 3.35 metres grading 11.71 g/t gold and 154 g/t silver, from around 180 metres. 

This key exploration project is around 10 kilometres from Medusa’s Co-O gold mine in the Philippines, where it is currently working to double output to 200,000 ounces of gold per year.

Elliot said the results represent an exciting development that highlights the high prospectivity within the exploration tenements surrounding Co-O.  

“The company can pursue its exploration programme at and around Co-O, at Saugon and Bananghilig as well as other targets funded out of cashflows from the highly profitable Co-O mine,” Elliot said.

“We look forward to exploration developments to add value for shareholders seeking low risk exposure to gold (due to the low cash cost) with significant organic growth and exploration potential.”

Fairfax upped its forecasts due to the recent decision to double Co-O’s production capacity.

“We have upgraded our forecasts reflecting a ramp up in production from the current annualised rate of 100,000 ounces per annum to 200,000 ounces per annum by 2014.”  

“We’ve assumed cash costs of US$210 per ounce for the expanded operation and capital cost of US$86 million on top of previous estimates as well as raising sustaining capital at the mine from US$6 to US$8 million per annum. “

Elliot rates Medusa as a ‘buy’ with a 451 pence target.

He adds: “We see further value to come from targets such as Saugon and Bananghilig that could evolve into stand alone (mines) contributing to management’s long term aim of producing 300,000 - 400,000 ounces per annum, or perhaps more.”  

 

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Thu, 02 Dec 2010 00:53:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158929/medusa-mining-could-grow-annual-gold-production-to-400000oz-and-beyond-fairfax-securities-12213.html
<![CDATA[News - Medusa Mining to double Co-O Gold Mine production capacity with new treatment plant ]]> http://www.proactiveinvestors.com.au/companies/news/158928/medusa-mining-to-double-co-o-gold-mine-production-capacity-with-new-treatment-plant-11783.html Medusa Mining (ASX, LSE: MML; TSX: MLL), through its Philippines operating company Philsaga Mining Corporation, has approved the construction of a new treatment plant and associated infrastructure as well as commencing a major mine development program to increase production capacity at the Co-O Mine in the Philippines.

For the year ended 30 June 2010, the Co-O Mine and current mill produced 89,679 ounces of gold. Once fully operational, the new plant is expected to provide processing capacity to produce 200,000 ounces of gold per annam based on the current grade of the Co-O Mine’s reserves.

Preliminary cost estimates for the new plant (with an initial design capacity to treat 750,000 tonnes per annum) and expansion are expected to be approximately US$80 million and the company intends to fund the cash requirements of the new plant and expansion internally.

The construction time for the new plant after the necessary regulatory approvals are granted is estimated at between 18 to 24 months, and the full benefits of the expansion are expected to be realised shortly thereafter.

The company is currently in preliminary discussions with engineering groups and will provide further details in due course.

Geoff Davis, managing director, said “this decision heralds a new era for the Co-O Project, and demonstrates the Board’s confidence in the future of its Co-O operations. It also confirms a measured approach to our growth strategy."

The capital requirements of the new plant and expansion will be funded out of cashflow and the cashflow generated from the new plant, once it is operational, is intended to in turn fund the company’s next project, Bananghilig.

The drill results released on 29 October 2010 re-inforce the growth potential of the Co-O Mine and surrounding area. The highlight of the 16,700 metre drill campaign was a one metre section where the gold grade was measured at 321.17 ounces per tonne.

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Wed, 17 Nov 2010 11:52:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158928/medusa-mining-to-double-co-o-gold-mine-production-capacity-with-new-treatment-plant-11783.html
<![CDATA[News - Medusa Mining looks to increase the mining area at Co-O on drill results ]]> http://www.proactiveinvestors.com.au/companies/news/158927/medusa-mining-looks-to-increase-the-mining-area-at-co-o-on-drill-results-11262.html Medusa Mining (ASX, AIM: MML; TSX: MLL), through its Philippines operating company Philsaga Mining Corporation, has reported that drilling results confirm the Co-O Vein system is continuing to grow with the recognition and delineation of the North Tinago Vein set.

Co-O is located in a region of world class gold-copper deposits and south of the typhoon belt in the Philippines.

The results include Co-O Mine surface drilling for previous hole MD 259 and new holes MD 261 to MD 279, along with results from underground drilling and an update on regional drilling around the Co-O Mine.

The Royal Vein set is now being delineated by drilling and development along the northern side of the Co-O Mine resource model and has been extended westwards to the Tinago Shaft.

A new vein set named the North Tinago Veins, located to the north of the Royal Vein set, is currently being delineated on surface following initial drill intersections of up to 2.90 metres at 8.08 g/t gold, and on a different vein, 1.00 metre at 29.53 g/t gold.

Geoff Davis, Managing Director of Medusa, said, "drilling of the Royal Vein set indicates they start at shallow depths and extend the full distance along the north side of the mine resource model from east of the Saga Shaft westward to the Tinago Shaft area, although infill drilling and development is on-going to confirm this interpretation."

In addition, surface work is delineating new veins at West Tinago and the vein system at Gamuton is shaping up to be more extensive than previously thought.

These will be systematically drilled to determine their potential to significantly increase the mining area.

Total indicated and inferred Resources at the Co-O Mine are 1,380,000 ounces at 10.8 g/t gold, with total probable reserves of 500,000 ounces at 14.9 g/t gold.

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Fri, 29 Oct 2010 17:23:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158927/medusa-mining-looks-to-increase-the-mining-area-at-co-o-on-drill-results-11262.html
<![CDATA[News - Medusa Mining looks to expand shareholder base with LSE Main Market listing ]]> http://www.proactiveinvestors.com.au/companies/news/158926/medusa-mining-looks-to-expand-shareholder-base-with-lse-main-market-listing-10851.html Medusa Mining (ASX, AIM: MML; TSX: MLL) has confirmed that the process of admission of its ordinary share capital to the standard listing segment of the Official List of the UK Listing Authority is continuing, following the announcement the company made on 15 April.

The company is also awaiting the finalisation of documentation to trade on the London Stock Exchange’s Main Market for listed securities.

Medusa's move from the AIM market of the London Stock Exchange to the Official List and the Main Market, is designed to “raise its profile on a larger scale".

Admission of the company’s ordinary shares of nil par value to the Official List and to trading on the Main market is expected to take place around 28 October 2010, subject to the receipt of the necessary approvals from the UK Listing Authority and the London Stock Exchange.

Cancellation of trading on AIM will be simultaneous with admission.

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Fri, 15 Oct 2010 07:26:00 +1100 http://www.proactiveinvestors.com.au/companies/news/158926/medusa-mining-looks-to-expand-shareholder-base-with-lse-main-market-listing-10851.html
<![CDATA[News - Medusa Mining proposes dividend and constitution amendments ]]> http://www.proactiveinvestors.com.au/companies/news/158925/medusa-mining-proposes-dividend-and-constitution-amendments-9722.html 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% to US$94.6 million, while EBITDA (earnings before interest, tax, depreciation and amortisation) reached US$73.7 million, marking a year on year improvement of 142%.

Earnings per share rose 102% to US$0.378. The company has highlighted record net after tax profits (NPAT) of US$65.8 million. Adjusted underlying NPAT climbed 152% to US$71.7 million and adjusted underlying EBITDA rose 162% to US$79.6 million.

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Wed, 01 Sep 2010 13:55:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158925/medusa-mining-proposes-dividend-and-constitution-amendments-9722.html
<![CDATA[News - Geoff Davis, MD of Medusa Mining, talks about aiming to produce 300,000 to 400,000 ounces of gold a year ]]> http://www.proactiveinvestors.com.au/companies/news/158924/geoff-davis-md-of-medusa-mining-talks-about-aiming-to-produce-300000-to-400000-ounces-of-gold-a-year-7921.html Geoff Davis, MD of Medusa Mining, talks about aiming to produce 300,000 to 400,000 ounces of gold a year, growth driven by a low-cost mine - currently producing 100,000 ounces of gold a year, anticipating a cash cost of US$190 an ounce of gold at the Co-O mine

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Wed, 16 Jun 2010 18:17:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158924/geoff-davis-md-of-medusa-mining-talks-about-aiming-to-produce-300000-to-400000-ounces-of-gold-a-year-7921.html
<![CDATA[News - Medusa Mining: Proposed Resources Super Profits Tax will have no impact ]]> http://www.proactiveinvestors.com.au/companies/news/158923/medusa-mining-proposed-resources-super-profits-tax-will-have-no-impact-6939.html Medusa Mining Limited (ASX/AIM: MML; TSX: MLL)has advised that the new Resources Super Profits Tax proposed by the Australian government will not have any impact on Medusa, as the Company’s operating assets are located offshore in the Philippines.

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Wed, 05 May 2010 08:53:00 +1000 http://www.proactiveinvestors.com.au/companies/news/158923/medusa-mining-proposed-resources-super-profits-tax-will-have-no-impact-6939.html