Medusa Mining, a public company listed on the ASX and LSE, is an Australian based gold producer, focused solely on the Philippines. Medusa's corporate strategy is to become a mid-tier, 400,000 ounce per year, low-cost gold producer.
The Company has completed the two-phase expansion of its high grade Co-O Mine operations to a production level of 100,000 annualised ounces. The Company has approved a Phase 3 expansion to build an expanded mill with capacity for 200,000 ounces of production.
Ongoing drilling is verifying and expanding the Bananghilig Deposit with the aim of defining one million ounces of reserves to initiate feasibility studies.
Further potential upside exists for the discovery of copper and additional gold deposits within the tenement holding of more than 800km2.
Medusa Mining reports 216% full year revenue hike, aims for growth in 2010
Shares in Philippines focused gold producer Medusa Mining (AIM&ASX: MML) were in demand today after the Australian miner released its full year report, saying its revenues doubled as output and resource inventory increased, positioning Medusa for further growth.
Net profit jumped to A$38.1 million from A$1.3 million last year, while earnings per share increased to A$0.25 from A$0.009 a year ago. Revenues were at A$57.2 million, marking a 216% hike from last year’s A$18 million.
Higher profits and revenues were mostly due to the progress at the Co-O mine in the Philippines, where Production at the Co-O mine jumped 152% to 47,869 ounces this year, or 60,000 ounces annualised. The latest estimates put the mine’s resource at 1,380,000 ounces, significantly more than the initial estimate of 267,000 ounces upon the acquisition of the asset in 2006. Medusa now plans to produce 82,000 ounces in the forthcoming fiscal year, expecting an output of 100,000 ounces at the Co-O mine from the first quarter of 2010.
Medusa has also announced a maiden resource of 650,000 ounces at its Banaghilig deposit, bringing its total resource inventory to 2.03 million ounces.
The company currently has 12 surface rigs and plans to further grow exploration expenditure, having added some 1,100,000 ounces to the resource inventory since last year’s annual report. Medusa is now looking to eventually increase the overall production level to between 300,000 and 400,000 ounces.
“Exploration in progress to potentially justify a further expansion, the Company is set to enter the realms of a mid-tier gold producer,” said Managing Director Geoff Davis.
On top of that, production costs were brought down to US$219 per ounce from US$240 last year, planning to further cut the cost to US$200 in the upcoming fiscal year, retainingmml its status as one of the lowest cost producers in the ASX and AIM markets.
“We see no reason for this to change in the foreseeable future which cements the Company's position in the gold industry as a low cost producer,” said Davis.
Medusa has performed well, posting a fourfold share price increase since January 2009. The strong results and the upbeat outlook helped it to further gains this morning in London, sending its stocks up over 2.5% in early trade.
