Higher production and gold prices helped Medusa Mining (LON:MML ASX:MML) increase first half profits by 19%, with output expected to rise again in the second half.
Medusa re-iterated it expects to produce between 80-90,000 ounces over the full year, rising to 200,000 ounces in 2014 as the benefits of new and extended shafts at the Co-O mine come through.
Medusa added that the "game-changer" Saga Shaft is now in operation and pulling rock from 350 metres below surface at Level 8 in increasing amounts.
The current mine combined shaft haulage capacity has now been boosted to 2,500 tonnes per day but the current mill capacity remains at approximately 1,000 tonnes per day until a new mill is completed.
By 2016, production is expected to rise to 400,000 ounces as the nearby Bananghilig deposit comes on stream.
The Philippines-based miner produced 32,580 ounces in the six months to December, against 26,780oz a year earlier
Sales totalled 43,492oz and at a price of US$1,676 per ounce Medusa generated revenues of US$52.4mln. Costs rose to US$300 per oz, from US$261.
Net profits rose by 19% to US$28.6mln, though there was no interim dividend as Medusa said it will use the cash to fund its expansion drive.
Shares were little changed at 300p.