Medusa Mining
Medusa is an expanding gold producer in the Philippines, listed on the Australian Stock Exchange (ASX;MML), London AIM (AIM: MML) and Toronto Stock Exchange (TSX: MLL) markets. With an expanding resource base now at 1.2million ounces at 13.3g/t gold and production on track to achieve 60,000 ounces annualised in Q3 09 and 100,000 ounces annualised early 2010, it is anticipated that long term cash costs will be approximately US$200/ounce. Numerous new discoveries of gold and copper-gold are anticipated in the future within the large regional tenement package totalling 820km². The operations are an integral part of the local communities.
Medusa Mining reveals record breaking first half, net profit up 201%
In the six months ended 31 December 2009, Medusa Mining Limited (ASX, AIM: MML, TSX: MLL) achieved new company performance records, reporting half-year net profit of US$28.3m, representing a 201% increase from US$9.4m in the corresponding period a year earlier. Revenues grew by 161% to US$41.3m. The emerging gold miner’s record-breaking performance was driven by both increased gold production, lower costs and higher received gold prices, it said.
Medusa produced a record 39,162 ounces of gold from its Co-O mine in the Philippines during the half-year, representing a 105% increase from the same period in 2008. Production averaged grades of 16.65 grams per tonne (gpt) gold, compared to 12.71gpt in the six months to 31 December 2008. Average cash costs were reduced by 16% to US$189 per ounce during the period, compared to USS$225 in 2008.
"The company has regularly broken its production targets on a quarterly basis and I am extremely pleased with the total of 39,162 ounces for the half year”, Medusa MD Geoffrey Davis commented. “This record production, coupled with a healthy gold price received, has contributed to a record half-yearly net after tax profit figure of US$28.3 million. Furthermore, the very low production costs of around US$190 per ounce should be highlighted”.
For the first half, Medusa achieved 228% earnings growth to US$31.5m, equating to basic earnings per share (EPS) of US$0.16, representing 158% growth compared to the same period previously. Furthermore, the improved revenues and earning have resulted in a substantial improvement to Medusa’s cash position. The company stated that it is currently debt free and had a cash balance of US$35.5 million at 31 December 2009, up 788% from the US$4m at 31 December 2008.
"Remarkably this has all been achieved through a period of intense re-development of the Co-O mine and associated infrastructure, and with the expansion programme now complete, our team can concentrate on optimising current production levels at the Co-O mine”, Davis added.
Medusa said that Phase II of the expansion programme is on schedule, and the program’s incremental benefits are flowing through as evidenced by the record gold production of 39,162 ounces for the last six months. Phase II aims at bringing Co-O’s annualised production to 100,000 ounces.
The company also noted that it has upgraded forecast gold production from 86,000 ounces to 89,000 ounces, at an anticipated average cash cost of US$190 per ounce. Looking ahead, the company said it was also focused on adding new projects, to increase output as Medusa grows into a mid-tier gold producer.
Other Medusa Mining articles
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31/08/10 Higher gold production and lower cash costs propel Medusa Mining to record net profit
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08/03/10 Medusa Mining announces 1:10 bonus issue
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07/09/09 Medusa Mining reports 216% full year revenue hike, aims for growth in 2010
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12/08/09 Medusa Mining increases resource inventory to 2 million ounces of gold
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27/07/09 Medusa Mining on schedule to produce 100,000 ounces of gold from Co-0 Mine in 2010
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10/07/09 Geoff Davis, Managing Director of Medusa Mining talks to Proactive Investors
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28/01/09 Medusa Mining to increase gold production to 60,000 ozs in 2009
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19/01/09 Medusa Mining increases gold resource to 1.2 million ounces in Philippines
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24/10/08 Medusa Mining has a lot going for it as a low cost gold producer
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25/07/08 Medusa Mining reaffirms target of 100,000 ounces of gold production by 2010
Other Medusa Mining news
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01/09/10 Medusa Mining buoyed by maiden dividend proposal
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01/09/10 Medusa Mining proposes dividend and constitution amendments
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31/08/10 Higher gold production and lower cash costs propel Medusa Mining to record net profit
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31/08/10 Medusa Mining posts record results in 2009/10 as gold prices and production rise
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11/08/10 FairFax Securities notes Medusa Mining’s 'solid reserve base'
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06/08/10 Medusa Mining increases Co-O probable gold reserve to 505,000oz
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29/07/10 Medusa Mining achieves record gold production at Co-O mine
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29/07/10 Medusa Mining achieves record gold production at Co-O mine
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27/07/10 Medusa Mining promotes Peter Hepburn-Brown to operations director
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22/07/10 Fairfax expects Medusa Mining’s Co-O gold production base to top estimates after resource upgrade
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