www.medusamining.com.au
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 says tropical storm damaged infrastructure at Co-O operations, mine unaffected
Medusa Mining (LON:MML, ASX:MML) reported that tropical storm Sendong has damaged some of the infrastructure at its Co-O gold project in the Philippines.
Sendong passed to the north of the Co-O operations at the end of last week, bringing strong gusting winds and heavy rainfall to area surrounding the mine and mill.
While the Co-O mine did not suffer any damage and remains operational, the storm has caused roofing damage to the laboratory and mill buildings, while torrential rain has damaged in parts the 11 kilometres of haul road between the mine and the mill.
As a result of the damage to the road, ore haulage will be limited until the road dries out and the completion of repairs, which are set to begin once the rain eases.
Medusa told investors that it will provide further information about the possible impact of the storm on its production in its December quarterly report.
The company added that the last similar tropical storm to hit Mindanao occurred more than 20 years ago in the Surigao district, which is located a 3 hour drive to the north of the Co-O operations. Medusa will be providing assistance where possible to local communities that have been affected by the storm.
Earlier this month, broker Seymour Pierce said there was significant value in medusa after comparing it to larger rival Randgold Resources (LON:RRS). The broker said market expectations were for Randgold to grow production by 17 percent in the next full year and by 9 percent in 2013.
Medusa, meanwhile, offers production growth of 27.1 per cent and 66.0 per cent in the years to end June 2013 and full year 2014.
Medusa also trades below the weighted average for its London listed gold peer group on all three earnings metrics for the full year to 2013, added Seymour Pierce.
The broker currently has a buy rating on Medusa with a price target of 526 pence.
Shares in Medusa fell 5 percent to 300 pence this morning, valuing the company at £566.5 million.
