Gold miner Medusa Mining Ltd (ASX:MML) reported a 4% increase in revenues in the year just gone and swung to an after tax profit, as production was in line with guidance.
The group, which operates the Co-O gold mine in the Philippines, produced 108.578 ounces of the yellow metal at a head grade of 6.40 g/t - up from 98,359 ounces in the previous year to end June - at 5.61g/t.
It received an average price of US$1,173 for the gold sold (2015: US$1,220 per ounce).
Revenue was US$128.1mln compared to US$123.2mln in the year before and the statutory after tax profit was US$43.8mln compared to a loss of US$218.1mln the year before.
Underlying earnings (EBITDA) were US$69.6mln against a loss of US$186,8mln the year before, largely due to asset impairment losses of US$259.6mln.
The miner has been embarking on major works at the mine and US$17.2 million was paid out linked to building a new mill, expanding the mine and sustaining capital at the mine and mill.
Exploration expenditure, including underground diamond drilling, was US$9.3 million (2015: US$11.3 million).
Average cash costs for the year at US$466 per ounce, including royalties and local business taxes was higher than the previous year’s average of US$385 per ounce, but that was mainly down to changing way of allocating total mining costs introduced last month.
The firm is guiding production for the year to end June, 2017 to be between 105,000 and 115,000 gold ounces at an all in sustaining cost of between US$1,000 to US$1,100 per ounce.Meanwhile, new resource and reserve estimates for 2016 are currently being compiled and will be reported in the September 2016 quarter, it added