Medusa Mining (ASX: MML, LON: MML, TSX:MLL) has unveiled strong half yearly results, with net profits more than doubling to a record US$58.1 million.
The company has been expanding production at the Co-O gold mine on the Mindanao Island in the Philippines, from 40,000 gold ounces a year up to 100,000 gold ounces.
This has transformed Medusa from a small AIM-listed junior into a dividend paying, main market, gold producer in just a few short years.
The gold miner produced a total of 51,127 gold ounces in the six months ended 31 December 2010.
Crucially Medusa is benefiting from both rising mine output as well as rising gold prices.
Revenues were up 90%, compared with the same period in the previous year, to US$78.3 million, and earnings (EBITDA) rose 101% to US$63.3 million
Medusa’s gold production is very low cost, at an average of US$186 per ounce in the first half, and it is un-hedged.
During the period it sold 48,883 gold ounces at US$1,291 an ounce.
Geoffrey Davis, managing director, said, “Exploration is continuing around the Co-O Mine to increase the likelihood of new vein discoveries to provide additional production.
“Mine development is continuing with the sinking of the 3-compartment Saga Shaft underway, and the commencement of a new adit to access the Royal Veins and the newly discovered North Tinago vein systems.
“The approval by the board to construct a new Co-O mill with capacity to produce 200,000 ounces of gold is an integral part of the company's growth strategy."
The news seems to have been largely expected, the record production levels were previously announced at the end of January, as the shares eased around 1%, in a fairly weak market today.