Medusa Mining (ASX:MML), the Philippines-focused gold miner, produced a record 26,859 ounces in the fourth quarter of 2014.
The gold was produced at an average head grade of 5.56 grams per tonne (g/t) and at a cash cost of US$380 per ounce, inclusive of royalties and local business rates.
All-in sustaining costs (AISC) for the quarter eased to US$989 per ounce, including discretionary exploration expenditure of US$2.9mln, from US$1,238 per ounce in the preceding quarter, when discretionary exploration spending was US$2.7mln.
The company said the increase in gold production was down to an increase in mill throughput, improved head grade and improved mill recoveries.
In the six months to end-December – the first half of Medusa’s financial year – the company produced 47,877 ounces of gold, which was above the top end of the company’s guidance of 40,000 – 45,000 ounces, given back in September.
The company added that the L8 shaft upgrade at its Co-O mine completed on schedule on 13 January, and should improve the combined mine haulage to around 60,000 tonnes per month and reduce the time it takes for worker to get to and from the underground work stations.
The company sold 28,190 ounces of gold during the final three months of 2014 at an average price of US$1,204 per ounce, compared to 22,491 ounces sold at an average price of US$1,272 an ounce in the preceding quarter.
At the end of the year, the company had total cash and cash equivalents of US$13.6mln, down from US$15.5mln three months earlier.
Yesterday, the company released an upbeat report on the potential of its Guinhalinan prospect in the Philippines, which it believes is a "major regionally significant" target.
The group said it had defined a "major corridor" of soil anomalies at the site; these anomalies over a strike zone of around 5km, which are open to the south over a width of up to 2km.
Outcropping mineralisation has been found at numerous locations and verified by previous drilling, the company said.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.