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Medusa Mining expects steady production this year

Production this year will be between 80,000-90,000 ounces of gold
Gold bullion bars
Production dipped in the year just ended

Aussie-listed gold junior Medusa Mining Limited (ASX:MML) expects to maintain production this year at between 80,000-90,000 ounces of gold while it completes development of a new service shaft.

Completion of the (E15) service shaft, by the March quarter of 2018, will free up the L8 production shaft with improvements in performance starting to come through almost immediately from that point.

All-in-sustaining –costs in the coming year are expected to be between US$1,050 to US$1,200 per ounce, compared to US$1,374oz.

Medusa has endured a difficult twelve months due to problems with its mine development plans at Co-O in the Philippines.

Production over the year to June dropped to 80,700oz from 108,600oz. Hefty write-offs (US$70.8mln impairments, US$7.1mln exploration) meant an underlying loss of US$35.2mln with a net deficit of US$62.1mln.

Revenues dropped to US$100.1mln from US$128.1mln, though the gold price per oz Medusa received for its gold rose to US$1,256 per ounce.

Average cash costs rose to US$595 per ounce, with the lower production blamed for the cost increase.

Shares have dropped to $0.295 from A$0.68 this year so far.

 

 

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