There were two bits of good news for Medusa Mining (LON:MML, ASX:MML) shareholders to savour of Tuesday.
First off was the rise in the gold price, which helped precious metals shares shine as spot gold rose 2% to $1,419 an ounce.
Secondly, the company revealed that the commissioning of the new US$70mln mill at its Co-O mine in the Philippines is “nearing completion”.
The upgrade will allow the group to produce at an annualised capacity of 200,000 ounces of gold a year.
In the year to June 30, output was 62,243 ounces of the yellow metal at a very competitive cash cost of US$313 an ounce (up from US$261).
Giving guidance for the September and December quarters, it said production would be 17,000 ounces and 35,000 ounces, respectively.
Medusa added that full-year guidance for 2014 will be available once the new Co-O mill is fully commissioned and further development has been completed on Level 8 of the mine.
Shares rose 5% to 166.8p each.
SolGold (LON:SOLG) has been one of AIM’s best performers in the last month thanks to good news on the permitting front.
Today, it confirmed the environmental sign-off for its Cascabel project in Ecuador, which means it can now start drilling the copper-gold project as early as September.
The rig began its journey to Cascabel's Alpala prospect last week and construction of the first drill pad began several days ago.
Chief executive Alan Martin said: “This is truly an exciting time for SolGold and its shareholders.
“The signing of the environmental licence by the Minister of Environment on August 23 means that all of the regulatory conditions have now been satisfied.
“With the potential at the Alpala prospect to deliver a world-class copper-gold porphyry deposit, it is an exciting time for SolGold shareholders.”
SolGold owns 30% of the subsidiary company ENSA that holds the Cascabel tenement, with an option to take that up to 85% through completion of a drilling programme and subscriptions in partner Cornerstone Capital.
Up 200% in the past three months, SolGold shares rose another 5% today to 8p each.
The IPO market has been on the rise lately despite still being some way off its 2006 peak. Plans for another float – that of London estate agent Foxtons – were outlined on Tuesday with a stock market listing set to value the company at £500mln.
Bosses at the group, which was founded in 1981 in Notting Hill and now operates 42 branches, are set to make £100mln from the listing, it is reported.
As part of the listing, the group will offer new shares to raise around £55 million, which will be used, together with existing cash, to repay outstanding debt in full.
Trading has been boosted recently by the strength and stability of the London property market and government incentives such as Funding for Lending and Help to Buy, which has seen rival Countrywide return to the stock market, followed by housebuilder Crest Nicholson.