Medusa Mining Limited (LON:MML,ASX:MLL,TSE:ML) has announced the appointment of Ciceron "Jun" Angeles as a non-executive director of the board with immediate effect. He is currently a director of GGG Resources (LON: GGG).
Angeles is a geologist with over 34 years of experience in gold and base metal exploration in Asia, mainly Philippines, Indonesia, China, Malaysia and Iran.
His previous postings include Asia Exploration Manager for Newcrest Mining during which time Newcrest brought the Gosowong Mine into production.
As well as being non-executive director, Angeles will also serve as a member of Medusa’s audit and remuneration committees.
Geoffrey Davis, chairman of Medusa, said: “The future of the company lies in new mineral discoveries which can be converted into profitable mines and we are confident that Jun's experience, both in the Philippines and internationally, will enhance our discovery and development opportunities.
Davis added that Angeles’ technical expertise, particularly in training geological teams, grass roots exploration and management, and his experience of being actively involved in the corporate governance of public companies, will prove beneficial and complement the skills of the current board members.
Last week Medusa attracted favourable comment from Fairfax analyst John Meyer. He reckons the company is set to make almost £100 million in profit this year.
The analyst’s assertion came as the group told investors that it expects to produce between 100,000 and 110,000 ounces of gold in the forthcoming year, beginning 1 July, at cash costs of around $200 per ounce.
Medusa’s Co-O mine is currently going through a major expansion programme, which is intended to increase annual production up to 200,000 ounces. The next part of this expansion will see underground development work speed up rapidly, up to 800 metres a month.
This accelerated development phase will however have a negative impact on mined grades for a short period – mainly in the September quarter - and cash costs will also be affected.
Consequently John Meyer revised his production forecast for next year, reducing it from 125,000 to 105,000 ounces. And while that has meant a reduction in his price target from 599 to 573 pence, Meyer retained his ‘buy’ recommendation on the stock.