MML are an existing gold producer on the island of Mindanao, and are looking to expand production towards 100,000 ozs Pa during 2007.

Mining costs are low, around $250 per oz, and with gold around the $650 level, there is a healthy margin.

MML have returned good grades in recent exploration, and have an exploratory copper project within their licence area.


recent analysis - Click HERE


MML look undervalued compared to their peers, IMO.

Medusa Mining* (MML LN) 219p, mkt cap £413m – Quarterly Activities Report Highlights Expansion of Production for FY 2014

Buy – Target Price 505p (previous 585p)

•Quarterly production should be seen in the context of development to expand the mine.
•The company reported quarterly production to 31 March 2013 of 14,021 oz giving them year to date production of 46,601 oz.
•Grades mined of 6.76 g/t gold were down from the previous quarter of 8.16 g/t gold reflecting the increase mix of development ore being treated through the mill.
•Mine haulage capacity has also been limited over the period which will now be overcome with the completion of the Saga Shaft with capacity of 1,500 tpd.
•The production range for the financial year to end-June 2013 has been guided down to 70,000 to 80,000 oz from 80,000 to 90,000 oz reflecting the pace of development ahead of mine and mill expansion.
•Expansion on target and on budget: Production is on schedule from the new mill in June/July this year.
•The new Sag mill and crusher are on schedule for commissioning in June.
•The leach tanks have been upgraded and converted to CIL and the detoxification plant was commissioned in April.
•The tie in of the new leach circuit to the crushing circuit will result in 4 weeks of loss in production which has been taken into account in new production targets for FY 2013.
•Mine development continues to meet expansion requirements: The lateral development underground has accelerated to a minimum of 1,000m a month from 800m per month recently with a high proportion of lower grade development ore being fed into the current mill and also stockpiled.
•Around 200m of Level 8 development has been finished with four veins intersected giving greater flexibility and production capacity.
•Development for the quarter was 2,317m with 50 development headings on vein, 20 vertical rises on ore and 15 on waste.
•Bananghilig Feasibility on track: The feasibility is expected to be completed in the September quarter with the company looking to finesse and improve parameters released with the recent scoping study.
•This open pit bulk mining project is being targeted for production in 2016 with ramp up in FY 2016.
•Current parameters for the Bananghilig project are 200,000ozpa for a 5 mtpa milling operation with recovered grades of 1.3 g/t, strip ratio of 4:1 and 80% recoveries.
•Cost of capex including pre-strip is projected at US$220m with an indicative cash costs excluding 3% royalties of US$565/oz. Royalties are likely to increase to 6% including the 1% community royalty with the passing of the new mining act.
•The plan is for Bananghilig to be funded from cash flows from Co-O.
•Cash and cash equivalent at the end of the quarter stood at US$8.91m.
•Most of the major expenditure for the mine expansion and development has been undertaken.

Conclusion: The lower production for the quarter and the revised production for FY 2013 should not be a surprise and is in our view historic – the old mill is close to the end of its life and mine development to meet the mill expansion has impacted grades and production. The key for the stock is the expanded production with the new mill to be commissioned in June.
The expansion to 200,000 oz should give operating cash flows of US$210m based on a total cash cost of US$400/oz and current gold prices of $1450/oz. This will more than cover the on going exploration and development work at Co-O and fund works to bring Bananghilig on stream targeted for 2016 and rebuild the company’s cash position.
We have brought back our target price to reflect the lower near term production, higher cash consumption and lower gold prices.
At current prices there is significant upside in the share price with PE and EV/EBITDA multiples coming down from 10.5x and 7.9x in 2013(F) to 3.4x and 2.7x respectively.

sp 178p still falling.

Yes a reaction to the recent quarterly report which showed a drop in production,it's affected senitment and the market is looking elsewhere at presemt,this in turn creates a buying opportunity imo,just judging the bottom?

Worth re-reading the following,

Conclusion: The lower production for the quarter and the revised production for FY 2013 should not be a surprise and is in our view historic – the old mill is close to the end of its life and mine development to meet the mill expansion has impacted grades and production. The key for the stock is the expanded production with the new mill to be commissioned in June.
The expansion to 200,000 oz should give operating cash flows of US$210m based on a total cash cost of US$400/oz and current gold prices of $1450/oz. This will more than cover the on going exploration and development work at Co-O and fund works to bring Bananghilig on stream targeted for 2016 and rebuild the company’s cash position.
We have brought back our target price to reflect the lower near term production, higher cash consumption and lower gold prices.
At current prices there is significant upside in the share price with PE and EV/EBITDA multiples coming down from 10.5x and 7.9x in 2013(F) to 3.4x and 2.7x respectively.

I make the value around £47k by the CEO?

http://www.investegate.co.uk/medusa-mining-ltd--mml-/rns/director-s-shareholding/201305030900019620D/

sp 166p continues to sink like a stone made perhaps of gold?

sp 117p still falling.

sp falls again to 106.25, something wrong here?

Will production be down? Will medusa need finance to complete modernisation? any effect of new taxation laws? These are some of the issues been asked ,but 6 months from now should not be relevant. Small rebound today. Is this the bottom?

Looking at this one - haven't bought yet. Just following if that's ok.

Share trader - don't suppose it's possible to have a chart for MML at the top?

sp 100p still falling.

The company who manage the mill expansion have gone bust before completion. This may affect production. Is this the reason for the drop in share price? People in the know had prior knowledge.

o-O MILL EXPANSION PROJECT MANAGERS APPOINT ADMINISTRATORS

(ASX & LSE: MML)

Medusa Mining Limited ("Medusa" or the "Company") wishes to advise that the ASX listed entity, All Mine Group, the parent company of Arccon (WA) Pty Ltd who manage the Co-O Mill expansion, appointed WA Insolvency Solutions Pty Ltd as administrators on 20 June 2013 (see ASX announcement under ticker AZG dated 20 June). The Company was advised by letter Thursday evening 20th June.

Medusa is currently uncertain as to the timing and the effects on completion of the finishing touches to the mill and full circuit commissioning as dedicated commissioning personnel were scheduled to mobilise to site imminently. Discussions are expected with the administrators and direct communications with personnel on site are underway to minimise disruption to site activities.

The Company will provide further updates when more information becomes available.

https://www.youtube.com/watch?v=f_YKy2V5aP4

Results out. Profit rise. Starting to look better, [depending on gold price].

http://www.investegate.co.uk/medusa-mining-ltd--mml-/rns/operations-update---new-mill-and-level-8/201309040800021865N/

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http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/12/20_LBMA_Chairman_Tells_Producers_Gold_To_Plunge_$400_In_2014.html

These guys seem positive on the miners - http://www.spreadbetmagazine.com/blog/titan-investment-partners-why-were-backing-the-mining-sector.html

http://www.investegate.co.uk/medusa-mining-ltd--mml-/rns/half-yearly-report/201402270805020352B/

http://www.bloomberg.com/news/2014-02-28/gold-fix-study-shows-signs-of-decade-of-bank-manipulation.html?alcmpid=markets