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.

Managed to get in sub £3,looks like just in time?

GOLD flying at the minute, $1617.Prices below in POUNDS.

http://www.bullionbypost.co.uk/gold-price/gold-price-today/

http://www.directorstalk.com/angelos-damaskosceo-of-sector-investment-managers-and-fund-adviser-to-the-junior-gold-fund-warns-of-gold-supply-crunch/

Half year report.

http://www.investegate.co.uk/medusa-mining-ltd/mml/highlights-of-the-half-yearly-report/201302270901027713Y/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Medusa%20Mining%20Ltd%20Alert

From SP Angel.

Medusa Mining* (LON:MML) – New Saga shaft lifts profits
Interim statement highlights development progress at Co-O gold mine in the Philippines
• Medusa Mining have published their interim report for H1 2013 eg July to end-December 2012.
• The key component of the statement is the forecast outlook which highlights a marked improvement in gold production over the next 16 weeks and thereafter.
• Gold production is set to rise to somewhere between 47,420oz-57,420oz for the January to end-June along with a significant fall in unit cash costs.
• Management have bravely given a clear breakdown of expected production for the next five fiscal years (see tables included below)
• The table highlights a marked rise in forecast gold production this year with production to average a rate of 200,000ozpa from the second half of this calendar year (H1 FY 2014).
• The team also expect the Bananghilig Mill, just 30km from the Co-O mine, to contribute a further 100,000oz to gold production in CY 2015 to give 200,000ozpa in FY 2016.
• Combined gold production should reach 400,000ozpa in FY 2016 according to the forecasts
Interims H1 FY 2013:
• Sales rose 28% to US$52.4m yoy on production of 32,508oz vs 26,780 yoy while
• Gold prices received were little changed at US$1,676/oz vs 1,655/oz yoy through the period.
• Net profits rose 19% to US$28.6m highlighting better operational performance.
• Cash costs rose to US$300/oz from $261/oz, still very low by industry standards no matter which way you account for the costs.
• The Saga shaft at the Co-O gold mine is now operating from the 350m level creating new operational efficiency and enabling the extraction of ore from newly exposed veins from developments from the bottom of the Saga shaft.
• Work is ongoing at the Baguio shaft at Co-O to extend this to level 5 and the Agaso shaft is to be extended to level 8 when this level becomes fully operational.
• Capital is being saved through deepening the inclined shafts postponing the need for a new deep shaft in this area.
• Resources have grown at Co-O to >2moz to give ten years of potentially mineable ore.
• Bananghilig: Drilling confirms an indicated 608,000oz gold resource with 472,000oz inferred but soon to be included through 14 holes of infill drilling. A feasibility study for 200,000oz pa should follow.
• Valuation: Medusa is performing in line with our forecasts. Our valuation adjusts down to 585p from 612p due to our changing gold price forecast to $1,663/oz for H1 2013 from $1,700/oz. This is a relatively minor adjustment in the scheme of things.
• Medusa has managed to self funded the development and expansion of the Co-O gold mine and processing plant without recourse to shareholders and is also improving the quality of its operation. The stock has good liquidity which should improve further as the revenues increase.
• Dividend: Medusa is not paying a dividend this period due to the cost of its expansion program at the Co-O gold mine. There may be some investor disappointment at the lack of an interim dividend.
• Medusa remains unhedged to gold prices.

Conclusion: Medusa have driven through extreme weather and other events to expand the Co-O gold mine to new levels.
The mine is now running at a much increased rate with many more gold veins in development and much greater hoisting capacity in the shafts.
The plant is being expanded to take rising throughput towards target levels and to raise capacity further.
A new mill is to be tied-into the plant in June to speed up gold recoveries to enable yet greater capacity.
We have reduced our target valuation to 585p from 612 pence to reflect marginally lower gold price forecasts.< strong>

Interims very positive.Ramp up of production should see steady increase in share price, and any GOLD PRICE increase will take it substantialy higher. The fly in the ointment will be if there are any more delays.

Is this one of the markets bargains,could well be at this SP, looks like the POG will decide ?

With their production missing targets and cash burn the SP has suffered,but as this
post by a respected poster explains.


They have had 18 months of this development and are still needing to process largely development ore. Hardly surprising that production and costs have suffered during this phase. As for CAPEX, this was well signalled long ago and has had to be paid out of cash and free cash flow over the development period. Thankfully, unlike many other mining operations, they have at least had the wherewithal to do this without recourse to shareholder funding.
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I'll be keeping this on my watchlist,16 weeks was mentioned to increased
production and remenber their costs is one of the lowest.

C&P from a pi's calcs. Looking good to me?


We last had EPS of 36p in 2011 when they achieved 101,474 ozs and costs were mega low at $189. But the Gold price was only $1089 and we still hit c. £5.50 a share.

This CY - 2013, according to their forecasts we will be above the previous production high of 101,000ozs at 150,000/160,000 ozs. with Gold now around $1600 and costs at c.$250/$300 (forecast by Co.)

">

Interesting discussion from around 16mins.

ww.youtube.com/watch?v=bNYplo-Nwlw

http://www.moneyam.com/action/news/showArticle?id=4565454

Pity the markets weak for gold at present,but allows us a chance to buy at a low valuation for this low cost producer,with no debt. ?

Golds really in the doldrums at present($1549),i wonder where it will bottom out?
Well worth keeping this low cost,debt free company on your watchlist.

Not lookung good for gold at present.



The price of gold extended its worst two-day drop vs. the dollar since June last year Thursday morning in London, falling as low as $1,540.50 per ounce before rallying to $1,551.

Commodities also stemmed their fall and major government bonds trimmed earlier gains.

European stock markets were mixed, but Japanese shares leapt 2.2% on the day after the central bank in Tokyo vowed "to use every means available" to reverse the country's two-decade economic depression and price deflation.

Spending more than $1.4 trillion in newly-created money over the next two years, the Bank of Japan's fresh quantitative easing will see it buy listed equities and real-estate trust funds as well Japanese government bonds.

On the news the yen fell nearly 3% versus the dollar. That only unwound the last 36 hours of falling gold prices, however, which rose back to ¥4,750 per gram – a new three-decade high when first hit at the start of this year.

"Stop loss orders were triggered [Wednesday] when the gold price fell through key support levels," says a note from German bank and bullion retailer Commerzbank.

"We believe the next wave will be another corrective wave [with] a target as low as $1,308," says Russell Browne at bullion-bank Scotia Mocatta, pointing to Elliott Wave analysis. "However, gold has to first break through big support level in $1,522 to $1,535 level, the lows from 2011 and 2012."

"We have to think that the gold sell likely has some roots in heavy fund liquidation," says comment from brokers INTL FCStone, adding "Our guess is that the lone holdout – John Paulson – may finally be throwing in the towel and perhaps paring some of his massive positions."

The giant U.S.-listed SPDR Gold Trust ETF shed a further 2.7 tonnes on Wednesday after losing more than 8 tonnes Tuesday according to Reuters data.

Now holding 1,206 tonnes of gold bullion to back its shares – more than 10% less than the all-time peak of late-November last year – the trust was 5% owned by Paulson & Co. as part of its flagship, gold-denominated hedge funds.

The quantity of bullion held for silver ETF trust funds was unchanged Wednesday according to Bloomberg. But silver prices also extended their drop for the week to 5.6% on Thursday morning with a new 8-month low versus the Dollar beneath $26.80 per ounce.

"Silver broke the four-year trend line now at $29.80 and corrected lower," says a note from bullion market-making bank Societe Generale, "and is nearing the multi-year lows at 26.40/26.05. This zone is made up of the lows since 2011."

SocGen earlier this week issued a report declaring "the end of the gold era" for the last decade's bull market, citing expectations of higher interest rates from the US Federal Reserve.

"Things still have a way to go before we can say we've fully recovered from the worst financial crisis and recession since the 1930s," John C.Williams of the San Fran Fed told an audience in Los Angeles on Wednesday.

A day after Dennis Lockhart, president of the Atlanta Federal Reserve Bank, said the US Fed's $40 billion per month asset purchases "continue to be justified", Williams said he expects the unemployment rate "to edge down to a little below 7% by late 2014 and fall below 6.5% in the middle of 2015."

Six-point-five is the jobless level at which the Fed would consider tightening its ultra-accommodative policies, according to its recent policy statements. Williams is not a voting member of the Fed's main committee until 2015.

Today both the Bank of England and the European Central Bank meantime kept their key interest rates on hold yet again, offering overnight money to commercial banks at a record-low 0.50% and 0.75% respectively.

The gold price in euros today hit its lowest level in four weeks at €1,200 per ounce – a record high when first reached on the way up in August 2011.

U.K. savers and investors saw gold priced in Sterling make a new 2013 low at £1,020 per ounce.

http://www.investegate.co.uk/medusa-mining-ltd--mml-/rns/co-o-mine---mill-expansion-update/201304080900037790B/

http://www.investegate.co.uk/medusa-mining-ltd--mml-/rns/bananghilig-gold-deposit-scoping-study/201304090900028924B/

More good news,once the Co-o mime production becomes established,i can see this company being north of £5.

Clearly hit by the POG,depending on what happens to it will effect the SP short term.But this company can work in profit at lower rates(can't be said for many small/mid gold miners),so well worth keeping on youe watchlist and a buy with a recovery in the POG.
AIMHO

http://uk.finance.yahoo.com/news/crash-for-gold---biggest-price-fall-in-30-years-160240793.html

Panic selling gives an opportunity for those with nerve, a chamce to get in at such low rates.With QE affecting currencies it imho will only be a matter of time before gold recovers,at least a fair proportion of it's former value?

Almost posted yesterday suggesting buying in at lows(188p),but thought better of it as their seems little interest. Gold now recoving(above $14oo/oz) and low production costs,this is still a compelling BUY? aimho

Hold and be patient, 500p by year end, regardless of gold price. (or buy at this very low price if you have funds).

Agree,here's a mine costing chart,with Co-o 2nd from left.

http://www.zerohedge.com/news/2013-04-18/soft-cost-curves-hard-assets-where-cash-flow-hits-road

From a trusred and well respected pi concernibg yesterdays presentation.Gold creeping back up slowly,breaking $14450 would be nice.

==============================================================
I attended (and it was really good to meet up with a number of people who use this BB). I am a little short of time this morning so cannot do much at the moment - perhaps others will also add their comments.

I thought the presentation was very upbeat and re-assuring on all points.

They have a relatively small residual amount of Capex left to outlay on the mill/mine expansion and do not appear concerned about working capital.

They appear to be sticking to their plan to self-fund Bananghilig from Co-O cash flow and will resume dividends once this has been achieved (c. 18 months).

Co-O will then stick at 200koz pa on an ongoing basis with exploration limited to sustaining a rolling 10-year mine life by replacing depletion and maintaining a 2m oz recoverable resource into the foreseeable future.

I will add more later.
Chi