Executive Summary
Medusa Mining Limited (LON:MML) is an Australian gold producer operating in the Philipines and listed on the ASX and AIM. It has total current assets of 2m ounces of gold, and aims to become a 300 - 400k producer of low cost gold. It is currently establishing a pipeline of deposits with the Banaghilig Deposit, which is expected to expand with potential new nearby discoveries.
Company History
The company was founded in 2002 and began working in the Philippines in 2003. It began drilling the Co-O mine in 2004, and has since then been working on a number of other exploration and development projects.
Current Events
The company recently made the following announcements:
- January 2009: the company announced its intention to increase gold production to 60,000 ozs in 2009 [1]
- July 2009: the company doubled its probable gold reserves at the Co-O mine to 500,000 ozs [2]
- August 2009: the company announced an increase resource inventory to 2 million ozs of gold [3]
- September 2009: the company announced a net profit after tax of $38.1m
Business Model
Medusa's objective is to develop a cash flow from high grade gold deposits, and the company has identified the Philippines as the country in which it is most likely to achieve this, not least due to increased government facilitation of mining investments. Specifically, the company aims to achieve the following:
- Acquire new gold and gold-copper projects;
- Achieve gold production with a low capital exposure;
- Explore for high grade deposits with good access and infrastructure.
Products/Services
Segments/Customers
Production/Operations
The company operates several projects, as detailed below. [4]
- Co-O Mine: drilling started in 2004 and the resource estimation is 1.38m ozs
- Anoling Project: operated under an agreement with Alcorn Gold Resources Inc. [5] Drilling has been terminated, although detailed geological work is still underway
- Tambis Bananghilig Gold Project: underground exploration and trial mining has been undertaken, and geological mapping and assessment is currently underway
- Lingig (Das-Agan) Project: drilling for copper started in July 2009, and three rigs are currently in operation
- Abacus Project: favourable geology for copper and gold has been found
- Apital Gold Project: currently awaiting the tenement to be granted for the company to go ahead on a joint venture with MRL Gold Phils. Inc. [6]
- Saugon…
