mml london presentation, page-5

Medusa Mining applauded as it progresses growth plans in Philippines
2:23 pm by Natasha Barr

http://www.proactiveinvestors.co.uk/companies/news/43344/medusa-mining-applauded-as-it-progresses-growth-plans-in-philippines-43344.html


The company has been able to speed up development due to strong cash flow, helped by the fact that it is one of the cheapest running gold mines in the world.

Medusa Mining (LON:MML) is in a year of “transition” its chairman said as it progresses along a five year growth plan to more than quadruple its current gold output.

At a presentation to Proactive Investors, Geoffrey Davis confirmed output this year from its Co-O mine in the Philippines will be 60-65,000 ounces of gold rising to 200,000 ounces per year by 2014.

In addition to the Co-O mine, it is also developing its Bananghilig open pit deposit to start production in 2015.
Co-O is a narrow vein underground mine in the south east island of Mindanao with an exploration target size estimated to be between 3 and 7 million ounces.

Davis said: “We are getting very close to the 3 million ounces [resources] mark and we are getting nowhere near to the end of this deposit.”

The company has been able to speed up development due to strong cash flow, and the fact that it is one of the cheapest running gold mines in the world.

A typhoon late last year set back production marginally for the year but will have no overall effect on the five year target, he said.

The miner is modernising and upgrading the existing mill site as well as adding a new leach tank, crusher foundations and detoxification plant.

At Bananghilig, Medusa is aiming initially for one million ounces of reserves with a five year mine life producing 200,000 ounces per year.

Once both mines are up and running, Davis said the company would look at its dividend payout policy and would consider a special dividend if cash began to build up.

Fairfax analyst John Meyer opened the Medusa presentation with a brief outline of what to look out for in mining companies as well as a brief analysis of Medusa.

Mayer said: “Look for companies where there is some inkling of discovery, where there is some reason to believe that the company can move in the next few years.

The Medusa share price rose up 4 per cent to 312.9 pence today.