positive comments from broker

Thursday, October 14, 2010
Fairfax calls Medusa Mining a high quality gold producer delivering on promises

In its Daily Market Report, Fairfax called Medusa Mining (LON:MML, ASX:MML, TSX-MLL) a high quality gold producer delivering on promises with significant organic growth potential.

The comments came in the wake of the groups announcement that it expects to move up to the main board of the London Stock Exchange on 28 October 2010. The plans to move up from the AIM market were initially announced back in April. It also confirmed last week it will be paying a maiden dividend.

The move to the main board and the decision to start paying dividends marks major milestones in the companys evolution, the broker said. The current gold price environment make this an excellent low risk means to seek exposure to gold for which the outlook is strong with market participants forecasting further increases which would add further value to the company.

If we apply current gold prices into perpetuity (US$1379/oz) then our target price would rise to 613p/share. Risks associated with mining we view as being relatively low as the company has been mining for a number of years gaining considerable experience, and with a strong balance sheet Medusa is well capitalised to support its current development and exploration programmes, Fairfax added.

http://proactiveinvestors.com/companies/news/9197/fairfax-calls-medusa-mining-a-high-quality-gold-producer-delivering-on-promises-9197.html