LONDON (Alliance News) - Medusa Mining PLC Tuesday said it produced more gold in the third quarter of the year than in the previous quarter, although it missed production forecasts due to flooding in January.
The gold miner, with operations in the Philippines, said it produced 16,200 ounces of gold in the third quarter ended March 31, at an average head grade of 4.20 grams per tonne and cash costs of USD398 per ounce.
It said that gold production for the quarter was higher than the December quarter due to the continuous operation of its new SAG Mill, although it said that production was less than forecast due to disrupted production from flooding in January.
It also said that cash costs for the quarter were lower primarily due to increased gold production.
Medusa said the average gold price of USD1,299 was up on the previous quarter, but down on the corresponding quarter a year earlier, of USD1,630.
The group said that all mine shafts continued to operate during the quarter. It said that parts of the mine were flooded in January, due to unseasonal heavy rains, and some development headings that were temporarily stopped due to the flooding, have since been re-opened.
Its said that production continued on all levels during the quarter and more stoping ore will be mined and milled during the June quarter.
Despite the floods, it said underground development was able to be maintained at the target rate of 1,500 metres per month during the quarter.
Back in February, the group said its pretax profit halved in the first half of the year ended December 31, 2013 as revenues dropped due to lower production, falling gold prices and operational delays.
The company is also delisting from the London Stock Exchange.
Medusa Mining shares were down 10.5% sat 94.00 pence per share Tuesday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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