The Co-O gold mine in the Philippines posted record annual gold of 101,474oz at $189/oz from the processing of 266,613 tonnes of ore grading 12.63 grams per tonne of gold.

For the June quarter output was above budget at 25,233oz at $194/oz from the processing of 76,365t at 11.05gpt gold.

The head grade was slightly lower for the quarter as the company treated an increasing amount of development ore.

Meanwhile, the company started work on the $US70 million ($A63.7 million) plant expansion to 200,000oz per annum, due to be completed in 2013.

Earlier this week Medusa upgraded indicated and inferred resources to 6.34 million tonnes grading 9.6gpt gold for 1.96 million ounces of gold, a 30% increase.

During the June quarter the company sold 21,423oz gold at an average price of $1518/oz, while sales for the year were 96,217oz at $1371/oz, generating $131.9 million in revenue.

Medusa remains unhedged and closed the quarter with cash and bullion of $100.7 million.

Shares in Medusa dropped A10c this morning to $7.24.