Improvements on cards for Medusa

ANOTHER modest operational year is tipped at Medusa Mining’s Co-O gold operation in the Philippines after recording a “statutory after tax profit” of $US44 million last financial year.
Improvements on cards for Medusa Improvements on cards for Medusa Improvements on cards for Medusa Improvements on cards for Medusa Improvements on cards for Medusa

That profit came on the back of production of 108,529 ounces at all-in-sustaining-costs of $999 per ounce, with 105-115,000oz forecast to be produced in the current 2017 year at AISC of between $1000 and $1100/oz.

Medusa suggested output in the current year would be back-end loaded.

It also suggested better days were ahead.

"The Co-O mine remains hoist capacity constrained until the E15 Service Shaft is completed by June 2017," the company said.

"Once completed the Service Shaft will take over 100% of manpower and materials movement, freeing up the L8 Production Shaft to be a 100% dedicated skipping shaft.

"For the next quarter the mine ventilation upgrade and mine dewatering project will be close to completion.

"Once completed we will start seeing a reduction in the sustaining capital project cost component of the AISC's, mostly driven by the Service Shaft completion in June 2017."

Earlier this month new Medusa CEO Boyd Timler indicated the Co-O operation had the future potential to be a sustainable circa-130,000oz per annum producer with AISC in the order of $800/oz.

While Medusa has a processing plant with capacity of about 900,000tpa, tonnes milled last year totalled less than 600,000t.

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