27th Feb 2014 12:05
LONDON (Alliance News) - Medusa Mining Ltd Thursday said its pretax profit halved in its first half as revenues dropped due to lower production, falling gold prices and operational delays.
The gold miner, with operations in the Philippines, said its pretax profit fell 55% to USD13.0 million for the six months ended December 31, 2013 from USD28.6 million the previous year as revenues fell 35% to USD34.0 million from USD52.4 million in 2012.
The company said the fall in its revenue was caused by lower gold production and average selling prices during the period, coupled with delays in operational improvements and the impact of extreme weather.
Medusa said its gold production fell 20% in the half year to 26,089 ounces and its average gold price received fell 22% to USD1,304 per ounce during the period.
The company said it experienced problems during the period trying to get its new Co-O SAG Mill fully operational, after delays due to the installation of faulty powercells, which were repaired and re-installed in December.
Medusa said the SAG mill operated for the rest of December without any interruptions and is currently running at approximately 2,000 tonnes per day.
The company said it was also hit by extreme wet weather during December and January which has caused damage to the haul road between the mine and mill, with a works program in place to repair the haul road after the wet season as well as to develop alternative road access.
Medusa continued its policy of paying out no dividend for the half year period.
Medusa Mining shares were down 1.5% to 114.75 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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