Hi all

Has anyone got any views on Medusa Mining listed on AIM and the ASX? They are targeting production of 60,000 oz of gold this year and 100,000 oz next year. Their production costs are just over $200 per oz, which seems incredibly low to me. With gold at current levels and being unhedged they are on a PE of 6.

The recent drilling report suggests a decent resource upgrade (they currently have 1.2m oz), will be announced in July. Management hold a good chunk and Sprott Asset Management recently took a stake. The one slight concern I have is they are in the Philippines.

I’d appreciate people’s thoughts on this as the stock looks undervalued imo.

Jim

Good company, but everyone knows it. there are cheaper.

Any suggestions? I like the look of Olympus Pacific, which looks very cheap for an emerging producer

I'm not really buying at the moment. I have my eye on Hawthorne( CA"HGC)

Thanks I'll have a look at Hawthorne. Are you waiting for a pull back in the gold price or correction in the mining stocks?

Yes. Gold seems to be rising and falling with indices, just like last year. If we get falls in indices, I expect gold but especially gold stocks to be taken down with them.

I see - & wonder if this will perk up HGC - not one I hold mind you

And I thought Proactive were a stock picking outfit

http://www.marketwire.com/press-release/Ha...GC-1006457.html

Hawthorne Gold Signs Contract with Proactive Investors Limited
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2009) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC)(PINK SHEETS:HWTHF) announces it has entered into an agreement with Proactive Investors Limited ("Proactive"), to provide marketing services including shareholder communications for the Company for a period of 12 months, commencing June 15, 2009. The agreement will include banner advertising, company editorial snapshots on a quarterly basis, coverage of material news releases to the readers and subscribers to Proactive, dissemination of Proactive news coverage and articles through other newswires and news services, MP3 audio interviews and a profile of the Company on the Proactive website. Proactive will receive a fee of $8,000 for the 12 month period.

The agreement is subject to the acceptance of the TSX Venture Exchange. The Company and Proactive are at arm's length.

Medusa Mining reveals record breaking first half, net profit up 201%

In the six months ended 31 December 2009, Medusa Mining Limited (ASX, AIM: MML, TSX: MLL) achieved new company performance records, reporting half-year net profit of US$28.3m, representing a 201% increase from US$9.4m in the corresponding period a year earlier. Revenues grew by 161% to US$41.3m. The emerging gold miner’s record-breaking performance was driven by both increased gold production, lower costs and higher received gold prices, it said.

Medusa produced a record 39,162 ounces of gold from its Co-O mine in the Philippines during the half-year, representing a 105% increase from the same period in 2008. Production averaged grades of 16.65 grams per tonne (gpt) gold, compared to 12.71gpt in the six months to 31 December 2008. Average cash costs were reduced by 16% to US$189 per ounce during the period, compared to USS$225 in 2008.

"The company has regularly broken its production targets on a quarterly basis and I am extremely pleased with the total of 39,162 ounces for the half year”, Medusa MD Geoffrey Davis commented. “This record production, coupled with a healthy gold price received, has contributed to a record half-yearly net after tax profit figure of US$28.3 million. Furthermore, the very low production costs of around US$190 per ounce should be highlighted”.

For the first half, Medusa achieved 228% earnings growth to US$31.5m, equating to basic earnings per share (EPS) of US$0.16, representing 158% growth compared to the same period previously. Furthermore, the improved revenues and earning have resulted in a substantial improvement to Medusa’s cash position. The company stated that it is currently debt free and had a cash balance of US$35.5 million at 31 December 2009, up 788% from the US$4m at 31 December 2008.

"Remarkably this has all been achieved through a period of intense re-development of the Co-O mine and associated infrastructure, and with the expansion programme now complete, our team can concentrate on optimising current production levels at the Co-O mine”, Davis added.

Medusa said that Phase II of the expansion programme is on schedule, and the program’s incremental benefits are flowing through as evidenced by the record gold production of 39,162 ounces for the last six months. Phase II aims at bringing Co-O’s annualised production to 100,000 ounces.

Proactive investors - Medusa Mining

Here's the interim financial results in full Medusa Mining - interim financial results.

The Full Extent Of The Upside At Medusa Mining’s Co-O Mine In The Philippines Is Still Widely Unappreciated

By Our Man in Oz

Miners love them. Investors are never quite sure. The point of contention? - epithermal veins, those sometimes gold-rich seams of mineralised material which splay off in all directions in the geological aftermath of an ancient, and explosive, volcanic event. In places, the veins yield astonishingly rich grades of gold, but tracking them is the devil’s own job because nature rarely works in a straight line. Understand the tricky nature of “vein mining” and you start to understand why Medusa Mining took a while to catch the eyes of all but the most skilful stockbrokers. One money man did grasp the potential of Medusa’s Co-O mine in the Philippines early on was London broker, Bob Catto. Bob’s not only been a keen follower of the triple-exchange listed Medusa (AIM, ASX and TSX), but has even had a little bit of those far-away islands named after him.

The Catto 1 and Catto 2 veins are not big compared with some of the other 33 veins identified so far at Co-O. But they do jump out to the eye of a casual observer like Minesite’s Man in Oz as a good starting point for a conversation about what exactly Medusa has got at Co-O. So Minesite’s man duly called on Medusa’s management this week for a first-hand explanation of how the company has managed to become one of the gold sector’s top performers, with a share price that has soared from A$1.32 to...

Minesite - Medusa Mining

Good to seem Medusa is a new company recommendation in International Speculator - should raise awareness in North America

Louis James who writes the publication for Casey, just introduced the company to his subcribers, with a history of MML and spoke of its top flight mangement team, but felt the co was nearly fully valued for now, but with a great future, kind of buy the first tranche, but don't chase it, because MML doesn't trade very much as of yet on the TSX, so it's not very liquid.
James felt if you could buy it here, because of the volume on the ASX it would be okay to chase it a little.
James felt the number of ozs still an unknown, but the future was great, but still no one has drilled very deep as of yet, however he made the comment that they have been very frugal in spending money, and have accomplished quite alot in a short time.