Business Description:
Medusa Mining Ltd (MML) is a copper and gold production and exploration company with activities concentrated in the Philippines.

Strategy Analysis:
MML's strategy is to become a mid tier 300,000 to 400,000oz per year, low cost gold producer. The Company is currently expanding its high grade Co-O Mine operations to increase its production capacity to 100,000oz per year, and is conducting near mine exploration to assess the possibilities of further expansion to 200,000oz per year. Medusa Mining reported NPAT up 68% to US$110.36m for the year ended 30 June 2011. Revenues from ordinary activities were US$149.59m, up 58% from last year, due to increased gold production and a higher price received on sale of gold. The company is an unhedged gold producer and received an average gold price of US$1,371 per ounce from the sale of 96,217oz of gold for the year. Diluted EPS was US$0.585 compared to US$0.377 last year. Net operating cash flow was US$96.50m compared to US$38.72m last year. The final dividend declared was 5.0 AU cents, taking the full year dividend to 10.0 AU cents compared with nil last year. The company produced a record 101,474oz of gold for the year, an increase of 13% from the previous year's production, at an average recovered grade of 12.63g/t Au.