The Medusa Mining Limited (ASX: MML) share price has climbed today following the release of its quarterly update.
At the time of writing, the mining outfit's shares are up 1.85% to 82 cents. In contrast, the All Ordinaries Index (ASX: XAO) is up 0.6% to 6,424 points.
Medusa is an Australian-based gold producer focused on growth in the Asia Pacific region. The company is currently operating in the Philippines, with its flagship project at the Co-O underground mine.
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How did Medusa perform?
For the period ending September 30, Medusa reported a strong performance, eclipsing previous quarterly results.
Gold production increased 29% to 28,363 ounces at an average head grade of 7.56 grams per tonne (g/t). In the prior quarter, gold production stood at 21,947 ounces mined with an average head grade of 6.59 g/t of gold.
Medusa sold gold at an average realised price of US$1,927 per ounce, a slight jump of 10% due to the rising spot price of gold.
Operating cash costs reduced 12% to US$615 per ounce. All-in sustaining costs (royalties and local business taxes) came in at US$1,079 per ounce.
Total underground development of 8,887 meters was reached for the quarter, a 10% increase on the June period.
Underground resource drilling expanded to 10,986 meters, with reserve drilling at levels 4, 9 and 10 totalling 5,762 meters from 10 holes. High-grade results returned from multiple strikes including 24.8 g/t of gold with a 2.3-meter intercept.
Total cash and cash equivalents on metal account at the quarter end increased by 37% to US$64.7 million, with no long-term debt.
Medusa's annual general meeting is scheduled for 29 October. Executive director Raul Villanueva has advised he will be not standing for re-election to the board.
FY21 guidance
For the current financial year, Medusa expects to have a production guidance between 90,000 ounces and 95,000 ounces of gold. All-in sustaining costs are anticipated to average around US$1,200 to US$1,250 per ounce of gold produced.
The company said that the strong September quarter result had put it marginally ahead of plan in production and costs.
Is the Medusa share price a buy?
The Medusa share price has taken shareholders on a rollercoaster ride over the last five years. The miner's shares have reached lows of 28 cents and recent multi-year highs of $1.06, representing a cyclical trend.
As the company is reliant on the rising spot price of gold to become profitable, I think investors may prefer to look to more established businesses for gold exposure.
