Philippines-focused Medusa Mining saw its shares fall today after it detailed how hard it had been hit by a tropical storm and subsequent torrential rain.
Tropical storm Sendong and continued torrential rains in late December and January caused disruptions to the company's operations and adversely impacted gold production, it said.
As a result the company has revised its production guidance to 75,000 ounces for the financial year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The drop is gold production pushed its costs up to $242 per ounce, with the firm saying it expected this to drop to $230 per ounce for 2012 as production increases in the second half of the financial year.
In the three months to the end of December Medusa said it sold 10,000 ounces of gold at an average price of US$1,761 per ounce.
This compared with the previous quarter, where it sold 15,446 ounces of gold at an average price of US$1,587 per ounce.
The firm's shares fell almost 9% in early trading following the announcement.
-
Will a Santa Rally bring festive cheer to investor portfolios this year?Investors will be hoping for a seasonal stock market boost in December
-
ChatGPT turns two: how has it impacted markets?Two years on from ChatGPT’s explosive launch into the public sphere, we assess the impact that it has had on stock markets and the world of technology
