Medusa Mining under the weather

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.

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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.