Medusa Mining

(MML:ln)

Medusa Mining the company that has suspended its dividend and suffered at its peril of the widely speculated gold price from bearish sceptics. Here's a summary as to why I disagree only slightly with Zak on selling down to 150p.

Personally I see the share price as a Buy preferably from the 170p area as I see a good support at 163p backed by the ftse decline and the gold price equilibrium found (If there is such a thing).

Medusa have reduced production and shut the divi as it intends to ramp up production significantly, Medusa announced:

70-80k Oz June 30th 2012 with divi reinstated after 18months

FY 2014 - 200k oz - $290

FY 2015 - 200k oz - $230

FY 2016 - 400k oz - $230

The work on the new mill which is the catalyst to the ramp up in its production is said to be on schedule June-July 2013. Clearly the goldie has the diversity to offer real med/long term upside value, This is perhaps a unusual one for me however the sector has a few with there stall well set out.

Start Buying into the weakness.


Doc

* 03-05-13 Brokers reduce there target on MML from 416p to 333p. On the 30-04-13 SP Angel reduced 585p to 505p both still recommending a Buy.

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(These are but opinions derived from my own experiences and thoughts and do not adopted as statement of fact)