By Maximilian Clarke
The prospect of a continued rise to the price of gold throughout 2012 has seen the Philippines-focused Medusa Mining (LSE: MML) company singled out as The Share Centre’s ‘Share of the Week’.
Commenting, Graham Spooner, The Share Centre’s investment research analyst, explains his choice:
“Gold producer Medusa focuses solely on the Philippines. It has recently been concentrating on the development of its existing mine, which now appears to be paying dividends, as the company has increased its forecast production allied to low costs. The share price has been very volatile due to the falling gold price and tropical storm that hit infrastructure in the Philippines limiting ore haulage. However, it has risen recently on the back of the gold price showing signs of recovering.
“Medusa’s proven resources and producing gold mine is attractive for investors. Growth seekers will be pleased to hear the miner is also looking to expand by exploring new areas and carrying out feasibility studies.
“Investors with the gold bug may be interested in this low cost mining opportunity that has proven resources. However, this is a high risk investment as there is no diversity within the stock so the share price would suffer should we see a negative run on the price of gold. Although the company hopes to pay dividends sometime in the future, it is currently only attractive to those investors seeking growth”
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