28th May 2015 10:23
LONDON (Alliance News) - Arian Silver Corp Thursday said it has begun producing and selling its first concentrate which will help financial results from the next quarter, and said its swung to a net profit in the first quarter of 2015.
The silver miner said it made a USD1.9 million net profit in the first quarter of 2015, swinging from a USD1.1 million loss in the same period a year earlier. The net profit was primarily due to a fair-value adjustment relating to a derivative liability.
"Arian Silver has continued to deliver on its objectives during 2015. The refurbishment of our processing plant (at the San Jose project in Mexico) was completed successfully and it is now in a commissioning phase with first silver-lead concentrates having been produced," said Chief Executive Jim Williams.
During the first quarter, the company commenced the phased commissioning programme of La Tesorera processing plant which saw first concentrate produced from the first of two flotation circuits. The production and revenue received from first concentrate will be recognised in the company's second quarter results.
"Looking ahead, I expect to report on exploration results and slightly longer-term, on the ramp-up of production throughout the rest of the year and into 2016," said Williams.
Arian is currently commissioning its recently refurbished processing plant. This, together with the planned ramp-up to maximum processing capacity of 1,500 tonnes per day over the coming months, and achievement of consistent production thereafter will "see the company firmly on the path to achieving its long-term strategy," it said.
"The plant is projected to deliver substantial cost savings against the company's previous toll milling operations. With reduced operating costs, the company should enjoy significantly higher operating margins than would have been achieved in the past under the same conditions," said Arian.
Arian shares rose 1.8% to 31.05 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AGQ.L