14th Jan 2015 09:59
LONDON (Alliance News) - South America-focused gold miner Orosur Mining Inc on Wednesday said its gold production fell in the second quarter and cash operating costs rose, though it said both movements were in line with its expectations.
Orosur said its gold production for the second quarter ended November 30, 2014 was 12,854 ounces, down from 14,829 a year earlier. Cash operating costs for the company increased to USD984 per ounce, up from USD761 per ounce last year.
Orosur said the production decline and costs increase were both in line with its guidance, and said it remains on track to meet its full-year production target of 50,000 to 55,000 ounces at an average cash operating cost of USD850-950 per ounce.
The group said its net loss after tax was USD1.2 million for the quarter, compared to a USD3.5 million after tax net profit last year.
Its average gold sales price for the quarter was USD1,212 per ounce, down from the USD1,306 per ounce reported last year.
"Orosur has once again delivered quarterly results in line with its guidance. The company anticipated a quarter with higher unit costs pursuant to the mine plan and this, coupled with the weakness in the current gold price environment, has impacted the company during the quarter," said Orosur Chief Executive Officer Ignacio Salazar.
Orosur shares were down 4.7% to 10.25 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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