Aug 2 Gold miner Primero Mining reported
a four-fold rise in quarterly profit on higher production and
grades at its flagship mine in Mexico and raised its production
forecast for the year.
Primero, whose only producing asset is the San Dimas
gold-silver mine, said it now expects to produce 110,000 to
120,000 gold equivalent ounces in the year. The company had
earlier forecast 100,000 to 110,000 gold equivalent ounces.
The company sells the bulk of the silver produced from San
Dimas to Silver Wheaton at well below market prices,
under agreements it inherited with the acquisition of the mine.
Primero bought the San Dimas mine from Goldcorp in
August 2010. The mine has already produced about 11 million
ounces of gold and 580 million ounces of silver, according to
the company's website.
Net income for the second quarter rose to $15.0 million, or
17 cents per share, from $3.9 million, or 4 cents a share, a
Revenue rose 40 percent to $57.1 million.
Primero said production rose 20 percent to 33,600 gold
equivalent ounces in the quarter.
Shares of Primero, which has a market value of about C$305
million, closed at C$3.48 on Wednesday on the Toronto Stock