VANCOUVER (miningweekly.com) – Gold producer Leagold Mining has reported its first ever net profit since it took control of the Los Filos mine, in Mexico, in April.

The Vancouver-headquartered company reported net earnings of $317 000, or nil per share, compared with the $7.63-million net loss, $0.06 a share, it suffered in the second quarter.

Leagold generated adjusted net earnings after tax of $5.2-million, which were somewhat lower when compared with the $6.4-million profit in the second quarter.

During the third quarter, Leagold generated total revenue of $60.9-million, compared with the second-quarter’s $67.5-million, while earnings before interest, taxes, depreciation and amortisation came to $15.1-million, an improvement compared with $14.2-million in the July quarter.

Earnings from mine operations improved to $8.9-million in the third quarter, compare with $8.5-million in the second quarter.

Gold sales were 47 263 oz, at an all-in sustaining cost (AISC) of $993/oz sold. This is attributable to the increased ore output from both the openpit and underground operations, as well as the initial impact from heap leach process efficiencies implemented in the second and third quarters.

Leagold is optimising the Los Filos operations with a focus on changes that result in significant and sustainable cost savings. The installation of the agglomerator to improve gold recoveries and the extension of the conveyor to improve ore delivery to the heap leach are both on schedule, with expected completion slated before year end and operations starting in the first quarter next year.

As at September 30, Leagold had cash and cash equivalents of $52.9-million.

Leagold has continued to advance the Bermejal Underground expansion project with ongoing exploration drilling programmes and it has made a start on the portal and ramp development. During the quarter, Leagold increased the Bermejal Underground measured and indicated mineral resources by 94% to 1.97-million ounces and added 820 000 oz to the inferred resource category.

As previously guided, the Los Filos Mine remains on track to produce between 95 000 oz and 110 000 oz of gold, at an AISC of $875/oz to $925/oz for the second half of 2017.