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Primero Mining swings to adjusted Q1 loss

Primero Mining swings to adjusted Q1 loss

Photo by Bloomberg

8th May 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Precious metals producer Primero Mining on Thursday said it had swung to an adjusted first-quarter loss of $2.9-million, or $0.02 a share, despite gold-equivalent output rising 31%.

Wall Street analysts had on average expected earnings of nil per share.

Toronto-based Primero said the adjusted loss included higher stock-based compensation as a result of a 71% appreciation in its share price during the three months ended March 31, an operating cash flow before working capital changes of $6.5-million, or $0.05 a share, and a loss from operations at the Black Fox mine, located in the Timmins gold district of Ontario, which it acquired in March through the $220-million friendly takeover of rival Brigus Gold.

The company reported a net loss of $9.1-million, or $0.07 a share, compared with net income of $17.3-million, or $0.18 a share.

Revenues in the period totalled $48.3-million as a result of selling 30 583 oz of gold at an average realised price of $1 295/oz, and 1.34-million ounces of silver at an average realised price of $6.44/oz. This compared with revenue of $46.3-million for the same period in 2013, from selling 24 736 oz of gold at an average realised price of $1 626/oz and 1.48-million ounces of silver at an average realised price of $4.12/oz.

Overall, Primero’s output increased to 39 758 gold-equivalent ounces, comprising 32 278 oz of gold and 1.5-million ounces of silver, compared with 27 656 gold-equivalent ounces in the same period of 2013.

As at the end of the period, Primero had $86.4-million cash in the bank, with total debt including finance leases of $112.7-million.

Primero maintained its production guidance of between 225 000 oz and 245 000 oz of gold equivalent, an increase of up to 70% over 2013. Cash costs for 2014 were expected to be in the range of $650/oz to $700/oz of gold equivalent.

Edited by Creamer Media Reporter

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