Orosur Mining reduces costs and boosts profit in first quarter

South America-focused gold producer, developer and explorer Orosur Mining announced its results for its 2017 first quarter to 31 August on Monday.

The AIM-traded company reported gold production of 9,950 ounces, on the higher end of the company’s 35,000 to 40,000 ounce guidance for the full year, and rising from 12,471 ounces in the same period last year.

Cash operating costs were $693 per ounce, significantly beating guidance of between $800 to $900 per ounce, and significantly improving from$954 per ounce in the first quarter of 2016.

All-in sustaining costs reduced to $989 per ounce, down from $1,166 per ounce year-on-year.

The firm said it has maintained AISC below $1,000 per ounce for the last three consecutive quarters.

Orosur posted a net profit after tax of $2.8m for the quarter, against a loss of $1.7m a year ago, with cash generated from operations rising to $4.8m, from $0.2m.

Total cash balances stood at $5m at period-end, from $4.3m in Q1 2016.

“We are very pleased to announce a strong quarter with cash operating costs below $700 per ounce, AISC below $1,000 per ounce, net profit [of] $2.8m and cash from operations of $4.8m,” said CEO Ignacio Salazar.

“The commitment, additional work load and the tough decisions the team has had to assume during the past year has positioned the company well to take advantage of gold price improvements this year and we are delighted to be seeing the benefits.”

Salazar said he believes the financial results “speak for themselves”, and taken together with the exploration and development progress the company reported last week, suggest an exciting time for the company.

“That said, we remain as pro-active as ever and are committed to making the most of the current position of the company for the benefit of our shareholders and team.”