Orosur back in black

Tuesday, October 18, 2016

Santiago-based Orosur Mining reported net income of US$2.76mn for the first quarter of its fiscal 2017, compared with a net loss of US$1.73mn the previous year.

The Uruguay-based miner, in a statement, said revenue was down 12.5% to US$12.7mn on lower production and despite a higher realized gold price.

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Orosur's fiscal 1Q17 ended August 31.

Production for the three-month period was 9,950oz of gold, down 20.2% year-on-year, while the average gold price received was US$1,324/oz versus US$1,147/oz a year earlier.

All-in sustaining costs (AISC) were US$989/oz from US$1,166/oz in the year-ago period.

The miner said it has maintained AISCs below US$1,000/oz for the last three quarters.

Orosur said it expects production for FY17 to be between 35,000oz and 40,000oz at operating cash costs of US$800-900/oz.

The company expects to have higher unit costs in its fiscal second quarter as underground staff and equipment are transferred from the Arenal underground operation in its final months of production to the San Gregorio West underground development, expected to start production by end-November.

Both pits are part of San Gregorio in Uruguay, the only operating gold mine in the country.