Orosur returns to black in fiscal Q2

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Monday, January 16, 2017

Santiago-based Orosur Mining reported net income of US$942,000 for the second quarter of its fiscal 2017 ending November, compared with a net loss of US$870,000 the previous year.

Net profit for its fiscal first half was US$3.7mn versus a net loss of US$2.6mn in the year-ago period, the company said in a statement on Monday.

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The Uruguay-based miner said FQ2 revenue was up 5.64% to US$10.8mn on higher realized gold prices, despite lower output.

Production for the three months was 6,852oz of gold, down from 8,172oz year-on-year, while the average realized gold price was US$1,252/oz versus US$1,100/oz.

All-in sustaining costs (AISC) were US$1,345/oz compared with US$1,095/oz, which the company attributed to additional development capex related to the construction of the underground mine at its San Gregorio operation in Uruguay.

Transition from the Arenal underground mine to the new San Gregorio West underground operation led to an increase in capex to US$3.8mn from US$900,000 in fiscal 2Q16.

Operations at San Gregorio West began November 24 and were completed on budget and on schedule, the company said.

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 said that during its fiscal second half it plans to accelerate exploration in open pit targets around the San Gregorio plant after receiving the permits, and to drill seven holes for 1,600m in the Arenal-SG corridor to test the concurrence of "a relatively large deposit."

Orosur is finishing the geological model of its Anzá gold project in Colombia to determine the exploration potential, the results of which are expected shortly, according to the statement.