Orosur widens loss on lower production, weak price

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Thursday, October 15, 2015

Santiago-based Orosur Mining produced 12,471oz of gold in its fiscal first quarter 2016 ended August, down from 13,684oz the year before.

Cash operating costs rose to US$954/oz from US$945/oz, Orosur said in its latest financial results. All-in sustaining costs (AISC) were US$1,166/oz, down from FQ15's US$1,182/oz.

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Orosur said production and cash operating costs for the quarter are in line with the company's mine plan and previous guidance.

The company reported a net loss of US$2.44mn compared to a loss of US$1.33mn in the year ago period, due to lower production and a decline in the average realized gold price - US$1,147/oz compared to US$1,302/oz.

Revenue was down 12.5% to US$14.5mn.

Orosur said that as a result of the lower gold price scenario, it has begun implementing a strategic plan to lower costs and make production more profitable, with the goal of lowering all-in sustaining costs below US$1,000/oz.

San Gregorio in Uruguay is Orosur's only producing mine and the only operating gold mine in the country. The company also holds exploration assets in Chile and Colombia in addition to other properties in Uruguay.