TORONTO (miningweekly.com) Junior Primero Mining posted a profit in the fourth quarter, after revenues increased significantly, and plans to list in the US in the coming months, CEO Joseph Conway said on Thursday.
The company, which earned $1,8-million in the three months ended December 31, bought the San Dimas mine in Mexico in August last year, from Canadian gold major Goldcorp.
Primero is probably looking at April or May for a US listing, which should help improve the liquidity of its shares, Conway told analysts on Thursday.
Production in the fourth quarter rose 14%, to 24 800 gold-equivalent ounces, and the company increased revenue to $41,4-million, on the sale of 30 500 oz.
Cash costs increased to $524/oz of gold on a by-product basis, compared with $514/oz in the third quarter.
Conway said a key focus this year will be lowering costs.
The company expects production will increase 15% in 2011, to between 110 000 and 120 000 gold-equivalent ounces, at cash costs of between $550 and $570 a gold-equivalent ounce.
The firm is targeting a further 25% to 30% increase in gold production from 2011 to 2012, and aims to have output from San Dimas approaching 200 000 oz of gold-equivalent in 2013, Conway said.
That works out to around 130 000 to 140 000 oz of gold and 8-million to 8,1-million ounces of silver, and represents a near doubling of gold-equivalent production from current levels.
Beyond that, the firm will also look at potential acquisitions to get it to a targeted 400 000 oz/y over the next three years or so.
Primero shares fell three percent on Thursday, to C$4,00 apiece by 15:59 in Toronto.
