Mexico-focused Timmins Gold Corp. (TSE:TMM) said Thursday that metal revenue jumped 49 percent in the nine months ended December 31, as the company produced and sold more gold.
The company, whose period ended December 31, said earnings rung in at $20.8 million, or 15 cents a share.
revenues grew 49 percent to $90.8 million from $61.1 million in the
same prior year nine month period as average gold prices in the period
Gold production went up 18 percent to 55,487 ounces
of gold. It sold 56,777 ounces of gold during the latest period up from
47,031 ounces last year.
Production costs rose to $608 per
ounce compared with a year-earlier figure of $526 per ounce. The average
realized gold price was $1.599 per ounce.
In a statement,
Timmins Gold chief executive Bruce Bragagnolo, said: "2011 was an
extremely successful year for the company on several fronts. The company
aggressively reinvested cash flow from operations in a highly
successful drill program over the previous 18 months, resulting in a 71
percent increase in the proven and probable reserves, along with an
expansion of the crushing unit from 12,000 to 18,000 tonnes per day."
company said it will carry on to self fund further expansions over the
ensuing year to 32,000 tonnes per day, which will bolster production to
about 130,000 gold ounces a year.
In addition, the company
wrapped up a drill program of 205,000 metres which increased measured
and indicated resources to 1.57 million gold ounces and inferred
resources to 1.35 million ounces of gold, it added.
Mexican-focused miner also said on Wednesday it purchased an extra
700-hectares at La Chicharra for leach pad expansion and received
permits for the expansion.
Last November, the company filed an updated technical report for its San Francisco gold mine located in Sonora, Mexico.
proven and probable NI 43-101 mineral reserves at San Francisco were
72.4 million tonnes at a grade of 0.572 grams per tonne gold with 1.3
million contained ounces. The mineral reserves are based on a gold price
of $1,100 per ounce.
Amongst the highlights of the report, total
gold production was projected at 810,065 ounces from 2011 to 2017, with
base case life of mine cash costs of $633 per ounce and a life of mine
operating profit of $455 million.
Timmins Gold, which owns the
past producing San Francisco gold mine in Sonora, Mexico, has forecast
production at a rate in excess of 100,000 ounces of gold per year.
Shares of Timmins Gold closed Wednesday at $2.33 apiece in trade on the Toronto Stock Exchange.