Primero Mining Posts Narrower-than-expected Loss In Q1; Backs Production View

(RTTNews) - Primero Mining Corp. (PPP, P.TO) reported Wednesday that its first-quarter net loss was $13.2 million or $0.08 per share, compared with net income of $3.6 million or $0.02 per share last year.

Adjusted loss was $7.8 million or $0.05 per share, compared with adjusted income of $1.1 million or $0.01 per share in 2015.

On average, nine analysts polled by Thomson Reuters expected loss of $0.08 per share. Analysts' estimates typically exclude special items.

Primero generated $50.5 million of revenue, 31% lower than $73.31 million last year, as a result selling 29% less gold equivalent ounces at a 3% lower average realized gold price.

In the quarter, the Company sold 38,781 ounces of gold at an average realized price of $1,156 per ounce and 1.35 million ounces of silver at an average realized price of $4.24 per ounce.

Primero's production was impacted by the deliberate focus on increased worker safety and the introduction of enhanced ground support standards at the San Dimas mine, leading to combined production of 36,158 gold equivalent ounces during the first quarter of 2016, 41% lower than last year.

Further, the company said that in April both the San Dimas and Black Fox mines achieved their targeted production rates in-line with the revised 2016 production guidance of between 230,000 and 250,000 gold equivalent ounces at all-in sustaining costs between $975 and $1,025 per gold ounce.