Primero Mining (TSX: P, Stock Forum) had reason to break out the champagne when the company announced its preliminary Q4 2014 and year-end operating results along with its 2015 guidance figures today.
According to the news release, the company produced 62,000 gold equivalent ounces during Q4, making record year-end totals of 225,100 gold equivalent ounces, an increase of 57% over 2013 and within the company's 2014 guidance range.
The company expected further production growth in 2015 of approximately 20% over 2014 to between 250,000 and 270,000 gold equivalent ounces.
Low cash costs and all-in sustaining costs in 2014 were estimated at US$687 per gold equivalent ounce and US$1,217 per ounce respectively. Cash costs are expected to decrease in 2015.
Capital expenditures in 2015 are also expected to drop by 27% to US$86.0 million.
Company President and CEO, Joseph F. Conway, commented on the landmark year, “With a backdrop of extreme market volatility in 2014, Primero continued to focus on building a sustainable business that generates cash flow and solid returns for all our shareholders, whatever the commodity price environment.”
He went on to illustrate, “We successfully increased our production by close to 60% and maintained costs within our expected range. During 2014 the Company expanded the San Dimas mine capacity by 16% to 2,500 tonnes per day, increased its gold reserves by 32% and improved its gold reserve grade by 23% - all significant in creating value from our platform asset.”
Then added, “We also announced that the second phase of the San Dimas expansion will commence this year. We challenged our operating team with the optimization of Black Fox, another underground mine in an excellent jurisdiction with very promising exploration upside.”
And finally concluded, “Combined, these efforts will create a more profitable Primero in 2015 and beyond. Our management team remains focused on building a strong intermediate gold producer with a portfolio of high quality, low cost precious metals assets in the Americas.”
Primero Mining was in the news recently when the Toronto-based company provided an exploration update on San Dimas back in the middle of November.
Shares gained 6.43% on the news to $5.96 per share.
Currently there are 161.6m outstanding shares with a market cap of $962.9 million.