Primero Mining Corp posted a quarterly profit that came as a surprise. The profits are contributed to higher production and also reflect the first full quarter ownership of a new mine in Mexico.
The Canadian precious metals producing company said that it would be increasing its underground exploration and development activities in 2011.
The company also expects a higher production in 2012 of almost 25- 30 % compared to 2011. This is because it expects production contribution from the San Dimas mine in Mexico which is a recent acquisition of the company. Primero Mining Corp bought the San Dimas mine from Goldcorp Inc last June.
Mr. Joseph F. Conway, President and Chief Executive Officer of Primero Mining Corp said that revenues increased significantly during the fourth quarter, driven by higher production and reflecting Primero's first full quarter of ownership of San Dimas.
The company also plans to seek a US listing later this year. The capital expenditure for the current year for the company will triple to $ 31 million as per company estimates. However the dramatic rise in prices for precious metals such as silver and gold will also contribute to a higher cash flow for the company in 2011. So the company is looking forward to a good year ahead.