Primero can look forward to ‘better times ahead,’ says BMO

VANCOUVER — Primero Mining (TSX: P; NYSE: PPP) is a favoured mid-tier gold producer amongst analysts, and it isn't hard to see why following a strong second quarter marked by competitive operating costs and signs of operational improvement across its mine portfolio. The company has engineered a turnaround at its Black Fox underground operation in Ontario, and reported that a mill expansion at its San Dimas mine in Mexico is ahead of schedule and below budget.

Primero announced second quarter production of 62,490 gold equivalent oz, revenue of US$67.4 million, and operating cash flow before changes in working capital of US$22.6 million. Black Fox chipped in 18,362 oz of gold, while San Dimas accounted for 36,500 oz of gold and 2.15 million oz of silver.

The company is transitioning Black Fox from away from a lower grade open pit mine to a higher grade underground operation. Primero reported that its underground ramp-up achieved roughly 700 t/d average throughput in July, and it expects to achieve a 1,000 t/d production rate by the end of the third quarter. Black Fox total cash costs during the quarter dropped 24% year-on-year to $762 per oz, while production was up 27% compared to the first quarter.

Read the complete article at NortherMiner.com/news/primeroc