Timmins Gold (TSX:TMM; NYSE MKT: TGD), which recently settled a proxy fight with dissident shareholder Sentry Investments, reported a second quarter profit of US$3.2 million, or US2¢ per share, double the amount earned a year ago, but below the consensus estimate of US4¢ per share.
The year-over-year increase in earnings resulted primarily from higher metal revenues as the junior sold more ounces at a slightly higher average realized gold price.
Timmins Gold cranked out 32,932 oz of gold from its sole producing asset, the San Francisco heap leach gold mine in Mexico, and sold 33,000 oz at an averaged realized price of US$1,284 per oz for US$42.4 million in revenue. This compares with 28,024 oz produced and sold at US$1,253 per oz for US$35.1 million, a year ago.
Higher production followed an increase in throughput and implied recovery, offsetting a 20% year-over-year drop in grade, notes Cowen and Co. analyst Adam Graf.
Read the complete article at NorthernMiner.com/news/timmins-gold
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