VANCOUVER — Mexico-focused producer Timmins Gold (TSX: TMM; NYSE-MKT: TGD) is riding positive momentum to start 2014 as the company continues to exceed analyst expectations and set production records at its San Francisco gold-silver operation 150 km north of Hermosillo in the state of Sonora. Timmins also completed a US$26 million bought deal financing in mid-February that should position it well to deal with upcoming capital requirements at the project.
The company finished 2013 strongly as it cranked out around 34,600 gold equivalent oz during the fourth quarter. The results contributed to annual production of 120,900 oz of gold equivalent at cash costs of US$717 per oz, which squarely beat stated guidance of around 118,000 oz.
Timmins spent the back half of the year upgrading San Francisco’s leach pads and crushing capacity, which resulted in annual and quarterly production jumps of 27% and 39%, respectively. The company also managed to effectively double San Francisco’s mine life when it boosted reserves by 43% to 91.2 million proven and probable tonnes grading 0.54 g/t Au for 1.6 million contained oz.
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