Mexico-focused Primero Mining Posts 3Q Profit

Primero Mining posted a third-quarter profit, helped by strong gold and silver prices.

In September, the Mexico-focused gold miner cut its production outlook for 2011, hit by a month-long strike at its San Dimas mine there and lower-than-expected gold grades.

Toronto-based Primero reported the third quarter net income at $35.1 million, or 40 cents a share, compared with a loss of $35.6 million, or 68 cents a share, last year.

The company sold about 19,660 ounces of gold at an average price of $1,668 per ounce. In the quarter, the prices rose more than a third from last year.

The company, which sells the bulk of the silver produced from San Dimas at well-below market prices under agreements it inherited with the acquisition of the mine, said revenue more than doubled to $46.1 million.

Shares of the company closed at C$3.10 on Thursday on the Toronto Stock Exchange.