Orosur Mining Inc.'s gold production in the first quarter of fiscal 2012 fell from the year-earlier period on a lower grade of ore, but higher prices helped lift net income 25 percent, the company said Thursday.
For the three months ended Aug. 31, gold production fell to 12,488 ounces from 12,937 ounces, down 3.5 percent, and the cash operating cost rose to $944 per ounce from $799 per ounce, which Orosur attributed to inflation in Uruguay.
The Montevideo-based miner reported net income rising to $4.41 million from $3.53 million. The average price for gold received was $1,612, up from $1,216.
Forecast gold production for the 2011/2012 financial year remains in the range of 57,500 to 60,000 ounces at an operating cash cost per ounce of approximately $180 per ounce, the company said in a statement.