Toronto-listed Scorpio Mining Corp reported a quarterly profit helped by production ramp-up at its Nuestra Señora mine in Mexico, but missed market estimates compiled by Reuters, sending its shares to close just under 4% down.
Vancouver-based Scorpio reported a net income of C$3.3 million and strong cash flow from operating activities in Q2 2011 of $11,9 million as recovered silver equivalent ounces reached 1,548,174, an increase of 79% from 2010 and contained metals produced in concentrates jumped 92% to of 734,558 ounces.
Parviz Farsangi, President and CEO, reports: “We are very pleased to report another solid quarter of production and financial performance from Scorpio Mining’s Nuestra Señora operations. A robust operating cash flow allowed the corporation to eliminate its debt during the quarter, placing us in an ideal position to advance our stated growth initiatives, including process expansion and development of our existing assets.”
The Vancouver-based company says Nuestra Señora has proven to be a low-cost operation with strong cash flow. Production from Nuestra Señora is estimated to exceed 3.0 million silver equivalent ounces in 2011. The Nuestra Señora operation has a 20-year life with known reserves/resources in the district at current processing capacity.
Spot silver prices rose slightly to back above $40 an ounce on Friday, but was off a two-month high of $41.42 hit earlier this week.
Image is of the Nuestra Señora Mill Facility – Tailings dam.
