Primero Mining Hits New Yr Low As Cuts 2011 Production Outlook
Primero Mining Corp (P.TO) is down 12% and has hit a new year low of $3 with 2.2 million shares traded today after reportedly cutting its production outlook for 2011, hit by a month-long strike at a Mexico mine and lower-than-expected gold grades.
The Canadian miner now expects to produce 80,000-85,000 ounces of gold this year, lower than the 90,000-100,000 ounces it forecast earlier, Reuters reported. It maintained its silver production forecast at 4.5-5 million ounces.
Primero, which owns the San Dimas gold-silver mine in Mexico, said a mill workers' strike in April and lower ore grades in the mine's central block also means it might have to spend more for every ounce of metal extracted from the ground, according to Reuters.
Cash costs for 2011 are now expected to be $610-$630 per gold equivalent ounce, up 10% from its earlier budget, Reuters said.
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