RPT-UPDATE 1-Minefinders Q2 production up sequentially
Wed Jul 8, 2009 10:43am EDT
(Repeats for additional subscribers)
* Q2 gold production up 65 pct sequentially
* Q2 silver production rises 49 pct sequentially
* BMO starts Minefinders with "outperform" rating
July 8 (Reuters) - Minefinders Corp Ltd (MFL.TO: Quote, Profile, Research, Stock Buzz) (MFN.A: Quote, Profile, Research, Stock Buzz) reported sequentially higher gold and silver production for the second quarter and said it expects production to continue rising through the third and fourth quarters as the volume of ore increases.
Gold production jumped 65 percent sequentially to about 23,336 ounces, while silver production grew 49 percent to about 419,946 ounces in the second quarter.
Quarterly sales proceeds were $26.0 million, compared with $16.1 million in the previous quarter.
The company said it sold 22,108 ounces of gold at an average price of $937 per ounce and 369,532 ounces of silver at $14.19 per ounce.
Separately, BMO Capital Markets started coverage of Minefinders with an "outperform" rating, saying execution of Dolores ramp-up through the remainder of 2009 and delivery of growth plans is expected to position the company as "a premier growth company among junior producers".
Minefinders began commercial production at the Dolores gold and silver mine in Mexico on May 1.
On May 7, the company had said the mine was expected to produce more than 1.7 million ounces of gold and 64 million ounces of silver over the initial 15-year mine life.
BMO analyst Andrew Kaip has a price target of C$12 on the shares of the company.
Minefinders shares were down 16 Canadian cents at C$8.30 in morning trade on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Himani Sarkar)
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