LONDON (ShareCast) - Orosur Mining, the South American-focused gold producer, developer and explorer, reported a $5.1m net profit after tax for the financial year ended 31 May, the company announced on Monday.

The net profit is a significant improvement on the $14.8m loss the company had registered in the same period in 2013 and it was achieved largely thanks to a 28% reduction in cash operating costs, which beat upgraded guidance.

"We have been able to generate operating cash flow of some $24m, 13% more than we generated in 2013 despite a significantly lower gold price environment," said Orosur chief executive Ignacio Salazar.

"Whilst implementing numerous programmes to improve operations during a year of significant change for Orosur, we successfully executed the exploration and development work necessary to extend San Gregorio´s mine-life and grow our reserve base."

Gold production reached 60,271oz, ahead of upgraded guidance that estimated the production to be between 55,000 and 60,000oz, while the cash flow from operations went from $21.2m to $23.9m, a 13% increase year-on-year.

Aside from the San Gregorio Mine's project, the company cited operations in Chile and Colombia among the highlights of the last financial year.

In July, Orosur completed the acquisition of Waymar Resources, adding the high grade Anza gold exploration project in Colombia to the company's portfolio, while exploration models have been advanced in Chile, where the company has defined six domains and several new targets at Anillo.

The company announced its net cash increased by $9.2m with a cash balance of $10.8m and total debt of $4.9m as of the period ended 31 May.

Orosur stated its forecast production guidance for the financial year 2015 to be between 50,000 and 55,000oz of gold at operating cash costs of between $850 and $950 per ounce.

Orosur shares were up 6.45% to 16.5p at 15:29 on Monday.

DC

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