May 3, 2012 / 12:22 PM / 6 years ago

UPDATE 1-Primero Mining adj profit jumps on higher production

* Q1 adj EPS $0.21 vs $0.02 year ago

* Revenue rises 29 pct

* Mexico mine gold production rises 10 pct

* Expects to make mill expansion decision in Q3

May 3 (Reuters) - Primero Mining Corp’s first-quarter adjusted profit jumped nearly twelve-fold on higher production at its San Dimas gold-silver mine in Mexico, and said it expects to make a mill expansion decision in the third quarter.

Net profit was $18.6 million, or 21 cents per share, compared with a net loss of $7.9 million, or 9 cents per share, a year earlier.

On an adjusted basis, earning rose to $18.8 million, or 21 cents per share, from $1.6 million, or 2 cents per share, in the year-ago period.

Revenue for the company, whose only producing asset is the San Dimas mine, rose 29 percent to $44.0 million.

The San Dimas mine, which the company bought from Goldcorp Inc in 2010, produced 22,590 ounces of gold and 1.32 million ounces of silver, which was 10 percent and 7 percent higher, respectively, than the year-ago period.

The company still expects to produce 100,000 gold equivalent ounces to 110,000 gold equivalent ounces on cash costs of $630-$660 per gold equivalent ounce in the year.

Primero said earlier this year it would review the method used to estimate reserves at San Dimas, which had failed to meet forecasts over the past decade.

The mine has already produced about 11 million ounces of gold and 580 million ounces of silver, Primero said on its website.

Primero shares, which have fallen nearly 40 percent in the past year, closed at C$2.76 on Wednesday on the Toronto Stock Exchange.

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