July 11, 2011 / 6:38 PM / 7 years ago

Minefinders' gold/silver output lifts shares

* Q2 output jumps to 19,500 oz gold, 1 million oz silver

* Sales rise to $73.1 million from $21.6 million

* Shares up 2.35 percent at C$13.49 (In U.S. dollars unless noted)

TORONTO, July 11 (Reuters) - Shares of Minefinders Corp MFL.TO rose on Monday after the company announced stronger than expected second-quarter production and sales results.

The Canadian precious metals miner said it produced about 19,500 ounces of gold and just over 1 million ounces of silver in the quarter ended June 30. That compared with output of nearly 13,800 ounces of gold and 277,147 ounces of silver, a year earlier.

Scotia Capital analyst Trevor Turnbull said this was the best quarter since 2009 for the company’s Dolores gold and silver mine in northern Mexico, with output growing 28 percent from the first quarter.

The company said second-quarter sales were $73.1 million, up from $21.6 million for the same period in 2010.

Minefinders shares were up 2.35 percent at C$13.49 in early afternoon trading on Monday on the Toronto Stock Exchange. Earlier in the day, the shares climbed as high as C$14.06, their highest level since May 5.

The stock has traded between C$9.45 and C$16.51 in 2011.

Minefinders had strong production and sales in the first quarter of 2011, but its share price dropped significantly after the company reported a dip in first-quarter profits.

“Today’s results should give investors confidence that the strong Q1/11 performance was not a one-off,” Turnbull said in a note to clients. “We believe a re-rating will continue based on these production figures and the financials to follow.”

The company said it will report full financial and operating results for the second quarter on Aug. 3.

$1=$0.97 Canadian Reporting by Trish Nixon; editing by Peter Galloway

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