November 11, 2010 / 2:56 PM / 8 years ago

UPDATE 1-Minera Andes Q3 profit rises on Argentine mine JV

* Q3 profit $6.1 mln vs $5.2 mln yr-ago

* JV’s Q3 profit up 1.8 mln

Nov 11 (Reuters) - Canada’s Minera Andes MAI.TO posted a rise in quarterly profit on the back of strong results at its joint venture to run its flagship San Jose mine in Argentina. The mine is operated by Minera Santa Cruz SA, a joint venture between Hochschild Mining (HOCM.L) and Minera Andes, with 49 percent of production attributable to Minera Andes.

Minera Andes said third quarter profit rose to $6.1 million from $5.2 million a year ago. Earnings per share were flat at 2 cents a share.

The rise in total net income was mainly due to a $1.8 million rise in profit recorded on its share in the joint venture.

Total expenses in the quarter rose $0.9 million as general and administrative costs increased, a weakening of the Canadian dollar, and a fall in professional fees.

Silver production at the mine was flat while gold production slipped 2 percent. However, silver production rose 15 percent sequentially, while gold production rose 12 percent. [ID:nSGE69J0L8]

The average cash cost was $8.81 per ounce of silver and $570 per ounce of gold for the quarter on a per-ounce co-product basis, the company said in a statement.

Minera Andes’ shares have soared 154 percent year-to-date and closed at C$2.06 Wednesday on the Toronto Stock Exchange. (Reporting by Savio D’Souza in Bangalore)

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