TORONTO, ON–(Marketwired – March 15, 2017) – Primero Mining Corp. (“Primero” or the “Company”) (TSX: P) (NYSE: PPP) today reported financial results for the fourth quarter and full-year ended December 31, 2016. The Company previously reported operating results for the fourth quarter and full-year 2016 on January 18, 2017.
- Revised Production Guidance Achieved: Fourth quarter production of 45,794 gold equivalent ounces2 resulted in annual 2016 production of 176,139 gold equivalent ounces within the Company’s 2016 revised production guidance range of 170,000 to 190,000 gold equivalent ounces. Annual production totalled 156,052 ounces of gold and 5.32 million ounces of silver combined from the San Dimas and Black Fox mines.
- Cash Costs Within Revised Guidance Range: Consolidated 2016 total cash costs3 were $865 per gold equivalent ounce, with consolidated all-in sustaining costs4 (“AISC”) of $1,333 per gold ounce slightly below the Company’s revised 2016 guidance range.
- Financial Results Impacted by Lower Production: Lower production at both mines resulted in reduced revenue, earnings and cash flows in 2016 compared to 2015. The Company incurred a net loss of $234.4 million ($1.32 per share) including $228.0 million ($188.9 million net of tax) in impairment charges in 2016, and an adjusted net loss1 of $22.1 million ($0.12 per share) for 2016.
- San Dimas Operations Being Re-Set to Increase Profitability: Primero is reducing the complexity and scale of San Dimas operations in 2017. This is expected to result in significant decreases to the San Dimas workforce and other overhead costs which will enable the return to profitability and long-term sustainability of the mine.
- Reduced General and Administrative Costs: Primero has initiated actions to significantly reduce its general and administrative (“G&A”) costs in 2017. The Company has already reduced its corporate office head-count by 30%, and will be downsizing its corporate office space and reducing directors’ expenses.