In its first partial year of production, Osisko Mining Corporation has reported net profit of $37.8 million for Q4 2011.
The Canadian Malartic mine reached commercial production on 19 May, 2011, contributing to a net profit of $18 million for the year, compared to a loss of $17.8 million in 2010.
Mine operating profits during the fourth quarter totaled $39.5 million, and $79.5 million for 2011.
“We are extremely pleased with the solid and profitable financial performance in our first year of start-up operations,” said Sean Roosen, president and chief executive officer.
“The financial results clearly demonstrate the strength of the Canadian Malartic mine, which even in this first partial year of ramp-up operations has allowed us to capture great margins in this favorable gold price environment. We anticipate 2012 to provide a strong operating year for the company as we complete the ramp-up and optimize operations at Canadian Malartic.”
Gold production reached 79,718 ounces in the fourth quarter and 200,137 ounces for the year. Year-end gold reserves at Canadian Malartic increased by 200,000 ounces to 10.72 million ounces, effectively replacing 2011 production.
The construction of Canadian Malartic was completed in late February 2011. Following a cold testing period of the processing plant, ore was introduced in the mill in early April and first gold was poured on 13 April, 2011, approximately six years after the initial drill hole.
Commercial production was achieved on May 19, 2011, the first day when throughput at the processing plant averaged at least 60 percent of the 55,000 tonnes per day capacity.
“The dedication and contribution of our employees was remarkable as we moved Canadian Malartic from an exploration project to one of Canada’s largest gold mines in just over six years,” noted Roosen.
