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Primero Mining Corp. (TSX:P, NYSE:PPP) announced that they have reached the annual production threshold of 3.5 million ounces of silver and will begin selling 50% of the silver produced at San Dimas at spot prices for its own account until August 5, 2013.
Primero Mining Corp. (TSX:P, NYSE:PPP) announced that they have reached the annual production threshold of 3.5 million ounces of silver and will begin selling 50% of the silver produced at San Dimas at spot prices for its own account until August 5, 2013.
As quoted in the press release:
The Company assumed the silver purchase agreement when it acquired the San Dimas mine in 2010 and the agreement was renegotiated in order for Primero to participate in the silver produced above the annual threshold amount.
Pimero’s President and CEO, Joseph Conway, said:
We expect the increased silver revenue derived from our increasing production to improve our profitability and leverage to precious metals. This, combined with the positive tax ruling that was obtained in October, 2012, which confirmed that Primero should pay taxes based on realized prices of silver sales, has significantly increased expected free cash flow.