South-American focussed gold producer Troy Resources has posted a 79 per cent increase in annual production.
The Perth-based company ramped-up production at its Brazilian and Argentinian ventures over the year; achieving production of 137,000 gold equivalent ounces, up from 70,000 ounces last financial year.
About 70,000 ounces of gold was produced from its Casposo mine in Argentina, while 48,000 came from the Brazilian Andorinhas mine.
It also produced 88,000 ounces of gold equivalent material from the Casposo mine, which the company bought for $22 million in 2009.
The Casposo venture has been largely responsible for the company's revival in which shares recovered from a low of 69 cents during the GFC to trading well over $4 a piece for most of this calendar year.
Closing at $3.88 a share yesterday, Troy's share price reached a high of $4 a piece as it released its quarterly activities report this morning. At 15:50 AEST shares were at $3.91.
Chief executive Paul Benson said it had been a “solid quarter” with the benefit of favourable cash costs.
“The low cost production is building a strong balance sheet with net cash of $40.9m…placing the company in a strong position to pursue new growth opportunities,” he said in a statement.
He said the company would focus on further exploring at the Andorinhas mine after drilling indicated existing reserves could penetrate deeper, and was missed by earlier exploration.
Troy began exploring at Andorinhas prior to the GFC, but will come to the end of its life in the next couple of years.
The company also holds 100 per cent ownership of the Sandstone project in the MId West, which was moved to care and maintenance in the September 2010 quarter.