HALIFAX – Brigus Gold Corp. (TSX:BRD) has reversed a year-earlier loss to post a profit in the first quarter despite a decline in revenue.
Nova Scotia-based Brigus, which reports in U.S. dollars, said it earned net income of US$2.8 million or a penny per diluted share in the three months ended March 31.
That compared with a net loss of US$1.8 million of three cents per share in the same 2010 quarter.
The improvement was due “largely to a gain on fair value adjustment related to equity linked financial instruments . . . of $6.5 million compared to a gain of $2 million in the first quarter of 2010,” the company said in a release.
Revenue from gold sales was US$13.6 million, down from US$17.6 million in the prior-year period.
Brigus said it sold 10,003 ounces of gold in the quarter at an average realized price of US$1,356 per ounce, compared with sales of 15,796 ounces in the first quarter of 2010, all of which were delivered into the hedge forward contracts, at an average realized gold price of US$876 per ounce.
Brigus operates the wholly owned Black Fox complex in the Timmins gold district of Ontario. Brigus is also advancing its Goldfields project located near Uranium City, Sask.
On the Toronto Stock Exchange, Brigus shares were down three cents at $1.56 Wednesday afternoon.
