LONDON (Alliance News) - Rose Petroleum PLC Thursday said sales increased but gold production rates fell in its third quarter compared to the previous three months.
The oil, gas, gold and silver producer, with operations in Mexico, said sales increased 14% to USD2.4 million for the three months ended September 30 from USD2.1 million in the previous quarter.
Rose Petroleum said that the majority of its increased sales came from its joint venture with Met-Sin SA de CV, allowing Rose Petroleum to process gold and silver ore from concessions operated by Met-Sin.
The company said its gold production fell 12% to 1,387 ounces during the period from 1,573 ounces as the company saw lower grades from its Diablito ore which has a higher cost base.
Despite this, the company's SDA Mill at its Colorada mine operated at 113% of capacity and the company expected this to continue in the fourth quarter.
Rose Petroleum said silver production increased 27% to 21,059 ounces from 16,613 ounces the previous quarter.
Rose also expects production grades and revenue for its fourth quarter to increase and be consistent with results achieved prior to the rainy season with fourth quarter production being focused solely on its activities from the joint venture with Met-Sin.
Rose Petroleum said its inventory increased 61% to 49.3 tonnes of concentrate at the end of the period compared from 30.6 tonnes in the second quarter.
The company also said that its copper and uranium programmes have been put on a care and maintenance basis and the company believes a partner will come on board to enable exploration drilling to resume shortly.
Rose petroleum shares were down 2.7% to 0.365 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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