March 18, 2010–Mexico focused gold producer, Minefinders Corporation (TSX:MFL, AMEX:MFN) will be added to the S&P/TSX Global Gold Index and Global Mining Index which tracks the leading gold and mining industry participants.
“We are very pleased to be added to the Global Gold Index and Global Mining Index,” said Mr. Mark Bailey, President and CEO of Minefinders. “This is reflective of our transition from development into commercial production at our Dolores mine in Mexico and is an important milestone in the corporate development of Minefinders as we seek to grow our business and to create greater value for our shareholders.”
The company, which is focused on ramping up production at its flagship Dolores Gold-Silver Mine in Mexico, has a market valuation of approximately CDN$685 million.
Minefinders officially commenced commercial production at Dolores in May 2009, and has since been working on moving the operation up to full utilization.
As expected, cash costs in 2009 were well above the life of mine projections for the project, nonetheless, the company benefited from the robust gold and silver prices, recording fourth quarter revenues of $27.8 million and net income of $4.3 million, or 7 cents per share. The company also turned cash flow positive, reporting $4.2 million in positive operating cash flow.
During the final quarter of 2009, Minefinders sold 25,131 gold equivalent ounces.
Minefinders is expecting to produce between 91,000 and 100,500 ounces of gold and between 2.3 and 2.6 million ounces of silver in 2010.