Argonaut Gold Inc. (TSE:AR), a producer of gold from mines in Mexico, rose in midday trading after forecasting production to increase in 2014 at El Castillo and La Colorada mines.
Argonaut shares gained 2.2 percent to C$51.13 at 1:22 p.m. in Toronto. The stock has lost approximately 40 percent over the last 12 months.
2014 production is expected to increase to 135,000 to 150,000 gold equivalent ounces at El Castillo and La Colorada, the Toronto, Ontario–based company said in a statement today.
"2014 will be a key year for the organization," Chief Executive Officer Peter Dougherty said in a statement today.
He said the company aims to expand its resource base further through drilling at San Agustín and La Colorada, adding that Argonaut will be moving forward with permitting at San Antonio and Magino.
Argonaut produced 120,433 gold equivalent ounces in 2013, up 9 percent from 2012.
Dougherty said the company beat guidance on cash cost per ounce sold at El Castillo and La Colorada—coming in below $700 at El Castillo and under $450 at La Colorada.
For the fourth quarter, the company swung to a net loss of $14.7 million, or 10 cents per share, from net income of $19.1 million, or 19 cents per share, in the year-earlier period. Excluding one-time items, the company earned a penny per share.
Fourth-quarter profit dropped 34 percent to $34.6 million from $52.3 million.
Analysts on average were looking for earnings of 2 cents per share on revenue of $35.3 million.
The company, which has a market value of C$789 million, has 2 "strong buy", 5 "buy" and 4 "hold" recommendations from analysts.