UPDATE - Orosur Mining delivers in line first quarter

---ADDS BROKER COMMENT--- Orosur Mining (LON:OMI, TSE:OMI), the operator of the only producing gold mine in Uruguay, has delivered in line with production and cost guidance in its first quarter, it said. The firm produced 12,471 ounces of the yellow metal in the three months to August 31 compared with 13,684 ounces in the same period last year. Costs were US$954 per ounce compared with US$945 per ounce last year, while the gold price received was US$1,147 an ounce. Ignacio Salazar, chief executive, said: "Despite the continued pressure on the gold price during the quarter, we managed to slightly increase our net cash balance whilst again delivering in line with our production and cost guidance. "As a result of the low gold price environment, and as previously announced, the company has designed, and has been actively implementing, changes in mine planning, cost structures and capital spending with the objective of reducing AISC below US$1,000/oz for the remainder of the fiscal year. “In Chile, we are pleased to report that exploration in Anillo is advancing well with drilling planned to commence before the end of the 2015 calendar year.” During the first quarter, Orosur finished optimising the mine plans for the open pits as well as the Arenal underground operation. That was on top of cost reduction measures across all areas, it said, including a 22% reduction in staff. "The primary objective of this plan is to reduce AISC below US$1,000/oz for the remainder of the year." Broker Cantor repeated a 'buy' but is keeping its target price under review ahead of revising forecasts. The group's swift reaction to the current gold price environment illustrates management's commitment to profitability and cash preservation over production scale in our view, it said. "Furthermore, the company has started its costcutting programme from a position of relative strength due to its net cash balance." Orosur shares eased 2.13% to 5.75p.