Orosur Mining Inc. reported consolidated earnings results for the second quarter and six months ended November 30, 2012. For the quarter, the company reported sales of $24,168,000 compared to sales of $20,985,000 for the same period a year ago. Profit before income tax was $1,035,000 compared to $4,335,000 last year. Total income and comprehensive income was $1,210,000 or $0.02 per basic and diluted share compared to $2,565,000 or $0.03 per basic and diluted share last year. Net cash generated from operating activities was $1,357,000 compared to $9,325,000 last year. Purchase of property, plant and equipment and development costs was $7,040,000 compared to $10,632,000 last year. Cash flow from operations for the quarter was $3.5 million compared to $4.6 million last year.

For the six months, the company reported sales of $50,502,000 compared to sales of $42,011,000 for the same period a year ago. Profit before income tax was $3,537,000 compared to $8,865,000 last year. Total income and comprehensive income was $3,501,000 or $0.05 per basic and diluted share compared to $6,977,000 or $0.09 per basic and diluted share last year. Net cash generated from operating activities was $3,695,000 compared to $13,451,000 last year. Purchase of property, plant and equipment and development costs was $11,752,000 compared to $19,543,000 last year. Cash flow from operations was $8.5 million for the half year compared to $10.2 million last year.

The company reported consolidated operating results for the second quarter and six months ended November 30, 2012. For the quarter, the company reported gold production of 13,970 ounces compared to gold production of 11,916 ounces for the same period a year ago. Despite ore production being slowed from all pits due to heavy rain during the quarter and the mining sequence being changed production and cash costs from Arenal Deeps, Sobresaliente, and Zapucay were all in line with expectations. During the quarter 385,271 tonnes of ore compared to 391,686 tonnes of ore last year, were fed into the plant at an average grade of 1.21 g/t compared to 1.02 g/t last year. During the quarter 1.8m tonnes of waste compared to 1.4m tonnes of waste last year and 284,880 tonnes of ore compared to 232,070 tonnes of ore last year, were mined with an average grade of 1.50 g/t compared to 1.25g/t last year.

For the six months, the company reported gold production of 29,421 ounces compared to gold production of 24,404 ounces for the same period a year ago.

Total capital expenditure for the year is expected to be $24.5 million compared to an original budget of $20.5 million. The company is planning to spend up to $4 million in the second half of the current year to change the mining sequence of San Gregorio to accelerate pre-strip on this deposit. This will allow the company to maintain higher ore stock levels to reduce risk and maximise throughput and maintain consistent production over the coming years. The production forecast for the full year remains on track to be in the range of 63,000 to 68,000 ounces.

Cash flow from operations and profitability in the second half is expected to be significantly stronger as higher production levels are forecast with similar cost levels. Production in the second half is expected to increase as Arenal development will transition from waste to ore, higher grade Arenal ore will be accessed in the last quarter and Crucera ore delayed from the first half of the year will be processed in the second half. The company expects to commit up to $4 million of additional capital expenditure in the second half of the year to accelerate the 'pre-strip' of the San Gregorio extension that had been planned to commence in the next financial year.