Patagonia Gold (LON:PGD) recorded its first meaningful revenues in 2013 as production began from its Lomada heap leach operation in Argentina.
Revenues totalled US$10.2mln in 2013, reflecting commercial production from July and nameplate capacity of 1,750 ounce per month in the final quarter.
Including January and February, Patagonia added total production had risen to 16,426 ounces for revenues of US$22 mln.
Patagonia has decided to expand Lomada to 3,000 ounces per month and target 31,500 ounces this year, which will reduce production cash costs to $550 per ounce.
The gold producer is also setting up a heap leach operation as a first stage of development at its flagship Cap-Oeste project, with the aim of boosting cash flow and lowering costs.
This project is planned for start-up in the first three months of next year subject to receiving environmental permits and procuring funding.
Carlos Miguens, Patagonia’s chairman, said: “Looking ahead, 2014 will be a year of achievement as Patagonia Gold attains significant milestones in production and exploration.”
Net losses for the year fell to US$15.2mln from US$20.8mln.