TORONTO (miningweekly.com) – Base-metals miner Mercator Minerals reported headline earnings for the fourth quarter ended December 31, of $4.4-million or 2c a share, beating average analyst expectations of 1c a share, mainly as a result of recording record production for a single quarter during the period.

Production for the quarter totalled 23.8-million copper-equivalent pounds, comprising 10.9-million pounds of copper in concentrates and cathode, 2.9-million pounds of molybdenum in concentrates and 156 985 oz of silver. The company achieved recoveries of 83.1% for copper and 85.5% for molybdenum, which were above design rates of 80% and 75% respectively, and had boosted production.

Revenues of $77.5-million were 9.75% higher year-on-year, but partially offset by higher operating costs. The company had encountered lower-than-expected copper grades at its Mineral Park mine, in Arizona, as it was transitioning from supergene to hypogene copper mineralisation.

The company said since the start of the year, Mineral Park had taken additional maintenance downtime to reinstall the natural gas turbine. The company also said it was currently mining through harder sections of the mineral reserves.

As a result, the company expected production in the first quarter to be lower than in the fourth quarter, owing to lower throughput and grades.

During the fourth quarter, the company also restructured its Mineral Park credit facilities and repaid its overdue account payables.

For 2012, the company reported revenues of $262.6-million and a net loss of $128.7-million. Net earnings were impacted by reducing the carrying value of its El Creston project, in Mexico, by taking a $119.8-million noncash write-down, owing to the decline in molybdenum prices.

“During 2012 we delivered consistent quarter-over-quarter production improvements, which, combined with cash generated at the operations and our improved financial position, should provide the momentum for a stronger 2013,” CEO Bruce McLeod said.

The company’s stock had declined by 29.63% from the start of the year, and on Thursday traded at 37 Canadian cents apiece on the Toronto bourse.