Rio Alto Mining (RIO.TO, NYSE:RIOM) has released its production numbers for the second quarter of this year. Even though the amount of ore mined increased and the strip ratio decreased, the average grade was lower than expected/planned which resulted in a production of approximately 4,000 ounces of gold short of the planned 58,000 ounces. Total production for the first half of this year was almost 108,000 ounces of gold, a 27% increase compared to the first half of 2013. The full year guidance of 200,000-220,000 ounces of gold remains intact.
Additionally, Rio Alto has just completed its acquisition of Sulliden which allows the company to increase the quality of its development pipeline.
Disclosure: The author holds no position in Rio Alto. Please see our disclaimer for current positions.