Shares of Toronto-based Primero () (NYSE:PPP) fell on Friday after the company reported a fatal accident at its San Dimas mine in Mexico last night.
The accident cost the life of an employee of one of its contractors at the mine.
Primero said the accident was an isolated event that happened underground with the company now working with local authorities to start an investigation.
Normal operations at the mine continue it added.
"The company wishes to extend its deepest condolences to the family and colleagues of the deceased" the company said in its statement.
The Canadian precious metals producer owns the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico. It also owns the Black Fox mine near Timmins Ontario which it acquired in March of this year.
Earlier this week Primero cut its total production guidance by 5000 gold equivalent ounces from both ends of its previous range while modestly increasing its cash costs forecast after a recent operational review on its Black Fox mine.
The company said it is now expecting to produce between 220000 and 240000 gold equivalent ounces compared to its previous forecast of 225000 to 245000 ounces. Cash costs for the year are now anticipated between $675 to $725 per ounce compared to $650 to $700 per ounce previously.
Following its review at Black Fox it lowered the mine's 2014 production guidance as a result of lower than planned underground throughput and lower than anticipated open-pit grades.
The company said however that it is confident that with the current increase in underground development and definition drilling at Black Fox throughput underground can rise to Primero's original plan of 1000 tonnes per day my mid-2015.
Shares dropped 6.5 percent to C$6.14 on Friday.
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