South America-focused gold and silver producer Troy Resources has posted a jump in first half net profit after a production ramp-up at its new Casposo operation in Argentina and a strong performance at its Andorinhas mine in Brazil.

Troy on Friday unveiled a 76 per cent surge in net profit for the six months to December 31 to $10.7 million, up from $6.05 million for the previous corresponding period.

“This strong result reflects the ramp-up in Casposo’s performance in the December 2011 quarter and the strong performance at Andorinhas for the full half year,” chief executive Paul Benson said in a statement.

Gold production amounted to 57,327 ounces, while silver production totalled 415,087 ounces.

Commercial production started at Casposo in March and the ramp-up was hindered by extremely cold weather during the September quarter, Troy said. Production rose at the Andorinhas mine as the company increasingly targeted underground ore and reduced the amount of ore processed from low grade stockpiles.

Troy said it was on track to achieve its goal of becoming a mid-tier gold miner and to deliver annual production of the precious metal of more than 100,000 ounces.

“The company maintains a robust balance sheet and forecasts continued strong cash flow from its current assets,” Troy said.

Shares in the company finished up three cents at $4.88, on low trading volumes.