Alamos Gold profit up, sees FY12 output at lower end of forecast

July 26 Thu Jul 26, 2012 7:00am EDT

July 26(Reuters) - Alamos Gold reported a 59 percent jump in quarterly profit as production rose and costs fell, but said it expects full-year production at the lower end of its forecast range.

The Canadian gold miner, which owns and operates the Mulatos mine in Mexico, still forecast production of 200,000 to 220,000 ounces of gold in the year at a cash cost of $365-$390 per ounce of gold sold.

Net income in the second quarter rose to $24.7 million, or 20 cents per share, from $15.5 million, or 13 cents per share, a year earlier.

Revenue rose 42 percent to $80.9 million. Production rose 34 percent to 48,200 ounces of gold.

Alamos said last month it sees first gold production from the Kirazli project in 2014 and from Agi Dagi in 2016. Both projects are in northwestern Turkey.

Cash costs in the quarter were $323 per ounce, 9 percent lower than the year-ago quarter.

The company said higher realized gold prices also boosted earnings. Price of gold, has more than quintupled in the last decade, rose 7 percent to average $1,611 per ounce during the second quarter from the year-ago period.

Shares of the Toronto, Ontario-based company, which has a market value of about C$1.78 billion, closed at C$14.80 on Wednesday on the Toronto Stock Exchange.

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