Nevsun profit rises; raises output forecast

Wed Aug 8, 2012 7:43am EDT

Aug 8 (Reuters) - Canadian miner Nevsun Resources Ltd's quarterly profit rose 12 percent as it realized higher prices for gold sold, and the company raised its gold production forecast for the year.

Nevsun's second-quarter net income attributable to shareholders rose to $39.6 million, or 19 cents per share, from $35.3 million, or 18 cents per share, a year earlier.

Revenue increased nearly 9 percent to $147.7 million.

Nevsun said it expects to produce 280,000 to 300,000 ounces of gold for the year, up from its previous forecast of 240,000 to 260,000 ounces, as it mined higher grades of ore at its flagship Bisha mine in Eritrea.

The company sold 87,500 ounces of gold at $1,599 per ounce.

The Vancouver-based company's shares closed at C$3.66 on Tuesday on the Toronto Stock Exchange.