Argonaut Gold profit doubles on higher output, prices

Wed Aug 15, 2012 7:54am EDT

Aug 15 (Reuters) - Canadian gold miner Argonaut Gold Inc's quarterly profit more than doubled on increased production and higher gold prices.

The net profit rose to $11.3 million, or 11 cents per share, from $5.2 million, or 6 cents per share, a year earlier.

Revenue rose 74 percent to $37.5 million.

The Mexico-focused company's production rose 38 percent to 24,123 ounces of gold.

Gold price rose 7 percent to average $1,611 per ounce during the second quarter.

The company continues to expect 2012 gold production between 75,000 ounces and 80,000 ounces at a cash cost between $625 and $650 per ounce.

Shares of the Toronto-based company, which has a market value of C$748.8 million, closed at C$8.09 on Tuesday on the Toronto Stock Exchange. (Reporting by Krithika Krishnamurthy in Bangalore; Editing by Don Sebastian)