TORONTO, July 12 AuRico Gold AUQ.TO said on
Tuesday its gold production rose sharply in the second quarter
and average production costs declined, driven by cost
containment initiatives and recent acquisitions.
Gold production in the quarter ended June 30 rose to 43,652
ounces, up from 29,231 ounces a year earlier. Silver output in
the period dipped slightly to 1.24 million ounces from 1.28
million ounces a year earlier.
Average realized cash costs at its flagship Ocampo mine in
Mexico fell to $340 an ounce from $458 an ounce, the company
said. The company also said it expects average costs at the
mine this year to be lower than it had expected.
"During the quarter, the company benefited from the higher
productivity at Ocampo and a reduction in cash costs, as well
as from the initial production contribution from the recently
acquired El Chanate mine," said Chief Executive Rene Marion in
AuRico is the new name of the former Gammon Gold. The gold
miner changed its name in May after completing its takeover of
Capital Gold. The company clinched the $408 million deal to
acquire Capital and its El Chanate asset in Mexico after an
extended takeover battle with rival Timmins Gold (TMM.TO).
Shares of the company were up 8 Canadian cents at C$11.05
on Tuesday morning on the Toronto Stock Exchange.
(Reporting by Euan Rocha; editing by Peter Galloway)