Alamos Gold posted a 63 percent rise in second-quarter profit as higher realized gold prices offset lower production at its flagship Mulatos mine in Mexico and said it was on track to meet its full-year output target.
The Canadian gold miner expects 2012 output to rise above this year's levels, with a forecast production ramp-up of at least 67,000 ounces from Escondida, a high-grade zone at its fully-owned Mulatos mine.
Alamos, which expects production at Escondida to begin in the first quarter of next year, backed its full-year production target of 145,000-160,000 ounces at a cash operating cost of $365-$390 per ounce.
Spot gold prices averaged about $1507.8 an ounce during April-June, up 26 percent since last year, as looming debt problems in major economies boosted demand in the precious metal.
Alamos' April-June profit rose to $15.5 million, or 13 cents a share, from $9.5 million, or 8 cents a share, a year ago.
Revenue rose 20 percent to $56.9 million.
Last month, Alamos posted a 6 percent drop in quarterly production at Mulatos, at 36,000 ounces, but said it would meet its full year targets.
Shares of the Toronto, Ontario-based company, which also has operations in Turkey, closed at C$18.46 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Viraj Nair)