New Gold's Adjusted 3Q Profit up Nearly 70%

Higher gold prices and increased sales lifted New Gold Inc.'s adjusted third-quarter earnings nearly 70 percent, the Vancouver-based company said Friday.

Net income for the three months ended Sept. 30 fell to $40.7 million, or nine cents per share, from $44.8 million, or 11 cents per share.

Excluding one-time items, net income rose to $49.5 million, or 11 cents per share, from $29.3 million, or seven cents per share, in the year-earlier quarter.

Revenue for the company, which operates in Mexico, Australia, Chile, the United States and Canada, climbed to $175.5 million from $127.1 million.

Gold sales increased to 93,028 ounces from 89,692 ounces in the same period in 2010.

Silver sales fell to 379,600 ounces from 748,700 ounces in the year-earlier quarter.

Lower ore grades and leach pad recoveries lowered overall production at some operations: Gold production declined to 90,400 ounces from 91,300 ounces, and silver production fell to 380,600 ounces from 733,500 ounces.

The average realized price for gold climbed to $1,570 from $1,181 and, for silver, to $37.71 from $19.25.

New Gold backed previous production guidance for 2011 production of 380,000 to 400,000 ounces of gold.

Shares fell 10 cents to $12.52 in early trading.