|Claude Resources 2nd-qtr profit falls 88 pct as costs rise |
Mon Aug 13, 2012 9:29am EDT
(Reuters) - Gold producer Claude Resources Inc cut its full-year production forecast after its second-quarter profit fell steeply due to higher costs and a fall in ore quality.
The Quebec-focused company cut its full-year production estimate to 48,000 to 50,000 ounces of gold from 50,000 to 52,000 ounces.
The company also said it expects per-unit cash costs to be higher by 10 percent in 2012.
Output at its only producing site, Seabee Gold Operation in northern Saskatchewan, fell 4 percent in the second quarter to 12,166 ounces, while production costs rose 50 percent to C$13.3 million.
Net profit fell to C$679,000 ($634,700), or a break even per share, from C$5.2 million, or 3 Canadian cents per share, a year earlier.
Revenue rose 10 percent to C$20.1 million on higher gold prices.
Gold price rose 7 percent during the second quarter from the year-ago period to average $1,611 per ounce.