Alamos Gold profit jumps on higher prices

Tue May 1, 2012 6:52am EDT
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(Reuters) - Canadian miner Alamos Gold (AGI.TO: Quote) reported a 65 percent jump in first-quarter profit mainly on robust gold prices and a tax gain.

Net income rose to $29.5 million, or 24 cents per share, from $17.9 million, or 15 cents per share, a year ago.

Revenue for the company, which owns and operates the Mulatos mine in Mexico, rose 29 percent to $70.3 million.

Production rose 8 percent to 40,500 ounces of gold on a rise in crusher throughput. Gold sold rose 7 percent to 41,745 ounces.

Gold prices rose 22 percent to average $1,690 per ounce during the first quarter from the year-ago period.

Cash costs were higher at $360 per ounce, up from $349 per ounce a year ago, as costs for inputs, such as labor, cyanide and diesel, rose.

The company, which also has operations in Turkey, said it would achieve its full-year production target of 200,000-220,000 ounces of gold.

Shares of the Toronto, Ontario-based company, which has a market value of C$2.16 billion, closed at C$18.08 on Monday on the Toronto Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)