Crocodile Gold cuts 2011 production outlook; shares fall

Fri Nov 11, 2011 11:14am EST
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(Reuters) - Canada's Crocodile Gold Corp reported a quarterly loss, partly due to higher costs, and lowered its gold production forecast for 2011 as it expects much lower-than-expected head grades at its open pit mines in northern Australia.

Shares of the company fell as much 19 percent and touched a more than two-year low of 44 Canadian cents.

The forecast reduction was also due to a delay in operations at its Cosmo mine in northern Australia, the company said in a statement.

Toronto-based Crocodile cut its gold production outlook for the year to 66,000-69,000 ounces at a cash cost of $1,400-$1,500 per ounce in 2011, from its earlier forecast of 85,000-100,000 ounces, with a cash cost of $875-$975 per ounce.

The company reported a third-quarter net loss of $6.1 million, or 2 cents a share. In the same quarter last year, it posted a net income of $2.4 million, or 1 cent a share.

Revenue was flat at $30.6 million.

The company's stock was down 15 percent at 46 Canadian cents in morning trading on the Toronto Stock Exchange.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)