May 9, 2012 / 12:27 PM / in 6 years

Nevsun profit rises, raises output forecast

(Reuters) - Canadian miner Nevsun Resources Ltd’s (NSU.TO) quarterly profit rose on higher output and lower costs, and the company raised its gold production forecast for the year.

The company’s first-quarter net income attributable to shareholders rose to $41.2 million, or 20 cents per share, from $11.8 million, or 6 cents per share, a year ago.

Revenue more than doubled to $149.4 million.

Nevsun said it expects to produce 240,000 ounces to 260,000 ounces of gold as it found unusually high grades of ore.

In February, the company had cut its gold production outlook for the year to 190,000 ounces to 210,000 ounces of gold.

Production at the company’s flagship Bisha mine in Eritrea, which was commissioned last year, rose to 82,000 ounces of gold, up from 75,000 ounces a year earlier. Cash cost per ounce was $277.

The Vancouver-based company’s shares closed at C$3.24 on Tuesday on the Toronto Stock Exchange.

Reporting by Maneesha Tiwari in Bangalore; Editing by Sriraj Kalluvila

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