August 6, 2009 / 2:31 PM / 9 years ago

UPDATE 1-New Gold Q2 results beat market, gold sales rise

* Q2 adj EPS $0.04 vs est $0.01

* Rev $61.7 mln vs est $52.8 mln

* Gold sales rise 30 pct, cash costs/oz falls

* Shares rise 3 pct

Aug 6 (Reuters) - Gold producer New Gold Inc (NGD.TO) (NGD.A) reported a wider second-quarter loss as it took a hefty impairment charge tied to its purchase of Western Goldfields, but posted an adjusted profit that topped market expectations.

The company said its gold sales for the period rose 30 percent to 52,890 ounces, while cash cost per ounce sold fell 37 percent to $468.

For the second quarter, New Gold posted a net loss of $202.8 million, or 79 cents a share, compared with a net loss of $4.8 million, or 5 cents a share, a year ago.

The company took a goodwill impairment charge of $189.6 million related to the acquisition of Western Goldfields, which was closed during the quarter.

Excluding items, the company earned $10.6 million, or 4 cents per share. Revenue rose 56 percent to $61.7 million.

Analysts on average had expected earnings of 1 cent per share, excluding special items, on revenue of $52.8 million, according to Reuters Estimates.

New Gold, which was formed in June 2008 through the three-way merger of New Gold, Metallica Resources and Peak Gold, reaffirmed its full-year gold production forecast of 330,000 ounces to 360,000 ounces.

In March, New Gold agreed to take over rival Canadian miner Western Goldfields for about C$282 million ($220 million) in stock.

Shares of New Gold were up 3 percent at C$3.38 in morning trade on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Gopakumar Warrier)

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