August 7, 2009 / 6:29 PM / 9 years ago

UPDATE 1-La Mancha posts Q2 profit, backs '09 production target

* Q2 EPS C$0.04 vs loss/shr C$0.02 year-ago

* Q2 revenue C$28.4 mln vs C$13.1 mln year-ago

* Q2 gold production up 47 pct

* Says to achieve full-year production target

* Says CEO Michel Cuilhe to step down

Aug 7 (Reuters) - Canada’s La Mancha Resources Inc LMA.TO posted a quarterly profit, as the gold producer’s revenue more than doubled on higher production and favourable currency rates, and said it will meet its 2009 production target.

For the second quarter, the company reported net earnings of C$6.1 million, or 4 Canadian cents per basic share, compared with a loss of C$2.6 million, or 2 Canadian cents per basic share, a year ago.

Revenue more than doubled to C$28.4 million.

The company produced 27,755 ounces of gold at an average cash cost of $484 per ounce during the quarter, compared with 18,915 ounces of gold at an average cash cost of $612 per ounce in the year-ago period.

The company said the increase in production was mainly due to the start up of the Frog’s Leg mine in Australia and its African mines meeting expectations.

La Mancha also said it was confident of achieving its 2009 production target of up to 100,000 ounces.

The company said its Chief Executive Michel Cuilhe would retire from his position effective Friday, and appointed Dominique Delorme as the interim CEO.

Shares of the company were up 13 Canadian cents at C$1.13 Friday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Unnikrishnan Nair)

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