June 2, 2011 / 12:50 PM / 7 years ago

UPDATE 2-Avion Gold restates Q1 results after calculation error

* Co understated gold rev by $4.3 mln

* Co restates Q1 EPS to $0.03 from $0.02 (Updates to reflect the restated results)

June 2 (Reuters) - Canadian mining company Avion Gold Corp restated its first-quarter results to account for a calculation error which understated gold revenue by $4.3 million.

After the adjustment, Avion’s net income for the first quarter was $12.6 million, or 3 cents a share. It had earlier reported a profit of $8.3 million, or 2 cents a share.

Before share-based compensation, the company had earlier reported a profit of 3 cents a share. However, it did not clarify if the adjustment affected the amount.

Total revenue, after adjustment, was $31.8 million. It had earlier reported a revenue of $27.5 million.

Analysts, on average, expected earnings of 3 cents on a revenue of $28.1 million, according to Thomson Reuters I/B/E/S.

The company had earned $0.7 million in the same period, a year ago.

The Toronto-based company, which began commercial gold production in 2009, produced 20,270 ounces of the metal in the quarter, about 2,000 ounces lower than its forecast because of a technical snag at one of its facilities. [ID:nL3E7F621Q]

However, production costs almost halved to $462 per ounce.

Avion holds 80 percent stake in the Tabakoto and Segala gold projects in Mali.

Shares of the company were trading 5 percent lower at C$1.50 on the Toronto Stock Exchange. (Reporting by Mayuresh Tungare in Bangalore; Editing by Jarshad Kakkrakandy and Joyjeet Das)

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