August 4, 2011 / 10:18 AM / 7 years ago

UPDATE 2-Alamos Q2 profit rises on higher gold prices, backs FY view

* Q2 revenue up 20 pct

* Sees production rise in 2012

* Says on track to meet 2011 production view (Adds details on 2012 output view, FY target, production details)

Aug 4 (Reuters) - Alamos Gold posted a 63 percent rise in second-quarter profit as higher realized gold prices offset lower production at its flagship Mulatos mine in Mexico and said it was on track to meet its full-year output target.

The Canadian gold miner expects 2012 output to rise above this year’s levels, with a forecast production ramp-up of at least 67,000 ounces from Escondida, a high-grade zone at its fully-owned Mulatos mine.

Alamos, which expects production at Escondida to begin in the first quarter of next year, backed its full-year production target of 145,000-160,000 ounces at a cash operating cost of $365-$390 per ounce.

Spot gold prices averaged about $1507.8 an ounce during April-June, up 26 percent since last year, as looming debt problems in major economies boosted demand in the precious metal.

Alamos’ April-June profit rose to $15.5 million, or 13 cents a share, from $9.5 million, or 8 cents a share, a year ago.

Revenue rose 20 percent to $56.9 million.

Last month, Alamos posted a 6 percent drop in quarterly production at Mulatos, at 36,000 ounces, but said it would meet its full year targets.

Shares of the Toronto, Ontario-based company, which also has operations in Turkey, closed at C$18.46 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Viraj Nair)

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