August 11, 2011 / 2:07 PM / 7 years ago

UPDATE 1-B2Gold posts Q2 adj profit on higher production

Aug 11 (Reuters) - B2Gold Corp reported a second-quarter adjusted profit helped by higher recoveries at its Nicaraguan mines.

The Canadian gold producer, which has two mines in Nicaragua — La Libertad and Limon — said gold production in the quarter was 36,760 ounces at an operating cash cost of $507 per ounce, compared with 24,924 ounces at an operating cash cost of $648 per ounce last year.

On an adjusted basis, the Vancouver, British Columbia-based company’s net profit was $22.0 million, or 7 cents a share, compared with an adjusted net loss of $3.4 million, or 1 cent a share, a year ago.

Gold revenue more than doubled to $54.5 million due mainly to higher gold production from Libertad mine, which commenced commercial production in February 2010.

The rise in realized prices reflect the increase in market gold prices, which averaged $1,506 per ounce in the quarter, the company said.

Gold has risen over 40 percent in the last 12 months, as concerns about U.S. and European sovereign debt drive investment into the traditional safe haven.

Shares of the company were down 9 Canadian cents at C$3.51 on Thursday morning on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)

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