August 16, 2011 / 11:49 AM / 7 years ago

UPDATE 2-Yukon-Nevada Gold Q2 profit soars, shares rise

* Expects production run rate of 150,000 ounces by end of 2011

* Shares up as much as 10 pct (Adds background, share movement)

Aug 16 (Reuters) - Yukon-Nevada Gold Corp said its quarterly profit rose five-fold due to higher production and a gain on warrants, and it expects to achieve production run rate of 150,000 ounces by end of 2011, sending its shares up as much as 10 percent.

The company recorded a $36.6 million gain in warrants recorded as derivative liabilities.

April-June net income rose to $22.9 million from $4.5 million a year ago.

The company — which owns silver, gold, zinc and copper assets in Canada’s Yukon territory and British Columbia, and in Nevada, U.S. — produced 22,168 ounces of gold, compared with 18,441 ounces, a year ago.

Yukon sold 18,341 ounces of gold at an average price of $1,541 per ounce.

The company, which posted a loss for three consecutive years since 2008, said it expects to be profitable in 2012.

Shares of the company were trading up 7.5 percent at 50 Canadian cents on Tuesday Morning on the Toronto Stock Exchange. (Reporting by Ankur Banerjee in Bangalore; Editing by Don Sebastian, Roshni Menon)

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