May 15, 2012 / 12:07 PM / in 5 years

UPDATE 1-Brigus Gold profit rises on higher production, prices

May 15 (Reuters) - Brigus Gold Corp reported 30 percent rise in quarterly profit on higher gold prices, an increase in production and lower costs, and said it expects cash costs to be lower in the year.

The company, which owns Black Fox mine and mill in the Timmins Gold District of Ontario, Canada, expects cash costs to decline to between $775 and $825 per ounce in 2012 from $958 last year.

They will fall to about $700 per ounce by the end of 2012, the company said.

Net income and comprehensive income in the first quarter rose to $5.5 million, or 3 cents per basic share, from $4.3 million, or 2 cents per basic share, a year ago.

Revenue from the sale of gold jumped 90 percent to $25.8 million, while gold sales volume rose 60 percent to 16,033 ounces.

Gold price rose 22 percent to average $1,690 per ounce during the first quarter.

Gold production nearly doubled to 16,922 ounces.

Cash costs for the quarter fell 22 percent to $858 per ounce, said the company, which is also developing the Goldfields project near Uranium City, Saskatchewan.

The company still expects to produce 77,000 to 85,000 ounces of gold in the year.

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