May 15, 2012 / 1:37 PM / in 6 years

UPDATE 1-Crocodile Gold posts wider loss as costs weigh

May 15 (Reuters) - Crocodile Gold Corp, which operates gold mines in the Northern Territory of Australia, reported a wider quarterly loss as higher cash costs weighed despite a rise in gold prices.

The Canadian company said it will produce less than what it had expected at its flagship Cosmo mine in the first six to nine months of the year due to delays caused by a grid power failure.

However, it expects Cosmo to start commercial production by the fourth quarter of 2012.

Net loss in the first quarter was $20.3 million, or 6 cents per share, compared with a net loss of $7.0 million, or 3 cents per share, a year ago.

Cash costs rose about 32 percent to $2,028 per ounce of gold, hit by lower-than-expected ounces produced and sold.

Crocodile Gold said in January it expects to produce 75,000 to 85,000 ounces of gold in 2012, a forecast it still maintains.

Crocodile Gold shares, which have lost more than a third of their value in the past year, closed at 46.5 Canadian cents on Monday on the Toronto Stock Exchange.

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