August 13, 2012 / 1:32 PM / in 5 years

Claude Resources 2nd-qtr profit falls 88 pct as costs rise

Aug 13 (Reuters) - Gold producer Claude Resources Inc cut its full-year production forecast after its second-quarter profit fell steeply due to higher costs and a fall in ore quality.

The Quebec-focused company cut its full-year production estimate to 48,000 to 50,000 ounces of gold from 50,000 to 52,000 ounces.

The company also said it expects per-unit cash costs to be higher by 10 percent in 2012.

Output at its only producing site, Seabee Gold Operation in northern Saskatchewan, fell 4 percent in the second quarter to 12,166 ounces, while production costs rose 50 percent to C$13.3 million.

Net profit fell to C$679,000 ($634,700), or a break even per share, from C$5.2 million, or 3 Canadian cents per share, a year earlier.

Revenue rose 10 percent to C$20.1 million on higher gold prices.

Gold price rose 7 percent during the second quarter from the year-ago period to average $1,611 per ounce.

Shares of the Saskatoon, Saskatchewan-based company, which has a market value of C$121.6 million, closed at 70 Canadian cents on Friday on the Toronto Stock Exchange.

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