August 6, 2009 / 2:37 PM / 9 years ago

UPDATE 1-Alamos profit rises, raises production view

* Raises production forecast to 160,000 to 170,000 ounces

* Shares up 1.6 pct in early trade (In U.S. dollars unless noted)

TORONTO, Aug 6 (Reuters) - Alamos Gold Inc (AGI.TO) said on Thursday its quarterly earnings rose, driven by an increase in gold sales and a higher average realized gold price.

The Canadian mining company also raised its 2009 production forecast, sending shares up 1.6 pct.

Net income in the second quarter rose to $13.0 million, or 12 cents a share, compared with $6.2 million, or 6 cents a share, a year earlier.

Analysts, on average, had forecast earnings of 11 cents a share, according to Reuters Estimates.

The company sold 45,420 ounces of gold in the quarter at an average realized price of $924 an ounce. That compared with 35,482 ounces at an average realized price of $911 an ounce in the second quarter of 2008.

Alamos said it is revising its 2009 gold production forecast to between 160,000 and 170,000 ounces from its previous forecast of 145,000 to 160,000 ounces.

The company also said it expects that it will be able to continue to benefit from lower costs through the remainder of 2009.

Alamos revised its full year 2009 cash cost forecast to $335 per ounce from $350 per ounce.

Alamos shares rose 16 Canadian cents to C$10.10 in early trade on the Toronto Stock Exchange on Thursday.

    $1=$1.08 Canadian Reporting by Euan Rocha; editing by Peter Galloway

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