August 10, 2010 / 12:51 PM / in 7 years

UPDATE 1-Gammon operating profit lifted by gold price

* Q2 Adj EPS $0.08 Vs $0.03 a yr-ago

* Q2 revenue up 32 pct $57 mln (All figures in U.S. dollars, unless noted)

TORONTO, Aug 10 (Reuters) - Gammon Gold GAM.TO said on Tuesday its second-quarter operating profit rose, helped by increased production and a higher gold prices.

Excluding items, the company reported earnings of $11.4 million, or 8 cents a share, up from a year-ago profit of $3.4 million, or 3 cents a share.

The junior gold miner booked charge in the quarter, related to the suspension of operations at its El Cubo mine in Mexico this June. [ID:nN17219620]

Including the charge, reported a net loss of $180.3 million, or $1.30 a share, compared with a year-earlier loss of $6.8 million, or 5 cents a share.

Quarterly revenue rose 32 percent to $57 million, driven by higher average realized gold and silver prices in the period.

The company produced 52,506 gold equivalent ounces in the period, up from 50.814 ounces a year earlier.

Gammon’s average realized gold price rose 31 percent to $1,201 an ounce, while its average realized silver price rose 35 percent to $18.47 in the period. (Reporting by Euan Rocha; Editing by Derek Caney)

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