May 12, 2010 / 2:15 PM / 8 years ago

UPDATE 1-La Mancha Q1 profit up on higher gold output

* Q1 revenue up 13 pct to C$27.8 mln

* Q1 production up 17 pct to 21,654 ounces of gold

* Backs 2010 production view of up to 140,000 ounces

May 12 (Reuters) - Gold miner La Mancha Resources Inc LMA.TO posted a slightly higher quarterly profit, as the ramp-up of its Australian mine and higher output at its Sudan mine boosted gold production 17 percent.

For the second quarter, La Mancha expects gold production from Australia of over 31,000 ounces, boosted partly by increased mill capacity and ore production.

“We therefore remain confident that we will achieve our target 2010 gold production of up to 140,000 ounces,” Chief Executive Dominique Delorme said.

For the first quarter, net income was C$3.7 million ($3.6 million), or 26 Canadian cents per share, compared with C$3.5 million, or 24 Canadian cents per share, a year ago.

Revenue rose 13 percent to C$27.8 million.

Quarterly production rose 17 percent to 21,654 ounces of gold.

Two analysts were expecting the company to earn 28 Canadian cents per share, according to Thomson Reuters I/B/E/S.

La Mancha’s Frog’s Leg mine in Australia produced 9,789 ounces of gold, up from 6,115 ounces a year ago. Its Hassai mine in Sudan produced 7,099 ounces of gold, up from 6,485 ounces a year ago.

Shares of the Montreal, Quebec-based company were up 1 percent at C$2.00 early Wednesday morning on the Toronto Stock Exchange. ($1=1.021 Canadian Dollar) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Unnikrishnan Nair)

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