November 9, 2010 / 4:03 PM / 7 years ago

UPDATE 1-La Mancha Q3 profit up, cuts FY gold production view

* Q3 EPS C$0.04 vs C$0.02 last year

* Q3 rev up 15 pct to C$32.3 mln

* Cuts FY production view to 130,000 ounces of gold

* Sees Q4 production of 40,000 ounces

* Shrs down 3 pct

Nov 9 (Reuters) - La Mancha Resources Inc LMA.TO posted a 62 percent rise in quarterly profit, helped by higher gold production, but cut its full-year production outlook.

For the full year, La Mancha now sees gold production in excess of 130,000 ounces, down from its earlier forecast of 140,000 ounces.

July-September net income was C$4.9 million, or 4 Canadian cents a share, compared with net income of C$3 million, or 2 Canadian cents a share, a year ago.

La Mancha, which operates two producing gold mines in Africa and a third in Australia, said revenue for the quarter rose 15 percent to C$32.3 million, while gold production rose 12 percent to 27,317 ounces.

One analyst had expected the company to earn 7 Canadian cents a share, according to Thomson Reuters I/B/E/S.

The company, whose cash costs increased 76 percent to $631 per ounce in the quarter, said it is expected to decrease in the fourth quarter due to higher production volume and higher expected processed gold grades.

La Mancha shares, which have gained 63 percent in value since the company reported its second-quarter results in August, were trading down about 3 percent at C$2.85 Tuesday late morning on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Unnikrishnan Nair)

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