November 16, 2010 / 1:22 PM / in 7 years

UPDATE 1-Great Basin Gold widens loss on higher expense

* Q3 loss/shr C$0.07 vs loss/shr C$0.05 last year

* Q3 rev C$12.2 mln

Nov 16 (Reuters) - Canadian gold producer Great Basin Gold Ltd GBG.TO reported a wider pre-tax quarterly loss, hurt by higher expenses.

For the July-September quarter, the Vancouver-based miner posted pre-tax loss of C$23.7 million, or 7 Canadian cents a share, compared with a pre-tax loss of C$16.4 million, or 5 Canadian cents a share, last year.

Adjusted pre-tax loss was 3 Canadian cents a share.

Revenue for the quarter was C$12.2 million. In the year-ago quarter the company stockpiled material extracted through trial mining and recorded no revenue.

Third-quarter expense more than doubled to C$36 million, including hedging and operational costs, from C$16.4 million last year.

Miners use forward hedging to lock in future prices for their product. While this protects against price pressure, it means they missed some of gold's stellar gains.

Gold XAU= has risen more than 5 percent in the third quarter.

The company's shares closed down 4 percent at C$2.96 on Monday on the Toronto Stock Exchange.

Billionaire investor George Soros trimmed his bets on Great Basin and bigger miners Barrick Gold (ABX.TO) and Newmont Mining (NEM.N) during the quarter, a filing on Monday said. [ID:nN15263362] (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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