Production, price boost net income

In the second quarter of last year, Reno-based Glamis Gold mined 51,369 ounces of gold at an average cash cost of $171 an ounce.

It sold that gold at a price that averaged $268 an ounce.

In the second quarter of this year, Glamis mined more gold 63,929 ounces at a cash cost that was $10 an ounce less.

And, as the gold market soared, Glamis sold its production for a price that averaged $312 an ounce.

Given higher production, lower costs and higher prices, it's little wonder that Glamis reported that its second-quarter earnings more than tripled to $3.4 million from $1 million a year ago.

Per-share earnings were 4 cents compared with 1 cent a year ago.

Revenues for the quarter were $20.4 million compared with $14.5 million in the same period a year ago.

Kevin McArthur, president and chief executive, told analysts in a conference call that the company views the quarter's results as a good step toward its goal of producing 500,000 ounces a year at an average cash cost of $150 an ounce.