Gammon Gold Posts 2Q Loss On Forex Changes

HALIFAX, Nova Scotia (AP) — Gammon Gold Inc. posted a second-quarter loss Thursday as fluctuations in foreign currency exchange rates weighed down the Halifax, Canada-based mining company's results.

Gammon said it lost $7.6 million, or 6 cents per share, for the three months ended June 30. That compares with a restated profit of $4.8 million, or 4 cents per share, during the same period last year.

The results included a $7 million foreign exchange loss due to the strengthening of the Mexican peso and Canadian dollar versus the U.S. dollar.

Revenue from mining operations slid 33 percent to $43.3 million from $64.6 million.

Analysts surveyed by Thomson Reuters expected profit of 6 cents per share on revenue of $44.1 million. Those estimates usually exclude one-time items.

During the quarter, Gammon said it produced 31,115 ounces of gold, 1,083,471 ounces of silver — or 47,123 gold equivalent ounces. Using a long-term gold-to-silver ratio of 55:1, gold equivalent production was 50,814 ounces.