Capital Gold’s quarterly income surges 52%

Capital Gold (CGC-T) posted a 52% year-on-year jump in net income in the first fiscal quarter ended Oct. 31.

Net income advanced to US$2.94 million (2¢ per share) in the three months ended Oct. 31, up from US$1.94 million (1¢ per share) in the year-earlier quarter; with gold sales rising from 11,733 ounces from 11,413 ounces. Cash cost per oz. sold rose from US$270 per oz. to US$338 per oz. in the quarter ended Oct. 31.

The company plans to boost production next year; it is almost finished building a new leach pad and installing an additional crushing and screening module, both of which will be operational in January 2010.

“Together, the new leach pad and crushing and screening module will assist with an increased gold production profile of 70,000 ounces in calendar year 2010,” John Brownlie, the company’s president, said in a prepared statement.

In addition to the El Chanate mine near the town of Caborca, Capital Gold owns and leases concessions near the town of Saric, also in Sonora, where it is conducting preliminary exploration for gold and silver.

At presstime Capital Gold was trading at $1 per share and has a 52-week trading range of 43¢ -$1.13 per share. The company has 194 million shares outstanding.