Thailand-focused gold miner Kingsgate Consolidated Ltd. Thursday reported gold production of 35,531 troy ounces for the quarter ended June 30, up from 30,435 ounces in the previous three months and 34,162 ounces in the same period last year.

Quarterly output at the company's sole operating asset, Chatree, was aided by higher mill throughput rates, mainly due to a pebble crusher being fully commissioned, it said.

Production for the year to June 30 was 140,071 ounces, 5% below the company's original annual target due to the early onset of the wet season, as previously notified.

Kingsgate said it expected Chatree to produce similar levels in the 2007 fiscal year, with cash operating costs similar to the US$214 an ounce achieved in the just-ended quarter.

The production outlook is "subject to any further pressure from increased consumable prices," it said.

The Sydney-based company said it adjusted production targets due to the lack of timing clarity on the granting of new mining leases at Chatree North, which remain in the final review stage of an environmental impact assessment.

Kingsgate said it is finalizing a feasibility study into an expansion to take gold production to over 300,000 ounces.

The company reported total cash on hand of A$10.4 million (US$7.6 million) and a reduced hedge position of 59,000 ounces at June 30.