10:46 AM EDT, 08/10/2017 (MT Newswires) -- Royal Nickel (RNX.TO) swung to a profit in the second quarter, posting net earnings of $4.9 million ($0.02 per share) compared to a net loss of $5.0 million ($0.03 per share) for the same period in 2016.

The swing to a profit was primarily as a result of the positive deferred tax impact of $4.9 million associated with the second quarter disposition of the Dumont Property.

Gold material mined at Beta Hunt during the second quarter was 1,351 tonnes per day, up 27% compared to the first quarter of 2017 and pre-commercial gold production was 8,281 ounces in the second quarter of 2017, up 50% compared to the first quarter of 2017. Gold sales were 5,891 ounces a decrease of 4% compared to 6,132 ounces sold in the first quarter of 2017.

For the second quarter of 2017, gold mining cash cost per ounce declined by 27% to US$1,211 per ounce from US$1,669 per ounce in the first quarter. On a cost per ounce sold basis, gold cash costs, net of by-product credits were US$1,739 per ounce sold, and all-in sustaining costs net of by-product credits were US$1,786 per ounce sold, higher than the first quarter of 2017 by 6%. As production volumes ramp up and grades improve through the year, costs are expected to decline towards target levels.

Reed Mine second quarter 2017 copper contained in concentrate production was 3.1 million pounds (1.14 kt) (30% basis). Cash costs were US$1.58 per pound sold and all-in sustaining costs were US$1.66 per pound sold. RNC's share of gold in concentrate production for the second quarter of 2017 from the Reed Mine was 293 ounces. Reference is made to the Non-IFRS Measures section of RNC's MD&A for the period ended June 30, 2017.

Royal Nickel's shares were recently up 2.7% at $1.90 apiece.

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