Centerra Gold Inc. reported a higher second-quarter profit on strong gold prices on Thursday, but lowered its production outlook for the year.

Centerra, which has interests in gold operations in Central Asia, said it earned US$29 million, or 13 cents a share, in the three months ended June 30. That compared with a profit of $15 million, or 7 cents a share, in the year-earlier period.

The company, majority owned by uranium producer Cameco Corp. , had forecast production of between 680,000 and 695,000 ounces of gold this year. But it said on Thursday output would be lower than expected due to ground movement at its Kumtor mine in July.

The company said it now expects production in 2006 of 570,000 to 575,000 ounces of gold, with total cash costs expected to be between $370 to $380 per ounce.