The lofty price of gold helped more than triple the second-quarter profits of Glamis Gold Ltd. (GLG), even as cash costs rose, the company said on Monday.

The mid-tier gold miner earned $30.3 million, or 20 cents a share, in the quarter ended June 30, up from $8.2 million, or 6 cents a share, in the corresponding period a year earlier.

Profits were plumped by robust gold prices, with the company selling 145,468 ounces of the precious metal in the quarter at an average realized price of $624 per ounce, up from 112,810 ounces at $430 per ounce in the previous year.

Glamis said total gold production for the second quarter was 138,637 ounces at a total cash cost of $209 per ounce, up from 109,377 ounces at $190 per ounce a year earlier.

It confirmed total 2006 gold production of about 620,000 ounces at cash costs of approximately $190 per ounce.

"Their earnings are positively affected by some tax deferrals, a $7.7-million tax deferral and also some inventory sales during that period, but you take those things away and they're a little bit below expectations but that's fine," said Mark Smith, analyst at Dundee Securities Corp. in Toronto.

"It's really the go-forward numbers with Glamis that you're worried about, not the current."

Dundee Securities Corp. has an "outlook perform" rating on Glamis' stock, with a target price of C$51.50.

Glamis said its board had approved the construction of its Penasquito gold project in Mexico, with full operation of the mill and flotation circuit expected by late 2009.

"Pretty well, the results were in line with estimates -- a higher gold price -- that was expected," said John Ing, president of Maison Placements Canada in Toronto.

"They're betting the farm on Penasquito -- now they are in the development mode so the stock will go sideways relative to the other companies because it is in development mode."

Shares of Glamis were down 12 Canadian cents at C$41.49 in morning trading on the Toronto Stock Exchange.