LONDON (Reuters) - Indonesia-focused gold firm Archipelago Resources (>> Archipelago Resources PLC) is on the acquisition trail in a bid to almost double its output, making it a rare bright spot amongst Britain's gold miners after it met cost and production targets.

"We are looking at doing an acquisition. At least 100,000 ounces a year would be nice. Something's that's already producing would be ideal," Chief executive Marcus Engelbrecht said in an interview on Monday.

Engelbrecht said he expected to see a number of opportunities to buy gold companies in the next six to nine months, as smaller players are squeezed by a lack of appetite to invest on both the debt and equity side.

The miner notched up output of 139,000 ounces in the first full year of production at its Toka mine at a cash cost of $635 (426.15 pounds) per ounce, making it the only London-listed gold producer to meet both its production and cost guidance in 2012, said analysts, ensuring it outperformed many of its peers whose struggle against rising costs has been less successful.

While the battle against inflation is being fought across the mining industry, the gold sector has experienced a particular leap in costs hindered by poor community relations and power woes.

London-listed gold miner African Barrick (>> African Barrick Gold PLC) saw 2012 annual cash costs per ounce soar 37 percent from their 2011 level, while West-Africa focused gold miner Avocet Mining's (>> Avocet Mining plc) costs jumped 44 percent in 2012.

Engelbrecht, a former BHP Billiton (>> BHP Billiton plc) executive, said Archipelago's management of ore grades and its ability to keep a handle on inflation by using the better purchasing opportunities available to it in South East Asia helped it outshine many of London's Africa-focused gold companies on costs.

The company is also considering hedging its fuel costs this year in a bid to keep the cost of production broadly stable at between $620 (416.08 pounds) to $680 (456.35 pounds) per ounce.

Archipelago said it planned to pay an inaugural interim dividend of 1.25 pence per share and a further one off special dividend of 1 pence per share this year.

Shares in the company, which is worth about 345 million pounds, traded down 1.25 percent at 59.5 pence.

(Reporting by Sarah Young; editing by Ron Askew)