October 25, 2012 / 2:03 AM / 6 years ago

Canada's Agnico profit rises on record gold output

(Reuters) - Canada’s Agnico-Eagle Mines Ltd TCKb.TO reported a quarterly profit on record gold production on Wednesday and boosted its output forecast for the year by 5 percent.

A general view of Agnico-Eagle's Meadowbank gold mine is pictured near Baker Lake, Nunavut August 24, 2011. REUTERS/Chris Wattie

The company now expects to produce some 1.03 million ounces of gold in 2012, up from a previous estimate of 975,000 ounces, with total cash costs falling to $660 per ounce, down from the $690 touted previously.

Agnico expects to pass the 1-million ounce threshold this year as it improves output at its Meadowbank mine in the Canadian territory of Nunavut and on strong production at its Kittila mine in northern Finland.

It maintained its 2013 outlook of 990,000 ounces of gold, as higher output at Meadowbank is expected to be offset by lower production at the LaRonde mine in Canada.

Toronto-based Agnico also announced that it had promoted David Smith to chief financial officer. Smith, who has been with the company for almost eight years, previously headed the strategic planning and investor relations departments.

He replaces Ammar Al-Joundi, who left Agnico earlier this year to work for rival Barrick Gold (ABX.TO).

Agnico’s earnings rose to $106.3 million, or 62 cents a share, in the quarter ended Sept 30. That compared with a loss of $81.6 million, or 48 cents a share, in the year-earlier period, when a charge related to the write-off of its Goldex mine in Quebec weighed on results.

Excluding one-time items, net income was $131.5 million, or $0.77 per share, compared with a year-ago adjusted net income of $101.9 million, or $0.60 per share.

Revenue rose 3 percent to $537.8 million, as the miner produced a record 286,971 ounces of gold in the quarter.

Agnico mines gold, silver and some base metals at its operations mines in Canada, Finland and Mexico.

Reporting by Julie Gordon; Editing by Gunna Dickson and Joseph Radford

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below