October 11, 2011 / 12:42 PM / 7 years ago

UPDATE 2-Agnico gold production rises quarter-to-quarter

* Gold production up 11 percent in Q3 over Q2

* Says repairs at Goldex to cost $25 mln from $20 mln

* Shares unchanged (In U.S. dollars unless noted) (Adds details, stock price)

Oct 11 (Reuters) - Gold miner Agnico Eagle (AEM.TO) said production rose about 11 percent in the third quarter from the prior period, mainly because of improved performance at two mines in Finland and Canada, and it forecast higher output for the fourth quarter.

The company also said it now expected to pay $25 million this year to repair a fractured volcanic rock section at its Goldex project in western Quebec, up from an earlier estimate of $20 million.

Agnico said the repairs, which involve drilling to check water flow and rock mass movement, grouting and installing monitoring equipment, would cost $20 million in 2012.

In the third quarter, the company’s gold production rose to 265,978 ounces from 239,328 ounces in the second quarter.

Gold production at the company’s Kittila Mine in northern Finland increased to 37,924 ounces from 30,811 ounces.

Production at the Meadowbank mine near Nunavut, Canada, rose to 78,141 ounces from 59,376 ounces.

Shares of Agnico were unchanged at C$59.22 on Tuesday morning on the Toronto Stock Exchange. (Reporting by Arnav Das Sharma in Bangalore and Julie Gordon in Toronto; Editing by Roshni Menon and Lisa Von Ahn)

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