November 5, 2008 / 1:49 AM / in 10 years

UPDATE 1-Yamana Gold 3rd-qtr profit jumps

* Profits soared as gold and copper production rose

* Revenues increased 24 percent

* Adjusted earnings miss expectations (In U.S. dollars, unless noted)

NEW YORK, Nov 4 (Reuters) - Yamana Gold (YRI.TO) said on Tuesday its third-quarter profit soared, as gold and copper production increased.

The Canadian gold miner, which acquired Meridian Gold and Northern Orion Resources last year, earned $150.2 million, or 21 cents a share, in the three-month period ended Sept. 30.

That was up from $29.9 million, or 8 cents a share, in the year-before period.

Adjusted earnings, which exclude unrealized losses or gains on derivatives, fell to $31.5 million, or 5 cents, from $65.6 million, or 17 cents, in the third quarter of 2007.

On that basis, the earnings fell short of the average forecast of analysts polled by Reuters, 10 cents a share.

Quarterly revenue rose 24 percent to $247.5 million as realized gold prices increased 26 percent in the third-quarter against the same period last year.

Gold production climbed 45 percent, while copper output increased 33 percent.

Mine operating earnings fell 64 percent to $44.4 million impacted by less favourable exchange rates, primarily the Brazilian Real, and a number of interim grade and recovery factors experienced in the company’s mine operations.

An increase in prices for precious metals was partly offset by an increase of consumable prices of inputs into the operating process, Yamana Gold said in a statement.

The company has said it may sell higher-cost assets as it focuses on its core mines in Brazil and Chile.

Yamana has mines and properties in Brazil, Chile, Mexico, Honduras and the United States. (Reporting by Juan Lagorio; Additional reporting by Cameron French in Toronto; Editing by Gary Hill)

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