October 28, 2009 / 10:42 PM / 9 years ago

UPDATE 1-Agnico-Eagle takes loss on forex charge, output

* Q3 EPS ex-items $0.03/shr, vs estimated $0.20/shr

* Gold production up 73 percent

* 2009 output guidance cut (In U.S. dollars unless noted)

TORONTO, Oct 28 (Reuters) - Agnico-Eagle Mines (AEM.TO) said on Wednesday it posted a $17 million net loss in the third quarter, as the gold miner absorbed a $23 million foreign exchange-related charge and dealt with production issues at its new mines.

Agnico lost 11 cents a share in the quarter ended Sept. 30. That compared with a profit of $14 million, or 10 cents a share, a year earlier.

Stripping out the currency loss and other items, Agnico earned 3 cents a share.

Analysts had expect the Toronto-based company to earn 20 cents a share, according to Thomson Reuters I/B/E/S.

Third-quarter gold production rose 73 percent to 118,763 ounces.

In a statement, Agnico Chief Executive Sean Boyd said the company’s profit was hurt by production growth that was not as rapid as had been expected.

Agnico cut its full-year production guidance to 500,000 ounces from its previous range of 550,000 and 575,000 due to operational issues at new mines in Finland and Quebec.

Fourth-quarter production is expected to be 170,000 ounces, while full-year 2010 production is now expected at 1 million to 1.1 million ounces.

$1=$1.08 Canadian Reporting by Cameron French; editing by Rob Wilson

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