July 28, 2010 / 10:30 PM / 8 years ago

WRAPUP 1-Goldcorp, Agnico profits jump on record gold price

* Goldcorp Q2 EPS $1.11 vs year-ago loss of $0.32/shr

* Agnico Q2 EPS $0.63 vs $0.01 year ago (Wraps Goldcorp, Agnico-Eagle earnings; in U.S. dollars unless noted)

By Euan Rocha

TORONTO, July 28 (Reuters) - Goldcorp Inc (G.TO) and Agnico-Eagle (AEM.TO) reported huge profits on Wednesday. as record bullion prices and increased gold production helped boost quarterly results.

Although production expenses rose for both Canadian miners, a big year-over-year increase in the price of gold more than offset the impact of higher costs.

Gold, which rose to a record high of more than $1,260 an ounce in June, averaged nearly $1,200 an ounce in the quarter — up about 8 percent from the prior quarter and nearly 30 percent above year-earlier levels.

Goldcorp said net income in the quarter was $826.7 million, or $1.11 a share, compared with a year-ago loss of $232.4 million, or 32 cents a share, when results were hurt by a non-cash foreign exchange translation loss.

Excluding items, the company reported earnings of $198.8 million, or 27 cents a share, up from $99.2 million, or 14 cents a share.

Revenue rose 34 percent to $844.3 million on increased gold sales and a significantly higher bullion price.


Agnico-Eagle said its second-quarter gold production more than doubled from a year-ago, driven by growing output from a series of new mines.

The company said it earned $100.4 million, or 63 cents a share, in the quarter ended June 30. The latest results include a non-cash foreign currency translation gain and a one-time tax recovery that were slightly offset by non-cash stock-based compensation expenses.

That compared with year-before earnings of $1.2 million, or 1 cent a share, when profit was hit by a non-cash currency translation charge and stock option expenses.

Revenue more than doubled to $347.5 million, driven by increased production from its Goldex and Lapa mines in Quebec, along with new mines in Mexico and northern Canada.

$1=$1.04 Canadian Reporting by Euan Rocha; editing by Rob Wilson

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