Agnico-Eagle revenue doubles on output and stronger gold price
Gold miner Agnico-Eagler Q1 revenue rose 125% on higher prices and production exceeding analysts' forecasts
TORONTO (Reuters) -
Foreign exchange and stock compensation charges trimmed net profit for Agnico-Eagle Mines (AEM.TO) in the first quarter, but revenue jumped on stronger gold prices and a doubling of production, the company said on Thursday.
Stripping out a noncash $8.9 million currency-related loss and a $17.3 million stock-based compensation charge, the Canadian gold miner earned 31 cents per share.
Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 29 cents a share, before items.
Agnico's production has risen sharply over the past two years as the company has opened five mines to go along with its flagship La Ronde mine in Quebec.
Revenue from mining rose to $237.6 million from $105.8 million as realized gold prices climbed 14.7 percent to $1,111 an ounce, while production approximately doubled to 188,232 ounces.
Cash costs per ounce climbed to $443 from $312 due mainly to higher expenses at the Kittila mine in Finland and the Meadowbank mine in the Canadian territory of Nunavut, which achieved commercial production in March.
Agnico is in the process of acquiring Comaplex Minerals (CMF.TO) for its Meliadine gold project, which is located near Meadowbank.
The company reiterated its expected 2010 production of 1.0-1.1 million ounces of gold at cash costs of $399 per ounce.
On a net basis, Agnico earned $22.3 million, or 14 cents a share, in the quarter, down from a year-before profit of $54.3 million, or 35 cents, when the bottom line was boosted by a $38.6 million tax recovery.
($1=$1.00 Canadian) (Reporting by Cameron French; Editing by Frank McGurty)
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