TORONTO - Agnico Eagle Mines Limited (TSX:AEM) has reported a big drop in third-quarter net profit, citing among other things lower metals prices that have affected earnings throughout the year.
The Toronto-based miner says net income for the three months ended Sept. 30 was US$47.3 million or 27 cents per share, down from US$106.3 million or 62 cents per share in the same 2012 period.
Revenue from mining operations declined to US$444.3 million from $535.8 million.
Despite the year-over-year decline in profit, the company said it enjoyed strong operational performance at its mines, which led to record quarterly gold production.
One of the main contributors was the Meadowbank open-pit gold mine in Nunavut, which saw record throughput, better than expected gold grades and higher mill recoveries, it said.
"On the back of strong operating performance from our Meadowbank mine in the third quarter, and positive contributions from our other mines, we are pleased to announce record quarterly gold production and an increase in our 2013 production forecast with an associated reduction in the total cash cost estimate," president and CEO Sean Boyd said in the company's earnings release.
"Further cost-reduction initiatives are being incorporated in our 2014 budget process and will be reflected in our year-end financial results and three-year forecast, scheduled for release this coming February," he added.
Agnico Eagle is a gold producer with operations in Canada, Finland and Mexico, with exploration or development activities or both in those three countries and in the United States.
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