WRAPUP 1-Strong gold price boosts Goldcorp, Agnico profits

Wed Oct 27, 2010 5:27pm EDT

* Goldcorp Q3 adjusted EPS $0.31 vs $0.19 a yr ago

* Agnico Q3 EPS $0.73 vs yr-ago loss of $0.11/shr

* Goldcorp, Agnico reaffirm full-yr production forecasts (In U.S. dollars unless noted)

TORONTO, Oct 27 (Reuters) - Canadian gold miners Goldcorp Inc (G.TO) and Agnico-Eagle Mines (AEM.TO) reported solid quarterly profits on Wednesday, on the back of record bullion prices.

Goldcorp, the world's second largest gold company by market capitalization, reported a 65 percent increase in earnings and doubled its annual dividend payout.

"Continued strong gold demand in the third quarter, along with Goldcorp's lowest quarterly cash costs in over two years resulted in record cash margins," Goldcorp Chief Executive Chuck Jeannes said in a statement.

Vancouver-based Goldcorp said its adjusted earnings in the quarter rose to $231.5 million, or 31 cents a share, compared with $140.6 million, or 19 cents a share, a year earlier.

Gold sales in the third quarter were 568,100 ounces on production of 596,200 ounces. Quarterly revenue rose 28 percent to $885.8 million.

Both Goldcorp and its smaller rival Agnico-Eagle reiterated their full-year production forecasts. Goldcorp expects output of about 2.55 million ounces in 2010, while Agnico expects its output to be between 1 million and 1.1 million ounces.

AGNICO RESULTS

Agnico jumped to a third-quarter profit from a year-ago loss, when is results were hurt by a foreign exchange-related charge and production issues at its new mines.

The Toronto-based miner reported net income of $121.5 million, or 73 cents a share in the quarter ended Sept 30. That compared with a loss of $17 million, or 11 cents a share, in the same period of 2009.

Quarterly revenue from mining operations more than doubled to $398.5 million, largely driven by a higher realized gold price and increased output from new mines.

"The transformational phase at Agnico-Eagle is complete and has resulted in record earnings and cash flows per share. The next phase, one of optimization and expansion of our newly built mines, is underway," said Agnico's Chief Executive Sean Boyd, in a statement.

($1=$1.03 Canadian) (Reporting by Euan Rocha, additional reporting by Julie Gordon; editing by Rob Wilson)