UPDATE 1-Canadian miner Agnico Eagle turns profit, boosts production forecast

Wed Jul 30, 2014 6:25pm EDT

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(Adds updated forecast, context on acquisition, analyst expectations)

July 30 (Reuters) - Canadian gold producer Agnico Eagle Mines Ltd reported a second-quarter profit on Wednesday compared with a loss a year earlier, as gold production jumped and costs improved.

The miner boosted its gold production forecast for 2014 by 13 percent, to 1.35 million ounces, citing its recent acquisition of part of the Canadian Malartic mine as well as good performance at other operations.

Grades improved at the Meadowbank mine in Nunavut, northern Canada. Company-wide, average cash costs per ounce of gold fell to $725 from $907 on a by-product basis, deducting revenue from other metals.

In April, Agnico and Yamana Gold Inc agreed to buy most of Osisko Mining Corp's assets, including Canadian Malartic, located in the province of Quebec, in a deal then valued at C$3.9 billion.

Agnico reported earnings of $37.7 million, or 20 cents a share, compared with a loss of $24.4 million, or 14 cents, a year earlier. Revenue rose to $437.8 million from $336.4 million. Excluding a non-cash currency loss and other unusual items, earnings were $52.8 million, or 28 cents a share.

Analysts, on average, had been expecting earnings of 30 cents a share, according to Thomson Reuters I/B/E/S. (Reporting by Allison Martell in Toronto; Editing by Diane Craft)

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