* Adj Q4 EPS $0.41 v Street view $0.44
* Revenue up 4 percent at $466.8 million
* Company produces record 1 million oz of gold in 2012
* Eyes 20 percent production growth in 2013-2015
TORONTO, Feb 13 Canada's Agnico-Eagle Mines Ltd
produced a record 1 million ounces of gold in 2012, but
fourth quarter adjusted earnings fell short of analysts'
expectations as higher costs squeezed margins.
The gold miner reported a profit of $82.8 million, or 48
cents a share, in the quarter ended Dec. 31. That compared with
a loss of $601.4 million, or $3.53 a share, in the year-ago
period, when it wrote down part of the value of its Meadowbank
mine in the Canadian Arctic.
Excluding one-time items, profit was $69.9 million, or 41
cents a share in the quarter, below the average analyst estimate
of 44 cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 4 percent to $466.8 million, on higher gold
output and a stronger gold price.
Agnico produced 236,535 ounces in the quarter, up slightly
from 227,792 ounces in the year-ago quarter. The realized gold
price rose 3 percent to $1,684 an ounce, while cash costs
climbed 15 percent to $769 per ounce.
The company is focused on improving operations at its
existing mines in order to bring unit cash costs down, Chief
Executive Sean Boyd told Reuters.
"Now that we've completed the building phase ... and these
mines are more steady state, we've shifted into the more
optimization efficiency mode," he said.
"We expect to be able to continue to make some improvements
at a couple of our big mines."
For the full year in 2012, the company produced more than 1
million ounces of gold, passing that threshold for the first
time in its 55-year history.
Production in 2013 is forecast to be in the range of 970,000
to 1 million ounces, while cash costs are expected to be in the
range of $700 to $750 an ounce. That compared with $640 an ounce
Over the next two years, Agnico expects to boost gold output
by about 20 percent, as new projects come into production and
grades improve at some of its existing mines.
The company, which owns operations in Canada, Finland and
Mexico, anticipates gold production of 1.2 million ounces a year