Agnico Eagle hits record production, 56% profit drop

Canada's Agnico Eagle Mine (NYSE:AEM) has reported a 56% profit drop in its Q3 2013 results, compared with the same reporting period in 2012.

Blaming lower commodity prices and the maintenance shutdown of its Kittila mine in FinalndAgnico reported quarterly net income of $47.3 million, $0.27 per share, compared with $106.3 million last year.

"Realized gold, silver and copper prices were down approximately 15%, 27%, and 13%, respectively, period over period," the company noted in its Q3 results.

Agnico sold gold at an average of $1,333 and silver for $21.84 per ounce in Q3.

There was also some good news: The company achieved record gold production this quarter – 315,828 ounces – due mainly to its Meadowbank mine in Canada.

As a result, the company has adjusted its 2013 production forecast to 1,060,000 ounces of gold.

Agnico's flagship project in northwestern Quebec, LaRonde is expected to ramp up production over the next several years to an average life of mine production of more than 300,000 ounces per year. The site has one of the largest gold reserves of any operating mine in Canada.

The company has three other operating mines in Canada, Finland and Mexico.

Agnico lost nearly 3% on the New York exchange on Wednesday, trading at $25.86 per share. The share price has dropped 50% year-to-date.