MONTREAL – Osisko Mining Corp. (TSX:OSK) has posted lower fourth-quarter profits as a number of non-cash items affected its bottom line.
The Montreal-based miner said net earnings for the last three months of 2012 were $9.6 million, or two cents per share.
That’s a steep drop from the $37.8 million, or 10 cents per share it earned during the same 2011 period.
Revenues were $191 million, up from $128.1 million during the same 2011 period.
Osisko took a $10.9 million charge related to its 9.5 per cent interest in Ryan Gold Corp.
It also saw a 66-cent-per-share reduction of Queenston Mining Inc. stock, which it bought from Agnico Eagle in November.
And Osisko’s tax provision also went up compared to 2011, when the company had a tax recovery related to its Canadian Malartic mine in Quebec starting operations.
“Despite the various challenges that we faced, we generated cash from mine operations of $305.6 million, which clearly demonstrates the strength of Canadian Malartic,” said CEO Sean Roosen
“The past year had its challenges as we continued ramping up Canadian Malartic to its nameplate capacity.
“In the fourth quarter we were affected by delays in executing a major blast over old underground mine workings which reduced our operating flexibility and impacted our mining plan. We anticipate Canadian Malartic will generate improved and strong cash flow once the ramp up phase is completed later this year.”
In addition to operating the flagship Canadian Malartic gold mine, Osisko is has exploration and development activities elsewhere in Canada and in Latin America.