Osisko boosts Q1 profit to $24.2 million amid record gold production

MONTREAL – Osisko Mining Corp. (TSX:OSK), which recently fended off a hostile takeover bid by Goldcorp Inc. (TSX:G), has reported a big improvement in first-quarter net earnings amid record gold production.

Osisko said after markets closed Wednesday that net earnings from mine operations in the three months ended March 31 were $24.2 million or six cents per share, up from $17.4 million or four cents in the corresponding period of 2013.

Revenue totalled $212.1 million, up from $159.4 million.

Osisko, whose main asset is its Canadian Malartic mine northwest of Val D’Or, Que., announced record gold production for the quarter of 140,029 ounces at an operating cash costs of US$577 an ounce (C$636) despite harsh winter weather.

“We are extremely proud of our team for delivering record quarterly gold production and financial results, particularly during a difficult time for all of our employees,” president and CEO Sean Roosen said in the earnings release.

“Canadian Malartic has continued to progress into one of the top performing gold mines in the world,” he said, adding that the company generated $91.9 million in operating cash flow and increased its cash balance by $47.6 million.

Goldcorp gave up on its hostile takeover bid last month and removed its nominees for the Osisko board after the Montreal company signed a friendly, $3.9-billion deal with Yamana Gold (TSX:YRI) and Agnico Eagle mines Ltd. (TSX:AEM).

That deal topped Goldcorp’s offer valued at about $3.6 billion.

On the Toronto Stock Exchange, Osisko shares closed up 18 cents, or 2.24 per cent, at $8.20 on Wednesday.