UPDATE 2-Agnico Eagle profit lifted by strong gold price

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Wed Feb 16, 2011 6:16pm EST

* Q2 EPS $0.53 vs $0.31 yr-ago

* Revenue up sharply to $439 mln (Adds details on results; in U.S. dollars)

TORONTO Feb 16 (Reuters) - Miner Agnico Eagle (AEM.TO) said on Wednesday its fourth-quarter profit rose sharply on the back of record high gold prices and higher gold production.

Net income in the quarter rose to $88 million, or 51 cents a diluted share, up from a year-earlier profit of $47.9 million, or 30 cents a diluted share.

The Toronto-based company said its average realized gold price rose more than 20 percent to $1,387 an ounce.

Gold output climbed more than 50 percent to 256,469 ounces, driven largely by the start-up of the Meadowbank mine in Nunavut in northern Canada.

Quarterly revenue from mining operations rose about 95 percent to $439 million.

Total cash costs per ounce rose close to 60 percent to $462 per ounce.

The company said its proven and probable reserves rose 2.9 million ounces to 21.3 million ounces, as of year-end 2010. (Reporting by Euan Rocha and Julie Gordon; editing by Rob Wilson)

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