Sunday, September 21st9.2°C
23284
22768

Osisko Mining reports fourth-quarter profit down from year-ago mark

MONTREAL - Osisko Mining Corp. (TSX:OSK), which is fighting a hostile takeover bid by Goldcorp (TSX:G), said Tuesday that it earned $10.5 million in its latest quarter.

The gold miner said the profit amounted to two cents per share for the fourth quarter of 2013 compared with a profit of $12.9 million or three cents per share a year earlier.

Revenue totalled $185.8 million, down from $191.1 million in the fourth quarter of 2012.

The lower revenue came even as quarterly gold production increased to 137,321 ounces from 101,544 a year ago, and gold sales increased to 136,826 ounces compared with 111,104 in the fourth quarter of 2012.

The average sale price, however, dropped to US$1,275 an ounce from US$1,709 a year ago.

Osisko president and chief executive Sean Roosen said the company's flagship Canadian Malartic mine produced a record 50,111 ounces at a cash costs of $670 per ounce in January.

"The record gold production was achieved despite mill downtime and unusually cold weather conditions," Roosen said in a statement.

Osisko rejected a hostile takeover bid by Goldcorp in January.

Under terms of the bid, Osisko shareholders would receive 0.146 of a Goldcorp share and $2.26 in cash per Osisko share. However, Osisko shares have traded well above the implied value of the Goldcorp offer since the bid was first announced.

Based on the share prices Tuesday, the offer was worth about $6.69 per Osisko share or a total of about $2.94 billion, while Osisko shares closed up six cents at $7.02 on the Toronto Stock Exchange.

Goldcorp shares were up three cents at $30.35.

Osisko has launched a legal challenge to Goldcorp's bid and accused the company of breaking a confidentiality agreement and failing to honour a standstill agreement.

A hearing has been set for March 3.

Goldcorp, meanwhile, announced after markets closed Tuesday that it was extending its takeover bid until 5 p.m. on March 10. Terms of the offer remain the same.

Osisko has also said it is working with its financial and legal advisers to develop, review and evaluate alternatives to the Goldcorp offer.

Osisko's main asset is the Canadian Malartic gold mine in northern Quebec where it has been ramping up operations since its first commercial production in May 2011.

Goldcorp chief executive Chuck Jeannes has said Canadian Malartic would rank among his companies' best operations if the takeover is successful.

The Canadian Press


Read more Business News

21196


Recent Trending




Today's Market
S&P TSX15265.35-200.19
S&P CDNX955.06-10.73
DJIA17279.7413.75
Nasdaq4593.426-13.637
S&P 5002010.40-0.96
CDN Dollar0.9126+0.0004
Gold1216.90-10.00
Oil92.45-0.62
Lumber329.00-0.90
Natural Gas3.911-0.064

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.37+0.05
Cantex0.05-0.01
Anavex Life Sciences0.223-0.0031
Metalex Ventures0.060.00
Russel Metals35.75-1.26
Copper Mountain Mining2.66-0.02
Colorado Resources0.165-0.01
ReliaBrand Inc0.0249+0.0009
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



22980

FEATURED Property
1976547#1205-2440 Old Okanagan Hwy
3 bedrooms 2 baths
$299,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_








Member of BC Press Council


23096