TORONTO (TheStreet) -- Yamana Gold (AUY) - Get Free Report missed Wall Street's profit expectations by a penny for its third quarter, the first full period of commercial operation at its key Gualcamayo mine in Argentina.
The intermediate gold producer posted adjusted earnings, before items, of $88.3 million, or 12 cents a share. Revenue amounted to $332 million, a sum that also fell short of the consensus Wall Street target. Analysts were looking for a top line of $357.7 million.
The results compared favorably, however, with the year-ago quarter, when there was no producing Gualcamayo mine. Revenue rose 50% from the same period of 2008, while adjusted earnings increased by 180%.
Yamana produced 261,789 ounces of gold and 2.9 million ounces of silver in the just-ended quarter, with Gualcamayo contributing 39,523 ounces of the yellow metal. The company, as of July, had a 2009 production goal for the mine of between 195,000 ounces and 210,000 ounces, according to a report in the trade journal
In a written statement, Yamana's CEO, Pete Marrone, appeared confident that the company would, in the last quarter of the year, make up for that gap. "We focused on our newest mine, Gualcamayo, this quarter, as we continue to put steps in place to optimize the mine," he said, adding that it's "meeting our expectations and exceeding guidance."
Yamana has mines across South America, including Chile and Brazil. During the quarter, its biggest gold producer, El Penon in Chile, put out 108,540 gold equivalent ounces, a measure that combines silver and gold weights.
For the year, the company is expecting to produce 1.05 million to 1.1 million gold equivalent ounces, which would be 40% more than it put out in 2008.
Yamana shares turned lower in after-hours trading Monday. They were changing hands recently at $11.71, down 10 cents from the close in the regular session, when they jumped 8%.
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.