UPDATE - Agnico-Eagle profit misses estimates, cuts outlook (at Reuters)

By Cameron French TORONTO (Reuters) - Profit at Agnico-Eagle Mines (AEM.TO: ) dropped by a steeper than expected 78 percent in the second quarter, the company said on Wednesday, as it also cut its 2008 gold output forecast and warned of a 40 percent jump in capital costs. The Canadian gold producer earned $8.3 million, or 6 cents a share, in the quarter ended June 30. That was down from $37.8 million, or 28 cents a share, in the year-before period, as the company's bottom line was stung by a 56 percent year-on-year drop in zinc prices. Stripping out one-time items, core earnings were 9 cents a share, which fell short of the profit of 17 cents a share expected by analysts. "It's certainly below my expectations and the street's," said Barry Allan, an analyst at Research Capital in Toronto. "I know the street's not going to... [read full story]