TORONTO (miningweekly.com) – Quebec-based gold miner Osisko Mining on Thursday reported net earnings of $17.4-million or $0.04 a share during the first quarter ended March 31, which was 43% lower than the net earnings of $30.6-million in the first quarter of 2012.

The decrease in net earnings was mainly the result of higher mine operating costs for products sold, higher depreciation and exploration expenses, Osisko said.

Excluding items, adjusted net earnings totalled $36.4-million or $0.08 a share, compared with $59.6-million or $0.15 a share during the comparable quarter of 2012.

Cash costs per ounce for the first quarter stood at $804/oz, compared with $821/oz in the first quarter of 2012. The improvement over the comparative period in 2012 was mainly the result of increased throughput and gold production, improved efficiencies and reduction in contractors' costs.

Osisko said throughput and production at Canadian Malartic mine were progressing well, achieving an overall mine production increase of 15% in the quarter, despite increased maintenance of the loading equipment and reduced availability in February and March.

On February 13, the Quebec government approved a new decree which modified the operating parameters of Canadian Malartic. The changes included extending the duration of blasts, increasing the time period during which blasts can be executed, and providing greater access to the northern part of the deposit. Osisko said the modified parameters would provide greater flexibility in day-to-day operations.

During the quarter, about 1 510 equipment hours, or 1.7% of available hours, were lost owing to noise and weather constraints.

At the end of April, Osisko announced an $80-million reduction in discretionary spending this year, as a result of the recent volatility in the gold price and financial markets.

Modifications to the company’s exploration and advanced projects would also result in Osisko reducing its workforce by about 6% over the next few months.

“Having full ownership of our major projects allows us to adapt our investment spend rate and preserve the free cash flow generated by our flagship Canadian Malartic mine,” CEO Sean Roosen said at the time.

The company’s shares traded down 1.99% at C$4.44 apiece on the TSX on Thursday afternoon.