Nov. 3 (Bloomberg) -- Yamana Gold Inc., owner of the Chapada mine in Brazil, said third-quarter profit fell 59 percent because of a loss on derivative positions.

Net income dropped to $60.8 million, or 8 cents a share, Toronto-based Yamana said today in a statement. A year earlier, the company reported a profit of $150.2 million, or 21 cents. Sales rose 35 percent to $333.2 million. Excluding one-time charges, the company earned 12 cents a share, Yamana said. That trailed the 13-cent average estimate of 17 analysts surveyed by Bloomberg.

Yamana booked a third-quarter loss of $16.9 million on derivative positions. A year earlier, the company benefited from a $138.9 million gain on commodity derivatives.

Yamana and competitors Barrick Gold Corp. and Agnico-Eagle Mines Ltd. are boosting output to take advantage of higher prices for gold, which reached a record $1088.50 an ounce today in New York. Chief Executive Officer Peter Marrone said Sept. 16 that Yamana had record monthly output of 105,000 ounces of gold and gold equivalent in August.

The company produced 314,707 ounces in the third quarter, up 34 percent from the 235,406 reported a year earlier.

Yamana rose 89 cents, or 7.6 percent, to C$12.54 at 4:27 p.m. in Toronto Stock Exchange trading. The shares have increased 33 percent this year.

To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.

Last Updated: November 3, 2009 17:21 EST