Coeur d’Alene Mines Corp. turned a profit for the second quarter after losing money for the same period last year. The gains reflected strong gold production and the sale of a non-mining-related company bought along with Callahan Mining Co.
The gold and silver mining company reported a net income of $3.4 million, or 22 cents a share, compared with a loss of $1.3 million, or nine cents a share, for the second quarter of 1994.
The sale of The Flexaust Co. earned the company $2.2 million. When Coeur merged with Callahan in 1991, Coeur also purchased Flexaust. Even without the sale, Coeur would have posted earnings of $1.2 million.
Coeur enjoyed record gold production last quarter, producing 41,822 ounces compared with 31,523 ounces in the same period last year.
Coeur made a major move to increase its gold reserves by purchasing Echo Bay’s half-ownership of the Kensington Mine in Alaska. The purchase cost Coeur $32.5 million.
For the first half of 1995, Coeur made $232,000, or one cent a share, compared with a loss of $3.9 million, or 26 cents a share, during the first half of 1994.
Echo Bay post loss
Echo Bay Mines owner of the Kettle River gold mine in northeastern Washington, reported a loss for the second quarter.
Echo Bay lost $13 million, or 12 cents a share, compared with a gain of $1.7 million, or 2 cents a share, in the second quarter of 1994.
Higher costs and increased exploration contributed to the loss, according to the Denver-based company. Echo invested $15.4 million to develop its current gold properties, which accounted for most of the loss.
For the first half of 1995, Echo Bay lost $24.6 million, or 22 cents a share, compared with a gain of $13.2 million, or 12 cents a share, for the first half of 1994.