August 9, 2011 in Idaho

CdA Mines reports 2Q earnings gains

Company reported a net loss one year ago of $50.7 million
By The Spokesman-Review
 

Wheeler
(Full-size photo)

Coeur d’Alene Mines Corp. reported improved financial earnings during the second quarter, citing record metals prices and strong production at the company’s gold and silver properties in Alaska, Bolivia and Mexico.

The company reported net income of $38.6 million, or 43 cents per share, during the second quarter, compared to a net loss of $50.7 million or 57 cents per share during the second quarter of 2010. Revenues from metals sales were $231.1 million during the second quarter.

President and CEO Mitch Krebs said that metals prices are expected to remain robust during the rest of the year, “particularly with events unfolding in the (European Union) and our challenges here in the U.S.”

Gold futures prices hit a record of $1,723.40 per ounce on Monday, the first day of trading after Standard & Poor’s downgraded the U.S. credit rating.

Gold and silver prices typically rise during times of economic turmoil, as investors seek a safe haven for their money. Coeur d’Alene Mines expects to produce about 20 million ounces of silver and about 250,000 ounces of gold this year.

Krebs recently took over the company’s helm after the board of directors accepted the resignation of longtime CEO Dennis Wheeler in July.

Wheeler, 68, had spent nearly 25 years as the company’s CEO. According to a 15-page severance agreement filed with the U.S. Securities and Exchange Commission, Wheeler will be paid a $1 million lump sum to serve as a company consultant for a year. He also received a $2.8 million severance package.

The agreement also says Wheeler will receive $75,000 to set up an office outside of Coeur d’Alene Mines headquarters and continued use of a company car during the transition period; coverage under the company’s health plan for up to three years for Wheeler and his dependents; and ownership of the art in his old office.

Wheeler agreed not to compete with the company for 12 months, or solicit employees or customers from Coeur d’Alene Mines. He also agreed not to sue the Coeur d’Alene Mines or make derogatory remarks about it.

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