Coeur d’Alene Mines posts loss, stock takes hit
Shares of Coeur d’Alene Mines Corp. sank today after the company reported a net loss following lower production and sales of silver and gold.
Coeur, the largest U.S.-based primary silver producer, reported a loss of $15.8 million, or 18 cents per share, for the third quarter, compared to a profit of $31 million, or 35 cents per share, a year earlier.
Shares fell $7.27, or 24 percent, to $23.06 in midday trading. The price has ranged from $15.15 to $31.97 per share in the past 52 weeks.
Revenue fell 33 percent to $230.6 million.
The quarter suffered from lower production and higher unit costs at the company’s Palmarejo mine in Mexico, said Mitchell Krebs, president and CEO. Unfavorable underground conditions at the mine in September and a transition in open pit production caused those problems, he said.
Coeur’s Rochester silver and gold mine in Nevada and its Kensington gold mine in Alaska continued to accelerate production rates during the quarter, Krebs reported.
“Despite experiencing power outages that resulted in unanticipated mill downtime during August, our San Bartolomé silver mine in Bolivia delivered consistent operational results,” he added.
The company expects production this year to total 18.5 to 19 million ounces of silver and 215,000 to 225,000 ounces of gold.
“As we look ahead to 2013, we expect silver and gold production to be consistent with 2011 and 2012 levels,” Kebs stated.