Coeur Reports Strong Second Quarter Financial and Operating Results; Provides Positive Update to 2012 Guidance
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Aug. 7, 2012-- Coeur d'Alene Mines Corporation (NYSE:CDE, TSX:CDM) produced 4.9 million ounces of silver and 63,047 ounces of gold during the second quarter, which resulted in $254.4 million in sales, $88.4 million in operating cash flow,1 and a $47.1 million increase in cash, cash equivalents and short-term investments to $200.3 million.
The Company expects to achieve the high-end of its 2012 silver and gold production guidance of 18.5 - 20.0 million silver ounces and 210,000 - 230,000 gold ounces. The Company also expects to achieve the low-end of its 2012 guidance for cash operating costs1 per silver ounce of $6.50 - $7.50.
Second Quarter Highlights
Silver production totaled 4.9 million ounces, equal to first quarter
Gold production totaled 63,047 ounces, up 44% from the first quarter.
Net metal sales totaled $254.4 million, up 24% from the first quarter.
Operating cash flow1 totaled $88.4 million, down 6% from the first quarter. Including changes in working capital, net cash from operating activities totaled $113.2 million compared to $17.0 million in the first quarter.
Consolidated cash operating costs1 totaled $6.41 per silver ounce, up slightly from the first quarter.
Cash operating costs1 per gold ounce declined 50% from the first quarter to $1,348 and are expected to reach $900 by year-end.
Adjusted earnings1 totaled $28.0 million, or $0.31 per share, compared to $41.5 million, or $0.46 per share, in the first quarter. Net income totaled $23.0 million, or $0.26 per share, compared to $4.0 million, or $0.04 per share, in the first quarter.
Announced a share repurchase program of up to $100 million of the Company's common stock and finalized a $100 million, four-year revolving credit facility.
Cash, cash equivalents and short-term investments totaled $200.3 million as of June 30, 2012, $47.1 million higher than March 31, 2012.
"The Company is performing according to plan, which is leading to strong financial performance," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "The Board of Directors' authorization in June
to repurchase up to $100 million of the Company's common stock reflects our confidence in the Company's underlying cash flow and the long-term value the Company represents for shareholders," he said.
"Our Kensington gold mine in Alaska nearly tripled its production and cut its operating costs per ounce in half during the second quarter with the mine's return to full production, which represent key milestones for this important operation. We also saw higher silver and gold production levels and substantially lower costs at our Rochester mine in Nevada as a result of an expansion that took place in 2011. Our Palmarejo silver and gold mine in Mexico and our San Bartolomé silver mine in Bolivia both delivered consistent results during the second quarter. Despite industry-wide cost pressures, the Company delivered flat cash operating costs1 per ounce during the second quarter, due mostly to efficiency improvements achieved at its key operations," Krebs said.