Despite a 42% boost in silver production to 3 million oz.,
The company reported a loss of US$10.5 million (or 28 per share) for the period, compared with a loss of US$9.6 million (44 per share).
Higher production was reported at both the Rochester mine in Nevada and the Silver Valley mine in Idaho.
Rochester contributed 1.8 million oz. silver, along with 18,900 oz. gold during the second quarter, compared with 1.4 million oz. silver and 16,500 oz. gold in the corresponding period of 1999. Cash operating costs dropped to US$3.78 per oz. silver, compared with US$4.02. The mine’s performance benefited from several improvements made in the first quarter, including upgrading the crushing and conveying circuit.
At Rochester, Coeur recently completed a program of 114 reverse-circulation holes totalling more than 40,000 ft., results for which are pending.
At Silver Valley, quarterly production amounted to 906,000 oz. Coeur now owns the property outright, having acquired the remaining half-interest from Asarco in 1999.
Total cash costs at the operations were US$4.79 per oz. silver, compared with US$5.07 per oz. a year ago. Coeur expects the improved results to continue as underground development provides greater access to higher-grade material.
A 9,000-ft. drilling program at the West Argentine area of the Galena mine, part of the Silver Valley operation, is under way in an attempt to boost production capacity to 5 million oz. per year.
The company posted less impressive results at its other two mines in Chile. Production at Fachinal declined to 295,700 oz. silver and 4,000 oz. gold in the second quarter, compared with 314,600 oz. silver and 6,900 oz. gold a year ago. Total cash costs swelled to US$379 per oz. gold-equivalent, up from US$266. The shortfall was largely due to severe weather that affected much of southern Chile and resulted in fewer tons mined. At one point, the company was forced to suspend operations completely on account of the weather.
Gold production at the Petorca mine fell to 6,500 oz., from 7,800 oz., though silver production was up slightly to 17,300 oz. The total cash cost per oz. gold-equivalent was US$339 per oz., compared with US$264 per oz.
The company is still evaluating the recently discovered San Lorenzo gold-copper deposit, where surface mining is expected to start in the third quarter.
Coeur’s 25% stake in the Yilgarn Star mine, in Australia, resulted in lower production of 6,500 oz., though cash costs declined sharply to US$201 per oz. The company plans to resume drilling at the Cheritons Find-Redwing prospect, 20 miles south of the mine this year.
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