Coeur d’Alene trims losses

Vancouver Despite a drop in production, the World’s largest primary silver producer managed to lose less money in the third quarter ended Sept. 30.

Coeur d’Alene Mines (CDE-N) recorded a net loss of US$17.9 million, or US$0.10 a share, compared with a net loss of US$12.3 million, or US$0.14 in the corresponding period of 2002. The results include US$12.5 million for interest expense and one-time charges. Excluding the special items, the company tallied a loss of US$5.4 million, or US$0.03 a share.

Sales rang in at US$23.4 million, down from the US$24.4 million tallied a year earlier as a planned suspension of operations at its Silver Valley in Idaho took its toll on the bottom line.

“At Silver Valley, our oldest and most long-lived reserve, we have initiated the long-term expansion plan designed to increase reserves and production, and to lower operating costs," says company CEO, Dennis Wheeler. "By 2006, we expect a record seven million ounces of silver production from Silver Valley, with average cash costs of below $4 per ounce.”

Production during the quarter came in at 3.3 million oz of silver and 31,000 oz of gold, compared with 3.8 million oz of silver and 34,000 oz of gold in last year’s third quarter. Coeur realized an average silver price of US$4.77 per oz in the quarter, compared to last year’s price of US$4.65 per oz. For its gold sales, the company realized an average price of US$353 per oz, up significantly from the US$315 per oz realized in the same period a year ago.

"Our South American mines — the Cerro Bayo (Chile) and Martha (Argentina)– continued to contribute strong production and cash flow, by increasing their silver equivalent ounces over last year’s third quarter and first nine months, at an extremely low production cost," adds Wheeler. "Because of our exploration success around these two new and highly prospective properties, we have increased our exploration budget in South America by 35% for the remainder of this year."

At Sept.30, Coeur D’Alene held a position of US$94.2 million, thanks in large part to the completion of a US$76 million share offering comprising 23.7 million shares.