Coeur forecasts strong year ahead in silver, gold production
Coeur d'Alene Mines CEO Dennis Wheeler says his company's growth strategy is coming together "at a time when market conditions where precious metals are particularly favorable."
Author: Dorothy Kosich Posted: Tuesday , 12 May 2009
RENO, NV -
Coeur d'Alene Mines CEO Dennis Wheeler told analysts Monday that the Idaho-based silver miner expects to increase silver production 66% and gold production by 85% this year.
Coeur also reported a record 65% increase in silver production during the first-quarter 2009, a total of 3.9 million ounces. "We've got two new silver mines at Coeur, explosive growth, a rock solid balance sheet, and enjoy great silver and gold fundamentals," Wheeler declared.
Wheeler told analysts the company will drive cash operating costs down 11% and operating costs down 37%. "Margin expansion is the name of the game here, and we expect it to translate into better operating cash flow, $100 million for 2009, which would be a 733% increase over last year."
Coeur will complete its internal review of the Cerro Bayo mine plan later this year, Wheeler said, adding the U.S. Supreme Court is expected to soon render its decision on the Kensington gold mine project in Alaska.
He noted that the Supreme Court has requested some limited additional briefings. "Frankly we don't see this as any indication one way or the other after the legal team has review this matter as far as the eventual decision."
The company reported quarterly net income of $6.1 million or 1-cent per share for the first quarter of this year, up from $5.4 million (1-cent/sh) for the same quarter of 2008.