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Coeur d'Alene reports 1Q loss but production soars

Coeur d'Alene Mines Corp. on Monday reported a first-quarter net loss even as gold production soared from a newly opened mine.
/ Source: The Associated Press

Coeur d'Alene Mines Corp. on Monday reported a first-quarter net loss even as gold production soared from a newly opened mine.

The company posted a net loss of $8 million, or 10 cents per share, compared with net income of $6.1 million, or 10 cents per share, in the year-ago period.

The latest quarter included a $7.9 million charge for the elimination of debt.

Sales of metal increased 94 percent to $87.5 million during the quarter from $45 million in the year-ago period.

Analysts surveyed by Thomson Reuters expected a net loss of 10 cents per share on revenue of $96.3 million.

Coeur d'Alene said gold production for the quarter totaled 25,782 ounces compared with 3,791 ounces in the year-ago period.

The company said production at its Palmarejo mine in Mexico, which opened in April 2009, totaled 22,577 ounces in the quarter. Production is expected to reach 109,000 ounces this year in the mine's first full year of operation, the company said.

The company said completion of its newest mine, the Kensington gold mine in Alaska, remains on track for production to start in July with output this year targeted to reach 50,000 ounces.

Coeur d'Alene shares rose 62 cents, or 3.8 percent, to $16.98 in afternoon trading.