Boyd, Roosen, Quartermain: It takes grit, invention, luck to make the big time
Mining industry legends discuss the backstories on their multibillion-dollar successes.
USA’s largest primary silver producer, Coeur d’Alene Mines (NYSE:CDE)(TSX:CDM), reported a second-quarter profit on Tuesday that beat analysts’ estimates thanks to cost cutting and improved gold production results at its Kensington gold mine in Alaska.
Net profit for the period fell by 40% to $23 million or 24 cents a share, while adjusted earnings were down 52% at $28 million or 31 cents per share. Despite the low numbers Coeur still managed to be better than Wall Street’s expectations of 23 cent a share on revenue expected at $222 million for the second quarter of 2012.
The miner, which operates mines in Bolivia, Mexico and the United States, said it produced 4.9 million ounces of silver and 63,047 oz of gold during the period, which resulted in $254 million in revenue and $88 million in operating cash flow.
Gold production was largely the outcome of Coeur’s gold mine in Alaska, coming on line ahead of schedule and tripling its production, while cutting in half its cash cost per ounce.
The miner also announced it had agreed to acquire 1,851,852 common shares of Huldra Silver Inc. at $1.08 per share, for total consideration of $2 million.
After the purchase, Coeur will own and control 3,756,852 shares, representing about 8.8% of Huldra stock.
