Administrators for Coeur d'Alene Mines have announced strong sales numbers for this year's second quarter, and they anticipate the addition of the Kensington Gold Mine will help keep those numbers up.
According to the quarterly report, Coeur had "record metal sales" of $101 million for April through June, about 49 percent higher than those months produced last year and 15 percent higher than 2010's first quarter.
Gold production is 23,124 ounces, 68 percent higher than last year's second quarter. Silver production is 4.2 million ounces, 7 percent higher than last year.
These productions have helped generate an operating cash flow of $32.5 million, up 116 percent from last year's second quarter.
According to the report, such increases are "aided by strong production and robust metal prices."
"Coeur made significant progress this quarter, and we are pleased to have achieved the highest metal sales and operating cash flow in company history," said Dennis E. Wheeler, Coeur's chairman, president and chief executive officer.
These quarterly numbers only reflect the operations of the Palmarejo mine in Mexico and its San Bartolome operation in Bolivia. Tony Ebersole, Coeur's director of corporate communications, said Kensington began production at the end of the second quarter. Its sales will be recorded in the third quarter report.
Ebersole is optimistic about Kensington's gold production prospects. "It has a design capacity of 1,250 tons per day," said Ebersole. He said the mine has already produced approximately 50,000 ounces of gold.
He said two shipments from Kensington have already been made to the China National Gold Corp. The Chinese company will receive approximately one-half of the gold concentrates produced at Kensington, per the terms of a contract with Couer.
"It's been doing so well," he said.
"As the third of three new, long-life, precious metals mines comes on-stream, our strategy has us well-positioned to take advantage of the continued strength in precious metal prices," Wheeler said. "The successful and early startup of our Kensington gold mine in Alaska, together with Palmarejo and San Bartolome should continue to deliver record growth in metal sales and cash flow for shareholders."
According to the report, Kensington is expected to increase the company's 2010 gold production by 135 percent over last year's levels.
Ebersole said that the combination of all the company's mines have a target for the year of approximately 170,000 ounces of gold and 17.3 million ounces of silver.
Contact Jonathan Grass at 523-2276 or email@example.com.