Coeur d'Alene Mines Corp. has reported an 80 percent drop in third quarter earnings and declining production of silver and gold.
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The company's profits dropped 55 percent in the first nine months of the year compared to last.
Coeur Alaska, which owns the Kensington gold mine north of Juneau, is a subsidiary of the corporation.
The company's quarterly net income totaled $3.6 million, compared to net income of $18.4 million for the third quarter of 2006.
Although there was a 4.5 percent increase in quarterly revenue, $52.9 million compared to $50.6 million during last year's third quarter, that was offset by expenses of $2.5 million associated with ending mining activities at the company's Rochester, Nev., mine during the third quarter.
Revenue rose 3.9 percent in the first nine months of this year compared to 2006. Revenue was $155.4 million, compared to $149.5 million in the year-ago period.
Net income dropped 55 percent during the first nine months of this year. Net income was $29.6 million compared to net income of $65.3 million for the same period in 2006.
"During the recent quarter, we made substantial progress on all of the company's strategic initiatives that we believe will result in Coeur becoming the world's undisputed leader in silver," said Dennis E. Wheeler, chairman president and chief executive officer, in a press statement.
"Our liquidity position remains very strong, with $209 million in cash, equivalents and short-term investments," Wheeler said. "Together with cash flow from operations, we expect to complete the construction of the San Bartolome silver project, the Palmarejo silver and gold project, and the Kensington gold project without the need for additional outside capital."
At Kensington, the mill and related surface facilities are complete, as is the nearly two-and-a-half mile underground tunnel connecting the Kensington and the Jualin properties, where the mill and processing facilities are located.
The Kensington Mine is expected to produce 150,000 ounces of gold per year in its initial years at an estimated cash cost of $310 per ounce of gold, with an expected 10 to 15 year mine life.
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