Coeur d'Alene Mines' shares fall on 3Q loss
COEUR D'ALENE, Idaho (AP) — Shares of Coeur d'Alene Mines Corp. plunged Tuesday after it posted a third-quarter loss as production and sales of silver and gold dropped.
THE SPARK: Coeur d'Alene Mines said it lost $15.8 million, or 18 cents per share, in the third quarter. That compared with net income of $31.1 million, or 35 cents per share, in the third quarter of 2011.
Revenue fell 33 percent to $230.6 million.
The most recent results included a number of one-time items, including deferred taxes and non-cash fair value adjustments, which are driven primarily by a shift in gold prices. Excluding special items, the company reported adjusted earnings of $25.8 million, or 29 cents per share.
Analysts, on average, predicted earnings of 39 cents per share on revenue of $247.5 million. Such estimates typically exclude one-time items.
THE BIG PICTURE: Coeur d'Alene said the results were affected by problems in underground operations at its mine in the state of Chihuahua in northern Mexico that cut production while costs rose. The Coeur d'Alene, Idaho, company also recorded lower average prices for silver and gold.
The company trimmed its guidance for full-year production, saying it now expects 18.5 million to 19.0 million silver ounces and 215,000 to 225,000 gold ounces. In August the company expected to achieve the high end of its 2012 silver and gold production guidance of 18.5 million to 20 million silver ounces and 210,000 to 230,000 gold ounces.
SHARE ACTION: Shares of Coeur d'Alene fell $6.59, or 22 percent, to $23.78 in midday trading. The price has ranged from $15.15 to $31.97 per share in the past 52 weeks.