Coeur has record setting 2011

By February 23, 2012Energy & Mining, Syndicated

Coeur d’Alene Mines Corporation set new records for production, metal sales, and cash flow in 2011.

The Idaho-based company, which owns the Kensington Mine near Juneau, released year-end financial results today (Thursday).

Company-wide metal sales nearly doubled from 2010 to $1-billion dollars. Gold production surpassed 220,000 ounces – an all-time high and a 40 percent increase from 2010. Silver production also set a record at more than 19.1 million ounces – a 14 percent jump from the previous year.

Coeur’s profits from the Kensington Mine were $49.5-million dollars last year – its first full year in production. Metal sales from the Berners Bay mine totaled $151.2-million dollars, offset by $101.7-million in operating costs. Gold production at the mine more than doubled to 88,420 ounces.

As KTOO previously reported, production levels at Kensington have slowed since November to allow for an expansion of underground development activities. Chief Operating Officer Leon Hardy told a conference call for investors that Coeur is focused on long-term stability at the mine.

“Through our accelerated development in the underground operations, we are opening up a new mining area in the lower region of the deposit to compliment the mining from the upper region,” Hardy said. “We expect to have four to six working faces in each of the two regions to enhance our mining flexibility.”

Hardy said new surface facilities at Kensington, including a new dormitory and kitchen, are now in use. An expanded warehouse and administrative offices are currently under construction.

Kensington also has a new general manager, Wayne Zigarlick, who’s been on the job for about a month. He had been assistant general manager and has worked at the mine since March 2011. Previous GM John Kinyon lasted less than a year.

Coeur d’Alene Mines also has operations in Bolivia, Mexico and Nevada. The company’s stock price was up 18 cents on Thursday to $29.32 a share.

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