profits slip 80pc

Coeur D'Alene 3Q Profit Slips 80 Percent
Coeur D'Alene Mines 3rd-Quarter Profit Falls on Lower Production, Higher Costs; Shares Slip
November 02, 2007: 10:31 AM EST

NEW YORK (Associated Press) - Coeur d'Alene Mines Corp. on Friday said its third-quarter profit fell 80 percent, as costs rose and silver and gold production fell.

The company earned $3.6 million, or a penny per share, versus $18.4 million, or 6 cents per share, in the year-ago period.

The recent quarter included $2.5 million in costs to end mining activities at the company's Rochester, Nev., facility, which contributed to lower production.

Analysts polled by Thomson Financial expected the company to earn 6 cents per share in the quarter. Analyst estimates typically exclude one-time costs.

Production costs, which include labor, energy and other drilling expenses, rose 74.5 percent to $38.2 million from the year-ago period.

Revenue rose 4.5 percent to $52.9 million, from $50.6 million in the year-ago quarter.

The company produced 2.7 million ounces of silver in the quarter, compared with 3.3 million ounces in the year-ago period.

Coeur d'Alene mined 20,500 ounces of gold during the third quarter, compared to 30,000 ounces in the 2006 quarter.

Shares shed 13 cents, or 3.1 percent, to $3.72 in morning trading. Top of page