Coeur d'Alene Mines Corp. says net metal sales for the second quarter rose to $254.4 million, higher than $231 million in the second quarter of 2011 and $204.6 million in the first quarter of 2012.
The increase is due primarily to increased silver sales volumes and higher gold production at Coeur's mines in Kensington, Alaska and Rochester, Nev.
Average realized prices per ounce of silver and gold were $29.28 and $1,610, respectively, in the second quarter, which were 25 percent lower and 7 percent higher than the second quarter of 2011. Silver contributed 63.2 percent of the company's total metal sales in the second quarter compared with 68.7 percent a year ago.
Net income declined 40 percent to $23 million in the second quarter from $38.6 million in the same period of 2011.
After working capital changes, the company generated net cash of $113.2 million in the second quarter of 2012 compared with $111.1 million in the second quarter of 2011.
Coeur produced 4.9 million ounces of silver and 63,047 ounces of gold during the second quarter.
Coeur beefs up ownership of Huldra Silver
Coeur dAlene Mines said it will buy 1.85 million common shares of Huldra Silver Inc. for about $2 million.
Huldra Silver, headquartered in Vancouver, British Columbia, Canada, explores and mines silver at its Treasure Mountain property near Hope, B.C.
After the acquisition, Coeur will own about 3.75 million shares. Coeur believes it will control 12.7 percent of all Huldra shares on a fully diluted basis based on information provided to the company.
The acquisition is for investment purposes. Depending on the market and other conditions, Coeur said, it may increase or decrease its ownership or direction over the Huldra shares.
Headquartered in Coeur d'Alene, Coeur is the largest U.S.-based primary silver producer and a growing gold producer. The company owns and operates the mines in Alaska and Nevada along with mines in Bolivia, Mexico and Argentina.