Coeur d'Alene Mines Corp. (CDE) Trade Alert – CDE Reports 25% Increase in Q3 Silver Production, Lower First Nine Months Revenue and Production
Coeur d'Alene Mines Corp. (CDE) shares closed yesterday at 73 cents, up 10.61% from the previous close of 66 cents. Coeur d'Alene, through its subsidiaries, engages in the operation, ownership, development and exploration of silver and gold properties and companies located primarily in the United States, South America, Australia, Mexico and Africa.
The company recently announced a 25% increase in its third-quarter silver production to 3.1 million ounces compared to the second quarter. This increase is mainly a reflection of the silver production contribution from the company’s San Bartolomé mine.
According to Coeur d'Alene, performance at its San Bartolomé plant reached design capacity levels and its operation remains on target for nearly 3.2 million ounces of silver production this year and 9 million ounces in 2009.
Silver production during the first nine months of 2008 was nearly 8.0 million ounces, down 4.3% from the first nine months of last year. This lower production result is primarily due to the transition from mining to processing-only activities at the company’s Rochester mine in Nevada that took place in August of last year.
Coeur d'Alene also announced sales of metal for the first nine months of 2008 of $147.1 million, down from $155.4 million in the first nine months of 2007. The company’s net loss of $4.3 million during the first nine months of 2008 includes $23.3 million of pre-development costs and non-cash mark-to-market adjustments related to metal sales yet to be finalized with smelters.
However, the company’s cash costs remained competitive during the first nine months of 2008 despite inflationary pressures affecting many key inputs including diesel, labor and power. Cash costs averaged $4.99 per ounce of silver year-to-date, an increase of only 55 cents per ounce over the first nine months of last year.
Coeur d'Alene also explores for lead and zinc in its properties. It holds 100% interests in the Rochester mine located in northwestern Nevada; the Cerro Bayo mine in southern Chile; the Martha mine located in Santa Cruz, Argentina; the Endeavor mine situated in New South Wales, Australia; and the Broken Hill mine located in New South Wales, Australia.
The company also owns interests in the San Bartolome project in Bolivia; the Kensington property located to the north of Juneau, Alaska; the Palmarejo property in the Sierra Madre Occidental of northern Mexico; and other properties in the Lake Victoria Goldfields District of northern Tanzania.
In today's daily chart, CDE's Bollinger Bands indicate above normal volatility as reflected by an increase in distance between the upper and lower bands. Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend. MACD reflects a weak bullish signal, with the indicator trending above the 9-day moving average signal line but still below the 0 level, indicating bearish moving averages. With share prices currently below the stock's 13-day moving average, the bearish signal is more pronounced with decreasing moving averages.
