February 28, 2011 / 3:04 PM / 7 years ago

UPDATE 2-Coeur d'Alene profit up; to mine more gold, silver

* Q4 sales up 75 pct to $208 mln

* Sees big jump in gold, silver production in 2011

* Stock rises 12 pct (Adds CEO comments, stock move)

NEW YORK, Feb 28 (Reuters) - Coeur d‘Alene Mines Corp (CDE.N) reported sharply higher adjusted quarterly profit on soaring gold and silver prices, and raised its production targets for this year, sending its stock up 12 percent.

“This new year represents the first full year that all three of the company’s new anchor mines will be in operation at the same time,” said Chairman, President and Chief Executive Officer Dennis Wheeler. “As a result, we look ahead to a record year for silver and gold production, metal sales, and cash flow in sustained metals markets.”

In Monday morning trading on the New York Stock Exchange, Coeur shares were up $3.33 to $30.98.

In its earnings release, the company said that in 2011 it will benefit from a full year of production and cash flow from its San Bartolome mine in Bolivia, Palmarejo silver/gold mine in Mexico, and Kensington gold mine in Alaska.

In addition, it expects new production from its long-time flagship Rochester mine in Nevada.

For 2011, Coeur said it now expects to produce 20 million ounces of silver and 250,000 ounces of gold, up from 16.8 million ounces of silver and 157,061 ounces of gold in 2010.

Coeur, based in Coeur d‘Alene, Idaho, posted a net loss for the fourth quarter of $9.9 million due to noncash adjustments and deferred taxes.

Adjusted earnings rose to $49.9 million, or 56 cents per share, from $2.5 million a year earlier.

Metals sales rose 75 percent to $208 million as the price of gold rose 10 percent and the price of silver jumped 42 percent.

Gold and silver prices soared by 29 percent and 83 percent, respectively, in 2010.

“We remain bullish on both metals, given continued robust investment and monetary demand for both silver and gold, along with growing industrial demand,” Wheeler said in a statement. (Reporting by Steve James, editing by Gerald E. McCormick and John Wallace)

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