Coeur D'Alene Mines expects 3Q lossAssociated Press 10.13.08,...

Coeur D'Alene Mines expects 3Q loss
Associated Press 10.13.08, 1:03 PM ET

COEUR D'ALENE, Idaho -

Couer D'Alene Mines Corp. said Monday it expects to post a net loss in the third quarter because of lower silver prices and operational issues at mines in Chile and Bolivia.

The company confirmed its production guidance of about 13 million ounces of silver for 2008, although revenue for the quarter will fall below the second quarter, reflecting lower silver prices.

For the second quarter, Couer D'Alene mines posted revenue of $50 million and a loss of $5.4 million, or 1 cent per share.

The company plans to announce more details about its operations Oct. 31 when the company announces third-quarter results.

On average, three analysts surveyed by Thomson Financial forecast a quarterly profit of 1 cent per share for the September quarter.

The mining company also said it has completed a comprehensive review of cost-reduction measures which it has started implementing with a 50 percent reduction in the work force at its subsidiary in Alaska.

In an updated production report, the Couer D'Alene, Idaho-based mining company said high startup costs at its San Bartolome mine in Bolivia are expected to decline when full production gets under way sometime in the fourth quarter.

The mine has produced 730,000 ounces year-to-date with a projected total of 3.2 million ounces in 2008.

About $140 million in capital expenses has been allotted to the Palmarejo mine in Chile, which is on schedule for to start production in the first quarter. Coeur D'Alene said it expects to put more money into construction activities through the end of the year.

Shares of Couer D'Alene fell 6 cents, or 4.4 percent, to $1.29 in midday trading.