UPDATE 1-Silver miner Coeur's profit drops but beats Street view

Tue Aug 7, 2012 8:57am EDT

* Adjusted second-quarter profit 31 cents/share vs Wall St view 20 cents

* Revenue rises to $254.4 million

* Stock up 5 percent

Aug 7 (Reuters) - Coeur d'Alene Mines Corp's quarterly profit fell 40 percent on a sharp drop in the price of silver, but the results still beat Wall Street estimates, sending the company's shares up 5 percent.

Second-quarter net earnings fell to $23.0 million, or 26 cents per share, from $38.6 million, or 43 cents per share, a year earlier, the Idaho-based company said.

But adjusted for certain items, the profit was 31 cents per share. On that basis, it beat the analysts' average estimate of 20 cents, according to Thomson Reuters I/B/E/S.

Revenue rose to $254.4 million from $231.1 million, said Coeur, which operates mines in Bolivia, Mexico and the United States.

During the quarter, the price of silver fell almost 15 percent to $27.44 per ounce, according to Thomson Reuters data.

In May, the company, whose income comes mostly from silver mining, said its Kensington gold mine in Alaska was back in production ahead of schedule and that it expected a "robust" second quarter and full-year performance.

In premarket trading, Coeur stock was 5 percent higher at $18.30.

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