* Third-quarter adjusted profit $0.29 vs est $0.43
* Total metal sales $230.6 mln, down 33 pct
* Cuts upper end of full-year silver output forecast by a
Nov 6 Coeur d'Alene Mines Corp, the
largest U.S.-based primary silver producer, reported a
lower-than-expected quarterly profit as production fell 10
percent, and the company said operating costs will remain high,
sending its shares down 22 percent.
Gold and silver miners across the globe have been struggling
with rising costs. Bigger rivals Newmont Mining Corp and
Canada's Barrick Gold Corp reported a sharp drop in
quarterly profit as costs jumped.
Coeur d'Alene said on Tuesday 2012 cash operating costs
would be at the high end of its forecast of $6.50 to $7.50 per
silver ounce. The company had said in August that costs would be
at the low end.
The company also cut the upper end of its silver production
outlook for the full year by a million ounces. It now expects to
produce 18.5-19 million ounces.
Silver output fell 10 percent to 4.4 million ounces in the
third quarter, with silver production at its flagship
silver-gold Palmarejo mine in Mexico sliding 19 percent. Gold
output at the mine fell 21 percent.
Operations at the mine were affected by unfavorable
underground conditions encountered during September and a change
in mining method, Coeur said. The company in August shut
production at the mine for two days after the death of a worker.
Coeur d'Alene, which also operates mines in Bolivia and the
United States, said operating costs at the Palmarejo mine rose
five times to $3.75 per silver ounce.
Average realized prices for silver fell 21 percent in the
quarter while those for gold fell 2 percent, Coeur said.
Coeur d'Alene reported a net loss of $15.8 million, or 18
cents per share, compared with a profit of $23 million, or 26
cents per share, a year earlier.
Excluding one-time items, it earned 29 cents per share.
Total metal sales fell 33 percent to $230.6 million.
Silver sales, which contributed 59 percent to total metal
sales, fell 27 percent.
Analysts, on average, had expected a profit of 43 cents per
share on sales of $246 million, according to Thomson Reuters
Coeur d'Alene shares, which have gained 86 percent in the
past three months, were down 22 percent at $23.76 in morning
trade on the New York Stock Exchange on Tuesday. They fell to a
two-month of $23.62 earlier.