Precious-metals miner Coeur d'Alene Mines reported a net loss of $5,4-million for the second quarter, mainly owing to $10,7-million in predevelopment expenses at its Palmarejo silver project, in Mexico, the company said on Friday.
Excluding these costs, which will be capitalised in future quarters now that a feasibility study has been completed for the project, the company posted adjusted net income of $5,3-million.
Second-quarter metals sales declined slightly, to $50,02-million, from $51,66-million a year earlier.
Coeur began production at its new San Bartolome mine, in Bolivia, during the second quarter, although ramp-up had progressed more slowly than expected.
Nonetheless, it was confident that the start-up issues at San Bartolome would be resolved during the third quarter, and expected to begin production at Palmarejo in March next year, chairperson, president and CEO Dennis Wheeler said.
The company's Kensignton gold mine, in Alaska, is also expected to come on stream later in 2009.
Kensington is expected to produce up to 140 000 oz/y of gold and contains approximately 1,4-million ounces of gold mineral reserves.