Coeur looks at share buybacks, dividends after 'huge' third quarter

By Aleesia Forni

Columbus, Ohio, Nov. 7 - Coeur d'Alene Mines Corp. is evaluating alternatives for returning capital to its shareholders, including dividends and share buy back, after a "huge third quarter," chief executive officer Mitchell J. Krebs said during the company's earnings conference call.

Coeur d'Alene reported record operating cash flow for the three months of $151 million, compared to $34.7 million during the same quarter last year.

The increase in cash flows "strengthened" the company's cash and cash equivalents to $207 million as of Sept. 30, Krebs said.

"As we continue generating significant free cash flow and achieve consistent performance from our operations, we believe we will be well positioned to invest in high-return internal and external growth opportunities, while also returning capital to our shareholders," Krebs said.

During the quarter, the company paid off its remaining $18 million of senior notes, leaving it with $128 million of remaining debt, which is "equivalent to less than three months of cash flow," Krebs said during the call.

Coeur reduced its debt to $146.7 million from $180.1 million on year ago.

This new figure includes the company's principal repayments of $6.9 million on its Kensington term facility, of which $82.8 million remains.

Coeur reported net income of $31.1 million, compared to a net loss of negative $22.6 million during last year's third quarter.

Coeur is a Coeur D'Alene, Idaho-based silver and gold producer.

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