Coeur d'Alene Mines Corp (CDE)

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Updates with more details, background, stock down)

NEW YORK, May 8 (Reuters) - Coeur d'Alene Mines Corp. on Monday posted a first-quarter profit after a year-earlier loss, due in part to an increase in silver production and higher silver and gold prices.

Net earnings were $14.3 million, or 5 cents per share, compared with a loss of $1.1 million, or nil per share, in the same quarter of 2005, said the company, based in Coeur d'Alene, Idaho.

The earnings were in line with the average of analysts polled by Reuters Estimates.

With the price of silver, gold and other metals soaring, Coeur reported a 39 percent increase in metal sales to $44.9 million. Silver, which was selling for around $7 per ounce a year ago, has doubled and recently hit a 23-year high of $14.68.

"The company reported superlative income due largely to a 31 percent increase in silver production from continuing operations," said Dennis Wheeler, chairman, president and chief executive officer.

He said that in addition to higher sales and production, the company was able to reduce the cash cost per ounce of silver to below $4.00 for continuing operations.

In an update on its San Bartolome, silver-mining project in Bolivia, Coeur said capital investment

totaled $1.9 million during the quarter. The company is aiming to complete the project and begin producing silver toward the end of 2007.

Last week, the company's stock plummeted on fears that the new Bolivian government might seize foreign mining operations after La Paz moved to nationalize the energy sector.

The government later appeared to rule out nationalizing mines, but did say it would take more control and that foreign companies would have to pay higher taxes.

Coeur did not mention such concerns in its earnings release.

The company recently restated its first-quarter 2005 results because it inadvertently under-reported the quantity of ore tons delivered to its Rochester, Nevada, leach pad.

Coeur stock was down 18 cents, or 2.9 percent, at $6.03 on the New York Stock Exchange in Monday morning trading.