Coeur d’Alene not too big or small, but just right: CEO
4:37 PM, E.T. | November 30, 2011Best of BNN
Coeur d’Alene Mines Corporation says it’s not too big, and not too small.
CEO Mitchell Krebs tells BNN the largest American-based primary silver producer’s size and scale has been elevated over the last few years. It now has six mines in Mexico, Bolivia, Argentina, Australia and the U.S. He says the producer used to have smaller mines with shorter mine lives that led to erratic performance from quarter to quarter.
“What we have now are a lot longer mine lives -- ten years plus. We’re now at a size with a $2.5 billion market cap -- that really is a nice size, we’re not too small, but it’s not too big, there’s really there’s a lot of opportunity for growth, but we have the mass there to be able to do significant things,” he says.
And what he calls “loose monetary policies” are driving the prices of precious metals right now, he says. Inflation in South America, where it does business, has not kept up with the price of silver, Krebs says. “We’re seeing continued margin expansion. We do hedge a fair amount of our FX exposure, particularly in Mexico and Argentina, as well,” he says.