That a CEO of a silver miner sees precious metals prices rising, especially on a day like today when silver hit a new 31 year high (and gold is at a record) is not surprising. Especially since that is precisely what happened: “The head of U.S. silver miner Coeur d’Alene Mines Corp said on Thursday that he “would not be surprised” if silver prices reached the mid-$40s per ounce and gold prices rose to $1,500 to $1,600 an ounce this year.” What is, however, surprising is that another prominent silver miner, Pan American silver, announced during its earning call that “it plans to produce between 23-24 million ounces of silver in 2011, down from 24.3 million ounces in 2010. The company said it expects to produce between 76,000-78,000 ounces of gold in 2011, down from the 89,555 ounces it produced last year.” So despite a record price in silver, the company is unable or unwilling to mine more to keep up with demand? Perhaps the peak [blank] crowd should take a long hard look at silver.
In an exclusive interview at the Reuters Mining and Steel Summit, Coeur Chief Executive Dennis Wheeler said heightened uncertainty in the world due to geopolitical turmoil and natural disasters, has increased demand for gold and silver as investment vehicles, and will continue to push prices higher.
And also from Reuters:
Pan American Silver said its fourth-quarter profit rose 67 percent on higher prices for all metals that it produces, but forecast lower gold and silver production levels next year.
Pan American said it plans to produce between 23-24 million ounces of silver in 2011, down from 24.3 million ounces in 2010. The company said it expects to produce between 76,000-78,000 ounces of gold in 2011, down from the 89,555 ounces it produced last year.
The Vancouver-based silver miner, which operates in Mexico, Peru, Bolivia and Argentina, posted net income of $46.4 million, or 43 cents per share, in the quarter ended Dec. 31.
This compared with $27.8 million, or 31 cents per share, in the fourth quarter of 2009.
Spot silver prices nearly doubled over 2010, rising from $16.86 to $30.86, as investors turned to precious metals as a safe haven from currencies.