Precious metals miner Hecla Mining Co's second-quarter profit missed analysts' estimates as silver production fell due to lower-than-expected ore grades.
The company, which mostly mines for silver in the United States and Mexico, said it continues to benefit from high silver margins even with increasing cost pressures in the industry.
The company's April-June income applicable to common shareholders rose to $33.2 million, or 11 cents a share, from $13.7 million, or 5 cents a share, last year.
Silver production fell 11 percent to 2.3 million ounces. However, revenue rose 33 percent to $117.9 million as realized silver prices soared 89 percent.
Silver cash costs, net of by-product credits, was 52 cents per ounce. The company expects cash costs to be about $1.00 per ounce of silver for 2011.
Analysts, on average, were expecting the company to earn 14 cents a share, on revenue of $121.1 million, according to Thomson Reuters I/B/E/S.
The Coeur d'Alene, Idaho-based company's shares closed at $6.66 on Monday on the New York Stock Exchange. (Reporting by Sumit Jha in Bangalore; Editing by Roshni Menon)