COEUR d'ALENE - Dennis E. Wheeler, the head of Coeur d'Alene Mines Corp., told shareholders they are now reaping the financial rewards of the strategic plan that was set in place more than three years ago.

During that time, Coeur has invested more than $2 billion in the development of three new, large and long-life precious metals mines, Wheeler said at the annual meeting Tuesday.

The three mines, Kensington gold, in Alaska; Palmarejo silver and gold, in Mexico; and San Bartolome silver, in Bolivia, "are in the beginning stages of delivering record sales and cash flow," he said.

In the second half of 2011, Coeur anticipates record gold production of more than 250,000 ounces and record silver production of 20 million ounces, he said.

That will grow Coeur's gold production 60 percent, he said.

Silver prices increased 83 percent in 2010, and are up 20 percent so far this year, currently hovering around $38 per ounce, he said.

Gold has reached beyond $1,500 per ounce, as investors worldwide have moved into precious metals as safe-haven assets.

"China and India are two of the largest consumers of gold and silver, with strong cultural attachments to precious metals and rising middle classes, and they will continue to be two of the dominant forces in the marketplace," Wheeler said.

He added, "Silver remains the world's most important, essential and widely-used metal, with new uses and expanded applications being developed constantly."

He said expectations are that industrial demand for silver will grow some 36 percent in the next five years.

He said this includes a robust increase in the manufacture of electrical contacts in uses like automobiles.

"The use of silver in photo-voltaic cells for alternative energy is dramatically increasing," he said. "So silver remains underpinned by both strong industrial demand and ongoing investor interest as a precious metal."

Coeur on Monday announced its highest first quarter production, metals sales and cash flow in the company's history.

Net metals sales for the quarter were $199.6 million. Operating cash flow was just more than $90 million, and adjusted earnings were $37.5 million, or 42 cents a share.