Prior to changes in working capital, Coeur generated $88.4 million in operating cash flow 1 in the second quarter of 2012 compared to $115.8 million a year ago. After working capital changes, the Company generated net cash from operating activities of $113.2 million in the second quarter of 2012 compared to $111.1 million in the second quarter of 2011.
Consolidated cash operating costs 1 totaled $6.35 per silver ounce for the first half of 2012 compared to $5.69 per silver ounce for the first half of 2011. These higher unit cash operating costs 1 are due primarily increased costs of consumables at San Bartolomé in 2012, higher maintenance costs at Palmarejo, and higher costs at Rochester in 2012 due to the resumption of active mining late in 2011.
Coeur reports a non-U.S. GAAP metric of adjusted earnings 1 as a measure of operating income, which excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. Second quarter 2012 adjusted earnings 1 were $28.0 million, or $0.31 per share. On a U.S. GAAP basis, the Company realized net income of $23.0 million, or $0.26 per share, in the second quarter compared with net income of $38.6 million, or $0.43 per share, in the second quarter of 2011. The earnings reflect non-cash fair value adjustments that increased net income by $16.0 million and decreased net income by $12.4 million in the three months ended June 30, 2012 and 2011, respectively. These fair value adjustments are driven primarily by changing gold prices which impact the estimated future liabilities related to the Palmarejo gold production royalty obligation.
On June 7, 2012, Coeur announced a share repurchase program of up to $100 million of the Company's common stock. Since the end of the quarter, the Company has finalized a $100 million, four-year revolving credit facility and has provided notice to repay from existing cash the remaining outstanding $68.0 million balance of the Kensington term loan facility.