Coeur d�Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC)
today announced an all-time first quarter production record of 3.9
million ounces of silver during the first quarter of 2009. This
represents a 65% increase in silver production compared to last
year�s first quarter and was largely driven by new ounces of silver
production from the new San Bartolom� silver mine in Bolivia. In
addition to this significant production growth in the first
quarter, the Company commenced production at its Palmarejo
silver/gold mine in Mexico. This represents the Company�s second
major new mine to begin production within the last nine months.
�The impact of Coeur�s new mines is now beginning to be
reflected in the Company�s quarterly results, which we expect will
lead to a 66% increase in total silver production and a 85% jump in
gold production this year,� said Dennis E. Wheeler, Chairman,
President and Chief Executive Officer. �With the on-time and
on-budget completion of Palmarejo � one of the largest new
silver/gold mines in the world � Coeur�s heaviest periods of
capital investment in our two-year growth strategy plan are now
behind us. As Palmarejo ramps up and San Bartolom� continues to
perform consistently, we look forward to the transition into
positive and significant cash flow generation.�
Palmarejo Commences Production
On Schedule and On Budget
The Palmarejo silver and gold mine in northern Mexico poured its
first silver and gold in late March and made its first shipment in
mid-April. The mine continues to ramp up and the Company expects
Palmarejo to reach full production capacity in July. Production
during the reminder of 2009 is expected to reach 5.3 million ounces
of silver and 72,000 ounce of gold. Average cash operating costs
this year are expected to be approximately ($0.50) per ounce of
silver. Capital expenditures during the first quarter totaled $65.5
million.
During the quarter, Palmarejo earned the Socially Responsible
Business Distinction Award for 2008 from the Mexican Center for
Philanthropy (CEMEFI) for the mine�s demonstrated excellence in
social responsibility during its development and construction.
CEMEFI represents over 170 Mexican charitable foundations and
promotes corporate social investment. The award is a national
recognition of Coeur Mexicana and its ongoing contributions to the
community through its strategies and policies.
Strong and Consistent Quarter
of Performance at San Bartolom�
The Company�s San Bartolom� mine in Bolivia, the world�s largest
pure silver mine, produced 2.1 million ounces of silver in the
recent quarter at a cash operating cost of $6.74 per ounce. In
2009, the mine�s first full year of production, it is expected to
produce approximately 9.0 million ounces of silver at an average
cash operating cost of $6.50 per ounce.
Summary of Company
Liquidity
Coeur ended the first quarter with cash and equivalents of $38.1
million. During the quarter, capital expenditures totaled $78.3
million. Operating cash flow during the first quarter totaled $6.8
million3. The Company expects full-year operating cash flow of
approximately $100 million based on current prices. This expected
growth in operating cash flow during the remaining three quarters
of 2009 reflects the significant contribution from the new
Palmarejo silver and gold mine. Between existing cash and
equivalents and expected operating cash flow during the remainder
of the year, the Company believes its liquidity position is
sufficient.
About Coeur
Coeur d�Alene Mines Corporation is one of the world�s leading
silver companies and also a significant gold producer. Coeur will
have its first full year of production this year at the world�s
largest pure silver mine - San Bartolom� in Bolivia � and began
production in March at another world-leading silver mine �
Palmarejo in Mexico. The Company also operates underground mines in
southern Chile and Argentina and one surface mine in Nevada; and
owns non-operating interests in two low-cost mines in Australia.
The Company also owns a major gold project - Kensington in Alaska -
and conducts exploration activities in Argentina, Chile and Mexico.
Coeur common shares are traded on the New York Stock Exchange under
the symbol CDE, the Toronto Stock Exchange under the symbol CDM,
and its CHESS Depositary Interests are traded on the Australian
Securities Exchange under symbol CXC.
Recent photos of projects and other information can be accessed
through company website at www.coeur.com
Conference Call
Information
Coeur will hold a conference call to discuss the Company's first
quarter 2008 results at 1:00 p.m. Eastern time on May 11, 2009. To
listen live via telephone, call (866) 853-4681 (US and Canada) or
(660) 422-4718 (International). The conference ID number is
95673333. The conference call and presentation will also be webcast
on the Company's web site www.coeur.com. A replay of the call will
be available through May 18, 2009. The replay dial-in numbers are
(800) 642-1687 (US and Canada) and (706) 645-9291 (International)
and the access code is 95673333. In addition, the call will be
archived for a limited time on the company�s web site.
Non-GAAP Measures
We supplement the reporting of our financial information
determined under generally accepted accounting principles (GAAP)
with certain Non-GAAP financial measures, including cash operating
costs. We believe that these adjusted measures provide meaningful
information to assist management, investors and analysts in
understanding our financial results and assessing our prospects for
future performance. We believe these adjusted financial measures
are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We also provide the
amount of our operating cash flow to supplement our cash flow
determined under GAAP. We define operating cash flow as cash flow
from operations (US GAAP) less working capital changes as set forth
in cash flow statement. We believe operating cash flow is an
important measure in assessing the Company's overall financial
performance. The following table provides a reconciliation of
operating cash flow to cash provided by (used in) operating
activities:
� Three Months Ended March 31,
2009
�
2008
(In thousands) � Cash provided by/(used in) operations: 1,603
(7,649 ) Subtract changes in operating assets and liabilities:
Receivables and other current assets 2,653 (14,298 ) Inventories
(5,162 ) 4,597 Accounts payable and accrued liabilities
(2,710 ) (9,147
) OPERATING CASH FLOW 6,822 11,119 �
Cautionary Statement
This press release contains forward-looking statements within
the meaning of securities legislation in the United States, Canada,
and Australia, including statements regarding anticipated operating
results. Such statements are subject to numerous assumptions and
uncertainties, many of which are outside the control of Coeur.
Operating, exploration and financial data, and other statements in
this presentation are based on information that Coeur believes is
reasonable, but involve significant uncertainties affecting the
business of Coeur, including, but not limited to, future gold and
silver prices, costs, ore grades, estimation of gold and silver
reserves, mining and processing conditions, construction schedules,
currency exchange rates, and the completion and/or updating of
mining feasibility studies, changes that could result from future
acquisitions of new mining properties or businesses, the risks and
hazards inherent in the mining business (including environmental
hazards, industrial accidents, weather or geologically related
conditions), regulatory and permitting matters, risks inherent in
the ownership and operation of, or investment in, mining properties
or businesses in foreign countries, as well as other uncertainties
and risk factors set out in filings made from time to time with the
SEC, the Canadian securities regulators, and the Australian
Securities Exchange, including, without limitation, Coeur�s reports
on Form 10-K and Form 10-Q. Actual results, developments and
timetables could vary significantly from the estimates presented.
Readers are cautioned not to put undue reliance on forward-looking
statements. Coeur disclaims any intent or obligation to update
publicly such forward-looking statements, whether as a result of
new information, future events or otherwise. Additionally, Coeur
undertakes no obligation to comment on analyses, expectations or
statements made by first parties in respect of Coeur, its financial
or operating results or its securities.
Donald J. Birak, Coeur's Senior Vice President of Exploration,
is the qualified person responsible for the preparation of the
scientific and technical information concerning Coeur's mineral
projects in this press release. For a description of the key
assumptions, parameters and methods used to estimate mineral
reserves and resources, as well as a general discussion of the
extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political,
marketing or other relevant factors, please see the Technical
Reports for each of Coeur's properties as filed on SEDAR at
www.sedar.com.
Cautionary Note to U.S. Investors � The United States Securities
and Exchange Commission permits U.S. mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce. We use
certain terms in this press release, such as �measured,�
�indicated,� and �inferred� �resources,� that are recognized by
Canadian and Australian regulations, but that SEC guidelines
generally prohibit U.S. registered companies from including in
their filings with the SEC. U.S. investors are urged to consider
closely the disclosure in our Form 10-K which may be obtained from
us, or from the SEC�s website at http://www.sec.gov/edgar.shtml
The following table presents information by mine and
consolidated sales information for the three-month periods ended
March 31, 2009 and 2008:
� Three Months Ended March 31, 2009 � 2008
San Bartolom�
Tons milled 363,779 - Ore grade/Ag oz 6.80 - Recovery/Ag oz 85.4% -
Silver production ounces 2,113,551 - Cash operating costs/oz $6.74
- Cash cost/oz $8.17 - Total cost/oz $10.62 -
Martha Tons
milled 27,817 8,977 Ore grade/Ag oz 31.69 74.46 Ore grade/Au oz
0.041 0.081 Recovery/Ag oz 91.7% 97.3% Recovery/Au oz 84.4% 89.9%
Silver production ounces 808,007 650,636 Gold production ounces 973
654 Cash operating cost/oz $5.74 $5.98 Cash cost/oz $6.21 $6.67
Total cost/oz $7.62 $7.96
Cerro Bayo Tons milled - 91,517
Ore grade/Ag oz - 5.10 Ore grade/Au oz - 0.123 Recovery/Ag oz -
93.0% Recovery/Au oz - 90.2% Silver production ounces - 434,030
Gold production ounces - 10,129 Cash operating cost/oz - $1.25 Cash
cost/oz - $1.25 Total cost/oz - $7.65
Rochester(A) Silver
production ounces 469,861 680,510 Gold production ounces 2,818
5,851 Cash operating cost/oz $2.82 $(2.18) Cash cost/oz $3.36
$(1.26) Total cost/oz $4.44 $(0.24)
Broken Hill Tons milled
365,193 500,970 Ore grade/Ag oz 1.47 1.04 Recovery/Ag oz 72.7%
74.3% Silver production ounces 389,410 386,481 Cash operating
cost/oz $3.45 $3.72 Cash cost/oz $3.45 $3.72 Total cost/oz $5.37
$5.49
Endeavor Tons milled 166,971 247,163 Ore grade/Ag oz
1.19 1.63 Recovery/Ag oz 71.5% 56.8% Silver production ounces
141,814 228,499 Cash operating cost/oz $4.94 $2.35 Cash cost/oz
$4.94 $2.35 Total cost/oz $7.52 $4.22
CONSOLIDATED PRODUCTION
TOTALS Silver ounces 3,922,643 2,380,156 Gold ounces 3,791
16,634 Cash operating cost/oz $5.67 $2.07 Cash cost per oz/silver
$6.61 $2.52 Total cost/oz $8.63 $4.80
CONSOLIDATED SALES
TOTALS (B) Silver ounces sold 3,607,807 2,412,317 Gold ounces
sold 5,096 14,762 Realized price per silver ounce $12.48 $18.45
Realized price per gold ounce $876 $965 � � (A) The leach cycle at
Rochester requires 5 to 10 years to recover gold and silver
contained in the ore. The Company estimates the ultimate recovery
to be approximately 61.5% for silver and 93% for gold. However,
ultimate recoveries will not be known until leaching operations
cease which is currently expected to continue through 2014. Current
recovery may vary significantly from ultimate recovery. See
Critical Accounting Policies and Estimates � Ore on Leach Pad. �
(B) Units sold at realized metal prices will not match reported
metal sales due primarily to the effects on revenues of
mark-to-market adjustments on embedded derivatives in the Company�s
provisionally priced sales contracts. �
�Operating Costs per Ounce� and "Cash Costs per Ounce" are
calculated by dividing the operating cash costs and cash costs
computed for each of the Company's mining properties for a
specified period by the amount of gold ounces or silver ounces
produced by that property during that same period. Management uses
cash operating costs and cash costs per ounce as key indicators of
the profitability of each of its mining properties. Gold and silver
are sold and priced in the world financial markets on a U.S. dollar
per ounce basis.
�Cash Operating Costs� and "Cash Costs" are costs directly
related to the physical activities of producing silver and gold,
and include mining, processing and other plant costs, third-party
refining and smelting costs, marketing expense, on-site general and
administrative costs, royalties, in-mine drilling expenditures that
are related to production and other direct costs. Sales of
by-product metals are deducted from the above in computing cash
costs. Cash costs exclude depreciation, depletion and amortization,
accretion, corporate general and administrative expense,
exploration, interest, and pre-feasibility costs. Cash operating
costs include all cash costs except production taxes and royalties,
if applicable. Cash costs are calculated and presented using the
"Gold Institute Production Cost Standard" applied consistently for
all periods presented.
Total operating costs and cash costs per ounce are Non-GAAP
measures and investors are cautioned not to place undue reliance on
them and are urged to read all GAAP accounting disclosures
presented in the consolidated financial statements and accompanying
footnotes. In addition, see the reconciliation of cash costs to
production costs under �Reconciliation of Non-GAAP Cash Costs to
GAAP Production Costs� set forth on the following page.
The following table presents a reconciliation between Non-GAAP
cash operating costs per ounce and cash costs per ounce to
production costs applicable to sales including depreciation,
depletion and amortization, calculated in accordance with U.S.
GAAP:
� � � � � � �
THREE MONTHS ENDED MARCH 31,
2009
(In thousands except ounces and
per ounce costs)
�
San
Martha
Cerro Bayo
Rochester
Broken Hill
Endeavor
Total
Bartolom�
� Production of silver (ounces) 2,113,551 808,007 - 469,861 389,410
141,814 3,922,643 Cash operating costs per ounce $ 6.74 $ 5.74 $ -
$ 2.82 $ 3.45 $ 4.94 $ 5.67 Cash costs per ounce
$
8.17 �
$ 6.21 �
$ - $ 3.36
$ 3.45 �
$ 4.94
�
$ 6.61 � � Total operating cost
(Non-GAAP) $ 14,247 $ 4,635 $ - $ 1,326 $ 1,343 $ 701 $ 22,252
Royalties 3,024 384 - - - - 3,408 Production taxes �
-
� �
- � �
- �
254 �
- � �
- � �
254 � �
Total cash costs (Non-GAAP)
17,271 5,019 - 1,580 1,343 701 25,914 Add/Subtract: Third party
smelting costs - (1,467 ) - - (530 ) (272 ) (2,269 ) By-product
credit - 883 - 2,557 - - 3,440 Other adjustments 8 - - 35 - - 43
Change in inventory (2,091 ) 35 1,211 535 (28 ) (73 ) (411 )
Depreciation, depletion and amortization �
5,173 � �
1,140 � �
- �
470 �
747 � �
366 � �
7,896 � �
Production costs applicable to sales, including depreciation,
depletion and amortization (GAAP)
$
20,361 �
$ 5,610 �
$ 1,211 $ 5,177
$ 1,532 �
$ 722
�
$ 34,613 � � � � � � � �
THREE MONTHS ENDED MARCH 31,
2008
(In thousands except ounces and
per ounce costs)
�
Martha
Cerro Bayo
Rochester
Broken Hill
Endeavor
Total
� Production of silver (ounces) 650,636 434,030 680,510 386,481
228,499 2,380,156 Cash operating cost per ounce $ 5.98 $ 1.25 $
(2.18 ) $ 3.72 $ 2.35 $ 2.07 Cash costs per ounce
$
6.67 �
$ 1.25 �
$ (1.26 ) $
3.72 �
$ 2.35 �
$ 2.52 � � Total Operating Cost
(Non-GAAP) $ 3,890 $ 544 $ (1,481 ) $ 1,436 $ 537 $ 4,926 Royalties
450 - - - - 450 Production taxes �
- � �
- � �
626 � �
- � �
- � �
626 � �
Total operating costs
(Non-GAAP)
$ 4,340 $ 544 $ (855 ) $ 1,436 $ 537 $ 6,002 Add/subtract: Third
party smelting costs (374 ) (1,245 ) - (678 ) (310 ) (2,607 )
By-product credit 612 9,465 5,393 - - 15,470 Other adjustments 354
- 102 - - 456 Change in inventory (1,576 ) (708 ) 8,150 (73 ) 171
5,964 Depreciation, depletion and amortization �
837
� �
2,778
� �
590
� �
684
� �
427
� �
5,316
� � Production costs applicable to sales, including depreciation,
depletion and amortization (GAAP)
$ 4,193
�
$ 10,834 �
$
13,380 �
$ 1,369 �
$ 825 �
$
30,601 � � �
COEUR D�ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
� � March 31, December 31,
2009
2008
ASSETS (In thousands) � � CURRENT ASSETS Cash and cash equivalents
$ 38,146 $ 20,760 Short-term investments - 7,881 Receivables 47,313
53,187 Ore on leach pad 8,827 9,193 Metal and other inventory
40,624 34,846 Deferred tax assets - 240 Prepaid expenses and other
�
29,668 � �
26,344 � 164,578 152,451 � �
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment 559,780
500,025 Less accumulated depreciation �
(93,109
) �
(88,717 ) 466,671
411,308 � MINING PROPERTIES Operational mining properties 294,858
293,564 Less accumulated depletion �
(134,558
) �
(131,730 ) 160,300
161,834 � Mineral interests 1,764,794 1,764,794 Less accumulated
depletion �
(18,395 ) �
(16,796 ) 1,746,399 1,747,998 �
Non-producing and development properties �
395,594 � �
356,912 � 2,302,293 2,266,744 � OTHER ASSETS Ore on
leach pad, non-current portion 20,749 20,998 Restricted assets
23,146 23,110 Receivables, non-current 36,533 34,139 Debt issuance
costs, net 8,994 10,253 Deferred tax assets 4,976 4,666 Other �
4,344 � �
4,452 � �
98,742 �
�
97,618 � TOTAL ASSETS
$
3,032,284 �
$ 2,928,121 � �
� �
COEUR D'ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
� March 31,
�
December 31,
2009
2008
(In thousands, except share
data)
� LIABILITIES AND SHAREHOLDERS' EQUITY � CURRENT LIABILITIES
Accounts payable $ 77,910 $ 66,300 Accrued liabilities and other
32,641 64,673 Accrued income taxes 3,451 927 Accrued payroll and
related benefits 6,492 8,106 Accrued interest payable 1,223 4,446
Current portion of capital lease obligations 11,357 14,608 Current
portion of royalty obligation 14,812 - Current portion of
reclamation and mine closure �
1,984 � �
1,924 � 149,870 160,984 LONG-TERM LIABILITIES Senior
Secured Floating Rate Convertible Notes due 2012 - 1,830 3 1/4%
Convertible Senior Notes due March 2028 173,751 185,001 1 1/4%
Convertible Senior Notes due January 2024 157,850 180,000
Non-current portion of royalty obligation 77,454 - Non-current
portion of capital lease obligations 15,938 16,837 Reclamation and
mine closure 34,301 34,093 Deferred income taxes 556,006 557,449
Other long-term liabilities �
5,933 � �
6,015 � 1,021,233 981,225 COMMITMENTS AND
CONTINGENCIES � SHAREHOLDERS' EQUITY Common Stock, par value $1.00
per share; authorized 750,000,000, 685,056,209 shares issued at
March 31, 2009 and 567,799,088 shares issued at December 31, 2008
685,056 567,799 Additional paid-in capital 1,590,030 1,651,256
Accumulated deficit (413,900 ) (419,958 ) Shares held in treasury
(758 shares at March 31, 2009 and 1,059,211
shares at December 31, 2008)
(9 ) (13,190 ) Accumulated other comprehensive income �
4 � �
5 � �
1,861,181 � �
1,785,912 � TOTAL LIABILITIES AND SHAREHOLDERS� EQUITY
$ 3,032,284 �
$
2,928,121 � � �
COEUR D�ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
� Three Months Ended March 31,
2009
�
2008
REVENUES � Sales of metal $ 49,793 $ 57,286 � COSTS AND EXPENSES
Production costs applicable to sales 26,717 25,285 Depreciation and
depletion 9,279 5,663 Administrative and general 7,548 8,524
Exploration 3,827 3,742 Care and maintenance and other 1,526 -
Pre-development �
- � �
5,785 � Total
cost and expenses �
48,897 � �
48,999 � �
OPERATING INCOME 896 8,287 � OTHER INCOME AND EXPENSE Unrealized
gain on debt extinguishments 15,703 - Unrealized loss on
derivatives (9,246 ) - Interest and other income 887 1,331 Interest
expense, net of capitalized interest �
(765
) �
(821 ) Total other
income and expense �
6,579 � �
510 � �
Income before income taxes 7,475 8,797 Income tax provision �
(1,417 ) �
(4,076
) � NET INCOME 6,058 4,721 Other comprehensive income
(loss) �
(1 ) �
712 � �
COMPREHENSIVE INCOME
$ 6,057 �
$ 5,433 � � BASIC AND DILUTED INCOME PER
SHARE Basic income per share: Net income
$
0.01 �
$ 0.01 � � Diluted
income per share: Net income
$ 0.01 �
$ 0.01 � � Weighted average number of
shares of common stock Basic 611,452 549,965 Diluted 611,595
574,798 � � �
COEUR D�ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
� Three Months Ended March 31,
2009
�
2008
(In Thousands) � CASH FLOWS FROM OPERATING ACTIVITIES: Net income $
6,058 $ 4,721 Add (deduct) non-cash items: Depreciation and
depletion 9,279 5,663 Deferred income taxes (1,514 ) (928 )
Unrealized gain on debt extinguishment (15,703 ) - Unrealized loss
(gain) on derivatives 6,802 (1,174 ) (Gain) on foreign currency
transactions (66 ) 1,211 Share based compensation 1,703 1,591 Other
charges 263 115 Changes in operating assets and liabilities:
Receivables and other current assets 2,653 (14,298 ) Inventories
(5,162 ) 4,597 Accounts payable and accrued liabilities �
(2,710 ) �
(9,147
) � CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
1,603 (7,649 ) � CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of
investments (7,358 ) (91,679 ) Proceeds from sales of investments
15,252 51,799 Capital expenditures (78,314 ) (64,509 ) Other �
(142 ) �
51 � CASH USED IN
INVESTING ACTIVITIES (70,562 ) (104,338 ) � CASH FLOWS FROM
FINANCING ACTIVITIES: Proceeds from sale of gold production royalty
75,000 - Proceeds from issuance of convertible notes 20,368 230,000
Repayment of long-term debt and capital leases (8,950 ) (2,488 )
Payments of debt issuance costs - (8,385 ) Proceeds from short-term
borrowings - 703 Common stock repurchased (73 ) (372 ) Other �
- � �
36 � CASH PROVIDED BY FINANCING
ACTIVITIES: �
86,345 � �
219,494 � �
INCREASE IN CASH AND CASH EQUIVALENTS 17,386 107,507 � Cash and
cash equivalents at beginning of period �
20,760 � �
98,671 � Cash and cash equivalents at end of period
$ 38,146 �
$
206,178 � � 1 � Amount equal to cash flow from
operations (US GAAP) less working capital changes as set forth in
cash flow statement. See table on page four for a reconciliation of
operating cash flow to cash provided by/(used in) operating
activities. 2 Non-GAAP measure; defined as operating costs less
by-product credits (if any) divided by silver production; excludes
royalties and taxes. 3 Amount equal to cash flow from operations
(US GAAP) less working capital changes as set forth in cash flow
statement. See table on page four for a reconciliation of operating
cash flow to cash provided by/(used in) operating activities.
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Jul 2023 to Jul 2024