Coeur Sells Broken Hill Interest for US$55 Million in Cash
July 16 2009 - 7:39AM
Business Wire
Coeur d�Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC)
announced today that it has agreed to sell back to Perilya Limited
(�Perilya�) its 100% interest in the silver contained at the Broken
Hill mine in Australia for US$55.0 million in cash. Coeur
originally purchased this interest from Perilya in September 2005
for $36.9 million. Closing of this transaction is expected to take
place on July 31st.
�By selling its interest, Coeur will further strengthen its
balance sheet and enhance its liquidity. Proceeds of the sale will
contribute to our growth initiatives, including construction of the
final tailings facility at the Kensington gold mine in Alaska,�
said Dennis Wheeler, Chairman, President and Chief Executive
Officer. �This transaction reflects the Company�s strategic
transition to large, long life mines that deliver economies of
scale and exhibit superior exploration potential.�
Since completion of the transaction in 2005, Coeur has received
a total of more than 6.1 million ounces of payable silver from the
Broken Hill mine. As of March 31, 2009, CDE Australia had recovered
approximately 127.1% of the original consideration.
As a result of this transaction, the Company expects to realize
a gain on the sale of assets in the third quarter of approximately
$23.2 million, net of income taxes.
Broken Hill Performance � � �
2009 first quarter � �
�
2008 � � �
2007 � � �
2006 � � �
2005
partial year Net Sales of Metal � � � 4,709,000 � � �
18,591,000 � � � 20,602,000 � � � 23,791,000 � � � 4,432,000 Profit
3,179,000 13,331,000 14,256,000 14,307,000 3,615,000 All values in
$ USD
About Coeur
Coeur d�Alene Mines Corporation is one of the world�s leading
silver companies and also a significant gold producer. Coeur, which
has no silver production hedged, will see its first full year of
production this year at the world�s largest pure silver mine - San
Bartolom� in Bolivia � and is now in production at its newest
operation � the Palmarejo silver/gold mine 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.
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 fourth parties in respect of Coeur, its
financial or operating results or its securities.
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