Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM)
(ASX:CXC):
Second Quarter Highlights:
- 74% increase in silver
production to a second quarter record 4.3 million ounces
- 46% increase in revenue to
all-time high of $73 million
- 692% increase in quarterly
operating cash flow1 to $16.8 million
- Quarterly net income of $11.6
million, or $0.17 per share
- 22% reduction in G&A
expenses – third consecutive quarter of double digit declines
- Favorable Supreme Court decision
received regarding Kensington permit
- Total debt reduced over $150
million, or 37%
- Sale of Broken Hill interest for
$55 million results in pro forma cash balance of $80 million
Coeur d’Alene Mines Corporation today announced a second quarter
silver production record of 4.3 million ounces during the second
quarter of 2009. This represents a 74% increase compared to last
year’s second quarter and was driven by silver production from the
Company’s two new large, long-life mines, the San Bartolomé silver
mine in Bolivia and the Palmarejo silver and gold mine in Mexico,
which combined for a total of 2.5 million ounces of silver
production, or 58% of the Company’s total silver production, during
the second quarter.
“Our second quarter results reflect the significant impact the
Company’s two new large mines are now having on production levels
and cash flow,” said Dennis E. Wheeler, Chairman, President and
Chief Executive Officer. “As the new Palmarejo mine continues to
ramp up production through the remainder of the year, we expect
this growth in production and cash flow to continue.
“Meanwhile, Coeur continues to fortify its balance sheet. The
Company’s cash position now stands at a strong $80 million, and our
total debt has been reduced by over $150 million, or 37%, since the
beginning of the year.
“Finally, we are very pleased with the recent decision by the
U.S. Supreme Court affirming the previously issued tailings permit
at our Kensington gold mine project in Alaska. The Court decision
and dissolution of the previous injunction now clears the way for
the only remaining item left to be constructed at the mine – the
tailings facility – and for production to commence beginning in the
second half of 2010, providing long-term economic benefits to the
Alaskan economy and Coeur shareholders,” Mr. Wheeler said.
Palmarejo (Mexico) Continues
to Ramp Up to Full Scale
The Palmarejo silver and gold mine in northern Mexico continued
to ramp up production during its initial quarter of operations.
During the quarter, Palmarejo produced 588,000 ounces of silver and
9,730 ounces of gold. All construction contractors have been
demobilized and both underground and open-pit operations are
performing according to plan. Final commissioning of certain areas
of the processing plant continue to take place. The Company expects
to achieve design mining and processing rates by the beginning of
the fourth quarter.
San Bartolomé (Bolivia)
Quarterly Production of 1.9 Million Ounces
Silver production during the second quarter at San Bartolomé was
1.9 million ounces with cash operating costs of $7.37 per ounce.
Production was slightly lower and costs were slightly higher than
the first quarter of the year due to a temporary SAG mill motor
failure, which caused the mill to not operate for fifteen days
during the month of May. The SAG mill issue was successfully
addressed and operations resumed at normal levels throughout the
rest of the quarter. For the first six months of the year, San
Bartolomé produced 4.0 million ounces of silver at average cash
operating costs of $7.04 per ounce.
The Company expects full-year 2009 silver production at San
Bartolomé to reach approximately 8.4 million ounces of silver at an
average cash operating cost of approximately $6.50 per ounce.2
U.S. Supreme Court Decision
Upholds Kensington Permit; Company Updates Cost
Estimates
In the second quarter, the United States Supreme Court released
its decision reversing the Ninth Circuit Court of Appeals and
upholding the previously issued permit for the tailings facility
for the Kensington gold mine near Juneau, Alaska. The Ninth Circuit
Court then lifted the prior court ordered injunction, and the only
remaining action needed is for the Corps of Engineers to lift the
prior suspension of the permit which is expected timely. The
Company then plans to proceed with construction of the only item
remaining to be constructed, the tailings facility, and for
production to commence at the mine, providing job growth and
economic stimulus to Southeast Alaska.
The Company is expecting production to begin in the second half
of 2010. The mine is expected to average approximately 120,000
ounces of annual gold production over a 12.5 year mine life based
on current proven and probable mineral reserves. Cash operating
costs are expected to average $475 per ounce. The remaining
construction and mine-related capital costs estimated to bring the
mine into production are expected to be approximately $70
million.
Construction contracts have been awarded and the construction
management team has been mobilized. In 2009, construction
activities will be focused on completing the tailings facility
towards a second half 2010 startup.
Balance Sheet Strengthened
Through Debt Reduction Program and Sale of Broken Hill
Interest
During the first half of 2009, the Company reduced its
convertible debt by over $150 million, or approximately 37%. During
the second quarter, the Company reduced the outstanding balance of
its 1.25% convertible notes by $51.1 million and reduced the
outstanding balance of its 3.25% convertible notes by $63.0
million.
Coeur announced on July 16 that it agreed to sell back to
Perilya Limited its 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, and has received a total of more than 6.1
million ounces of payable silver from the Broken Hill mine. As of
June 30, 2009, the Company had recovered approximately 137.2% of
the original consideration. The Company will also continue to
review rationalization of smaller assets.
Coeur’s issued and outstanding shares stood at 75.4 million on
August 4th, 2009, giving effect to the reverse split on May 26,
2009.
Exploration
Update
Guadalupe, Mexico. The Company’s exploration program was
focused on the Guadalupe vein system in the Palmarejo District. The
program, which completed over 7,200 meters of new drilling, was
designed to expand the Guadalupe deposit, define the known
mineralization at Las Animas and Guadalupe Sur zone - both of which
show potential for surface mining and quick ore access – and to
discover new silver and gold mineralization nearby. Favorable
results were obtained from all drilling. In addition, field work
identified two new silver and gold bearing structures to the west
and northwest of Guadalupe – termed La Antena and La Higuera,
respectively – and a new model of Las Animas and Guadalupe is being
completed which is expected to have important positive implications
for future discoveries in the district. All of these new targets
will be part of the next phase of drilling during the remainder of
the year. The Company expects this work will yield an increase in
proven and probable mineral reserves for the Guadalupe vein system
to be reported later this year.
Cerro Bayo, Chile. Exploration drilling focused on
definition and expansion of the large Delia vein system during the
second quarter, which is located less than 500 meters southeast of
the Cerro Bayo mill, and on testing new targets in the district. A
total of 13,300 meters of drilling was completed this quarter on
all targets. In June, the Company’s exploration team intersected
very high-grade silver and gold mineralization in a new vein –
termed Trinidad – which occurs just to the west of Delia. Follow up
drilling on this and other targets is underway.
Joaquin, Argentina. Coeur’s exploration teams completed a
second phase of drilling at the La Morocha and La Negra zones at
the Joaquin Project, under option from Mirasol Resources Ltd.,
located north of the Company’s Martha mine. A total of 15 holes and
1,900 meters were completed in this phase. All of the second phase
core holes encountered wide zones of silver and gold
mineralization. A third phase of drilling is planned for Q3 at
Joaquin as well as a first phase on Nico, a second property under
option, which borders the Martha mine property at the north.
Don Birak, Coeur’s Senior Vice President of Exploration, said,
“We are pleased to report these positive exploration results. The
results from this quarter’s drilling at Guadalupe continue to
expand and define the mineralized system in this large target
located approximately six kilometers from the processing facilities
at Palmarejo. The deposit is over 2 kilometers long and still open
for expansion. As drilling activities continued on our land
position at Palmarejo during the quarter, we were encouraged with
the discovery of the new La Antena and La Higuera zones located
near Guadalupe.”
“In Chile, the new high-grades at the Trinidad vein at Cerro
Bayo are significant given their close proximity to the Delia vein,
discovered late last year, and we will continue to drill there and
on other new targets. Results at Joaquin in southern Argentina have
been very encouraging this year with wide zone of silver and gold
mineralization encountered in nearly all drill holes, and a third
phase of drilling will commence in the next quarter at this
potential stand-alone surface mining opportunity to establish the
size of the mineralization and provide samples for initial
metallurgical testing.”
1 Non-GAAP measure; Amount equal to cash flow from operations
(US GAAP) less working capital changes as set forth in cash flow
statement. See table below 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.
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 Bartolomé 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 a non-operating interest in a low-cost mine 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.
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
second quarter 2009 results at 1:00 p.m. Eastern time on August 6,
2009. To listen live via telephone, call 866-853-4681 (US and
Canada) or 660-422-4718 (International). The conference ID number
is 21050936. 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 August 13, 2009. The replay dial-in
numbers are 800-642-1687 (US and Canada) and 706-645-9291
(International) and the access code is 21050936. 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:
(in thousands) Three Months Ended June
30, Six Months Ended June 30, 2009 2008 2009
2008 Cash provided by/(used in) operations: $20,127 ($2,575
) $21,730 ($10,224 ) Subtract changes in operating assets and
liabilities:
Receivables and other current assets 8,601 11,921 5,948 26,219
Inventories 8,024 (2,062 ) 13,186 (6,659 ) Accounts payable and
accrued liabilities (19,943 ) (5,162 ) (17,233 ) 3,985
OPERATING CASH FLOW $16,809 $2,122 $23,631
$13,321
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.
Operating Statistics From
Continuing Operations
The following table presents
information by mine and consolidated sales information for the
three and six month periods ended June 30, 2009 and 2008:
Three Months Ended June 30, Six Months Ended June 30, 2009
2008 2009 2008
San Bartolomé Tons milled
352,938 17,078 716,717 17,078 Ore grade/Ag oz 6.10 8.15 6.46 8.15
Recovery/Ag oz 89.0% 15.7% 87.1% 15.7% Silver production ounces
1,916,359 21,856 4,029,910 21,856 Cash operating costs/oz $ 7.37
$12.48 $ 7.04 $12.48 Cash cost/oz $10.64 $13.15 $ 9.35 $13.15 Total
cost/oz $13.13 $15.85 $11.82 $15.85
Martha Mine Tons milled
27,097 13,170 54,914 22,147 Ore grade/Ag oz 28.31 49.26 30.02 59.47
Ore grade/Au oz
.037 .065 .039 .071 Recovery/Ag oz 92.3% 94.7% 91.9% 96.0%
Recovery/Au oz 83.4% 95.3% 83.9% 92.8% Silver production ounces
707,898 614,442 1,515,905 1,265,078 Gold production ounces 834 815
1,807 1,469 Cash operating costs/oz $ 7.89 $8.73 $ 6.74 $7.31 Cash
cost/oz $ 8.33 $9.66 $ 7.20 $8.12 Total cost/oz $10.03 $11.84 $
8.74 $10.12
Cerro Bayo Tons milled - 67,063 - 158,581 Ore
grade/Ag oz - 5.45 - 5.25 Ore grade/Au oz - .126 - .124 Recovery/Ag
oz - 93.8% - 93.3% Recovery/Au oz - 77.7% - 84.8% Silver production
ounces - 342,856 - 776,886 Gold production ounces - 6,593 - 16,722
Cash operating costs/oz - $7.62 - $4.06 Cash cost/oz - $7.62 -
$4.06 Total cost/oz - $13.96 - $10.44
Rochester(A) Silver
production ounces 543,543 898,837 1,013,404 1,579,347 Gold
production ounces 3,231 6,062 6,049 11,912 Cash operating costs/oz
$ 2.50 $(1.74) $ 2.64 $(1.93) Cash cost/oz $ 2.96 $(.89) $ 3.14
$(1.05) Total cost/oz $ 3.90 $(.24) $ 4.14 $(.24)
Palmarejo(B) Tons milled 285,095 - 285,095 - Ore grade/Ag oz
3.84 - 3.84 - Ore grade/Au oz .044 - .044 - Recovery/Ag oz 53.6% -
53.6% - Recovery/Au oz 77.0% - 77.0% - Silver production ounces
587,716 - 587,716 - Gold production ounces 9,730 - 9,730 - Cash
operating costs/oz $ 19.44 - $ 19.44 - Cash cost/oz $ 19.44 - $
19.44 - Total cost/oz $ 40.50 - $ 40.50 -
Broken Hill Tons
milled 462,573 526,197 827,766 1,027,167 Ore grade/Ag oz 1.42 1.02
1.44 1.03 Recovery/Ag oz 69.0% 71.0% 70.6% 72.6% Silver production
ounces 454,184 382,349 843,594 768,829 Cash operating costs/oz $
3.42 $3.66 $ 3.43 $3.69 Cash cost/oz $ 3.42 $3.66 $ 3.43 $3.69
Total cost/oz $ 5.34 $5.43 $ 5.35 $5.46
Endeavor
Tons milled 130,872 281,991 297,843 529,153 Ore grade/Ag oz 1.92
1.44 1.51 1.53 Recovery/Ag oz 48.7% 56.5% 58.8% 56.6% Silver
production ounces 122,705 228,791 264,519 457,290 Cash operating
costs/oz $ 6.19 $2.59 $ 5.52 $2.47 Cash cost/oz $ 6.19 $2.59 $ 5.52
$2.47 Total cost/oz $ 8.76 $5.00 $ 8.09 $4.61
CONSOLIDATED
PRODUCTION TOTALS Silver ounces 4,332,405 2,489,131 8,255,048
4,869,286 Gold ounces 13,795 13,470 17,586 30,103 Cash operating
cost per oz $8.03 $3.49 $ 6.91 $2.79 Cash cost per oz/silver $9.61
$4.03 $ 8.18 $3.29 Total cost/oz $14.24 $6.19 $11.57 $5.58
CONSOLIDATED SALES TOTALS(C) Silver ounces sold 4,761,279
2,270,588 8,369,085 4,682,905 Gold ounces sold 11,827 15,168 16,923
29,930 Realized price per silver ounce $13.85 $18.84 $13.26 $18.64
Realized price per gold ounce $959.93 $987.70 $934.56 $976.68
(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 estimated for
2014. Current recovery may vary significantly from
ultimate recovery. See Critical Accounting Policies and Estimates –
Ore on Leach Pad.
(B)
Palmarejo achieved commercial
production on April 20, 2009. Mine statistics do not
represent normal operating results. It is expected that
Palmarejo will continue to ramp up its production rate throughout
the remainder of 2009.
(C)
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 below.
THREE MONTHS ENDED JUNE 30,
2009
(In thousands except ounces and
per ounce costs)
San
Martha
Cerro Bayo
Rochester
Palmarejo
Broken Hill
Endeavor
Total
Bartolomé
Production of Silver (ounces) 1,916,359 707,898 - 543,543
587,716 454,184 122,705 4,332,405 Cash operating costs per
ounce $ 7.37 $ 7.89 $ - $ 2.50 $ 19.44 $ 3.42 $ 6.19 $ 8.03 Cash
Costs per ounce
$ 10.64 $
8.33 $ -
$ 2.96 $ 19.44
$ 3.42 $
6.19 $ 9.61
Total operating costs (Non-GAAP) 14,119 5,587 - 1,358 11,423
1,554 760 34,801 Royalties 6,277 307 - - - - - 6,584 Production
taxes
- -
- 249 -
- -
249 Total Cash Costs (Non-GAAP) $ 20,396
$ 5,894 - $ 1,607 $ 11,423 $ 1,554 $ 760 $ 41,634 Add/Subtract:
Third party smelting costs - (1,378 ) - - (214 ) (622 ) (262 )
(2,476 ) By-product credit - 772 - 2,974 9,101 - - 12,847 Other
adjustments - 167 - 53 - - - 220 Change in inventory 1,850 634 -
1,506 (6,854 ) (30 ) (25 ) (2,919 ) Depreciation, depletion and
amortization
4,774
1,034
-
457
12,380
872
316
19,833
Production costs applicable to sales, including
depreciation, depletion and amortization (GAAP)
$
27,020
$
7,123
$
-
$
6,597
$
25,836
$
1,774
$
789
$
69,139
SIX MONTHS ENDED JUNE 30,
2009
(In thousands except ounces and
per ounce costs)
San
Martha
Cerro Bayo
Rochester
Palmarejo
Broken Hill
Endeavor
Total
Bartolomé
Production of Silver (ounces) 4,029,910 1,515,905 -
1,013,404 587,716 843,594 264,519 8,255,048 Cash operating
costs per ounce $ 7.04 $ 6.74 $ - $ 2.64 $ 19.44 $ 3.43 $ 5.52 $
6.91 Cash Costs per ounce
$ 9.35
$ 7.20 $
- $ 3.14 $
19.44 $ 3.43
$ 5.52 $
8.18 Total operating costs (Non-GAAP)
28,366 10,223 - 2,684 11,423 2,897 1,460 57,053 Royalties 9,302 691
- - - - 9,993 Production taxes
-
- - 503
- -
- 503 Total
Cash Costs (Non-GAAP) $ 37,668 $ 10,914 - $ 3,187 $ 11,423 $ 2,897
$ 1,460 $ 67,549 Add/Subtract: Third party smelting costs - (2,846
) - - (214 ) (1,151 ) (534 ) (4,745 ) By-product credit - 1,655 -
5,531 9,101 - - 16,287 Other adjustments 7 167 - 88 - - - 262
Change in inventory (241 ) 669 1,211 2,040 (6,853 ) (59 ) (97 )
(3,330 ) Depreciation, depletion and amortization
9,947
2,174
-
927
12,380
1,619
681
27,728
Production costs applicable to sales, including
depreciation, depletion and amortization (GAAP)
$
47,381
$
12,733
$
1,211
$
11,773
$
25,837
$
3,306
$
1,510
$
103,751
THREE MONTHS ENDED JUNE 30,
2008
(In thousands except ounces and
per ounce costs)
San
Martha
Cerro Bayo
Rochester
Broken Hill
Endeavor
Total
Bartolomé
Production of Silver (ounces) 21,856 614,442 342,856 898,837
382,349 228,791 2,489,131 Cash operating costs per ounce $
12.48 $ 8.73 $ 7.62 $ (1.74 ) $ 3.66 $ 2.59 $ 3.49 Cash Costs per
ounce
$ 13.15 $
9.66 $ 7.62
$ (0.89 ) $
3.66 $ 2.59
$ 4.03 Total operating cost
(Non-GAAP) 273 5,362 2,613 (1,566 ) 1,400 592 8,674 Royalties 14
572 - - - - 586 Production taxes
-
- -
767 -
- 767 Total
Cash Costs (Non-GAAP) $ 287 $ 5,934 $ 2,613 $ (799 ) $ 1,400 $ 592
$ 10,027 Add/Subtract: Third party smelting costs - (1,089 ) (1,163
) - (653 ) (369 ) (3,274 ) By-product credit - 729 5,894 5,437 - -
12,060 Other adjustments - 116 - (3 ) - - 113 Change in inventory
(346 ) (793 ) 665 6,365 79 (26 ) 5,944 Depreciation, depletion and
amortization
59
1,226
2,173
583
677
551
5,269
Production costs applicable to sales, including
depreciation, depletion and amortization (GAAP)
$
- $ 6,123
$ 10,182 $
11,583 $ 1,503
$ 748 $
30,139
SIX MONTHS ENDED JUNE 30,
2008
(In thousands except ounces and
per ounce costs)
San
Martha
Cerro Bayo
Rochester
Broken Hill
Endeavor
Total
Bartolomé
Production of Silver (ounces) 21,856 1,265,078 776,886
1,579,347 768,829 457,290 4,869,286 Cash operating costs per
ounce $ 12.48 $ 7.31 $ 4.06 $ (1.93 ) $ 3.69 $ 2.47 $ 2.79 Cash
Costs per ounce
$ 13.15
$ 8.12 $
4.06 $ (1.05
) $ 3.69
$ 2.47 $
3.29 Total operating costs (Non-GAAP)
273 9,252 3,157 (3,046 ) 2,836 1,130 13,602 Royalties 14 1,022 - -
- - 1,036 Production taxes
-
- -
1,392 -
- 1,392 Total
Cash Costs (Non-GAAP) $ 287 $ 10,274 $ 3,157 $ (1,654 ) $ 2,836 $
1,130 $ 16,030 Add/Subtract: Third party smelting costs - (1,463 )
(2,407 ) - (1,331 ) (680 ) (5,881 ) By-product credit - 1,341
15,359 10,830 - - 27,530 Other adjustments - 470 - 100 - - 570
Change in inventory (346 ) (2,369 ) (43 ) 14,515 6 145 11,908
Depreciation, depletion and amortization
59
2,063
4,951
1,173
1,361
979
10,586
Production costs applicable to sales, including
depreciation, depletion and amortization (GAAP)
$
-
$
10,316
$
21,017
$
24,964
$
2,872
$
1,574
$
60,743
COEUR D’ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31, 2009 2008 (In thousands) ASSETS
CURRENT ASSETS Cash and cash equivalents $ 24,668 $ 20,760
Short-term investments - 7,881 Receivables 55,724 53,187 Ore on
leach pad 8,648 9,193 Metal and other inventory 50,047 34,846
Deferred tax assets 404 240 Prepaid expenses and other
25,944 26,344
165,435 152,451 PROPERTY, PLANT AND EQUIPMENT Property, plant and
equipment 578,667 500,025 Less accumulated depreciation
(102,234 )
(88,717 ) 476,433
411,308 MINING PROPERTIES Operational mining properties 390,036
293,564 Less accumulated depletion
(138,491 )
(131,730 ) 251,545 161,834 Mineral
interests 1,764,794 1,764,794 Less accumulated depletion
(25,305 ) (16,796 )
1,739,489 1,747,998 Non-producing and development properties
322,148 356,912
2,313,182 2,266,744 OTHER ASSETS Ore on leach pad,
non-current portion 19,528 20,998 Restricted assets 23,388 23,110
Receivables, non-current 38,293 34,139 Debt issuance costs, net
6,017 10,253 Deferred tax assets 4,947 4,666 Other
5,112 4,452
97,285 97,618 TOTAL
ASSETS
$ 3,052,335 $
2,928,121
COEUR D'ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31, 2009 2008 (In thousands, except
share data) LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT
LIABILITIES Accounts payable $ 97,009 $ 66,300 Accrued liabilities
and other 28,148 64,673 Accrued income taxes 1,092 927 Accrued
payroll and related benefits 7,628 8,106 Accrued interest payable
2,717 4,446 Current portion of capital lease and other short term
obligations 13,414 14,608 Current portion of royalty obligation
24,644 - Current portion of reclamation and mine closure
2,041 1,924 176,693
160,984 LONG-TERM LIABILITIES 3 1/4% Convertible Senior Notes due
2028 123,929 185,001 1 1/4% Convertible Senior Notes due 2024
106,784 180,000 Senior Secured Floating Rate Convertible Notes due
2012 - 1,830 Non-current portion of royalty obligation 79,247 -
Non-current portion of capital lease obligations 22,526 16,837
Reclamation and mine closure 34,832 34,093 Deferred income taxes
552,173 557,449 Other long-term liabilities
5,386 6,015 924,877
981,225 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’
EQUITY Common Stock, par value $0.01 per share; authorized
150,000,000; 75,402,060 shares issued at June 30, 2009 and
56,779,909 shares issued at December 31, 2008 754 568 Additional
paid-in capital 2,352,297 2,218,487 Accumulated deficit (402,291 )
(419,958 ) Shares held in treasury, at cost (none at June 30, 2009
and 105,921 shares at December 31, 2008) - (13,190 ) Accumulated
other comprehensive income
5
5 1,950,765
1,785,912 TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$ 3,052,335 $
2,928,121
COEUR D’ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Six Months Ended June 30, Ended June 30,
2009
2008
2009
2008
REVENUES (In thousands except per share data) Sales of metal
$ 73,207 $ 50,024 $ 123,000 $ 107,310 COSTS AND EXPENSES
Production costs applicable to sales 49,549 24,873 76,266 50,158
Depreciation and depletion 21,160 6,306 30,439 11,969
Administrative and general 5,485 7,032 13,033 15,557 Exploration
3,791 4,725 7,618 8,468 Care and maintenance and other 1,140 -
2,666 - Pre-development
-
10,657 -
16,441 Total cost and expenses
81,125 53,593
130,022 102,593
OPERATING INCOME (LOSS)
(7,918
) (3,569 )
(7,022 ) 4,717
OTHER INCOME AND EXPENSE Gain on debt extinguishments 23,135
- 38,838 - Loss on derivatives, net (4,609 ) - (13,855 ) - Interest
and other income 2,492 177 3,379 1,507 Interest expense, net of
capitalized interest
( 5,193 )
( 867 ) (5,958
) (1,687 ) Total
other income and expense
15,825
( 690 ) 22,404
(180 ) Income (loss) before
income taxes 7,907 (4,259 ) 15,382 4,537 Income tax (provision)
benefit
3,702 (1,118
) 2,285
(5,193 ) NET INCOME (LOSS) 11,609
(5,377 ) 17,667 (656 ) Other comprehensive loss
- (1,040 )
- (328
) COMPREHENSIVE INCOME (LOSS)
$
11,609 $ (6,417
) $ 17,667
$ (984 ) BASIC AND
DILUTED INCOME (LOSS) PER SHARE Basic income per share: Net
income (loss)
$ 0.17
$ (0.10 ) $
0.27 $ (0.01
) Diluted income per share: Net income (loss)
$ 0.17 $
(0.10 ) $ 0.27
$ (0.01 )
Weighted average number of shares of common stock Basic 70,045
55,010 65,620 55,003 Diluted 70,227 55,010 65,718 55,003
COEUR D’ALENE MINES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Three Months Six Months Ended June 30, Ended June 30,
2009
2008
2009
2008
(In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net
income $ 11,609 $ (5,377 ) $ 17,667 $ (656 ) Add (deduct) non-cash
items: Depreciation and depletion 21,160 6,306 30,439 11,969
Amortization of debt discount 4,359 4,359 - Deferred income taxes
(4,207 ) (2,972 ) (5,721 ) (3,900 ) Gain on debt extinguishment
(23,135 ) - (38,838 ) - Unrealized loss on derivatives 6,068 4,698
12,870 3,524 Loss on foreign currency transactions (342 ) (1,059 )
(408 ) 152 Share based compensation 954 297 2,657 1,888 Other
charges 343 229 606 344 Changes in operating assets and
liabilities: Receivables and other current assets (8,601 ) (11,921
) (5,948 ) (26,219 ) Inventories (8,024 ) 2,062 (13,186 ) 6,659
Accounts payable and accrued liabilities
19,943
5,162 17,233
(3,985 ) CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
20,127 (2,575
) 21,730
(10,224 ) CASH FLOWS FROM
INVESTING ACTIVITIES: Purchases of investments (23 ) (153,943 )
(7,381 ) (245,622 ) Proceeds from sales of investments 508 157,911
15,760 209,709 Capital expenditures (42,617 ) (104,127 ) (120,931 )
(168,636 ) Proceeds from sale of assets and other
1,966 (89 )
1,824 (38
) CASH USED IN INVESTING ACTIVITIES
(40,166 ) (100,248
) (110,728 )
(204,587 ) 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 (5,919 )
(5,338 ) (14,869 ) (7,826 ) Payment of debt issuance costs - (166 )
- (8,550 ) Proceeds from sale-lease back transactions 12,511 -
12,511 - Common stock repurchased (9 ) - (82 ) (372 ) Other
(22 ) (9
) (22 )
730 CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
6,561
(5,513 ) 92,906
213,982 INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS (13,478 ) (108,336 )
3,908
(829
)
Cash and cash equivalents at beginning of period
38,146 206,178
20,760 98,671
Cash and cash equivalents at end of period
$
24,668 $ 97,842
$ 24,668 $
97,842
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