-- KEY HIGHLIGHTS -- COEUR D'ALENE, Idaho, Nov. 9
/PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation (NYSE:
CDE; TSX: CDM), the world's largest primary silver producer and a
growing gold producer, today reported net income of $3.5 million,
or $0.01 per share, for the third quarter of 2005, compared to a
net loss of $18.1 million, or $0.08 per share, for the year-ago
period. Results for the year-ago period included $14.9 million of
non-recurring pre-tax expenses. Revenue for the third quarter of
2005 was $44.1 million, an increase of 41 percent as compared to
$31.3 million in the year-ago period. For the first nine months of
2005, the Company reported a net loss of $0.0 million, or $0.00 per
share, compared to a net loss of $25.1 million, or $0.12 per share,
for the same period of 2004. Revenues were $120.8 million for the
first nine months of 2005, an increase of 38 percent as compared to
$87.4 million in the year-ago period. In commenting on the
third-quarter performance relative to the year-ago period, Dennis
E. Wheeler, Chairman, President and Chief Executive Officer, said
"The Company reported sharply improved financial results in large
measure because consolidated cash production costs per ounce
declined by 18 percent while shipments and price realizations for
both silver and gold increased. In addition, our recent Australian
acquisitions began to make a positive contribution during the
quarter. Moreover, we have seen encouraging results from our
efforts to reduce overhead costs, with third-quarter G&A
expenses continuing to decline and representing a 23 percent
reduction from those of the first quarter of this year. Also, with
the commencement of construction at the Kensington gold mine (in
July 2005) and at the San Bartolome silver mine (in late 2004) the
Company's pre-development expenses in the third quarter of 2005
declined to zero as compared to $3.1 million in the year-ago
period." Wheeler added, "We are starting to see the value accreting
to Coeur stockholders from our strategy to significantly increase
our low-cost production ounces, reserves, cash flow and resulting
earnings." Wheeler also noted that the company's third-quarter
acquisition of the silver production and reserves at the Broken
Hill mine in Australia has been nominated by the Mining Journal for
"deal of year." The annual award seeks to recognize the transaction
that has "most captured the imagination of the financial
community." The $36 million transaction boosted Coeur's annual
silver production by an average of 2.3 million ounces, or
approximately 17 percent, and provided 15 million ounces of
contained silver reserves. Wheeler said, "With an estimated cash
production cost in the range of $2.75 per ounce, the deal
represents another step in Coeur's continuing transformation to a
lower-cost asset base." The company currently expects full-year
silver production to be approximately 14 million ounces at a
consolidated cash cost of approximately $4.30 per ounce. The
Company currently expects full-year gold production to be
approximately 130,000 ounces. Third-Quarter Operating Highlights
Relative to Year-Ago Quarter -- Cerro Bayo (Chile) -- silver and
gold production were up 23 percent and 16 percent, respectively,
due to higher-grade ore. Silver cash cost declined sharply to $0.37
per ounce due to an increase in the gold by- product credit. The
increased by-product credit reflected higher gold production and
higher gold prices. Mine revenues also benefited from the increased
shipping frequency associated with a new customer. -- Martha
(Argentina) -- Silver production was up almost 80 percent due to
higher-grade ore. As was the case with Cerro Bayo, silver cash cost
per ounce declined due to an increase in the gold by-product credit
and increased production. -- Endeavor -- (Australia) Coeur's share
of production from this recently acquired asset was more than
220,000 ounces of silver at a cash cost of $1.95 per ounce. --
Broken Hill (Australia) -- Coeur's share of production from this
asset, which was acquired during the third quarter, was
approximately 83,000 ounces at a cash cost of $2.69 per ounce. --
Rochester (Nevada) -- Silver and gold production were up 29 percent
and 23 percent, respectively, due to improved solution grades in
flow from the leach pad. Silver cash cost per ounce declined
largely as a result of the increased volume and the increased
benefit of the gold by- product credit. -- Galena (Idaho) -- Silver
production was down 41 percent due to lower than expected ore
grades and shorter strike lengths in two mining areas. Although
such factors periodically affect nearly all deep underground
narrow-vein mines, the company is engaged in an ongoing exploration
program to identify more productive mining areas at Galena. Low
production levels resulted in higher cash costs per ounce.
Third-Quarter Exploration Highlights The company invested $2.9
million in exploration during the quarter, with activity at all its
properties, but most notably at Cerro Bayo and Kensington. At Cerro
Bayo exploration discovered a new vein, termed Marcela Sur,
situated nearly 1,000 meters west of the Lucero and Javiera veins
being mined presently. This new vein is covered by up to 70 meters
of barren sediment cover, which poses positive implications for
additional blind discoveries across the district. At Kensington
(Alaska), underground drilling designed to expand known reserves
commenced in earnest in the third quarter. A total of 10,700 feet
of core drilling from underground position focused on zones 41 and
35 where initial results have been positive. Follow-up drilling is
underway at both sites. Coeur d'Alene Mines Corporation is the
world's largest primary silver producer and a growing gold
producer. The Company has mining interests in Alaska, Argentina,
Australia, Bolivia, Chile, Nevada, and Idaho. Investor Contact
Scott Lamb Vice President of Investor Relations 208-665-0777
Conference Call Information Coeur d'Alene Mines Corporation will
hold a conference call to discuss the Company's third quarter 2005
results at 1 p.m. Eastern time on November 9, 2005. To listen live
via telephone, call 800-289-0529 (US and Canada) or 913-981-5523
(International). The conference call and presentation will also be
web cast on the Company's web site http://www.coeur.com/. A replay
of the call will be available through November 14, 2005. The replay
dial-in numbers are 888-203-1112 (US and Canada) and (719) 457-0820
(International) and the access code is 9754740. Cautionary
Statement Company press releases may contain numerous
forward-looking statements within the meaning of securities
legislation in the United States and Canada relating to the
Company's silver and gold mining business. Such statements are
subject to numerous assumptions and uncertainties, many of which
are outside the Company's control. Operating, exploration and
financial data, and other statements in this document are based on
information the Company believes reasonable, but involve
significant uncertainties as to future gold and silver prices,
costs, ore grades, estimation of gold and silver reserves, mining
and processing conditions, currency exchange rates, and the
completion and/or updating of mining feasibility studies, changes
that could result from the Company's future acquisition 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 the Company's filings from time to time with the SEC and
the Ontario Securities Commission, including, without limitation,
the Company's reports on Form 10-K and Form 10-Q. Actual results
and timetables could vary significantly from the estimates
presented. Readers are cautioned not to put undue reliance on
forward-looking statements. The Company disclaims any intent or
obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Donald J. Birak, Coeur's Senior Vice President of Exploration, is
the qualified person, per Canadian National Instrument 43-101,
responsible for the preparation of the scientific and technical
information in this document. Mr. Birak has reviewed the available
data and procedures and believes the calculation of reserves was
conducted in a professional and competent manner. CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) COEUR
D'ALENE MINES CORPORATION AND SUBSIDIARIES (Unaudited) Three Months
Ended Nine Months Ended September 30, September 30, 2005 2004 2005
2004 (In Thousands, except per share data) REVENUES Sales of metal
$42,047 $30,211 $115,454 $86,242 Interest and other 2,052 1,056
5,350 1,142 Total revenues 44,099 31,267 120,804 87,384 COSTS and
Expenses Production 27,591 19,014 71,569 52,328 Depreciation and
depletion 4,838 4,862 14,372 14,481 Administrative and general
4,233 3,553 14,611 11,194 Exploration 2,887 2,983 9,350 7,003
Pre-development -- 3,117 6,052 8,768 Interest 737 662 1,869 2,257
Litigation settlement -- -- 1,600 -- Other holding costs 79 262 586
1,606 Merger expenses -- 14,894 -- 14,894 Total costs and expenses
40,365 49,347 120,009 112,531 INCOME (LOSS) FROM OPERATIONS BEFORE
TAXES 3,734 (18,080) 795 (25,147) Income tax provision (281) --
(813) -- Net INCOME (loss) 3,453 (18,080) (18) (25,147) Other
comprehensive income (loss) 134 333 255 (526) COMPREHENSIVE INCOME
(LOSS) $3,587 $(17,747) $237 $(25,673) BASIC AND DILUTED NET INCOME
(LOSS) PER SHARE: Net income (loss) $0.01 $(0.08) $0.00 $(0.12)
Weighted average number of shares of common stock outstanding Basic
241,683 213,261 240,572 213,217 Diluted 242,477 213,261 240,572
213,217 COEUR D'ALENE MINES CORPORATION PRODUCTION STATISTICS Three
Months Ended Nine Months Ended September 30, September 30, 2005
2004 2005 2004 ROCHESTER MINE Silver ozs. 1,708,950 1,324,127
4,053,531 3,951,428 Gold ozs. 21,436 17,432 49,840 44,912 Cash
costs per oz./silver $3.64 $4.23 $5.56 $4.78 Full costs per
oz./silver $5.07 $6.22 $7.49 $6.59 GALENA MINE Silver ozs. 459,805
785,296 1,729,801 2,647,240 Gold ozs. 60 77 205 267 Cash costs per
oz./silver $8.39 $6.16 $7.60 $5.30 Full costs per oz./silver $9.47
$6.77 $8.47 $5.84 CERRO BAYO (A) Silver ozs. 742,825 606,069
2,093,964 1,978,764 Gold ozs. 16,744 14,482 46,711 35,721 Cash
costs per oz./silver $0.37 $1.63 $0.33 $2.31 Full costs per
oz./silver $1.86 $3.70 $1.97 $4.45 MARTHA MINE (A) Silver ozs.
569,873 317,720 1,555,054 1,216,117 Gold ozs. 726 403 1,933 1,644
Cash costs per oz./silver $4.24 $5.38 $4.52 $3.79 Full costs per
oz./silver $4.62 $6.34 $4.91 $4.68 ENDEAVOR MINE (B) Silver ozs.
220,613 -- 279,078 -- Cash costs per oz./silver $1.95 -- $1.94 --
Full costs per oz./silver $3.19 -- $3.18 -- BROKEN HILL MINE (C)
Silver ozs. 83,010 -- 83,010 -- Cash costs per oz./silver $2.69 --
$2.69 -- Full costs per oz./silver $4.62 -- $4.62 -- CONSOLIDATED
PRODUCTION TOTALS Silver ozs. 3,785,076 3,033,212 9,794,438
9,793,549 Gold ozs. 38,966 32,394 98,689 82,544 Cash costs per
oz./silver $3.54 $4.33 $4.51 $4.30 Full costs per oz./silver $4.78
$5.88 $5.92 $5.72 CONSOLIDATED SALES TOTALS Silver ozs. sold
3,614,629 2,810,653 10,454,763 9,405,311 Gold ozs. sold 38,303
26,406 107,516 74,268 Realized price per silver oz. $7.26 $6.74
$7.12 $6.67 Realized price per gold oz. $452 $406 $436 $399 (A)
Beginning in the first quarter of 2005, the Company segregated
operating statistics to conform to current year presentation. (B)
On May 23, 2005, the Company acquired all of the silver production
and reserves contained at the Endeavor mine in Australia, which is
owned and operated by CBH Resources Ltd. ("CBH"), for $38.5
million. Production totals represent Coeur's share of the silver
production in the three and nine months ended September 30, 2005.
(C) On September 8, 2005, the Company acquired all of the silver
production and reserves, up to 17.2 million payable ounces,
contained at the Broken Hill mine in Australia which is owned and
operated by Perilya Broken Hill Ltd. ("PBH") for $36.0 million.
Coeur's share of the silver from September 8, 2005 to September 30,
2005 was 83,010 ounces at a cash cost of $2.69 per ounce,
representing Coeur's agreed upon operating cost contribution
including smelting and refining charges. Note: "Cash Costs per
Ounce" are calculated by dividing the 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 costs per ounce
produced as a key indicator of the profitability of each of its
mining properties. Gold and silver are sold and priced in the world
financial markets on a US dollar per ounce basis. By calculating
the cash costs from each of the Company's mines on the same unit
basis, management can easily determine the gross margin that each
ounce of gold and silver produced is generating. "Cash Costs" are
costs directly related to the physical activities of producing
silver and gold and include mining, processing and other plant
costs, deferred mining adjustments, 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 (primarily gold and copper) are deducted from the
above in computing cash costs. Cash costs exclude depreciation,
depletion and amortization, corporate general and administrative
expense, exploration, interest, and pre-feasibility costs and
accruals for mine reclamation. Cash costs are calculated and
presented using the "Gold Institute Production Cost Standard"
applied consistently for all periods presented. Total cash costs
per ounce is a non-GAAP measurement and investors are cautioned not
to place undue reliance on it 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 "Costs and
Expenses" set forth below: The following tables present a
reconciliation between cash costs per ounce and GAAP production
costs reported in the Statement of Operations: THREE MONTHS ENDED
SEPTEMBER 30, 2005 Rochester Galena Cerro Bayo Production of Silver
(ounces) 1,708,950 459,805 742,825 Cash Costs per ounce $3.64 $8.39
$0.37 Total Cash Costs (thousands) $6,217 $3,859 $273
Add/(Subtract): Third Party Smelting Costs (281) (745) (1,126)
By-Product Credit 9,476 596 7,350 Deferred Stripping and other
adjustments (54) -- 10 Change in Inventory (3,326) 3 2,005
Production Costs $12,032 $3,713 $8,512 Broken Martha Endeavor Hill
Total Production of Silver (ounces) 569,873 220,613 83,010
3,785,076 Cash Costs per ounce $4.24 $1.95 $2.69 $3.54 Total Cash
Costs (thousands) $2,415 $430 $223 $13,417 Add/(Subtract): Third
Party Smelting Costs (336) (234) (70) (2,792) By-Product Credit 320
-- -- 17,742 Deferred Stripping and other adjustments 174 -- -- 130
Change in Inventory 410 2 -- (906) Production Costs $2,983 $198
$153 $27,591 THREE MONTHS ENDED SEPTEMBER 30, 2004 Cerro Rochester
Galena Bayo Production of Silver (ounces) 1,324,127 785,296 606,069
Cash Costs per ounce $4.23 $6.16 $1.63 Total Cash Costs (thousands)
$5,602 $4,840 $988 Add/(Subtract): Third Party Smelting Costs (234)
(1,238) (974) By-Product Credit 7,007 846 5,809 Deferred Stripping
and other adjustments (100) -- 48 Change in Inventory (4,439) (584)
(451) Production Costs $7,836 $3,864 $5,420 Broken Martha Endeavor
Hill Total Production of Silver (ounces) 317,720 -- -- 3,033,212
Cash Costs per ounce $5.38 -- -- $4.33 Total Cash Costs (thousands)
$1,711 -- -- $13,141 Add/(Subtract): Third Party Smelting Costs
(169) -- -- (2,615) By-Product Credit 162 -- -- 13,824 Deferred
Stripping and other adjustments (40) -- -- (92) Change in Inventory
230 -- -- (5,244) Production Costs $1,894 $19,014 NINE MONTHS ENDED
SEPTEMBER 30, 2005 Rochester Galena Cerro Bayo Production of Silver
(ounces) 4,053,531 1,729,801 2,093,964 Cash Costs per ounce $5.56
$7.60 $0.33 Total Cash Costs (thousands) $22,536 $13,149 $691
Add/(Subtract): Third Party Smelting Costs (687) (2,877) (3,152)
By-Product Credit 21,637 2,224 20,150 Deferred Stripping and other
adjustments (256) -- -- Change in Inventory (14,499) (321) 5,271
Production Costs $28,731 $12,175 $22,960 Broken Martha Endeavor
Hill Total Production of Silver (ounces) 1,555,054 279,078 83,010
9,794,438 Cash Costs per ounce $4.52 $1.94 $2.69 $4.51 Total Cash
Costs (thousands) $7,030 $541 $223 $44,170 Add/(Subtract): Third
Party Smelting Costs (903) (292) (70) (7,981) By-Product Credit 834
-- -- 44,845 Deferred Stripping and other adjustments -- -- --
(256) Change in Inventory 376 (36) -- (9,209) Production Costs
$7,337 $213 $153 $71,569 NINE MONTHS ENDED SEPTEMBER 30, 2004
Rochester Galena Cerro Bayo Production of Silver (ounces) 3,951,428
2,647,240 1,978,764 Cash Costs per ounce $4.78 $5.30 $2.14 Total
Cash Costs (thousands) $18,900 $14,039 $4,566 Add/(Subtract): Third
Party Smelting Costs (655) (3,919) (3,432) By-Product Credit 17,969
2,559 14,319 Deferred Stripping and other adjustments (302) -- 38
Change in Inventory (12,239) 315 (3,971) Production Costs $23,673
$12,994 $11,520 Broken Martha Endeavor Hill Total Production of
Silver (ounces) 1,216,117 -- -- 9,793,549 Cash Costs per ounce
$3.79 -- -- $4.30 Total Cash Costs (thousands) $4,605 -- -- $42,110
Add/(Subtract): Third Party Smelting Costs (655) -- -- (8,661)
By-Product Credit 658 -- -- 35,505 Deferred Stripping and other
adjustments (94) -- -- (358) Change in Inventory (373) -- --
(16,268) Production Costs $4,141 $52,328 COEUR D'ALENE MINES
CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) September 30, December 31, 2005 2004 (In Thousands)
ASSETS CURRENT ASSETS Cash and cash equivalents $216,062 $273,079
Short-term investments 41,418 48,993 Receivables 23,575 10,634 Ore
on leach pad 13,902 15,046 Metal and other inventory 17,681 17,639
Deferred tax assets 1,330 2,592 Prepaid expenses and other 4,476
3,727 318,444 371,710 PROPERTY, PLANT AND EQUIPMENT Property, plant
and equipment 98,260 85,070 Less accumulated depreciation (57,537)
(54,154) 40,723 30,916 MINING PROPERTIES Operational mining
properties 125,404 121,344 Less accumulated depletion (107,101)
(100,079) 18,303 21,265 Mineral interests 71,722 20,125
Non-producing and development properties 45,499 26,071 135,524
67,461 OTHER ASSETS Non-current ore on leach pad 39,870 28,740
Restricted cash and cash equivalents 17,116 10,847 Debt issuance
costs, net 5,530 5,757 Deferred tax assets 3,128 1,811 Other 9,110
8,535 74,754 55,690 TOTAL ASSETS $569,445 $525,777 COEUR D'ALENE
MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) September 30, December 31, 2005 2004 (In Thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts
payable $11,740 $8,389 Accrued liabilities and other 7,777 5,306
Accrued interest payable 469 1,035 Accrued salaries and wages 6,020
6,379 Current portion of remediation costs 460 1,041 26,466 22,150
LONG-TERM LIABILITIES 1 1/4% Convertible Senior Notes due January
2024 180,000 180,000 Reclamation and mine closure 24,848 23,670
Other long-term liabilities 7,744 6,503 212,592 210,173 COMMITMENTS
AND CONTINGENCIES SHAREHOLDERS' EQUITY Common Stock, par value
$1.00 per share- authorized 500,000,000 shares, issued 250,883,651
and 241,028,303 shares in 2005 and 2004 (1,059,211 shares held in
treasury) 250,884 241,028 Additional paid-in capital 656,650
629,809 Accumulated deficit (561,927) (561,908) Shares held in
treasury (13,190) (13,190) Accumulated other comprehensive loss
(2,030) (2,285) 330,387 293,454 TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $569,445 $525,777 COEUR D'ALENE MINES CORPORATION AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Nine Months Ended September 30, Ended September 30,
2005 2004 2005 2004 (In Thousands) CASH FLOWS FROM OPERATING
ACTIVITIES: Net income (loss) $3,453 $(18,080) $(18) $(25,147) Add
(deduct) non-cash items: Depreciation and depletion 4,838 4,862
14,372 14,481 Deferred taxes (175) -- (55) -- Unrealized (gain)
loss on embedded derivative (646) (1,395) (725) 362 Amortization of
restricted stock compensation 313 321 887 994 Amortization of debt
issuance costs 76 76 227 332 Amortization of premium and/or
discounts 115 370 702 1,197 Other charges 155 (76) 423 38 Changes
in Operating Assets and Liabilities: Receivables (774) 3,277
(12,907) 1,211 Prepaid expenses and other (371) (74) (1,093) (388)
Inventories (1,063) (7,406) (10,028) (16,954) Accounts payable and
accrued liabilities (2,054) 11,175 440 9,812 CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES 3,867 (6,950) (7,775) (14,062) CASH FLOWS
FROM INVESTING ACTIVITIES: Capital expenditures (58,320) (2,732)
(85,154) (5,858) Purchases of short-term investments (11,502)
(1,107) (34,419) (59,950) Proceeds from sales of short-term
investments 13,019 10,521 35,207 23,232 Other (19) 41 95 278 CASH
PROVIDED BY (USED) IN INVESTING ACTIVITIES (56,822) 6,723 (84,271)
(42,298) CASH FLOWS FROM FINANCING ACTIVITIES: Retirement of
long-term debt (147) -- (208) (9,561) Retirement of building loan
-- -- -- (1,200) Proceeds from issuance of subordinated notes -- --
-- 180,000 Debt issuance costs -- -- -- (6,089) Proceeds from
issuance of common stock (net) 35,949 -- 35,397 -- Bank Borrowings
on working capital facility -- -- -- 6,056 Payments to Bank on
working capital facility -- -- -- (8,423) Common stock repurchased
-- -- -- (793) Other (65) 1,424 (160) 9 CASH PROVIDED BY FINANCING
ACTIVITIES: 35,737 1,424 35,029 159,999 INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (17,218) 1,197 (57,017) 103,639 Cash and cash
equivalents at beginning of period 233,280 164,859 273,079 62,417
Cash and cash equivalents at end of period $216,062 $166,056
$216,062 $166,056 DATASOURCE: Coeur d'Alene Mines Corporation
CONTACT: Scott Lamb, Vice President of Investor Relations of Coeur
d'Alene Mines Corporation, +1-208-665-0777 Web site:
http://www.coeur.com/
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