-- Key Highlights -- COEUR D'ALENE, Idaho, Aug. 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 a net loss of $1.5 million,
or $0.01 per share, in the second quarter of 2005, compared to a
net loss of $5.4 million, or $0.03 per share, for the year-ago
period. Results for the current-year quarter included $3.3 million
of exploration expense associated with the successful ore reserve
expansion program and $3.7 million resulting from pre-development
activities at the Kensington gold project. Revenue for the second
quarter of 2005 was $38.3 million, compared to $27.1 million in the
year-ago period. For the first six months of 2005, the Company
reported a net loss of $3.3 million, or $0.01 per share, compared
to a net loss of $7.1 million, or $0.03 per share, for the same
period of 2004. Revenues were $76.4 million for the first six
months of 2005, compared to $56.1 million in the year-ago period.
In commenting on the second-quarter operating results relative to
the year-ago period, Dennis E. Wheeler, Chairman, President and
Chief Executive Officer, said, "The Company reported a 76 percent
increase in earnings before interest, taxes, depreciation and
pre-development activities. The improvement was the result of
increased shipments of silver and gold at prices well above
year-ago levels. These favorable results included $3.3 million of
exploration expenses." Wheeler added, "With our continued robust
cash position, we are pleased by the accelerating progress the
Company is making on a number of key initiatives. In particular, we
have completed the Endeavor silver acquisition in Australia and
have begun to see the positive results of that transaction. In
addition, as previously reported, we have obtained final permits
for the Kensington gold project and have commenced construction
activities. We expect that project to start production in early
2007. Although we have made an upward revision to the estimated
capital cost and cash operating costs at Kensington, we are more
confident than ever in the economic and environmental soundness of
the project -- and in the prospects for further conversion of
existing resources to reserves." The Company currently expects
full-year silver production to be approximately 13.5 million ounces
at a consolidated cash cost of between $4.30 and $4.40 per ounce.
The Company currently expects full-year gold production to be
approximately 130,000 ounces. Separately, Coeur has signed a
one-year memorandum of understanding with Shanghai Kuntai
Non-Ferrous Metals Company, Ltd., to establish a strategic alliance
to identify silver market investment, exploration, mining, and
acquisition opportunities primarily in China. Under the agreement,
Kuntai will identify a minimum of two specific opportunities for
consideration and would act as liaison for Coeur within the Chinese
business community and with various governmental bodies -- and
Coeur would agree to provide mining and exploration expertise to
evaluate such opportunities. If any commercially viable
opportunities are identified, the companies would expect to
participate as partners in developments costs, eventual operating
costs, and silver production. Coeur d'Alene Mines Corporation is
the world's largest primary silver producer, as well as a
significant, low-cost producer of gold. The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and
Australia. 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 second quarter 2005 results at 1 p.m. Eastern time on
August 9, 2005. To listen live via telephone, call 877-209-0397 (US
and Canada) or 612-332-0932 (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 August 16, 2005. The replay dial-in numbers are
800-475-6701 (US and Canada) and 320-365-3844 (International) and
the access code is 790836. COEUR D'ALENE MINES CORPORATION
PRODUCTION STATISTICS Three Months Ended Six Months Ended June 30,
June 30, 2005 2004 2005 2004 ROCHESTER MINE Silver ozs. 1,208,584
1,317,006 2,344,581 2,627,301 Gold ozs. 14,412 16,005 28,404 27,480
Cash costs per oz./silver $7.58 $4.54 $6.96 $5.06 Full costs per
oz./silver $9.93 $6.36 $9.25 $6.79 GALENA MINE Silver ozs. 559,700
954,964 1,269,996 1,861,944 Gold ozs. 54 88 145 189 Cash costs per
oz./silver $8.05 $4.95 $7.32 $4.94 Full costs per oz./silver $8.95
$5.47 $8.11 $5.45 CERRO BAYO (A) Silver ozs. 691,846 576,150
1,351,139 1,372,695 Gold ozs. 15,100 11,282 29,967 21,240 Cash
costs per oz./silver $0.76 $4.11 $0.31 $2.61 Full costs per
oz./silver $2.28 $6.42 $2.03 $4.78 MARTHA MINE (A) Silver ozs.
606,121 477,126 985,181 898,397 Gold ozs. 735 662 1,206 1,240 Cash
costs per oz./silver $4.43 $3.29 $4.68 $3.22 Full costs per
oz./silver $4.78 $4.06 $5.07 $4.10 ENDEAVOR MINE (B) Silver ozs.
58,464 -- 58,464 -- Cash costs per oz./silver $1.89 -- $1.89 --
Full costs per oz./silver $3.13 -- $3.13 -- CONSOLIDATED PRODUCTION
TOTALS Silver ozs. 3,124,715 3,325,246 6,009,361 6,760,337 Gold
ozs. 30,300 28,037 59,723 50,149 Cash costs per oz./silver $5.44
$4.41 $5.12 $4.29 Full costs per oz./silver $6.94 $5.79 $6.64
$5.65$ CONSOLIDATED SALES TOTALS Silver ozs. sold 3,492,000
3,302,000 6,795,000 6,628,000 Gold ozs. sold 34,000 27,000 69,000
48,000 Realized price per silver oz. $7.22 $6.36 $7.06 $6.72
Realized price per gold oz. $431 $398 $427 $396 (A) During the
first quarter of 2005, the Company has 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. Coeur's share of the silver production from May 23, 2005
to June 30, 2005 was 58,464 ounces at a cash cost of $1.89 per
ounce, representing Coeur's agreed upon operating costs
contribution including smelting and refining treatment 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
JUNE 30, 2005 Rochester Silver Cerro Martha Endeavor Total Valley
Bayo Production of Silver (ounces) 1,208,584 559,700 691,846
606,121 58,464 3,124,715 Cash Costs per ounce $ 7.58 $8.05 $0.76
$4.43 $1.89 $5.44 Total Cash Costs (thousands) $9,166 $4,508 $527
$2,683 $111 $16,995 Add/(Subtract): Third Party Smelting Costs
(196) (926) (1,017) (345) (58) (2,542) By-Product Credit 6,168 690
6,452 314 -- 13,624 Deferred Stripping and other adjustments (101)
-- (18) (101) -- (220) Change in Inventory (8,240) 373 2,600 10
(38) (5,295) Production Costs $6,797 $4,645 $8,544 $2,561 $15
$22,562 THREE MONTHS ENDED JUNE 30, 2004 Rochester Silver Cerro
Martha Total Valley Bayo Production of Silver (ounces) 1,317,006
954,964 576,150 477,126 3,325,246 Cash Costs per ounce $4.54 $4.95
$4.11 $3.29 $4.41 Total Cash Costs (thousands) $5,981 $4,730 $2,370
$1,571 $14,652 Add/(Subtract): Third Party Smelting Costs (190)
(1,401) (1,701) (318) (3,610) By-Product Credit 6,274 920 4,439 260
11,893 Deferred Stripping Adjustment (101) -- (10) (28) (139)
Change in Inventory (3,903) (361) (1,876) (290) (6,430) Production
Costs $8,061 $3,888 $3,222 $1,195 $16,366 SIX MONTHS ENDED JUNE 30,
2005 Rochester Silver Cerro Martha Endeavor Total Valley Bayo
Production of Silver (ounces) 2,344,581 1,269,996 1,351,139 985,181
58,464 6,009,361 Cash Costs per ounce $6.96 $7.32 $0.31 $4.68 $1.89
$5.12 Total Cash Costs (thousands) $16,319 $9,290 $417 $4,615 $111
$30,753 Add/(Subtract): Third Party Smelting Costs (405) (2,132)
(2,025) (567) (58) (5,189) By-Product Credit 12,160 1,628 12,800
515 -- 27,102 Deferred Stripping and other adjustments (201) --
(10) (174) -- (385) Change in Inventory (11,173) (324) 3,266 (192)
(38) (8,461) Production Costs $16,700 $8,462 $14,448 $4,196 $15
$43,821 SIX MONTHS ENDED JUNE 30, 2004 Rochester Silver Cerro
Martha Total Valley Bayo Production of Silver (ounces) 2,627,301
1,861,944 1,372,695 898,397 6,760,337 Cash Costs per ounce $5.06
$4.94 $2.61 $3.22 $4.29 Total Cash Costs (thousands) $13,298 $9,199
$3,577 $2,894 $28,968 Add/(Subtract): Third Party Smelting Costs
(421) (2,680) (2,458) (486) (6,045) By-Product Credit 10,962 1,713
8,510 496 21,681 Deferred Stripping Adjustment (200) -- (10) (55)
(65) Change in Inventory (7,800) 898 (3,519) (602) (11,223)
Production Costs $15,839 $9,130 $6,100 $2,247 $33,316 COEUR D'ALENE
MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) June 30, December 31, 2005 2004 ASSETS (In Thousands)
CURRENT ASSETS Cash and cash equivalents $233,280 $273,079
Short-term investments 46,977 48,993 Receivables 22,506 10,634 Ore
on leach pad 15,493 15,046 Metal and other inventory 16,654 17,639
Deferred tax assets 1,573 2,592 Prepaid expenses and other 3,669
3,727 340,152 371,710 PROPERTY, PLANT AND EQUIPMENT Property, plant
and equipment 88,842 85,070 Less accumulated depreciation (57,442)
(54,154) 31,400 30,916 MINING PROPERTIES Operational mining
properties 124,055 121,344 Less accumulated depletion (104,913)
(100,079) 19,142 21,265 Mineral interests 35,152 20,125
Non-producing and development properties 30,618 26,071 84,912
67,461 OTHER ASSETS Non-current ore on leach pad 38,401 28,740
Restricted cash and cash equivalents 13,119 10,847 Debt issuance
costs, net 5,605 5,757 Deferred tax assets 2,858 1,811 Other 9,205
8,535 69,188 55,690 TOTAL ASSETS $525,652 $525,777 COEUR D'ALENE
MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) June 30, December 31, 2005 2004 (In Thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts
payable $ 11,891 $8,389 Accrued liabilities and other 5,059 5,306
Accrued interest payable 1,031 1,035 Accrued salaries and wages
5,209 6,379 Current portion of remediation costs 484 1,041 23,674
22,150 LONG-TERM LIABILITIES 1 1/4% Convertible Senior Notes due
January 2024 180,000 180,000 Reclamation and mine closure 24,879
23,670 Other long-term liabilities 6,409 6,503 211,288 210,173
COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common Stock,
par value $1.00 per share-authorized 500,000,000 shares, issued
241,120,982 and 241,028,303 shares in 2005 and 2004 (1,059,211
shares held in treasury) 241,121 241,028 Additional paid-in capital
630,151 629,809 Accumulated deficit (565,227) (561,908) Shares held
in treasury (13,190) (13,190) Accumulated other comprehensive loss
(2,165) (2,285) 290,690 293,454 TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $525,652 $525,777 CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited) Three Months ended June 30, Six Months ended June 30,
2005 2004 2005 2004 (In Thousands, except per share data) REVENUES
Sales of metal $36,939 $26,381 $73,146 $56,031 Interest and other
1,357 733 3,298 86 Total revenues 38,296 27,114 76,444 56,117 COSTS
AND EXPENSES Production 22,562 16,366 43,821 33,316 Depreciation
and depletion 4,873 4,773 9,534 9,619 Administrative and general
4,852 3,066 10,378 6,674 Exploration 3,346 3,041 6,464 4,985
Pre-development 3,717 4,037 6,086 5,651 Interest 562 657 1,132
1,595 Litigation settlement -- -- 1,600 -- Other holding costs 336
588 472 1,344 Total cost and expenses 40,248 32,528 79,487 63,184
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES (1,952) (5,414)
(3,043) (7,067) Income tax (provision) benefit 404 -- (275) -- NET
LOSS (1,548) (5,414) (3,318) (7,067) Other comprehensive loss 121
(652) 120 (860) COMPREHENSIVE LOSS $(1,427) $(6,066) $(3,198)
$(7,927) BASIC AND DILUTED LOSS PER SHARE: Net loss $(0.01) $(0.03)
$(0.01) $(0.03) Weighted average number of shares of common stock
outstanding 240,028 213,249 240,007 213,195 COEUR D'ALENE MINES
CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended June 30, 2005 and 2004 (Unaudited) Three Months
Ended June 30, Six Months Ended June 30, 2005 2004 2005 2004 (In
Thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(1,548)
$(5,414) $(3,318) $(7,067) Add (deduct) non-cash items:
Depreciation and depletion 4,873 4,773 9,534 9,619 Deferred taxes
(706) (27) Unrealized (gain) loss on embedded derivative 546 2,884
(79) 1,756 Amortization of premium/discount 273 442 586 827
Amortization of restricted stock compensation 174 106 574 673
Amortization of debt issuance costs 76 76 152 256 Other charges 247
(117) 268 113 Changes in Operating Assets and Liabilities:
Receivables (10,308) 1,369 (11,872) (2,065) Prepaid expenses and
other (1,603) 383 (722) 819 Inventories (5,769) (4,898) (9,122)
(9,548) Accounts payable and accrued liabilities 4,566 1,359 2,384
(2,495) CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (9,179) 963
(11,642) (7,112) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of
short- term investments (12,294) (6,735) (22,840) (58,842) Proceeds
from sales of short-term investments 16,097 3,120 22,112 12,710
Capital expenditures (22,657) (1,646) (26,834) (3,126) Other 96 22
113 237 CASH USED IN INVESTING ACTIVITIES (18,758) (5,239) (27,449)
(49,021) CASH FLOWS FROM FINANCING ACTIVITIES: Retirement of
long-term debt (76) -- (156) (9,561) Retirement of building loan --
-- -- (1,200) Proceeds from issuance of subordinated notes -- -- --
180,000 Debt issuance costs -- -- -- (6,097) Proceeds from issuance
of common stock 17 -- (552) -- Bank Borrowings on working capital
facility -- -- -- 6,056 Payments to Bank on working capital
facility -- (2,727) -- (8,423) Common stock repurchase -- -- --
(793) Other -- (1,452) -- (1,407) CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES: (59) (4,179) (708) 158,575 INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS (27,996) (8,455) (39,799)
102,442 Cash and cash equivalents at beginning of period 261,276
173,314 273,079 62,417 Cash and cash equivalents at end of period
$233,280 $164,859 $233,280 $164,859 Cautionary Statement This
document contains 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 these forward-looking statements,
whether as a result of new information, future events or otherwise.
Cerro Bayo and Martha Ore Reserve Update CERRO BAYO MINERAL
RESERVES Mid-Year 2005(1) Short Silver Silver Gold Tons Grade
Ounces Grade Gold (000s) (oz/t) (000s) (oz/t) Ounces Proven 362.7
8.11 2,940 0.142 51,500 Probable 575.4 7.09 4,073 0.133 76,600
Total 938.1 7.48 7,013 0.137 128,100 Year-End 2004(2) Proven 336.2
7.53 2,533 0.129 43,200 Probable 525.8 6.80 3,576 0.138 72,700
Total 862.0 7.09 6,109 0.134 115,900 2005 Production (Jan - Jun) -
Mined 1,325 31,482 MARTHA MINERAL RESERVES Mid-Year 2005(1) Short
Silver Silver Gold Tons Grade Ounces Grade Gold (000s) (oz/t)
(000s) (oz/t) Ounces Proven 41.9 58.81 2,463 0.076 3,200 Probable
32.0 64.26 2,054 0.088 2,800 Total 73.9 61.17 4,517 0.081 6,000
Year-End 2004(2) Proven 15.4 51.92 801 0.071 1,100 Probable 41.9
74.70 3,129 0.083 3,500 Total 57.3 68.57 3,930 0.080 4,600 2005
Production (Jan - Jun) - Shipped 1,042 1,305 (1) $410 Au, $6.50 Ag
(2) $390 Au, $6.00 Ag Notes: Mid-year 2005 reserves, effective June
30, 2005, reflect first half 2005 mine production, updated pricing
assumptions, and changes due to exploration work in the period
January through June, 2005. Details of all other key assumptions,
parameters and methods used to estimate these mineral reserves are
discussed in the Company's Annual Report on Form 10-K and in the
applicable technical reports filed with the respective U.S. and
Canadian securities regulatory authorities. There are no known
environmental, permitting, legal, title, taxation, sociopolitical,
or marketing conditions that would adversely affect the Mid-year
2005 reserves relative to those of year-end 2004. 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. 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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