-- HIGHLIGHTS -- COEUR D'ALENE, Idaho, March 7
/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 record quarterly net income
of $9.9 million, or $0.04 per diluted share, for the fourth quarter
of 2005, compared to net income of $8.3 million, or $0.03 per
diluted share, for the year-ago period. Results for the year-ago
quarter included a tax benefit of $5.8 million. For the full year
2005, the company reported net income of $10.6 million, or $0.04
per diluted share, compared to a net loss of $16.9 million, or
$0.08 per diluted share, for 2004. Revenues for the fourth quarter
and full year of 2005 reached all-time highs. Revenue for the
fourth quarter of 2005 was $54.8 million, a 22 percent increase
compared to revenue of $44.8 million in the year-ago period.
Revenue for the full year of 2005 was $172.3 million, a 30 percent
increase compared to revenue of $132.8 million in the year-ago
period. In commenting on the company's performance, Dennis E.
Wheeler, Chairman, President and Chief Executive Officer, said,
"The company reported an all-time record level of quarterly net
income in the fourth quarter of 2005 due in large measure to solid
overall operating performance in a market characterized by strong
demand and robust price levels." Wheeler added, "We are seeing the
benefits of our strategy to significantly increase our low-cost
production ounces, reserves, cash flow and resulting earnings, a
strategy that was strengthened by our 2005 Australian acquisitions.
Our cash cost per ounce of silver remained very competitive and
actually showed a 30 percent decline during the second half of 2005
as compared with the first six months of the year." Coeur currently
expects 2006 silver production to be approximately 18 million
ounces, a 31 percent increase over the level of 2005, and depending
on the outcome of the company's review of strategic alternatives
for Coeur Silver Valley in Idaho. The company expects a
consolidated silver cash cost per ounce of approximately $4.11 per
ounce, approximately 4 percent below the consolidated cash cost for
2005. The company expects full-year gold production to be
approximately 129,000 ounces. Highlights by Individual Property *
Cerro Bayo (Chile) - At a silver cash cost of $0.54 per ounce for
2005, Cerro Bayo remained the lowest-cost mine in Coeur's system.
Coeur's exploration efforts during 2005 at Cerro Bayo were
extremely successful, increasing proven and probable silver mineral
reserves by 22 percent and gold by 14 percent. In addition,
measured and indicated silver mineral resources increased by 12
percent and inferred by 107 percent, while measured and indicated
gold mineral resources increased by 18 percent and inferred by 59
percent -- all compared to year-end 2004 levels. Fourth quarter
silver production continued a trend of successively higher
quarterly production during 2005, and was 18 percent above
production in the first quarter of the year due to improved grade.
Silver and gold production in the fourth quarter of 2005 were below
the unusually high levels of the year-ago quarter due to fewer tons
mined. * Martha (Argentina) - silver production in the fourth
quarter of 2005 was up 9 percent relative to the year-ago quarter.
Silver cash cost per ounce was generally consistent at $4.60 during
the year. Despite record production levels in 2005, Coeur increased
silver proven and probable mineral reserves at Martha during the
year, and more than doubled its inferred silver mineral resource. *
Endeavor (Australia) - Since Coeur's acquisition of the Endeavor
mine's silver reserves and production in May of 2005, the property
contributed 316,169 silver ounces at a low cash cost per ounce of
$2.05. Silver production in the fourth quarter of 2005 was affected
by an uncontrolled rock fall that limited mining activity and
affected cash cost per ounce. Coeur expects 2006 production to
approach an annual rate of approximately 1 million ounces, with
more than half of that amount coming in the second half of the
year. (Year-ago comparisons for Endeavor are not meaningful because
the mineral interest was acquired in the second quarter of 2005.)
In addition to providing low-cost silver production, Endeavor
contributed more than 23 million ounces to Coeur's proven and
probable mineral reserves. * Broken Hill (Australia) - Since
Coeur's acquisition of the Broken Hill mine's silver reserves and
production in September of 2005, the property contributed 657,093
ounces of silver production at a low cash cost per ounce of $2.72.
Silver production in the fourth quarter was 574,083 ounces.
(Year-ago comparisons for Broken Hill are not meaningful because
the mineral interest was acquired in the third quarter of 2005.) In
addition to providing low-cost silver production, Broken Hill
contributed nearly 15 million ounces to Coeur's proven and probable
mineral reserves. * Rochester (Nevada) - This property had an
exceptionally strong second half of the year, with silver
production 44 percent above that of the first half of 2005, and
gold production 48 percent above the level of the first half.
Additionally, silver cash cost per ounce declined 52 percent during
the second half of 2005, despite an upward trend in the price of
energy and steel. Silver and gold production for the fourth quarter
were modestly below the levels of a year-ago due to fewer tons
mined. * Galena (Coeur Silver Valley, Idaho) - Silver production
for the fourth quarter of 2005 was below that of the fourth quarter
of 2004 due to lower than expected ore grades and shorter vein
lengths in certain areas of the mine. The same factors caused an
increase in cash cost per ounce of silver for the fourth quarter of
2005 relative to the year-ago period. However, over the course of
the fourth quarter and into early 2006, Galena has reported a trend
of improved monthly production and indications of higher ore
grades. As previously disclosed, the company is evaluating
strategic alternatives for Galena and the associated assets of
Coeur Silver Valley. The company has said those alternatives could
include a possible sale of this subsidiary. Increase in Proven and
Probable Silver Reserves As of January 1, 2006, the company's
proven and probable silver mineral reserves total 221.4 million
ounces, a 13 percent increase relative to the level of January 1,
2005, largely due to increases at the company's South American
properties and the acquisitions in Australia. Proven and probable
gold mineral reserves at January 1, 2006 were 1.3 million ounces,
and the company remains optimistic for expansion of gold reserves
due to ongoing exploration drilling at Kensington, where Coeur has
focused on further definition and expansion of its mineral
resources and reserves. Capital Investment and Balance Sheet
Highlights The company had $240.4 million in cash and short-term
investments as of December 31, 2005. Capital spending during the
fourth quarter of 2005 totaled $31.7 million, primarily associated
with the Kensington gold mine. For the full year 2005, capital
investment totaled $116.8 million, primarily associated with
Kensington and the acquisitions of the Endeavor and Broken Hill
assets in Australia. The company currently expects capital
investment in 2006 to approximate $182 million, primarily
associated with Kensington, the resumption of a more aggressive
construction schedule at the San Bartolome silver mine in Bolivia,
and the remaining payment on the Endeavor acquisition. Update on
Kensington Gold Project (Alaska) As previously announced, the U.S.
Army Corps of Engineers temporarily suspended the mine's Section
404. However, the company has continued to conduct construction
activities not governed by the Section 404 permit. The Company
believes the permit will be reinstated upon completion of the
review, which is expected in the first quarter of 2006. Due to a
broad increase in the cost of materials and supplies impacting the
industry in general, the company retained an independent
engineering firm to review its capital cost estimate for Kensington
during the fourth quarter of 2005. As a result of increased
earthwork requirements, increased storm water management programs,
the costs associated with challenges to the project's permits, and
the general increase in commodity prices, the company currently
estimates the total cost of construction to be approximately $190
million. The project is expected to have an annual production rate
of 100,000 ounces and the estimated cash operating cost per ounce
is expected to be $250. The company expects Kensington capital
investment to total approximately $77 million during 2006. The
company currently expects that Kensington can begin operations
during 2007. During the second half of 2005, the company began an
extensive exploration program at Kensington designed to increase
the size and geologic continuity of gold mineralization currently
in indicated and inferred mineral resources. The company completed
34,000 feet of core drilling from 74 drill holes. Of these holes,
87 percent encountered gold mineralization equal to or greater than
0.12 ounces per ton, the cut-off for its mineral resources. In
addition, 5,000 feet of core drilling was completed on its adjacent
Jualin property. The company continues to drill at both properties
and expects to update its mineral reserves and mineral resources at
Kensington during 2006 as information is received. Update on San
Bartolome Silver Project (Bolivia) An updated project review has
confirmed the $135 million capital cost estimates for the project,
which is expected to produce 6 to 8 million annual ounces of silver
at a cash cost of $3.50 per ounce. The Bolivian national election
was recently completed without the necessity for a runoff, with the
election of President Evo Morales. The Company is targeting
mid-year 2006 as the date to resume full scale construction
activities at the site. Additional construction work planned for
the first half of 2006 includes the construction of access roads to
and around the site, rough-cut grading of the mill site,
construction of ore stockpile areas, and the construction of a
fence around the perimeter of the plant site area. 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.
Conference Call Information Coeur d'Alene Mines Corporation will
hold a conference call to discuss the Company's fourth quarter 2005
results at 1 p.m. Eastern time on March 7, 2006. To listen live via
telephone, call (800) 811-7286 (US and Canada) or (913) 981-4902
(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 March 13, 2006. The replay
dial-in numbers are (888) 203-1112 (US and Canada) and (719)
457-0820 (International) and the access code is 6145142. 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.
Contact: Scott Lamb 208-665-0777 COEUR D'ALENE MINES CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) Three Months Ended Twelve Months Ended
December 31, December 31, 2005 2004 2005 2004 (In Thousands, except
per share data) REVENUES Sales of metal $54,793 $ 44,766 $172,336
$132,807 COSTS and Expenses Production costs applicable to sales
31,897 28,225 104,930 82,352 Depreciation and depletion 6,513 4,319
20,885 18,800 Administrative and general 4,806 4,720 19,417 15,914
Exploration 2,564 2,648 11,914 9,651 Pre-development 5 2,681 6,057
11,449 Write-down of mining properties and other holding costs 793
377 1,379 1,983 Litigation settlement -- -- 1,600 -- Total cost and
expenses 46,578 42,970 166,182 140,149 OTHER INCOME AND EXPENSE
Interest and other income 3,015 2,063 8,365 3,205 Interest expense,
net of capitalized interest (616) (574) (2,485) (2,831) Merger
expenses -- (781) -- (15,675) Total other income and expense 2,399
708 5,880 (15,301) INCOME (LOSS) FROM CONTINUING OPERATIONS 10,614
2,504 12,034 (22,643) Income tax (provision) benefit (670) 5,785
(1,483) 5,785 NET INCOME (LOSS) 9,944 8,289 10,551 (16,858) Other
comprehensive income (loss) 192 (382) 447 (908) COMPREHENSIVE
INCOME (LOSS) $10,136 $7,907 $10,998 $(17,766) BASIC AND DILUTED
INCOME (LOSS) PER SHARE: Income (loss) per share Net income (loss)
$0.04 $0.04 $0.04 $(0.08) Diluted income (loss) per share: Net
income (loss) $0.04 $0.03 $0.04 $(0.08) Weighted average number of
shares of common stock Basic 249,868 224,163 242,915 215,969
Diluted 274,384 248,747 243,683 215,969 COEUR D'ALENE MINES
CORPORATION PRODUCTION STATISTICS Three Months Ended Twelve Months
Ended December 31, December 31, 2005 2004 2005 2004 ROCHESTER MINE
Silver ozs. 1,666,958 1,717,646 5,720,489 5,669,074 Gold ozs.
20,458 24,544 70,298 69,456 Cash Costs per oz./silver $3.02 $1.97
$4.82 $3.93 Full Costs per oz./silver $4.66 $3.52 $6.66 $5.66
GALENA MINE (COEUR SILVER VALLEY) Silver ozs. 330,537 874,573
2,060,338 3,521,813 Gold ozs. 77 88 282 354 Cash Costs per
oz./silver $12.40 $5.94 $8.37 $5.46 Full Costs per oz./silver
$13.88 $6.55 $9.34 $6.02 CERRO BAYO MINE Silver ozs. 781,083
1,256,428 2,875,047 3,235,192 Gold ozs. 14,347 21,837 61,058 57,558
Cash Costs per oz./silver $1.09 $(1.05) $0.54 $1.01 Full Costs per
oz./silver $3.18 $(0.77) $2.30 $2.43 MARTHA MINE Silver ozs.
538,411 492,952 2,093,464 1,709,069 Gold ozs. 657 674 2,589 2,318
Cash costs per oz./silver $4.84 $4.81 $4.60 $4.08 Full costs per
oz./silver $5.29 $5.95 $5.01 $5.05 ENDEAVOR MINE (A) Silver ozs.
37,091 -- 316,169 -- Cash Costs per oz./silver $2.89 -- $2.05 --
Full Costs per oz./silver $4.64 -- $3.35 -- BROKEN HILL MINE (A)
Silver ozs. 574,083 -- 657,093 -- Cash costs per oz./silver $2.73
-- $2.72 -- Full costs per oz./silver $5.60 -- $5.47 --
CONSOLIDATED PRODUCTION TOTALS Silver ozs. 3,928,163 4,341,599
13,722,600 14,135,148 Gold ozs. 35,538 47,143 134,227 129,686 Cash
costs per oz./silver $3.63 $2.22 $4.26 $3.66 Full costs per
oz./silver $5.37 $3.17 $5.77 $4.94 CONSOLIDATED SALES TOTAL Silver
ozs. sold 4,253,170 3,949,650 14,707,933 13,354,961 Gold ozs. sold
39,233 42,989 146,749 117,257 Realized price per silver oz. $8.23
$7.20 $7.44 $6.82 Realized price per gold oz. $497 $427 $452 $409
(A) The Company acquired its interests in the Endeavor and Broken
Hill mines in May 2005 and September 2005, respectively. The
following tables present reconciliation between Non-GAAP cash costs
per ounce to GAAP production costs: Year Ended December 31, 2005
(In thousands except ounces and per ounce costs) Rochester Galena
Cerro Bayo Martha Production of Silver (ounces) 5,720,489 2,060,338
2,875,047 2,093,464 Cash Costs per ounce $4.82 $8.37 $0.54 $4.60
Total Cash Costs $27,575 $17,248 $1,542 $9,637 Add/Subtract: Third
Party Smelting Costs -- (3,091) (2,783) (1,165) By-Product Credit
31,601 2,722 27,114 1,152 Deferred Stripping Adjustment 140 -- --
-- Change in Inventory (14,769) (181) 7,421 (328) Production costs
applicable to sales $44,547 $16,698 $33,294 $9,296 Year Ended
December 31, 2005 (In thousands except ounces and per ounce costs)
Endeavor Broken Hill Total Production of Silver (ounces) 316,169
657,093 13,722,600 Cash Costs per ounce $2.05 $2.72 $4.26 Total
Cash Costs $648 $1,790 $58,440 Add/Subtract: Third Party Smelting
Costs (370) (570) (7,979) By-Product Credit -- -- 62,589 Deferred
Stripping Adjustment -- -- 140 Change in Inventory -- (403) (8,260)
Production costs applicable to sales $278 $817 $104,930 Year ended
December 31, 2004 (In thousands except ounces and per ounce costs)
Rochester Galena Cerro Bayo Martha Production of Silver (ounces)
5,669,074 3,521,813 3,235,192 1,709,069 Cash Costs per ounce $3.93
$5.46 $1.01 $4.08 Total Cash Costs (000's) $22,287 $19,231 $3,253
$6,975 Add/Subtract: Third Party Smelting Costs -- (5,117) (4,106)
(887) By-Product Credit 28,646 3,766 23,845 951 Deferred Stripping
Adjustment (403) 1 110 -- Change in Inventory (13,380) 756 (3,212)
(364) Production costs applicable to sales $37,150 $18,637 $19,890
$6,675 Year ended December 31, 2004 (In thousands except ounces and
per ounce costs) Endeavor Broken Hill Total Production of Silver
(ounces) -- -- 14,135,148 Cash Costs per ounce -- -- $3.66 Total
Cash Costs (000's) -- -- $51,746 Add/Subtract: Third Party Smelting
Costs -- -- (10,110) By-Product Credit -- -- 57,208 Deferred
Stripping Adjustment -- -- (292) Change in Inventory -- -- (16,200)
Production costs applicable to sales -- -- $82,352 Three Months
Ended December 31, 2005 (In thousands except ounces and per ounce
costs) Rochester Galena Cerro Bayo Martha Production of Silver
(ounces) 1,666,958 330,537 781,083 538,410 Cash Costs per ounce
$3.02 $12.40 $1.09 $4.84 Total Cash Costs (000's) $5,040 $4,099
$851 $2,607 Add/Subtract: Third Party Smelting Costs -- (471) (685)
(354) By-Product Credit 9,964 498 6,965 317 Deferred Stripping
Adjustment 395 -- -- -- Change in Inventory 355 140 2,150 (703)
Production costs applicable to sales $15,754 $4,266 $9,281 $1,867
Three Months Ended December 31, 2005 (In thousands except ounces
and per ounce costs) Endeavor Broken Hill Total Production of
Silver (ounces) 37,091 574,083 3,928,162 Cash Costs per ounce $2.89
$2.73 $3.63 Total Cash Costs (000's) $107 $1,566 $14,270
Add/Subtract: Third Party Smelting Costs (77) (499) (2,086)
By-Product Credit -- -- 17,744 Deferred Stripping Adjustment -- --
395 Change in Inventory 35 (403) 1,574 Production costs applicable
to sales $65 $664 $31,897 Three Months Ended December 31, 2004 (In
thousands except ounces and per ounce costs) Rochester Galena Cerro
Bayo Martha Production of Silver (ounces) 1,717,646 874,573
1,256,428 492,952 Cash Costs per ounce $1.97 $5.94 $(1.05) $4.81
Total Cash Costs (000's) $3,386 $5,192 $(1,313) $2,371
Add/Subtract: Third Party Smelting Costs -- (1,469) (1,493) (287)
By-Product Credit 10,677 1,207 9,526 293 Deferred Stripping
Adjustment (100) -- 51 -- Change in Inventory (1,141) 442 780 103
Production costs applicable to sales $12,822 $5,372 $7,551 $2,480
Three Months Ended December 31, 2004 (In thousands except ounces
and per ounce costs) Endeavor Broken Hill Total Production of
Silver (ounces) -- -- 4,341,599 Cash Costs per ounce -- -- $2.22
Total Cash Costs (000's) -- -- $9,636 Add/Subtract: Third Party
Smelting Costs -- -- (3,249) By-Product Credit -- -- 21,703
Deferred Stripping Adjustment -- -- (49) Change in Inventory -- --
184 Production costs applicable to sales -- -- $28,225 (1) The
Company acquired its interests in the Endeavor and Broken Hill
mines in May 2005 and September 2005, respectively "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 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, 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, corporate general and administrative
expense, exploration, interest, and pre-feasibility costs and
accruals for mine reclamation. Cash costs calculated and presented
using the "Gold Institute Production Cost Standard" applied
consistently for all periods presented. Cash costs per ounce is a
non-GAAP measurement and you 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 above. COEUR D'ALENE MINES
CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December
31, 2005 2004 ASSETS (In Thousands) CURRENT ASSETS Cash and cash
equivalents $214,626 $273,079 Short-term investments 25,726 48,993
Receivables 30,022 10,634 Ore on leach pad 25,394 15,046 Metal and
other inventory 15,369 17,639 Deferred tax assets 2,255 2,592
Prepaid expenses and other 5,613 3,727 319,005 371,710 PROPERTY,
PLANT AND EQUIPMENT Property, plant and equipment 108,964 85,070
Less accumulated depreciation (59,770) (54,154) 49,194 30,916
MINING PROPERTIES Operational mining properties 131,577 121,344
Less accumulated depletion (109,265) (100,079) 22,312 21,265
Mineral interests 72,201 20,125 Accumulated depletion (2,218) --
69,983 20,125 Non-producing and development properties 72,488
26,071 164,783 67,461 OTHER ASSETS Ore on leach pad, non-current
portion 29,254 28,740 Restricted cash and cash equivalents 16,943
10,847 Debt issuance costs, net 5,454 5,757 Deferred tax assets 923
1,811 Other 9,260 8,535 61,834 55,690 Total assets $594,816
$525,777 COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS December 31, 2005 2004 (In thousands
except share data) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES Accounts payable $17,936 $8,389 Accrued liabilities and
other 6,002 5,306 Accrued interest payable 1,031 1,035 Accrued
salaries and wages 8,419 6,379 Current portion of remediation costs
503 1,041 33,891 22,150 LONG-TERM LIABILITIES 1 1/4% Convertible
Senior Notes due January 2024 180,000 180,000 Reclamation and mine
closure 30,988 23,670 Other long-term liabilities 8,384 6,503
219,372 210,173 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY
Common Stock, par value $1.00 per share; authorized 500,000,000
shares, issued 250,961,353 and 241,028,303 shares in 2005 and 2004
(1,059,211 shares held in treasury) 250,961 241,028 Additional
paid-in capital 656,977 629,809 Accumulated deficit (551,357)
(561,908) Shares held in treasury (13,190) (13,190) Accumulated
other comprehensive loss (1,838) (2,285) 341,553 293,454 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $594,816 $525,777 CONSOLIDATED
STATEMENTS OF CASH FLOWS COEUR D'ALENE MINES CORPORATION AND
SUBSIDIARIES Three Months Ended Twelve Months Ended December 31,
December 31, 2005 2004 2005 2004 (In Thousands) CASH FLOWS FROM
OPERATING ACTIVITIES: Net income (loss) $9,944 $8,289 $10,551
$(16,858) Add (deduct) non-cash items: Depreciation and depletion
6,513 4,319 20,885 18,800 Deferred taxes 1,684 (4,403) 1,629
(4,403) Unrealized (gain) loss on embedded derivative (2,138) 519
(2,863) 881 Amortization of restricted stock compensation 350 143
1,237 1,137 Amortization of debt issuance costs 76 76 303 408
Amortization of premium and/or discount on short-term investments
88 330 790 1,527 Other non-cash charges (173) (56) 250 (18) Changes
in operating assets and liabilities: Receivables (6,480) (3,743)
(19,387) (2,532) Prepaid expenses and other 941 (98) (152) (486)
Inventories 2,062 156 (8,591) (16,798) Accounts payable and accrued
liabilities 1,583 (10,051) 2,023 (239) CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 14,450 (4,519) 6,675 (18,581) CASH FLOWS FROM
INVESTING ACTIVITIES: Purchases of short-term investments (11,238)
(3,669) (45,657) (63,619) Proceeds from sales of short-term
investments 27,089 6,632 62,296 29,864 Capital expenditures
(31,673) (4,656) (116,827) (10,514) Other 199 204 294 482 CASH USED
IN INVESTING ACTIVITIES (15,623) (1,489) (99,894) (43,787) CASH
FLOWS FROM FINANCING ACTIVITIES: Repayment of long-term debt -- --
-- (9,561) Proceeds from issuance of common stock -- 119,803 36,493
119,803 Payments of common stock issuance costs (13) (6,702) (557)
(6,702) Proceeds from issuance of notes -- -- -- 180,000 Payments
of debt issuance costs -- -- -- (6,089) Borrowings from bank on
working capital facility -- -- -- 6,056 Payments to bank on working
capital facility -- -- -- (8,422) Other (250) (70) (1,170) (2,055)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: (263) 113,031
34,766 273,030 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(1,436) 107,023 (58,453) 210,662 Cash and cash equivalents at
beginning of period 216,062 166,056 273,079 62,417 Cash and cash
equivalents at end of period $214,626 $273,079 $214,626 $273,079
Supplemental disclosures of cash flow information Cash paid for:
Interest $23 $-- $2,280 $1,572 Proven Mineral Reserves (Year-end
2005) Grade (ounces/ton) Ounces (000s) Short ______________
____________ Property Location Tons (000s) Silver Gold Silver Gold
Rochester Nevada, USA 10,168 0.86 0.011 8,765 113 Silver Valley
Idaho, USA 236 25.65 -- 6,048 -- Cerro Bayo Chile 439 8.58 0.15
3,764 68 Martha Argentina 25 58.69 0.08 1,488 2 San Bartolome
Bolivia -- -- -- -- -- Kensington Alaska, USA -- -- -- -- --
Endeavor Australia 5,512 1.58 -- 8,681 -- Broken Hill Australia
8,522 1.31 -- 11,134 -- 24,902 39,880 183 Probable Mineral Reserves
(Year-end 2005) Grade (ounces/ton) Ounces (000s) Short
______________ ____________ Property Location Tons (000s) Silver
Gold Silver Gold Rochester Nevada, USA -- -- -- -- -- Silver Valley
Idaho, USA 208 23.20 -- 4,830 -- Cerro Bayo Chile 496 7.48 0.13
3,712 64 Martha Argentina 42 61.26 0.08 2,566 3 San Bartolome
Bolivia 46,176 3.29 -- 151,882 -- Kensington Alaska, USA 4,206 --
0.25 -- 1,050 Endeavor Australia 6,614 2.22 -- 14,661 -- Broken
Hill Australia 2,998 1.27 -- 3,822 -- 60,740 181,473 1,117 1)
Endeavor and Broken Hill reserves are effective as of June 30, 2005
and March 31, 2005, respectively. 2) Metal prices used were
$6.50/oz. Ag and $410.00/oz. Au, except Endeavor which uses a
$7.06/oz. Ag price and San Bartolome which uses $6.00. 3) Mineral
Reserves correspond to Ore Reserves per US SEC classification.
Measured Mineral Resource (Year-end 2005) Grade (ounces/ton) Ounces
(000s) Short ______________ ____________ Property Location Tons
(000s) Silver Gold Silver Gold Rochester Nevada, USA 11,734 1.03
0.010 12,051 117 Silver Valley Idaho, USA 847 12.18 -- 10,308 --
Cerro Bayo Chile 660 6.42 0.13 4,237 85 Martha Argentina 25 38.46
0.05 975 1 San Bartolome Bolivia -- -- -- -- -- Kensington Alaska,
USA -- -- -- -- -- Endeavor Australia 5,291 2.13 -- 11,267 --
Broken Hill Australia 5,655 1.84 -- 10,407 -- 24,212 49,245 203
Indicated Mineral Resource (Year-end 2005) Grade (ounces/ton)
Ounces (000s) Short ______________ ____________ Property Location
Tons (000s) Silver Gold Silver Gold Rochester Nevada, USA 3,912
1.03 0.010 4,018 39 Silver Valley Idaho, USA 635 12.34 -- 7,836 --
Cerro Bayo Chile 1,558 3.72 0.08 5,797 122 Martha Argentina 17
31.21 0.04 516 1 San Bartolome Bolivia 70 2.29 -- 160 -- Kensington
Alaska, USA 617 -- 0.44 -- 269 Endeavor Australia 1,102 2.39 --
2,636 -- Broken Hill Australia 1,742 1.72 -- 3,002 -- 9,653 23,965
431 Inferred Mineral Resource (Year-end 2005) Grade (ounces/ton)
Ounces (000s) Short ______________ ____________ Property Location
Tons (000s) Silver Gold Silver Gold Rochester Nevada, USA -- -- --
-- -- Silver Valley Idaho, USA 1,099 11.07 -- 12,161 -- Cerro Bayo
Chile 1,895 8.13 0.11 15,414 212 Martha Argentina 93 49.80 0.06
4,611 5 San Bartolome Bolivia 1,096 3.52 -- 3,851 -- Kensington
Alaska, USA 2,499 -- 0.23 -- 584 Endeavor Australia 2,094 1.60 --
3,360 -- Broken Hill Australia 3,428 2.17 -- 7,429 -- 12,204 46,826
801 1) Endeavor and Broken Hill mineral resources are effective as
of June 30, 2005 and March 31, 2005, respectively. These tables do
not include additions or depletions through December 31, 2005. 2)
Mineral resources are in addition to mineral reserves and have not
demonstrated economic viability. 3) Mineral resources correspond to
mineralized material per US SEC guidelines. 4) For additional
information relating to the mineral reserve and mineral resource
estimates on each property (including pricing assumptions, cut-off
grades and other parameters, assumptions and methods used to
prepare the estimates), we refer you to its technical report which
is electronically available to the public from the Canadian System
for Electronic Document Analysis and Retrieval at
http://www.sedar.com/. Proven Reserves (Year-end 2004) Grade
(ounces/ton) Ounces (000s) Short ______________ ____________
Property Location Tons (000s) Silver Gold Silver Gold Rochester
Nevada, USA 21,453 0.87 0.01 18,662 195 Silver Valley Idaho, USA
395 18.58 -- 7,346 -- Cerro Bayo Chile 336 7.53 0.13 2,533 43
Martha Argentina 15 51.90 0.07 801 1 San Bartolome Bolivia -- -- --
-- -- Kensington Alaska, USA -- -- -- -- -- 22,199 29,342 239
Probable Reserves (Year-end 2004) Grade (ounces/ton) Ounces (000s)
Short ______________ ____________ Property Location Tons (000s)
Silver Gold Silver Gold Rochester Nevada, USA 2,545 0.81 0.01 2,069
18 Silver Valley Idaho, USA 322 19.15 -- 6,172 -- Cerro Bayo Chile
526 6.80 0.14 3,576 73 Martha Argentina 42 74.70 0.08 3,129 4 San
Bartolome Bolivia 46,176 3.29 -- 151,882 -- Kensington Alaska, USA
4,206 -- 0.25 -- 1,050 53,817 166,828 1,145 Measured Resource
(Year-end 2004) Grade (ounces/ton) Ounces (000s) Short
______________ ____________ Property Location Tons (000s) Silver
Gold Silver Gold Rochester Nevada, USA 26,205 8.81 0.01 21,216 144
Silver Valley Idaho, USA 577 11.10 -- 6,407 -- Cerro Bayo Chile 643
5.74 0.10 3,691 65 Martha Argentina 21 53.72 0.06 1,125 1 San
Bartolome Bolivia -- -- -- -- -- Kensington Alaska, USA -- -- -- --
-- 27,446 32,439 210 Indicated Resource (Year-end 2004) Grade
(ounces/ton) Ounces (000s) Short ______________ ____________
Property Location Tons (000s) Silver Gold Silver Gold Rochester
Nevada, USA 8,551 0.96 0.01 8,243 41 Silver Valley Idaho, USA 553
11.93 -- 6,603 -- Cerro Bayo Chile 1,598 3.3 0.07 5,271 111 Martha
Argentina 20 38 0.05 754 1 San Bartolome Bolivia 70 2.29 -- 160 --
Kensington Alaska, USA 617 -- 0.44 -- 269 11,409 21,031 422
Inferred Resource (Year-end 2004) Grade (ounces/ton) Ounces (000s)
Short ______________ ____________ Property Location Tons (000s)
Silver Gold Silver Gold Rochester Nevada, USA 308 1.73 0.00 533 1
Silver Valley Idaho, USA 1,038 10.28 -- 10,674 -- Cerro Bayo Chile
1,588 4.70 0.08 7,462 133 Martha Argentina 33 60.99 0.06 2,017 2
San Bartolome Bolivia 1,096 3.52 -- 3,851 -- Kensington Alaska, USA
2,499 -- 0.23 -- 584 6,562 24,537 720 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," "inferred"
and "resources" that the SEC guidelines strictly 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, File No. 1-8641 which may be secured from us, or from
the SEC's website at: http://sec.gov/edgar.shtml. The definitions
of proven and probable mineral reserves under Canadian National
Instrument 43-101 are substantially identical to the definitions of
such reserves under Guide 7 of the SEC's Securities Act Industry
Guides. Donald J. Birak, Coeur's Senior Vice President of
Exploration, is the qualified person 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 resources and reserves in
connection with these properties was conducted in a professional
and competent manner. DATASOURCE: Coeur d'Alene Mines Corporation
CONTACT: Scott Lamb of Coeur d'Alene Mines Corporation,
+1-208-665-0777 Web site: http://www.coeur.com/
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