CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(UNAUDITED)
December 31,
-------------------
2002 2001 (A)
--------- ---------
ASSETS (In Thousands)
CURRENT ASSETS
Cash and cash equivalents $9,093 $14,714
Short-term investments 518 3,437
Receivables and prepaid expenses, net 7,185 5,902
Ore on leach pad 11,082 26,096
Metal and other inventory 14,846 7,836
--------- ---------
42,724 57,985
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 76,194 99,096
Less accumulated depreciation (49,531) (63,017)
--------- ---------
26,663 36,079
MINING PROPERTIES
Operational mining properties 92,149 115,150
Less accumulated depletion (71,832) (79,697)
--------- ---------
20,317 35,453
Developmental properties 46,953 46,685
--------- ---------
67,270 82,138
OTHER ASSETS
Non-current ore on leach pad 15,474 15,079
Restricted investments 13,108 11,219
Debt issuance costs, net 1,035 3,262
Other 6,814 4,618
--------- ---------
36,431 34,178
--------- ---------
TOTAL ASSETS $173,088 $210,380
========= =========
(A) The 2001 balance sheet has been corrected to reclassify $11.2
million of restricted investments and $15.1 million of ore on
leach pad from current assets to long-term assets.
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(UNAUDITED)
December 31,
-------------------
2002 2001
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY (In Thousands)
CURRENT LIABILITIES
Accounts payable $5,962 $3,721
Accrued liabilities 4,334 5,503
Accrued interest payable 1,610 2,720
Accrued salaries and wages 5,594 4,542
Current portion of remediation costs 926 2,058
13 3/8% Convertible Senior Subordinated Notes Due
December 2003 12,735 -
6% Convertible Subordinated Debentures Due June
2002 - 23,171
Current portion of bank financing 4,918 -
--------- ---------
36,079 41,715
LONG-TERM LIABILITIES
13 3/8% Convertible Senior Subordinated Notes due
December 2003 - 41,399
6 3/8% Convertible Subordinated Debentures due
January 2004 55,132 66,270
7 1/4% Convertible Subordinated Debentures due
October 2005 11,665 14,650
Reclamation and mine closure 14,458 14,462
Other long-term liabilities 8,456 5,096
--------- ---------
89,711 141,877
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common Stock, par value $1.00 per
share-authorized 250,000,000 shares, issued
119,653,267 and 49,278,232 in 2002 and 2001
(1,059,211 shares held in treasury) 119,653 49,278
Additional paid in capital 420,863 388,050
Accumulated deficit (479,207) (397,999)
Shares held in treasury (13,190) (13,190)
Accumulated other comprehensive income (loss) (821) 649
--------- ---------
47,298 26,788
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $173,088 $210,380
========= =========
CONSOLIDATED STATEMENTS OF OPERATIONS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(UNAUDITED)
3 Months Ended 12 Months Ended
December 31, December 31,
--------------------- ---------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
(In thousands except for per share data)
REVENUES
Sales of metal $25,486 $16,757 $85,944 $69,200
Interest and other 3,343 16 8,544 2,712
---------- ---------- ---------- ----------
Total revenues 28,829 16,773 94,488 71,912
COSTS AND EXPENSES
Production 23,931 17,028 82,855 69,149
Depreciation and depletion 5,381 3,303 13,511 11,347
Administrative and general 3,082 1,509 8,806 8,122
Exploration 1,452 1,147 3,849 6,362
Pre-feasibility 306 1,754 2,606 3,684
Interest 4,517 3,744 21,948 14,592
Write-down of mining
properties and other 20,136 6,576 23,060 9,946
Loss (gain) on exchange and
early retirement of debt 16,141 - 19,061 (48,217)
---------- ---------- ---------- ----------
Total cost and expenses 74,946 35,061 175,696 74,985
========== ========== ========== ----------
NET LOSS FROM CONTINUING
OPERATIONS (46,117) (18,288) (81,208) (3,073)
Income tax (provision)
benefit - (8) - 6
---------- ---------- ---------- ----------
NET LOSS (46,117) (18,296) (81,208) (3,067)
Unrealized holding gain
(loss) on securities and
change in fair value of
derivative hedging
instruments, net of
settlements 744 (257) (307) 821
Excess additional pension
liability over
unrecognized prior
service cost (1,163) - (1,163) -
---------- ---------- ---------- ----------
COMPREHENSIVE LOSS $(46,536) $(18,553) $(82,678) $(2,246)
========== ========== ========== ==========
NET LOSS ATTRIBUTABLE TO
COMMON SHAREHOLDERS $(46,117) $(18,296) $(81,208) $ (3,067)
========== ========== ========== ==========
BASIC AND DILUTED LOSS PER
SHARE:
Weighted average number of
shares of common stock 104,422 44,613 78,193 41,946
========== ========== ========== ==========
Net loss per common share $(0.44) $(0.41) $(1.04) $(0.07)
========== ========== ========== ==========
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(UNAUDITED)
3 Months Ended 12 Months Ended
December 31, December 31,
------------------- -------------------
2002 2001 2002 2001
--------- --------- --------- ---------
(In thousands)
---------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $(46,117) $(18,296) $(81,208) $(3,067)
Add (deduct) noncash items:
Depreciation and depletion 5,138 3,303 13,511 11,347
Loss (gain) on early
retirement of debt 16,144 - 19,061 (48,217)
Interest expense on
Convertible Senior
Subordinated Notes paid in
Common Stock 3,962 2,868 13,585 2,868
Loss on write down of Handy &
Harmon inventory - 906 - 1,354
Other charges (1,968) (1,774) 24 1,780
Write-down of mining
properties 19,047 6,087 19,047 6,087
Unrealized (gain) loss on
written call options - 46 62 (526)
(Gain) loss on sale of
short-term investment 166 (431) (916) (431)
Changes in Operating Assets
and Liabilities:
Receivables 398 388 (1,795) 3,807
Inventories 1,023 2,238 7,311 4,616
Accounts payable and accrued
liabilities 1,418 608 2,834 (9,514)
--------- --------- --------- ---------
CASH USED IN OPERATING
ACTIVITIES (789) (4,149) (8,484) (29,896)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of short-term
investments (30,449) - (40,131) (1,256)
Proceeds from sales of
short-term investments 28,070 592 40,870 6,195
Proceeds from sale of assets 3,852 124 4,117 14,857
Expenditures on mining assets (2,385) (1,703) (10,316) (6,956)
Other (41) 359 (515) (208)
--------- --------- --------- ---------
CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (953) (628) (5,975) 12,632
CASH FLOWS FROM FINANCING
ACTIVITIES:
Retirement of long-term debt - - (9,427) (743)
Payment of exchange offer
costs (326) (253) (2,468) (2,204)
Proceeds from issuance of 13
3/8% Notes -Series II - - 16,000 -
Bank Borrowings on working
capital facility, net of
payments 3,976 - 4,918 -
Other (32) (77) (185) (302)
--------- --------- --------- ---------
CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES: 3,618 (330) 8,838 (3,249)
--------- --------- --------- ---------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 1,876 (5,098) (5,621) (20,513)
Cash and cash equivalents at
beginning of period 7,217 19,812 14,714 35,227
--------- --------- --------- ---------
Cash and cash equivalents at
end of period $9,093 $14,714 $9,093 $14,714
========= ========= ========= =========
During the 4th quarter of 2002, holders of $2.9 million principal amount of the Series I 13 3/8% Convertible Senior Subordinated Notes due December 31, 2003 (the "Series I 13 3/8% Notes") and holders of $7.4 million principal amount of the Series II 13 3/8% Convertible Senior Subordinated Notes due December 31, 2003 (the "Series II 13 3/8% Notes") voluntarily converted such notes into approximately 2.0 million and 5.5 million shares of Common Stock, respectively. In addition, 3.6 million shares of common stock were issued as payment for $2.8 million of interest expense on the Notes in the 4th quarter.
During the 4th quarter of 2002 the Company purchased $11.1 million and $0.3 million principal amount of its outstanding 6 3/8% and 7-1/4% Convertible Subordinated Debentures, respectively, in exchange for 8.7 million shares of common stock and recorded a loss of approximately $16.1 million. In addition, 0.9 million shares of common stock were issued as payment for $1.2 million of interest expense on these Debentures.
In May 2002, the Company issued $21.5 million principal amount of Series II 13 3/8% Notes, for proceeds of approximately $13.5 million, net of discount of $5.5 million and net of offering costs of approximately $2.5 million.
During the year ending December 31, 2002, holders of $28.7 million principal amount of the Series I 13 3/8% Convertible Senior Subordinated Notes due December 31, 2003 (the "Series I 13 3/8% Notes") and holders of $21.5 million principal amount of the Series II 13 3/8% Convertible Senior Subordinated Notes due December 31, 2003 (the "Series II 13 3/8% Notes")voluntarily converted such notes into approximately 21.2 million and 15.9 million shares of Common Stock, respectively. In addition, 8.0 million shares of common stock were issued as payment for $12.3 million of interest expense on the Notes in the 4th quarter.
During the year ending December 31, 2002 the Company repurchased $13.7 million, $11.1 million and $3.0 million principal amount of its outstanding 6%, 6-3/8% and 7-1/4% Convertible Subordinated Debentures, respectively, in exchange for 24.4 million shares of common stock and recorded a loss of approximately $19.1 million. In addition, 0.9 million shares of common stock were issued as payment for $1.2 million of interest expense on these Debentures.
During the 3rd quarter of 2001, the Company issued a total of $43.2 million principal amount of 13 3/8% Convertible Senior Subordinated Notes in connection with an exchange offer extended to the holders of outstanding convertible subordinated debentures and recorded a gain of $39.2 million.
During the year ending December 31, 2001, holders of $1.3 million principal amount of the Series I 13 3/8% Convertible Senior Subordinated Notes due December 31, 2003 (the "Series I 13 3/8% Notes") voluntarily converted such notes into approximately 1.2 million shares of Common Stock. In addition, 3.4 million shares of common stock were issued as payment for $2.9 million of interest expense on the Notes in the 4th quarter.
During the year ending December 31, 2001 the Company purchased $16.0 million principal amount of its outstanding 7-1/4% Convertible Subordinated Debentures, in exchange for 6.0 million shares of common stock and recorded a gain of approximately $9.0 million.