COEUR D'ALENE MINES CORPORATION
PRODUCTION STATISTICS
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
ROCHESTER MINE
Silver ozs. 1,717,646 1,424,392 5,669,074 5,585,385
Gold ozs. 24,544 11,126 69,456 52,363
Cash Costs per oz./silver $1.97 $4.82 $3.93 $4.67
Full Costs per oz./silver $3.53 $5.70 $5.66 $5.58
GALENA MINE
Silver ozs. 874,573 1,001,947 3,521,813 3,735,663
Cash Costs per oz./silver $5.94 $4.76 $5.46 $4.66
Full Costs per oz./silver $6.55 $5.20 $6.02 $5.03
CERRO BAYO/MARTHA
Silver ozs. 1,749,380 1,092,901 4,944,261 4,868,854
Gold ozs. 22,511 14,982 59,876 67,155
Cash Costs per oz./silver $0.60 $0.52 $2.07 $0.60
Full Costs per oz./silver $1.12 $2.19 $3.33 $2.53
CONSOLIDATED TOTALS
Silver ozs. 4,341,599 3,519,240 14,135,148 14,189,902
Gold ozs. 47,055 26,108 129,332 119,518
Cash Costs per oz./silver $2.22 $3.47 $3.66 $3.27
Full Costs per oz./silver $3.17 $4.47 $4.94 $4.39
Silver ozs. sold 3,942,239 3,996,513 13,263,330 14,894,210
Gold ozs. sold 42,588 29,655 115,996 126,942
Average realized silver
price/oz. (restated) (A) $7.08 $5.12 $6.82 $4.89
Average realized gold
price/oz. (restated) (A) $427 $365 $410 $345
(A) Historically, the Company has recorded revenue from
concentrate sales agreements based on the gold and silver prices prevailing at
the time risk of loss and title to the concentrate passes to third-party
smelters (at the lower of month-end spot price or the average monthly price for
that month). The final settlement price is not fixed until a later date
(typically one to three months after shipment) based upon quoted metal prices
by an established metal exchange as set forth in each contract, at such date.
The Company's provisionally priced sales contain an embedded derivative that is
required to be separated from the host contract for accounting purposes. The
host contract is the receivable from the sale of concentrates measured at the
forward price at the time of sale. The embedded derivative does not qualify for
hedge accounting. The embedded derivative is recorded as a derivative asset, in
prepaid expenses and other or, a derivative liability on the balance sheet and
is adjusted to fair value through revenue each period until the date of final
gold and silver settlement. The Company has corrected the error in valuing
these embedded derivatives on the financial statements for the three and twelve
month periods ending December 31, 2004. In addition, the restatement resulted
in an increase in the realized price of silver of $0.06 per ounce and a
decrease in the realized price of gold of $6.00 per ounce for the fourth
quarter of 2004. For the year ended December 31, 2003, the restatement resulted
in an increase in the realized price of silver of $0.02 per ounce and in
increase in the realized price of gold of $1.00 per ounce.
"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.
Total 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 set forth below.
Year ended December 31, 2004
(In thousands except ounces and per ounce costs)
Cerro Bayo/
Rochester Galena Martha Total
Production of
Silver (ounces) 5,669,074 3,521,813 4,944,261 14,135,148
Cash Costs per ounce $3.93 $5.46 $2.07 $3.66
Total Cash Costs (000's) $22,287 $19,231 $10,228 $51,746
Add/Subtract:
Third Party Smelting Costs (923) (5,499) (6,250) (12,672)
By-Product Credit 28,646 3,766 24,796 57,208
Deferred
Stripping Adjustment (403) 523 110 (292)
Change in Inventory (13,380) 756 (3,576) (16,200)
Production Costs (GAAP) $36,227 $18,255 $25,308 $79,790
Year ended December 31, 2003
(In thousands except ounces and per ounce costs)
Cerro Bayo/
Rochester Galena Martha Total
Production of
Silver (ounces) 5,585,385 3,735,663 4,868,854 14,189,902
Cash Costs per ounce $4.67 $4.66 $0.60 $3.27
Total Cash Costs (000's) $26,062 $17,392 $2,911 $46,365
Add/Subtract:
Third Party Smelting Costs (811) (4,939) (4,675) (10,425)
By-Product Credit 18,980 2,256 24,383 45,619
Deferred
Stripping Adjustment (322) -- -- (322)
Change in Inventory (5,149) (165) 1,938 (3,376)
Production Costs (GAAP) $38,760 $14,544 $24,557 $77,861
Three Months Ended December 31, 2004
(In thousands except ounces and per ounce costs)
Cerro Bayo/
Rochester Galena Martha Total
Production of
Silver (ounces) 1,717,646 874,573 1,749,380 4,341,599
Cash Costs per ounce $1.97 $5.94 $0.60 $2.22
Total Cash Costs $3,386 $5,192 $1,058 $9,636
Add/Subtract:
Third Party Smelting Costs (267) (1,581) (2,163) (4,011)
By-Product Credit 10,678 1,207 9,818 21,703
Deferred
Stripping Adjustment (101) 1 51 (49)
Change in Inventory (1,141) 441 883 183
Production Costs (GAAP) $12,555 $5,260 $9,647 $27,462
Three Months Ended December 31, 2003
(In thousands except ounces and per ounce costs)
Cerro Bayo/
Rochester Galena Martha Total
Production of
Silver (ounces) 1,424,392 1,001,947 1,092,901 3,519,240
Cash Costs per ounce $4.82 $4.76 $0.52 $3.47
Total Cash Costs $6,866 $4,769 $563 $12,198
Add/Subtract:
Third Party Smelting Costs (211) (1,409) (904) (2,524)
By-Product Credit 4,364 673 5,880 10,917
Deferred
Stripping Adjustment (80) -- -- (80)
Change in Inventory (1,036) (144) 2,790 1,610
Production Costs (GAAP) $9,903 $3,889 $8,329 $22,121
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited)
December 31,
2004 2003
ASSETS (In Thousands)
Restated
CURRENT ASSETS
Cash and cash equivalents $273,079 $62,417
Short-term investments 48,993 19,265
Receivables 10,634 8,103
Ore on leach pad 15,046 17,388
Metal and other inventory 17,639 12,535
Deferred tax assets 5,336 --
Prepaid expenses and other 3,727 3,067
374,454 122,775
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 85,070 87,546
Less accumulated depreciation (54,154) (52,868)
30,916 34,678
MINING PROPERTIES
Operational mining properties 121,344 114,018
Less accumulated depletion (100,079) (90,245)
21,265 23,773
Mineral interests 20,125 20,125
Non-producing and development properties 26,071 25,121
67,461 69,019
OTHER ASSETS
Non-current ore on leach pad 28,740 14,705
Restricted cash and cash equivalents 10,847 8,710
Debt issuance costs, net 5,757 87
Marketable securities 34 19
Deferred tax assets 3,730 --
Other 8,501 9,474
57,609 32,995
TOTAL ASSETS $530,440 $259,467
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited)
December 31,
2004 2003
(In Thousands)
Restated
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $8,389 $7,772
Accrued liabilities and other 5,192 5,218
Accrued interest payable 1,035 120
Accrued salaries and wages 6,379 5,705
Current portion of remediation costs 1,041 1,278
Current portion of bank financing 114 2,367
22,150 22,460
LONG-TERM LIABILITIES
1 1/4% Convertible Senior Notes
due January 2024 180,000 --
7 1/4% Convertible Subordinated Debentures
due October 2005 -- 9,563
Reclamation and mine closure 23,670 20,934
Other long-term liabilities 6,503 9,032
210,173 39,529
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common Stock, par value $1.00 per
share-authorized 500,000,000 shares,
issued 241,028,303 and 214,195,186 in
2004 and 2003 (1,059,211 shares held
in treasury) 241,028 214,195
Additional paid-in capital 629,809 542,900
Accumulated deficit (557,245) (545,050)
Shares held in treasury (13,190) (13,190)
Accumulated other comprehensive loss (2,285) (1,377)
298,117 197,478
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $530,440 $259,467
CONSOLIDATED STATEMENTS OF OPERATIONS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2004 AND 2003
(Unaudited)
3 Months Ended 12 Months Ended
December 31, December 31,
2004 2003 2004 2003
(In thousands except for per share data)
(Restated) (Restated)
REVENUES
Sales of metal $44,002 $30,277 $130,245 $108,522
Interest and other 2,064 948 3,205 2,019
Total revenues 46,066 31,225 133,450 110,541
COSTS and Expenses
Production 27,462 22,121 79,790 77,861
Depreciation and depletion 4,319 3,672 18,800 16,627
Administrative and general 4,556 4,023 14,497 12,264
Exploration 2,812 1,580 11,068 4,947
Pre-development 2,681 738 11,449 1,967
Interest 574 2,126 2,831 12,851
Write-down of mining
properties and other 377 2,222 1,983 6,393
Merger expenses 781 -- 15,675 --
Loss on exchange and
early retirement of debt -- 7,607 -- 41,564
Total cost and expenses 43,562 44,089 156,093 174,474
NET INCOME (LOSS)
FROM CONTINUING OPERATIONS 2,504 (12,864) (22,643) (63,933)
Income tax benefit 10,448 -- 10,448 7
NET INCOME (LOSS) BEFORE
CUMULATIVE CHANGE IN
ACCOUNTING PRINCIPLE 12,952 (12,864) (12,195) (63,926)
Cumulative effect of change
in accounting principle -- -- -- (2,306)
NET INCOME (LOSS) 12,952 (12,864) (12,195) (66,232)
Other comprehensive loss (382) (237) (908) (556)
COMPREHENSIVE INCOME (LOSS) $12,570 $(13,101) $(13,103) $(66,788)
BASIC INCOME (LOSS) PER SHARE:
Net income (loss) before
cumulative effect
of accounting change $0.06 $(0.06) $(0.06) $(0.38)
Cumulative effect of
accounting change -- -- -- (0.01)
Net income (loss) $0.06 $(0.06) $(0.06) $(0.39)
DILUTED INCOME (LOSS) PER SHARE:
Net income (loss) before
cumulative effect of
accounting change $0.05 $(0.06) $(0.06) $(0.38)
Cumulative effect
of accounting change -- -- -- (0.01)
Net income (loss) $0.05 $(0.06) $(0.06) $(0.39)
Weighted average common shares outstanding:
Basic 224,163 211,232 215,969 168,186
Diluted 248,747 211,232 215,969 168,186
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2004 AND 2003
(Unaudited)
3 Months Ended 12 Months Ended
December 31, December 31,
2004 2003 2004 2003
(In thousands)
(Restated) (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $12,952 $(12,864) $(12,195) $(66,232)
Add (deduct) noncash items:
Depreciation and depletion 4,319 3,672 18,800 16,627
Deferred income taxes (9,066) -- (9,066) --
Loss (gain) on
early retirement of debt -- 7,607 -- 41,564
Cumulative effective
of change in
accounting principle -- -- -- 2,306
Interest expense on
Convertible Senior
Subordinated Notes
paid in Common Stock -- -- -- 8,191
Unrealized loss (gain)
on embedded derivative 520 (757) 881 (411)
Amortization of restricted
stock compensation 143 390 1,137 911
Amortization of
debt issuance costs 76 320 408 697
Amortization of
premium and/or discount 331 447 1,527 760
Other charges 5 -- (7) (19)
(Gain) loss on sale of assets (61) -- (11) --
Gain on sale of
short-term investment -- 63 -- (40)
Changes in Operating
Assets and Liabilities:
Receivables (3,742) (2,490) (2,532) (2,738)
Prepaid expenses and other (107) (46) (486) (3,844)
Inventories 156 1,398 (16,798) (3,226)
Accounts payable and
accrued liabilities (10,045) 1,668 (239) 328
CASH USED IN
OPERATING ACTIVITIES (4,519) (592) (18,581) (5,126)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of
short-term investments (3,670) (17,527) (63,619) (99,782)
Proceeds from sales of
short-term investments 6,632 6,040 29,864 86,168
Proceeds from sale of assets 68 370 329 370
Capital expenditures (4,656) (4,812) (10,514) (19,914)
Other 137 (421) 153 (196)
CASH USED IN
INVESTING ACTIVITIES (1,489) (16,350) (43,787) (33,354)
CASH FLOWS FROM FINANCING ACTIVITIES:
Retirement of long-term debt -- (17,264) (9,561) (39,717)
Proceeds from issuance
of common stock, net of
issuance costs 113,111 13,326 112,604 100,810
Proceeds from issuance
of long-term debt -- -- 180,000 33,280
Payments of debt
issuance costs -- -- (6,089) --
Bank Borrowings on
working capital facility -- 7,917 6,056 30,785
Payments to bank on
working capital facility -- (11,512) (8,422) (33,226)
Other (80) (33) (1,558) (128)
CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES: 113,031 (7,566) 273,030 91,804
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 107,023 (24,508) 210,662 53,324
Cash and cash
equivalents at
beginning of period 166,056 86,925 62,417 9,093
Cash and cash
equivalents at end
of period $273,079 $62,417 $273,079 $62,417
During the year ending December 31, 2003, holders of $12.7
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") voluntarily converted such notes into approximately 9.4 million
shares of common stock. In addition, 0.2 million shares of common stock were
issued as payment for $0.3 million of interest expense on the Series I 13 3/8%
Notes.
During the year ending December 31, 2003 the Company exchanged $32.6
million, $27.9 million and $2.1 million principal amount of its outstanding 9%
Senior convertible Notes and 6-3/8% and 7-1/4% Convertible Subordinated
Debentures, respectively, for 40.9 million shares of common stock and recorded
a loss of approximately $33.9 million. In addition, 5.1 million shares of
common stock were issued as payment for $8.1 million of interest expense on
these Notes and Debentures.
Proven Reserves (Year-end 2004)
Short Grade (ounces/ton) Ounces (000s)
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 -- -- -- -- --
22,200 29,342 239
Probable Reserves (Year-end 2004)
Short Grade (ounces/ton) Ounces (000s)
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 1,144
Measured Resource (Year-end 2004)
Short Grade (ounces/ton) Ounces (000s)
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)
Short Grade (ounces/ton) Ounces (000s)
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)
Short Grade (ounces/ton) Ounces (000s)
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
Resources are exclusive of reserves.
Proven Reserves (Year-end 2003)
Short Grade (ounces/ton) Ounces (000s)
Property Location Tons (000s) Silver Gold Silver Gold
Rochester Nevada, USA 29,912 0.90 0.01 27,041 265
Silver Valley Idaho, USA 368 22.25 -- 8,193 --
Cerro Bayo Chile 293 8.12 0.15 2,376 45
Martha Argentina 10 94.03 0.10 901 1
San Bartolome Bolivia -- -- -- -- --
Kensington Alaska, USA -- -- -- -- --
30,583 38,510 311
Probable Reserves (Year-end 2003)
Short Grade (ounces/ton) Ounces (000s)
Property Location Tons (000s) Silver Gold Silver Gold
Rochester Nevada, USA 2,651 0.96 0.01 2,555 18
Silver Valley Idaho, USA 348 20.79 -- 7,239 --
Cerro Bayo Chile 352 8.52 0.14 3,001 49
Martha Argentina 7 68.56 0.07 448 0.5
San Bartolome Bolivia 35,274 3.48 -- 122,816 --
Kensington Alaska, USA 4,113 -- 0.24 -- 1,003
42,745 136,060 1,070
Measured Resource (Year-end 2003)
Short Grade (ounces/ton) Ounces (000s)
Property Location Tons (000s) Silver Gold Silver Gold
Rochester Nevada, USA 33,238 0.76 0.01 25,216 184
Silver Valley Idaho, USA 607 10.77 -- 6,539 --
Cerro Bayo Chile 170 11.00 0.17 1,867 29
Martha Argentina 1 94.61 0.05 73 0.04
San Bartolome Bolivia -- -- -- -- --
Kensington Alaska, USA -- -- -- -- --
34,016 33,695 213
Indicated Resource (Year-end 2003)
Short Grade (ounces/ton) Ounces (000s)
Property Location Tons (000s) Silver Gold Silver Gold
Rochester Nevada, USA 6,954 0.82 0.01 5,721 38
Silver Valley Idaho, USA 576 11.65 -- 6,709 --
Cerro Bayo Chile 2,520 3.75 0.08 9,455 212
Martha Argentina 2 99.17 0.05 208 0.1
San Bartolome Bolivia -- -- -- -- --
Kensington Alaska, USA 617 -- 0.44 -- 269
10,669 22,093 519
Inferred Resource (Year-end 2003)
Short Grade (ounces/ton) Ounces (000s)
Property Location Tons (000s) Silver Gold Silver Gold
Rochester Nevada, USA 135 1.85 0.00 252 0.3
Silver Valley Idaho, USA 1,096 10.87 -- 11,914 --
Cerro Bayo Chile 786 6.95 0.12 5,461 91
Martha Argentina 21 75.61 0.09 1,567 1.8
San Bartolome Bolivia 262 3.77 -- 990 --
Kensington Alaska, USA 2,499 -- 0.23 -- 584
4,799 20,184 677
Resources are exclusive of reserves.
The Company's fourth quarter earnings conference call and
web cast will be held on March 14, 2005 beginning at 1:00 p.m. Eastern time. To
participate:
Dial-In Number: (800) 611-1148 (US and Canada)
(612) 332-0228 (International)
Host: Dennis E. Wheeler
The conference call will also be simultaneously carried on
our web site at www.coeur.com under Investor
Relations/Presentations and will be archived for a limited time.
Investor Contact
Tony Ebersole
Director of Investor Relations
Telephone: (800) 523-1535
Email: tebersole@coeur.com
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.
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 press release. Mr. Birak has reviewed the
available data and procedures and believes the calculation of reserves was
conducted in a professional and competent manner.
SOURCE Coeur d'Alene Mines Corporation
CONTACT: Tony Ebersole, Director of Investor Relations of Coeur d'Alene Mines
Corporation, 800-523-1535, or tebersole@coeur.com
URL: http://www.prnewswire.com
http://www.coeur.com/
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KEYWORD: Idaho
INDUSTRY KEYWORD: MNG
SUBJECT CODE: ERN
CCA