Coeur d'Alene Mines Reports 1994 Fourth Quarter Year End Results.COEUR D'ALENE Coeur d'Alene, city, United States Coeur d'Alene (kûrdəlān`), city (1990 pop. 24,563), seat of Kootenai co., N Idaho, near the Wash. line; inc. 1907. , Idaho--(BUSINESS WIRE)--Feb. 27, 1995--Coeur d'Alene Mines Corporation today reported a 1994 net loss of $3.9 million, or $0.26 per share, which was less than half the reported 1993 loss of $8.1 million, or $0.53 per share. Influencing results were the company's increased 1994 exploration program, as well as interest obligations on debentures previously sold to fund long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. For the fourth quarter of 1994, the Company reported a loss of $1.7 million, or $0.11 per share, compared to net income of $86,000, or $0.01 per share during the fourth quarter a year ago. "The past year was marked by significant progress in acquisitions and new business developments, especially in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. , where the acquisition of the El Bronce Mine in the fourth quarter has already established itself with cash operating costs operating costs npl → gastos mpl operacionales of only $175 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. of gold," said Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the E. Wheeler, Chairman, President and Chief Executive Officer of Coeur d'Alene Mines. "With 1995 construction of the Fachinal Mine in Chile, and the creation of Silver Valley Resources Corporation in Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). , we have further positioned the Company to significantly expand its gold and silver production, as well as revenues and cash flow, over the near term," Mr. Wheeler said. Total revenues increased 24 percent in 1994 to $103.9 million, due to higher average metals prices and greater Company-wide gold production. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increased 39 percent during the year to $13.0 million, from $9.3 million in 1993. The Company again set a record for gold production in 1994, to 129,239 ounces, surpassing last year's record of 123,310 ounces. The 1994 total includes fourth quarter production of 4,953 ounces from the Company's 51 percent operating interest in the El Bronce Mine in Chile, acquired in the fourth quarter. During the fourth quarter 1994, the Company's gold production was 35,015 ounces compared to 40,664 ounces in the same period a year ago. Total silver production increased over the previous year as well, to 6,180,215 ounces, compared to 6,119,219 ounces in 1993. In the fourth quarter, a total of 1,668,058 ounces of silver were produced, compared to 1,709,065 during the comparable period a year ago. Gold prices in the fourth quarter 1994 averaged $384.48 per ounce, compared to $373.77 for the same period of 1993. For the entire year, gold prices averaged $384.01 per ounce, compared to $359.77 during 1993. Silver prices in the fourth quarter averaged $5.14 per ounce, compared to $4.60 per ounce for the same period a year ago. For the year, silver prices averaged $5.28 per ounce, compared to $4.30 per ounce during 1993. Rochester Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. Mine - Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). Rochester produced a near-record 5,937,770 ounces of silver during the year, just off the record set the previous year of 5,943,894 total silver ounces. Rochester gold production was 56,886 ounces during 1994, down from the previous year's total of 66,412 ounces, due to a temporary reduction in ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly . Cash operating costs at Rochester were $3.57 per ounce of silver equivalent during 1994, compared to $3.55 per ounce during the previous year. Golden Cross Mine - New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. The stepped up exploration at Coeur's 80 percent-owned Golden Cross Mine added an additional 259,000 ounces of gold reserves during 1994, with year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. reserves totalling 601,000 ounces of gold at the property. With this gain in reserves, depreciation and depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able was lowered by $38 per ounce of gold produced during the last six months of the year, a benefit which is expected to continue beyond 1995. The mine produced a total of 67,400 ounces of gold in 1994, compared to 56,898 during Coeur's eight months of ownership in 1993. Cash operating costs rose to $276.96 per ounce of gold, due to an unusual combination of a decrease in ore grade from the underground from the prior year, a particularly rainy rain·y adj. rain·i·er, rain·i·est Characterized by, full of, or bringing rain. rain  i·ness n.Adj. first quarter, as well as the presence of a harder grinding grinding, process by which surface material is removed from an object, usually metal, by the abrasive action of a rotating wheel or a moving belt that contains abrasive grains. ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. in the open pit. To address those difficulties, a testing program is underway to improve recovery rates of the various open pit ores and a change in underground mining techniques is beginning to improve extraction extraction /ex·trac·tion/ (eks-trak´shun) 1. the process or act of pulling or drawing out. 2. the preparation of an extract. of underground ore to place the mine in a position to sustain originally projected production rates. El Bronce Mine - Chile Cash operating costs at this newly acquired gold mine were $175 per ounce during the fourth quarter. Under Coeur's 51 percent operating control, the Company has improved costs by increasing the quality and grade of the ore mined, as well as upgrading the underground support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to the mine. El Bronce added 4,953 ounces of gold and 20,199 ounces of silver to Coeur's production during the fourth quarter. Fachinal Mine Construction - Chile Construction remained on schedule and on budget at the Fachinal gold/silver property in southern Chile Southern Chile is one of the five natural regions of Chile defined by the CONAMA. Southern Chile stretches from below the Río Bío-Bío at about 38° south latitude to below Isla de Chiloé at about 43.4° south latitude. , with initial production anticipated during the fourth quarter of 1995. Estimated first full year production at Fachinal is expected at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 41,000 ounces of gold and 2.6 million ounces of silver. Faride Mine - Chile Drilling at the Faride property in Chile during the fourth quarter of 1994 showed an extension of mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. which confirmed the Company's assumptions upon which it entered into its agreement at this developed gold mine. A pre-feasibility assessment is planned at Faride during 1995 assess the property's development potential. Silver Valley Resources Corp. - Idaho Effective, January January: see month. 1, 1995, Coeur coeur (ker) [Fr.] heart. coeur en sabot (on sa-bo´) a heart whose shape on a radiograph resembles that of a wooden shoe; seen in tetralogy of Fallot. and Asarco Inc. formed Silver Valley Resources Corp., a new company in which each holds a 50 percent interest. Silver Valley Resources creates one operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon for the fully developed Coeur and Galena galena (gəlē`nə) or lead glance, lustrous, blue-gray mineral crystallizing usually in cubes, sometimes in octahedrons. It is the most important ore and the principal source of lead. silver mines near Wallace, Idaho Wallace is a historic city in the Panhandle region of the U.S. state of Idaho and the county seat of Shoshone CountyGR6 in the Silver Valley mining district. , as well as the adjoining Caladay, an advanced stage exploration property. A $25 million exploration and development program has been targeted at Silver Valley Resources after initial start up, the timing of which will depend upon world market prices for silver. The first phase of the development program has targeted drilling and drifting for three areas which have historically demonstrated high potential to increase reserve levels. The Coeur and Galena Mines have an estimated 20.9 million ounces of silver reserves. Kensington Kensington is a district of West London, England within the Royal Borough of Kensington and Chelsea, located 2.8 miles (4.5 km) west of Charing Cross. An affluent and densely-populated area, its commercial heart is Kensington High Street and it contains the well-known museum - Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States Late in 1994, the Environmental Protection Agency Environmental Protection Agency (EPA), independent agency of the U.S. government, with headquarters in Washington, D.C. It was established in 1970 to reduce and control air and water pollution, noise pollution, and radiation and to ensure the safe handling and issued its Technical Assistance Report for this development project near Juneau, Alaska “Juneau” redirects here. For other uses, see Juneau (disambiguation). The City and Borough of Juneau (pronounced [ˈdʒu. . The report provides guidance to the Corps of Engineers to issue the necessary permit for the tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. dam. Coeur owns 50 percent of this project; Echo Bay Mines has the other 50 percent interest. -0- Income Statement Highlights (Unaudited)
(In thousands, except Quarter Ended Year to Date
per share data) December 31, December 31,
1994 1993 1994 1993
Total Revenues $25,839 $26,557 $103,880 $83,718 Total Income $ 5,558 $ 5,613 $ 25,814 $14,827 Income (Loss) Before Taxes & Cumulative Effect ($1,541) ($550) ($3,679) ($16,721) Net Income (Loss) ($1,653) $ 86 ($3,943) ($ 8,109)
Per Share Data
Income (Loss) Per Share
before Cumulative Effect
of a Change
in Accounting ($ 0.11) $ 0.01 ($ 0.26) ($ 0.87)
Cumulative Effect of
change in accounting .34
------- ------- ------- -------
Income (Loss) Per Share ($ 0.11) $ 0.01 ($ 0.26) ($ 0.53)
======== ======= ======== ========
Weighted Average
Shares Outstanding 15,453,385 15,335,849 15,387,889 15,327,862
========== ========== ========== ==========
Operating Highlights
Quarter Ended Year to Date
December 31, December 31,
1994 1993 1994 1993
Production
ROCHESTER MINE
Gold Ozs. 14,799 19,849 56,886 66,412
Silver Ozs. 1,589,280 1,650,671 5,937,770 5,943,894
Cash costs per oz./
silver equivalent 4.07 3.39 3.57 3.55
GOLDEN CROSS MINE (1)
Gold Ozs. 15,263 20,815 67,400 56,898
Silver Ozs. 58,579 58,394 222,246 175,325
Cash Costs per oz./
gold 334.30 226.62 276.96 220.26
EL BRONCE MINE (2)
Gold Ozs. 4,953 4,953
Silver Ozs. 20,199 20,199
Cash costs per oz./
gold 174.67 174.67
Consolidated Totals Gold Ozs. 35,015 40,664 129,239 123,310 Silver Ozs. 1,668,058 1,709,065 6,180,215 6,119,219 Avg. Metals Prices Gold Ozs. 384.48 373.77 384.01 359.77 Silver Ozs. 5.14 4.60 5.28 4.30 (1) New Property acquired April 30, 1993 (2) New property acquired September 30, 1994
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited)
December 31,
1994 1993
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 15,147,908 $ 14,678,097
Short-term investments 128,112,407 70,221,106
Receivables 9,468,112 7,757,910
Refundable income taxes 3,413,344 1,924,065
Inventories 35,946,125 34,670,469
----------- -----------
TOTAL CURRENT ASSETS 192,087,896 129,251,647
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 88,468,531 81,007,505
Less accumulated depreciation 39,947,983 35,310,111
---------- ----------
48,520,548 45,697,394
MINING PROPERTIES
Operational mining properties 100,833,487 90,120,998
Less accumulated depletion 38,162,432 33,125,461
----------- ----------
62,671,055 56,995,537
Developmental properties 95,896,774 83,536,738
----------- -----------
158,567,829 140,532,275
OTHER ASSETS
Funds held in escrow 2,270,695 2,270,695
Debt issuance costs, net of
accumulated amortization of
$2,416,963 and $1,462,643 8,240,209 4,708,372
Marketable equity securities 418,052 2,422,416
Other 2,737,454 825,538
----------- ----------
13,666,410 10,227,021
----------- ----------
$412,842,683 $325,708,337
============ ============
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited)
December 31,
1994 1993
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,458,605 $ 1,946,273
Accrued liabilities 4,158,792 5,265,232
Accrued interest payable 4,634,961 2,008,851
Accrued salaries and wages 4,164,061 2,898,486
Accrued litigation settlement 800,000 5,875,000
Accrued environmental settlement 1,230,000
Reserve for mine closure 284,366 494,800
Current portion of obligations under
capital leases 2,041,057 1,899,771
---------- ----------
TOTAL CURRENT LIABILITIES 18,541,842 21,618,413
OTHER LIABILITIES
6% subordinated convertible
debentures 50,000,000 50,000,000
7% subordinated convertible
debentures 75,000,000 75,000,000
6 3/8% subordinated convertible
debentures 100,000,000
Obligations under capital leases 2,192,856 4,233,913
Other long-term liabilities 5,234,899 2,325,764
Deferred income taxes 1,580,804 1,681,542
----------- -----------
TOTAL LONG-TERM LIABILITIES 234,008,559 133,241,219
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred Stock, par value $1.00
per share -- authorized 10,000,000
shares, none outstanding
Common Stock, par value $1.00
per share -- authorized 60,000,000
shares, issued 16,633,163 and
16,394,302 shares (including
1,059,211 and 1,058,453 shares
held in treasury) 16,633,163 16,394,302
Capital surplus 182,881,071 181,038,631
Accumulated deficit (17,043,506) (13,100,942)
Unrealized losses on short-term
investments (8,820,137)
Repurchased and nonvested shares (13,358,309) (13,483,286)
----------- ------------
160,292,282 170,848,705
----------- ------------
$412,842,683 $325,708,337
============ =============
CONSOLIDATED STATEMENTS OF OPERATIONS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited)
Year Ended December 31,
1994 1993 1992
INCOME
From mine operations:
Sale of concentrates
and dore' $ 79,605,938 $ 67,989,666 $ 41,414,166
Less cost of mine
operations 67,802,368 59,803,406 37,829,224
---------- ---------- ----------
GROSS PROFITS 11,803,570 8,186,260 3,584,942
From manufacturing operations:
Sale of industrial
products 11,416,654 10,192,008 10,107,892
Less cost of
manufacturing 10,263,476 9,088,319 8,987,185
---------- ---------- ----------
GROSS PROFITS 1,153,178 1,103,689 1,120,707
OTHER INCOME--interest,
dividends, and other 12,857,321 5,536,771 4,906,166
---------- ---------- ---------
TOTAL INCOME 25,814,069 14,826,720 9,611,815
EXPENSES
Administration 3,824,946 3,618,772 3,133,271
Accounting and legal 1,673,223 3,108,705 1,467,470
General corporate 6,359,710 5,089,224 4,472,157
Mining exploration 3,877,614 2,533,542 2,259,279
Idle facilities 1,558,752 2,459,159 1,689,257
Interest 11,399,082 5,364,574 1,096,772
Nonrecurring charges 800,000 9,373,564
---------- ---------- ----------
TOTAL EXPENSES 29,493,327 31,547,540 14,118,206
---------- ---------- ----------
LOSS BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING METHOD (3,679,258) (16,720,820) (4,506,391)
Income tax provision
(benefit) 263,306 (3,430,760) (3,747,136)
---------- ----------- ----------
LOSS BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING METHOD (3,942,564) (13,290,060) (759,255)
Cumulative effect of
change in
accounting method 5,181,188
------------ ------------- ------------
NET LOSS $(3,942,564) $ (8,108,872) $ (759,255)
============ ============= ============
LOSS PER SHARE DATA
Weighted average number
of shares of Common Stock
outstanding 15,387,889 15,327,862 15,317,405
========== ========== ==========
Net loss per share before
cumulative effect of change
in accounting method $ ( .26) $ (.87) $ (.05)
Cumulative effect of
change in
accounting method .34
---------- ------------- ----------
NET LOSS PER SHARE $ ( .26) $ (.53) $ (.05)
========== ============= ===========
CASH DIVIDENDS
PER SHARE $ .15 $ .15 $ .15
========== ============= ==========
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
(Unaudited)
Year Ended December 31,
1994 1993 1992
CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (3,942,564) $ (8,108,872) $ (759,255)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating activities:
Depreciation, depletion, and
amortization 17,826,021 13,852,762 5,799,590
Cumulative effect of change
in accounting method (5,181,188)
Deferred income taxes (100,738) (3,716,180) (1,684,209)
Deferred Stripping (1,494,716)
(Gain) loss on disposition
of assets 133,627 444,950 (11,647)
Foreign currency
transaction gain (783,894)
Gain on sale of short term
investments (1,541,735)
Nonrecurring charges 9,373,564
Change in Operating Assets and Liabilities:
Accounts receivable (3,199,481) (3,427,588) (1,073,926)
Inventories (1,275,656) (2,298,051) (213,639)
Accounts payable and
accrued liabilities 782,143 3,262,980 (2,491,745)
Accrued merger liabilities (2,572,642)
---------- ----------- ----------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES 6,403,007 4,202,377 (3,007,473)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Cyprus Gold
New Zealand, Ltd.
(net of cash received) (52,818,247)
Purchases of short-term
investments (107,900,947) (85,387,368) (21,689,084)
Sales of short-term
investments 43,349,371 34,548,248
Purchases of property,
plant and equipment (9,248,331) (4,563,607) (3,602,580)
Proceeds from sale
of assets 488,353 680,873 557,081
Expenditures on
operational mining
properties (11,241,937) (2,524,454) (4,155,600)
Expenditures on
developmental
properties (12,760,036) (8,926,809) (13,788,514)
Other 69,454 (567,011) 554,259
------------ ----------- -----------
NET CASH USED IN
INVESTING
ACTIVITIES (97,244,073) (119,558,375) (42,124,438)
CASH FLOWS FROM FINANCING ACTIVITIES
Retirement of obligations
under capital leases (1,899,771) (1,775,333) (1,649,006)
Payment of cash dividends (2,303,194) (2,297,520) (2,296,493)
Proceeds from bond
issuance 95,513,842 71,416,034
----------- ----------- ----------
NET CASH PROVIDED BY
(USED IN) FINANCING
ACTIVITIES 91,310,877 (4,072,853) 67,470,535
----------- ------------ ----------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS 469,811 (119,428,851) 22,338,624
Cash and cash equivalents
at beginning of year 14,678,097 134,106,948 111,768,324
---------- ----------- -----------
Cash and cash equivalents
at end of year $ 15,147,908 $ 14,678,097 $134,106,948
=========== ============ ============
CONTACT: Coeur d'Alene Mines Anthony R. Ebersole Ebersole may refer to:
This page or section lists people with the surname Ebersole , 208/667-3511 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
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