Coeur d'Alene Mines reports 1995 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. 26, 1996--In recording a third consecutive year of record gold production growth, Coeur d'Alene Mines Corp. today reported 1995 net income of $1.2 million, or $0.07 per share, compared to a net loss of $3.9 million, or $0.26 per share, during the previous year. For the fourth quarter, the company reported a loss of $1.1 million, or $0.07 per share, compared to a loss of $1.7 million, or $0.11 per share for the fourth quarter a year ago. "In addition to a third consecutive year of record gold production increases, as well as higher silver production, Coeur's revenues, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. and earnings per share all increased significantly during the year," 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. "This is the result of our deliberate Willful; purposeful; determined after thoughtful evaluation of all relevant factors; dispassionate. To act with a particular intent, which is derived from a careful consideration of factors that influence the choice to be made. strategy of growth set in place four years ago which is now beginning to yield the kinds of results in shareholder value we anticipated when we set this plan in motion." Revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $98.7 million in 1995, up from $92.2 million the previous year. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in 1995 was $20.9 million, an increase from $7.9 million in operating cash flow in the previous year. Gross profits from mine operations were $17 million last year, up 44 percent from the $11.8 million during 1994. Record gold production totaled 167,985 ounces in 1995, surpassing last years record of 129,239 ounces, by 30 percent. During the fourth quarter 1995, the company's gold production was 45,801 ounces, the most ounces ever produced in a quarter, and included the initial startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. production of 3,586 ounces from the new Fachinal mine 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. , which began operations in October October: see month. . Silver production was 7.2 million ounces in 1995, a 16 percent increase from the 6.2 million ounces produced in the previous year. The company's Rochester Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. mine in 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). alone added 6.5 million ounces, a record for the property. During the fourth quarter, silver production was 2.1 million ounces, compared to 1.7 million ounces for the same period a year ago. Average gold prices realized in the quarter were $387.69, compared to the average market price of $385.30. Average silver prices realized were $5.27, compared to the average market price of $5.26. Reserves at 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. 1995 were estimated at 3.5 million ounces of gold, up 30 percent from the previous years level of 2.7 million ounces. Silver reserves at the end of 1995 measured 124.4 million ounces, compared to 131.0 million ounces at the end of 1994. Rochester Mine - Nevada In addition to its record year of silver production, Rochester produced 59,307 ounces of gold during 1995. With an anticipated increase in gold grade during 1996, the mine is expected to produce as much as 24 percent more gold above 1995 levels. Cash operating costs operating costs npl → gastos mpl operacionales at Rochester were $3.71 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. of silver equivalent during 1995, compared to $3.57 per ounce in 1994. Full costs were $4.32 per ounce, compared with $4.16 per ounce in 1994. 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. Golden Cross in 1995 produced to a total of 83,058 ounces, which was more gold to Coeur's 80 percent interest than in any year since it was acquired in 1993. Golden Cross also produced 286,216 ounces of silver, which was 63,970 ounces more than in 1994. Cash operating costs were lowered by 16 percent from the previous year, to $231.70 per ounce of gold from $276.96 per ounce in 1994, due to improved recovery rates and higher ore grades 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 from the underground. Full costs of $313.82 in 1995 were 19 percent lower than the previous years full costs of $388.49. El Bronce Mine - 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. El Bronce produced 22,034 ounces of gold for Coeur's 51 percent operating interest in 1995, in addition to 72,537 ounces of silver, during the first full year under Coeur's operating control. Cash operating costs were $305.68 during the year, with full costs of $326.19. Operating and infrastructure improvements made at El Bronce during the past year are anticipated to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. into a 31 percent increase in production levels during 1996. Fachinal Mine - Chile During the start up phase at the newly-constructed Fachinal mine in southern Chile, the mine produced 3,586 ounces of gold and 334,816 ounces of silver. By year end, in its first full year of operation, Fachinal is expected to produce 44,100 ounces of gold and 2.8 million ounces of silver for the full year. 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 project - 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 During the first quarter 1996, 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. reached an agreement with a consortium of three Alaska Native groups which will assist in facilitating eventual construction and operation of Kensington, a major gold property near Juneau Juneau (j  `nō), city (1990 pop. 26,751), state capital, SE Alaska, in the Alaska Panhandle; settled by gold miners 1880, inc. 1900. with reserves of 1.95 million ounces. In the
agreement, the Native groups gave their support to the project, and will
provide a portion of the workforce during both construction and eventual
operation of the mine.Silver Valley Resources Also in the first quarter of 1996, Coeur and ASARCO ASARCO American Smelting and Refining Company Inc., the 50 percent shareholders of Silver Valley Resources Corp., announced plans to reopen re·o·pen tr. & intr.v. re·o·pened, re·o·pen·ing, re·o·pens 1. To open or be opened again: Officials reopened the airport after the snow was cleared. Schools reopen in September. the 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 with full production beginning in June June: see month. . The two mines have been on care and maintenance since the early 1990s due to prevailing silver prices. A development program which began a year ago increased reserves in 1995 at the mines by 32 percent over previous levels, to a total of 13.7 million ounces of silver to Coeur's account. Full scale mining is expected to begin at the Coeur mine by May 1, with exploration and development continuing at the Galena, Coeur and Caladay properties. When fully operational, the mines are expected to produce approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3 million ounces of silver a year. -0-
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
December 31,
1995 1994
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 16,484,767 $ 14,707,278
Funds held in escrow 2,270,695
Short-term investments 63,077,064 128,112,407
Receivables 13,809,248 11,112,918
Inventories 30,980,765 34,215,127
TOTAL CURRENT ASSETS 126,622,539 188,147,730
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 118,083,535 83,872,789
Less accumulated depreciation 34,152,342 37,394,296
83,931,193 46,478,493
MINING PROPERTIES
Operational mining properties 150,655,767 102,571,977
Less accumulated depletion 38,528,902 38,162,432
112,126,865 64,409,545
Developmental properties 108,819,693 95,896,774
220,946,558 160,306,319
NET ASSETS OF DISCONTINUED OPERATIONS 6,000,741
OTHER ASSETS
Funds held in escrow 2,270,695
Notes receivable 5,000,000
Debt issuance costs, net of
accumulated amortization of
$3,374,762 and $2,416,963 4,702,535 8,240,209
Marketable equity securities 4,390,362 418,052
Other 52,886 499,154
14,145,783 11,428,110
$445,646,073 $412,361,393
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
December 31,
1995 1994
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 5,743,125 $ 2,289,808
Accrued liabilities 3,525,305 5,226,925
Accrued interest payable 4,525,925 4,634,961
Accrued salaries and wages 5,038,506 3,867,801
Current portion of obligations under
capital leases 2,192,856 2,041,057
TOTAL CURRENT LIABILITIES 21,025,717 18,060,552
LONG-TERM LIABILITIES
6% subordinated convertible
debentures 50,000,000 50,000,000
6 3/8% subordinated convertible
debentures 100,000,000 100,000,000
7% subordinated convertible
debentures 75,000,000
Limited recourse project financing 23,999,997
Obligations under capital leases 2,192,856
Other long-term liabilities 9,386,347 5,234,899
Deferred income taxes 1,402,330 1,580,804
TOTAL LONG-TERM LIABILITIES 184,788,674 234,008,559
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 21,524,093 and 16,633,163
shares (including 1,059,211 shares
held in treasury) 21,524,093 16,633,163
Capital surplus 247,099,977 182,881,071
Accumulated deficit (15,889,154) (17,043,506)
Unrealized gains (losses) on
short-term investments 361,173 (8,820,137)
Repurchased and nonvested shares (13,264,407) (13,358,309)
239,831,682 160,292,282
$445,646,073 $412,361,393
CONSOLIDATED STATEMENTS OF OPERATIONS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
Year Ended December 31,
1995 1994 1993
INCOME
Sale of concentrates
and dore' $ 89,239,051 $ 79,605,938 $ 67,989,666
Less cost of mine
operations 72,210,413 67,802,368 59,803,406
GROSS PROFITS 17,028,638 11,803,570 8,186,260
OTHER INCOME--interest,
dividends, and other 9,504,065 12,587,356 5,387,763
TOTAL INCOME 26,532,703 24,390,926 13,574,023
EXPENSES
Administration 3,677,354 3,824,946 3,618,772
Accounting and legal 1,625,609 1,673,223 3,108,705
General corporate 6,206,628 6,258,111 5,089,224
Mining exploration 4,853,789 3,877,614 2,533,542
Idle facilities 1,481,243 1,558,752 2,459,159
Interest 9,745,967 11,399,082 5,364,574
Nonrecurring charges 800,000 9,373,564
TOTAL EXPENSES 27,590,590 29,391,728 31,547,540
NET LOSS FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES (1,057,887) (5,000,802) (17,973,517)
Income tax provision
(benefit) 199,703 (265,312) (3,931,839)
NET LOSS FROM CONTINUING
OPERATIONS (1,257,590) (4,735,490) (14,041,678)
Income from
discontinued operations
(net of taxes) 2,411,942 792,926 751,618
NET INCOME (LOSS) BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING 1,154,352 (3,942,564) (13,290,060)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING METHOD 5,181,188 NET INCOME (LOSS) $1,154,352 $(3,942,564) $(8,108,872)
EARNINGS PER SHARE DATA
Weighted average
number of shares
of Common Stock
outstanding 15,888,357 15,387,889 15,327,862
Net loss from continuing operations $ (.08) $ (.31) $ (.92) Income from discontinued operations .15 .05 .05 Net income (loss) before cumulative effect of change in accounting .07 (.26) (.87) Cumulative effect of change in accounting method .34 NET INCOME (LOSS) PER SHARE $ .07 $ (.26) $ (.53)
CASH DIVIDENDS
PER SHARE $ .15 $ .15 $ .15
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
Year Ended December 31,
1995 1994 1993
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss) from
continuing operations $(1,257,590) $(4,735,490) $(8,860,490)
Add (less) noncash items:
Depreciation,
depletion, and
amortization 16,893,392 17,537,499 13,661,502
Cumulative effect of
change in accounting
method (5,181,188)
Deferred income taxes (1,786,435) (629,356) (4,217,259)
Loss on disposition
of assets 457,895 132,099 444,950
(Gain) loss on foreign
currency transactions 597,009 (783,894) (302,287)
Gain (loss) on disposition
of securities 885,160 (1,541,735)
Nonrecurring charges 9,373,564
Changes in Operating
Assets and Liabilities:
Accounts receivable (1,238,697) (2,932,231) (2,883,201)
Inventories 3,234,362 (953,103) (2,132,683)
Accounts payable and
accrued liabilities 2,527,843 759,065 3,183,344
Net cash provided by
continuing operations 20,312,939 6,852,854 3,086,252
Income from discontinued
operations 2,411,942 792,926 751,618
Add (less) noncash items:
Depreciation, depletion
& amortization 85,381 288,522 191,260
Gain (loss) on
disposition of
discontinued
operations (3,963,879) 1,528
Deferred income taxes 1,607,961 528,618 501,079
Change in operating assets
and liabilities:
Accounts receivable 601,242 (267,250) (242,100)
Inventories (30,661) (322,553) (165,368)
Accounts payable and
accrued liabilities (109,218) 23,078 79,636
Net cash provided by
discontinued operations 602,768 1,044,869 1,116,125
NET CASH PROVIDED
BY OPERATING
ACTIVITIES 20,915,707 7,897,723 4,202,377
CASH FLOWS USED IN
INVESTING ACTIVITIES
Purchase of Cyprus
Gold New Zealand,
Ltd. (net of cash
received) (52,818,247)
Purchases of short-term
investments (2,424,374) (107,900,947) (85,387,368)
Proceeds from sales of
short-term investments 70,111,964 43,349,371 34,548,248
Purchases of property,
plant and equipment (44,895,523) (9,248,331) (4,563,607)
Proceeds from sale of
assets 1,177,328 488,353 680,873
Proceeds from sale of
discontinued operations 3,133,133
Expenditures on operational
mining properties (21,027,029) (12,736,653) (2,524,454)
Expenditures on
developmental
properties (42,509,841) (12,760,036) (8,926,809)
Other (1,417,920) 69,454 (567,011)
NET CASH USED IN
INVESTING ACTIVITIES (37,852,262) (98,738,789) (119,558,375)
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
Year Ended December 31,
1995 1994 1993
(continued)
CASH FLOWS FROM FINANCING
ACTIVITIES
Retirement of obligations
under capital leases (2,041,056) (1,899,771) (1,775,333)
Payment of cash
dividends (2,339,376) (2,303,194) (2,297,520)
Proceeds from bond
issuance 95,513,842
Proceeds from project
financing 23,999,997
Payment of bond
conversion costs (1,346,151)
NET CASH PROVIDED BY
(USED IN) FINANCING
ACTIVITIES 18,273,414 91,310,877 (4,072,853)
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,336,859 469,811 (119,428,851)
Cash and cash equivalents
at beginning of year:
Related to continuing
operations 14,707,278 14,388,998 133,838,430
Related to discontinued
operations 440,630 289,099 268,518
15,147,908 14,678,097 134,106,948
Cash and cash equivalents
at end of year:
Related to continuing
operations 16,484,767 14,707,278 14,388,998
Related to discontinued
operations 440,630 289,099
$ 16,484,767 $ 15,147,908 $ 14,678,097
COEUR D'ALENE MINES CORPORATION
(Unadudited)
(In thousands Quarter to Date Year to Date except per share Ended Dec. 31 Ended Dec. 31 data) 1995 1994 1995 1994 Total Revenues $ 23,763 $ 22,647 $ 98,743 $ 92,193 Total Income $ 4,676 $ 5,079 $ 26,533 $ 24,391 Net Income (Loss) $(1,118) $(1,653) $ 1,154 $(3,943) Per Share Data: Primary Earnings Per Share Income (Loss) per share from contin- uing operations $ (0.07) $ (0.12) $ (0.08) $ (0.31) Income per share from discontinued operations $ 0.00 $ 0.01 $ 0.15 $ 0.05 Net Income (Loss) per share $ (0.07) $ (0.11) $ 0.07 $ (0.26) Weighted average shares Outstanding 16,768,510 15,453,385 15,888,357 15,387,889 Operating Highlights
Three Months Nine Months
Ended Dec. 31, Ended Dec. 31,
1995 1994 1995 1994
ROCHESTER MINE Gold ozs. 16,934 14,799 59,307 56,886 Silver ozs. 1,683,942 1,589,280 6,481,825 5,937,770 Cash Costs per oz./silver $3.96 $4.07 $3.71 $3.57 Full Costs per oz./silver $4.55 $4.74 $4.32 $4.16 GOLDEN CROSS MINE Gold ozs. 19,058 15,263 83,058 67,400 Silver ozs. 57,914 58,579 286,216 222,246 Cash Costs per oz./gold $274.11 $334.30 $231.70 $276.96 Full Costs per oz./gold $357.10 $436.37 $313.82 $388.49 FACHINAL MINE Gold ozs. 3,586 N/A 3,586 N/A Silver ozs. 334,816 N/A 334,816 N/A EL BRONCE MINE Gold ozs. 6,223 4,953 22,034 4,953 Silver ozs. 16,486 20,199 72,537 20,199 Cash Costs per oz./gold $287.34 $174.67 $305.68 $ 174.67 Full Costs per oz./gold $307.85 $195.07 $326.19 $ 195.07 CONSOLIDATED TOTALS Gold ozs. 45,801 35,015 167,985 129,239 Silver ozs. 2,093,158 1,668,058 7,175,394 6,180,215 AVERAGE METALS PRICES Gold ozs. $385.30 $384.46 $384.16 $384.01 Silver ozs. $5.26 $5.14 $5.19 $5.28 CONTACT: Coeur d'Alene Mines Anthony R. Ebersole Ebersole may refer to:
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