Coeur d'Alene Mines reports fourth quarter/year end results, record 1996 gold and silver production.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. 20, 1997--Coeur d'Alene Mines Corp. (NYSE NYSE See: New York Stock Exchange : CDE (1) (Computer Desktop Encyclopedia) What you are reading at this very moment. See About this product. (2) (Common Desktop Environment) A user interface for desktop computing from The Open Group. ) today reported fourth quarter 1996 net income of $300,000, or $0.01 per share, compared to a loss of $1.1 million, or $0.07 per share, during the same period a year ago. After quarterly dividends to preferred shareholders, a loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common shareholders in 1996's fourth quarter amounted to $0.11 per share, compared to a loss of $0.07 per share during the fourth quarter of 1995. Due to the previously announced second quarter write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of $54.4 million, primarily attributable to the Golden Cross Mine in 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 company reported a 1996 net loss of $54.6 million, or $2.54 per share ($2.93 per share attributable to common shareholders), compared to net income of $1.2 million, or $0.07 per share, for the previous year. Absent the writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. , the company's 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 operated at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. break-even during the year, compared with the year earlier loss of $1.3 million from continuing operations. In 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. achieved record gold and silver production, with production from two new properties added during the year and increased production at three of four existing properties. The company also realized average gold prices three percent higher than average market prices. Record 1996 annual gold production of 214,130 ounces was an increase of 27 percent over the year earlier total of 167,985 ounces. Included in 1996's totals were higher gold production from the 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). , the El Bronce Mine 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. , and production from Coeur's recently acquired interest in the Yilgarn Star Mine in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Silver production increased 33 percent to a new record level of 9.5 million ounces in 1996 from the 1995 level of 7.2 million ounces. Silver production in 1996 included new production from Silver Valley Resources 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). . Total revenues increased seven percent to $105 million in 1996 from $99 million in 1995. Average metals prices realized in 1996 were $397.80 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for gold, compared to $389.12 in 1995, and an average 1996 market price of $387.70. The average silver price realized during 1996 was $5.18 per ounce, compared to an average 1995 price of $5.30 per ounce. The average market price during 1996 was the same as the company's realized price of $5.18 per ounce. At year end 1996, total company proven and probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. reserves stood at 3.4 million ounces of gold and 109 million ounces of silver. Rochester Mine - Nevada Rochester enjoyed record gold production in 1996. A total of 74,293 ounces of gold was produced during the year, an increase of 25 percent over the 59,307 ounces produced in 1995. Silver production of 6,251,180 ounces was the second highest total in Rochester history, and only four percent less than the record 6,481,825 in 1995. Average cash operating costs operating costs npl → gastos mpl operacionales at Rochester decreased in 1996, to $3.64 per ounce of silver equivalent from $3.71 per ounce the previous year. El Bronce Mine - Chile Coeur's share of gold production at El Bronce increased 62 percent in 1996 to 35,676 ounces of gold and 76,145 ounces of silver, compared to 22,034 ounces of gold and 72,537 ounce of silver in 1995. The gold production included Coeur's 51 percent operating interest for the period before Sept. 1996, and a full 100 percent interest in the property from September September: see month. when Coeur purchased the remaining 49 percent interest in the mine. Cash operating costs in 1996 were $259.43 per ounce, a 15 percent reduction in costs from the previous year. On Feb. 11 Coeur announced the purchase of an option on an operating gold mine, the Boton de Oro, with an estimated 250,000 ounces of gold resource adjacent to El Bronce. Coeur's exploration has begun on Boton de Oro's 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 is believed to contain the same vein systems as El Bronce. Coeur has also begun purchasing 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. from Boton de Oro for processing through Coeur's mill at El Bronce. Based upon estimated current resources, the potential $2.5 million purchase price of Boton de Oro would amount to approximately $10 per ounce of gold resource. Fachinal Mine - Chile Fachinal entered commercial production on Jan. 1, 1997. During its pre-commercial phase in 1996, the mine produced a total of 25,064 ounces of gold and 2,154,347 ounces of silver. Costs during the year were capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. , net of the proceeds received from the sale of metals produced during the year. Since Jan. 1, operating costs are being expensed as the property has reached the commercial production stage. While the mine continued to experience lower head grade at the mill due to the open pit, a second underground mine brought into production in 1996 continues to provide higher grade ores, with the target of underground operations Underground Operations is a Toronto-based independent punk rock record label. Operated by Mark Spicoluk, former Closet Monster member, this label is one of the most cutting edge independent labels in Canada. supplying up to 40 percent of the ores to the mill. Exploration drilling is continuing at Fachinal in both underground mines, the Temer and Guanaco guanaco (gwänä`kō) or huanaco (hwän`äko), wild mammal of the camel family, Lama guanicoe, found on arid plains in the Andes Mts. , to expand existing reserves. Golden Cross Mine - New Zealand Golden Cross produced 64,365 ounces of gold to Coeur in 1996, along with 205,070 ounces of silver. This compared to 83,058 gold ounces and 286,216 silver ounces the previous year. Cash operating costs were higher in 1996 than the previous year, at $365.79 per ounce of gold. As previously announced, in 1996, the company wrote off its entire investment in Golden Cross due to deep seated ground movement under 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. However, as a result of certain remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. measures and the government's consent to a raising of the tailings dam crest crest, in feudal livery, an ornament of the headpiece that afforded protection against a blow. The term is incorrectly used to mean family coat of arms. Crests were widely used in the 13th cent. , the company has been able to continue production and expects it will be able to do so until at least the end of 1997. Yilgarn Star Mine - Australia Yilgarn Star produced 14,732 ounces to Coeurs' interest, acquired in April 1996. Cash operating costs at the mine were $214.92 per ounce during this period. Coeur's interest in Yilgarn Star comes through its investment in 36 percent of Gasgoyne Gold Mines NL, which owns a 50 percent interest in Yilgarn. A selective reduction in capital was recently completed at Gasgoyne to take the company private and it is now wholly-owned by Coeur and Sons of Gwalia Sons of Gwalia is a Western Australian mining company who mine Tantalum, Spodumene, Lithium and Tin. [1] The original "Sons of Gwalia" was a gold mine established in the late 19th century, and which gave its name to the nearby town of Gwalia. Ltd. of Australia. Silver Valley Resources Silver Valley Resources completed an excellent initial year of production, producing 833,267 ounces of silver since commencing operations in May. Cash operating costs were $2.46 per ounce of silver and full costs were $3.97 per ounce, which are historically among the lowest costs levels ever for 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. Mines. Total reserves at Silver Valley Resources increased 22 percent from last year's totals. Exploration work at the Galena increased reserves by 285,000 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. at average grades of over 21 ounces per ton, which is also higher than historical reserve grades at the mine. Exploration crews at the Galena have succeeded in significantly expanding on known ore bodies as well as developing new geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations. at the mine. 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 Final permitting of the Kensington gold project neared completion with the issuance on Feb. 14, 1997 of the Draft Supplemental Environmental Impact Statement (SEIS) by the U.S. Forest Service. In addition, the Army Corps of Engineers has issued its Public Notice for a section 404 permit for the project. Kensington has an 18-month construction timetable “Schedule” redirects here. For other uses, see Schedule (disambiguation). A timetable or schedule is an organized list or schedule, usually set out in tabular form, providing information about a series of arranged events: in particular, the time at which , and it is expected that the property will produce an average of 200,000 ounces of gold annually. Additional exploration is planned for Kensington to increase the current 1.9 million ounces of reserves. During the past year, a geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. review has identified eight new exploration targets which will be tested in future exploration activities. Coeur plans to reach a decision on developing the mine after the completion of permitting and a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. update. -0- The above forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve risks and uncertainties including those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc estimated production data, expected operating schedules, and other operating data. A full discussion of these and other factors are made in Coeurs 10-K, 10-Q and other Securities and Exchange Commission filings. -0-
COEUR D'ALENE MINES CORP.
(Unaudited)
(In thousands except
per share data) Three Months Ended Year Ended
December 31 December 31
1996 1995 1996 1995
Total Revenues $ 33,812 $ 23,763 $105,890 $ 98,743
Total Income $ 7,151 $ 4,676 $ 22,607 $ 26,533
Net Income (Loss) $ 300 $ (1,117) $(54,570) $ 1,154
Net Income (Loss)
Attributable
to Common Shareholders$ (2,333) $ (1,117) $(62,967) $ 1,154
Per Share Data:
Net Income (Loss) $ 0.01 $ (0.07) $ (2.54) $ 0.07
Net Income (Loss)
attributable to Common
Shareholders $ (0.11) $ (0.07) $ (2.93) $ 0.07
Weighted average shares
Outstanding 21,891 16,769 21,469 15,888
OPERATING HIGHLIGHTS Three Months Ended Year Ended
December 31 December 31
1996 1995 1996 1995
ROCHESTER MINE
Gold ozs. 22,634 16,934 74,293 59,307
Silver ozs. 1,767,480 1,683,942 6,251,180 6,481,825
Cash Costs per oz./
silver $4.20 $3.96 $3.64 $3.71
Full Costs per oz./
silver $4.78 $4.55 $4.25 $4.32
GOLDEN CROSS MINE
Gold ozs. 17,924 19,058 64,365 83,058
Silver ozs. 54,492 57,914 205,070 286,216
Cash Costs per oz./
gold $343.07 $274.11 $365.79 $231.70
Full Costs per oz./
gold $367.32 $357.10 $407.78 $313.82
FACHINAL MINE
Gold ozs. 8,193 3,586 25,064 3,586
Silver ozs. 590,086 334,816 2,154,347 334,816
Cash Costs per oz./
gold N/A N/A N/A N/A
EL BRONCE MINE
Gold ozs. 13,180 6,223 35,676 22,034
Silver ozs. 27,970 16,486 76,145 72,537
Cash Costs per oz./
gold $287.22 $287.34 $259.43 $305.68
Full Costs per oz./
gold $369.17 $307.85 $337.06 $326.19
SILVER VALLEY
Silver ozs. 347,218 N/A 833,267 N/A
Cash Costs per Oz. $2.02 N/A $2.46 N/A
Full Costs per Oz. $3.62 N/A $3.97 N/A
YILGARN STAR MINE
Gold ozs. 6,596 N/A 14,732 N/A
Cash Costs per oz./
gold $157.20 N/A $214.92 N/A
CONSOLIDATED TOTALS
Gold ozs. 68,527 45,801 214,130 167,985
Silver ozs. 2,787,246 2,093,158 9,520,009 7,175,394
REALIZED METALS PRICES
Gold ozs. $402.31 $387.69 $397.80 $389.12
Silver ozs. $ 4.85 $ 5.27 $ 5.18 $ 5.30
-0-
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
December 31,
1996 1995
ASSETS (In Thousands)
CURRENT ASSETS
Cash and cash equivalents $ 43,455 $ 16,485
Funds held in escrow 2,271
Short-term investments 124,172 63,077
Receivables 11,573 13,810
Inventories 31,992 30,981
TOTAL CURRENT ASSETS 211,192 126,623
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 118,993 118,083
Less accumulated depreciation 50,743 34,152
68,250 83,931
MINING PROPERTIES
Operational mining properties 171,517 150,656
Less accumulated depletion 38,264 38,529
133,253 112,127
Developmental properties 110,985 108,820
244,238 220,947
OTHER ASSETS
Investment in unconsolidated
affiliate 48,231 4,349
Notes receivable 4,000 5,000
Debt issuance costs 4,081 4,702
Marketable equity securities
and other 338 94
56,650 14,145
$580,330 $445,646
-0-
CONSOLIDATED BALANCE SHEETS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
December 31,
1996 1995
(In Thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 4,327 $ 5,743
Accrued liabilities 4,976 3,525
Accrued interest payable 4,968 4,526
Accrued salaries and wages 5,242 5,039
Bank loans 8,021
Current portion of remediation costs 3,500
Current portion of obligations under
capital leases 532 2,193
TOTAL CURRENT LIABILITIES 28,566 21,026
LONG-TERM LIABILITIES
6% subordinated convertible
debentures 49,840 50,000
6 3/8% subordinated convertible
debentures 100,000 100,000
Long-term borrowings 39,900 24,000
Obligations under capital leases 213
Other long-term liabilities 12,613 9,386
Deferred income taxes 1,402
TOTAL LONG-TERM LIABILITIES 205,566 184,788
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Mandatory Adjustable Redeemable
Convertible Securities (MARCS),
par value $1.00 per share,
(a class of preferred stock) -
authorized 10,000,000 shares,
7,077,833 issued and outstanding 7,078
Common Stock, par value $1.00 per
share--authorized 60,000,000 shares,
issued 22,950,182 and 21,524,093
shares (including 1,059,211
shares held in treasury) 22,950 21,524
Capital surplus 400,187 247,100
Accumulated deficit (70,459) (15,889)
Unrealized gains (losses) on
short-term investments (352) 361
Repurchased and nonvested shares (13,206) (13,264)
346,198 239,832
$580,330 $445,646
-0-
CONSOLIDATED STATEMENTS OF OPERATIONS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
(In Thousands)
INCOME
Sale of concentrates
and dore' $ 29,811 $ 22,925 $ 92,731 $ 89,239
Less cost of mine
operations 26,661 19,087 83,283 72,210
GROSS PROFITS 3,150 3,838 9,448 17,029
OTHER INCOME--interest,
dividends, and other 4,001 838 13,159 9,504
TOTAL INCOME 7,151 4,676 22,607 26,533
EXPENSES
Administration 709 868 3,716 3,677
Accounting and legal 622 421 1,753 1,626
General corporate 1,875 1,509 7,147 6,207
Mining exploration 2,512 1,332 7,695 4,854
Idle facilities 1,481
Interest 1,159 1,952 3,635 9,746
Writedown of mining
properties 54,415
TOTAL EXPENSES 6,877 6,082 78,361 27,591
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE
INCOME TAXES 274 (1,406) (55,754) (1,058)
Provision (benefit) for
income taxes (26) (237) (1,184) 200
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS 300 (1,169) (54,570) (1,258)
Income from discontinued
operations (net of taxes) 52 2,412
NET INCOME (LOSS) $ 300 $ (1,117) $(54,570) $ 1,154
Less preferred stock
cash dividends 2,633 8,397
Net income (loss)
attributable to
Common Shareholders $(2,333) $ (1,117) $(62,967) $ 1,154
EARNINGS PER SHARE DATA
Weighted average number
of shares of Common Stock
and equivalents
used in calculation 21,891 16,769 21,469 15,888
Net income (loss) from
continuing operations$ .01 $ (.07) $ (2.54) $ (.08)
Income from discontinued
operations .15
Net income (loss)
per share $ .01 $ (.07) $ (2.54) $ .07
Net income (loss)
attributable to
Common Shareholders:
Net loss from continuing
operations $ (.11) $ (.07) $ (2.93) $ (.08)
Income from discontinued
operations .15
Net income (loss)
per share $ (.11) $ (.07) $ (2.93) $ .07
CASH DIVIDENDS PER COMMON SHARE $ .15 $ .15
-0-
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
Year Ended December 31,
1996 1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss from continuing
operations $(54,570) $ (1,258) $ (4,736)
Add (less) noncash items:
Depreciation, depletion,
and amortization 13,381 16,893 17,537
Deferred income taxes (1,402) (1,786) (629)
(Gain) loss on disposition of
property, plant and equipment (985) 458 132
(Gain) loss on foreign currency
transactions 155 597 (784)
(Gain) loss on disposition of
marketable securities (1,262) 885 (1,542)
Writedown of mining property 54,415
Undistributed earnings of
investment in unconsolidated
subsidiary (1,905)
Changes in Operating Assets
and Liabilities:
Receivables 3,493 (1,239) (2,932)
Inventories 1,824 3,234 (953)
Accounts payable and
accrued liabilities (5,360) 2,528 759
Net cash provided by
continuing operations 7,784 20,312 6,852
Income from discontinued operations 2,412 793
Add (less) noncash items:
Depreciation, depletion &
amortization 85 289
Gain (loss) on disposition of
discontinued operations (3,964) 2
Deferred income taxes 1,608 529
Change in operating assets and liabilities
Receivables 601 (267)
Inventories (30) (323)
Accounts payable and accrued liabilities (109) 23
Net cash provided by discontinued
operations 603 1,046
NET CASH PROVIDED BY
OPERATING ACTIVITIES 7,784 20,915 7,898
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchases of short-term
investments (148,952) (2,424) (107,901)
Investment in unconsolidated
affiliate (19,301)
Proceeds from sales of short-term
investments 92,167 70,112 43,349
Purchases of property, plant and
equipment (4,799) (44,895) (9,248)
Proceeds from sale of assets 2,372 1,177 488
Proceeds from sale of discontinued
operations 2,566 3,133
Expenditures on operational mining
properties (44,432) (21,027) (12,737)
Expenditures on developmental
properties (13,066) (42,510) (12,760)
Other 2,148 (1,418) 70
NET CASH USED IN
INVESTING ACTIVITIES (131,297) (37,852) (98,739)
-0-
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORP. AND SUBSIDIARIES
Year Ended December 31,
1996 1995 1994
(continued)
CASH FLOWS FROM FINANCING ACTIVITIES
Retirement of obligations under
capital leases (2,041) (2,041) (1,900)
Payment of cash dividends (11,028) (2,339) (2,303)
Proceeds from MARCS issuance 144,626
Proceeds from bond issuance 95,514
Proceeds from bank borrowings 19,186 24,000
Payment of bond conversion costs (1,346)
Retirement of other long-term
liabilities (260)
NET CASH PROVIDED BY
FINANCING ACTIVITIES 150,483 18,274 91,311
INCREASE IN CASH AND CASH EQUIVALENTS 26,970 1,337 470
Cash and cash equivalents at
beginning of year:
Related to continuing operations 16,485 14,707 14,389
Related to discontinued operations 441 289
16,485 15,148 14,678
Cash and cash equivalents at end
of year:
Related to continuing operations 43,455 16,485 14,707
Related to discontinued operations 441 289
$ 43,455 $ 16,485 $ 15,148
CONTACT: Coeur d'Alene Anthony R. Ebersole Ebersole may refer to:
This page or section lists people with the surname Ebersole , 208/667-3511 Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. |
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