Coeur d'Alene Mines reports third quarter earnings.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)--Nov. 5, 1996--Coeur d'Alene Mines Corporation (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 third quarter 1996 net income of $1.9 million, or $0.09 per primary share ($0.06 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), compared to net income of $2.0 million, or $0.13 per primary share ($0.12 per fully diluted share), in the third quarter of 1995. 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 this year's third quarter amounted to $0.03 per share, as compared to income of $0.13 per share attributable to common shareholders during the third quarter of 1995. The Company was able to achieve its results in part due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. average cash production costs of $212 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for gold and $3.05 per ounce for silver, despite significantly lower metals prices in the quarter from the previous year. The latest quarter's results also included, for the first time, revenues from startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. production from Silver Valley Resources, the full ownership of 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 the first full quarter of Coeur's 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. . Exploration spending for the quarter was up 63 percent from the same period the previous year to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.5 million. Gold production in the quarter rose 28 percent to 56,138 ounces, compared to 43,791 ounces during the prior year's third quarter. Silver production in the third quarter 1996 increased 30 percent to 2,432,794 ounces, compared to 1,873,605 ounces produced in the same period a year ago. Average metals prices realized during the third quarter were $390.23 per ounce for gold and $5.05 per ounce for silver, compared to $399.02 and $5.59 respectively for gold and silver during the same period last year. For the first nine months of 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. reported a net loss of $54.9 million, or $2.57 per share ($2.84 attributable to common shareholders), compared to 1995 nine months net income of $2.3 million, or $0.15 per share. The 1996 nine month period included the second quarter write down of the Golden Cross mine of $53 million. Silver Valley Resources - 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). The newly operational Silver Valley Resources Corporation, comprised of 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, produced 330,985 ounces of silver during the third quarter at a historically low cash operating cost of $2.21 per ounce. Production to date is significantly above projected levels due to improved mining methods and high 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 . Development work continues to produce favorable results, with increases in 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. reserves to be added in 1996. 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 20,145 ounces of gold during the third quarter, a 33 percent increase from the 15,129 ounces produced during the same period last year. The increase is a result of the mine having entered a sustained period of higher gold grades. Silver production was 1,542,188 ounces during the third quarter, a decrease of 14 percent from the 1,785,596 ounces in the year ago period. Cash operating costs operating costs npl → gastos mpl operacionales in the third quarter were $3.25 per silver equivalent ounce, compared to $3.29 per ounce for the same period in 1995. El Bronce Mine - Chile On September September: see month. 4, Coeur increased its ownership in the El Bronce mine from 51 percent to a full 100 percent. Coeur's share of El Bronce's gold production in the third quarter increased 65 percent to 9,305 ounces from 5,654 ounces during the prior year's third quarter. Cash operating costs at the mine were $247.29 per ounce, a reduction of 26 percent from the $334.21 per ounce cash costs during the same period a year ago. Fachinal Mine - Chile Fachinal remained in a pre-production status during the third quarter while producing 5,039 ounces of gold and 496,266 ounces of silver. During the quarter, a second underground mine was brought into production and a third underground mine is being developed to help offset below projected grades in the open pit. During the third quarter, the Company began performing a completion test to bring Fachinal into a commercial phase. 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. As a result of a recent engineering evaluation by independent firms, the progress of 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 to stabilize stabilize See peg. on site ground movement, and the approval by New Zealand regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities of the Company's application to raise the height of 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. impoundment An action taken by the president in which he or she proposes not to spend all or part of a sum of money appropriated by Congress. The current rules and procedures for impoundment were created by the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C.A. at Golden Cross, Coeur expects it will be able to continue the mine's operations through at least the end of 1997. The company believes the continued operation will have a beneficial impact on the end-of-mine-life reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. requirements. During the third quarter, Golden Cross produced 16,317 ounces of gold and 43,022 ounces of silver, compared to 23,008 ounces of gold and 70,537 ounces of silver during the third quarter of 1995. Cash operating costs were $327.71 per ounce compared to $222.27 per ounce during the third quarter of last year. On October October: see month. 31, a suit was filed by a local New Zealand group seeking to invalidate in·val·i·date tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates To make invalid; nullify. in·val the permit to raise the height of the tailings impoundment. New Zealand counsel has advised the Company that the claim is without merit and that the institution of this legal action will not succeed in preventing continued operation. Yilgarn Star Mine - Australia Coeur's interest in the Yilgarn Star Mine in Australia, owned through its 35 percent interest in Gasgoyne Gold Mines Ltd., contributed 5,332 ounces of gold in the third quarter at a cash operating cost of $264 per ounce. Also in Australia, Coeur in the third quarter realized a gain of $1.3 million from the sale of its 19.2 percent investment in Orion Orion, in Greek mythology Orion (ōrī`ən), in Greek mythology, Boeotian hunter. When Oenopion delayed giving his daughter Merope to him, Orion, when drunk, violated her. Resources Ltd., which was the object of a tender offer by 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. Orion holds a 45 percent operating interest in Yilgarn Star 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 Kensington remains on schedule and the Company expects to receive the remaining major environmental permits in time to make a production decision in early 1997. In addition, the Company is expecting to receive in the fourth quarter the results of an updated feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. on the project. Kensington is a major gold project with nearly two million ounces in reserves and, following a two year construction phase, is anticipated to produce 200,000 ounces of gold per year. -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 Coeur's 10-K, 10-Q and other Securities and Exchange Commission filings. -0-
COEUR D'ALENE MINES CORPORATION
(Unaudited)
(In thousands except
per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
Total Revenues $ 26,563 $ 29,020 $ 72,078 $74,979
Total Income $ 8,083 $ 9,869 $ 15,456 $21,856
Net Income (Loss) $ 1,878 $ 2,039 $(54,870) $ 2,271
Per Share Data:
Net Income (Loss) $ 0.09 $ 0.13 $ (2.57) $ 0.15
Net Income (Loss)
attributable to Common
Shareholders $ (0.03) $ 0.13 $ (2.84) $ 0.15
Weighted average shares
Outstanding 21,893 15,613 21,327 15,602
Fully diluted earnings
per share:
Net Income (Loss) .06 0.12 N/A(1) N/A(1)
Weighted average shares
Outstanding 34,800 26,315 N/A(1) N/A(1)
(1) Effect of fully diluted earnings per share is antidilutive and is
therefore not presented.
OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
ROCHESTER MINE
Gold ozs. 20,145 15,129 51,659 42,373
Silver ozs. 1,542,188 1,785,596 4,483,700 4,797,883
Cash Costs per oz./silver $3.25 $3.29 $3.49 $3.70
Full Costs per oz./silver $3.84 $3.87 $4.11 $4.33
GOLDEN CROSS MINE
Gold ozs. 16,317 23,008 46,441 64,000
Silver ozs. 43,022 70,537 150,578 228,302
Cash Costs per oz./gold $327.71 $222.27 $374.62 $219.07
Full Costs per oz./gold $339.70 $301.34 $424.77 $300.92
FACHINAL MINE
Gold ozs. 5,039 N/A 16,871 N/A
Silver ozs. 496,266 N/A 1,564,261 N/A
EL BRONCE MINE
Gold ozs. 9,305 5,654 22,496 15,811
Silver ozs. 20,333 17,472 48,175 56,051
Cash Costs per oz./gold $247.29 $334.21 $250.21 $314.23
Full Costs per oz./gold $320.02 $361.05 $322.55 $339.75
SILVER VALLEY
Silver ozs. 330,985 N/A 486,049 N/A
Cash Costs per Oz. $2.21 N/A $2.92 N/A
Full Costs per Oz. $3.54 N/A $4.34 N/A
YILGARN STAR MINE
Gold ozs. 5,332 N/A 8,137 N/A
Cash Costs per oz./gold $264.00 N/A $265.00 N/A
CONSOLIDATED TOTALS
Gold ozs. 56,138 43,791 148,604 122,184
Silver ozs. 2,432,794 1,873,605 6,732,763 5,082,236
REALIZED METALS PRICES
Gold ozs. $390.23 $399.02 $395.68 $389.63
Silver ozs. $ 5.05 $ 5.59 $ 5.32 $ 5.31
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED
ASSETS September 30, December 31,
1996 1995
(In Thousands)
CURRENT ASSETS
Cash and cash equivalents $ 33,211 $ 16,485
Funds held in escrow 2,271 2,271
Short-term investments 115,316 63,076
Receivables 30,332 13,809
Inventories 33,686 30,981
Total Current Assets 214,816 126,622
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 118,623 118,083
Less accumulated depreciation (50,734) (34,152)
67,889 83,931
MINING PROPERTIES
Operational mining properties 170,455 150,656
Less accumulated depletion (36,640) (38,529)
133,815 112,127
Developmental properties 107,491 108,820
241,306 220,947
OTHER ASSETS
Investment in mining company 47,660
Debt issuance costs, net of
accumulated amortization 4,236 4,703
Notes receivable 4,000 5,000
Marketable securities and other 62 4,443
55,958 14,146
$579,969 $445,646
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
UNAUDITED
LIABILITIES AND SHAREHOLDERS EQUITY
September 30, December 31,
1996 1995
(In Thousands)
CURRENT LIABILITIES
Accounts payable $ 4,136 $ 5,743
Accrued liabilities 5,056 3,525
Accrued interest payable 2,537 4,526
Accrued salaries and wages 4,923 5,039
Bank Loans 23,962
Current portion of remediation 6,000
Current portion of obligations under
capital leases 593 2,193
Total Current Liabilities 47,207 21,026
LONG-TERM LIABILITIES
6% Subordinated Convertible
Debentures 49,840 50,000
6 3/8% Subordinated Convertible
Debentures 100,000 100,000
Limited recourse project financing 24,000 24,000
Other liabilities 10,506 9,386
Deferred income taxes 1,402
Total Long-Term Liabilities 184,346 184,788
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 stock) 22,950 21,524
Capital surplus 402,820 247,100
Accumulated deficit (70,759) (15,889)
Unrealized gains (losses) on
short-term investments (455) 361
Repurchased and Nonvested Shares (13,218) (13,264)
348,416 239,832
$579,969 $445,646
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
3 MONTHS ENDED 9 MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1996 1995 1996 1995
(In Thousands) (In Thousands)
INCOME
Sales of concentrates
and dore' $21,559 $24,802 $62,920 $66,314
Less cost of mine
operations 18,480 19,151 56,622 53,123
Gross profits 3,079 5,651 6,298 13,191
OTHER INCOME
Interest, dividends and
other 5,004 4,218 9,158 8,665
Total income 8,083 9,869 15,456 21,856
EXPENSES
Administration 952 844 3,007 2,810
Accounting and legal 487 348 1,130 1,205
General corporate 1,873 1,496 5,273 4,697
Mining exploration 2,488 1,529 5,183 3,521
Interest 1,016 2,177 2,476 7,794
Idle facilities 357 1,481
Write down of mining
properties 33 54,415
Total expenses 6,849 6,751 71,484 21,508
Net income (loss) from
continuing operations
before taxes 1,234 3,118 (56,028) 348
Provision (benefit) for
income taxes (644) 1,079 (1,158) 437
Net income (loss) from
continuing operations 1,878 2,039 (54,870) (89)
Income from discontinued
operations 2,360
NET INCOME (LOSS) $ 1,878 $ 2,039 $(54,870) $ 2,271
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
3 MONTHS ENDED 9 MONTHS ENDED
SEPT. 30 SEPT. 30
1996 1995 1996 1995
(In thousands except for per share data)
EARNINGS PER SHARE DATA
Earnings per share data:
Weighted average number
of shares of Common Stock
and equivalents used in
calculation 21,893 15,613 21,327 15,602
Net income (loss) from
continuing operations $ .09 $ .13 $ (2.57) $ .00
Net income from
discontinued operations .15
Net income (loss)
per share $ .09 $ .13 $ (2.57) .15
Net income (loss)
per share
attributed to Common
Shareholders:
Income (loss) from
continuing operations $ (.03) $ .13 $ (2.84) $ .00
Income (loss) from
discontinued
operations _________ _________ _________ .15
Net Income (Loss) $ (.03) $ .13 $ (2.84) $ .15
Fully Diluted Earnings Per Share:
Weighted average number
of shares of Common
Stock outstanding 34,800 26,315
NET INCOME (LOSS) $ .06 $ .12
Cash Dividends per share
of Common Stock $ .15 $ .15
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended Sept. 30, 1996 and 1995
UNAUDITED
CASH FLOWS FROM OPERATING ACTIVITIES 1996 1995
Net loss from continuing operations $(54,870) $ (89)
Add (less) noncash items:
Depreciation, depletion and
amortization 9,234 12,767
Deferred income taxes (1,402) (1,541)
(Gain) loss on disposition
of property,
plant and equipment (51) 273
(Gain) loss on foreign
currency transactions 73 (36)
(Gain) loss on disposition of
marketable securities (1,262) 877
Write down of mining property 54,382
Changes in operating assets and
liabilities:
Receivables (360) (3,201)
Inventories 130 2,033
Accounts payable and
accrued liabilities (5,452) 279
Accrued interest payable (1,989) (934)
(1,567) 10,428
Income from discontinued operations 2,360
Add (less) noncash items:
Depreciation, depletion and amortization 86
Gain on disposition of
discontinued operations (3,878)
Deferred income taxes 1,574
Change in operating assets and liabilities:
Receivables 601
Inventories (31)
Accounts payable and accrued liabilities (109)
603
NET CASH (USED IN) PROVIDED BY
OPERATING ACTIVITIES $ (1,567) $ 11,031
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996 and 1995
UNAUDITED
1996 1995
(In Thousands)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of El Bronce (net of cash received) $ (14,208) $
Investment in mining company (20,057)
Purchase of property, plant and equipment (2,503) (2,913)
Purchase of short-term investments (118,697) (2,423)
Proceeds from sale of short-term investments
and marketable securities 51,136 68,367
Proceeds from sale of discontinued operations 2,566 3,133
Expenditures on operational
mining properties (25,026) (14,889)
Expenditures on developmental properties (9,085) (80,302)
Proceeds from other assets 603 3
NET CASH USED IN INVESTING ACTIVITIES (135,271) (29,024)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowing 19,227 23,585
Retirement of obligations under capital
leases (1,688) (1,517)
Proceeds from MARCS issuance 144,626
Retirement of other long-term liabilities (156)
Payment of cash dividend (8,395) (2,339)
Payment for issuance of common stock (50)
NET CASH PROVIDED BY
FINANCING ACTIVITIES 153,564 19,729
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 16,726 1,736
Cash and cash equivalents at beginning
of year 16,485 15,148
Cash and cash equivalents at Sept. 30,
1996 and 1995 $ 33,211 $ 16,884
CONTACT: Coeur d'Alene Mines Corp. Anthony R. Ebersole Ebersole may refer to:
This page or section lists people with the surname Ebersole , 208/667-3511 |
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