Coeur d'Alene Mines Corp. (CDE)

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$100MIL Cash on hand 713 Mil os.....

The past four months have seen a major resurgence in silver and gold market prices, driven by demand for safe haven investments in the midst of the current world economic and financial crisis. Year-to-date, silver prices have increased 29% while gold has risen approximately 9%. Holdings of gold and silver by silver and gold exchange-traded funds continue to increase and are currently at record levels.
I FIND THIS VERY BULLISH FOR SILVER
On the supply side, the decline in the price of base metals (zinc, lead, copper) has resulted in the shutdown and curtailment of production at many base metals mines. These declines have also caused many base metal projects scheduled for development to be delayed. Because approximately 70% of global silver production is derived as a by-product of base metals mines, declining base metals production is expected to reduce global silver supply.

Fortified Cash Position Provides Sufficient Capital to Deliver Substantial Growth in 2009

As of January 31, 2009, Coeur’s cash, equivalents and short-term investments stood at approximately $100 million, up from $28 million at year-end. The Company completed two transactions during January that netted approximately $95 million of cash proceeds. Between cash on hand and cash flow from operations, the Company believes it has sufficient liquidity for the remainder of 2009.

Since year-end, the holders of a majority of the Company’s $75.0 million of Senior Secured Floating Rate Convertible Notes have voluntarily converted their notes into shares of common stock. Once the remainder of these Notes are converted, Coeur’s shares outstanding will total approximately 713 million.


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