Coeur Sells Broken Hill Interest for US$55 Million in Cash
Last update: 7/16/2009 7:39:00 AMCOEUR D'ALENE, Idaho, Jul 16, 2009 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (CDE) (CA:CDM) (ASX:CXC) announced today that it has agreed to sell back to Perilya Limited ("Perilya") its 100% interest in the silver contained at the Broken Hill mine in Australia for US$55.0 million in cash. Coeur originally purchased this interest from Perilya in September 2005 for $36.9 million. Closing of this transaction is expected to take place on July 31st. "By selling its interest, Coeur will further strengthen its balance sheet and enhance its liquidity. Proceeds of the sale will contribute to our growth initiatives, including construction of the final tailings facility at the Kensington gold mine in Alaska," said Dennis Wheeler, Chairman, President and Chief Executive Officer. "This transaction reflects the Company's strategic transition to large, long life mines that deliver economies of scale and exhibit superior exploration potential." Since completion of the transaction in 2005, Coeur has received a total of more than 6.1 million ounces of payable silver from the Broken Hill mine. As of March 31, 2009, CDE Australia had recovered approximately 127.1% of the original consideration. As a result of this transaction, the Company expects to realize a gain on the sale of assets in the third quarter of approximately $23.2 million, net of income taxes. Broken Hill Performance 2009 first quarter 2008 2007 2006 2005 partial yearNet Sales of Metal 4,709,000 18,591,000 20,602,000 23,791,000 4,432,000Profit 3,179,000 13,331,000 14,256,000 14,307,000 3,615,000All values in $ USDAbout Coeur Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer. Coeur, which has no silver production hedged, will see its first full year of production this year at the world's largest pure silver mine - San Bartolome in Bolivia - and is now in production at its newest operation - the Palmarejo silver/gold mine in Mexico. The Company also operates underground mines in southern Chile and Argentina and one surface mine in Nevada, and owns non-operating interests in two low-cost mines in Australia. The Company also owns a major gold project - Kensington in Alaska - and conducts exploration activities in Argentina, Chile and Mexico. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, the Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary Interests are traded on the Australian Securities Exchange under symbol CXC. Cautionary Statement This press release contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the control of Coeur. Operating, exploration and financial data, and other statements in this presentation are based on information that Coeur believes is reasonable, but involve significant uncertainties affecting the business of Coeur, including, but not limited to, future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, construction schedules, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from future acquisitions of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries, as well as other uncertainties and risk factors set out in filings made from time to time with the SEC, the Canadian securities regulators, and the Australian Securities Exchange, including, without limitation, Coeur's reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by fourth parties in respect of Coeur, its financial or operating results or its securities. SOURCE: Coeur d'Alene Mines Corporation Coeur d'Alene Mines Corporation Investors: Director of Investor Relations Karli Anderson, 208-665-0345 or Media: Director of Corporate Communications Tony Ebersole, 208-665-0777Copyright Business Wire 2009
