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COEUR D'ALENE, Idaho, Aug 06, 2009 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (CDE) (CA:CDM) (ASX:CXC): Second Quarter Highlights: -- 74% increase in silver production to a second quarter record 4.3 million ounces -- 46% increase in revenue to all-time high of $73 million -- 692% increase in quarterly operating cash flow(1) to $16.8 million -- Quarterly net income of $11.6 million, or $0.17 per share -- 22% reduction in G&A expenses - third consecutive quarter of double digit declines -- Favorable Supreme Court decision received regarding Kensington permit -- Total debt reduced over $150 million, or 37% -- Sale of Broken Hill interest for $55 million results in pro forma cash balance of $80 million Coeur d'Alene Mines Corporation today announced a second quarter silver production record of 4.3 million ounces during the second quarter of 2009. This represents a 74% increase compared to last year's second quarter and was driven by silver production from the Company's two new large, long-life mines, the San Bartolome silver mine in Bolivia and the Palmarejo silver and gold mine in Mexico, which combined for a total of 2.5 million ounces of silver production, or 58% of the Company's total silver production, during the second quarter. "Our second quarter results reflect the significant impact the Company's two new large mines are now having on production levels and cash flow," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. "As the new Palmarejo mine continues to ramp up production through the remainder of the year, we expect this growth in production and cash flow to continue. "Meanwhile, Coeur continues to fortify its balance sheet. The Company's cash position now stands at a strong $80 million, and our total debt has been reduced by over $150 million, or 37%, since the beginning of the year. "Finally, we are very pleased with the recent decision by the U.S. Supreme Court affirming the previously issued tailings permit at our Kensington gold mine project in Alaska. The Court decision and dissolution of the previous injunction now clears the way for the only remaining item left to be constructed at the mine - the tailings facility - and for production to commence beginning in the second half of 2010, providing long-term economic benefits to the Alaskan economy and Coeur shareholders," Mr. Wheeler said. Palmarejo (Mexico) Continues to Ramp Up to Full Scale The Palmarejo silver and gold mine in northern Mexico continued to ramp up production during its initial quarter of operations. During the quarter, Palmarejo produced 588,000 ounces of silver and 9,730 ounces of gold. All construction contractors have been demobilized and both underground and open-pit operations are performing according to plan. Final commissioning of certain areas of the processing plant continue to take place. The Company expects to achieve design mining and processing rates by the beginning of the fourth quarter. San Bartolome (Bolivia) Quarterly Production of 1.9 Million Ounces Silver production during the second quarter at San Bartolome was 1.9 million ounces with cash operating costs of $7.37 per ounce. Production was slightly lower and costs were slightly higher than the first quarter of the year due to a temporary SAG mill motor failure, which caused the mill to not operate for fifteen days during the month of May. The SAG mill issue was successfully addressed and operations resumed at normal levels throughout the rest of the quarter. For the first six months of the year, San Bartolome produced 4.0 million ounces of silver at average cash operating costs of $7.04 per ounce. The Company expects full-year 2009 silver production at San Bartolome to reach approximately 8.4 million ounces of silver at an average cash operating cost of approximately $6.50 per ounce.(2) U.S. Supreme Court Decision Upholds Kensington Permit; Company Updates Cost Estimates In the second quarter, the United States Supreme Court released its decision reversing the Ninth Circuit Court of Appeals and upholding the previously issued permit for the tailings facility for the Kensington gold mine near Juneau, Alaska. The Ninth Circuit Court then lifted the prior court ordered injunction, and the only remaining action needed is for the Corps of Engineers to lift the prior suspension of the permit which is expected timely. The Company then plans to proceed with construction of the only item remaining to be constructed, the tailings facility, and for production to commence at the mine, providing job growth and economic stimulus to Southeast Alaska. The Company is expecting production to begin in the second half of 2010. The mine is expected to average approximately 120,000 ounces of annual gold production over a 12.5 year mine life based on current proven and probable mineral reserves. Cash operating costs are expected to average $475 per ounce. The remaining construction and mine-related capital costs estimated to bring the mine into production are expected to be approximately $70 million. Construction contracts have been awarded and the construction management team has been mobilized. In 2009, construction activities will be focused on completing the tailings facility towards a second half 2010 startup. Balance Sheet Strengthened Through Debt Reduction Program and Sale of Broken Hill Interest During the first half of 2009, the Company reduced its convertible debt by over $150 million, or approximately 37%. During the second quarter, the Company reduced the outstanding balance of its 1.25% convertible notes by $51.1 million and reduced the outstanding balance of its 3.25% convertible notes by $63.0 million. Coeur announced on July 16 that it agreed to sell back to Perilya Limited its 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, and has received a total of more than 6.1 million ounces of payable silver from the Broken Hill mine. As of June 30, 2009, the Company had recovered approximately 137.2% of the original consideration. The Company will also continue to review rationalization of smaller assets. Coeur's issued and outstanding shares stood at 75.4 million on August 4th, 2009, giving effect to the reverse split on May 26, 2009. Exploration Update Guadalupe, Mexico. The Company's exploration program was focused on the Guadalupe vein system in the Palmarejo District. The program, which completed over 7,200 meters of new drilling, was designed to expand the Guadalupe deposit, define the known mineralization at Las Animas and Guadalupe Sur zone - both of which show potential for surface mining and quick ore access - and to discover new silver and gold mineralization nearby. Favorable results were obtained from all drilling. In addition, field work identified two new silver and gold bearing structures to the west and northwest of Guadalupe - termed La Antena and La Higuera, respectively - and a new model of Las Animas and Guadalupe is being completed which is expected to have important positive implications for future discoveries in the district. All of these new targets will be part of the next phase of drilling during the remainder of the year. The Company expects this work will yield an increase in proven and probable mineral reserves for the Guadalupe vein system to be reported later this year. Cerro Bayo, Chile. Exploration drilling focused on definition and expansion of the large Delia vein system during the second quarter, which is located less than 500 meters southeast of the Cerro Bayo mill, and on testing new targets in the district. A total of 13,300 meters of drilling was completed this quarter on all targets. In June, the Company's exploration team intersected very high-grade silver and gold mineralization in a new vein - termed Trinidad - which occurs just to the west of Delia. Follow up drilling on this and other targets is underway. Joaquin, Argentina. Coeur's exploration teams completed a second phase of drilling at the La Morocha and La Negra zones at the Joaquin Project, under option from Mirasol Resources Ltd., located north of the Company's Martha mine. A total of 15 holes and 1,900 meters were completed in this phase. All of the second phase core holes encountered wide zones of silver and gold mineralization. A third phase of drilling is planned for Q3 at Joaquin as well as a first phase on Nico, a second property under option, which borders the Martha mine property at the north. Don Birak, Coeur's Senior Vice President of Exploration, said, "We are pleased to report these positive exploration results. The results from this quarter's drilling at Guadalupe continue to expand and define the mineralized system in this large target located approximately six kilometers from the processing facilities at Palmarejo. The deposit is over 2 kilometers long and still open for expansion. As drilling activities continued on our land position at Palmarejo during the quarter, we were encouraged with the discovery of the new La Antena and La Higuera zones located near Guadalupe." "In Chile, the new high-grades at the Trinidad vein at Cerro Bayo are significant given their close proximity to the Delia vein, discovered late last year, and we will continue to drill there and on other new targets. Results at Joaquin in southern Argentina have been very encouraging this year with wide zone of silver and gold mineralization encountered in nearly all drill holes, and a third phase of drilling will commence in the next quarter at this potential stand-alone surface mining opportunity to establish the size of the mineralization and provide samples for initial metallurgical testing." (1) Non-GAAP measure; Amount equal to cash flow from operations (US GAAP) less working capital changes as set forth in cash flow statement. See table below for a reconciliation of operating cash flow to cash provided by (used in) operating activities. (2) Non GAAP measure; defined as operating costs less by-product credits (if any) divided by silver production; excludes royalties and taxes. About Coeur Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer. Coeur will have its first full year of production this year at the world's largest pure silver mine - San Bartolome in Bolivia - and began production in March at another world-leading silver mine - Palmarejo in Mexico. The Company also operates underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine 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. Photos of projects and other information can be accessed through company website at . Conference Call Information Coeur will hold a conference call to discuss the Company's second quarter 2009 results at 1:00 p.m. Eastern time on August 6, 2009. To listen live via telephone, call 866-853-4681 (US and Canada) or 660-422-4718 (International). The conference ID number is 21050936. The conference call and presentation will also be webcast on the Company's web site . A replay of the call will be available through August 13, 2009. The replay dial-in numbers are 800-642-1687 (US and Canada) and 706-645-9291 (International) and the access code is 21050936. In addition, the call will be archived for a limited time on the company's web site. Non-GAAP Measures We supplement the reporting of our financial information determined under generally accepted accounting principles (GAAP) with certain Non-GAAP financial measures, including cash operating costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We also provide the amount of our operating cash flow to supplement our cash flow determined under GAAP. We define operating cash flow as cash flow from operations (US GAAP) less working capital changes as set forth in cash flow statement. We believe operating cash flow is an important measure in assessing the Company's overall financial performance. The following table provides a reconciliation of operating cash flow to cash provided by (used in) operating activities: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008Cash provided by/(used in) operations: $20,127 ($2,575 ) $21,730 ($10,224 )Subtract changes in operating assets and liabilities: Receivables and other current assets 8,601 11,921 5,948 26,219 Inventories 8,024 (2,062 ) 13,186 (6,659 ) Accounts payable and accrued liabilities (19,943 ) (5,162 ) (17,233 ) 3,985OPERATING CASH FLOW $16,809 $2,122 $23,631 $13,321Cautionary 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 first parties in respect of Coeur, its financial or operating results or its securities. Donald J. Birak, Coeur's Senior Vice President of Exploration, is the qualified person responsible for the preparation of the scientific and technical information concerning Coeur's mineral projects in this press release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur's properties as filed on SEDAR at . Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured," "indicated," and "inferred" "resources," that are recognized by Canadian and Australian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be obtained from us or from the SEC's website at . Operating Statistics From Continuing OperationsThe following table presents information by mine and consolidatedsales information for the three and six month periods ended June30, 2009 and 2008: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008San Bartolome Tons milled 352,938 17,078 716,717 17,078 Ore grade/Ag oz 6.10 8.15 6.46 8.15 Recovery/Ag oz 89.0% 15.7% 87.1% 15.7% Silver production ounces 1,916,359 21,856 4,029,910 21,856 Cash operating costs/oz $ 7.37 $12.48 $ 7.04 $12.48 Cash cost/oz $10.64 $13.15 $ 9.35 $13.15 Total cost/oz $13.13 $15.85 $11.82 $15.85Martha Mine Tons milled 27,097 13,170 54,914 22,147 Ore grade/Ag oz 28.31 49.26 30.02 59.47 Ore grade/Au oz .037 .065 .039 .071 Recovery/Ag oz 92.3% 94.7% 91.9% 96.0% Recovery/Au oz 83.4% 95.3% 83.9% 92.8% Silver production ounces 707,898 614,442 1,515,905 1,265,078 Gold production ounces 834 815 1,807 1,469 Cash operating costs/oz $ 7.89 $8.73 $ 6.74 $7.31 Cash cost/oz $ 8.33 $9.66 $ 7.20 $8.12 Total cost/oz $10.03 $11.84 $ 8.74 $10.12Cerro Bayo Tons milled - 67,063 - 158,581 Ore grade/Ag oz - 5.45 - 5.25 Ore grade/Au oz - .126 - .124 Recovery/Ag oz - 93.8% - 93.3% Recovery/Au oz - 77.7% - 84.8% Silver production ounces - 342,856 - 776,886 Gold production ounces - 6,593 - 16,722 Cash operating costs/oz - $7.62 - $4.06 Cash cost/oz - $7.62 - $4.06 Total cost/oz - $13.96 - $10.44Rochester(A) Silver production ounces 543,543 898,837 1,013,404 1,579,347 Gold production ounces 3,231 6,062 6,049 11,912 Cash operating costs/oz $ 2.50 $(1.74) $ 2.64 $(1.93) Cash cost/oz $ 2.96 $(.89) $ 3.14 $(1.05) Total cost/oz $ 3.90 $(.24) $ 4.14 $(.24)Palmarejo(B) Tons milled 285,095 - 285,095 - Ore grade/Ag oz 3.84 - 3.84 - Ore grade/Au oz .044 - .044 - Recovery/Ag oz 53.6% - 53.6% - Recovery/Au oz 77.0% - 77.0% - Silver production ounces 587,716 - 587,716 - Gold production ounces 9,730 - 9,730 - Cash operating costs/oz $ 19.44 - $ 19.44 - Cash cost/oz $ 19.44 - $ 19.44 - Total cost/oz $ 40.50 - $ 40.50 -Broken Hill Tons milled 462,573 526,197 827,766 1,027,167 Ore grade/Ag oz 1.42 1.02 1.44 1.03 Recovery/Ag oz 69.0% 71.0% 70.6% 72.6% Silver production ounces 454,184 382,349 843,594 768,829 Cash operating costs/oz $ 3.42 $3.66 $ 3.43 $3.69 Cash cost/oz $ 3.42 $3.66 $ 3.43 $3.69 Total cost/oz $ 5.34 $5.43 $ 5.35 $5.46Endeavor Tons milled 130,872 281,991 297,843 529,153 Ore grade/Ag oz 1.92 1.44 1.51 1.53 Recovery/Ag oz 48.7% 56.5% 58.8% 56.6% Silver production ounces 122,705 228,791 264,519 457,290 Cash operating costs/oz $ 6.19 $2.59 $ 5.52 $2.47 Cash cost/oz $ 6.19 $2.59 $ 5.52 $2.47 Total cost/oz $ 8.76 $5.00 $ 8.09 $4.61CONSOLIDATED PRODUCTION TOTALS Silver ounces 4,332,405 2,489,131 8,255,048 4,869,286 Gold ounces 13,795 13,470 17,586 30,103 Cash operating cost per oz $8.03 $3.49 $ 6.91 $2.79 Cash cost per oz/silver $9.61 $4.03 $ 8.18 $3.29 Total cost/oz $14.24 $6.19 $11.57 $5.58CONSOLIDATED SALES TOTALS(C) Silver ounces sold 4,761,279 2,270,588 8,369,085 4,682,905 Gold ounces sold 11,827 15,168 16,923 29,930 Realized price per silver ounce $13.85 $18.84 $13.26 $18.64 Realized price per gold ounce $959.93 $987.70 $934.56 $976.68(A) The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore.The Company estimates the ultimate recovery to be approximately 61.5% for silver and 93% for gold.However, ultimate recoveries will not be known until leaching operations cease, which is currently estimated for 2014.Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates - Ore on Leach Pad.(B) Palmarejo achieved commercial production on April 20, 2009.Mine statistics do not represent normal operating results.It is expected that Palmarejo will continue to ramp up its production rate throughout the remainder of 2009.(C) Units sold at realized metal prices will not match reported metal sales due primarily to the effects on revenues of mark-to-market adjustments on embedded derivatives in the Company's provisionally priced sales contracts. "Operating Costs per Ounce" and "Cash Costs per Ounce" are calculated by dividing the operating cash costs and cash costs computed for each of the Company's mining properties for a specified period by the amount of gold ounces or silver ounces produced by that property during that same period. Management uses cash operating costs and cash costs per ounce as key indicators of the profitability of each of its mining properties. Gold and silver are sold and priced in the world financial markets on a U.S. dollar per ounce basis. "Cash Operating Costs" and "Cash Costs" are costs directly related to the physical activities of producing silver and gold, and include mining, processing and other plant costs, third-party refining and smelting costs, marketing expense, on-site general and administrative costs, royalties, in-mine drilling expenditures that are related to production and other direct costs. Sales of by-product metals are deducted from the above in computing cash costs. Cash costs exclude depreciation, depletion and amortization, accretion, corporate general and administrative expense, exploration, interest, and pre-feasibility costs. Cash operating costs include all cash costs except production taxes and royalties, if applicable. Cash costs are calculated and presented using the "Gold Institute Production Cost Standard" applied consistently for all periods presented. Total operating costs and cash costs per ounce are non-GAAP measures and investors are cautioned not to place undue reliance on them and are urged to read all GAAP accounting disclosures presented in the consolidated financial statements and accompanying footnotes. In addition, see the reconciliation of cash costs to production costs under "Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs" set forth below.THREE MONTHS ENDED JUNE 30, 2009(In thousands except ounces and per ounce costs) San Martha Cerro Bayo Rochester Palmarejo Broken Hill Endeavor Total BartolomeProduction of Silver (ounces) 1,916,359 707,898 - 543,543 587,716 454,184 122,705 4,332,405Cash operating costs per ounce $ 7.37 $ 7.89 $ - $ 2.50 $ 19.44 $ 3.42 $ 6.19 $ 8.03Cash Costs per ounce $ 10.64 $ 8.33 $ - $ 2.96 $ 19.44 $ 3.42 $ 6.19 $ 9.61Total operating costs (Non-GAAP) 14,119 5,587 - 1,358 11,423 1,554 760 34,801Royalties 6,277 307 - - - - - 6,584Production taxes - - - 249 - - - 249Total Cash Costs (Non-GAAP) $ 20,396 $ 5,894 - $ 1,607 $ 11,423 $ 1,554 $ 760 $ 41,634Add/Subtract:Third party smelting costs - (1,378 ) - - (214 ) (622 ) (262 ) (2,476 )By-product credit - 772 - 2,974 9,101 - - 12,847Other adjustments - 167 - 53 - - - 220Change in inventory 1,850 634 - 1,506 (6,854 ) (30 ) (25 ) (2,919 )Depreciation, depletion and amortization 4,774 1,034 - 457 12,380 872 316 19,833Production costs applicable to sales, including depreciation, $ 27,020 $ 7,123 $ - $ 6,597 $ 25,836 $ 1,774 $ 789 $ 69,139depletion and amortization (GAAP)SIX MONTHS ENDED JUNE 30, 2009(In thousands except ounces and per ounce costs) San Martha Cerro Bayo Rochester Palmarejo Broken Hill Endeavor Total BartolomeProduction of Silver (ounces) 4,029,910 1,515,905 - 1,013,404 587,716 843,594 264,519 8,255,048Cash operating costs per ounce $ 7.04 $ 6.74 $ - $ 2.64 $ 19.44 $ 3.43 $ 5.52 $ 6.91Cash Costs per ounce $ 9.35 $ 7.20 $ - $ 3.14 $ 19.44 $ 3.43 $ 5.52 $ 8.18Total operating costs (Non-GAAP) 28,366 10,223 - 2,684 11,423 2,897 1,460 57,053Royalties 9,302 691 - - - - 9,993Production taxes - - - 503 - - - 503Total Cash Costs (Non-GAAP) $ 37,668 $ 10,914 - $ 3,187 $ 11,423 $ 2,897 $ 1,460 $ 67,549Add/Subtract:Third party smelting costs - (2,846 ) - - (214 ) (1,151 ) (534 ) (4,745 )By-product credit - 1,655 - 5,531 9,101 - - 16,287Other adjustments 7 167 - 88 - - - 262Change in inventory (241 ) 669 1,211 2,040 (6,853 ) (59 ) (97 ) (3,330 )Depreciation, depletion and amortization 9,947 2,174 - 927 12,380 1,619 681 27,728Production costs applicable to sales, including depreciation, $ 47,381 $ 12,733 $ 1,211 $ 11,773 $ 25,837 $ 3,306 $ 1,510 $ 103,751depletion and amortization (GAAP)THREE MONTHS ENDED JUNE 30, 2008(In thousands except ounces and per ounce costs) San Martha Cerro Bayo Rochester Broken Hill Endeavor Total BartolomeProduction of Silver (ounces) 21,856 614,442 342,856 898,837 382,349 228,791 2,489,131Cash operating costs per ounce $ 12.48 $ 8.73 $ 7.62 $ (1.74 ) $ 3.66 $ 2.59 $ 3.49Cash Costs per ounce $ 13.15 $ 9.66 $ 7.62 $ (0.89 ) $ 3.66 $ 2.59 $ 4.03Total operating cost (Non-GAAP) 273 5,362 2,613 (1,566 ) 1,400 592 8,674Royalties 14 572 - - - - 586Production taxes - - - 767 - - 767Total Cash Costs (Non-GAAP) $ 287 $ 5,934 $ 2,613 $ (799 ) $ 1,400 $ 592 $ 10,027Add/Subtract:Third party smelting costs - (1,089 ) (1,163 ) - (653 ) (369 ) (3,274 )By-product credit - 729 5,894 5,437 - - 12,060Other adjustments - 116 - (3 ) - - 113Change in inventory (346 ) (793 ) 665 6,365 79 (26 ) 5,944Depreciation, depletion and amortization 59 1,226 2,173 583 677 551 5,269Production costs applicable to sales, including depreciation, $ - $ 6,123 $ 10,182 $ 11,583 $ 1,503 $ 748 $ 30,139depletion and amortization (GAAP)SIX MONTHS ENDED JUNE 30, 2008(In thousands except ounces and per ounce costs) San Martha Cerro Bayo Rochester Broken Hill Endeavor Total BartolomeProduction of Silver (ounces) 21,856 1,265,078 776,886 1,579,347 768,829 457,290 4,869,286Cash operating costs per ounce $ 12.48 $ 7.31 $ 4.06 $ (1.93 ) $ 3.69 $ 2.47 $ 2.79Cash Costs per ounce $ 13.15 $ 8.12 $ 4.06 $ (1.05 ) $ 3.69 $ 2.47 $ 3.29Total operating costs (Non-GAAP) 273 9,252 3,157 (3,046 ) 2,836 1,130 13,602Royalties 14 1,022 - - - - 1,036Production taxes - - - 1,392 - - 1,392Total Cash Costs (Non-GAAP) $ 287 $ 10,274 $ 3,157 $ (1,654 ) $ 2,836 $ 1,130 $ 16,030Add/Subtract:Third party smelting costs - (1,463 ) (2,407 ) - (1,331 ) (680 ) (5,881 )By-product credit - 1,341 15,359 10,830 - - 27,530Other adjustments - 470 - 100 - - 570Change in inventory (346 ) (2,369 ) (43 ) 14,515 6 145 11,908Depreciation, depletion and amortization 59 2,063 4,951 1,173 1,361 979 10,586Production costs applicable to sales, including depreciation, $ - $ 10,316 $ 21,017 $ 24,964 $ 2,872 $ 1,574 $ 60,743depletion and amortization (GAAP)COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited) June 30, December 31, 2009 2008 (In thousands)ASSETSCURRENT ASSETSCash and cash equivalents $ 24,668 $ 20,760Short-term investments - 7,881Receivables 55,724 53,187Ore on leach pad 8,648 9,193Metal and other inventory 50,047 34,846Deferred tax assets 404 240Prepaid expenses and other 25,944 26,344 165,435 152,451PROPERTY, PLANT AND EQUIPMENTProperty, plant and equipment 578,667 500,025Less accumulated depreciation (102,234 ) (88,717 ) 476,433 411,308MINING PROPERTIESOperational mining properties 390,036 293,564Less accumulated depletion (138,491 ) (131,730 ) 251,545 161,834Mineral interests 1,764,794 1,764,794Less accumulated depletion (25,305 ) (16,796 ) 1,739,489 1,747,998Non-producing and development properties 322,148 356,912 2,313,182 2,266,744OTHER ASSETSOre on leach pad, non-current portion 19,528 20,998Restricted assets 23,388 23,110Receivables, non-current 38,293 34,139Debt issuance costs, net 6,017 10,253Deferred tax assets 4,947 4,666Other 5,112 4,452 97,285 97,618TOTAL ASSETS $ 3,052,335 $ 2,928,121COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited) June 30, December 31, 2009 2008 (In thousands, except share data)LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIESAccounts payable $ 97,009 $ 66,300Accrued liabilities and other 28,148 64,673Accrued income taxes 1,092 927Accrued payroll and related benefits 7,628 8,106Accrued interest payable 2,717 4,446Current portion of capital lease and other short term obligations 13,414 14,608Current portion of royalty obligation 24,644 -Current portion of reclamation and mine closure 2,041 1,924 176,693 160,984LONG-TERM LIABILITIES3 1/4% Convertible Senior Notes due 2028 123,929 185,0011 1/4% Convertible Senior Notes due 2024 106,784 180,000Senior Secured Floating Rate Convertible Notes due 2012 - 1,830Non-current portion of royalty obligation 79,247 -Non-current portion of capital lease obligations 22,526 16,837Reclamation and mine closure 34,832 34,093Deferred income taxes 552,173 557,449Other long-term liabilities 5,386 6,015 924,877 981,225COMMITMENTS AND CONTINGENCIESSHAREHOLDERS' EQUITYCommon Stock, par value $0.01 per share; authorized 150,000,000; 754 56875,402,060 shares issued at June 30, 2009 and 56,779,909 sharesissued at December 31, 2008Additional paid-in capital 2,352,297 2,218,487Accumulated deficit (402,291 ) (419,958 )Shares held in treasury, at cost (none at June 30, 2009 and 105,921 - (13,190 )shares at December 31, 2008)Accumulated other comprehensive income 5 5 1,950,765 1,785,912TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,052,335 $ 2,928,121COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Unaudited) Three Months Six Months Ended June 30, Ended June 30, 2009 2008 2009 2008REVENUES (In thousands except per share data)Sales of metal $ 73,207 $ 50,024 $ 123,000 $ 107,310COSTS AND EXPENSESProduction costs applicable to sales 49,549 24,873 76,266 50,158Depreciation and depletion 21,160 6,306 30,439 11,969Administrative and general 5,485 7,032 13,033 15,557Exploration 3,791 4,725 7,618 8,468Care and maintenance and other 1,140 - 2,666 -Pre-development - 10,657 - 16,441Total cost and expenses 81,125 53,593 130,022 102,593OPERATING INCOME (LOSS) (7,918 ) (3,569 ) (7,022 ) 4,717OTHER INCOME AND EXPENSEGain on debt extinguishments 23,135 - 38,838 -Loss on derivatives, net (4,609 ) - (13,855 ) -Interest and other income 2,492 177 3,379 1,507Interest expense, net of capitalized interest ( 5,193 ) ( 867 ) (5,958 ) (1,687 )Total other income and expense 15,825 ( 690 ) 22,404 (180 )Income (loss) before income taxes 7,907 (4,259 ) 15,382 4,537Income tax (provision) benefit 3,702 (1,118 ) 2,285 (5,193 )NET INCOME (LOSS) 11,609 (5,377 ) 17,667 (656 )Other comprehensive loss - (1,040 ) - (328 )COMPREHENSIVE INCOME (LOSS) $ 11,609 $ (6,417 ) $ 17,667 $ (984 )BASIC AND DILUTED INCOME (LOSS) PER SHAREBasic income per share:Net income (loss) $ 0.17 $ (0.10 ) $ 0.27 $ (0.01 )Diluted income per share:Net income (loss) $ 0.17 $ (0.10 ) $ 0.27 $ (0.01 )Weighted average number of shares of common stockBasic 70,045 55,010 65,620 55,003Diluted 70,227 55,010 65,718 55,003COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Three Months Six Months Ended June 30, Ended June 30, 2009 2008 2009 2008 (In Thousands)CASH FLOWS FROM OPERATING ACTIVITIES:Net income $ 11,609 $ (5,377 ) $ 17,667 $ (656 )Add (deduct) non-cash items:Depreciation and depletion 21,160 6,306 30,439 11,969Amortization of debt discount 4,359 4,359 -Deferred income taxes (4,207 ) (2,972 ) (5,721 ) (3,900 )Gain on debt extinguishment (23,135 ) - (38,838 ) -Unrealized loss on derivatives 6,068 4,698 12,870 3,524Loss on foreign currency transactions (342 ) (1,059 ) (408 ) 152Share based compensation 954 297 2,657 1,888Other charges 343 229 606 344Changes in operating assets and liabilities:Receivables and other current assets (8,601 ) (11,921 ) (5,948 ) (26,219 )Inventories (8,024 ) 2,062 (13,186 ) 6,659Accounts payable and accrued liabilities 19,943 5,162 17,233 (3,985 )CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 20,127 (2,575 ) 21,730 (10,224 )CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of investments (23 ) (153,943 ) (7,381 ) (245,622 )Proceeds from sales of investments 508 157,911 15,760 209,709Capital expenditures (42,617 ) (104,127 ) (120,931 ) (168,636 )Proceeds from sale of assets and other 1,966 (89 ) 1,824 (38 )CASH USED IN INVESTING ACTIVITIES (40,166 ) (100,248 ) (110,728 ) (204,587 )CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from sale of gold production royalty - - 75,000 -Proceeds from issuance of convertible notes - - 20,368 230,000Repayment of long-term debt and capital leases (5,919 ) (5,338 ) (14,869 ) (7,826 )Payment of debt issuance costs - (166 ) - (8,550 )Proceeds from sale-lease back transactions 12,511 - 12,511 -Common stock repurchased (9 ) - (82 ) (372 )Other (22 ) (9 ) (22 ) 730CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 6,561 (5,513 ) 92,906 213,982INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (13,478 ) (108,336 ) 3,908 (829 )Cash and cash equivalents at beginning of period 38,146 206,178 20,760 98,671Cash and cash equivalents at end of period $ 24,668 $ 97,842 $ 24,668 $ 97,842SOURCE: Coeur d'Alene Mines Corporation Coeur d'Alene Mines Corporation Investors Director of Investor Relations Karli Anderson, 208-665-0345 Media Director of Corporate Communications Tony Ebersole, 208-665-0777Copyright Business Wire 2009
