[GRAPHIC OMITTED][COEUR D'ALENE LOGO]
EXHIBIT 99.1
Coeur d'Alene Mines Corporation
505 Front Avenue, P.O. Box I
Coeur d'Alene, ID 83816-0316
Telephone 208.667.3511
Facsimile 208.667.2213
PRESS RELEASE
CONTACT: Tony Ebersole, Investor Relations
Coeur d'Alene Mines Corporation, (208) 665-0335
COEUR REPORTS HIGHER 2nd QUARTER AND SIX MONTHS SILVER AND
GOLD PRODUCTION, WITH IMPROVED FINANCIAL RESULTS
-Strong silver and gold production expected in 2003-
-Company-wide silver reserves increase 164 percent-
COEUR D'ALENE, Idaho - July 24, 2003
Highlights
- ----------
o Second quarter silver production of 3.8 million ounces, up 15 percent
from a year ago.
o Six months silver production of 7.4 million ounces, up 19 percent over
the last year's period.
o Second quarter gold production of 29,682 ounces, up 29 percent over
last year's period.
o Six months gold production of 62,845 ounces, up 59 percent over
previous year.
o Cerro Bayo/Martha mines produced 1.3 million silver ounces during the
second quarter, more than five times last year's second quarter, at
cash costs of $1.33 per ounce.
o Six month operating cash flow (before working capital changes) of $6.5
million compared to $(8.1) million in 2002's comparable period.
o New mineralized zone discovered at Cerro Bayo containing 27 ft of 0.77
ounces per ton gold equivalent in initial drill hole.
o Debt reduced 66 percent from end of first quarter. From 1998 to July,
21, 2003 debt level has declined from $288.6 million to the current
$28.9 million.
o Company-wide silver reserves increased 164 percent with 126 million
ounces of new silver reserves at San Bartolome in Bolivia.
o A total of 14.6 million ounces of silver production expected in 2003,
with estimated full-year gold production of 112,000 ounces. 2003 cash
costs estimated at $3.43 per ounce of silver.
"Since the end of the first quarter, Coeur has continued its silver and gold
production growth, significantly improved its financial strength, and
substantially grown the total reserve base. We remain on track for a year of
strong silver and gold production and much stronger financial results," said
Dennis E. Wheeler, Chairman and Chief Executive Officer. "Our South American
mines - the Cerro Bayo and Martha - continue to drive our improved production
and cash flow compared to a year ago, adding four times the silver equivalent
production compared to last year's second quarter, and at extremely low
production costs. Exploration results in South America are outstanding, and we
anticipate additional high-grade reserve increases this year.
1
EXHIBIT 99.1
"Meanwhile, our debt restructuring efforts continued, with an additional 66
percent reduction in convertible indebtedness since the end of the first
quarter. As of July 21, 2003 our total debt had been reduced to just $28.9
million. With our strong cash position, we are able to maintain our growth.
Finally, the conversion of San Bartolome's resources to proven and probable
reserves increases our silver reserve base by 164 percent, and further advances
this major silver project."
Financial Summary
- -----------------
Coeur d' Alene Mines Corporation (NYSE: CDE), the world's largest primary silver
producer, today reported second quarter 2003 revenue of $26.2 million, an 18
percent increase over revenue of $22.1 million in the second quarter of 2002.
The increase was due primarily to the higher silver and gold production from the
Company's Cerro Bayo and Martha mines in South America, which began production
in the second quarter of 2002. Company-wide production in the second quarter was
3,761,787 ounces of silver and 29,682 ounces of gold, up 15 percent and 29
percent, respectively, from the previous year's second quarter.
For the first six months of 2003, Company revenue was $55.5 million, an increase
of 42 percent from the same period a year ago. Production totaled 7,364,715
ounces of silver and 62,845 ounces of gold. This represented a 19 percent
increase in silver production over last year's six months period, and a 59
percent increase in gold production.
During the second quarter 2003 the Company reported a net loss of $4.4 million,
or $0.03 per share, compared to a net loss of $10.9 million, or $0.16 per share
a year ago. For the first six months of 2003, the Company reported a net loss of
$35.6 million, or $0.26 per share, which included a $28.2 million charge for the
early retirement of debt, based on the issuance of common shares in excess of
the original conversion ratio and a charge of $2.3 million related to a change
in accounting principle associated with reclamation reserves. For the first six
months of 2002 the Company reported a loss of $22.8 million, or $0.38 per share.
The Company's balance sheet continues to strengthen. Since the end of the first
quarter, convertible indebtedness has been reduced by $56.4 million,
representing a 66 percent reduction in the Company's convertible debt. Taking
into consideration these debt reductions, the Company's convertible indebtedness
due in December 2003 and January 2004 totaled $14.7 million at July 21, 2003.
Since the beginning of 1998, Coeur's total debenture indebtedness has been
reduced from $288.6 million to the current $28.9 million at July 21, 2003.
Cash and cash equivalents as of June 30, 2003 was $19.5 million. Year to date
operating cash flow before working capital changes improved to $6.4 million
compared to cash used in operations of $8.1 million in 2002.
For the second quarter, Coeur realized an average silver price of $4.53 per
ounce compared to an average realized price during last year's second quarter of
$4.77 per ounce. For its gold sales, Coeur realized an average price of $330 per
ounce during the second quarter compared to an average gold price of $304 per
ounce during the same period last year.
2003 Estimated Production, Cash Costs and Capital Expenditures
2
EXHIBIT 99.1
For the full year 2003, Coeur anticipates consolidated silver production of 14.6
million ounces. Company-wide gold production is expected to be 112,000 ounces.
Coeur anticipates full year cash operating costs of $3.43 per ounce/silver, and
capital expenditures are expected to total $19.4 million, mostly due to the
relocation of the crushing facility at Rochester, which will be completed this
year.
Overview of Operations
- ----------------------
South America
Cerro Bayo (Chile)/Martha (Argentina)
o 1,347,745 million ounces of silver and 14,538 ounces of gold
produced during the second quarter, up 417 percent and 146
percent, respectively, over last year's period
o Low cash costs of $1.33 per ounce of silver during second quarter
o First six months production of 2,625,202 silver ounces and 36,954
gold ounces
o Average discovery costs currently less than $0.10 per ounce of
silver equivalent
During the second quarter, Cerro Bayo increased silver production more than five
times the amount produced the same period a year ago, to a total of 1.3 million
ounces. Gold production increased nearly two and a half times to 14,538 ounces.
This was due largely to the fact that the mine initiated production in the
second quarter last year. Cash costs during the second quarter 2003 were $1.33
per ounce of silver.
North America
- -------------
Rochester Mine (Nevada)
o 1,353,346 million ounces of silver and 15,144 ounces of gold produced
during the second quarter
o 2,443,046 million ounces of silver and 25,891 ounces of gold produced
in first six months period
o Cash costs of $4.33 per ounce of silver during the second quarter, a
decrease of 30 percent from the first quarter
o Cost expected to return to $4 level in second half of 2003
Rochester produced 1.4 million ounces of silver and 15,100 ounces of gold during
the second quarter compared to 1.6 million ounces of silver and 17,100 ounces of
gold in the second quarter of last year. The lower production was due primarily
to factors related to the crusher relocation project
However, cash costs at Rochester declined 30 percent from the first quarter, to
$4.33 per ounce of silver, as the measures taken to offset the crusher
relocation began to take effect. The Company anticipates cash costs to drop
below $4.00 per ounce in the second half of the year, with the completion of
installation of the new crusher, and as high-grade ore under the old crusher is
accessed.
Coeur Silver Valley - Galena Mine (Idaho)
o Second quarter silver production of 1,060,696 million ounces
o Cash operating costs of $4.73 in quarter
3
EXHIBIT 99.1
o New optimization plan for developing new veins, infrastructure
o Future production growth, lower cash costs are projected
At Coeur Silver Valley, silver production was 1.1 million ounces in the second
quarter, down slightly from the 1.4 million ounces produced in the same period
last year. Cash operating costs increased to $4.73 per ounce during the recent
second quarter, compared to $4.14 per ounce in last year's period. The increase
was largely due to short-term grade issues.
In July, the Company announced the temporary suspension of silver production at
Silver Valley in order to complete major scheduled repairs on the mine's
hoisting equipment. During the maintenance period, Coeur began a program
designed to increase production and lower costs through 2011.
Mine personnel are currently completing Coeur's ongoing review of this expansion
plan that is designed to materially reduce Silver Valley's cash costs by 2006
and significantly increase silver production by 2008.
Strong Exploration Results (South America)
- ------------------------------------------
Cerro Bayo
A significant high-grade discovery was made at the end of second quarter on a
wide mineralized zone located between the Javiera and Wendy veins in the central
Cerro Bayo area. The initial discovery hole contains 27 feet of 0.77 opt gold
equivalent and is located 200 meters west of existing underground infrastructure
of the Cerro Bayo mine. The mineralized zone is composed of two high grade veins
containing 5.7 feet of 0.97 opt Au Eq and 7.7 feet of 1.33 opt Au Eq. Initial
interpretations are that this zone was penetrated close to its intersection with
the Javiera vein and remains open primarily to the south and at depth. This
mineralized zone does not outcrop and substantiates the exploration potential
immediately west of the Lucero vein.
Other veins discovered in the first six months of 2003 include the Daniella
vein, with an initial drill hole locating a seven-foot wide vein assaying 1.08
gold equivalent ounces per ton. Also, the Guanaco 2 Sur vein was discovered with
an initial drill hole containing eight feet of 0.34 gold equivalent ounces per
ton. Coeur continues to have good exploration results in the Guanaco 2 Sur vein
that is known to extend over a 3000 feet of strike length.
The successful results of the Company's exploration efforts and the presence of
numerous untested targets on our large land package continues to support our
belief that the Cerro Bayo property has the potential to contain reserves in
excess of one million gold equivalent ounces.
Martha Mine and Santa Cruz Province
In the Santa Cruz Province of Argentina, initial reconnaissance over our 465
square mile land package continues to discover numerous low sulfide, epithermal
veins. These veins are being geologically mapped and sampled prior to drilling,
which is planned during the second half of this year.
Exploration efforts continued during the second quarter at the Martha Mine to
discover very high grade ore shoots such as the R4 Zone along the eastern
extension of the Martha vein. The high grade R4
4
EXHIBIT 99.1
Zone is located less than 600 feet east of the Martha mine, with average grades
in excess of 100 silver equivalent ounces per ton. One drill intercept in the R4
Zone contained 44 feet of .42 ounces of gold per ton, and 666 ounces of silver
per ton. An IP/ resistivity geophysical survey was conducted over the R4 Zone
and the eastern extension of the Martha vein. The R4 Zone demonstrated a strong
IP/ resistivity response that was similar to other untested anomalies on the
Martha and other veins on the property. These geophysical anomalies will be
drill tested during the third quarter.
At the Tesoro prospect on the Malbec property, located six miles north of the
Martha mine, core drilling under a massive sulfide outcrop encountered 37 feet
of polymetallic mineralization containing .04 ounce per ton gold, 14.2 ounces
per ton silver, 2.8 percent copper, 9.2 percent lead and 19 percent zinc
beginning at 25 feet below the surface. This massive sulfide zone has now been
traced down to 130 feet below the surface.
Due to very limited exposures surrounding the massive sulfide outcrop, the
Company conducted an IP/resistivity geophysical survey over a 1300 ft by 1300 ft
area to find extensions of the mineralization. Geophysics detected a very large
chargeability anomaly at a depth of approximately 200 feet below the surface.
The anomaly is somewhat flat lying underneath the entire surveyed area and
approximately 30 to 60 ft thick. The flat lying layer may represent an altered
unit with disseminations of massive sulfides similar to those intersected in the
recent drilling. A drilling program is planned during the third quarter to test
the geophysical anomalies.
126 Million Ounces of New Proven and Probable Silver Reserves at San Bartolome
- ------------------------------------------------------------------------------
At the Company's major San Bartolome silver project in Bolivia, resources at the
property were converted to proven and probable reserves totaling 126 million
silver ounces, which effectively increased Coeur's company-wide silver reserves
by 164 percent. The new reserves measure 35.3 million tons at 3.58 ounces of
silver per ton.
An updated feasibility study is underway to establish a final mine plan and
refining construction cost estimates. Assuming a construction decision by early
2004, the project could be in production in 2005 after an 18-month construction
period. The ore is accessible in above ground gravel deposits in a region with
historical silver production of over two billion ounces.
Once in production, San Bartolome is expected to contribute an average six
million ounces of silver a year for at least ten years. The Company has also
established that tin can be commercially recovered on two of the three major
deposits, adding to project economics.
Hedging
- -------
Coeur does not currently have any of its silver production hedged. The Company
currently has 40,000 ounces of gold sold forward over the next 15 months at an
average price of $339 per ounce.
Coeur d'Alene Mines Corporation is the country's largest silver producer, as
well as a significant, low-cost producer of gold. The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia.
Cautionary Note to U.S. Investors - The United States Securities and Exchange
Commission permits mining companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can
5
EXHIBIT 99.1
economically and legally extract or produce. We use the term "resources" in this
press release which the SEC guidelines strictly prohibit us from including in
our filings with the SEC. U.S. investors are urged to consider closely the
disclosure in our Form 10-K for the year ended December 31, 2002 and Form 10-Q
for the quarter ended June 30, 2003. You can review and obtain copies of that
filing from the SEC website at http://www.sec.gov/edgar.html.
This document contains numerous forward-looking statements relating to the
Company's silver and gold mining business. The United States Private Securities
Litigation Reform Act of 1995 provides a "safe harbor" for certain
forward-looking statements. Operating, exploration and financial data, and other
statements in this document are based on information the company believes
reasonable, but involve significant uncertainties as to future gold and silver
prices, costs, ore grades, estimation of gold and silver reserves, mining and
processing conditions, changes that could result from the Company's future
acquisition 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, and risks inherent in the ownership and operation of, or
investment in, mining properties or businesses in foreign countries. Actual
results and timetables could vary significantly from the estimates presented.
Readers are cautioned not to put undue reliance on forward-looking statements.
The Company disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information, future
events or otherwise.
6
EXHIBIT 99.1
COEUR D' ALENE MINES CORPORATION
PRODUCTION STATISTICS
Three Months Ended Six Months Ended
June 30, June 30,
------------------- --------------------
2003 2002 2003 2002
---- ---- ---- ----
ROCHESTER MINE
Silver ozs. 1,353,346 1,637,443 2,443,046 3,053,210
Gold ozs. 15,144 17,132 25,891 33,555
Cash Costs per oz./silver $4.33 $2.88 $5.28 $3.27
Full Costs per oz./silver $5.45 $3.72 $6.32 $4.11
GALENA MINE
Silver ozs. 1,060,696 1,383,449 2,296,467 2,856,991
Cash Costs per oz./silver $4.73 $4.14 $4.46 $4.05
Full Costs per oz./silver $5.10 $4.86 $4.78 $4.74
CERRO BAYO/MARTHA MINE (A)
Silver ozs. 1,347,745 260,543 2,625,202 260,543
Gold ozs. 14,538 5,919 36,954 5,919
Cash Costs per oz./silver $1.33 $1.39 $0.54 $1.39
Full Costs per oz./silver $2.98 $6.79 $2.51 $6.79
CONSOLIDATED PRODUCTION TOTALS
Silver ozs. 3,761,787 3,281,435 7,364,715 6,170,744
Gold ozs. 29,682 23,051 62,845 39,474
Primary Silver Cost per oz. $3.37 $3.29 $3.33 $3.55
CONSOLIDATED SALES TOTALS
Silver ozs. sold 3,624,000 3,100,000 7,774,000 6,034,000
Gold ozs. sold 33,000 19,000 68,000 36,000
Realized price per silver oz. $4.53 $4.77 $4.65 $4.64
Realized price per gold oz. $330 $304 $336 $298
(A) The Company commenced production in April 2002.
See reconciliation of non-GAAP cash costs to GAAP production costs below.
Note: "Cash Costs per Ounce" are calculated by dividing the cash costs computed
for each of the Company's mining properties for a specified period by the amount
of silver ounces produced by that property during that same period. Management
uses cash costs per ounce produced as a key indicator of the profitability of
each of its mining properties. Gold and silver are sold and priced in the world
financial markets on a US dollar per ounce basis. By calculating the cash costs
from each of the Company's mines on the same unit basis, management can easily
determine the gross margin that each ounce of gold and silver produced is
generating.
"Cash Costs" are costs directly related to the physical activities of producing
silver and gold and include mining, processing and other plant costs, deferred
mining adjustments, 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 (primarily gold and copper) are deducted from the above in
computing cash costs. Cash costs exclude depreciation, depletion and
amortization, corporate general and administrative expense, exploration,
interest, and pre-feasibility costs and accruals for mine reclamation. Cash
costs are calculated and presented using the "Gold Institute Production Cost
Standard" applied consistently for all periods presented.
Total cash costs per ounce is a non-GAAP measurement and investors are cautioned
not to place undue reliance on it 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 "Costs and Expenses" set forth below:
7
EXHIBIT 99.1
Three months ended June 30, 2003
Rochester Silver Valley Cerro Bayo(1) Total
--------------- ------------------ --------------- ---------------
Production of Silver (ounces) 1,353,346 1,060,696 1,347,745 3,761,787
Cash Costs per ounce $ 4.33 $ 4.73 $ 1.33 $ 3.37
--------------- ------------------ --------------- ---------------
Total Cash Costs (thousands) $ 5,861 $ 5,021 $ 1,786 $ 12,668
Add/(Subtract):
Third Party Smelting Costs (193) (1,287) (1,027) (2,507)
By-Product Credit 5,281 585 5,019 10,885
Deferred Stripping Adjustment (80) - - (80)
Change in Inventory (2,025) 330 (258) (1,953)
--------------- ------------------ --------------- ---------------
Production Costs $ 8,844 $ 4,649 $ 5,520 $ 19,013
=============== ================== =============== ===============
Three months ended June 30, 2002
Rochester Silver Valley Cerro Bayo(1) Total
-------------- ------------------ --------------- ---------------
roduction of Silver (ounces) 1,637,443 1,383,449 260,543 3,281,435
Cash Costs per ounce $2.88 $4.14 $1.39 $3.29
-------------- ------------------ --------------- ---------------
Total Cash Costs (thousands) $ 4,718 $ 5,728 $ 363 $ 10,809
Add/Subtract:
Third Party Smelting Costs (243) (1,939) - (2,182)
By-Product Credit 5,337 792 1,873 8,002
Deferred Stripping Adjustment (68) - - (68)
Change in Inventory 3,499 (271) (3,527) (299)
-------------- ------------------ --------------- ---------------
Production Costs $ 13,243 $ 4,310 $ (1,291) $ 16,262
============== ================== =============== ===============
(1) The Cerro Bayo mine commenced production in the second quarter of 2002.
Six months ended June 30, 2003
Rochester Silver Valley Cerro Bayo(1) Total
--------------- ------------------ --------------- ---------------
roduction of Silver (ounces) 2,443,046 2,296,467 2,625,202 7,364,715
Cash Costs per ounce $ 5.28 $ 4.46 $ 0.54 $ 3.33
--------------- ------------------ --------------- ---------------
Total Cash Costs (thousands) $ 12,900 $ 10,237 $ 1,412 $ 24,549
Add/(Subtract):
Third Party Smelting Costs (366) (2,882) (3,021) (6,269)
By-Product Credit 9,058 1,324 12,943 23,325
Deferred Stripping Adjustment (161) - - (161)
Change in Inventory (3,832) 454 (1,175) (4,553)
--------------- ------------------ --------------- ---------------
Production Costs $ 17,599 $ 9,133 $10,159 $ 36,891
=============== ================== =============== ===============
Six months ended June 30, 2002
Rochester Silver Valley Cerro Bayo(1) Total
-------------- ----------------- ----------------- --------------
Production of Silver (ounces) 3,053,210 2,856,991 260,543 6,170,744
Cash Costs per ounce $ 3.27 $4.05 $ 1.39 $ 3.55
-------------- ----------------- ----------------- --------------
Total Cash Costs (thousands) $ 9,970 $11,582 $ 363 $ 21,915
Add/Subtract:
Third Party Smelting Costs (484) (4,010) - (4,494)
By-Product Credit 10,107 1,683 1,874 13,664
Deferred Stripping Adjustment (117) - - (117)
Change in Inventory 6,819 17 (3,528) 3,308
-------------- ----------------- ----------------- --------------
Production Costs $ 26,295 $ 9,272 $ (1,291) $ 34,276
============== ================= ================= ==============
(1) The Cerro Bayo mine commenced production in the second quarter of 2002.
8
EXHIBIT 99.1
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2003 2002
---- ----
ASSETS (In Thousands)
CURRENT ASSETS
Cash and cash equivalents $ 19,527 $ 9,093
Short-term investments 301 518
Receivables and prepaid expenses, net 9,309 7,185
Ore on leach pad 14,046 11,082
Metal and other inventory 15,365 14,846
---------- ----------
58,548 42,724
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 80,154 76,194
Less accumulated depreciation (50,957) (49,531)
---------- ----------
29,197 26,663
MINING PROPERTIES
Operational mining properties 109,574 92,149
Less accumulated depletion (86,304) (71,833)
---------- ----------
23,270 20,316
Non-producing and developmental properties 25,364 28,129
Mineral interests 18,825 18,825
---------- ----------
67,459 67,270
OTHER ASSETS
Non-current ore on leach pad 17,228 15,474
Restricted investments 15,006 13,108
Debt issuance costs, net 1,903 1,034
Marketable securities 522 915
Other 5,950 5,900
---------- ----------
40,609 36,431
---------- ----------
Total assets $ 195,813 $ 173,088
========== ==========
9
EXHIBIT 99.1
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2003 2002
---- ----
(In Thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 5,545 $ 5,962
Accrued liabilities 3,886 4,334
Accrued interest payable 1,415 1,610
Accrued salaries and wages 3,339 5,594
Current portion of remediation costs 1,174 926
13 3/8% Convertible Senior Subordinated Notes due December 2003 9,887 12,735
6 3/8% Convertible Subordinated Debentures due January 2004 5,873 -
Current portion of bank financing 6,617 4,918
---------- ---------
37,736 36,079
LONG-TERM LIABILITIES
6 3/8% Convertible Subordinated Debentures due January 2004 - 55,132
7 1/4% Convertible Subordinated Debentures due October 2005 9,939 11,665
9% Convertible Senior Subordinated Notes due February 2007,
net of discount 34,070 -
Reclamation and mine closure 20,912 14,458
Other long-term liabilities 8,094 8,456
---------- ---------
73,015 89,711
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, par value $1.00 per share-authorized 250,000,000 shares,
issued 151,074,310 and 119,653,267 at June 30, 2003 and December 31,
2002
(1,059,211 shares held in treasury) 151,074 119,653
Additional paid in capital 463,238 420,863
Accumulated deficit (514,842) (479,207)
Shares held in treasury (13,190) (13,190)
Accumulated other comprehensive loss (1,218) (821)
---------- ---------
85,062 47,298
---------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 195,813 $ 173,088
========== =========
10
EXHIBIT 99.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
Three Months ended June 30, Six Months ended June 30,
--------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
(In Thousands, except per share data)
REVENUES
Sales of metal $ 25,731 $ 19,565 $ 54,732 $ 36,034
Interest and other 483 2,564 745 3,092
----------- ----------- ----------- -----------
Total revenues 26,214 22,129 55,477 39,126
COSTS AND EXPENSES
Production 19,013 16,262 36,891 34,276
Depreciation and depletion 4,679 3,533 9,698 5,411
Administrative and general 2,409 2,464 5,465 4,569
Exploration 1,127 983 2,214 1,611
Pre-feasibility 390 960 766 1,782
Interest 2,015 5,447 4,023 9,848
Other holding costs 945 667 1,568 1,460
Loss on exchange and early retirement of debt 81 2,668 28,188 2,920
----------- ----------- ----------- -----------
Total cost and expenses 30,659 32,984 88,813 61,877
----------- ----------- ----------- -----------
NET LOSS FROM CONTINUING OPERATIONS BEFORE TAXES AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
(4,445) (10,855) (33,336) (22,751)
Income tax benefit - - (7) -
----------- ----------- ----------- -----------
NET LOSS BEFORE CUMULATIVE EFFECT IN CHANGE IN ACCOUNTING
PRINCIPLE (4,445) (10,855) (33,329) (22,751)
Cumulative effect of change in accounting principle - - (2,306) -
----------- ----------- ----------- -----------
NET LOSS (4,445) (10,855) (35,635) (22,751)
Other comprehensive loss (100) (578) (397) (477)
----------- ----------- ----------- -----------
COMPREHENSIVE LOSS $ (4,545) $ (11,433) $ (36,032) $ (23,228)
=========== =========== =========== ===========
BASIC AND DILUTED LOSS PER SHARE:
Weighted average number of shares of common stock
outstanding 143,888 67,654 138,724 60,008
=========== =========== ========== ===========
Net loss per common share before cumulative effect of
change in accounting principle $ (0.03) $ (0.16) $ (0.24) $ (0.38)
Cumulative effect of change in accounting principle - - (0.02) -
----------- ----------- ---------- -----------
Net loss per common share $ (0.03) $ (0.16) $ (0.26) $ (0.38)
=========== =========== ========== ===========
11
EXHIBIT 99.1
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three and Six Months Ended June 30, 2003 and 2002
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (4,445) $ (10,855) $ (35,635) $ (22,751)
Add (deduct) non-cash items:
Depreciation and depletion 4,679 3,533 9,698 5,411
Loss on early retirement of debt 81 2,920 28,188 2,920
Non-cash interest expense 2 4,185 1,103 5,388
Cumulative effect of change in accounting method - - 2,306 -
Other charges 491 100 732 917
Changes in Operating Assets and Liabilities:
Receivables (964) 864 (2,123) (435)
Inventories (2,543) (1,348) (5,237) 1,374
Accounts payable and accrued liabilities (292) 698 (3,369) 1,754
----------- ----------- ----------- -----------
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
(2,991) 97 (4,337) (5,422)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments (32,203) (782) (72,953) (782)
Proceeds from sales of short-term investments 51,790 2,420 71,510 3,684
Expenditures on mining assets (4,447) (3,177) (7,711) (4,731)
Other (37) 121 (87) (16)
----------- ----------- ----------- -----------
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 15,103 (1,418) (9,241) (1,845)
CASH FLOWS FROM FINANCING ACTIVITIES:
Retirement of debt (22,392) (9,427) (22,392) (9,427)
Proceeds from issuance of long-term debt,
net of issuance costs (270) 14,050 33,268 14,050
Proceeds from issuance of common stock 11,500 - 11,500 -
Bank Borrowings on working capital facility 4,447 - 16,603 -
Payments to Bank on working capital facility (5,126) - (14,904) -
Other (32) (54) (63) (115)
----------- ----------- ----------- -----------
CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES: (11,873) 4,569 24,012 4,508
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
239 3,248 10,434 (2,759)
Cash and cash equivalents at beginning of period 19,288 8,707 9,093 14,714
----------- ----------- ----------- -----------
Cash and cash equivalents at end of period $ 19,527 $ 11,955 $ 19,527 $ 11,955
=========== =========== =========== ===========
During the first half of 2003, holders of $2.8 million of the Series I 13
3/8% Convertible Senior Subordinated Notes due December 31, 2003 (the "Series I
13 3/8% Notes") voluntarily converted such notes, in accordance with original
terms, into approximately 2.1 million shares of common stock. In addition, 0.1
million shares of common stock were issued as payment for $0.2 million of
interest expense on the Series I 13 3/8% Notes.
12
EXHIBIT 99.1
During the first half of 2003, the Company repurchased $26.9 million and
$1.7 million principal amount of its outstanding 6 3/8% and 7 1/4% Convertible
Subordinated Debentures, respectively, in exchange for 16.9 million shares of
common stock and recorded a loss on exchange and early retirement of debt of
approximately $28.2 million. In addition, 0.6 million shares of common stock
were issued as payment for $0.9 million of interest expense as part of the
transaction. In conjunction with the issuance of the 9% Convertible Senior
Subordinated Notes, the Company also issued 0.6 million shares of common stock
for partial payment of offering costs of $1.0 million.
During the first half of 2003, the Company issued 1.2 million shares of
common stock in conjunction with its long-term incentive program.
During the 2nd quarter of 2002, the Company repurchased $10.3 million, $0.8
million and $0.3 million principal amount of its outstanding 6%, 6-3/8% and
7-1/4% Convertible Subordinated Debentures, respectively, in exchange for 11.9
million shares of common stock and recorded a loss on retirement of debt of
approximately $2.7 million. In addition, holders of $10.3 million of the Series
I Notes voluntarily converted such Notes, under the terms of the indenture, into
approximately 7.7 million shares of common stock. The Company also issued 2.7
million shares of common stock as payment of $4.2 million of accrued interest on
the 13 3/8% Notes.
During the first half of 2002, the Company repurchased $13.8 million, $0.8
million and $0.3 million principal amount of its outstanding 6%, 6-3/8% and
7-1/4% Convertible Subordinated Debentures, respectively, in exchange for 15.3
million shares of common stock and recorded a loss on retirement of debt of
approximately $2.9 million. In addition, holders of $16.0 million of the Series
I Notes voluntarily converted such Notes, under the terms of the indenture, into
approximately 12.8 million shares of common stock. The Company also issued 2.7
million shares of common stock as payment of $4.2 million of accrued interest on
the 13 3/8% Notes.
13