-- HIGHLIGHTS -- COEUR D'ALENE, Idaho, Nov. 6
/PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation (NYSE:
CDE; TSX: CDM) today reported net income of $18.4 million, or $0.06
per diluted share, for the third quarter of 2006, compared to net
income of $3.5 million, or $0.01 per diluted share, for the
year-ago period. Cash provided by operations was $20.8 million,
compared to $3.9 million of cash provided by operations in the
year-ago quarter. For the first nine months of 2006, the company
reported net income of $65.3 million, or $0.23 per diluted share,
compared to net income of $0.6 million, or $0.00 per diluted share,
for the same period of 2005. Results for the first nine months of
2006 include a pre-tax gain of $11.1 million from the strategic
sale of Coeur Silver Valley (CSV), as well as $2.0 million of
income from CSV operations at the Galena mine. Metal sales in the
third quarter of 2006 increased 29 percent to $50.6 million from
$39.3 million in the year-ago quarter. Metal sales for the first
nine months of 2006 increased 42 percent to $149.5 million from
$105.0 million in the year-ago period. In commenting on the
company's performance, Dennis E. Wheeler, Chairman, President and
Chief Executive Officer, said, "Four of our five mines showed
sequential-quarter increases in silver and gold production in the
third quarter of 2006, which is consistent with our expectation for
higher production levels in the second half of the year. The strong
earnings in the third quarter of 2006 relative to the year-ago
period were attributable largely to higher realized prices for
silver and gold in combination with a decline in production costs
applicable to sales and lower administrative expense." Wheeler
added, "We are entering an exciting period in which we expect to
begin realizing the benefits of previous investment in exploration,
particularly at Cerro Bayo and Martha. At Cerro Bayo, for example,
we recently began development in the first of two relatively new
high-grade vein systems. At Martha, we have acquired two new
properties near the mine - and have signed a letter of intent on
two additional properties - all of which show great potential for
production of high-grade ore. In addition, the recently announced
reserve increases at Endeavor and Broken Hill in Australia bode
well for the long-term production profiles of each of these mines."
Wheeler said, "We remain bullish on precious metals markets. A
continuation of recent price levels and demand trends will enable
Coeur to maintain very healthy earnings and cash flows." Coeur
currently expects 2006 silver production to be approximately 14
million ounces, including production from discontinued operations
at CSV, with a full-year consolidated silver cash cost per ounce of
approximately $3.25. The company expects full-year gold production
to be approximately 120,000 ounces. Highlights by Individual
Property * Rochester (Nevada) - Following the heavy precipitation
experienced in the first half of 2006, silver production was up 22
percent in the third quarter as compared to the second quarter of
2006 in accordance with the previously forecasted trend of
improving solution grade. Gold production also rebounded strongly
during the third quarter as compared to the second quarter of 2006.
Silver cash cost per ounce was 56 percent below that of the second
quarter of 2006 due mainly to an increased gold by-product credit
and improved recoveries for silver and gold. Silver cash cost per
ounce declined by 69 percent relative to the year-ago quarter
because higher gold prices resulted in an increased by-product
credit. Silver production was below the level of the year-ago
quarter due to the heavy precipitation experienced earlier this
year. * Cerro Bayo (Chile) - Silver and gold production were below
year-ago levels due primarily to lower grades. Lower silver and
gold production caused the cash cost per ounce of silver produced
in the third quarter to be higher than the cost in the year-ago
period. Under its 2006 mine plan, Cerro Bayo has been making a
transition from narrow, lower-grade veins to newly developed, wider
and higher-grade veins as the year progresses. Specifically, since
the recent discovery of two new vein systems, the Marcela Sur and
Cascada systems, Cerro Bayo has made relatively quick progress to
put the veins into production. In October, Cerro Bayo began
development of the Cascada system, which is expected to make a
meaningful contribution to production in the fourth quarter of 2006
and beyond. Marcela Sur production is expected to commence in early
2007. Drilling is ongoing at both vein systems to expand and define
the new high-grade silver and gold mineralization in these areas
(see "Exploration" below). * Martha (Argentina) - Silver production
increased 42 percent relative to the year-ago period due to a 53
percent increase in silver grade. Production also increased in the
third quarter of 2006 relative to the preceding quarter due to an
increase in tons milled. The higher production volumes, combined
with increased gold by-product credits, helped reduce silver cash
cost per ounce relative to both the year-ago period and the second
quarter of 2006. * Endeavor (Australia) - As compared to the
results for the second quarter of 2006, silver production was up 69
percent as Endeavor continues to recover from an October 2005 rock
fall. The company expects Endeavor to return to a more typical run
rate sometime during the fourth quarter. Endeavor reported a 38
percent increase in proven and probable silver mineral reserves to
32.3 million ounces from 23.3 million ounces in the prior year. *
Broken Hill (Australia) - As compared to the results for the second
quarter of 2006, silver production was up 11 percent. Comparison to
the year- ago period is not meaningful because Coeur acquired its
interest during the third quarter of 2005. During the year, Broken
Hill has reported a 20 percent increase in proven and probable
silver mineral reserves to 18 million ounces from 15 million ounces
in the prior year. Balance Sheet and Capital Investment Highlights
The company had $365.2 million in cash and short-term investments
as of September 30, 2006. Capital expenditures during the third
quarter of 2006 totaled $49.0 million, most of which was spent on
the Kensington (Alaska) gold project. * At Kensington, capital
expenditures totaled $41.9 million during the quarter as the
company continued with an aggressive construction schedule. The
company is aiming to complete the project and start producing gold
near the end of 2007. Recent activity has focused on completion of
the mill and crusher buildings. Kensington is expected to produce
100,000 ounces of gold annually. * At San Bartolome, engineering
and procurement activities are ongoing and, as recently announced,
the company has commenced construction of the tailings facility.
Capital expenditures totaled $4.1 million during the quarter. The
company is aiming to complete construction activities near the end
of 2007. San Bartolome is expected to produce about 8 million
ounces of silver annually. Exploration The company invested $2.6
million in exploration activity in the third quarter of 2006.
Highlights of exploration activity are presented below. * Argentina
- The company signed a letter of intent with Mirasol Resources Ltd
to explore the Sascha and Joaquin silver-gold projects in the Santa
Cruz province of Argentina. This agreement comes on the heels of
the company's acquisition in the second quarter of 2006 of two new
silver-gold exploration properties in the province where Coeur's
Martha mine is located. * Cerro Bayo - Drilling is ongoing at the
Cascada and Marcela vein systems to expand and define the new
high-grade silver and gold mineralization in these areas. Recent
Cascada drilling has targeted the north high-grade ore shoot that
was discovered with exploratory drilling earlier this year. This
recent drilling has returned values up to 124 grams of gold per
tonne and 1,926 grams of silver per tonne (3.6 troy ounces of gold
and 56.2 silver ounces per short ton). * Kensington - The company
has an ongoing program to build upon Kensington's existing base of
1 million ounces of probable gold mineral reserves and its resource
base of 269,000 indicated gold mineral ounces and 584,000 inferred
gold mineral ounces. The company completed more than 4,600 feet of
core drilling during the third quarter, bringing the year-to-date
total to more than 32,000 feet. Surface drilling on the adjacent
Jualin property began in the third quarter and totaled 4,200 feet.
* Tanzania - The company completed a rotary air blast drill program
on one of its concessions in the Lake Victoria Goldfields District
of northern Tanzania, where the company holds licenses covering
approximately 731 square kilometers. Drilling defined numerous gold
anomalies, the largest of which is 1.6 kilometers long by 0.4
kilometers wide. During the quarter, drilling totaled approximately
43,000 feet. Coeur d'Alene Mines Corporation is one of the world's
leading primary silver producers and has a strong presence in gold.
The company has mining interests in Alaska, Argentina, Australia,
Bolivia, Chile, and Nevada. Conference Call Information Coeur
d'Alene Mines Corporation will hold a conference call to discuss
the company's third quarter 2006 results at 1 p.m. Eastern time on
November 6, 2006. To listen live via telephone, call (877) 704-5378
(US and Canada) or (913) 312-1292 (International). The conference
call and presentation will also be web cast on the company's web
site http://www.coeur.com/. A replay of the call will be available
through November 13, 2006. The replay dial-in numbers are (888)
203-1112 (US and Canada) and (719) 457-0820 (International) and the
access code is 5043185. Cautionary Statement Company press releases
may contain numerous forward-looking statements within the meaning
of securities legislation in the United States and Canada relating
to the company's silver and gold mining business. Such statements
are subject to numerous assumptions and uncertainties, many of
which are outside the company's control. 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, construction schedules, currency
exchange rates, and the completion and/or updating of mining
feasibility studies, 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, 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 the company's filings from time to time with the SEC and the
Ontario Securities Commission, including, without limitation, the
company's reports on Form 10-K and Form 10-Q. 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 such forward-looking statements, whether as a
result of new information, future events or otherwise. The
definitions of proven and probable mineral reserves and resources
under Canadian National Instrument 43-101 are substantially
identical to the definitions of such reserves under Guide 7 of the
SEC's Securities Act Industry Guides. Mineral resources are in
addition to mineral reserves and have not demonstrated economic
viability. Donald J. Birak, Coeur's Senior Vice President of
Exploration, is the qualified person responsible for the
preparation of the scientific and technical information in this
document. Mr. Birak has reviewed the available data and procedures
and believes the collection of exploration data and calculation of
mineral reserves reported in this document was conducted in a
professional and competent manner. For a description of the key
assumptions, parameters and methods used to estimate the
Kensington, Endeavor and Broken Hill 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 Kensington Gold Project
Technical Report dated April 20, 2006, the Endeavor Mine Technical
Report dated May 5, 2005, and the Broken Hill Mine Technical Report
dated October 7, 2005 and filed on SEDAR at http://www.sedar.com/.
Metallurgical recovery factor of 54% should be applied to the
silver reserve ounces. Endeavor Mineral Reserves Silver Short
Silver Ounces Tons Grade Contained June 30, 2006 (000s) Ounces/ton
(000s) Proven 9,700 1.60 15,560 Probable 11,684 1.43 16,699 Total
21,385 1.51 32,259 Mineral Reserves at June 30, 2006: Metal prices:
$10.00/ounce silver and $2.95/pound of copper $0.907/pound of zinc
and $0.34/pound of lead Cut-off grade: 4.3% zinc equivalent
(equates to $41.20 gross revenue per ore block Metallurgical
recovery factor of 54% should be applied to the silver reserve
ounces. Year-end 2005 Proven 5,512 1.58 8,682 Probable 6,614 2.22
14,662 Total 12,125 1.93 23,344 Broken Hill Mineral Reserves Silver
Short Silver Ounces Tons Grade Contained June 30, 2006 (000s)
Ounces/ton (000s) Proven 10,064 1.46 14,647 Probable 2,843 1.18
3,368 Total 12,907 1.40 18,015 Mineral Reserves at June 30, 2006:
Metal prices: $10.12/ounce silver $0.907/pound of zinc and
$0.408/pound of lead Cut-off grade: 8% combined lead and zinc for
the North Mine. 7% combined lead and zinc for all other deposits.
Metallurgical recovery factor of 74% should be applied to the
silver reserve ounces. Year-end 2005 Proven 8,522 1.31 11,134
Probable 2,998 1.27 3,822 Total 11,520 1.30 14,956 COEUR D'ALENE
MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) Three Months
Nine Months Ended September 30, Ended September 30, 2006 2005 2006
2005 REVENUES (In thousands except per share data) Sales of metal
$50,606 $39,281 $149,501 $105,020 COSTS and Expenses Production
costs applicable to sales 21,915 24,448 63,602 60,602 Depreciation
and depletion 6,536 4,344 19,843 12,866 Administrative and general
4,045 4,326 13,662 15,031 Exploration 2,572 2,525 6,474 8,130
Pre-development - (35) - 6,051 Litigation settlements 874 - 1,343
1,600 Total costs and expenses 35,942 35,608 104,924 104,280 OTHER
INCOME AND EXPENSE Interest and other income 5,619 2,067 12,933
5,351 Interest expense, net of capitalized interest (232) (737)
(1,120) (1,869) Total other income and expense 5,387 1,330 11,813
3,482 Income from continuing operations before income taxes 20,051
5,003 56,390 4,222 Income tax provision (1,673) (281) (4,155) (813)
Income from continuing operations 18,378 4,722 52,235 3,409 Income
(loss) from discontinued operations, net of income taxes - (1,269)
1,969 (2,802) Gain (loss) on sale of net assets of discontinued
operations (27) - 11,132 - NET INCOME 18,351 3,453 65,336 607 Other
comprehensive income 420 134 2,161 255 COMPREHENSIVE INCOME $18,771
$3,587 $67,497 $862 BASIC AND DILUTED INCOME (LOSS) PER SHARE Basic
income per share: Income from continuing operations $0.07 $0.02
$0.19 $0.01 Income (loss) from discontinued operations - (0.01)
0.05 (0.01) Net income $0.07 $0.01 $0.24 $0.00 Diluted income per
share: Income from continuing operations $0.06 $0.02 $0.18 $0.01
Income (loss) from discontinued operations - (0.01) 0.05 (0.01) Net
income $ 0.06 $ 0.01 $0.23 $0.00 Weighted average number of shares
of common stock Basic 277,543 241,683 269,259 240,572 Diluted
302,172 266,161 293,975 241,345 Operating Statistics From
Continuing Operations The following table presents information by
mine and consolidated sales information for the three- and
nine-month periods ended September 30, 2006 and 2005: Three Months
Ended Nine Months Ended September 30, September 30, 2006 2005 2006
2005 Rochester Tons processed 2,648,263 2,131,844 7,917,710
6,783,878 Ore grade/Ag oz 0.83 0.94 0.75 0.98 Ore grade/Au oz 0.01
0.01 0.01 0.01 Recovery/Ag oz (A) 63.9% 84.9% 62.0% 60.9%
Recovery/Au oz (A) 93.0% 97.5% 68.1% 74.2% Silver production ounces
1,403,302 1,708,950 3,704,960 4,053,531 Gold production ounces
21,583 21,436 55,965 49,840 Cash cost/oz $1.14 $3.64 $2.58 $5.56
Total cost/oz $4.02 $5.07 $5.68 $7.49 Cerro Bayo Tons milled
105,945 103,213 321,581 294,463 Ore grade/Ag oz 4.04 7.63 5.64 7.49
Ore grade/Au oz .075 .176 0.088 0.171 Recovery/Ag oz 94.9% 94.3%
94.4% 94.9% Recovery/Au oz 92.0% 92.0% 92.1% 92.7% Silver
production ounces 405,586 742,825 1,711,153 2,093,964 Gold
production ounces 7,325 16,744 26,054 46,711 Cash cost/oz $8.33
$0.37 $3.86 $0.33 Total cost/oz $11.25 $1.86 $6.20 $1.97 Martha
Mine Tons milled 9,101 9,966 24,767 26,719 Ore grade/Ag oz 92.82
60.64 84.56 61.21 Ore grade/Au oz 0.123 0.079 0.111 0.078
Recovery/Ag oz 95.5% 94.3% 94.7% 95.1% Recovery/Au oz 91.9% 92.0%
91.9% 92.9% Silver production ounces 806,384 569,873 1,982,884
1,555,054 Gold production ounces 1,026 726 2,535 1,933 Cash cost/oz
$4.01 $4.24 $4.51 $4.52 Total cost/oz $4.39 $4.62 $4.94 $4.91
Endeavor (B) Tons milled 218,997 299,311 440,776 377,637 Ore
grade/Ag oz 0.94 1.48 1.07 1.48 Recovery/Ag oz 66.1% 49.8% 63.9%
50.0% Silver production ounces 136,849 220,613 302,019 279,078 Cash
cost/oz $2.52 $1.95 $2.48 $1.94 Total cost/oz $3.39 $3.19 $3.59
$3.18 Broken Hill (B) Tons milled 614,620 98,281 1,721,512 98,281
Ore grade/Ag oz 1.27 1.16 1.33 1.16 Recovery/Ag oz 75.1% 73.1%
73.3% 73.1% Silver production ounces 587,360 83,010 1,672,713
83,010 Cash cost/oz $3.05 $2.69 $3.07 $2.69 Total cost/oz $5.01
$4.62 $5.54 $4.62 CONSOLIDATED PRODUCTION TOTALS Silver ounces
3,339,481 3,325,271 9,373,729 8,064,637 Gold ounces 29,934 38,906
84,554 98,484 Cash cost per oz/silver $3.10 $2.87 $3.31 $3.85 Total
cost/oz $5.14 $4.14 $5.53 $5.38 CONSOLIDATED SALES TOTALS (C)
Silver ounces sold 3,020,351 3,154,544 9,148,095 8,688,786 Gold
ounces sold 26,595 38,303 81,486 107,516 Realized price per silver
ounce $11.55 $7.29 $11.73 $7.13 Realized price per gold ounce $634
$452 $625 $436 (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 2011. Current recovery may vary significantly from ultimate
recovery. See Critical Accounting Policies and Estimates -- Ore on
Leach Pad. (B) The Company acquired its interests in the Endeavor
and Broken Hill mines in May 2005 and September 2005, respectively.
(C) Units sold at realized metal prices will not match reported
metal sales due primarily to the effects of embedded derivatives in
the Company's previously priced sales contracts. "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 gold ounces or silver ounces produced by that property
during that same period. Management uses cash costs per ounce 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. "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, 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
"Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs"
set forth below. Operating Statistics From Discontinued Operation
The following table presents information for Coeur Silver Valley
which was sold on June 1, 2006: Three Months Nine Months Ended
September 30, Ended September 30, 2006 2005 2006 (1) 2005 Silver
Valley/Galena Tons milled - 28,498 52,876 101,889 Ore grade/Silver
oz - 16.62 15.15 17.46 Recovery/Silver oz - 97.1% 96.0% 97.2%
Silver production ounces - 459,805 768,674 1,729,801 Cash cost/oz -
$8.39 $9.75 $7.60 Total cost/oz - $9.47 $10.64 $8.47 Gold
production - 60 180 205 (1) Amounts represent five months ended May
31, 2006. Reconciliation of Non-GAAP Cash Costs to GAAP Production
Costs The tables below present reconciliations between non-GAAP
cash costs per ounce to production costs applicable to sales
including depreciation, depletion and amortization (GAAP). Total
cash costs include all direct and indirect operating cash costs
related directly to the physical activities of producing metals,
including mining, processing and other plant costs, third-party
refining and marketing expense, on-site general and administrative
costs, royalties and mining production taxes, net of by-product
revenues earned from all metals other than the primary metal
produced at each unit. Total cash costs are a performance measure
and provide management and investors with an indication of net cash
flow, after consideration of the realized price received for
production sold. Management also uses this measurement for the
comparative monitoring of performance of our mining operations
period-to-period from a cash flow perspective. "Total cash costs
per ounce" is a measure developed by precious metals companies in
an effort to provide a comparable standard, however, there can be
no assurance that our reporting of this non-GAAP measure is similar
to that reported by other mining companies. Production costs
applicable to sales including depreciation, depletion and
amortization, is the most comparable financial measure calculated
in accordance with GAAP to total cash costs. The sum of the
production costs applicable to sales and depreciation, depletion
and amortization for our mines as set forth in the tables below is
included in our Consolidated Statement of Operations and
Comprehensive Loss. Three Months Ended September 30, 2006 (In
thousands except ounces and per ounce costs) Cerro Endeavor Broken
Rochester Bayo Martha (1) Hill (1) Total Production of Silver
(ounces) 1,403,302 405,586 806,384 136,849 587,360 3,339,481 Cash
Costs per ounce $1.14 $8.33 $4.01 $2.52 $3.05 $3.10 Total Cash
Costs (Non-GAAP) $1,598 $3,380 $3,230 $346 $1,791 $10,345
Add/Subtract: Third party smelting costs - (672) (552) (224) (666)
(2,114) By-Product credit (2) 13,423 4,542 630 - - 18,595 Other
adjustments 383 - - - - 383 Change in inventory (4,635) (546) -
(35) (78) (5,294) Depreciation, depletion and amortization 4,037
1,184 313 119 1,152 6,805 Production costs applicable to sales,
including depreciation, depletion and amortization (GAAP) $14,806
$7,888 $3,621 $206 $2,199 $28,720 Three Months Ended September 30,
2005 (In thousands except ounces and per ounce costs) Cerro
Endeavor Broken Rochester Bayo Martha (1) Hill (1) Total Production
of Silver (ounces) 1,708,950 742,825 569,873 220,613 83,010
3,325,271 Cash Costs per ounce $3.64 $0.37 $4.24 $1.95 $2.69 $2.87
Total Cash Costs (Non-GAAP) $6,217 $273 $2,415 $430 $224 $9,559
Add/Subtract: Third party smelting costs - (861) (312) (235) (70)
(1,478) By-Product credit (2) 9,476 7,350 320 - - 17,146 Other
Adjustment (55) 10 174 - - 129 Change in inventory (3,326) 2,005
410 3 - (908) Depreciation, depletion and amortization 2,437 1,109
219 274 160 4,199 Production costs applicable to sales, including
depreciation, depletion and amortization (GAAP) $14,749 $9,886
$3,226 $472 $314 $28,647 Nine Months Ended September 30, 2006 (In
thousands except ounces and per ounce costs) Cerro Endeavor Broken
Rochester Bayo Martha (1) Hill (1) Total Production of Silver
(ounces) 3,704,960 1,711,153 1,982,884 302,019 1,672,713 9,373,729
Cash Costs per ounce $2.58 $3.86 $4.51 $2.48 $3.07 $3.31 Total Cash
Costs (Non-GAAP) $9,570 $6,602 $8,939 $750 $5,127 $30,988
Add/Subtract: Third party smelting costs - (2,464) (1,333) (481)
(2,000) (6,278) By-product Credit (2) 33,899 15,713 1,523 - -
51,135 Other adjustments 1,320 - - - - 1,320 Change in inventory
(11,657) (2,142) - (89) 325 (13,563) Depreciation, depletion and
amortization 11,491 4,004 853 334 4,137 20,819 Production costs
applicable to sales, including depreciation, depletion and
amortization (GAAP) $44,623 $21,713 $9,982 $514 $7,589 $84,421 Nine
Months Ended September 30, 2005 (In thousands except ounces and per
ounce costs) Cerro Endeavor Broken Rochester Bayo Martha (1) Hill
(1) Total Production of Silver (ounces) 4,053,531 2,093,964
1,555,054 279,078 83,010 8,064,637 Cash Costs per ounce $5.56 $0.33
$4.52 $1.94 $2.69 $3.85 Total Cash Costs (Non-GAAP) $22,536 $691
$7,030 $541 $224 $31,022 Add/Subtract: Third party smelting costs -
(2,099) (811) (292) (70) (3,272) By-Product credit (2) 21,637
20,150 834 - - 42,621 Other adjustment (256) - - - - (256) Change
in inventory (15,124) 5,271 376 (36) - (9,513) Depreciation,
depletion and amortization 7,805 3,431 600 346 160 12,342
Production costs applicable to sales, including depreciation,
depletion and amortization (GAAP) $36,598 $27,444 $8,029 $559 $314
$72,944 The following tables present a reconciliation between
non-GAAP cash costs per ounce to GAAP production costs applicable
to sales reported in Discontinued Operations (see Note D): Coeur
Silver Valley/Galena Three Months Nine Months Ended September 30,
Ended September 30, 2006 (3) 2005 2006 (3) 2005 (In thousands
except ounces and per ounce costs) Production of Silver (ounces) -
459,805 768,674 1,729,801 Cash Costs per ounce - $8.39 $9.75 $7.60
Total Cash Costs (Non-GAAP) - $3,859 $7,498 $13,149 Add/Subtract:
Third party smelting costs - (662) (1,464) (2,620) By-Product
credit (2) - 596 1,473 2,223 Change in inventory - 3 726 (321)
Depreciation, depletion and amortization - 493 681 1,506 Production
costs applicable to sales, including depreciation, depletion and
amortization (GAAP) - $4,289 $8,914 $13,937 (1) The Company's share
of silver production at Endeavor and Broken Hill commenced in May
2005 and September 2005, respectively. (2) By-product credits are
based upon production units and the period's average metal price
for the purposes of reporting cash costs per ounce. (3) Amounts
represent five months ended May 31, 2006. COEUR D'ALENE MINES
CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) September 30, December 31, 2006 2005 ASSETS (In
Thousands) CURRENT ASSETS Cash and cash equivalents $354,051
$214,616 Short-term investments 11,180 25,726 Receivables 27,207
27,986 Ore on leach pad 28,205 25,394 Metal and other inventories
17,143 12,807 Deferred tax assets 5,442 2,255 Prepaid expenses and
other 5,803 4,707 Assets of discontinued operations held for sale
(Note D) - 14,828 449,031 328,319 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 119,467 105,107 Less accumulated
depreciation (61,805) (57,929) 57,662 47,178 MINING PROPERTIES
Operational mining properties 126,862 121,441 Less accumulated
depletion (113,513) (105,486) 13,349 15,955 Mineral interests
72,201 72,201 Less accumulated depletion (6,688) (2,218) 65,513
69,983 Non-producing and development properties 160,053 72,488
238,915 158,426 OTHER ASSETS Ore on leach pad, non-current portion
36,396 29,254 Restricted cash and cash equivalents 19,863 16,943
Debt issuance costs, net 5,227 5,454 Deferred tax assets 1,890 923
Other 7,754 8,319 71,130 60,893 TOTAL ASSETS $816,738 $594,816
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS (Unaudited) September 30, December 31, 2006 2005 (In
thousands except share data) LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES Accounts payable $25,312 $17,189 Other current
liabilities 12,652 6,274 Accrued interest payable 469 1,031 Accrued
salaries and wages 6,405 7,840 Current taxes payable 7,477 66
Liabilities of discontinued operations held for sale (Note D) -
12,908 52,315 45,308 LONG-TERM LIABILITIES 1 1/4% Convertible
Senior Notes due January 2024 180,000 180,000 Reclamation and mine
closure 24,459 24,082 Other long-term liabilities 3,022 3,873
207,481 207,955 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY
Common Stock, par value $1.00 per share; authorized 500,000,000
shares, issued 279,063,659 and 250,961,353 shares in 2006 and 2005
(1,059,211 shares held in treasury) 279,064 250,961 Additional
paid-in capital 777,117 656,977 Accumulated deficit (486,372)
(551,357) Shares held in treasury (13,190) (13,190) Accumulated
other comprehensive income (loss) 323 (1,838) 556,942 341,553 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $816,738 $594,816 COEUR
D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited) Three Months Nine Months Ended September
30, Ended September 30, 2006 2005 2006 2005 (In Thousands) CASH
FLOWS FROM OPERATING ACTIVITIES: Net income $18,351 $3,453 $65,336
$607 Add (deduct) non-cash items: Depreciation and depletion 6,536
4,344 19,843 12,866 Deferred taxes (816) (175) (3,947) (55)
Unrealized loss on embedded derivative, net (954) (389) 2,247 (353)
Share based compensation 655 313 1,819 887 Other charges (268) 346
253 1,350 Changes in Operating Assets and Liabilities: Receivables
282 (463) 1,092 (13,334) Prepaid and other current assets (846)
(371) (1,872) (1,093) Inventories (5,345) (1,086) (14,290) (10,278)
Accounts payable and accrued liabilities 3,196 (1,978) 10,832 386
Discontinued operations 27 (127) (11,308) 1,242 CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES 20,818 3,867 70,005 (7,775) CASH
FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (49,021)
(57,305) (102,505) (82,693) Purchases of short-term investments
(7,558) (11,502) (17,441) (34,419) Proceeds from sales of
short-term investments 15,465 13,019 29,081 35,207 Other 25 (53)
(409) (20) Discontinued operations 1,081 (981) 15,446 (2,346) CASH
USED IN INVESTING ACTIVITIES (40,008) (56,822) (75,828) (84,271)
CASH FLOWS FROM FINANCING ACTIVITIES: Retirement of long-term debt
(377) (147) (1,066) (208) Proceeds from issuance of common stock -
35,949 154,560 35,397 Payment of public offering costs 59 - (8,329)
- Other 167 (65) 93 (160) CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES (151) 35,737 145,258 35,029 INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (19,341) (17,218) 139,435 (57,017) Cash and
cash equivalents at beginning of period 373,392 233,269 214,616
273,079 Cash and cash equivalents at end of period $354,051
$216,051 $354,051 $216,062 Contact: Scott Lamb 208-665-0777
DATASOURCE: Coeur d'Alene Mines Corporation CONTACT: Scott Lamb of
Coeur d'Alene Mines Corporation, +1-208-665-0777 Web site:
http://www.coeur.com/
Copyright