Silver and Gold Production from Coeur's New Mines and Record Metals Prices Combine to Deliver Record First Quarter Results

COEUR D'ALENE, Idaho, May 09, 2011 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) today announced the highest first quarter production, metal sales and cash flow in the Company's history.

First Quarter Highlights:

• Net metal sales of $199.6 million.
• $90.1 million in operating cash flow¹.
• Adjusted earnings² of $37.5 million, or $0.42 per share.
• 4.1 million ounces of silver produced and 53,130 ounces of gold produced.
• Average realized prices of $31.27 per ounce for silver and $1,374 per ounce for gold.
• Cash operating costs of $8.36 per silver ounce³.
• Working capital increased by $75.9 million to approximately $71.4 million.
• Initial mineral resources established at Joaquin project in Argentina of 19.7 million indicated ounces of silver and 48.0 million inferred ounces of silver.

"Building on the momentum from the fourth quarter of 2010 with our three new, long-life precious metals mines, we are pleased to report another strong quarter and expect consistent increases in production during the remainder of 2011," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. "With silver and gold prices expected to remain strong despite recent volatility, we are anticipating 2011 to be the Company's best year ever by a wide margin with record cash flows driven by 20 million ounces of silver production and 250,000 ounces of gold production."

"The expansion of mine life at our long-time flagship Rochester silver and gold mine in Nevada is on schedule to add new production ounces beginning in the fourth quarter. Similarly, our three new mines will increase production levels throughout the year, which is why we are comfortable maintaining our full-year production guidance," Mr. Wheeler added.

"We are also continuing with our expanded drilling programs on our large property holdings surrounding our operating mines, and expect to develop new reserves and resources for future production to further take advantage of the current price environment."

"In Bolivia, we are pleased that our rights have been again reconfirmed, even in light of the prior misleading media reports, and that the government at the highest levels has stated that the San Bartolomé mine will remain under Coeur ownership. We continue to receive strong support from government mining agencies, our unions and our partners in the socially empowered mining Cooperatives in Potosi," Mr. Wheeler added.

Financial Highlights
US$ in millions		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		$88.3		$101.0		$118.6		$207.6		$199.6
Production Costs		51.8		58.6		60.4		86.8		92.5
EBITDA4		26.9		31.8		48.3		109.5		88.6
Adjusted Earnings5		1.7		-8.9		-4.5		53.2		37.5
Operating Cash Flow6		27.7		22.0		34.7		99.4		90.1
Capital Expenditures		47.2		45.5		36.8		26.6		15.9
Cash and Equivalents		56.0		41.2		27.8		66.1		64.4
Total Debt7		208.0		180.1		180.1		154.1		168.0
Common Shares Issued		86.1		89.3		89.3		89.3		89.5
Avg. Realized Price - Silver		$16.84		$18.56		$18.87		$26.83		$31.27
Avg. Realized Price - Gold		$1,104		$1,176		$1,229		$1,357		$1,374
Note: Reflects results from continuing operations.

First quarter metal sales totaled $199.6 million, up 126.1% compared to last year's first quarter and down 4% compared to the prior quarter. The year-over-year jump in metal sales was due to higher silver production at both San Bartolomé and Palmarejo during the first quarter and significantly higher gold production since Kensington was not yet in operation during last year's first quarter. The decline in first quarter metal sales compared to the fourth quarter of 2010 was due to expected and temporarily lower silver production at Palmarejo and San Bartolomé and lower gold production at Kensington and Palmarejo.

The Company's average realized silver and gold prices during the first quarter were $31.27 and $1,374 per ounce. During last year's first quarter, Coeur's average realized silver price was $16.84 per ounce and average realized gold price was $1,104 per ounce. Sales of silver contributed 56.4% of the Company's total metal sales while the remainder was derived from the sale of gold ounces.

Capital expenditures continued their downward trend by declining 40% compared to the prior quarter to $15.9 million, leading to increased free cash flow. Quarterly operating cash flow⁸ of $90.1 million represented a threefold increase compared to last year's first quarter and was down slightly from $99.4 million in the prior quarter.

Quarterly adjusted earnings totaled $37.5 million compared to $1.7 million in the first quarter of last year. Quarterly net income was $12.5 million during the first quarter compared to ($12.9) million in the first quarter of last year.

As of March 31^st, cash and equivalents totaled $64.4 million. The Company's working capital at March 31, 2011 increased by $75.9 million to approximately $71.4 million compared to a deficit of $4.5 million at December 31, 2010.

Total shares issued as of May 6^th were 89.5 million.

Operational Highlights⁹

In the first quarter, the Company produced 4.1 million ounces of silver and 53,130 ounces of gold versus 4.8 million and 60,640 ounces of silver and gold, respectively, in the prior quarter and 3.4 million and 25,782 ounces of silver and gold, respectively, during last year's first quarter.

Palmarejo (Mexico)

• Palmarejo's silver and gold production increased each month during the first quarter, a trend that continued in April with an all-time record for both silver and gold production.
• Quarterly silver production of 1.7 million ounces while gold production totaled 27,759 ounces.
• Average cash operating cost of $4.80 per silver ounce.
• Quarterly metal sales of $88.2 million and operating cash flow of $44.4 million.

San Bartolomé (Bolivia)

• San Bartolomé produced nearly 700,000 more silver ounces in the first quarter compared to last year's first quarter and approximately 300,000 less silver ounces compared to the fourth quarter mostly due to adverse weather conditions that hampered processing activities.
• Quarterly silver production of 1.7 million ounces.
• Average cash operating cost of $9.13 per ounce.
• Quarterly metal sales of $46.3 million and operating cash flow of $32.2 million.

Kensington (Alaska)

• Kensington's gold production was slightly lower in the first quarter compared to the fourth quarter due to lower gold grades. Mining activities are now re-entering higher-grade ore zones, leading to higher expected gold production during the remainder of the year.
• Quarterly gold production of 23,676 ounces.
• Cash costs per ounce of $988.75
• Quarterly metal sales of $48.1 million and operating cash flow of $13.9 million.

Rochester (Nevada)

• Silver and gold production from residual leaching at Rochester declined during the first quarter as planned. Construction of the new leach pad is on-schedule and new silver and gold production is anticipated in the fourth quarter.
• Produced 333,696 silver ounces and 1,451 gold ounces.
• Quarterly metal sales of $14.3 million and operating cash flow of $3.4 million.
• Cash operating costs were $10.28 per silver ounce in the first quarter.
• Drilling on new areas of mineralization set to commence during the second quarter.

Exploration Highlights

Joaquin (Argentina)

Through work done from November 2006 to year-end 2010, and total exploration costs of $6.9 million, the Company has established initial indicated mineral resources of 19.7 million contained ounces of silver and 36,000 contained ounces of gold and inferred mineral resources of 48.0 million silver and 42,000 ounces of gold at the Joaquin project located in the Santa Cruz Province of Argentina approximately seventy kilometers north of the Company's Martha mine via all weather-gravel road. At the end of 2010, Coeur had met its obligations to have earned a managing 51% interest in the Joaquin joint venture.

Mineral Resources for the Joaquin Project (100% Ownership Basis)
Oxides
Classification		Tonnes (000s)		Ave. Grade (grams/tonne)				Contained Ounces (000s)
				Au		Ag		Au		Ag
Indicated		6,785		0.16		77.7		34		16,952
Inferred		11,128		0.09		86.6		32		30,989
Sulfides
Indicated		419		0.16		203.5		2		2,741
Inferred		2,667		0.12		197.8		10		16,963
Totals
Indicated		7,204		0.16		85.0		36		19,693
Inferred		13,794		0.10		108.1		42		47,952

Effective April 2010 metal prices used were US$20 /oz Ag and US$1,300 oz/Au.
Oxide mineral resources estimated using a cut off grade of 33 g/t Ag Eq and sulfide mineral resources with a cut off of 51.9 g/t Ag Eq. within Whittle(R)-estimated, surface mine, scoping level parameters.
Ag Eq (silver equivalent) = AU grade in grams per tonne times 65+ Ag grade in grams per tonne.
Mineral resources estimated by the consulting firm of NCL Ingeniería y Construcción Ltda. in Santiago, Chile.
Mineral resources that are not mineral reserves have not demonstrated economic viability.

Coeur is actively engaged in expanding the mineral resources at Joaquin, explore for new mineralization and commence further technical work that will result in the completion of a feasibility study, which will lift the Company's managing joint venture interest from 51% to 61%.

Palmarejo (Mexico)

The Company completed over 9,900 meters (32,500 feet) of core drilling in 28 new holes in the quarter to discover new silver and gold mineralization and define new mineral reserves. This exploration work concentrated primarily on drilling around the Palmarejo mine from both surface and underground platforms with 21 new cores holes; the majority of which was completed at the Tucson and Chapotillo zones in the current Palmarejo surface mine area. Many assay results are pending, but positive results were received from Tucson and a new target, La Virginia, immediately north of the surface mine.

Kensington (Alaska)

Exploration at Kensington consisted of 1,430 meters (4,691 feet) of core drilling to discover new mineralization and expand mineral reserves. The main focus of this drilling was on the Raven structure, a prominent gold-bearing quartz vein and vein splay system situated about 650 meters (2,100 feet) west of the current Kensington mining area. Several high-grade intercepts were encountered in this drilling. At the end of the quarter, new drilling commenced on a similar, quartz vein target, Comet, located south of Raven.

Conference Call Information

Coeur will hold a conference call to discuss the Company's first quarter 2011 results at 1:00 p.m. Eastern time on May 9, 2011. To listen live via telephone, call (877) 464-2820 (US and Canada) or (660) 422-4718 (International). The conference ID number is 62334995. The conference call and presentation will also be webcast on the Company's web site at www.coeur.com. A replay of the call will be available through May 16, 2011. The replay dial-in numbers are (800) 642-1687 (US and Canada) and (706) 645-9291 (International) and the access code is 62334995. In addition, the call will be archived for a limited time on the Company's web site.

Cautionary Statement

This press release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, 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 United States Securities and Exchange Commission, and the Canadian securities regulators, 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 third parties in respect of Coeur, its financial or operating results or its securities.

Donald J. Birak, Coeur's Senior Vice President of Exploration and a qualified person under NI 43-101, supervised the preparation of the scientific and technical information concerning Coeur's mineral projects in this presentation. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and 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 www.sedar.com.

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 presentation, such as "measured," "indicated," and "inferred resources," that are recognized by Canadian 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 secured from us, or from the SEC's website at www.sec.gov/edgar.shtml.

Non-U.S. GAAP Measures

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including cash operating costs, operating cash flow, adjusted earnings, and EBITDA. 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 believe operating cash flow, adjusted earnings and EBITDA are important measures in assessing the Company's overall financial performance.

About Coeur

Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company has three new, large precious metals mines generating significantly higher production, sales and cash flow in continued strong metals markets. In 2011, Coeur will realize the first full year of production and cash flow from all three of its new, 100%-owned mines: the San Bartolomé silver mine in Bolivia, the Palmarejo silver/gold mine in Mexico, and the Kensington gold mine in Alaska. In addition, the Company is expecting new production from its long-time flagship Rochester mine in Nevada in the fourth quarter of 2011. The Company also owns a non-operating interest in a low-cost mine in Australia, and conducts ongoing exploration activities near its operations in Argentina, Mexico and Alaska

Photos of projects and other information can be accessed through the Company's website at www.coeur.com.

¹ Operating cash flow is a non-U.S. GAAP measure defined as net income plus depreciation, depletion and amortization and other non-cash items prior to changes in operating assets and liabilities. On a U.S. GAAP basis, the Company generated $35.8 million of cash flow from operations during the first quarter. See the reconciliation from non-U.S. GAAP to U.S. GAAP at the end of this news release.

² Adjusted earnings is a non-U.S. GAAP measure defined as operating income plus interest and other income less interest expense and current taxes. Adjusted earnings excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. The Company realized net income of $12.5 million in the first quarter. See reconciliation between non-U.S. GAAP adjusted earnings and U.S. GAAP at the end of this news release.

³ Cash operating costs is a non-U.S. GAAP measure defined as cash costs less production taxes and royalties if applicable. See reconciliation between non-U.S. GAAP adjusted earnings and U.S. GAAP at the end of this news release.

⁴ EBITDA is a non-U.S. GAAP measure defined as earnings before interest, taxes, depreciation and amortization. A reconciliation of this measure to U.S. GAAP is provided at the end of this news release.

⁵ Adjusted earnings is a non-U.S. GAAP measure defined as operating income plus interest and other income less interest expense and current taxes. Adjusted earnings excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. The Company realized net income of $12.5 million in the first quarter. See reconciliation between non-U.S. GAAP adjusted earnings and U.S. GAAP at the end of this news release.

⁶ Operating cash flow is a non-U.S. GAAP measure defined as net income plus depreciation, depletion and amortization and other non-cash items prior to changes in operating assets and liabilities. On a U.S. GAAP basis, the Company generated $35.8 million of cash flow from operations during the first quarter. See the reconciliation from non-U.S. GAAP to U.S. GAAP at the end of this news release.

⁷ Includes short and long-term indebtedness; excludes capital leases, royalty obligations and Mitsubishi gold lease facility.

⁸ Operating cash flow is a non-U.S. GAAP measure defined as net income plus depreciation, depletion and amortization and other non-cash items prior to changes in operating assets and liabilities. On a U.S. GAAP basis, the Company generated $35.8 million of cash flow from operations during the first quarter. See the reconciliation from non-U.S. GAAP to U.S. GAAP at the end of this news release.

⁹ For additional operating statistics by mine, please refer to the tables located at the end of this news release.

Excluding changes in operating assets and liabilities, the Company's operating cash flow consisted of the following (in thousands):

OPERATING CASH FLOW RECONCILIATION		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011
Cash provided by (used in) operating activities		($9,230	)		$32,457			$12,939			$129,397			$35,787
Changes in operating assets and liabilities:
Receivables and other current assets		11,287			(3,662	)		4,511			(5,908	)		4,860
Prepaid expenses and other		-			-			-			(5,871	)		-
Inventories		2,657			2,251			22,980			19,999			12,493
Accounts payable and accrued liabilities		23,000			(8,998	)		(5,704	)		(38,186	)		36,977
OPERATING CASH FLOW		$27,714			$22,048			$34,726			$99,431			$90,117

Reconciliation of EBITDA to net income (loss) is shown below (in thousands):

EBITDA RECONCILIATION		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011
Net income (loss)		($12,858	)		($50,743	)		($22,628	)		($5,079	)		$12,464
Gain (loss) on sale of net assets of discontinued operations, net of income taxes		-			2,978			(883	)		-			-
Income (loss) from discontinued operations, net of income taxes		2,812			2,966			251			-			-
Income tax benefit (provision)		(6,997	)		(9,372	)		3,233			3,655			12,939
Interest expense, net of capitalized interest		5,806			5,645			9,951			9,540			9,304
Interest and other income		(1,735	)		3,821			638			(3,495	)		(1,934	)
Fair value adjustments, net		4,258			42,516			19,107			51,213			5,302
Gain (loss) on debt extinguishments		7,858			4,050			806			7,586			467
Depreciation and depletion		27,719			29,982			37,801			46,117			50,041
EBITDA		$26,863			$31,843			$48,276			$109,537			$88,583

Reconciliation of adjusted earnings to net income (loss) is shown below (in thousands):

ADJUSTED EARNINGS RECONCILIATION		Q1 2010			Q2 2010			Q3 2010			Q4 2010			Q1 2011
Net income (loss)		($12,858	)		($50,743	)		($22,628	)		($5,079	)		$12,464
Gain (loss) on sale of net assets of discontinued operations, net of income taxes		-			2,978			(883	)		-			-
Share based compensation		1,387			622			1,960			3,248			8,155
Income (loss) from discontinued operations, net of income taxes		2,812			2,966			251			-			-
Deferred income tax provision		(6,720	)		(15,935	)		(7,860	)		(8,386	)		5,870
Interest expense, accretion of royalty obligation		4,992			4,637			4,778			4,611			5,267
Fair value adjustments, net		4,258			42,516			19,107			51,213			5,302
Gain (loss) on debt extinguishments		7,858			4,050			806			7,586			467
ADJUSTED EARNINGS		$1,729			($8,909	)		($4,469	)		$53,193			$37,525

The following table presents production information by mine and consolidated sales information for the years ended December 31:

			Three Months Ended March 31,
			2011					2010
Silver Operations:
Palmarejo
Tons milled				398,740					458,006
Ore grade/Ag oz				5.97					3.91
Ore grade/Au oz				0.08					0.05
Recovery/Ag oz				72.7	%				72.7	%
Recovery/Au oz				87.4	%				92.1	%
Silver production ounces				1,729,766					1,300,593
Gold production ounces				27,759					22,577
Cash operating costs/oz			$	4.80				$	5.41
Cash cost/oz			$	4.80				$	5.41
Total production cost/oz			$	24.40				$	21.39
San Bartolomé
Tons milled				387,668					293,106
Ore grade/Ag oz				5.60					3.74
Recovery/Ag oz				88.6	%				94.8	%
Silver production ounces				1,710,948					1,039,926
Cash operating costs/oz			$	9.13				$	9.98
Cash cost/oz			$	10.47				$	10.84
Total production cost/oz			$	13.37				$	13.89
Martha
Tons milled				17,818					17,575
Ore grade/Ag oz				12.06					24.59
Ore grade/Au oz				0.02					0.03
Recovery/Ag oz				83.7	%				84.5	%
Recovery/Au oz				75.3	%				88.5	%
Silver production ounces				179,985					365,226
Gold production ounces				244					515
Cash operating costs/oz			$	24.44				$	15.47
Cash cost/oz			$	25.46				$	15.95
Total production cost/oz			$	29.28				$	22.31
Rochester(A)
Silver production ounces				333,696					522,159
Gold production ounces				1,451					2,690
Cash operating costs/oz			$	10.28				$	1.68
Cash cost/oz			$	11.86				$	2.35
Total production cost/oz			$	13.53				$	3.37
Endeavor
Tons milled				167,287					129,872
Ore grade/Ag oz				2.00					3.27
Recovery/Ag oz				44.5	%				48.1	%
Silver production ounces				149,182					204,253
Cash operating costs/oz			$	17.15				$	7.40
Cash cost/oz			$	17.15				$	7.40
Total production cost/oz			$	21.30				$	10.63
Gold Operation:
Kensington(B)
Tons milled				105,820					-
Ore grade/AU oz				0.24					-
Recovery/AU oz				92.4	%				-
Gold production ounces				23,676					-
Cash operating costs/oz			$	988.41				$	-
Cash cost/oz			$	988.41				$	-
Total production cost/oz			$	1,383.97				$	-

 

			Three Months Ended March 31,
			2011				2010
CONSOLIDATED PRODUCTION TOTALS(C)
Total Silver ounces				4,103,577				3,432,157
Total Gold ounces				53,130				25,782
Silver Operations:(D)
Cash operating costs per oz/silver			$	8.36			$	7.41
Cash cost per oz/silver			$	9.10			$	7.83
Total production cost/oz			$	19.02			$	15.84
Gold Operation:(E)
Cash operating costs/oz			$	988.75			$	-
Cash cost/oz			$	988.75			$	-
Total production cost/oz			$	1,384.30			$	-
CONSOLIDATED SALES TOTALS (F)
Silver ounces sold				3,659,154				3,633,695
Gold ounces sold				65,948				25,734
Realized price per silver ounce			$	31.27			$	16.84
Realized price per gold ounce			$	1,374.00			$	1,104

 

(A)	Palmarejo commenced commercial production on April 20, 2009. Mine statistics do not represent normal operating results
(B)	The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the metallurgical recovery to be approximately 61% for silver and 92% for gold. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates - Ore on Leach Pad - in Form 10-Q.
(C)	Current production ounces and recoveries reflect final metal settlements of previously reported production ounces.

Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs

The following table presents a reconciliation between non-GAAP cash operating costs per ounce and cash costs per ounce to production costs applicable to sales including depreciation, depletion and amortization, calculated in accordance with U.S. 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. Cash operating costs include all cash costs except production taxes and royalties if applicable. Total cash costs and cash operating costs are performance measures which we believe provide management and investors with an indication of net cash flow, after consideration of the realized price received for production sold. Management also uses these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. "Cash operating costs per ounce" and "Total cash costs per ounce" are measures developed by precious metals companies in an effort to provide a comparable standard, however, there can be no assurance that our reporting of these non-GAAP measures are similar to that reported by other mining companies. Cash operating costs and total cash costs, as alternative measures, have the limitation of excluding potentially large amounts related to inventory adjustments, non-cash charges and byproduct credits. Management compensates for this limitation by using both the GAAP production costs and the non-GAAP cash costs metrics in its planning.

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 Statements of Operations and Comprehensive Income.

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended March 31, 2011 (In thousands except ounces and per ounce costs)		Palmarejo				San Bartolomé				Kensington				Rochester			Martha				Endeavor				Total
Production of silver (ounces)			1,729,766				1,710,948				-				333,696			179,985				149,182				4,103,577
Production of gold (ounces)											23,676															23,676
Cash operating cost per Ag ounce		$	4.80			$	9.13							$	10.28		$	24.44			$	17.15			$	8.36
Cash costs per Ag ounce		$	4.80			$	10.47							$	11.86		$	25.46			$	17.15			$	9.10
Cash operating cost per Au ounce										$	988.75														$	988.75
Cash cost per Au ounce										$	988.75														$	988.75
Total Cash Operating Cost (Non-U.S. GAAP)		$	8,311			$	15,615			$	23,410			$	3,429		$	4,399			$	2,558			$	57,722
Royalties			-				2,304				-				330			183				-				2,817
Production taxes			-				-				-				200			-				-				200
Total Cash Costs (Non-U.S. GAAP)			8,311				17,919				23,410				3,959			4,582				2,558				60,739
Add/Subtract:
Third party smelting costs			-				-				(2,650	)			-			(1,373	)			(563	)			(4,586	)
By-product credit			38,468				-				-				2,015			339				-				40,822
Other adjustments			221				(189	)			-				42			96				-				170
Change in inventory			(9,631	)			(3,612	)			12,160				1,341			(4,034	)			(895	)			(4,671	)
Depreciation, depletion and amortization			33,666				5,143				9,365				514			591				619				49,898
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)		$	71,035			$	19,261			$	42,285			$	7,871		$	201			$	1,719			$	142,372

 

Three months ended March 31, 2010 (In thousands except ounces and per ounce costs)		Palmarejo				San Bartolomé				Kensington			Rochester			Martha				Endeavor				Total
Production of silver (ounces)			1,300,593				1,039,926				-			522,159			365,226				204,253				3,432,157
Production of gold (ounces)											-														-
Cash operating cost per Ag ounce		$	5.41			$	9.98						$	1.68		$	15.47			$	7.40			$	7.41
Cash costs per Ag ounce		$	5.41			$	10.84						$	2.35		$	15.95			$	7.40			$	7.83
Cash operating cost per Au ounce										$	-													$	-
Cash cost per Au ounce										$	-													$	-
Total Operating Cost (Non-U.S. GAAP)		$	7,030			$	10,379			$	-		$	878		$	5,648			$	1,511			$	25,446
Royalties			-				892							-			177				-				1,069
Production taxes			-				-							348			-				-				348
Total Cash Costs (Non-U.S. GAAP)			7,030				11,271				-			1,226			5,825				1,511				26,863
Add/Subtract:
Third party smelting costs			(784	)			-				-			-			(693	)			(264	)			(1,741	)
By-product credit			25,045				-				-			2,988			571				-				28,604
Other adjustments			-				-				-			68			6				-				74
Change in inventory			(3,408	)			(1,868	)			-			1,507			1,617				(629	)			(2,781	)
Depreciation, depletion and amortization			20,793				3,177				-			465			2,317				660				27,412
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)		$	48,676			$	12,580			$	-		$	6,254		$	9,643			$	1,278			$	78,431

The Palmarejo gold production royalty is currently reflected as a minimum royalty obligation which commenced on July 1, 2009 and ends when payments have been made on a total of 400,000 ounces of gold, at which time a royalty expense will be recorded.

(1) Amounts reflect final metal settlement adjustments.

COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
		March 31,				December 31,
		2011				2010
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	64,427			$	66,118
Receivables			68,875				58,880
Ore on leach pad			6,584				7,959
Metal and other inventory			131,491				118,340
Prepaid expenses and other			14,932				14,914
			286,309				266,211
NON-CURRENT ASSETS
Property, plant and equipment			659,731				668,101
Mining properties			2,093,586				2,122,216
Ore on leach pad, non-current portion			10,722				10,005
Restricted assets			30,992				29,028
Receivables, non-current portion			38,193				42,866
Debt issuance costs, net			3,714				4,333
Deferred tax assets			680				804
Other			13,758				13,963
TOTAL ASSETS		$	3,137,685			$	3,157,527
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	59,602			$	67,209
Accrued liabilities and other			3,701				39,720
Accrued income taxes			19,068				28,397
Accrued payroll and related benefits			19,169				17,953
Accrued interest payable			184				834
Current portion of capital leases and other debt obligations			59,099				63,317
Current portion of royalty obligation			52,854				51,981
Current portion of reclamation and mine closure			1,273				1,306
			214,950				270,717
NON-CURRENT LIABILITIES
Long-term debt and capital leases			146,237				130,067
Non-current portion of royalty obligation			186,454				190,334
Reclamation and mine closure			28,227				27,779
Deferred income taxes			479,625				474,264
Other long-term liabilities			24,809				23,599
			865,352				846,043
SHAREHOLDERS' EQUITY
Common stock, par value $0.01 per share; authorized 150,000,000 shares, 89,523,419 issued at March 31, 2011 and 89,315,767 issued at December 31, 2010			895				893
Additional paid-in capital			2,582,356				2,578,206
Accumulated deficit			(525,868	)			(538,332	)
			2,057,383				2,040,767
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	3,137,685			$	3,157,527
See accompanying notes to consolidated financial statements in the Form 10-Q

 

COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited - in thousands except per share data)
		Three Months Ended March 31,
		2011				2010
Sales of metal		$	199,624			$	88,289
Production costs applicable to sales			(92,474	)			(51,803	)
Depreciation, depletion and amortization			(50,041	)			(27,719	)
Gross profit			57,109				8,767
COSTS AND EXPENSES
Administrative and general			12,231				6,709
Exploration			2,762				2,520
Pre-development, care, maintenance and other			3,574				394
Total cost and expenses			18,567				9,623
OPERATING INCOME (LOSS)			38,542				(856	)
OTHER INCOME AND EXPENSE
Loss on debt extinguishments			(467	)			(7,858	)
Fair value adjustments, net			(5,302	)			(4,258	)
Interest and other income			1,934				1,735
Interest expense, net of capitalized interest			(9,304	)			(5,806	)
Total other income and expense			(13,139	)			(16,187	)
Gain (loss) from continuing operations before income taxes			25,403				(17,043	)
Income tax benefit (provision)			(12,939	)			6,997
Gain (loss) from continuing operations			12,464				(10,046	)
Loss from discontinued operations, net of income taxes			-				(2,812	)
NET INCOME (LOSS)			12,464				(12,858	)
Other comprehensive loss, net of income taxes			-				(5	)
COMPREHENSIVE INCOME (LOSS)		$	12,464			$	(12,863	)
BASIC AND DILUTED INCOME PER SHARE
Basic income per share:
Income (loss) from continuing operations		$	0.14			$	(0.12	)
Income (loss) from discontinued operations			-				(0.04	)
Net income (loss)		$	0.14			$	(0.16	)
Diluted income per share:
Income (loss) from continuing operations		$	0.14			$	(0.12	)
Income (loss) from discontinued operations			-				(0.04	)
Net income (loss)		$	0.14			$	(0.16	)
Weighted average number of shares of common stock
Basic			89,288				81,753
Diluted			89,653				81,753
See accompanying notes to consolidated financial statements in the Form 10-Q

 

COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, except share data)
		Three months ended March 31,
		2011				2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	12,464			$	(12,858	)
Add (deduct) non-cash items
Depreciation, depletion and amortization			50,041				28,773
Amortization of debt discount			450				-
Accretion of royalty obligation			5,267				4,992
Deferred income taxes			5,870				(6,496	)
Loss on debt extinguishment			467				7,858
Fair value adjustments, net			6,661				3,672
Loss on foreign currency transactions			109				350
Share-based compensation			8,155				1,387
Other non-cash charges			632				36
Changes in operating assets and liabilities:
Receivables and other current assets			(4,860	)			(11,287	)
Inventories			(12,493	)			(2,657	)
Accounts payable and accrued liabilities			(36,977	)			(23,000	)
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES			35,786				(9,230	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments			(1,229	)			-
Proceeds from sales of investments			586				-
Capital expenditures			(15,918	)			(47,189	)
Other			(51	)			(74	)
CASH USED IN INVESTING ACTIVITIES			(16,612	)			(47,263	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes and bank borrowings			27,500				112,769
Payments on long-term debt, capital leases, and associated costs			(18,531	)			(7,601	)
Payments on gold production royalty			(14,618	)			(8,951	)
Proceeds from gold lease facility			-				4,517
Payments on gold lease facility			(13,800	)			(14,891	)
Proceeds from sale-leaseback transactions			-				4,853
Additions to restricted assets associated with the Kensington Term Facility			(1,325	)			(798	)
Other			(91	)			(225	)
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES:			(20,865	)			89,673
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(1,691	)			33,180
Cash and cash equivalents at beginning of period			66,118				22,782
Cash and cash equivalents at end of period		$	64,427			$	55,962
See accompanying notes to consolidated financial statements in the Form 10-Q

 

PALMAREJO:
in millions of US$		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		$44.8		$44.8		$61.5		$78.1		$88.2
Production Costs		27.9		32.1		31.3		35.6		37.4
Operating Income/(Loss)		-4.6		-8.9		6.4		13.0		16.5
Operating Cash Flow1		24.5		0.1		28.9		40.1		44.4
Capital Expenditures		16.5		10.8		15.8		11.1		5.1
1 Non-GAAP measure. Represents operating cash flow before changes in operating assets and liabilities
Ounces unless otherwise noted		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Underground Operations:
Tons Mined		177,649		166,381		146,682		151,032		143,800
Average Silver Grade (oz/t)		5.0		5.1		5.6		6.3		8.3
Average Gold Grade (oz/t)		0.07		0.09		0.10		0.1		0.1
Surface Operations:
Tons Mined		308,883		306,246		256,927		281,177		246,879
Average Silver Grade (oz/t)		2.9		2.0		5.2		7.3		4.6
Average Gold Grade (oz/t)		0.04		0.03		0.07		0.07		0.05
Processing:
Total Tons Milled		458,006		457,268		405,742		514,391		398,740
Average Recovery Rate - Ag		72.70%		72.50%		69.60%		66.72%		72.70%
Average Recovery Rate - Au		92.10%		86.70%		94.30%		90.32%		87.40%
Silver Production - oz		1,301		1,071		1,507		2,010		1,730
Gold Production - oz		23		20		30		30		28
Cash Operating Costs/Ag Oz		$5.41		$10.78		$0.15		$2.68		$4.80

SAN BARTOLOME:

in millions of US$		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		$14.6		$31.3		$30.0		$67.1		$46.3
Production Costs		9.4		15.3		12.9		22.4		14.1
Operating Income/(Loss)		2.0		9.9		12.2		39.2		27.0
Operating Cash Flow1		4.5		11.8		10.3		34.0		32.2
Capital Expenditures		0.5		1.3		0.8		3.5		3.5
1 Non-GAAP measure. Represents operating cash flow before changes in operating assets and liabilities
Ounces unless otherwise noted		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Tons Milled		293,105		446,909		360,605		404,160		387,668
Average Silver Grade (oz/t)		3.74		5.0		5.7		5.4		5.6
Average Recovery Rate		94.80%		83.40%		87.20%		92.04%		88.60%
Silver Production		1,040		1,863		1,795		2,011		1,711
Gold Production		0		0		0		0		0
Cash Operating Costs/Ag Oz		$9.98		$7.78		$7.05		$7.53		$9.13

KENSINGTON:

in millions of US$		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		nm		nm		$8.5		$15.1		$48.1
Production Costs		nm		nm		7.4		6.6		32.9
Operating Income/(Loss)		nm		nm		(6.7)		(1.8)		5.8
Operating Cash Flow1		nm		nm		-0.5		7.8		13.9
Capital Expenditures		29.9		33.2		20.0		9.6		5.4
1 Non-GAAP measure. Represents operating cash flow before changes in operating assets and liabilities
Ounces unless otherwise noted		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Tons Milled		0		0		90,254		83,774		105,820
Average Gold Grade (oz/t)		0		0		0.19		0.37		0.24
Average Recovery Rate		0		0		87.70%		91.03%		92.40%
Gold Production		0		0		15		28		24
Cash Operating Costs/Ag Oz		$0.00		$0.00		$1,199.20		$874.60		$988.75

ROCHESTER:

in millions of US$		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		$10.8		$12.4		$5.8		$25.3		$14.3
Production Costs		5.8		5.6		2.8		10.6		7.4
Operating Income/(Loss)		4.3		5.7		2.3		15.2		2.9
Operating Cash Flow1		4.8		6.2		2.8		14.8		3.4
Capital Expenditures		0.0		0.1		0.1		2.1		1.7
1 Non-GAAP measure. Represents operating cash flow before changes in operating assets and liabilities
Ounces unless otherwise noted		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Silver Production		522		533		419		549		334
Gold Production		3		3		2		2		2
Cash Operating Costs/Ag Oz		$1.68		$2.44		$5.10		$2.94		$10.28

MARTHA:

in millions of US$		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		$15.0		$9.2		$11.0		$18.6		($0.3)
Production Costs		7.3		4.1		5.3		10.3		-0.4
Operating Income/(Loss)		4.0		1.2		2.1		5.2		-1.8
Operating Cash Flow1		5.7		-0.5		-0.2		3.5		-0.3
Capital Expenditures		0.0		0.0		0.0		0.1		0.3
1 Non-GAAP measure. Represents operating cash flow before changes in operating assets and liabilities
Ounces unless otherwise noted		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Total Tons Milled		17,574		12,421		12,790		13,616		17,818
Average Silver Grade (oz/t)		24.59		50.24		42.42		14.53		12.06
Average Gold Grade (oz/t)		0.03		0.06		0.05		0.02		0.02
Average Recovery Rate - Ag		84.50%		88.10%		96.30%		75.85%		83.70%
Average Recovery Rate - Au		88.50%		81.70%		93.60%		57.68%		75.30%
Silver Production		365		550		511		150		180
Gold Production		0		1		1		0		0
Cash Operating Costs/Ag Oz		$15.47		$8.97		$9.86		$33.99		$24.44

ENDEAVOR:

in millions of US$		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Sales of Metal		$2.3		$3.3		$1.7		$3.3		$3.1
Production Costs		0.6		1.4		0.7		1.4		1.1
Operating Income/(Loss)		1.0		1.4		0.7		1.3		1.4
Operating Cash Flow1		1.7		1.9		1.0		1.9		2.0
Capital Expenditures		0.0		0.0		0.0		0.0		0.0
1 Non-GAAP measure. Represents operating cash flow before changes in operating assets and liabilities
Ounces unless otherwise noted		1Q 2010		2Q 2010		3Q 2010		4Q 2010		1Q 2011
Silver Production		204		139		102		120		149
Gold Production		0		0		0		0		0
Cash Operating Costs/Ag Oz		$7.40		$8.98		$10.32		$16.03		$17.15

Segment Data:

Financial information relating to the Company's segments is as follows (in thousands):

Three months ended March 31, 2011		Palmarejo Mine				San Bartolomé Mine				Kensington Mine				Rochester Mine				Martha Mine				Endeavor Mine				Other				Total
Sales of metals		$	88,165			$	46,321			$	48,110			$	14,262			$	(314	)		$	3,080			$	-			$	199,624
Productions costs applicable to sales			(37,369	)			(14,118	)			(32,920	)			(7,357	)			390				(1,100	)			-				(92,474	)
Depreciation and depletion			(33,675	)			(5,143	)			(9,365	)			(514	)			(592	)			(619	)			(133	)			(50,041	)
Gross profit			17,121				27,060				5,825				6,391				(516	)			1,361				(133	)			57,109
Exploration expense			636				4				46				21				1,296				-				759				2,762
Other operating expenses			-				38				20				3,536				-				-				12,211				15,805
OPERATING INCOME(LOSS)			16,485				27,018				5,759				2,834				(1,812	)			1,361				(13,103	)			38,542
Interest and other income			1,289				607				1				46				(311	)			-				302				1,934
Interest expense			(5,703	)			(34	)			(1,247	)			-				(345	)			-				(1,975	)			(9,304	)
Loss on debt extinguishment			-				-				-				-				-				-				(467	)			(467	)
Fair market adjustments, net			(6,343	)			-				(698	)			-				-				-				1,739				(5,302	)
Income tax benefit (expense)			(3,776	)			(10,037	)			(20	)			-				41				-				853				(12,939	)
Net income (loss)		$	1,952			$	17,554			$	3,795			$	2,880			$	(2,427	)		$	1,361			$	(12,651	)		$	12,464
Segment assets (A)		$	2,106,197			$	269,158			$	503,321			$	27,049			$	17,571			$	39,093			$	23,506			$	2,985,895
Capital expenditures (B)		$	5,081			$	3,536			$	5,369			$	1,668			$	251			$	-			$	13			$	15,918

 

Three months ended March 31, 2010		Palmarejo Mine				San Bartolomé Mine				Kensington Mine				Rochester Mine				Martha Mine				Endeavor Mine				Other				Total
Sales of metals		$	45,614			$	14,592			$	-			$	10,751			$	15,020			$	2,312			$	-			$	88,289
Productions costs applicable to sales			(28,667	)			(9,403	)			-				(5,789	)			(7,326	)			(618	)							(51,803	)
Depreciation and depletion			(20,793	)			(3,177	)			-				(465	)			(2,485	)			(660	)			(139	)			(27,719	)
Gross profit (loss)			(3,846	)			2,012				-				4,497				5,209				1,034				(139	)			8,767
Exploration expense			480				-				13				21				1,210				-				796				2,520
Other operating expenses			314				-				-				172				-				-				6,617				7,103
OPERATING INCOME (LOSS)			(4,640	)			2,012				(13	)			4,304				3,999				1,034				(7,552	)			(856	)
Interest and other income			2,164				(39	)			-				-				(770	)			-				379				1,734
Interest expense			(5,467	)			(71	)			-				-				(38	)			-				(229	)			(5,805	)
Loss on debt extinguishment			-				-				-				-				-				-				(7,858	)			(7,858	)
Fair value adjustments, net			(3,546	)			-				(463	)			-				-				-				(249	)			(4,258	)
Income tax benefit (expense)			6,862				(592	)			-				-				(13	)			-				740				6,997
Income (loss) from continuing operations			(4,627	)			1,310				(476	)			4,304				3,178				1,034				(14,769	)			(10,046	)
Loss from discontinued operations,
net of income taxes			-				-				-				-								-				(2,812	)			(2,812	)
Net income (loss)		$	(4,627	)		$	1,310			$	(476	)		$	4,304			$	3,178			$	1,034			$	(17,581	)		$	(12,858	)
Segment assets (A)		$	2,137,098			$	277,768			$	433,468			$	29,720			$	33,627			$	40,755			$	45,185			$	2,997,621
Capital expenditures (B)		$	16,507			$	546			$	29,901			$	1			$	(8	)		$	-			$	242			$	47,189

(A) Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties

(B) Balance represents cash flow amounts

SOURCE: Coeur d'Alene Mines Corporation

Coeur d'Alene Mines Corporation
Mitchell Krebs, 208-769-8152
Chief Financial Officer
or
Tony Ebersole, 208-665-0777
Director of Corporate Communications