The hope for CDE is to continue to retire debt for cents on the dollar:
"During 2000, the Company repurchased a total of $31.7 million in face value of its outstanding Convertible Subordinated Debentures, for a purchase price of $14.1 million."
or issue stock to debt holders (40 cents to the dollar):
"On March 19, 2001, the Company issued a total of 1,787,500 shares of its Common Stock to two holders of a total of $5 million principal amount of the Company's outstanding 7 1/4% Convertible Subordinated Debentures due 2005 in exchange for such Debentures."
They sold their Australian gold mine:
"Consistent with the Company's stated strategy to focus primarily on the development of its silver assets, Coeur initiated a program to sell its non-core gold holdings. Consequently, on February 7, 2001, the Company sold its 50% shareholding in Gasgoyne Gold Mines NL ("Gasgoyne") for A$28.1 million (US$15.6 million) in cash."
and will dump the rest of their gold assets:
"On February 26, 2001, the Company announced that it had formally engaged a financial advisor to assist with the sale of Coeur's gold interests in Chile. These interests consist of the Fachinal and Petorca mines, various exploration properties and other financial assets."
and they settled the outstanding lawsuit:
"On March 16, 2001, representatives of the United States and the Company reached an agreement in principle to settle the lawsuit filed by the Government in March 1996 in the U.S. District Court for the District of Idaho alleging response costs and damages to federal natural resources in the Coeur d'Alene River Basin as a result of alleged releases of hazardous substances from prior mining activities in the area. "
They ended 1999 with $264.7 million in long-term debt and reduced it to $228.7 by the end of 2000. Almost $200 million of the debt is convertible bonds trading near 30 cents on the dollar.
chart.canada-stockwatch.com
chart.canada-stockwatch.com
They could retire $200 million of debt with either $60m cash and/or shares. Maybe someone could acquire all of the bonds and potentially get control of the firm, much like the Sunshine debtholders ended up with almost all (96.48%) of the new Sunshine shares.
By the way, new Sunshine shares are doing awful
finance.yahoo.com
down almost 20% today to a new 52 week low. |
