$$ News $$ Coeur Reports Record Low Silver Cash Costs and 2001 Year End Results
Company Produces 10.9 Million Ounces of Silver At Record Low Cash Costs
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Feb. 22, 2002--Coeur d'Alene Mines Corporation (NYSE:CDE - news):
* Convertible debt reduced by $59.1 million due to ongoing debt restructuring program
* Production to begin in May at Cerro Bayo mine in Chile while progress continues to be made at San Bartolome project in Bolivia
Coeur d'Alene Mines Corporation (NYSE:CDE - news) today reported a net loss attributable to common shareholders of $3.1 million or $0.07 per common share for the year ended December 31, 2001 compared to a net loss of $50 million or $1.41 per common share for 2000.
Results for the year 2001 were impacted positively by an extraordinary gain of $48.2 million on the early retirement of $59.1 million in long-term debt partially offset by a $6.1 million write-down in the carrying value of the Company's Kensington property in Alaska and a charge of $2.3 million for mine closure costs in Chile. Year end results for 2000 included an extraordinary gain of $16.1 million on the early retirement of $31.7 million in long-term debt, offset by a non-cash charge of $12.2 million for the write-down of mining properties and a non-cash holding loss on securities available for sale of $2.3 million.
For the fourth quarter of 2001, the Company reported a net loss of $18.3 million or $0.41 per share compared to a net loss of $19.1 million or $0.51 per share for the final quarter of 2000. Fourth quarter results for 2001 contained a non-cash charge of $6.1 million for the write-down of mining properties. Fourth quarter results for 2000 contained an extraordinary gain of $14.9 million on the early retirement of debt, offset by a $12.2 million write-down of mining properties, and a $4.2 million charge for the settlement of the Coeur d'Alene Basin litigation.
2001 Highlights
* Produced 10.9 million ounces of silver at record low total cash costs of $3.93 per ounce compared to production of 11.7 million ounces of silver in 2000 at a total cash cost of $4.09 per ounce.
* Ongoing restructuring programs reduced the Company's convertible debt by $59.1 million, a reduction of 29 percent that will significantly reduce future interest payments.
* Prepared the 100%-owned Cerro Bayo high-grade gold and silver mine in Chile for production, which is expected to begin in May, as scheduled.
* Commenced a final feasibility study at the Company's 100%-owned San Bartolome silver property in Bolivia with the assistance of a $760,000 grant from the U.S. Trade and Development Agency. Secured additional mining and exploration rights that increased silver resources and could significantly improve project economics.
* Introduced trackless mining in selected areas of the Galena mine at Coeur Silver Valley that will improve productivity and significantly reduce future cash costs.
* Concluded a final settlement agreement which terminated the Company's involvement and obligations with respect to litigation for the cleanup of the Coeur d'Alene Basin.
* Received the industry's top safety honor, the Sentinals of Safety Award for surface mining operations at the Company's Rochester mine near Lovelock, Nev.
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