Coeur Reports Further $25 Million Reduction in Debt; Represents 31% Decrease In Past Six Weeks
January 28, 2003: 5:00 p.m. EST
COEUR D`ALENE, Idaho (BUSINESS WIRE) - Coeur d'Alene Mines Corporation (NYSE:CDE) today announced continued significant reductions in its outstanding long-term convertible debt.
Coeur's remaining convertible indebtedness now stands at $54.5 million, consisting of $10.6 million of 13.375% Senior Convertible Notes due December 2003, $32.3 million of 6.375% Convertible Debentures due January 2004, and $11.7 million of 7.25% Convertible Debentures due October 2005. This remaining indebtedness represents nearly a 50% reduction since the end of the third quarter 2002. Coeur began 2002 with $145.5 million of indebtedness. This remaining balance represents approximately 20% of Coeur's current total market capitalization.
Dennis E. Wheeler, Coeur's Chairman and Chief Executive Officer, remarked, "Coeur is now nearing completion of its debt reduction program. Our strengthened balance sheet is now providing us with the flexibility to aggressively pursue internal and external growth opportunities to create further value for shareholders. Combined with higher metal prices, continued success at our new low-cost South American operations, and a growing cash balance, we believe that Coeur is poised for an excellent 2003."
Over the past six weeks, Coeur exchanged 13.8 million shares of common stock for $22.9 million principal amount of its 6.375% Convertible Debentures due January 2004 in several privately negotiated transactions. This decline represents a 51% decrease from the $65.5 million of outstanding 6.375% Convertible Debentures at the end of the third quarter of 2002. In addition, the Company has seen $2.1 million of its 13.375% Senior Convertible Notes voluntarily convert into common equity in 2003 based on the security's existing terms. Because these Convertible Notes have a conversion price of $1.35 per share, representing a 27% discount to Coeur's current share price, the Company believes that holders of the remaining balance of $10.6 million will likely voluntarily convert into common stock by the end of the year.
After taking these exchanges and conversions into account, Coeur now has approximately 134 million shares outstanding.
Coeur d'Alene Mines Corporation is the world's largest primary 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 Statement
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. |
