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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (17508)	8/18/2002 11:05:53 PM
From: jimsioi	Respond to of 36161

CDE a speculative play for those with no fear of debt. Happened to take a look at CDE's financials...guess they've been out for a while... biz.yahoo.com While management tries to put a good spin on 'em, I fail to see it. Cash flow during the last quarter was 4.4 million in the red or about 6.5 cents per share. Increasing mine production as the year progresses will help stem the tide of red ink, but the short fall represents 25% of revenues...As a money making machine, CDE currently is not...as a speculative quick play on a spike in silver....well, be my guest. Take a look at the balance sheet.... more IOUs there than I'd care to see. Question ought to be, when is each due? Company had to issue 13+% debt to pay off 6% debt....what's that tell you. (From the report; "In June 2002, Coeur secured $16.0 million of financing by issuing Series II 13.375% Convertible Senior Subordinated Notes. The proceeds were used to repay the remaining 6% Convertible Subordinated Debentures that matured on June 10, 2002 as well as for general working capital purposes.") Company has about $2.05 per share in debt. Down only one million from year end '01 Realized price in the last quarter for Silver was $4.82... They talk about "positive cash flow" for the quarter....sorry, not from operations. Net loss plus loss on retirement of debt (assumed to be non cash) plus depreciation was a negative $4.4 million. Their statement's positive cash flow comes from interest expense on Convertible Senior Subordinated Notes being paid with common stock......dilute yourself to prosperity. Non of this means that CDE won't rise with gold and silver prices, as by virtue of its price and relatively small float it's a certain play thing of the speculative momentum crowd, but it also suggests the company my fall in to oblivion if metal prices fall and stay down.