S&P Places Coeur D'Alene Mines On CreditWatch

NEW YORK (AP) — Standard & Poor's Ratings Services on Monday placed Coeur d'Alene Mines Corp. on CreditWatch with positive implications, but warned that the mining company may require more funding for its capital spending plan.

The ratings, including Standard & Poor's "CCC" corporate credit rating, reflects its assessment that near-term operating cash flow generation will likely increase due to higher metal volumes and continued favorable gold and silver prices, it said.

The Coeur D'Alene, Idaho, company's construction of its Palmarejo mine and start of operation in the first quarter of 2009 are increasing volumes.

"Still, the company's liquidity position remains somewhat thin because its near-term capital spending plan of approximately $70 million will likely necessitate additional external funding," Standard & Poor's said.

The ratings agency said it expects Coeur d'Alene will seek to raise capital through sale leasebacks, gold leases, and other sources over the next several months.

Mitchell Krebs, Coeur d'Alene's chief financial officer, said the company believes its liquidity is adequate going forward. He said the company ended March with over $38 million in cash and expects to generate $100 million in operating cash flow in 2009.