Coeur d'Alene Mines Corporation (NYSE: CDE) (TSX: CDM) reported strong operating cash flow 1 of $338.7 million from metal sales of $895.5 million for the full year 2012. Production totaled 18.0 million silver ounces and a record 226,486 gold ounces. Coeur expects to generate robust operating cash flow from anticipated 2013 production of 18.0 - 19.5 million ounces of silver and a record 250,000 - 265,000 ounces of gold.
Coeur repurchased nearly $20.0 million, or 0.9 million common shares, during the second half of 2012. Coeur also acquired the remaining interest of the Joaquin silver-gold project in Argentina in December 2012 for $60 million of cash and stock.
- Silver production was 18.0 million ounces, a 6% decrease from 2011.
- Gold production was a record 226,486 ounces, up 3% from 2011.
- Average realized prices were $30.92 per silver ounce and $1,665 per gold ounce, down 12% for silver and up 7% for gold from 2011.
- Net metal sales totaled $895.5 million, down 12% from 2011.
- Operating cash flow 1 totaled $338.7 million, down 25% from 2011. Including changes in working capital, net cash from operating activities was $271.6 million compared with $416.2 million in 2011.
- Consolidated cash operating costs 1 were $7.57 per silver ounce compared with $6.31 per silver ounce in 2011.
- Kensington's cash operating costs 1 per gold ounce were $1,358 compared with $1,088 in 2011 and ended 2012 at $950 per ounce during December.
- Adjusted earnings 1 were $121.5 million or $1.36 per share, compared with $232.5 million, or $2.60 per share, in 2011. Net income for 2012, which included a non-cash fair market value adjustment of negative $23.5 million, was $48.7 million, or $0.54 per share, compared with net income of $93.5 million, or $1.05 per share, in 2011.
- Cash, cash equivalents and short-term investments were $126.4 million at December 31, 2012, compared with $195.3 million a year ago.
- Coeur expects to produce 18.0 - 19.5 million ounces of silver and 250,000 - 265,000 ounces of gold in 2013.
- Cash operating costs 1 per ounce are estimated at $8.00 - $9.00 per silver ounce, assuming a gold by-product price of $1,650 per ounce. Kensington's cash operating costs 1 are estimated at $900 - $950 per gold ounce.
- Coeur expects to invest $40.0 million in exploration with the goal of increasing estimated mineral reserves and resources at year-end 2013.
EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.
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