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Coeur Reports Strong Operating Cash Flow And Record Gold Production In 2012; Expected Production Growth In 2013 Driven By Rochester Expansion

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.

2012 Highlights

  • 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.

2013 Outlook

  • 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.
     

1.

   

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.

 

Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, “Coeur has grown considerably over the past five years and is now one of the world's largest silver producers. Today, we have a new management team, a stronger balance sheet and a disciplined but aggressive approach to moving the Company forward which we believe will lead to operational consistency, substantial growth and long-term value creation for our shareholders.

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