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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

About Coeur

Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow in continued robust metals markets. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also owns a non-operating interest in a low-cost mine in Australia, and conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia.

           

Table 5: Operating Statistics from Continuing Operations - (Unaudited):

 
2012 2011 2010
PRIMARY SILVER OPERATIONS:
Palmarejo (1)
Tons milled 2,114,366 1,723,056 1,835,408
Ore grade/Ag oz 4.70 6.87 4.60
Ore grade/Au oz 0.05 0.08 0.06
Recovery/Ag oz (%) (1) 83.0 76.4 69.8
Recovery/Au oz (%) (1) 94.4 92.2 91.1
Silver production ounces (3) 8,236,013 9,041,488 5,887,576
Gold production ounces (3) 106,038 125,071 102,440
Cash operating costs/oz (4) $ 1.33 $ (0.97 ) $ 4.10
Cash cost/oz (4) $ 1.33 $ (0.97 ) $ 4.10
Total production cost/oz $ 19.26 $ 16.80 $ 19.66
San Bartolomé
Tons milled 1,477,271 1,567,269 1,504,779
Ore grade/Ag oz 4.49 5.38 5.03
Recovery/Ag oz (%) 89.5 88.9 88.6
Silver production ounces (3) 5,930,394 7,501,367 6,708,775
Cash operating costs/oz (4) $ 11.76 $ 9.10 $ 7.87
Cash cost/oz (4) $ 12.95 $ 10.64 $ 8.67
Total production cost/oz $ 15.81 $ 13.75 $ 11.72
Rochester (2)
Tons Mined 11,710,795 2,028,889
Ore grade/Ag oz 0.55 0.47
Ore grade/Au oz 0.0047 0.0047
Recovery/Ag oz (%) (2) 57.0 165.1
Recovery/Au oz (%) (2) 89.9 75.6
Silver production ounces (3) 2,801,405 1,392,433 2,023,423
Gold production ounces (3) 38,066 6,276 9,641
Cash operating costs/oz (4) 9.62 22.97 2.93
Cash cost/oz (4) 11.65 24.82 3.78
Total production cost/oz 14.05 27.21 4.82
 
     

1.

   

Recoveries are affected by timing inherent in the leaching process.

2.

Recoveries at Rochester are affected by residual leaching on Stage IV pad and timing differences inherent in the heap leaching process.

 
           
2012 2011 2010
Martha (5)
Tons milled 100,548 101,167 56,401
Ore grade/Ag oz 4.01 6.29 31.63
Ore grade/Au oz 0.0035 0.0082 0.04
Recovery/Ag oz (%) 80.3 83.2 88.3
Recovery/Au oz (%) 72.2 74.0 84.1
Silver production ounces 323,386 529,602 1,575,827
Gold production ounces 257 615 1,838
Cash operating costs/oz (4) $ 49.77 $ 32.79 $ 13.16
Cash cost/oz (4) $ 50.71 $ 34.08 $ 14.14
Total production cost/oz $ 55.03 $ 36.19 $ 20.02
Endeavor
Tons milled 791,209 743,936 653,550
Ore grade/Ag oz 2.26 1.83 1.96
Recovery/Ag oz (%) 41.0 45.0 44.3
Silver production ounces 734,008 613,361 566,134
Cash operating costs/oz (4) $ 17.27 $ 18.87 $ 10.15
Cash cost/oz (4) $ 17.27 $ 18.87 $ 10.15
Total production cost/oz $ 23.52 $ 24.00 $ 13.66
GOLD OPERATIONS:
Kensington
Tons milled 394,780 415,340 174,028
Ore grade/Au oz 0.22 0.23 0.28
Recovery/Au oz (%) 95.6 92.7 89.9
Gold production ounces (3) 82,125 88,420 43,143
Cash operating costs/oz (4) $ 1,358 $ 1,088 $ 989
Cash cost/oz (4) $ 1,358 $ 1,088 $ 989
Total production cost/oz $ 1,865 $ 1,494 $ 1,394
CONSOLIDATED PRODUCTION TOTALS
Silver ounces (3) 18,025,206 19,078,251 16,761,735
Gold ounces (3) 226,486 220,382 157,062
Cash operating costs/oz (4) $ 7.57 $ 6.31 $ 6.53
Cash cost per oz/silver (4) $ 8.30 $ 7.09 $ 7.05
Total production cost/oz $ 18.14 $ 17.14 $ 14.52
CONSOLIDATED SALES TOTALS
Silver ounces sold (3) 17,965,383 19,057,503 17,221,335
Gold ounces sold (3) 213,185 238,551 130,142
Realized price per silver ounce $ 30.92 $ 35.15 $ 20.99
Realized price per gold ounce $ 1,665 $ 1,558 $ 1,237
 

(1)

 

Palmarejo commenced commercial production on April 20, 2009. Mine statistics do not represent normal operating results

(2)

The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the metallurgical recovery to be approximately 61% for silver and 92% for gold. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates — Ore on Leach Pad.

(3)

Current production ounces and recoveries reflect final metal settlements of previously reported production ounces.

(4)

See "Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs."

(5)

The Martha mine ceased active mining operations in September of 2012.

 
       

Table 6:

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - (Unaudited)
 

December 31, 2012

December 31, 2011

ASSETS

(In thousands, except share data)

CURRENT ASSETS
Cash and cash equivalents $ 125,440 $ 175,012
Short term investments 999 20,254
Receivables 62,438 83,497
Ore on leach pad 22,991 27,252
Metal and other inventory 170,670 132,781
Deferred tax assets 2,458 1,869
Restricted assets 396 60
Prepaid expenses and other 20,790   24,218  
406,182 464,943
NON-CURRENT ASSETS
Property, plant and equipment, net 683,860 687,676
Mining properties, net 1,991,951 2,001,027
Ore on leach pad, non-current portion 21,356 6,679
Restricted assets 24,970 28,911
Marketable securities 27,065 19,844
Receivables, non-current portion 48,767 40,314
Debt issuance costs, net 3,713 1,889
Deferred tax assets 955 263
Other 12,582   12,895  
TOTAL ASSETS $ 3,221,401   $ 3,264,441  
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $ 57,482 $ 78,590
Accrued liabilities and other 10,002 13,126
Accrued income taxes 27,108 47,803
Accrued payroll and related benefits 21,306 16,240
Accrued interest payable 478 559
Current portion of debt and capital leases 55,983 32,602
Current portion of royalty obligation 65,104 61,721
Current portion of reclamation and mine closure 668 1,387
Deferred tax liabilities 121   53  
238,252 252,081
NON-CURRENT LIABILITIES
Long-term debt and capital leases 3,460 115,861
Non-current portion of royalty obligation 141,879 169,788
Reclamation and mine closure 34,670 32,371
Deferred tax liabilities 577,488 527,573
Other long-term liabilities 27,372   30,046  
784,869 875,639
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 150,000,000 shares, issued and outstanding 90,342,338 at December 31, 2012 and 89,655,124 at December 31, 2011 903 897
Additional paid-in capital 2,601,254 2,585,632
Accumulated deficit (396,156 ) (444,833 )
Accumulated other comprehensive loss (7,721 ) (4,975 )
2,198,280   2,136,721  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 3,221,401   $ 3,264,441  
 
   

Table 7:

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - (Unaudited)
 
Years Ended December 31,
2012     2011     2010
(In thousands, except share data)
Sales of metal $ 895,492     $ 1,021,200     $ 515,457
Production costs applicable to sales (456,757 ) (419,956 ) (257,636 )
Depreciation, depletion and amortization (218,857 )     (224,500 )     (141,619 )
Gross profit 219,878 376,744 116,202
COSTS AND EXPENSES
Administrative and general 32,977 31,379 24,176
Exploration 26,270 19,128 14,249
Loss on impairment 5,825
Pre-development, care, maintenance and other 1,261       19,441       2,877  
Total cost and expenses 66,333       69,948       41,302  
OPERATING INCOME 153,545 306,796 74,900
OTHER INCOME AND EXPENSE, NET
Loss on debt extinguishments (1,036 ) (5,526 ) (20,300 )
Fair value adjustments, net (23,487 ) (52,050 ) (117,094 )
Interest income and other, net 14,436 (6,610 ) 771
Interest expense, net of capitalized interest (26,169 )     (34,774 )     (30,942 )
Total other income and expense, net (36,256 )     (98,960 )     (167,565 )
Income (loss) from continuing operations before income taxes 117,289 207,836 (92,665 )
Income tax (provision) benefit (68,612 )     (114,337 )     9,481  
Income (loss) from continuing operations $ 48,677 $ 93,499 $ (83,184 )
Loss from discontinued operations (6,029 )
Loss on sale of net assets of discontinued operations             (2,095 )
NET INCOME (LOSS) $ 48,677       $ 93,499       $ (91,308 )
BASIC AND DILUTED INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing operations $ 0.54 $ 1.05 $ (0.95 )
Net income (loss) from discontinued operations             (0.10 )
Net income (loss) 0.54       1.05       (1.05 )
Diluted income (loss) per share:
Net income (loss) from continuing operations $ 0.54 $ 1.04 $ (0.95 )
Net income (loss) from discontinued operations $       $       $ (0.10 )
Net income (loss) $ 0.54       $ 1.04       $ (1.05 )
Weighted average number of shares of common stock
Basic 89,437 89,383 87,185
Diluted 89,603 89,725 87,185
 
 

Table 8:

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - (Unaudited)
 
Years ended December 31,
2012     2011     2010
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 48,677 $ 93,499 $ (91,308 )
Add (deduct) non-cash items
Depreciation, depletion and amortization 218,857 224,500 143,813
Accretion of discount on debt and other assets, net 3,431 4,041 3,374
Accretion of royalty obligation 18,294 21,550 19,018
Deferred income taxes 16,163 51,792 (37,628 )
Loss on debt extinguishment 1,036 5,526 20,300
Fair value adjustments, net 18,421 46,450 115,458
Loss (gain) on foreign currency transactions (1,381 ) 380 3,867
Share-based compensation 8,010 8,122 7,217
Loss (gain) on sale of assets 1,101 (1,145 ) (25 )
Loss on impairment 5,825
Loss (gain) on asset retirement 279 (335 ) (167 )
Changes in operating assets and liabilities:
Receivables and other current assets 9,756 (21,950 ) (6,228 )
Prepaid expenses and other 2,489 (8,839 ) 5,871
Inventories (48,305 ) (30,408 ) (47,887 )
Accounts payable and accrued liabilities (31,019 ) 22,990   29,888  
CASH PROVIDED BY OPERATING ACTIVITIES 271,634   416,173   165,563  
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (115,641 ) (119,988 ) (155,994 )
Acquisition of Joaquin mineral interests (29,297 )
Purchase of short term investments and marketable securities (12,959 ) (49,501 ) (5,872 )
Proceeds from sales and maturities of short term investments, marketable securities 21,695 6,246 24,244
Other 3,087   2,282   5,927  
CASH USED IN INVESTING ACTIVITIES (133,115 ) (160,961 ) (131,695 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes and bank borrowings 27,500 176,166
Payments on long-term debt, capital leases, and associated costs (97,170 ) (85,519 ) (106,827 )
Payments on gold production royalty (74,734 ) (73,191 ) (43,125 )
Proceeds from gold lease facility 18,445
Payments on gold lease facility (13,800 ) (37,977 )
Proceeds from sale-leaseback transactions 4,853
Reductions of (additions to) restricted assets associated with the Kensington Term Facility 4,645 (1,326 ) (2,353 )
Share repurchases (19,971 )
Other (861 ) 18   286  
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (188,091 ) (146,318 ) 9,468  
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (49,572 ) 108,894 43,336
Cash and cash equivalents at beginning of period 175,012   66,118   22,782  
Cash and cash equivalents at end of period $ 125,440   $ 175,012   $ 66,118  
 
                   

Table 9:

Operating Cash Flow Reconciliation - (Unaudited)
 
(in thousands) 4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
 
Cash provided by operating activities $ 61,694 $ 79,735 $ 113,203 $ 17,002 $ 87,412
Changes in operating assets and liabilities:
Receivables and other current assets (8,040 ) 5,648 (10,319 ) 2,956 (8,904 )
Prepaid expenses and other (3,054 ) 2,481 2,857 (4,774 ) 8,839
Inventories 12,919 13,762 (3,097 ) 24,722 17,574
Accounts payable and accrued liabilities     15,706       (24,341 )     (14,276 )     53,929       (7,452 )
Operating Cash Flow     $ 79,225       $ 77,285       $ 88,368       $ 93,835       $ 97,469  
 
       
(in thousands) 2012     2011
 
Cash provided by operating activities $ 271,634 $ 416,173
Changes in operating assets and liabilities:
Receivables and other current assets (9,756 ) 21,950
Prepaid expenses and other (2,489 ) 8,839
Inventories 48,305 30,408
Accounts payable and accrued liabilities     31,019       (22,990 )
Operating Cash Flow     $ 338,713       $ 454,380  
 
                   

Table 10:

EBITDA Reconciliation - (Unaudited)
 
(in thousands) 4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Net income (loss) $ 37,550 $ (15,821 ) $ 22,973 $ 3,975 $ 11,364
Income tax provision 11,839 17,475 23,862 15,436 52,390
Interest expense, net of capitalized interest 4,591 7,351 7,557 6,670 8,222
Interest and other income 14 (12,664 ) 3,221 (5,007 ) 4,697
Fair value adjustments, net (21,235 ) 37,648 (16,039 ) 23,113 (19,035 )
Loss on debt extinguishments 1,036 3,886
Depreciation and depletion     52,397       52,844       61,024       52,592       58,166  
EBITDA     $ 86,192       $ 86,833       $ 102,598       $ 96,779       $ 119,690  
 
(in thousands)     2012     2011
Net income (loss) $ 48,677     $ 93,499
Income tax provision 68,612 114,337
Interest expense, net of capitalized interest 26,169 34,774
Interest and other income (loss), net (14,436 ) 6,610
Fair value adjustments, net 23,487 52,050
Loss on debt extinguishments 1,036 5,526
Depreciation, depletion, and amortization     218,857       224,500
EBITDA     $ 372,402       $ 531,296
                   

Table 11:

Adjusted Earnings Reconciliation - (Unaudited)
 
(in thousands) 4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Net income (loss) $ 37,550 $ (15,821 ) $ 22,973 $ 3,975 $ 11,364
Share based compensation 1,476 3,364 1,033 2,137 2,861
Deferred income tax provision 3,738 (4,942 ) 9,690 7,677 38,614
Interest expense, accretion of royalty obligation 3,946 4,276 5,492 4,580 5,523
Fair value adjustments, net (21,235 ) 37,648 (16,039 ) 23,113 (19,035 )
Loss on impairment (281 ) 1,293 4,813
Gain on debt extinguishments     1,036                         3,886  
Adjusted Earnings     $ 26,230       $ 25,818       $ 27,962       $ 41,482       $ 43,213  
 
       
(in thousands) 2012     2011
Net income (loss) $ 48,677 $ 93,499
Share based compensation 8,010 8,122
Deferred income tax provision 16,163 51,792
Interest expense, accretion of royalty obligation 18,294 21,550
Fair value adjustments, net 23,487 52,050
Loss on impairment 5,825
Loss on debt extinguishments     1,036       5,526
Adjusted Earnings     $ 121,492       $ 232,539
 
                       

Table 12:

Results of Operations by Mine - Palmarejo - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $442.1 $79.4 $102.6 $136.4 $123.7 $134.3
Production costs $197.5 $40.4 $48.7 $62.5 $45.9 $47.0
EBITDA $237.0 $36.6 $51.6 $72.3 $76.5 $83.7
Operating income $90.4 $4.5 $17.7 $29.5 $38.8 $38.7
Operating cash flow $233.1 $33.2 $54.9 $63.6 $81.4 $77.4
Capital expenditures $38.5 $8.8 $11.3 $11.2 $7.2 $12.1
Gross profit $98.0 $6.8 $20.0 $31.1 $40.1 $44.7
Gross margin 22.2% 8.7% 19.5% 22.8% 32.4% 33.3%
 
2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Underground Operations:
Tons mined 604,522 139,925 143,747 162,820 158,030 191,966
Average silver grade (oz/t) 6.99 4.70 6.13 8.91 7.82 8.04
Average gold grade (oz/t) 0.11 0.08 0.09 0.14 0.11 0.11
Surface Operations:
Tons mined 1,559,245 465,498 424,380 321,758 347,609 321,881
Average silver grade (oz/t) 3.58 2.62 2.79 4.14 5.32 5.88
Average gold grade (oz/t) 0.03 0.02 0.03 0.04 0.04 0.05
Processing:
Total tons milled 2,114,366 563,123 532,775 489,924 528,543 505,619
Average recovery rate – Ag 83.0% 84.2% 90.0% 84.2% 76.8% 77.9%
Average recovery rate – Au 94.4% 91.4% 102.5% 92.0% 93.3% 92.4%
Silver production - oz (000's) 8,236 1,555 1,833 2,365 2,483 2,690
Gold production - oz 106,038 19,998 23,702 31,258 31,081 34,108
Cash operating costs/Ag Oz $1.33 $7.55 $3.75 $(0.85) $(2.27) $(2.13)
 
           

Table 13:

Co-Product Cash Cost Per Ounce for Palmarejo - (Unaudited)
 
2012     2011     2010
Cash operating cost per ounce:
Silver $ 13.45 $ 12.82 $ 19.90
Gold $ 742 $ 581 $ 328
Total cash cost per ounce:
Silver $ 13.45 $ 12.82 $ 19.90
Gold $ 742 $ 581 $ 328
 
                       

Table 14:

Reconciliation of EBITDA for Palmarejo - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $ 442.1 $ 79.4 $ 102.6 $ 136.4 $ 123.7 $ 134.3
Production costs applicable to sales $ (197.5 ) $ (40.4 ) $ (48.7 ) $ (62.5 ) (45.9 ) (47.0 )
Administrative and general $ $ $ $
Exploration $ (7.6 ) $ (2.4 ) $ (2.3 ) $ (1.6 ) (1.3 ) (2.8 )
Pre-development care and maintenance and other     $       $       $       $             (0.8 )
EBITDA     $ 237.0       $ 36.6       $ 51.6       $ 72.3       $ 76.5       $ 83.7  
 
                       

Table 15:

Operating Cash Flow for Palmarejo - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012    

1Q 2012

   

4Q 2011

Cash provided by operating activities $ 237.0 $ 22.9 $ 58.2 $ 90.5 $ 65.3 $ 70.9
Changes in operating assets and liabilities:

 

Receivables and other current assets $ (12.5 ) $ (1.3 ) $ (4.1 ) $ (12.5 )

$

5.4

$

5.7

Prepaid expenses and other $ (3.2 ) $ (1.0 ) $ (0.8 ) $ 0.5

$

(1.9

)

$

(3.2

)
Inventories $ (0.8 ) $ 3.6 $ 2.5 $ (11.5 )

$

4.6

$

9.9

Accounts payable and accrued liabilities     $ 12.6       $ 9.0       $ (0.9 )     $ (3.4 )    

$

8.0

     

$

(5.9

)
Operating Cash Flow     $ 233.1       $ 33.2       $ 54.9       $ 63.6       $ 81.4       $ 77.4  
 
                       

Table 16:

Results of Operations by Mine - San Bartolomé - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $178.0 $37.0 $46.2 $53.4 $41.4 $62.8
Production costs $71.4 $15.1 $19.9 $22.8 $13.6 $21.4
EBITDA $106.3 $21.9 $26.2 $30.5 $27.7 $41.2
Operating income $89.6 $17.5 $22.0 $26.6 $23.5 $34.9
Operating cash flow $72.4 $17.4 $11.2 $23.0 $20.8 $28.7
Capital expenditures $25.7 $3.3 $4.4 $7.8 $10.2 $6.5
Gross profit $89.7 $17.6 $22.1 $26.5 $23.5 $35.3
Gross margin 50.5% 47.7% 47.8% 49.6% 56.8% 56.2%
 
2012     4Q 2012     3Q 2012     1Q 2012     1Q 2012     4Q 2011
Tons milled 1,477,271 363,813 344,349 391,005 378,104 371,983
Average silver grade (oz/t) 4.5 4.2 4.9 4.3 4.6 5.4
Average recovery rate 89.5% 88% 90.3% 88.3% 91.2% 90.5%
Silver production (000's) 5,930 1,343 1,526 1,470 1,591 1,997
Cash operating costs/Ag Oz $11.76 $13.97 $12.13 $11.05 $10.21 $9.18
 
                       

Table 17:

Reconciliation of EBITDA for San Bartolomé - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $ 178.0 $ 37.1 $ 46.2 $ 53.4 $ 41.4 $ 62.8
Production costs applicable to sales (71.4 ) (15.1 ) (19.9 ) (22.8 ) (13.6 ) (21.4 )
Administrative and general
Exploration (0.3 ) (0.1 ) (0.1 ) (0.1 ) (0.1 )
Pre-development care and maintenance and other                                   (0.2 )
EBITDA     $ 106.3       $ 21.9       $ 26.2       $ 30.5       $ 27.7       $ 41.2  
 
                       

Table 18:

Operating Cash Flow for San Bartolomé - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Cash provided by (used in) operating activities $ 33.0 $ 9.5 $ 19.8 $ 31.0 $ (27.4 ) $ 22.3
Changes in operating assets and liabilities:
Receivables and other current assets $ 5.6 $ (3.0 ) $ 7.1 $ (0.6 )

$

2.2

$

0.2

Prepaid expenses and other $ 0.9 $ (1.4 ) $ 0.8 $ 4.4

$

(2.8

)

$

4.6

Inventories $ 16.0 $ 9.6 $ 5.0 $ (3.4 )

$

4.7

$

2.9

Accounts payable and accrued liabilities     $ 16.9       $ 2.7       $ (21.5 )     $ (8.4 )    

$

44.1

     

$

(1.3

)
Operating Cash Flow     $ 72.4       $ 17.4       $ 11.2       $ 23.0       $ 20.8       $ 28.7  
 
                       

Table 19:

Results of Operations by Mine - Kensington - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $111.0 $43.0 $36.5 $21.1 $10.4 $32.9
Production costs $87.1 $27.0 $26.9 $16.1 $17.1 $31.7
EBITDA $20.6 $14.7 $8.1 $4.7 $(6.9) $0.5
Operating income/(loss) $(21.1) $0.9 $(3.5) $(5.0) $(13.6) $(6.6)
Operating cash flow $14.6 $14.5 $7.3 $0.6 $(7.8) $(4.1)
Capital expenditures $37.0 $7.8 $9.0 $9.3 $10.9 $12.0
Gross profit/(loss) $(17.7) $2.2 $(1.9) $(4.7) $(13.3) $(5.7)
Gross margin (15.9)% 5.1% (5.2)% (22.3)% (127.9)% (17.3)%
 
2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Tons mined 395,843 140,626 113,770 84,632 56,815 68,831
Tons milled 394,780 129,622 123,428 97,794 43,936 71,700
Average gold grade (oz/t) 0.20 0.23 0.21 0.23 0.18 0.19
Average recovery rate 95.6% 96.9% 95.9% 94.2% 93.4% 96.5%
Gold production 82,125 28,718 24,391 21,572 7,444 13,299
Cash operating costs/Ag Oz $1,358 $1,065 $1,298 $1,348 $2,709 $1,807
 
                       

Table 20:

Reconciliation of EBITDA for Kensington - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $ 111.0 $ 43.0 $ 36.5 $ 21.1 $ 10.4 $ 32.9
Production costs applicable to sales (87.1 ) (27.0 ) (26.9 ) (16.1 ) (17.1 ) (31.7 )
Administrative and general
Exploration (3.2 ) (1.3 ) (1.5 ) (0.3 ) (0.2 ) (0.5 )
Pre-development care and maintenance and other     (0.1 )                             (0.2 )
EBITDA     $ 20.6       $ 14.7       $ 8.1       $ 4.7       $ (6.9 )     $ 0.5  
 
                       

Table 21:

Operating Cash Flow for Kensington - (Unaudited)
 
2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Cash provided by operating activities $ 10.1 $ 16.5 $ 5.0 $ (12.5 ) $ 1.1 $ 9.3
Changes in operating assets and liabilities:
Receivables and other current assets $ (6.0 ) $ (2.6 ) $ 2.3 $ 4.6

$

(10.3

)

$

(5.1

)
Prepaid expenses and other $ (1.3 ) $ (0.4 ) $ 0.5 $ (0.5 )

$

(1.0

)

$

0.5

Inventories $ 14.6 $ (0.3 ) $ 1.8 $ 9.9

$

3.3

$

(10.1

)
Accounts payable and accrued liabilities     $ (2.8 )     $ 1.3       $ (2.3 )     $ (0.9 )    

$

(0.9

)    

$

1.3

 
Operating Cash Flow     $ 14.6       $ 14.5       $ 7.3       $ 0.6       $ (7.8 )     $ (4.1 )
 
                       

Table 22:

Results of Operations by Mine - Rochester - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $132.4 $43.2 $36.2 $34.2 $18.8 $11.1
Production costs $74.3 $22.9 $21.0 $20.8 $9.6 $4.2
EBITDA $53.1 $21.4 $12.9 $11.6 $7.2 $3.2
Operating income $45.1 $19.2 $10.9 $9.5 $5.5 $4.6
Operating cash flow $53.5 $21.5 $13.0 $11.8 $7.2 $3.4
Capital expenditures $11.8 $1.5 $4.8 $2.9 $2.6 $7.7
Gross profit $50.1 $18.0 $13.2 $11.3 $7.6 $5.9
Gross margin 37.8% 41.7% 36.5% 33.0% 40.4% 53.2%
 
2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Tons mined 11,710,795 3,031,428 3,170,129 2,585,914 2,923,324 1,170,397
Average silver grade (oz/t) 0.55 0.51 0.52 0.63 0.55 0.54
Average gold grade (oz/t) 0.005 0.005 0.004 0.005 0.004 0.004
Silver production (000's) 2,801 828 819 713 441 373
Gold production 38,066 12,055 10,599 10,120 5,292 1,993
Cash operating costs/Ag Oz $9.62 $2.17 $9.58 $9.83 $23.35 $37.99
 
           

Table 23:

Co-Product Cash Cost Per Ounce for Rochester - (Unaudited)
 
2012     2011     2010
Cash operating cost per ounce:
Silver $ 19.20 $ 25.34 $ 4.20
Gold $ 962 $ 1,050 $ 952
Total cash cost per ounce:
Silver $ 20.40 $ 26.91 $ 4.61
Gold $ 1,023 $ 1,115 $ 1,045
 
                       

Table 24:

Reconciliation of EBITDA for Rochester - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $ 132.4 $ 43.2 $ 36.2 $ 34.2 $ 18.8 $ 11.1
Production costs applicable to sales (74.3 ) (22.9 ) (21.0 ) (20.8 ) (9.6 ) (4.2 )
Administrative and general
Exploration (3.6 ) (0.6 ) (1.2 ) (1.1 ) (0.7 ) (1.5 )
Pre-development care and maintenance and other     (1.4 )     1.7       (1.1 )     (0.7 )     (1.3 )     (2.2 )
EBITDA     $ 53.1       $ 21.4       $ 12.9       $ 11.6       $ 7.2       $ 3.2  
 
                       

Table 25:

Operating Cash Flow for Rochester - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Cash provided by (used in) operating activities $ 28.4 $ 18.2 $ 7.3 $ 10.1 $ (7.1 ) $ (11.4 )
Changes in operating assets and liabilities:
Receivables and other current assets $ 0.3 $ (0.6 ) $ 0.6 $ (0.1 )

$

0.3

$

(0.2

)
Prepaid expenses and other $ 0.9 $ 0.3 $ 0.2 $ (1.0 )

$

1.4

$

0.7

Inventories $ 22.5 $ 0.9 $ 6.5 $ 3.9

$

11.2

$

14.2

Accounts payable and accrued liabilities     $ 1.4       $ 2.7       $ (1.6 )     $ (1.1 )    

$

1.4

     

$

0.1

 
Operating Cash Flow     $ 53.5       $ 21.5       $ 13.0       $ 11.8       $ 7.2       $ 3.4  
 
                       

Table 26:

Results of Operations by Mine - Martha (1) - (Unaudited)

 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $13.2 $0.5 $4.9 $4.1 $3.6 $2.8
Production costs $17.7 $0.4 $6.5 $7.1 $3.7 $3.9
EBITDA $(21.1) $(2.7) $(4.2) $(10.6) $(3.7) $(3.3)
Operating loss $(21.8) $(2.0) $(4.2) $(11.3) $(4.3) $(3.0)
Operating cash flow $(16.8) $(2.8) $(3.4) $(5.5) $(5.1) $(5.0)
Capital expenditures $1.2 $— $— $0.5 $0.7 $1.4
Gross profit (loss) $(5.2) $0.7 $(1.5) $(3.7) $(0.7) $(1.7)
Gross margin (39.4)% 140.0% (32.7)% (90.2)% (19.4)% (60.7)%
 
2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Total tons milled 100,548 27,281 39,199 34,068 37,141
Average silver grade (oz/t) 4.00 4.17 3.52 4.43 4.65
Average gold grade (oz/t) 0.01
Average recovery rate – Ag 80.3% —% 81.5% 78.2% 81.4% 75.2%
Average recovery rate – Au 72.2% —% 82.6% 72.4% 64.6% 74.2%
Silver production (000's) 323 93 108 123 130
Cash operating costs/Ag Oz $49.77 $— $48.12 $55.07 $46.48 $33.75
 
     

1.

   

The Martha mine ceased active operations in September of 2012.

 
                       

Table 27:

Reconciliation of EBITDA for Martha - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $ 13.2 $ 0.5 $ 4.9 $ 4.1 $ 3.6 $ 2.8
Production costs applicable to sales (17.7 ) (0.4 ) (6.5 ) (7.1 ) (3.7 ) (3.9 )
Administrative and general
Exploration (8.7 ) (1.3 ) (1.2 ) (2.8 ) (3.4 ) (2.1 )
Pre-development care and maintenance and other     (7.9 )     (1.5 )     (1.4 )     (4.8 )     (0.2 )     (0.1 )
EBITDA     $ (21.1 )     $ (2.7 )     $ (4.2 )     $ (10.6 )     $ (3.7 )     $ (3.3 )
 
                       

Table 28:

Operating Cash Flow for Martha - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Cash provided by (used in) operating activities $ (16.6 ) $ (2.2 ) $ (3.9 ) $ (3.3 ) $ (7.1 ) $ (3.2 )
Changes in operating assets and liabilities:
Receivables and other current assets 1.3 (0.8 ) (0.9 ) (0.6 ) 3.5 (0.9 )
Prepaid expenses and other (0.1 ) (0.1 ) 0.1 (0.1 ) (0.3 )
Inventories (4.1 ) (0.5 ) (1.7 ) (2.3 ) 0.4 0.4
Accounts payable and accrued liabilities     2.7       0.7       3.2       0.6       (1.8 )     (1.0 )
Operating Cash Flow     $ (16.8 )     $ (2.8 )     $ (3.4 )     $ (5.5 )     $ (5.1 )     $ (5.0 )
 
                       

Table 29:

Results of Operations by Mine - Endeavor - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $18.8 $2.8 $4.1 $5.2 $6.7 $2.8
Production costs $8.8 $1.6 $2.0 $2.6 $2.7 $1.0
EBITDA $10.0 $1.3 $2.1 $2.6 $4.0 $1.8
Operating income $5.4 $0.8 $1.3 $1.1 $2.3 $1.1
Operating cash flow $10.0 $1.3 $1.7 $2.8 $4.2 $2.1
Capital expenditures $— $— $— $— $— $—
Gross profit $5.4 $0.8 $1.3 $1.1 $2.3 $1.1
Gross margin 28.7% 28.6% 31.7% 21.2% 34.3% 39.3%
 
2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Silver Production (000's) 734 105 140 240 248 111
Cash operating costs/Ag Oz $17.27 $19.92 $15.97 $17.50 $16.64 $14.74
 
                       

Table 30:

Reconciliation of EBITDA for Endeavor - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Sales of metal $ 18.8 $ 2.8 $ 4.1 $ 5.2 $ 6.7 $ 2.8
Production costs applicable to sales (8.8 ) (1.5 ) (2.0 ) (2.6 ) (2.7 ) (1.0 )
Administrative and general
Exploration
Pre-development care and maintenance and other                                    
EBITDA     $ 10.0       $ 1.3       $ 2.1       $ 2.6       $ 4.0       $ 1.8  
 
                       

Table 31:

Operating Cash Flow for Endeavor - (Unaudited)
 
in millions of US$ 2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011
Cash provided by operating activities $ 10.0 $ 1.6 $ 1.5 $ 3.6 $ 3.2 $ 2.1
Changes in operating assets and liabilities:
Receivables and other current assets 0.2 (0.3 ) 0.5 (1.7 ) 1.7 (1.2 )
Prepaid expenses and other
Inventories 0.2 (0.3 ) (0.3 ) 0.2 0.6 0.1
Accounts payable and accrued liabilities     (0.4 )     0.3             0.7       (1.3 )     1.1  
Operating Cash Flow     $ 10.0       $ 1.3       $ 1.7       $ 2.8       $ 4.2       $ 2.1  
 
                           

Table 32:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended December 31, 2012 - (Unaudited)
 
(In thousands except ounces and per ounce costs) Palmarejo

San Bartolomé

Kensington Rochester Martha (1) Endeavor Total
Total Cash Operating Cost (Non-U.S. GAAP) $ 11,732 $ 18,765 $ 30,588 $ 1,795 $ (16 ) $ 2,104 $ 64,968
Royalties 1,712 1,528 3,240
Production taxes       940       940  
Total Cash Costs (Non-U.S. GAAP) $ 11,732   $ 20,477   $ 30,588   $ 4,263   $ (16 ) $ 2,104   $ 69,148  
Add/Subtract:
Third party smelting costs (3,865 ) 16 (805 ) (4,654 )
By-product credit 34,314 20,682 54,996
Other adjustments 317 (387 ) (1,755 ) (1,825 )
Change in inventory (5,955 ) (4,980 ) 288 (265 ) 407 253 (10,252 )
Depreciation, depletion and amortization 32,058   4,258   13,809   2,302   (702 ) 457   52,182  
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 72,466   $ 19,368   $ 40,820   $ 25,227   $ (295 ) $ 2,009   $ 159,595  
Production of silver (ounces) 1,554,606 1,343,035 828,013 105,615 3,831,269
Cash operating cost per silver ounce $ 7.55 $ 13.97 $ $ 2.17 $ $ 19.92 $ 8.97
Cash costs per silver ounce $ 7.55 $ 15.25 $ $ 5.15 $ $ 19.92 $ 10.06
Production of gold (ounces) 28,718 28,718
Cash operating cost per gold ounce $ $ $ 1,065 $ $ $ $ 1,065
Cash cost per gold ounce $ $ $ 1,065 $ $ $ $ 1,065
 
                           

Table 33:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Twelve months ended December 31, 2012 - (Unaudited)
 
(In thousands except ounces and per ounce costs) Palmarejo

San Bartolomé

Kensington Rochester Martha (1) Endeavor Total
Total Cash Operating Cost (Non-U.S. GAAP) $ 10,958 $ 69,771 $ 111,499 $ 26,959 $ 16,094 $ 12,675 $ 247,956
Royalties 7,084 3,487 306 10,877
Production taxes       2,195       2,195  
Total Cash Costs (Non-U.S. GAAP) $ 10,958   $ 76,855   $ 111,499   $ 32,641   $ 16,400   $ 12,675   $ 261,028  
Add/Subtract:
Third party smelting costs (10,910 ) (3,943 ) (3,648 ) (18,501 )
By-product credit 176,237 63,440 422 240,099
Other adjustments 1,108 256 17 (1,355 ) 882 908
Change in inventory 9,175 (5,683 ) (13,517 ) (20,470 ) 3,922 (204 ) (26,777 )
Depreciation, depletion and amortization 146,557   16,707   41,645   8,065   515   4,591   218,080  
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 344,035   $ 88,135   $ 128,734   $ 82,321   $ 18,198   $ 13,414   $ 674,837  
Production of silver (ounces) 8,236,013 5,930,394 2,801,405 323,386 734,008 18,025,206
Cash operating cost per silver ounce $ 1.33 $ 11.76 $ $ 9.62 $ 49.77 $ 17.27 $ 7.57
Cash costs per silver ounce $ 1.33 $ 12.95 $ $ 11.65 $ 50.71 $ 17.27 $ 8.30
Production of gold (ounces) 82,125 82,125
Cash operating cost per gold ounce $ $ $ 1,358 $ $ $ $ 1,358
Cash cost per gold ounce $ $ $ 1,358 $ $ $ $ 1,358
 
                           

Table 34:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended December 31, 2011 - (Unaudited)
 
(In thousands except ounces and per ounce costs) Palmarejo

San Bartolomé

Kensington Rochester Martha (1) Endeavor Total
Total Cash Operating Cost (Non-U.S. GAAP) $ (5,730 ) $ 18,332 $ 24,035 $ 14,191 $ 4,386 $ 1,647 $ 56,861
Royalties 3,279 98 3,377
Production taxes       124       124  
Total Cash Costs (Non-U.S. GAAP) $ (5,730 ) $ 21,611   $ 24,035   $ 14,315   $ 4,484   $ 1,647   $ 60,362  
Add/Subtract:
Third party smelting costs (1,881 ) (516 ) (483 ) (2,880 )
By-product credit 57,501 3,344 242 61,087
Other adjustments 233 608 266 97 1,204
Change in inventory (5,054 ) (869 ) 9,407 (13,722 ) (296 ) (112 ) (10,646 )
Depreciation, depletion and amortization 42,646   6,021   7,016   1,152   475   750   58,060  
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 89,596   $ 27,371   $ 38,577   $ 5,355   $ 4,486   $ 1,802   $ 167,187  
Production of silver (ounces) 2,690,368 1,997,416 373,589 129,972 111,723 5,303,068
Cash operating cost per silver ounce $ (2.13 ) $ 9.18 $ $ 37.99 $ 33.75 $ 14.74 $ 6.19
Cash costs per silver ounce $ (2.13 ) $ 10.82 $ $ 38.32 $ 34.50 $ 14.74 $ 6.85
Production of gold (ounces) 13,299 13,299
Cash operating cost per gold ounce $ $ $ 1,807 $ $ $ $ 1,807
Cash cost per gold ounce $ $ $ 1,807 $ $ $ $ 1,807
                           

Table 35:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Twelve months ended December 31, 2011 - (Unaudited)
 
(In thousands except ounces and per ounce costs) Palmarejo

SanBartolomé

Kensington Rochester Martha Endeavor Total
Total Cash Operating Cost (Non-U.S. GAAP) $ (8,743 ) $ 68,277 $ 96,234 $ 31,978 $ 17,367 $ 11,573 $ 216,686
Royalties 11,561 2,177 685 14,423
Production taxes       409       409  
Total Cash Costs (Non-U.S. GAAP) $ (8,743 ) $ 79,838   $ 96,234   $ 34,564   $ 18,052   $ 11,573   $ 231,518  
Add/Subtract:
Third party smelting costs (11,003 ) (2,882 ) (2,872 ) (16,757 )
By-product credit 197,342 9,898 949 208,189
Other adjustments 1,441 906 19 522 559 3,447
Change in inventory (3,839 ) (1,065 ) 16,422 (16,727 ) (1,165 ) (67 ) (6,441 )
Depreciation, depletion and amortization 159,231   22,408   35,839   2,807   554   3,148   223,987  
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 345,432   $ 102,087   $ 137,511   $ 31,064   $ 16,067   $ 11,782   $ 643,943  
Production of silver (ounces) 9,041,488 7,501,367 1,392,433 529,602 613,361 19,078,251
Cash operating cost per silver ounce $ (0.97 ) $ 9.10 $ $ 22.97 $ 32.79 $ 18.87 $ 6.31
Cash costs per silver ounce $ (0.97 ) $ 10.64 $ $ 24.82 $ 34.08 $ 18.87 $ 7.09
Production of gold (ounces) 82,125 82,125
Cash operating cost per gold ounce $ $ $

1,088

$ $ $ $

1,088

Cash cost per gold ounce $ $ $

1,088

$ $ $ $

1,088

 
       

Table 36:

Co-Product Cash Cost Per Ounce for 2012 - (Unaudited)
 
Palmarejo Rochester
Total cash operating costs $ 187,195 $ 90,400
Total cash costs $ 187,195 $ 96,081
 
Revenue
Silver 59% 59%
Gold 41% 41%
 
Ounces produced
Silver 8,236,013 2,801,405
Gold 103,068 38,066
 
Total cash operating costs per ounce
Silver $ 13.45 $ 19.20
Gold $ 742 $ 962
 
Total cash costs per ounce
Silver $ 13.45 $ 20.40
Gold $ 742 $ 1,023
 
       

Table 37:

Co-Product Cash Cost Per Ounce for 2011 - (Unaudited)
 
Palmarejo Rochester
Total cash operating costs $ 188,599 $ 41,876
Total cash costs $ 188,599 $ 44,463
 
Revenue
Silver 61% 84%
Gold 39% 16%
 
Ounces produced
Silver 9,041,488 1,392,433
Gold 125,071 6,276
 
Total cash operating costs per ounce
Silver $ 12.82 $ 25.34
Gold $ 581 $ 1,050
 
Total cash costs per ounce
Silver $ 12.82 $ 26.91
Gold $ 581 $ 1,115
 
               

Table 38:

2012 Proven and Probable Reserves - (Unaudited)
 
SHORT TONS GRADE (Oz/Ton) OUNCES
YEAR END 2012     LOCATION           SILVER     GOLD SILVER     GOLD
PROVEN RESERVES        
Rochester Nevada, USA 56,304,000 0.54   0.004 30,501,000 230,000
Martha Argentina
San Bartolomé Bolivia 1,187,000 2.92 3,460,000
Kensington Alaska, USA 647,000 0.277 179,000
Endeavor Australia 2,258,000 4.32 9,757,000
Palmarejo Mexico 5,747,000 4.67 0.061 26,858,000 348,000
Joaquin     Argentina                              
Total           66,143,000                     70,577,000     757,000
PROBABLE RESERVES
Rochester Nevada, USA 23,619,000 0.61 0.003 14,396,000 78,000
Mina Martha Argentina
San Bartolomé Bolivia 41,699,000 2.53 105,628,000
Kensington Alaska, USA 4,020,000 0.208 837,000
Endeavor Australia 2,508,000 1.43 3,588,000
Palmarejo Mexico 7,105,000 3.69 0.045 26,251,000 317,000
Joaquin     Argentina                              
Total           78,951,0000                   149,863,000     1,231,000
PROVEN AND PROBABLE RESERVES
Rochester Nevada, USA 79,923,000 0.56 0.004 44,896,000 308,000
Martha Argentina
San Bartolomé Bolivia 42,886,000 2.54 109,088,000
Kensington Alaska, USA 4,667,000 0.218 1,016,000
Endeavor Australia 4,766,000 2.80 13,345,000
Palmarejo Mexico 12,852,000 4.13 0.052 53,110,000 665,000
Joaquin     Argentina                              
Total Proven and Probable           145,094,000                     220,439,000     1,988,000
 
               

Table 39:

2012 Measured and Indicated Resources (Excluding Proven and Probable Reserves) - (Unaudited)
 
SHORT TONS GRADE (Oz/Ton)   OUNCES
YEAR END 2012     LOCATION           SILVER     GOLD SILVER     GOLD
MEASURED RESOURCES        
Rochester Nevada, USA 135,558,000   0.47   0.004 63,921,000 498,000
Martha Argentina
San Bartolomé Bolivia
Kensington Alaska, USA 382,000 0.239 91,000
Endeavor Australia 10,639,000 1.98 21,088,000
Palmarejo Mexico 3,186,000 7.13 0.099 22,720,000 315,000
Joaquin     Argentina     5,942,000         4.58         0.003       27,191,000     19,000
Total           155,707,000                     134,920,000     924,000
INDICATED RESOURCES
Rochester Nevada, USA 128,724,000 0.44 0.003 56,795,000 367,000
Mina Martha Argentina 57,000 13.57 0.017 775,000 1,000
San Bartolomé Bolivia 20,040,000 2.27 45,463,000
Kensington Alaska, USA 2,224,000 0.196 435,000
Endeavor Australia 302,000 10.23 3,090,000
Palmarejo Mexico 20,526,000 1.12 0.032 23,021,000 649,000
Joaquin Argentina 11,398,000 3.33 0.004 37,980,000 42,000
Lejano     Argentina     1,233,000         2.42         0.008       2,983,000     10,000
Total           184,504,000                     170,108,000     1,504,000
MEASURED AND INDICATED RESOURCES
Rochester Nevada, USA 264,283,000 0.46 0.003 120,717,000 865,000
Martha Argentina 57,000 13.57 0.017 775,000 1,000
San Bartolomé Bolivia 20,040,000 2.27 45,463,000
Kensington Alaska, USA 2,606,000 0.202 526,000
Endeavor Australia 10,941,000 2.21 24,179,000
Palmarejo Mexico 23,712,000 1.93 0.041 45,741,000 964,000
Joaquin Argentina 17,340,000 3.76 0.004 65,171,000 61,000
Lejano     Argentina     1,233,000         2.42         0.008       2,983,000     10,000
Total Measured and Indicated           340,210,000                     305,028,000     2,427,000
 
               

Table 40:

2012 Inferred Resources - (Unaudited)
 
SHORT TONS GRADE (Oz/Ton) OUNCES
YEAR END 2012     LOCATION           SILVER     GOLD SILVER     GOLD
INFERRED RESOURCES        
Rochester Nevada, USA 45,643,000   0.60   0.003 27,201,000 123,000
Martha Argentina 204,000 4.75 0.005 969,000 1,000
San Bartolomé Bolivia 2,826,000 1.17 3,319,000
Kensington Alaska, USA 704,000 0.244 172,000
Endeavor Australia 3,527,000 1.09 3,836,000
Palmarejo Mexico 11,903,000 1.86 0.038 22,104,000 457,000
Joaquin Argentina 1,060,000 2.94 0.003 3,113,000 4,000
Lejano     Argentina     3,307,000         1.73         0.006       5,713,000     19,000
Total Inferred           69,174,000                     66,254,000     775,000
 

Notes to the above Mineral Reserves and Resources:

  1. Effective December 31, 2012.
  2. Metal prices used for mineral reserves were $27.50 per ounce of silver and $1,450 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34.00 per ounce of silver. Metal prices used for mineral resources were $33.00 per ounce of silver and $1,700 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34.00 per ounce of silver.
  3. Palmarejo mineral resources are the addition of Palmarejo, Guadalupe and La Patria (Measured, Indicated and Inferred).
  4. Mineral Resources are in addition to mineral reserves and have not demonstrated economic viability.
  5. Current mineral resources were inclusive of disputed and undisputed claims at Rochester. While the Company believes it holds a superior position in the ongoing claims dispute, the Company believes an adverse legal outcome would cause it to modify mineral resources.
  6. Rounding of tons and ounces, as required by reporting guidelines may result in apparent differences between tons, grade and contained metal content.
  7. For details on the estimation of mineral resources and reserves for each property, please refer to the relevant Technical Report on file at www.sedar.com.
             

Table 41:

2011 Proven and Probable Reserves - (Unaudited)
 
SHORT TONS GRADE (Oz/Ton)   OUNCES
YEAR END 2011     LOCATION         SILVER     GOLD SILVER     GOLD
PROVEN RESERVES        
Rochester Nevada, USA 31,532,000   0.59   0.006 18,681,000 179,000
Martha Argentina
San Bartolomé Bolivia 959,000 3.01 2,888,000
Kensington Alaska, USA 1,164,000 0.280 326,000
Endeavor Australia 2,635,000 1.39 3,674,000
Palmarejo Mexico

4,916,000

5.31 0.067 26,091,000 330,000
Joaquin (51%)     Argentina                            
Total           41,206,000                   51,334,000     835,000
PROBABLE RESERVES
Rochester Nevada, USA 15,747,000 0.69 0.004 10,892,000 68,000
Martha Argentina 53,000 12.79 0.011 671,000 1,000
San Bartolomé Bolivia 43,556,000 2.64 115,192,000
Kensington Alaska, USA 4,842,000 0.209 1,104,000
Endeavor Australia 2,998,000 2.50 7,501,000
Palmarejo Mexico 7,581,000 4.05 0.047 30,727,000 358,000
Joaquin (51%)     Argentina                            
Total           74,777,0000                   164,983,000     1,441,000
PROVEN AND PROBABLE RESERVES
Rochester Nevada, USA 47,280,000 0.63 0.005 29,573,000 247,000
Martha Argentina 53,000 12.79 0.011 671,000 1,000
San Bartolomé Bolivia 44,515,000 2.65 118,080,000
Kensington Alaska, USA 6,006,000 0.223 1,340,000
Endeavor Australia 5,633,000 1.98 11,175,000
Palmarejo Mexico 12,497,000 4.55 0.055 56,818,000 688,000
Joaquin (51%)     Argentina                            
Total Proven and Probable           115,983,000                   216,317,000     2,276,000
 
               

Table 42:

2011 Measured and Indicated Resources (Excluding Proven and Probable Reserves) - (Unaudited)
 
SHORT TONS GRADE (Oz/Ton) OUNCES
YEAR END 2011     LOCATION           SILVER     GOLD SILVER     GOLD
MEASURED RESOURCES        
Rochester Nevada, USA 131,085,000   0.46   0.004 60,586,000 501,000
Martha Argentina
San Bartolomé Bolivia
Kensington Alaska, USA 495,000 0.234 116,000
Endeavor Australia 10,924,000 2.67 29,149,000
Palmarejo Mexico 1,793,000 4.24 0.052 7,594,000 93,000
Joaquin (51%)     Argentina                              
Total           144,297,000                     97,329,000     710,000
INDICATED RESOURCES
Rochester Nevada, USA 120,387,000 0.43 0.003 51,762,000 366,000
Martha Argentina 35,000 12.15 0.011 427,000
San Bartolomé Bolivia 21,264,000 2.59 54,968,000
Kensington Alaska, USA 2,544,000 0.185 471,000
Endeavor Australia 124,000 0.01

2,000

Palmarejo Mexico 3,269,000 2.88 0.034 9,399,000 111,000
Joaquin (51%) Argentina 4,050,000 2.48 0.005 10,043,000 18,000
Lejano     Argentina                              
Total           151,672,000                     126,601,000     968,000
MEASURED AND INDICATED RESOURCES
Rochester Nevada, USA 251,472,000 0.45 0.003 112,349,000 867,000
Martha Argentina 35,000 12.15 0.011 427,000
San Bartolomé Bolivia 21,264,000 2.59 54,968,000
Kensington Alaska, USA 3,039,000 0.193 587,000
Endeavor Australia 11,047,000 2.64 29,151,000
Palmarejo Mexico 5,062,000 3.36 0.040 16,993,000 205,000
Joaquin (51%) Argentina 4,050,000 2.48 0.005 10,043,000 18,000
Lejano     Argentina                              
Total Measured and Indicated           295,969,000                     223,930,000     1,677,000
 
               

Table 43:

2011 Inferred Resources - (Unaudited)
 
SHORT TONS GRADE (Oz/Ton) OUNCES
YEAR END 2011     LOCATION           SILVER     GOLD SILVER     GOLD
INFERRED RESOURCES        
Rochester Nevada, USA 40,543,000   0.58   0.003 23,619,000 122,000
Martha Argentina 259,000 4.32 0.005 1,121,000 1,000
San Bartolomé Bolivia 3,385,000 1.07 3,617,000
Kensington Alaska, USA 731,000 0.232 170,000
Endeavor Australia 3,527,000 1.09 3,836,000
Palmarejo Mexico 11,653,000 2.40 0.052 27,928,000 612,000
Joaquin (51%) Argentina 7,755,000 3.15 0.003 24,456,000 21,000
Lejano     Argentina                              
Total           67,853,000                     84,576,000     926,000
 

In reference to the above 2011 reserves and resources tables, effective December 31, 2011, for details on the estimation of mineral resources and reserves for each property, please refer to the relevant Technical Report on file at www.sedar.com.



Stock quotes in this article: CDE, CDM 

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