Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC):
In the Conference Call Information, the time of Conference Call should read: 1 PM ET (sted 12 PM ET).
The corrected release reads:
COEUR REPORTS 2008 RESULTS AND 2009 OUTLOOK: RECORD YEAR-END RESERVES; NOTABLE INCREASE EXPECTED IN 2009 PRODUCTION AND CASH FLOW FROM TWO NEW SILVER MINES
Fourth Quarter Highlights:
- New San Bartolomé mine, the world’s largest pure silver mine, performed at design capacity, resulting in cash operating costs of $6.48 per ounce1.
- 28% increase in silver production to 4.0 million ounces.
- Cash operating costs of $5.60 per silver ounce.
- Net income of $4.3 million, or $0.01 per share.
- General and administrative costs declined 22%, reflecting the results of ongoing cost reductions.
2008 Highlights:
- 2008 silver production of 12.0 million ounces.
- Cash operating costs of $4.75 per silver ounce.
- Operating cash flow2 of $11.6 million.
- San Bartolomé commenced silver production in June.
- Record year-end reserve levels of 248 million ounces of silver and 2.3 million ounces of gold representing 15% and 54% increases, respectively.
2009 Outlook:
- 2009 silver production expected to jump 66% to approximately 20.0 million ounces while gold production projected to increase 85% to approximately 85,000 ounces.
- $4.25 per silver ounce projected cash operating costs.
- Cash, equivalents and short-term investments of approximately $100 million as of January 31, 2009.
- 2009 operating cash flow forecast to be approximately $100 million.
- Remaining companywide capital expenditures projected to be $65 million in 20093.
- Palmarejo (Mexico) to begin production in March as scheduled.
- San Bartolomé expected to produce 9 million ounces at average cash operating costs of $6.50 per silver ounce.
1 Non-GAAP measure; defined as operating costs less by-product credits (if any) divided by silver production; excludes royalties and taxes. |
2 Non-GAAP measure; defined as net income plus depreciation and depletion and plus/minus other non-cash items. |
3 From March 1st through December 31st. Excludes Kensington, which will be updated once the Company receives a decision from the U.S. Supreme Court. |
Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today announced that operations at its new Palmarejo silver and gold mine in Mexico are expected to begin in March and that its San Bartolomé silver mine in Bolivia is operating as planned as it enters it first full year of production.
“We look forward to the commencement of production at Palmarejo on schedule and on budget. To be in production only fourteen months after completing the acquisitions of Bolnisi Gold and Palmarejo Silver and Gold is a testament to the dedication and focus of our entire team,” Dennis E. Wheeler, Chairman, President and Chief Executive Officer, commented. “At San Bartolomé, operations are performing according to expectations. The fourth quarter of 2008 represented the turning point in San Bartolomé’s performance when design capacity was achieved. Production and costs have remained on-target since.”
“Our financial group successfully navigated frozen capital markets during the past few months to allow the Company to continue investing in its new, long-life mines. As a result of these efforts and the hard work of our project development team, Coeur will now be producing from two of the newest and largest silver mines in the world in a span of just nine months. The Company has been executing this growth strategy for the past three years. With the heavy investment now behind us, Coeur is now transitioning into a long-term phase of positive and significant cash flow generation,” Mr. Wheeler added.
Mr. Wheeler concluded by saying, “2008 also marked a year where Coeur took numerous steps to strengthen its organization and human capital across a variety of areas. The Company established an in-house technical services group based in Idaho that is providing all of our projects and operations with immediate support and expertise. In Bolivia, the addition of Humberto Rada as President of South America was a critical hire to oversee the Company’s important investment and activities in Bolivia. Operationally, Don Gray has now become the full-time Vice President and General Manager at San Bartolomé. Don and his team have done a terrific job getting the operation on-track and performing consistently. Don’s role has allowed Leon Hardy to transition back to his role as Vice President of North American Operations and in charge of the new Technical Services team. Finally, the Company’s finance group was bolstered by key additions during the year, which have provided solid value during this exciting time of transition for us.”
Update on Silver and Gold Markets
The past four months have seen a major resurgence in silver and gold market prices, driven by demand for safe haven investments in the midst of the current world economic and financial crisis. Year-to-date, silver prices have increased 29% while gold has risen approximately 9%. Holdings of gold and silver by silver and gold exchange-traded funds continue to increase and are currently at record levels.
On the supply side, the decline in the price of base metals (zinc, lead, copper) has resulted in the shutdown and curtailment of production at many base metals mines. These declines have also caused many base metal projects scheduled for development to be delayed. Because approximately 70% of global silver production is derived as a by-product of base metals mines, declining base metals production is expected to reduce global silver supply.
Fortified Cash Position Provides Sufficient Capital to Deliver Substantial Growth in 2009
As of January 31, 2009, Coeur’s cash, equivalents and short-term investments stood at approximately $100 million, up from $28 million at year-end. The Company completed two transactions during January that netted approximately $95 million of cash proceeds. Between cash on hand and cash flow from operations, the Company believes it has sufficient liquidity for the remainder of 2009.
Since year-end, the holders of a majority of the Company’s $75.0 million of Senior Secured Floating Rate Convertible Notes have voluntarily converted their notes into shares of common stock. Once the remainder of these Notes are converted, Coeur’s shares outstanding will total approximately 713 million.
Coeur expects capital expenditures to fall to approximately $130 million this year, excluding projected capital expenditures at Kensington, which the Company can not estimate until a decision is received from the U.S. Supreme Court. Of the $130 million of projected 2009 capital expenditures, the Company estimates that approximately $65 million remains to be spent during the remaining ten months of the year.
With expected silver production of 20 million ounces and gold production of 85,000 this year, Coeur expects cash operating costs per silver ounce to be approximately $4.25 and operating cash flow of approximately $100 million in 2009.
Palmarejo to Commence Production Next Month
Coeur’s newest major project, the Palmarejo silver/gold mine in northern Mexico, is expected to begin producing next month. Mechanical completion of all processing facilities is nearing completion, and the first doré pour is expected to take place in late March. The mine is expected to produce 5.3 million ounces of silver and 72,000 ounces of gold during 2009 at an average cash operating cost of approximately ($0.50) per silver ounce. Based on an initial eleven-year mine plan, Palmarejo has the capacity to produce an average of 9 million ounces of silver and 120,000 ounces of gold annually.
San Bartolomé Operating at Capacity
San Bartolomé in Bolivia, the largest pure silver mine in the world, reached its designed throughput levels in the fourth quarter of 2008, producing 2.1 million ounces in the fourth quarter and 2.9 million ounces since operations began in June 2008. In December, the mine’s refinery was averaging pours of over 25,000 ounces per day of silver that at times approached 99.9% pure silver. Cash operating costs during the fourth quarter were $6.48 per ounce, and averaged $8.22 per ounce for the year, which included the mine’s startup period. In 2009, the mine’s first full year of production, it is expected to produce approximately 9.0 million ounces of silver at an average cash operating cost of $6.50 per ounce.
Reserves Reach Record Levels of 248 Million Ounces of Silver and 2.3 Million Ounces of Gold
Coeur’s silver proven and probable mineral reserves grew 15% in 2008 to a record 248 million ounces as of December 31, 2008. In addition, silver measured and indicated resources increased 6% to 236 million ounces and silver inferred resources stood at 89 million ounces at year-end. These increases are driven primarily by increases of reserves and resources at Palmarejo as a result of the Company’s 2008 drilling activities.
The Company’s gold mineral reserves increased 54% to 2.3 million ounces in 2008. Gold measured and indicated resources totaled 1.8 million ounces while gold inferred resources increased 11% to 1.3 million ounces at year-end. While reserves at Kensington increased 9%, the primary driver of these year-over-year gold reserve and resource increases was due to drilling success at Palmarejo during the year.
Highlights of 2008 and 2009 Exploration Programs
The Company invested $23.5 million in a robust exploration program in 2008, focused principally around existing operations in Mexico, Chile and Argentina. Highlights of the program included:
- Completion of the final feasibility study for Palmarejo;
- Significant increases in Palmarejo’s measured, indicated and inferred mineral resources between the June feasibility study and year-end:
- 52% increase in measured and indicated silver resources
- 30% increase in inferred silver resources
- 37% increase in measured and indicated gold resources
- 20% increase in inferred gold resources
- Discovery of the Delia vein at Cerro Bayo, expected to become a key component to the Company’s new mine plan to re-start production next year, has returned wide silver and gold bearing vein intercepts just 500 meters from the processing facilities. The Delia now extends over one kilometer in strike and up to 100 meters vertically.
Coeur plans to invest $17.6 million in exploration during 2009 with over 85% of this amount earmarked for expansion of mineral resources and reserves near its existing operations at Palmarejo (Mexico), Martha (Argentina) and Cerro Bayo (Chile).
2008 Fourth Quarter Review
During the fourth quarter of 2008, Coeur produced 4.0 million ounces of silver. This represents an increase of 28% over the fourth quarter of 2007 and a 30% increase over the third quarter and reflects the contribution of silver production from the Company’s new San Bartolomé mine. Average cash operating costs during the fourth quarter were $5.60 per silver ounce.
Sales of metal during the fourth quarter reached $42.4 million, which was 7% higher than during the third quarter of 2008. Despite double digit silver production growth from last quarter, sales of metal increased less because the price of silver dropped approximately 39% from an average realized price of $14.47 per ounce in the third quarter to an average of $8.84 per ounce in the fourth quarter. Compared to the fourth quarter of 2007, sales of metal declined by 29%, which was due primarily to a 38% decrease in the average realized silver price and a reduction in gold production of 14,493 ounces caused mostly by the temporary cessation of mining activities at Cerro Bayo. The average realized price of gold in the fourth quarter was $726 per ounce, which was 18% lower than the average realized price in the third quarter of $886 per ounce.
Fourth quarter net income was $4.3 million, or $0.01 per share, while operating cash flow was ($6.5) million.
The Company’s cost reduction strategy initiated in the early fourth quarter led to a 22% drop in general and administrative expenses compared to the fourth quarter of 2007. In addition to non-operating cost reductions, Coeur successfully reduced and deferred capital expenditures in order to maximize the amount of liquidity available to fund ongoing development activities at Palmarejo. The third component to the Company’s cost reduction initiative involved a review of the net cash flow being generated by its operating assets. This review led to the temporary cessation of mining activities at the Cerro Bayo silver and gold mine. The Company’s objective is to resume production at lower costs and higher production rates at Cerro Bayo in 2010.
Capital expenditures during the fourth quarter totaled $109 million. Of this total, $72.6 million of capital expenditures were incurred at Palmarejo and $23.9 million was spent at San Bartolomé.
2008 Full Year Review
During 2008, Coeur produced 12.0 million ounces of silver. This represented a 5% increase over 2007 production levels. Average cash operating costs in 2008 were $4.75 per silver ounce.
Sales of metal during 2008 totaled $189.5 million compared to $215.3 million in 2007. The Company’s average realized price per ounce of silver during 2008 was $14.31 (versus $13.59 per ounce in 2007) and the average realized price of gold in 2008 was $915 per ounce (compared to $700 per ounce in 2007). Sales of metal were lower in 2008 compared to 2007 due to a 50% reduction in gold production, which was primarily attributable to the temporary cessation of mining activities at Cerro Bayo in October and reduced gold ounces from the Company’s Rochester mine.
Net income for 2008 was approximately breakeven while operating cash flow was $11.6 million.
Capital expenditures during 2008 totaled $365 million. Of this total, $162.2 million of capital expenditures were incurred at Palmarejo ($17 million of development costs at Palmarejo were treated as pre-development costs and expensed rather than capitalized during 2008) and $120.9 million was invested at San Bartolomé.
About Coeur
Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and also a significant gold producer. Coeur, which has no silver production hedged, will have its first full year of production this year at the world’s largest pure silver mine - San Bartolomé in Bolivia – and is expected to begin production next month at another world-leading silver mine – Palmarejo in Mexico. The Company also operates underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns non-operating interests in two low-cost mines in Australia. The Company also owns a major gold project - Kensington in Alaska - and conducts exploration activities in Argentina, Chile and Mexico. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, the Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary Interests are traded on the Australian Securities Exchange under symbol CXC.
Recent photos of projects and other information can be accessed through Company website at www.coeur.com.
Conference Call Information
Coeur will hold a conference call to discuss the Company's fourth quarter 2008 results at 1:00 p.m. Eastern time on February 27, 2009. To listen live via telephone, call (866) 853-4681 (US and Canada) or (660) 422-4718 (International). The conference ID number is 85784992. The conference call and presentation will also be webcast on the Company's web site www.coeur.com. A replay of the call will be available through March 7, 2009. The replay dial-in numbers are (800) 642-1687 (US and Canada) and (706) 645-9291 (International) and the access code is 85784992. In addition, the call will be archived for a limited time on the Company’s web site.
Non-GAAP Measures
We supplement the reporting of our financial information determined under generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, including cash operating costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to, our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We also provide the amount of our operating cash flow to supplement our cash flow determined under GAAP. We define operating cash flow as net income plus depreciation, depletion and amortization and plus/minus any other non-cash items. We believe operating cash flow is an important measure in assessing the Company's overall financial performance.
Cautionary Statement
This press release contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the control of Coeur. Operating, exploration and financial data, and other statements in this presentation are based on information that Coeur believes is reasonable, but involve significant uncertainties affecting the business of Coeur, including, but not limited to, future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, construction schedules, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from future acquisitions of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries, as well as other uncertainties and risk factors set out in filings made from time to time with the SEC, the Canadian securities regulators, and the Australian Securities Exchange, including, without limitation, Coeur’s reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by fourth parties in respect of Coeur, its financial or operating results or its securities.
Donald J. Birak, Coeur's Senior Vice President of Exploration, is the qualified person responsible for the preparation of the scientific and technical information concerning Coeur's mineral projects in this press release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur's properties as filed on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” that are recognized by Canadian and Australian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be obtained from us, or from the SEC’s website at http://www.sec.gov/edgar.shtml.
MINERAL RESERVES | |||||||||||
SHORT | GRADE (Oz/Ton) | OUNCES (000s) | |||||||||
YEAR END 2008 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||
PROVEN RESERVES | |||||||||||
Rochester | Nevada, USA | - | - | - | - | - | |||||
Cerro Bayo | Chile | - | - | - | - | - | |||||
Martha | Argentina | 18 | 55.86 | 0.07 | 992 | 1.2 | |||||
San Bartolome | Bolivia | 160 | 6.35 | - | 1,015 | 0 | |||||
Kensington | Alaska, USA | 199 | - | 0.38 | - | 76 | |||||
Endeavor | Australia | 3,417 | 1.47 | - | 5,019 | - | |||||
Broken Hill | Australia | 6,431 | 1.58 | - | 10,185 | - | |||||
Palmarejo | Mexico | 6,840 | 5.09 | 0.06 | 34,844 | 406 | |||||
Total | 17,064 | 52,055 | 483 | ||||||||
PROBABLE RESERVES | |||||||||||
Rochester | Nevada, USA | - | - | - | - | - | |||||
Cerro Bayo | Chile | 547 | 10.18 | 0.07 | 5,564 | 38 | |||||
Martha | Argentina | 58 | 31.22 | 0.04 | 1,817 | 2.1 | |||||
San Bartolome | Bolivia | 35,147 | 3.81 | - | 134,015 | - | |||||
Kensington | Alaska, USA | 5,301 | - | 0.26 | - | 1,402 | |||||
Endeavor | Australia | 5,842 | 3.55 | - | 20,753 | - | |||||
Broken Hill | Australia | 4,616 | 1.05 | - | 4,861 | - | |||||
Palmarejo | Mexico | 5,355 | 5.37 | 0.07 | 28,732 | 350 | |||||
Total | 56,866 | 195,742 | 1,792 | ||||||||
PROVEN AND PROBABLE RESERVES | |||||||||||
Rochester | Nevada, USA | - | - | - | - | - | |||||
Cerro Bayo | Chile | 547 | 10.18 | 0.07 | 5,564 | 38 | |||||
Martha | Argentina | 76 | 36.99 | 0.04 | 2,809 | 3.3 | |||||
San Bartolome | Bolivia | 35,307 | 3.82 | - | 135,030 | 0 | |||||
Kensington | Alaska, USA | 5,500 | - | 0.27 | - | 1,478 | |||||
Endeavor | Australia | 9,259 | 2.78 | - | 25,772 | 0 | |||||
Broken Hill | Australia | 11,047 | 1.36 | - | 15,046 | 0 | |||||
Palmarejo | Mexico | 12,195 | 5.21 | 0.06 | 63,576 | 756 | |||||
Total Proven and Probable | 73,931 | 247,797 | 2,275 | ||||||||
MINERAL RESOURCES | |||||||||||
SHORT | GRADE (Oz/Ton) | OUNCES (000s) | |||||||||
YEAR END 2008 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||
MEASURED RESOURCES | |||||||||||
Rochester | Nevada, USA | 83,179 | 0.52 | 0.005 | 43,640 | 408 | |||||
Cerro Bayo | Chile | 316 | 9.50 | 0.15 | 3,005 | 49 | |||||
Martha | Argentina | 1 | 32.03 | 0.03 | 32 | 0.03 | |||||
San Bartolome | Bolivia | - | - | - | - | - | |||||
Kensington | Alaska, USA | 680 | - | 0.25 | - | 169 | |||||
Endeavor | Australia | 10,577 | 1.47 | - | 15,580 | - | |||||
Broken Hill | Australia | 3,209 | 5.16 | - | 16,560 | - | |||||
Palmarejo | Mexico | 5,386 | 3.44 | 0.04 | 18,515 | 237 | |||||
Total | 103,348 | 97,332 | 863 | ||||||||
INDICATED RESOURCES | |||||||||||
Rochester | Nevada, USA | 30,879 | 0.59 | 0.004 | 18,170 | 123 | |||||
Cerro Bayo | Chile | 592 | 9.83 | 0.13 | 5,816 | 74 | |||||
Martha | Argentina | 45 | 29.44 | 0.02 | 1,314 | 1.1 | |||||
San Bartolome | Bolivia | 37,087 | 1.75 | 0.00 | 64,845 | 0 | |||||
Kensington | Alaska, USA | 2,044 | - | 0.16 | - | 325 | |||||
Endeavor | Australia | 7,551 | 0.24 | - | 1,822 | - | |||||
Broken Hill | Australia | 3,167 | 3.86 | - | 12,222 | - | |||||
Palmarejo | Mexico | 9,987 | 3.49 | 0.04 | 34,808 | 439 | |||||
Total | 91,351 | 138,997 | 962 | ||||||||
MEASURED AND INDICATED RESOURCES | |||||||||||
Rochester | Nevada, USA | 114,058 | 0.54 | 0.005 | 61,810 | 531 | |||||
Cerro Bayo | Chile | 908 | 9.71 | 0.14 | 8,821 | 123 | |||||
Martha | Argentina | 46 | 29.50 | 0.02 | 1,346 | 1.1 | |||||
San Bartolome | Bolivia | 37,087 | 1.75 | - | 64,845 | 0 | |||||
Kensington | Alaska, USA | 2,724 | - | 0.18 | - | 494 | |||||
Endeavor | Australia | 18,127 | 0.96 | - | 17,402 | - | |||||
Broken Hill | Australia | 6,376 | 4.51 | - | 28,782 | - | |||||
Palmarejo | Mexico | 15,373 | 3.47 | 0.04 | 53,323 | 676 | |||||
Total Measured and Indicated | 194,699 | 236,329 | 1,825 | ||||||||
INFERRED RESOURCES | |||||||||||
Rochester | Nevada, USA | - | - | - | - | - | |||||
Cerro Bayo | Chile | 1,341 | 10.76 | 0.12 | 14,436 | 157 | |||||
Martha | Argentina | 33 | 46.96 | 0.05 | 1,528 | 2 | |||||
San Bartolome | Bolivia | 1,177 | 1.38 | - | 1,628 | - | |||||
Kensington | Alaska, USA | 742 | - | 0.37 | - | 273 | |||||
Endeavor | Australia | 772 | 2.83 | - | 2,183 | - | |||||
Broken Hill | Australia | 6,735 | 1.62 | - | 10,913 | - | |||||
Palmarejo | Mexico | 23,799 | 2.46 | 0.04 | 58,508 | 880 | |||||
Total | 34,599 | 89,196 | 1,312 | ||||||||
Notes to Mineral Reserves and Mineral Resources | |||||||||||
-- Effective December 31, 2008 except Endeavor and Broken Hill effective June 30, 2008. | |||||||||||
-- Mineral Resources are in addition to Mineral Reserves and have not demonstrated economic viability. | |||||||||||
-- Metal prices used for Mineral Reserves were $13.25 per ounce of silver and $750 per ounce of gold except Endeavor at $12.00 per ounce of silver, Broken Hill at $2.22 per ounce of silver. | |||||||||||
-- For details on the estimation of Mineral Resources and Reserves for each property, please refer to the Technical Report on file at www.sedar.com. | |||||||||||
COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Twelve Months | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
REVENUES | (In thousands except per share data) | |||||||||||||||
Sales of metal | $ | 42,392 | $ | 59,931 | $ | 189,465 | $ | 215,319 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Production costs applicable to sales | 28,484 | 31,034 | 109,336 | 117,025 | ||||||||||||
Depreciation and depletion | 8,739 | 4,315 | 27,330 | 20,984 | ||||||||||||
Administrative and general | 5,683 | 7,285 | 25,846 | 23,875 | ||||||||||||
Exploration | 6,240 | 3,241 | 20,531 | 11,941 | ||||||||||||
Pre-development | (271 | ) | - | 16,950 | - | |||||||||||
Care and maintenance and other | 3,155 | - | 3,155 | - | ||||||||||||
Litigation settlements | - | - | - | 507 | ||||||||||||
Total costs and expenses | 52,030 | 45,875 | 203,148 | 174,332 | ||||||||||||
OPERATING INCOME (LOSS) | (9,638 | ) | 14,056 | (13,683 | ) | 40,987 | ||||||||||
OTHER INCOME AND EXPENSE | ||||||||||||||||
Interest and other income | (1,246 | ) | 5,893 | 2,557 | 18,195 | |||||||||||
Mark to market adjustments on derivatives | 1,756 | 1,756 | ||||||||||||||
Interest expense, net of capitalized interest | (1,448 | ) | (116 | ) | (4,139 | ) | (365 | ) | ||||||||
Total other income and expense | (938 | ) | 5,777 | 174 | 17,830 | |||||||||||
Income (loss) before income taxes | (10,576 | ) | 19,833 | (13,509 | ) | 58,817 | ||||||||||
Income tax benefit (provision) | 14,858 | (5,514 | ) | 13,501 | (14,927 | ) | ||||||||||
NET INCOME (LOSS) | 4,282 | 14,319 | (8 | ) | 43,890 | |||||||||||
Other comprehensive income (loss) | 220 | (204 | ) | (634 | ) | 86 | ||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 4,502 | $ | 14,115 | $ | (642 | ) | $ | 43,976 | |||||||
BASIC AND DILUTED INCOME (LOSS) PER SHARE | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.05 | $ | (0.01 | ) | $ | 0.15 | |||||||
Diluted | $ | 0.01 | $ | 0.04 | $ | 0.00 | $ | 0.14 | ||||||||
Weighted average number of shares of common stock | ||||||||||||||||
Basic | 552,780 | 310,379 | 550,733 | 285,972 | ||||||||||||
Diluted | 608,863 | 335,082 | 550,733 | 310,524 | ||||||||||||
Operating Statistics From Continuing Operations
The following table presents information by mine and consolidated sales information for the three and twelve month periods ended December 31, 2008 and 2007:
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, | December 31, | ||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||
Rochester | |||||||||||
Tons processed | - | - | - | 5,060,678 | |||||||
Ore grade/Ag oz | - | - | - | 0.65 | |||||||
Ore grade/Au oz | - | - | - | 0.01 | |||||||
Recovery/Ag oz | - | - | - | 141.4 | % | ||||||
Recovery/Au oz | - | - | - | 167.6 | % | ||||||
Silver production ounces | 659,022 | 1,060,129 | 3,033,720 | 4,614,780 | |||||||
Gold production ounces | 4,146 | 9,728 | 21,041 | 50,408 | |||||||
Cash operating costs/oz | $1.21 | $(3.27 | ) | $(0.75 | ) | $0.99 | |||||
Cash cost/oz | $1.49 | $(2.49 | ) | $(0.03 | ) | $1.52 | |||||
Total cost/oz | $2.24 | $(1.83 | ) | $0.75 | $3.82 | ||||||
Cerro Bayo | |||||||||||
Tons milled | 27,566 | 124,066 | 236,403 | 387,378 | |||||||
Ore grade/Ag oz | 7.46 | 4.83 | 5.54 | 4.68 | |||||||
Ore grade/Au oz | 0.08 | 0.09 | 0.10 | 0.11 | |||||||
Recovery/Ag oz | 93.7 | % | 94.1 | % | 93.4 | % | 94.4 | % | |||
Recovery/Au oz | 88.8 | % | 90.9 | % | 90.2 | % | 92.2 | % | |||
Silver production ounces | 192,560 | 564,176 | 1,224,084 | 1,709,830 | |||||||
Gold production ounces | 2,066 | 10,604 | 21,761 | 37,479 | |||||||
Cash operating costs/oz | $11.73 | $7.75 | $8.56 | $8.22 | |||||||
Cash cost/oz | $11.73 | $7.75 | $8.56 | $8.22 | |||||||
Total cost/oz | $16.32 | $11.28 | $14.65 | $11.82 | |||||||
Martha | |||||||||||
Tons milled | 19,799 | 9,801 | 57,886 | 37,047 | |||||||
Ore grade/Ag oz | 35.81 | 83.17 | 49.98 | 78.10 | |||||||
Ore grade/Au oz | 0.05 | 0.13 | 0.07 | 0.12 | |||||||
Recovery/Ag oz | 88.7 | % | 94.8 | % | 93.7 | % | 95.0 | % | |||
Recovery/Au oz | 80.4 | % | 92.4 | % | 88.3 | % | 92.7 | % | |||
Silver production ounces | 629,100 | 772,778 | 2,710,673 | 2,748,705 | |||||||
Gold production ounces | 816 | 1,189 | 3,313 | 4,127 | |||||||
Cash operating costs/oz | $7.25 | $5.29 | $6.87 | $5.54 | |||||||
Cash cost/oz | $7.54 | $6.10 | $7.57 | $6.27 | |||||||
Total cost/oz | $9.30 | $6.64 | $9.38 | $6.78 | |||||||
San Bartolomé | |||||||||||
Tons milled | 327,758 | - | 505,514 | - | |||||||
Ore grade/Ag oz | 7.82 | - | 7.46 | - | |||||||
Recovery/Ag oz | 83.3 | % | - | 75.8 | % | - | |||||
Silver production ounces | 2,133,106 | - | 2,861,500 | - | |||||||
Cash operating costs/oz | $6.48 | - | $8.22 | - | |||||||
Cash cost/oz | $8.81 | - | $10.53 | - | |||||||
Total cost/oz | $10.58 | - | $12.50 | - | |||||||
Endeavor | |||||||||||
Tons milled | 202,613 | 328,013 | 1,030,368 | 1,146,857 | |||||||
Ore grade/Ag oz | 1.05 | 2.25 | 1.41 | 1.40 | |||||||
Recovery/Ag oz | 66.0 | % | 42.9 | % | 56.5 | % | 48.0 | % | |||
Silver production ounces | 140,623 | 316,057 | 824,093 | 772,609 | |||||||
Cash operating costs/oz | $2.83 | $2.33 | $2.55 | $2.67 | |||||||
Cash cost/oz | $2.83 | $2.33 | $2.55 | $2.67 | |||||||
Total cost/oz | $6.01 | $3.28 | $4.94 | $3.65 | |||||||
Broken Hill | |||||||||||
Tons milled | 428,347 | 424,285 | 1,952,066 | 1,646,203 | |||||||
Ore grade/Ag oz | 0.95 | 1.22 | 0.97 | 1.19 | |||||||
Recovery/Ag oz | 70.5 | % | 84.3 | % | 72.5 | % | 83.6 | % | |||
Silver production ounces | 287,755 | 435,611 | 1,369,009 | 1,642,205 | |||||||
Cash operating costs/oz | $2.71 | $3.26 | $3.41 | $3.18 | |||||||
Cash cost/oz | $2.71 | $3.26 | $3.41 | $3.18 | |||||||
Total cost/oz | $4.77 | $5.03 | $5.24 | $5.04 | |||||||
CONSOLIDATED PRODUCTION TOTALS | |||||||||||
Silver ounces | 4,042,166 | 3,148,751 | 12,023,079 | 11,488,129 | |||||||
Gold ounces | 7,028 | 21,521 | 46,115 | 92,014 | |||||||
Cash operating costs/oz | $5.60 | $2.32 | $4.75 | $3.59 | |||||||
Cash cost/oz | $6.91 | $2.73 | $5.64 | $3.97 | |||||||
Total cost/oz | $8.72 | $4.06 | $7.71 | $5.88 | |||||||
CONSOLIDATED SALES TOTALS | |||||||||||
Silver ounces sold | 3,777,641 | 3,039,715 | 11,012,584 | 11,506,560 | |||||||
Gold ounces sold | 7,985 | 21,883 | 49,130 | 94,284 | |||||||
Realized price per silver ounce | $8.84 | $14.28 | $14.31 | $13.59 | |||||||
Realized price per gold ounce | $726 | $799 | $915 | $700 | |||||||
Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs
The tables below present reconciliations between non-GAAP cash operating costs per ounce and cash costs per ounce to production costs applicable to sales including depreciation, depletion and amortization, which is calculated in accordance with GAAP.
Total cash costs include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit. Cash operating costs include all cash costs except mining production taxes and royalties if applicable. Total cash costs and cash operating costs are performance measures which we believe provide management and investors with an indication of operating cash flow, after consideration of the realized price received for production sold. Management also uses these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. “Cash operating costs per ounce” and “Total cash costs per ounce” are measures developed by precious metals companies in an effort to provide a comparable standard, however, there can be no assurance that our reporting of these non-GAAP measures are similar to that reported by other mining companies.
Production costs applicable to sales including depreciation, depletion and amortization, is the most comparable financial measure calculated in accordance with GAAP to total cash costs. The sum of the production costs applicable to sales and depreciation, depletion and amortization for our mines as set forth in the tables below is included in our Consolidated Statements of Operations and Comprehensive Income.
THREE MONTHS ENDED DECEMBER 31, 2008 | ||||||||||||||||||||||||||||
(In thousands except ounces and per ounce costs) | ||||||||||||||||||||||||||||
Rochester | Cerro Bayo | Martha | San Bartolomé | Endeavor | Broken Hill | Total | ||||||||||||||||||||||
Production of silver (ounces) | 659,022 | 192,560 | 629,100 | 2,133,106 | 140,623 | 287,755 | 4,042,166 | |||||||||||||||||||||
Cash operating cost per ounce | $ | 1.21 | $ | 11.73 | $ | 7.25 | $ | 6.48 | $ | 2.83 | $ | 2.71 | $ | 5.60 | ||||||||||||||
Cash costs per ounce | $ | 1.49 | $ | 11.73 | $ | 7.54 | $ | 8.81 | $ | 2.83 | $ | 2.71 | $ | 6.91 | ||||||||||||||
Total Operating Cost (Non-GAAP) | $ | 797 | $ | 2,258 | $ | 4,560 | $ | 13,831 | $ | 398 | $ | 779 | $ | 22,623 | ||||||||||||||
Royalties | - | - | 182 | 4,957 | - | - | 5,139 | |||||||||||||||||||||
Production taxes | 185 | - | - | - | - | - | 185 | |||||||||||||||||||||
Total Cash Costs (Non-GAAP) | 982 | 2,258 | 4,742 | 18,788 | 398 | 779 | 27,947 | |||||||||||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | - | (686 | ) | (526 | ) | - | (188 | ) | (191 | ) | (1,591 | ) | ||||||||||||||||
By-product credit | 3,286 | 1,612 | 652 | - | - | - | 5,550 | |||||||||||||||||||||
Other adjustment | (136 | ) | (425 | ) | - | - | - | - | (561 | ) | ||||||||||||||||||
Change in inventory | 2,739 | 576 | 249 | (6,503 | ) | 68 | 10 | (2,861 | ) | |||||||||||||||||||
Depreciation, depletion and amortization | 629 | 1,309 | 1,108 | 3,785 | 448 | 593 | 7,872 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (GAAP) | $ | 7,500 | $ | 4,644 | $ | 6,225 | $ | 16,070 | $ | 726 | $ | 1,191 | $ | 36,356 | ||||||||||||||
YEAR ENDED DECEMBER 31, 2008 | ||||||||||||||||||||||||||||
(In thousands except ounces and per ounce costs) | ||||||||||||||||||||||||||||
Rochester | Cerro Bayo | Martha | San Bartolomé | Endeavor | Broken Hill | Total | ||||||||||||||||||||||
Production of silver (ounces) | 3,033,720 | 1,224,084 | 2,710,673 | 2,861,500 | 824,093 | 1,369,009 | 12,023,079 | |||||||||||||||||||||
Cash operating cost per ounce | $ | (0.75 | ) | $ | 8.56 | $ | 6.87 | $ | 8.22 | $ | 2.55 | $ | 3.41 | $ | 4.75 | |||||||||||||
Cash costs per ounce | $ | (0.03 | ) | $ | 8.56 | $ | 7.57 | $ | 10.53 | $ | 2.55 | $ | 3.41 | $ | 5.64 | |||||||||||||
Total Operating Cost (Non-GAAP) | $ | (2,290 | ) | $ | 10,478 | $ | 18,619 | $ | 23,535 | $ | 2,101 | $ | 4,670 | $ | 57,113 | |||||||||||||
Royalties | - | - | 1,889 | 6,605 | - | - | 8,494 | |||||||||||||||||||||
Production taxes | 2,188 | - | - | - | - | - | 2,188 | |||||||||||||||||||||
Total Cash Costs (Non-GAAP) | (102 | ) | 10,478 | 20,508 | 30,140 | 2,101 | 4,670 | 67,795 | ||||||||||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | - | (3,818 | ) | (3,019 | ) | - | (1,212 | ) | (1,938 | ) | (9,987 | ) | ||||||||||||||||
By-product credit | 18,499 | 19,595 | 2,880 | - | - | - | 40,974 | |||||||||||||||||||||
Other adjustment | 12 | (425 | ) | 470 | - | - | - | 57 | ||||||||||||||||||||
Change in inventory | 23,837 | 2,099 | (3,240 | ) | (12,393 | ) | 171 | 22 | 10,496 | |||||||||||||||||||
Depreciation, depletion and amortization | 2,352 | 7,881 | 4,431 | 5,638 | 1,971 | 2,507 | 24,780 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (GAAP) | $ | 44,598 | $ | 35,810 | $ | 22,030 | $ | 23,385 | $ | 3,031 | $ | 5,261 | $ | 134,115 | ||||||||||||||
THREE MONTHS ENDED DECEMBER 31, 2007 | ||||||||||||||||||||||||
(In thousands except ounces and per ounce costs) | ||||||||||||||||||||||||
Rochester | Cerro Bayo | Martha | Endeavor | Broken Hill | Total | |||||||||||||||||||
Production of silver (ounces) | 1,060,129 | 564,176 | 772,778 | 316,057 | 435,611 | 3,148,751 | ||||||||||||||||||
Cash operating cost per ounce | $ | (3.27 | ) | $ | 7.75 | $ | 5.29 | $ | 2.33 | $ | 3.26 | $ | 2.32 | |||||||||||
Cash costs per ounce | $ | (2.49 | ) | $ | 7.75 | $ | 6.10 | $ | 2.33 | $ | 3.26 | $ | 2.73 | |||||||||||
Total Operating Cost (Non-GAAP) | $ | (3,468 | ) | $ | 4,373 | $ | 4,088 | $ | 735 | $ | 1,420 | $ | 7,148 | |||||||||||
Royalties | - | - | 627 | - | - | 627 | ||||||||||||||||||
Production taxes | 830 | - | - | - | - | 830 | ||||||||||||||||||
Total Cash Costs (Non-GAAP) | (2,638 | ) | 4,373 | 4,715 | 735 | 1,420 | 8,605 | |||||||||||||||||
Add/Subtract: | ||||||||||||||||||||||||
Third party smelting costs | - | (1,251 | ) | (710 | ) | (437 | ) | (556 | ) | (2,954 | ) | |||||||||||||
By-product credit | 7,636 | 8,372 | 926 | - | - | 16,934 | ||||||||||||||||||
Other adjustment | 97 | - | - | - | - | 97 | ||||||||||||||||||
Change in inventory | 12,442 | (3,342 | ) | (663 | ) | (183 | ) | 96 | 8,350 | |||||||||||||||
Depreciation, depletion and amortization | 703 | 1,989 | 417 | 303 | 771 | 4,183 | ||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (GAAP) | $ | 18,240 | $ | 10,141 | $ | 4,685 | $ | 418 | $ | 1,731 | $ | 35,215 | ||||||||||||
YEAR ENDED DECEMBER 31, 2007 | |||||||||||||||||||||||
(In thousands except ounces and per ounce costs) | |||||||||||||||||||||||
Rochester | Cerro Bayo | Martha | Endeavor | Broken Hill | Total | ||||||||||||||||||
Production of silver (ounces) | 4,614,780 | 1,709,830 | 2,748,705 | 772,609 | 1,642,205 | 11,488,129 | |||||||||||||||||
Cash operating cost per ounce | $ | 0.99 | $ | 8.22 | $ | 5.54 | $ | 2.67 | $ | 3.18 | $ | 3.59 | |||||||||||
Cash costs per ounce | $ | 1.52 | $ | 8.22 | $ | 6.27 | $ | 2.67 | $ | 3.18 | $ | 3.97 | |||||||||||
Total Operating Cost (Non-GAAP) | $ | 4,559 | $ | 14,055 | $ | 15,217 | $ | 2,064 | $ | 5,228 | $ | 41,123 | |||||||||||
Royalties | - | - | 2,028 | - | - | 2,028 | |||||||||||||||||
Production taxes | 2,476 | - | - | - | - | 2,476 | |||||||||||||||||
Total Cash Costs (Non-GAAP) | 7,035 | 14,055 | 17,245 | 2,064 | 5,228 | 45,627 | |||||||||||||||||
Add/Subtract: | |||||||||||||||||||||||
Third party smelting costs | - | (3,603 | ) | (2,112 | ) | (1,347 | ) | (2,006 | ) | (9,068 | ) | ||||||||||||
By-product credit | 34,664 | 26,199 | 2,889 | - | - | 63,752 | |||||||||||||||||
Other adjustment | 1,926 | - | - | - | - | 1,926 | |||||||||||||||||
Change in inventory | 16,738 | (1,701 | ) | (146 | ) | (172 | ) | 69 | 14,788 | ||||||||||||||
Depreciation, depletion and amortization | 8,697 | 6,155 | 1,383 | 755 | 3,055 | 20,045 | |||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (GAAP) | $ | 69,060 | $ | 41,105 | $ | 19,259 | $ | 1,300 | $ | 6,346 | $ | 137,070 | |||||||||||
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
ASSETS | (In Thousands) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 20,760 | $ | 98,671 | ||||
Short-term investments | 7,881 | 53,039 | ||||||
Receivables | 60,183 | 56,121 | ||||||
Ore on leach pad | 9,193 | 25,924 | ||||||
Metal and other inventory | 34,846 | 18,918 | ||||||
Deferred tax assets | 240 | 3,573 | ||||||
Prepaid expenses and other | 19,348 | 7,821 | ||||||
152,451 | 264,067 | |||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment | 500,025 | 322,733 | ||||||
Less accumulated depreciation | (88,717 | ) | (69,937 | ) | ||||
411,308 | 252,796 | |||||||
MINING PROPERTIES | ||||||||
Operational mining properties | 292,013 | 198,208 | ||||||
Less accumulated depletion | (131,698 | ) | (124,401 | ) | ||||
160,315 | 73,807 | |||||||
Mineral interests | 1,736,654 | 1,731,715 | ||||||
Less accumulated depletion | (16,796 | ) | (11,639 | ) | ||||
1,719,858 | 1,720,076 | |||||||
Non-producing and development properties | 351,985 | 256,585 | ||||||
2,232,158 | 2,050,468 | |||||||
OTHER ASSETS | ||||||||
Ore on leach pad, non-current portion | 20,998 | 24,995 | ||||||
Restricted cash and cash equivalents | 23,110 | 25,760 | ||||||
Receivables, non-current | 34,139 | 18,708 | ||||||
Debt issuance costs, net | 12,476 | 4,848 | ||||||
Deferred tax assets | 16,723 | 1,109 | ||||||
Other | 4,452 | 8,943 | ||||||
111,898 | 84,363 | |||||||
TOTAL ASSETS | $ | 2,907,815 | $ | 2,651,694 | ||||
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
(In thousands, except
share data) | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Credit facility, current portion of long-term debt and capital lease obligations | $ | 33,414 | $ | 30,831 | ||||
Accounts payable | 66,300 | 49,642 | ||||||
Accrued liabilities and other | 24,301 | 9,072 | ||||||
Accrued income taxes | 927 | 7,547 | ||||||
Accrued payroll and related benefits | 8,106 | 9,342 | ||||||
Accrued interest payable | 4,446 | 1,060 | ||||||
Current portion of reclamation and mine closure | 1,924 | 4,183 | ||||||
139,418 | 111,677 | |||||||
LONG-TERM LIABILITIES | ||||||||
Senior Secured Floating Rate Convertible Notes Due 2012 | 1,830 | - | ||||||
3 1/4% Convertible Senior Notes due March 2028 | 230,000 | - | ||||||
1 1/4% Convertible Senior Notes due January 2024 | 180,000 | 180,000 | ||||||
Non-current portion of other long-term debt and capital lease obligations | 16,837 | 23,661 | ||||||
Reclamation and mine closure | 34,093 | 30,629 | ||||||
Deferred income taxes | 541,366 | 573,681 | ||||||
Other long-term liabilities | 27,581 | 4,679 | ||||||
1,031,707 | 812,650 | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Common Stock, par value $1.00 per share; authorized 750,000,000 shares in 2008 and 2007, issued 567,799,088 shares in 2008 and 551,512,230 shares in 2007 | 567,799 | 551,512 | ||||||
Additional paid-in capital | 1,601,415 | 1,607,737 | ||||||
Accumulated deficit | (419,339 | ) | (419,331 | ) | ||||
Shares held in treasury | (13,190 | ) | (13,190 | ) | ||||
Accumulated other comprehensive income | 5 | 639 | ||||||
1,736,690 | 1,727,367 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,907,815 | $ | 2,651,694 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES | ||||||||||||
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net (loss) income | $ | (8 | ) | $ | 43,890 | $ | 88,486 | |||||
Add (deduct) non-cash items: | ||||||||||||
Depreciation and depletion | 27,330 | 20,984 | 26,772 | |||||||||
Deferred taxes | (23,165 | ) | 2,154 | (2,902 | ) | |||||||
Unrealized loss (gain) on embedded derivatives | 3,644 | (1,462 | ) | 1,166 | ||||||||
Share-based compensation | 2,692 | 3,448 | 2,218 | |||||||||
Amortization of debt issuance costs | 1,477 | 303 | 303 | |||||||||
Loss on asset-backed securities | 2,600 | - | - | |||||||||
Gain on asset retirement obligation | (3,169 | ) | (871 | ) | (41 | ) | ||||||
Loss (gain) on foreign currency transactions | 2,216 | (433 | ) | (147 | ) | |||||||
(Gain) of sales of assets | (632 | ) | (1,947 | ) | (237 | ) | ||||||
Mark-to-market adjustments on derivatives | (1,756 | ) | - | - | ||||||||
Other non-cash charges | 413 | 610 | 136 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Receivables | (19,414 | ) | (24,021 | ) | (14,781 | ) | ||||||
Prepaid expenses and other | 476 | (4,065 | ) | (599 | ) | |||||||
Inventories | 4,799 | 13,172 | (15,555 | ) | ||||||||
Accounts payable and accrued liabilities | (4,870 | ) | (11,705 | ) | 17,686 | |||||||
Discontinued operations | - | - | (11,275 | ) | ||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | (7,367 | ) | 40,057 | 91,230 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchases of short-term investments | (336,350 | ) | (167,346 | ) | (317,743 | ) | ||||||
Proceeds from sales of short-term investments | 375,047 | 183,121 | 430,292 | |||||||||
Capital expenditures | (365,019 | ) | (216,978 | ) | (147,998 | ) | ||||||
Merger related costs | - | (13,727 | ) | - | ||||||||
Proceeds from sale of assets | 133 | 3,270 | 314 | |||||||||
Other | (47 | ) | 187 | (642 | ) | |||||||
Discontinued operations | - | - | 15,446 | |||||||||
CASH USED IN INVESTING ACTIVITIES | (326,236 | ) | (211,473 | ) | (20,331 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Proceeds from issuance of convertible notes | 270,737 | - | - | |||||||||
Proceeds from short-term borrowings | 26,658 | 1,698 | - | |||||||||
Repayment of credit facility, long-term debt and capital leases | (32,262 | ) | (1,360 | ) | (1,448 | ) | ||||||
Proceeds from issuance of common stock | - | - | 154,560 | |||||||||
Payments of common stock issuance costs | (9,105 | ) | (726 | ) | (8,329 | ) | ||||||
Other | (3367 | ) | (197 | ) | 94 | |||||||
CASH PROVIDED (USED) BY FINANCING ACTIVITIES | 255,692 | (585 | ) | 144,877 | ||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (77,911 | ) | (172,001 | ) | 215,776 | |||||||
Cash and cash equivalents at beginning of year | 98,671 | 270,672 | 54,896 | |||||||||
Cash and cash equivalents at end of year | $ | 20,760 | $ | 98,671 | $ | 270,672 |
Contacts:
Investors:
Director of
Investor Relations
Karli Anderson, 208-665-0345
or
Media:
Director
of Corporate Communications
Tony Ebersole, 208-665-0777