(PR NEWSWIRE) Coeur Reports 4th Quarter Profit and 2004 Results=1 Coeur Reports 4th Quarter Profit and 2004 Results=1
COEUR D'ALENE, Idaho, March 14 /PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation (NYSE: CDE; TSX: CDM), the world's largest primary silver producer and a growing gold producer, today reported results for the fourth quarter and full year 2004. Highlights Fourth Quarter -- Net income of $13.0 million, or $0.05 per diluted share, compared with a loss of $12.9 million, or $0.06 per share, in the fourth quarter of 2003. Results for the quarter include operating income of $1.8 million, $2.1 million related to cumulative reduction in depletion and income taxes for the year and $9.1 million of tax benefits associated with the expected utilization of past net operating losses. -- Revenue of $46.1 million, an increase of 48% over reported revenue of $31.2 million in the fourth quarter of 2003. -- Silver production of 4.3 million ounces, up 23% from a year ago and 43% from last quarter. -- Fourth quarter gold production of 47,055 ounces, up 80% from 2003's fourth quarter and 46% from last quarter. -- Average cash cost declined 36% to $2.22 per ounce of silver, compared to $3.47 in 2003's comparable period and 49% lower than last quarter. -- Cash, cash equivalents and short-term investments of $322.1 million at December 31, 2004. -- Coeur shares commenced trading on the Toronto Stock Exchange (TSX:CDM) further enhancing the Company's leading liquidity position among silver producers. Full Year 2004 -- Revenue of $133.5 million, up 21% from the previous year -- Full year silver production of 14.1 million ounces compared to 14.2 million ounces in 2003 -- Full year gold production of 129,332 ounces, up 8% from 2003's level of 119,518 ounces. -- Average cash cost per ounce of $3.66, compared to $3.27 the previous year. -- Total silver reserves increased 12% above last year's reserve levels, to 196 million ounces - reserve levels more than doubled at Cerro Bayo and Martha as a result of the expanded exploration program, further extending mine life.
2005 Outlook -- San Bartolome construction has commenced, commercial production expected in 2006. -- Revised Record of Decision ("ROD") for Kensington for the Final Environmental Impact Statement ("FSEIS") issued by the U.S. Forest Service. Final permits expected in the first half of 2005. -- Exploration program expanded in 2005 "With continued strong silver and gold production, Coeur reported substantial profit in the fourth quarter of 2004, finishing the year in strong fashion," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. "We are seeing the successful completion of Coeur's strategy to shift to new low-cost mines, significantly expand exploration spending to develop new low-cost ore reserves and improve our operations capability. We believe this focus on exploiting our vast exploration potential and low discovery costs at or near our existing low-cost operations will further strengthen our position as the premier silver investment. "Our young mines in South America, Cerro Bayo and Martha, had excellent fourth quarter and full year results, with strong metals production and low operating costs -- $0.60 per ounce of silver (net of gold production credits) in the fourth quarter and $2.07 per ounce for the full year -- as well as exploration results which exceeded our expectations and continued to extend mine life. We will continue our expanded exploration program there in 2005," Mr. Wheeler added. "Construction has commenced at our San Bartolome silver project, with an excellent construction and operating team in place. San Bartolome is expected to produce approximately eight million ounces of production annually which will increase the Company's total silver production by 56%. Production is expected to begin in 2006, with anticipated strong cash flow at existing silver prices. We are pursuing optimization of the project to further reduce capital expenditures and operating costs. Our cash liquidity position is strong, with $322 million in cash, cash equivalents and short-term investments at year-end, which will help fund our growth projects, including San Bartolome and Kensington, and gives us great flexibility to look for new opportunities to expand company production, reserves and cash flow," Mr. Wheeler said.