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Coeur's New Mines Drive Strong First Quarter Results

First Quarter Highlights:
Metal sales increased to $87.5 million, or 94% as compared to last year's first quarter 308% increase in quarterly operating cash flow to $27.7 million1 compared to last year's first quarter 40% reduction in quarterly capital expenditures compared to last year's first quarter Quarterly gold production increased to 25,782 ounces, up from 3,791 ounces last year Palmarejo silver recovery rates and higher throughput drove production increases and cost declines Expanded mining access at San Bartolomé led to higher production and lower costs Kensington gold mine on-track for July startup Agreement to sell Cerro Bayo signed, further rationalizing Company's asset portfolio

COEUR D'ALENE, Idaho, May 10, 2010 (BUSINESS WIRE) --Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today announced strong first quarter gold production of 25,782 ounces, up from 3,791 ounces in the first quarter a year ago. The increase was driven by 22,577 ounces of gold production from the Company's Palmarejo mine, which began production in April of 2009 and is expected to produce 109,000 ounces of gold in its first full year of operations in 2010. Companywide silver production in the first quarter was 3.4 million ounces, which was consistent with the first quarter of 2009. First quarter cash operating costs were $7.41 per silver ounce2.

"Coeur continues to generate growth in production, metal sales, and cash flow from its new, long-life precious metals mines as silver and gold prices remain robust," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. "We are now poised to further accelerate the Company's growth with the commencement of production at Kensington in July. Kensington, together with Palmarejo and San Bartolomé, are expected to generate a record year in terms of metal sales and cash flows for shareholders. The Company plans to complete its transition to three new, large, long-life mines with the commencement of production at the new Kensington gold mine in July."

Sales of metal increased 94% compared to last year's first quarter to $87.5 million due to the significant rise in gold production primarily from Palmarejo, which was not in production in the first quarter of 2009, and from substantially higher average realized silver and gold prices. The Company's average realized silver and gold prices during the first quarter were $16.84 per ounce and $1,104 per ounce, respectively, representing increases of 36% and 26% over last year's first quarter. Silver production contributed 68% of the Company's total metal sales during the first quarter, compared to 90% during the first quarter of 2009.

Operating cash flow1 increased 308% to $27.7 million compared to last year's first quarter while capital expenditures dropped 40% to $47.2 million. For the quarter, the Company reported a net loss of $8.0 million, or $0.10 per share. This net loss takes into account ($7.9) million on debt extinguishments and ($4.3) million of fair value adjustments. During last year's first quarter, the Company reported net income of $6.1 million, or $0.10 per share, which took into account $15.7 million of gains on debt extinguishments and ($9.4) million of fair value adjustments. In addition, depreciation and depletion costs increased from $8.5 million during last year's first quarter to $28.8 million during this year's first quarter. This increase arose primarily because Palmarejo was not in production during last year's first quarter and had no depreciation or depletion costs until production commenced in April of last year. Of the $28.8 million of total depreciation, depletion, and amortization in the first quarter, Palmarejo accounted for $20.8 million. The Company expects this figure to decline on a per unit basis over the life of the mine and as new ore reserves are added.

Construction completion at the Company's newest mine, the Kensington gold mine in Alaska, remained on-track for production to commence in July, with output this year targeted to reach 50,000 ounces. At Kensington, the Company's third new mine to be brought on line within the last two years, capital expenditures totaled $30 million during the first quarter.

Palmarejo achieving production and cost expectations as silver recoveries continue to rise



  • First quarter silver production of 1.3 million ounces increased 10% and gold production of 22,577 ounces increased 9% over the previous quarter while cash operating costs per ounce of silver2 declined 12% to $5.41 per ounce of silver
  • Silver recoveries continue to increase. First quarter recoveries averaged 72.7%, up from 67.2% in the fourth quarter. Further recovery increases are expected during the second quarter as a result of the Company's ongoing silver recovery optimization program
  • Tons milled increased 24% from the prior quarter
  • Palmarejo silver and gold sales accounted for 51% of the Company's total metal sales during the first quarter
  • Expect full year 2010 production of 7.9 million ounces of silver and 109,000 ounces of gold at average cash operating costs of under $2.50 per ounce of silver
Palmarejo began operations in April 2009 and currently has year-end 2009 silver reserves of 90.5 million ounces and gold reserves of 1.1 million ounces. These reserve levels represent 42% and 46% increases compared to year-end 2008 silver reserves and gold reserves, respectively.

San Bartolomé performance strengthening due to expanded mining access and cost reductions



  • The Company expanded into the higher-grade Huacajchi area beginning March 11th, which had a favorable impact on production and costs
  • Total tons mined increased 57% from February to March and March silver production rose 47% to 451,746 ounces compared to February. April production increased an additional 23% to 556,000 ounces.
  • Mining in the Huacajchi area is expected to have a favorable impact on production and costs throughout the remainder of the year
  • First quarter production totaled 1.0 million ounces of silver at cash operating costs of $9.98 per ounce
  • Full year 2010 production is expected to reach approximately 6.0 million silver ounces at cash operating costs of $8.50 per ounce
San Bartolomé, one of the world's largest pure silver mines, began operations in June 2008 with an expected 14-year mine life. Reserves at the beginning of this year totaled 120 million ounces of silver.

Kensington on-track for July startup



  • Gold production of 50,000 ounces is expected for 2010
  • Commissioning work for the mill is now complete
  • Underground drilling and blasting is now in process
  • Crusher has been commissioned - final modifications are being completed
  • 90% of the tailings line is now complete
  • Construction of the underground paste backfill plant and water treatment facilities is on schedule
Capital expenditures at Kensington during the quarter totaled $30 million. The Company estimates remaining 2010 capital expenditures to be approximately $28 million in the second quarter, approximately $13 million in the third quarter, and approximately $10 million in the fourth quarter.

Based on an initial 12.5 year mine life from current proven and probable mineral reserves of 1.5 million ounces, the Company expects gold production to average approximately 125,000 ounces annually.

Summary of Company liquidity

The Company's cash balance as of April 30, 2010 was approximately $65 million. The Company expects operating cash flow to continue to grow through the remainder of the year and expects capital expenditures to continue to decline.

Based on year-to-date average realized prices, the Company expects 2010 operating cash flow to reach approximately $186 million3, which is sufficient to fund the Company's 2010 capital expenditure program that will complete the construction of its three new major precious metals mines. Capital expenditures are expected to total approximately $165 million for 20104.

In addition to the continued growth in cash flow, the Company has taken steps in 2010 to further reduce its remaining indebtedness. Year-to-date, the Company has eliminated a total of $120 million of outstanding debt, resulting in a conservative debt-to-equity ratio of 10.9%, which represents a 49% reduction compared to March 31, 20095. With the remaining outstanding balances on the Company's convertible debentures reduced to a total of $50.6 million4, the Company has now ceased its debt-for-equity exchange programs. Since the beginning of 2009, these programs eliminated over $359 million of indebtedness.

The Company had approximately 88.3 million shares outstanding as of May 7, 2010.

Exploration update

In the three months ended March 31, 2010, the Company spent approximately $3.8 million on its global exploration program. The majority of this was devoted to exploration of its large operating properties.

Palmarejo (Mexico)

The first quarter's largest program was devoted to drilling around the Palmarejo mine from both surface and underground platforms, which continued to intersect silver and gold mineralization. Over 11,400 meters (37,400 feet) of core drill was completed in the quarter. In addition, drilling recommenced on the Guadalupe Norte target at the north end of the long Guadalupe mineral system in the Palmarejo District.

Argentina

In the first quarter of 2010, the Company commenced a fourth drilling phase at the Joaquin property on which the Company has an option to acquire a majority, managing joint venture interest. Nearly 3,800 meters (12,500 feet) of drilling was completed at the La Negra and La Morocha targets and several new targets were identified to the north of La Negra from surface sampling and mapping during the quarter.

Kensington (USA)

Two new veins were exposed during the first quarter while completing a new exploration drill drift and a new target was identified in the footwall of the Kensington zones from this work. Exploration activities consisted of continued mapping and sampling.

Agreement signed to sell Cerro Bayo to further rationalize Company's asset portfolio

On May 1, 2010, the Company signed a definitive Share and Asset Purchase Agreement with Mandalay Resources Corporation ("Mandalay") (TSX-V: MND) to sell 100% of Coeur's wholly-owned subsidiary Compania Minera Cerro Bayo ("Minera Cerro Bayo") for approximately $20 million in total estimated consideration. The chief asset of Minera Cerro Bayo is the Cerro Bayo silver-gold mine in southern Chile, which the Company has had on care and maintenance since October 2008.

Under the terms of the agreement, Coeur will receive the following from Mandalay in exchange for all of the outstanding shares of Minera Cerro Bayo:



  • $6,029,000 in cash;
  • Common shares of Mandalay worth CAD$5,000,000 valued at the closing price of the equity financing described below;
  • 125,000 ounces of silver to be delivered in six equal installments commencing in Q3, 2011;
  • A 2.0% Net Smelter Royalty on production from Cerro Bayo in excess of a cumulative 50,000 oz of gold and 5,000,000 oz of silver; and
  • Existing value-added taxes collected from the Chilean government in excess of $3.5 million
As part of the transaction, Mandalay will also pay the next $6,000,000 of reclamation costs associated with Minera Cerro Bayo's nearby Furioso property. The Company expects this amount to be adequate to complete the remaining reclamation work. Any reclamation costs above this amount would be shared equally by Mandalay and Coeur.

The transaction is subject to several conditions, including completion of an equity financing by Mandalay to fund the cash portion of the purchase price, restart costs and working capital, and appropriate regulatory approval. The transaction is expected to close by the end of May.

___________________________

1 Non-GAAP measure. Amount equal to cash flow from operations (US GAAP) less changes in operating assets and liabilities as set forth in the Company's consolidated statement of cash flows. See table on page 6 for a reconciliation of operating cash flow to cash provided by/(used in) operating activities. 2 Cash operating costs per ounce of silver is a non-GAAP measure. See table on page 9 for a reconciliation of cash operating costs to production costs applicable to sales including depreciation, depletion and amortization. 3 Excludes $23 million of corporate general and administrative and exploration expenses 4 Includes capitalized interest of approximately $10 million and capitalized exploration of $5 million 5 Includes debt-for-equity exchanges completed since the end of the first quarter 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 http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedar.com%2F&esheet=6283570&lan=en_US&anchor=www.sedar.com&index=1&md5=87b3eeaa11a3c0c793733f23b286048c.

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://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov%2Fedgar.shtml&esheet=6283570&lan=en_US&anchor=http%3A%2F%2Fwww.sec.gov%2Fedgar.shtml&index=2&md5=917447bf15cf83280c5048cc76ba3f99.

About Coeur

Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer. Coeur is also a recognized leader in environmental stewardship and worker safety, with nine national and international awards earned over the past year. The Company's three new long-life mines include the San Bartolomé silver mine in Bolivia which began operations in 2008, the Palmarejo silver/gold mine in Mexico, which began operations in 2009, and the Kensington gold mine in Alaska, which is planned to begin operations in July. The Company also owns underground mines in southern Chile and Argentina and one surface mine in Nevada, and owns a non-operating interest in a low-cost mine in Australia. The Company conducts exploration activities in Alaska, Argentina, Chile and Mexico. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, and 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 http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.coeur.com&esheet=6283570&lan=en_US&anchor=www.coeur.com&index=3&md5=7962531995a6259c9ae8fbb907b016a6

Conference Call Information

Coeur will hold a conference call to discuss the Company's first quarter results at 1:00 p.m. Eastern time on May 10, 2010. To listen live via telephone, call (866) 853-4681 (US and Canada) or (660) 422-4718 (International). The conference ID number is 71023679. The conference call and presentation will also be webcast on the Company's web site http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.coeur.com&esheet=6283570&lan=en_US&anchor=www.coeur.com&index=4&md5=e33a4b12b3e95f35c0903649ba4e211e. A replay of the call will be available through May 17, 2010. The replay dial-in numbers are (800) 642-1687 (US and Canada) and (706) 645-9291 (International) and the access code is 71023679. 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 and operating cash flow. 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 cash flow from operations (US GAAP) less working capital changes as set forth in the cash flow statement. We believe operating cash flow is an important measure in assessing the Company's overall financial performance. The following table provides a reconciliation of operating cash flow to cash provided by (used in) operating activities:






Three Months Ended March 31,

2010


2009

(In thousands)






Cash provided by/(used in) operations:
($9,230)
$ 3,046 Changes in operating assets and liabilities:



Receivables and other current assets
11,287
(2,653) Inventories
2,657
5,162 Accounts payable and accrued liabilities
23,000
1,239 OPERATING CASH FLOW
$27,714
$6,794




The following table presents information by mine and consolidated sales information for the three-month periods ended March 31, 2010 and 2009:






Three Months Ended March 31,


2010


2009
Palmarejo(A)



Tons milled

458,006


-
Ore grade/Ag oz

3.91


-
Ore grade/Au oz

0.05


-
Recovery/Ag oz (A)

72.7 %

-
Recovery/Au oz (A)

92.1 %

-
Silver production ounces

1,300,593


-
Gold production ounces

22,577


-
Cash operating costs/oz
$ 5.41


-
Cash cost/oz
$ 5.41


-
Total production cost/oz
$ 21.39


-
San Bartolomé



Tons milled

293,106


363,779
Ore grade/Ag oz

3.74


6.80
Recovery/Ag oz

94.8 %

85.4 % Silver production ounces

1,039,926


2,113,551
Cash operating costs/oz
$ 9.98

$ 6.74
Cash cost/oz
$ 10.84

$ 8.17
Total production cost/oz
$ 13.89

$ 10.62
Martha Mine



Tons milled

17,575


27,817
Ore grade/Ag oz

24.59


31.69
Ore grade/Au oz

0.03


0.04
Recovery/Ag oz

84.5 %

91.7 % Recovery/Au oz

88.5 %

84.4 % Silver production ounces

365,226


808,007
Gold production ounces

515


973
Cash operating costs/oz
$ 15.47

$ 5.74
Cash cost/oz
$ 15.95

$ 6.21
Total production cost/oz
$ 22.31

$ 7.62
Rochester(B)



Silver production ounces

522,159


469,861
Gold production ounces

2,690


2,818
Cash operating costs/oz
$ 1.68

$ 2.82
Cash cost/oz
$ 2.35

$ 3.36
Total production cost/oz
$ 3.37

$ 4.44
Endeavor



Tons milled

129,872


166,971
Ore grade/Ag oz

3.27


1.19
Recovery/Ag oz

48.1 %

71.5 % Silver production ounces

204,253


141,814
Cash operating costs/oz
$ 7.40

$ 4.94
Cash cost/oz
$ 7.40

$ 4.94
Total production cost/oz
$ 10.63

$ 7.52
CONSOLIDATED PRODUCTION TOTALS(C)



Silver ounces

3,432,157


3,533,233
Gold ounces

25,782


3,791
Cash operating costs/oz
$ 7.41

$ 5.92
Cash cost per oz/silver
$ 7.83

$ 6.95
Total production cost/oz
$ 15.84

$ 8.99
CONSOLIDATED SALES TOTALS (D)



Silver ounces sold

3,633,695


3,224,285
Gold ounces sold

25,734


5,096
Realized price per silver ounce
$ 16.84

$ 12.34
Realized price per gold ounce
$ 1,104

$ 876
(A) Palmarejo achieved commercial production on April 20, 2009. (B) The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the ultimate recovery to be approximately 61.5% for silver and 93% for gold. However, ultimate recoveries will not be known until leaching operations cease, which is currently estimated for 2014. Current recovery may vary significantly from ultimate recovery. (C) Current production ounces and recoveries reflect final metal settlements of previously reported production ounces. (D) Units sold at realized metal prices will not match reported metal sales due primarily to the effects on revenues of mark-to-market adjustments on embedded derivatives in the Company's provisionally priced sales contracts.

"Operating Costs per Ounce" and "Cash Costs per Ounce" are calculated by dividing the operating cash costs and cash costs computed for each of the Company's mining properties for a specified period by the amount of gold ounces or silver ounces produced by that property during that same period. Management uses cash operating costs and cash costs per ounce as key indicators of the profitability of each of its mining properties. Gold and silver are sold and priced in the world financial markets on a U.S. dollar per ounce basis.

"Cash Operating Costs" and "Cash Costs" are costs directly related to the physical activities of producing silver and gold, and include mining, processing and other plant costs, third-party refining and smelting costs, marketing expenses, on-site general and administrative costs, royalties, in-mine drilling expenditures that are related to production and other direct costs. Sales of by-product metals are deducted from the above in computing cash costs. Cash costs exclude depreciation, depletion and amortization, accretion, corporate general and administrative expenses, exploration, interest, and pre-feasibility costs. Cash operating costs include all cash costs except production taxes and royalties, if applicable. Cash costs are calculated and presented using the "Gold Institute Production Cost Standard" applied consistently for all periods presented.

Total operating costs, cash operating costs per ounce and cash costs per ounce are non-U.S. GAAP measures and investors are cautioned not to place undue reliance on them it and are urged to read all U.S. GAAP accounting disclosures presented in the consolidated financial statements and accompanying footnotes. In addition, see the reconciliation of "cash operating costs per ounce" and "cash costs per ounce" to production costs set forth below.

The following tables present a reconciliation between non-U.S. 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 U.S. GAAP:


THREE MONTHS ENDED MARCH 31, 2010

(In thousands except ounces and per ounce costs)
















Palmarejo(1)


San Bartolomé


Martha


Rochester


Endeavor


Total














Production of silver (ounces)

1,300,593


1,039,926


365,226


522,159

204,253


3,432,157
Cash operating cost per ounce
$ 5.41

$ 9.98

$ 15.47

$ 1.68
$ 7.40

$ 7.41
Cash costs per ounce
$ 5.41

$ 10.84

$ 15.95

$ 2.35
$ 7.40

$ 7.83













Total Operating Cost (Non-U.S. GAAP)

7,030


10,379


5,648


878

1,511


25,446
Royalties

-


892


177


-

-


1,069
Production taxes

-


-


-


348

-


348













Total Cash Costs (Non-U.S. GAAP)

7,030


11,271


5,825


1,226

1,511


26,863
Add/Subtract:











Third party smelting costs

(784 )

-


(693 )

-

(264 )

(1,741 ) By-product credit (2)

25,045


-


571


2,988

-


28,604
Other adjustments

-


-


6


68

-


74
Change in inventory

(3,408 )

(1,868 )

1,617


1,507

(629 )

(2,781 ) Depreciation, depletion and amortization

20,793


3,177


2,317


465

660


27,412













Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)
$ 48,676

$ 12,580

$ 9,643

$ 6,254
$ 1,278

$ 78,431













THREE MONTHS ENDED MARCH 31, 2009

(In thousands except ounces and per ounce costs)



Palmarejo


San Bartolomé


Martha


Rochester


Endeavor


Total

Production of silver (ounces)

-


2,113,551


808,007


469,861

141,814


3,533,233
Cash operating costs per ounce
$ -

$ 6.74

$ 5.74

$ 2.82
$ 4.94

$ 5.92
Cash costs per ounce
$ -

$ 8.17

$ 6.21

$ 3.36
$ 4.94

$ 6.95













Total operating cost (Non-U.S. GAAP)
$ -

$ 14,247

$ 4,635

$ 1,326
$ 701

$ 20,909
Royalties

-


3,024


384


--

--


3,408
Production taxes

-


--


--


254

--


254













Total cash costs (Non-U.S. GAAP)

-


17,271


5,019


1,580

701


24,571
Add/Subtract:











Third party smelting costs

-


--


(1,467 )

--

(272 )

(1,739 ) By-product credit

-


--


883


2,557

--


3,440
Other adjustments

-


8


--


35

--


43
Change in inventory

-


(2,091 )

35


535

(73 )

(1,594 ) Depreciation, depletion and amortization

-


5,173


1,140


470

365


7,148













Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)
$ -

$ 20,361

$ 5,610

$ 5,177
$ 721

$ 31,869
(1)

The Palmarejo gold production royalty is currently reflected as a minimum royalty obligation which commenced on July 1, 2009 and ends when payments have been made on a total of 400,000 ounces of gold, at which time a royalty expense will be recorded. (2)

Amounts include final metal settlement adjustments.




COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)








March 31,
December 31,


2010




2009


ASSETS
(In thousands, except share data)






CURRENT ASSETS



Cash and cash equivalents
$ 55,962

$ 22,782
Receivables

74,662


58,981
Ore on leach pad

7,661


9,641
Metal and other inventory

71,754


67,712
Prepaid expenses and other

25,211


26,920



235,250


186,036
NON-CURRENT ASSETS



Property, plant and equipment, net

550,854


539,037
Mining properties, net

2,254,769


2,240,056
Ore on leach pad, non-current portion

14,985


14,391
Restricted assets

27,391


26,546
Receivables, non current

36,505


37,534
Debt issuance costs, net

7,263


3,544
Deferred tax assets

2,077


2,355
Other

4,408


4,536
TOTAL ASSETS
$ 3,133,502

$ 3,054,035



LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES



Accounts payable
$ 58,398

$ 77,003
Accrued liabilities and other

24,243


33,517
Accrued income taxes

10,742


11,783
Accrued payroll and related benefits

9,612


9,815
Accrued interest payable

670


1,744
Current portion of capital leases and other debt obligations

51,155


15,403
Current portion of royalty obligation

35,551


34,672
Current portion of reclamation and mine closure

4,673


4,671



195,044


188,608
NON-CURRENT LIABILITIES



Long-term debt

190,697


185,397
Non-current portion of royalty obligation

128,119


128,107
Reclamation and mine closure

34,837


35,241
Deferred income taxes

504,827


516,678
Other long-term liabilities

7,545


6,799



866,025


872,222
COMMITMENTS AND CONTINGENCIES








SHAREHOLDERS' EQUITY



Common Stock, par value $0.01 per share; authorized 150,000,000 shares, 86,061,082 issued at March 31, 2010 and 80,310,347 issued at December 31, 2009.

861


803
Additional paid-in capital

2,531,454


2,444,262
Accumulated deficit

(459,882 )

(451,865 ) Accumulated other comprehensive income

-


5



2,072,433


1,993,205
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 3,133,502

$ 3,054,035



COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)






Three Months Ended March 31,




2010




2009




(In thousands, except per share data)






Sales of metal
$ 87,505

$ 45,084
Production costs applicable to sales

(51,019 )

(25,930 ) Depreciation, depletion and amortization

(28,773 )

(8,532 ) Gross profit

7,713


10,622
COSTS AND EXPENSES



Administrative and general

6,717


7,548
Exploration

2,520


3,827
Care and maintenance and other

1,463


1,526
Total cost and expenses

10,700


12,901
OPERATING LOSS

(2,987 )

(2,279 ) OTHER INCOME AND EXPENSE



Gain (loss) on debt extinguishments

(7,858 )

15,703
Fair value adjustments, net

(4,258 )

(9,402 ) Interest and other income

1,396


1,043
Interest expense, net of capitalized interest

(5,805 )

(765 ) Total other income and expense

(16,525 )

6,579
Income (loss) from continuing operations before income taxes

(19,512 )

4,300
Income tax benefit

11,495


85
Income (loss) from continuing operations

(8,017 )

4,385
Income from discontinued operations, net of income taxes

-


1,673
NET INCOME (LOSS)

(8,017 )

6,058
Other comprehensive loss

-


(1 ) COMPREHENSIVE INCOME (LOSS)
$ (8,017 )
$ 6,057





BASIC AND DILUTED INCOME PER SHARE



Basic income per share:



Income (loss) from continuing operations
$ (0.10 )
$ 0.07
Income from discontinued operations

-


0.03
Net income (loss)
$ (0.10 )
$ 0.10





Diluted income per share:



Income (loss) from continuing operations
$ (0.10 )
$ 0.07
Income from discontinued operations

-


0.03
Net income (loss)
$ (0.10 )
$ 0.10





Weighted average number of shares of common stock



Basic

81,753


61,145
Diluted

81,753


61,160













COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Three Months Ended March 31, 2010

(In thousands, except share data)

(Unaudited)
















Common

Stock

Shares


Common

Stock

Par Value


Additional

Paid-In

Capital


Accumulated

(Deficit)


Accumulated Other

Comprehensive

Income (Loss)


Total














Balances at December 31, 2009
80,310

$ 803
$ 2,444,262

$ (451,865 )
5


1,993,205













Net loss
-


-

-


(8,017 )
-


(8,017 ) Common stock issued for payment of principal, interest and financing fees on 6.5% Senior Secured Notes
1,009


10

14,540


-

-


14,550
Common stock issued to extinguish 3.25% and 1.25% debt
4,756


48

72,693


-

-


72,741
Common stock cancelled under long-term incentive plans, net
(14 )

-

(41 )

-

-


(41 ) Other
-


-

-


-

(5 )

(5 )












Balances at March 31, 2010
86,061

$ 861
$ 2,531,454

$ (459,882 )
-

$ 2,072,433



COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






Three Months Ended March 31,

2010


2009



(In Thousands)




CASH FLOWS FROM OPERATING ACTIVITIES:



Net income (loss)
$ (8,017 )
$ 6,058
Add (deduct) non-cash items:



Depreciation and depletion

28,773


9,279
Accretion of royalty obligation

4,992


-
Deferred income taxes

(11,337 )

(1,514 ) Loss (gain) on debt extinguishment

7,858


(15,703 ) Fair value adjustments, net

3,672


6,958
Loss (gain) on foreign currency transactions

350


(66 ) Share-based compensation

1,387


1,703
Other non-cash charges

36


79
Changes in operating assets and liabilities:



Receivables and other current assets

(11,287 )

2,653
Inventories

(2,657 )

(5,162 ) Accounts payable and accrued liabilities

(23,000 )

(1,239 )




CASH PROVIDED (USED) BY OPERATING ACTIVITIES

(9,230 )

3,046





CASH FLOWS FROM INVESTING ACTIVITIES:



Purchases of investments

-


(7,358 ) Proceeds from sales of investments

-


15,252
Capital expenditures

(47,189 )

(78,130 ) Other

(74 )

(142 )




CASH USED IN INVESTING ACTIVITIES

(47,263 )

(70,378 )




CASH FLOWS FROM FINANCING ACTIVITIES:



Proceeds from sale of gold production royalty

-


75,000
Payments on gold production royalty

(8,951 )

-
Proceeds from issuance of short-term and senior convertible notes

100,000


20,368
Proceeds from gold lease facility

4,517


-
Payments on gold lease facility

(14,891 )

(1,627 ) Proceeds from bank borrowings

11,971


-
Repayment of credit facility, long-term debt and capital leases

(5,710 )

(8,950 ) Payments of common stock and debt issuance costs

(2,156 )

(73 ) Proceeds from sale-leaseback transactions

4,853


-
Additions to restricted assets associated with the Kensington Term Facility

(798 )

-
Other

40


-





CASH PROVIDED BY FINANCING ACTIVITIES:

89,673


84,718





INCREASE IN CASH AND CASH EQUIVALENTS

33,180


17,386





Cash and cash equivalents at beginning of period

22,782


20,760
Cash and cash equivalents at end of period
$ 55,962

$ 38,146
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SOURCE: Coeur d'Alene Mines Corporation

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