Coeur reports record silver production

COEUR d'ALENE - Despite a loss of $31.9 million in 2009, Coeur d'Alene Mines Corporation saw record silver production and reserves at year-end.

Total 2009 silver production increased 47 percent while gold production grew more than 56 percent compared to 2008 levels.

"2009 was a defining year for Coeur," said Dennis E. Wheeler, chairman, president and chief executive officer. "Our San Bartolome silver mine completed its first full year of operations and we commenced production in Mexico at our large Palmarejo silver and gold mine."

In addition, the U.S. Supreme Court reversed a lower court decision in June, which has allowed Coeur to begin final construction at its Kensington gold mine in Alaska where it expects production to begin in the third quarter.

"As we look ahead we expect another strong year of silver production and we anticipate doubling our gold production, thanks to the first full year of production at Palmarejo and the expected third quarter start-up at Kensington," Wheeler said.

He said Coeur's three key objectives entering 2010 are to continue to optimize silver recoveries at Palmarejo; return to full scale operations at San Bartolome above the 4,400 meter level; and achieve planned gold production following startup of its Kensington gold mine.

The company reported a net loss of $31.9 million, or 44 cents per share, for the full year 2009, compared to a net loss of $0.6 million, or 1 cent per share in 2008.

Included in the 2009 full year net loss are $82.7 million, before tax, of non-cash mark-to-market adjustments the company is required to make each period primarily due to changes in metals prices.

"Between existing cash and cash equivalents, unused availability under established credit facilities, and cash flow from operations during the year, the company is well-positioned to support its 2010 planned capital expenditures," according to a press release.

As of Tuesday, Coeur has 81,431,083 outstanding common shares.