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Coeur dAlene Mines Corp. Reports Operating Results (10-K)

March 01, 2011 | About:
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10qk

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Coeur dAlene Mines Corp. (CDE) filed Annual Report for the period ended 2010-12-31.

Coeur Dalene Mines Corp. has a market cap of $2.81 billion; its shares were traded at around $31.51 with and P/S ratio of 9.4. Hedge Fund Gurus that owns CDE: Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CDE: David Dreman of Dreman Value Management.

Highlight of Business Operations:

At December 31, 2010, the Company had outstanding provisionally priced sales of $35.7 million consisting of 0.6 million ounces of silver and 12,758 ounces of gold, which had a fair value of approximately $37.4 million including the embedded derivative. For each one cent per ounce change in realized silver price, revenue would vary (plus or minus) approximately $6,000 and for each one dollar per ounce change in realized gold price, revenue would vary (plus or minus) approximately $12,800. At December 31, 2009, the Company had outstanding provisionally priced sales of $19.1 million consisting of 1.0 million ounces of silver and 1,227 ounces of gold, which had a fair value of approximately $19.1 million including the embedded derivative. For each one cent per ounce change in realized silver price, revenue would vary (plus or minus) approximately $10,000 and for each one dollar per ounce change in realized gold price, revenue would vary (plus or minus) approximately $1,200.

The Company reported ore on leach pad of $18.0 million as of December 31, 2010. Of this amount, $8.0 million is reported as a current asset and $10.0 million is reported as a non-current asset. The distinction between current and non-current is based upon the expected length of time necessary for the leaching process to remove the metals from the broken ore. The historical cost of the metal that is expected to be extracted within twelve months is classified as current and the historical cost of metals contained within the broken ore that will be extracted beyond twelve months is classified as non-current. Inventories of ore on leach pad are valued based on actual production costs incurred to produce and place ore on the leach pad, adjusted for effects on monthly production of costs of abnormal production levels, less costs allocated to minerals recovered through the leach process.

During 2010 MSHA proposed penalties of $5,198 against the Kensington mine, issued eleven citations pursuant to Section 104 of FMSHA for violations of mandatory health or safety standards that could significantly and substantially contribute to a mine safety or health hazard. With respect to the Rochester mine, MSHA proposed penalties of $4,525 in 2010, and issued eight citations pursuant to Section 104, including one citation pursuant to Section 104(d) of FMSHA for unwarrantable failures to comply with mandatory health or safety standards.

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