EX-99.1 2 cmw3399a.htm PRESS RELEASE

COEUR REPORTS FOURTH QUARTER AND
YEAR-END 2007 RESULTS

2007 AND RECENT HIGHLIGHTS

  • 2007 production of 11.5 million ounces of silver and 92,014 ounces of gold
  • 2007 cash costs of $3.97 per ounce of silver
  • 3.1 million ounces of quarterly silver production, a 16% increase compared to last quarter
  • Fourth quarter cash costs of $2.73/oz of silver, a 46% reduction from the prior quarter
  • Completed acquisitions of Bolnisi Gold NL and Palmarejo Silver and Gold Corporation
  • Martha mill commissioned with subsequent improvement expected in operating costs
  • San Bartolomé mine in pre-commissioning – more than six million ounces of silver production expected during remainder of 2008
  • Feasibility study for Palmarejo nearing completion; construction activities well underway
  • Operations team substantially bolstered by several new key additions

COEUR D’ALENE, Idaho – February 29, 2008 — Coeur d’Alene Mines Corporation (NYSE:CDE, TSX:CDM, ASX:CXC) today announced fourth quarter net income of $14.3 million, or $0.05 per share, compared to net income of $23.2 million, or $0.08 per share during the fourth quarter of 2006. For the year ended December 31, 2007, net income totaled $43.9 million, or $0.15 per share, compared to net income of $75.4 million, or $0.28 per share, in 2006(1).

Dennis E. Wheeler, Coeur’s Chairman, President and Chief Executive Officer, commented, “2007 represents one of the most significant years in Coeur’s history. We completed the largest transaction in the silver industry’s history by acquiring Bolnisi Gold and Palmarejo Silver and Gold, which adds the new, transformational Palmarejo silver/gold project to Coeur’s portfolio. Combined with our San Bartolomé pure silver mine in Bolivia which is now nearing production, Coeur provides investors with a silver investment vehicle like no other – a dynamic growth profile in silver production during 2008 and into 2009; substantial reductions in companywide cash costs to an industry-leading level; large, high-quality and well-diversified silver reserves and resources; and a continued commitment to exploration on our large landholdings in many of the world’s most prospective silver regions.”

“Coeur now possesses the largest and highest-quality reserve and resource base in our history. Our focus in 2008 will be to maximize the value of these ounces by achieving full-scale production at San Bartolomé in Bolivia, by applying the Company’s project development expertise to advance Palmarejo towards production in early 2009, and by building on the current momentum in Alaska to move Kensington closer to production.”

Commenting on Coeur’s current operations, Mr. Wheeler said, “At our existing mines, Coeur’s number one priority in 2008 is to get Cerro Bayo back on-track – reducing the mine’s operating costs and increasing its silver and gold production. The performance at Cerro Bayo in 2007 was disappointing. That said, we believe we have the right people and the right plan in place to address the mine’s issues. Our two Australian assets are now both performing very well, generating a significant return on our investments we made there in 2005. Finally, the newly completed mill at Martha will result in an extension to its mine life and reduced costs going forward.”

1     Excludes gain from the sale of Coeur Silver Valley of $11.1 million as well as $2.0 million of income from Coeur Silver Valley prior to the sale.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 1 of 15 

“During 2007, Coeur added significantly to its operating team. As Senior Vice President of Operations, Richard Weston now leads a group of new operations Vice Presidents and General Managers who will work tirelessly to maximize the value of all of Coeur’s assets,” Mr. Wheeler added.

Regarding silver prices, Mr. Wheeler said, “We remain bullish on the outlook for silver prices. The overall supply/demand fundamentals appear to remain strong, with investment demand continuing to be a key driver. New uses for silver and overall industrial demand also add to the positive outlook. Although some new supply will come on-stream in 2008, it does not appear that it will be enough to outpace the growth in demand.”

Balance Sheet and Capital Investment Highlights 

The Company ended 2007 with $151.7 million in cash, equivalents and short term investments.  Capital expenditures totaled $217.0 million during 2007 and $59.9 million during the fourth quarter.

Overview of Growth Projects

San Bartolomé – Imminent Producer

• As reported on February 12, the San Bartolomé mine has begun pre-commissioning activities at the site in Potosi, Bolivia. The processing of ore is expected to begin by the end of March.  Production and plant utilization will then steadily increase with full plant capacity anticipated to be reached by the end of July.
• San Bartolomé is expected to produce over six million ounces of silver during 2008. Operating cash costs once the plant reaches full-scale operations in August through the end of the year are expected to be $4.10 per ounce of silver (excluding royalties and production taxes of $2.03 per ounce). The Company anticipates full-year 2009 production from San Bartolomé to be approximately nine million ounces of silver.
• San Bartolomé currently has 153.0 million ounces of silver mineral reserves and 34.5 million ounces of additional indicated mineral resource, which is expected to provide sufficient ounces to support an estimated mine life of 14 years.
• Capital expenditure in 2008 necessary to complete San Bartolomé are expected to total $100 million.
• The Company has announced the appointment of Rick Irvine as Vice President and General Manager of San Bartolomé. Rick is a mining engineer with 17 years of mining experience in Canada, Argentina, Chile, Honduras, Nicaragua, and Bolivia.

Palmarejo – Coeur’s Next Major Producer

• Coeur completed the acquisitions of Bolnisi Gold NL and Palmarejo Silver and Gold Corporation on December 21, 2007.

• Capital costs to achieve commercial production at Palmarejo are estimated to total approximately $225 million.
• Construction activities are well underway with approximately 100 operating personnel and 300 construction workers now on-site.
• Design and engineering is complete.
  ° Mine planning is well advanced.
  ° Alternative tailings dam design is well advanced.
  ° Relocation of surface facilities to upper plant site is complete.
  ° Developing new resource at Guadalupe is underway.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 2 of 15 
• Internal feasibility study expected is to be completed in second quarter, with subsequent third party review planned.
• Earlier this year, the Company announced the appointment of Stuart Mathews as Vice President and General Manager of Palmarejo. Stuart has more than twenty years of experience in mine development and operations.

Mineral Resources
Short Tons Grade (ounces/ton)
 Contained Ounces (000s)
(000s)
 Gold
 Silver
 Gold
 Silver
Measured Palmarejo   5,622 0.07 5.78 367 32,520

Indicated		 Palmarejo   9,700 0.06 5.40 571 52,390
Guadalupe      783 0.06 4.84   49   3,790

Measured plus Indicated		 16,105 0.06 5.51 987 88,700

Inferred		 Palmarejo   4,960 0.04 4.49 203 22,290
Guadalupe   8,818 0.04 3.98 345 35,120
La Patria   3,968 0.04 1.02 171   4,030
Subtotal 17,746 0.04 3.46 719 61,440
0.023 ounces per ton Au equivalent cut-off grade for Palmarejo and La Patria deposits and the Guadalupe deposit above 150 meters depth. A cut-off grade of 0.073 (2.5 grams per tonne) applied to Guadalupe below 150 meters depth.

Kensington – Major Milestones Achieved in 2007

• Coeur announced in its third quarter 2007 results that Kensington’s mill, related surface facilities and the two-and-a-half mile tunnel connecting Kensington and the Jualin properties are now 100% complete. The remaining major item to be constructed is the tailings disposal facility.
• During the fourth quarter, the Mayor of Juneau announced that the Conservation Groups and Coeur Alaska asked the U.S. Forest Service to examine the use of an alternative site for disposal of the mine’s tailings using paste technology. In January of 2008, Coeur Alaska submitted a modified plan of operation to the U.S. Forest Service for its approval which included input from the Conservation Groups. Coeur expects this submission to pave the way for final permit applications, review and approval so that construction of the tailings disposal facility can begin.
• The Company has announced the promotion of Tom Henderson to Vice President and General Manager for Coeur Alaska. Tom has a total of 29 years of large-scale underground mining operations experience.
• The State of Alaska and Coeur Alaska are appealing a Ninth Circuit ruling which invalidated a permit for tailings disposal at Kensington. The Petitions for Certiorari to the U.S. Supreme Court are now pending.
• Once in production, the Kensington Mine is expected to produce 140,000 ounces of gold per year in its initial years. Kensington has an initial mine life of ten years based on current proven and probable gold mineral reserves of 1.4 million ounces.

Overview of Operations

Rochester

• Rochester produced 1.1 million ounces of silver and 9,728 ounces of gold during the fourth quarter and 4.6 million ounces of silver and 50,400 ounces of gold during 2007. Cash costs during the fourth quarter were negative ($2.49) per ounce of silver and $1.52 per ounce of silver for the entire year. In 2008, Coeur expects Rochester to produce approximately 1.3 million ounces of silver and 24,500 ounces of gold at cash costs similar to those experienced during the fourth quarter of 2007.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 3 of 15 
• As scheduled, mining activities at Rochester ceased in August 2007 as the mine entered its residual leaching phase, which is expected to continue through 2011. Cash costs are expected to remain low due to this transition to processing-only operations.
• Coeur is pursuing a sale of this wholly owned subsidiary and expects the process to be completed by the end of the second quarter.
• New silver, gold and base metal mineralization discovered during the fourth quarter of 2007.

Martha

• Commissioning of a new 240 tonne per day flotation mill is nearly completed and will accommodate annual silver production of as much as three million ounces of silver. Previously, Martha’s ore was trucked to Cerro Bayo in Chile for processing. With the commissioning of this new mill, these transportation costs will be eliminated. In addition, the mine’s cut-off grade will now be reduced, allowing the overall mine life to be extended due to the inclusion of additional reserves into the operation’s mine plan. The Company is projecting 2008 production to exceed 3.0 million ounces of silver at cash costs of under $5.00 per ounce.
• Martha produced 772,000 ounces of silver during the fourth quarter and 2.7 million ounces of silver during the full-year of 2007. Cash costs during the fourth quarter were $6.10 per ounce of silver and $6.27 per ounce of silver for the entire year.
• Fourth quarter cash costs were 26.8% lower than last quarter’s cash costs due to a 38.4% increase in grade. Compared to last year’s fourth quarter, cash costs were 4% higher.
• As of December 31, 2007, Martha’s proven and probable silver mineral reserves totaled 8.3 million ounces.

Cerro Bayo

• Cerro Bayo produced 564,175 ounces of silver and 10,600 ounces of gold during the fourth quarter and 1.7 million ounces of silver and 37,500 ounces of gold during 2007. Cash costs during the fourth quarter were $7.75 per ounce of silver and $8.22 per ounce of silver for the entire year.
• Don Gray was appointed Vice President and General Manager of Compania Minera Cerro Bayo, Coeur’s wholly owned subsidiary that owns and operates the Cerro Bayo Mine. Don has an engineering mining degree from the University of Idaho and a master’s degree in civil engineering from Massachusetts Institute of Technology, with more than 27 years of operational and developmental mining experience.
• The Company has implemented a recovery plan which includes improvement in mining methods and productivity, an organizational restructuring, reduced workforce, and a cost improvement program. During 2008, Cerro Bayo is expected to demonstrate improved performance each quarter, particularly the third and fourth quarters. The Company anticipates 2008 production to be 2.5 million ounces of silver and 40,000 ounces of gold at cash costs of $3.14 per ounce of silver.
• As of December 31, 2007, Cerro Bayo contained 7.2 million ounces of proven and probable silver mineral reserves and 112,000 ounces of proven and probable gold reserves.

Broken Hill

• Coeur acquired the silver contained at the Broken Hill Mine located in New South Wales, Australia in September of 2005 for $36.9 million.
• As of December 31, 2007, Coeur has recouped 86% of its original 2005 investment.
• Broken Hill produced 436,000 ounces of silver during the fourth quarter and 1.6 million ounces of silver during 2007 on Coeur’s behalf.
• Cash costs remained low and relatively fixed due to the nature of the agreement with Perilya, with fourth quarter cash costs of $3.26 per ounce of silver and full-year cash costs of $3.18 per ounce of silver.
• Coeur expects 2008 production from Broken Hill of approximately 2.1 million ounces at cash costs of approximately $3.71 per ounce of silver.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 4 of 15 
• As of December 31, 2007, Broken Hill’s proven and probable silver mineral reserves totaled 17.9 million ounces.

Endeavor

• Coeur acquired the silver contained at the Endeavor Mine located in New South Wales, Australia in May 2005 for $38.5 million with $15.4 million payable at closing. To date, Coeur has recouped 59% of this initial investment.
• The mine has now returned to normal operations after the stope-cave in during 4th quarter of 2006.
• During the fourth quarter, Endeavor produced a record 316,000 ounces of silver for Coeur – 84% higher than the third quarter and 76% higher than last year’s fourth quarter. For the full-year, silver production totaled 772,600 ounces, which was 60% higher than 2006 full-year production.
• Cash costs during the fourth quarter were $2.33 per ounce of silver and were $2.67 per ounce of silver for the full-year. These fourth quarter cash costs are 33% lower than last year’s fourth quarter cash costs and are the result of a 142% increase in silver grades.
• Coeur projects 2008 production from Endeavor of approximately 840,000 ounces of silver at cash costs of approximately $3.62 per ounce of silver.
• As of December 31, 2007, Endeavor’s proven and probable silver mineral reserves totaled 29.9 million ounces.
• Coeur also expects to make the second and final payment of $26.3 million to CBH Resources related to the acquisition of the silver at its Endeavor Mine, which was contingent on CBH achieving certain production and operating thresholds that have now been met.

2008 Outlook 

Coeur currently expects to produce approximately 16 million ounces of silver in 2008, representing nearly a 40% increase over 2007 silver production levels. The company also expects to produce approximately 68,000 ounces of gold during 2008.

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 or gold production hedged, is presently constructing two of the world’s largest silver mines – San Bartolomé in Bolivia and Palmarejo in Mexico; operates two 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 in Alaska and conducts exploration activities in Argentina, Bolivia, Chile, Mexico and Tanzania.  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.

Investor Contact

Tony Ebersole
Director, Investor Relations North America
208-665-0777

John Blue
Director, Investor Relations Australia and Asia
011-612-9223-5053

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 5 of 15 

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 press release 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 third 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 news 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.

This press release might use the terms “Mineralized Material” or “Measured”, “Indicated” and “Inferred” Mineral Resources. U.S. investors are advised that while such terms are recognized and required by Canadian and Australian regulations, the Securities and Exchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their geologic continuity and economic feasibility. Under Canadian rules, estimates of Inferred Resources may not form the basis of a feasibility study. U.S. investors are cautioned not to assume that all or any part of Mineralized Material or Measured, Indicated or Inferred Mineral Resources will ever be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically mineable.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 6 of 15 

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)

Three Months
Ended December 31,		 Twelve Months
Ended December 31,
REVENUES 2007
 2006
 2007
 2006
(In thousands except per share data)

Sales of metal		     $ 59,931   $ 67,072   $ 215,319   $ 216,573  

COSTS AND EXPENSES		  
Production costs applicable to sales    31,034    28,776    117,025    92,378  
Depreciation and depletion    4,315    6,929    20,984    26,772  
Administrative and general    7,285    5,707    23,875    19,369  
Exploration    3,241    3,000    11,941    9,474  
Pre-development    --    --    --    --  
Litigation settlements    --    1,022    507    2,365  

         Total costs and expenses		    45,875    45,434    174,332    150,358  

Operating income		    14,056    21,638    40,987    66,215  

OTHER INCOME AND EXPENSE		  
Interest and other income    5,893    5,721    18,195    18,654  
Interest expense, net of capitalized interest    (116 )  (104 )  (365 )  (1,224 )
         Total other income and expense    5,777    5,617    17,830    17,430  

Income from continuing operations before income taxes		    19,833    27,255    58,817    83,645  
Income tax provision    (5,514 )  (4,072 )  (14,927 )  (8,226 )

INCOME FROM CONTINUING OPERATIONS		    14,319    23,183    43,890    75,419  
Income (loss) from discontinued operations, net of income taxes    --    (33 )  --    1,935  
Gain on sale of net assets of discontinued operations, net of  
    income taxes    --    --    --    11,132  

NET INCOME		    14,319    23,150    43,890    88,486  
Other comprehensive income    (204 )  230    86    2,391  

COMPREHENSIVE INCOME		   $ 14,115   $ 23,380   $ 43,976   $ 90,877  

BASIC AND DILUTED INCOME PER SHARE		  
Basic income per share:  
Income from continuing operations   $ 0.05   $ 0.08   $ 0.15   $ 0.28  
Income from discontinued operations    --    --    --    0.05  
Net income   $ 0.05   $ 0.08   $ 0.15   $ 0.33  

Diluted income per share:		  
Income from continuing operations   $ 0.04   $ 0.08   $ 0.14   $ 0.26  
Income from discontinued operations    --    --    --    0.04  
Net income   $ 0.04   $ 0.08   $ 0.14   $ 0.30  

Weighted average number of shares of common stock		  
   Basic    310,379    277,582    285,972    271,357  
   Diluted    335,082    302,242    310,524    296,082  

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 7 of 15 

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, 2007 and 2006:

Three Months Ended
December 31,
 Twelve Months Ended
December 31,
2007
 2006
 2007
 2006
Rochester                    
    Tons processed    --    2,481,706    5,060,678    10,399,416  
    Ore grade/Ag oz    --    0.72    0.65    0.74  
    Ore grade/Au oz    --    0.01    0.01    0.01  
    Recovery/Ag oz (A)    --    78.8%  141.4%  65.9%
    Recovery/Au oz (A)    --    71.8%  167.6%  68.9%
    Silver production ounces    1,060,129    1,408,544    4,614,780    5,113,504  
    Gold production ounces    9,728    15,926    50,408    71,891  
    Cash cost/oz   $(2.49 ) $3.36   $1.52   $2.80  
    Total cost/oz   $(1.83 ) $6.24   $3.82   $5.84  
Cerro Bayo  
    Tons milled    124,066    106,764    387,378    428,346  
    Ore grade/Ag oz    4.83    6.12    4.68    5.76  
    Ore grade/Au oz    0.09    0.15    0.11    0.10  
    Recovery/Ag oz    94.1%  94.8%  94.4%  94.5%
    Recovery/Au oz    90.9%  94.5%  92.2%  93.0%
    Silver production ounces    564,176    619,906    1,709,830    2,331,060  
    Gold production ounces    10,604    14,869    37,479    40,923  
    Cash cost/oz   $7.75   $0.79   $8.22   $3.04  
    Total cost/oz   $11.28   $3.42   $11.82   $5.46  
Martha Mine  
    Tons milled    9,801    11,076    37,047    35,843  
    Ore grade/Ag oz    83.17    69.58    78.10    79.93  
    Ore grade/Au oz    0.13    0.09    0.12    0.10  
    Recovery/Ag oz    94.8%  94.7%  95.0%  94.7%
    Recovery/Au oz    92.4%  94.2%  92.7%  92.5%
    Silver production ounces    772,778    729,962    2,748,705    2,712,846  
    Gold production ounces    1,189    905    4,127    3,440  
    Cash cost/oz   $6.10   $5.89   $6.27   $4.88  
    Total cost/oz   $6.64   $6.50   $6.78   $5.36  
Endeavor (B)  
    Tons milled    328,013    309,340    1,146,857    750,115  
    Ore grade/Ag oz    2.25    0.93    1.40    1.01  
    Recovery/Ag oz    42.9%  62.9%  48.0%  63.5%
    Silver production ounces    316,057    179,972    772,609    481,991  
    Cash cost/oz   $2.33   $3.46   $2.67   $2.85  
    Total cost/oz   $3.28   $4.33   $3.65   $3.87  
Broken Hill (B)  
    Tons milled    424,285    566,843    1,646,203    2,288,355  
    Ore grade/Ag oz    1.22    1.14    1.19    1.28  
    Recovery/Ag oz    84.3%  77.4%  83.6%  74.2%
    Silver production ounces    435,611    501,872    1,642,205    2,174,585  
    Cash cost/oz   $3.26   $3.16   $3.18   $3.09  
    Total cost/oz   $5.03   $5.12   $5.04   $5.44  
CONSOLIDATED PRODUCTION TOTALS  
    Silver ounces    3,148,751    3,440,256    11,488,129    12,813,986  
    Gold ounces    21,521    31,700    92,014    116,254  
    Cash cost per oz/silver   $2.73   $3.41   $3.97   $3.33  
    Total cost/oz   $4.06   $5.52   $5.88   $5.53  
CONSOLIDATED SALES TOTALS (C)  
    Silver ounces sold    3,039,715    3,693,538    11,506,560    12,841,634  
    Gold ounces sold    21,883    34,914    94,284    116,400  
    Realized price per silver ounce   $14.28   $12.79   $13.59   $12.03  
    Realized price per gold ounce   $799   $617   $700   $623  

  (A) 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 expected to continue through 2011. Current recovery may vary significantly from ultimate recovery. In August 2007, mining and crushing activities were terminated as ore reserves were fully mined.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 8 of 15 
  (B) The Company acquired its interests in the Endeavor and Broken Hill mines in May 2005 and September 2005, respectively.

  (C) 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.

“Cash Costs per Ounce” are calculated by dividing the 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 costs per ounce as a key indicator of the profitability of each of its mining properties. Gold and silver are sold and priced in the world financial markets on a US dollar per ounce basis.

“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 expense, 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 expense, exploration, interest, and pre-feasibility costs. Cash costs are calculated and presented using the “Gold Institute Production Cost Standard” applied consistently for all periods presented.

Total cash costs per ounce is a non-GAAP measure and investors are cautioned not to place undue reliance on it and are urged to read all GAAP accounting disclosures presented in the consolidated financial statements and accompanying footnotes. In addition, see the reconciliation of “cash costs” to production costs under “Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs” set forth below.

Operating Statistics From Discontinued Operation

        The following table presents information for Coeur Silver Valley which was sold on June 1, 2006:

Year Ended December 31,
2006
 2005
Silver Valley/Galena            
    Tons milled    52,876    128,502  
    Ore grade/Silver oz    15.15    16.53  
    Recovery/Silver oz    96.0%  97.0%
    Silver production ounces    768,674    2,060,338  
    Cash cost/oz   $9.75   $8.37  
    Total cost/oz   $10.64   $9.34  
    Gold production    180    282  

        The production figures at the Galena mine reflect the five-month period ending May 31, 2006 and therefore are not comparable to the year ended December 31, 2005. Silver production during the period of Coeur’s ownership of the Galena mine in 2006 amounted to 768,674 ounces. Silver production for the year ended December 31, 2005 was 2,060,338 ounces. Total cash costs per ounce were $9.75 during the five-month period ending May 31, 2006. Total cash costs per ounce were $8.37 for the year ended December 31, 2005, respectively. The lower production and higher costs per ounce for the periods presented are due to lower than expected production grades as mine operations adjusted to changing geologic ground conditions and ultimately the sale of Coeur Silver Valley on June 1, 2006.

Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs

        The tables below present reconciliations between non-GAAP cash costs per ounce to production costs applicable to sales including depreciation, depletion and amortization (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. Total cash costs are a performance measure and provide management and investors with an indication of net cash flow, after consideration of the realized price received for production sold. Management also uses this measurement for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. “Total cash costs per ounce” is a measure developed by precious metals companies in an effort to provide a comparable standard, however, there can be no assurance that our reporting of this non-GAAP measure is similar to that reported by other mining companies.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 9 of 15 

        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, 2007
  (In thousands except ounces and per ounce costs)
Rochester
 Cerro Bayo
 Martha
 Endeavor (1)
 Broken Hill (1)
 Total

Production of silver (ounces)		      1,060,129    564,176    772,778    316,057    435,611    3,148,751  
Cash Costs per ounce   $ (2.49 ) $ 7.75   $ 6.10   $ 2.33   $ 3.26   $ 2.73  

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 (2)    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 (1)
 Broken Hill (1)
 Total

Production of silver (ounces)		    4,614,780    1,709,830    2,748,705    772,609    1,642,205    11,488,129  
Cash costs per ounce   $ 1.52   $ 8.22   $ 6.27   $ 2.67   $ 3.18   $ 3.97  

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 (2)    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  
Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 10 of 15 
THREE MONTHS ENDED DECEMBER 31, 2006
  (In thousands except ounces and per ounce costs)
Rochester
 Cerro Bayo
 Martha
 Endeavor (1)
 Broken Hill (1)
 Total

Production of silver (ounces)		      1,408,544    619,906    729,962    179,972    501,872    3,440,256  
Cash Costs per ounce   $ 3.36   $ 0.79   $ 5.89   $ 3.46   $ 3.16   $ 3.41  

Total Cash Costs (Non-GAAP)		   $ 4,728   $ 487   $ 4,301   $ 623   $ 1,585   $ 11,724  
Add/Subtract:  
Third Party Smelting Costs    --    (1,011 )  (521 )  (467 )  (620 )  (2,619 )
By-Product Credit (2)    9,798    9,148    556    --    --    19,502  
Other Adjustment    484    --    --    --    --    484  
Change in Inventory    (832 )  1,038    (517 )  49    (53 )  (315 )
Depreciation, depletion and  
   amortization    4,057    1,633    444    157    984    7,275  

Production costs applicable		  
   to sales, including  
   depreciation, depletion  
   and amortization (GAAP)   $ 18,235   $ 11,295   $ 4,263   $ 362   $ 1,896   $ 36,051  
 
YEAR ENDED DECEMBER 31, 2006
  (In thousands except ounces and per ounce costs)
Rochester
 Cerro Bayo
 Martha
 Endeavor (1)
 Broken Hill (1)
 Total

Production of silver (ounces)		    5,113,504    2,331,060    2,712,846    481,991    2,174,585    12,813,986  
Cash costs per ounce   $ 2.80   $ 3.04   $ 4.88   $ 2.85   $ 3.09   $ 3.33  

Total Cash Costs (Non-GAAP)		   $ 14,299   $ 7,089   $ 13,240   $ 1,373   $ 6,712   $ 42,713  
Add/Subtract:  
Third party smelting costs    --    (3,475 )  (1,853 )  (948 )  (2,620 )  (8,896 )
By-product credit (2)    43,697    24,861    2,079    --    --    70,637  
Other adjustment    1,803    --    --    --    --    1,803  
Change in inventory    (12,489 )  (1,105 )  (518 )  (39 )  272    (13,879 )
Depreciation, depletion and  
   amortization    13,745    5,638    1,297    490    5,120    26,290  

Production costs applicable		  
   to sales, including  
   depreciation, depletion  
   and amortization (GAAP)   $ 61,055   $ 33,008   $ 14,245   $ 876   $ 9,484   $ 118,668  

The following tables present a reconciliation between non-GAAP cash costs per ounce to GAAP production costs applicable to sales reported in Discontinued Operations:

Coeur Silver Valley/Galena
 		 2006 (3) 2005

Production of silver (ounces)		      768,674    2,060,338  
Cash costs per ounce   $ 9.75   $ 8.37  

Total Cash Costs (Non-GAAP)		   $ 7,498   $ 17,248  
Add/Subtract:  
Third party smelting costs    (1,464 )  (3,091 )
By-product credit (2)    1,473    2,722  
Change in inventory    726    (181 )
Depreciation, depletion and  
amortization    681    1,996  

Production costs applicable to		  
   sales, including depreciation,  
   depletion and amortization (GAAP)   $ 8,914   $ 18,694  

(1) The Company’s share of silver production at Endeavor and Broken Hill commenced in May 2005 and September 2005, respectively.
(2) By-product credits are based upon production units and the period’s average metal price for purposes of reporting cash costs per ounce.
(3) Amounts represent five months ended May 31, 2006.

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 11 of 15 

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

December 31,
2007
 2006
ASSETS (In Thousands)

CURRENT ASSETS		            
    Cash and cash equivalents   $ 98,671   $ 270,672  
    Short-term investments    53,039    70,373  
    Receivables    56,121    43,233  
    Ore on leach pad    25,924    31,302  
    Metal and other inventory    18,918    16,341  
    Deferred tax assets    3,573    3,629  
    Prepaid expenses and other    7,821    6,047  
     264,067    441,597  

PROPERTY, PLANT AND EQUIPMENT		  
    Property, plant and equipment    322,733    132,315  
    Less accumulated depreciation    (69,937 )  (64,206 )
     252,796    68,109  

MINING PROPERTIES		  
    Operational mining properties    143,324    130,447  
    Less accumulated depletion    (124,401 )  (116,361 )
     18,923    14,086  

    Mineral interests		    1,731,715    72,201  
    Less accumulated depletion    (11,639 )  (7,828 )
     1,720,076    64,373  

    Non-producing and development properties		    311,469    190,988  
     2,050,468    269,447  

OTHER ASSETS		  
    Ore on leach pad, non-current portion    24,995    35,367  
    Restricted cash and cash equivalents    25,760    23,508  
    Debt issuance costs, net    4,848    5,151  
    Deferred tax assets    1,109    2,544  
    Other    27,651    3,903  
     84,363    70,473  
         TOTAL ASSETS   $ 2,651,694   $ 849,626  


Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 12 of 15 

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

December 31, 2007 2006 (In thousands, except share data)
December 31,
2007
 2006
LIABILITIES AND SHAREHOLDERS’ EQUITY (In thousands, except
share data)

CURRENT LIABILITIES		            
    Accounts payable   $ 49,642   $ 22,315  
    Accrued liabilities and other    9,072    10,971  
    Accrued income taxes    7,547    10,317  
    Accrued payroll and related benefits    9,342    8,527  
    Accrued interest payable    1,060    1,031  
    Current portion of long-term debt and capital lease obligations    30,831    894  
    Current portion of reclamation and mine closure    4,183    4,460  
     111,677    58,515  

LONG-TERM LIABILITIES		  
    1 1/4% Convertible Senior Notes due January 2024    180,000    180,000  
    Reclamation and mine closure    30,629    27,226  
    Deferred income taxes    573,681    272  
    Obligations under capital leases    23,661    --  
    Other long-term liabilities    4,679    2,619  
     812,650    210,117  

COMMITMENTS AND CONTINGENCIES		  

SHAREHOLDERS’ EQUITY		  
    Common Stock, par value $1.00 per share; authorized 750,000,000 shares  
        in 2007 and 500,000,000 in 2006, issued 551,512,230 and  
        279,054,344 shares in 2007 and 2006 (1,059,211 shares held in  
        treasury)    551,512    279,054  
    Additional paid-in capital    1,607,737    777,798  
    Accumulated deficit    (419,331 )  (463,221 )
    Shares held in treasury    (13,190 )  (13,190 )
    Accumulated other comprehensive income    639    553  
     1,727,367    580,994  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 2,651,694   $ 849,626  


Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 13 of 15 

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31,
2007
 2006
 2005
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income   $ 43,890   $ 88,486   $ 10,551  
Add (deduct) non-cash items:  
    Depreciation and depletion    20,984    26,772    18,889  
    Deferred taxes    2,154    (2,902 )  1,629  
    Unrealized (gain) loss on embedded derivatives    (1,462 )  1,166    (2,052 )
    Share-based compensation    3,448    2,218    1,237  
    Amortization of debt issuance costs    303    303    303  
    Amortization of premium and/or discount on short-term  
      investments, net    (6 )  24    790  
    Gain on asset retirement obligation    (871 )  (41 )  (215 )
    Gain on foreign currency transactions    (433 )  (147 )  170  
    (Gain) loss of sales of assets    (1,947 )  (237 )  90  
    Other non-cash charges    616    112    205  
Changes in operating assets and liabilities:  
    Receivables    (24,021 )  (14,781 )  (19,571 )
    Prepaid expenses and other    (4,065 )  (599 )  (183 )
    Inventories    13,172    (15,555 )  (8,308 )
    Accounts payable and accrued liabilities    (11,705 )  17,686    2,349  
Discontinued operations    --    (11,275 )  792  
    CASH PROVIDED BY OPERATING ACTIVITIES    40,057    91,230    6,676  

CASH FLOWS FROM INVESTING ACTIVITIES:		  
    Purchases of short-term investments    (167,346 )  (317,743 )  (212,252 )
    Proceeds from sales of short-term investments    183,121    430,292    277,021  
    Capital expenditures    (216,978 )  (147,998 )  (113,290 )
    Merger related costs    (13,727 )  --    --  
    Proceeds from sale of assets    3,270    314    289  
    Other    187    (642 )  (186 )
    Discontinued operations    --    15,446    (3,346 )
    CASH USED IN INVESTING ACTIVITIES    (211,473 )  (20,331 )  (51,764 )

CASH FLOWS FROM FINANCING ACTIVITIES:		  
    Proceeds from short-term borrowings    1,698    --    --  
    Repayment of long-term debt and capital leases    (1,360 )  (1,448 )  (685 )
    Proceeds from issuance of common stock    --    154,560    36,493  
      Payments of common stock issuance costs    (726 )  (8,329 )  (557 )
    Other    (197 )  94    (485 )
CASH USED PROVIDED BY FINANCING ACTIVITIES:    (585 )  144,877    34,766  

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		    (172,001 )  215,776    (10,322 )

    Cash and cash equivalents at beginning of period		    270,672    54,896    65,218  
    Cash and cash equivalents at end of period   $ 98,671   $ 270,672   $ 54,896  

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION		  
Cash paid for:  
    Interest   $ 2,283   $ 2,334   $ 2,280  
    Income taxes   $ 11,994   $ 814    --  

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 14 of 15 
YEAR-END 2007 Mineral Reserves
Short Tons (m) Average Grade (oz/t)
 Contained Ounces (m)
 Au
 Ag
 Au
 Ag

Cerro Bayo		                              
   Proven    0.440    0.153    9.73    0.067    4.280  
   Probable    0.342    0.130    8.65    0.045    2.954  
   Total    0.782    0.143    9.26    0.112    7.234  

Martha		  
   Proven    0.055    0.074    52.95    0.004    2.924  
   Probable    0.099    0.066    54.55    0.007    5.369  
   Total    0.154    0.069    53.97    0.011    8.293  

San Bartolomé		  
   Proven  
   Probable    42.043        3.64        153.003  
   Total    42.043        3.64        153.003  

Broken Hill		  
   Proven    8.021        1.59        12.727  
   Probable    4.373        1.19        5.204  
   Total    12.394        1.45        17.931  

Endeavor		  
   Proven    8.818        1.52        13.375  
   Probable    10.913        1.52        16.551  
   Total    19.731        1.52        29.926  

Kensington		  
   Proven    0.021    0.225        0.005      
   Probable    4.398    0.306        1.347      
   Total    4.419    0.306        1.352      

Rochester		  
   Proven    0.000            0.000    0.000  
   Probable    0.000            0.000    0.000  
   Total    0.000            0.000    0.000  

Palmarejo		  
   Proven    0.000            0.000    0.000  
   Probable    0.000            0.000    0.000  
   Total    0.000            0.000    0.000  

All Properties		  
   Proven    17.355            0.076    33.306  
   Probable    62.168            1.399    183.081  
   Total    79.523            1.475    216.387  

Metal prices used were:

  $600/Au ounce and $11/Ag ounce at Cerro Bayo, Martha, San Bartolomé, Rochester
$550/Au ounce for Kensington
$13.5/Ag Ounce for Broken Hill, $15.00/Ag ounce for Endeavor

Fourth Quarter and Year-End 2007 Results (Febraury 29, 2008) Page 15 of 15