Home page - www.coeur.com
Chart - http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CDE&sid=1275&o_symb=CDE&freq=2&time=20
THE WORLD'S LARGEST PRIMARY SILVER PRODUCER
Business Summary
Coeur d' Alene Mines Corporation is the world's largest primary silver producer and a growing, low-cost gold producer. In 2004, the company produced 14.1 million ounces of silver and 129,000 ounces of gold at a cash operating cost of approximately $3.65 per ounce of silver.
Coeur has two of the largest silver mines in the U.S.; two expanding low-cost mines in southern Chile and Argentina; and two advanced development projects, in Bolivia and Alaska.
Coeur also owns large land positions around its two South American mines, where major exploration is ongoing in 2005.
The company has no silver or gold production hedged.
Internal growth projects already in place have the potential of increasing silver production by 56% over 2004 levels, and increasing gold production by 77%, as early as 2006. At the beginning of 2004, silver reserves totaled 196 million ounces, an increase of 12% from the previous year, and gold reserves of totaled 1.4 million ounces.
CHAIRMAN'S MESSAGE
The story in 2004 was silver. The silver company was Coeur d'Alene Mines, the largest primary producer of this most essential metal.
Coeur provides more silver to the world market than any other primary silver producer - a total of 14.1 million ounces last year. It was a year when improving economies and world demand for this most versatile metal led to market prices that far outpaced other precious metals - reaching price levels not seen in sixteen years.
In 2004, silver prices averaged $6.69 an ounce, 36% higher than the previous year's average price level of $4.91, and the highest average price experienced since 1987. Coeur is a leader in the new growth in primary production of this essential metal.
The internal growth profile is unparalleled, with both production and reserve growth. Coeur also holds some of the best silver assets in the world at the newer operating properties and extensive, highly-prospective land packages around those mines, demonstrated by the most successful exploration year in our history, 2004.
The success of the financial plan resulted in a year-end cash position of $322 million and zero net debt, providing Coeur with its strongest balance sheet in over a decade; the financial strength to fund the growth projects; and the flexibility to look for other opportunities to expand company production, reserves and cash flow.
During 2004, Coeur reached a number of important milestones:
Coeur d'Alene fully intends to remain the world's largest primary silver producer and continue building value for our shareholders.
Recent News: Coeur Acquires Silver Production and Reserves at Endeavor Mine in Australia From CBH Resources, Ltd.
Coeur d'Alene Mines Corporation has announced that it has agreed to acquire all of the silver production and reserves contained at the Endeavor Mine in Australia, which is owned and operated by CBH Resources Ltd (ASX: CBH), for USD 38.5 million.
The Endeavor Mine is located 720 km northwest of Sydney in New South Wales and has been in production since 1983. In addition to its principal production of lead and zinc, Endeavor is expected to produce approximately 1.3 million ounces of silver annually from mineral reserves containing approximately 24.0 million silver ounces. In total, the Endeavor Mine reports measured and indicated mineral resources containing approximately 8.2 million ounces of silver, and inferred mineral resources containing approximately 0.5 million silver ounces.
"Coeur and CBH consider the exploration potential and the opportunity to expand silver production at the Endeavor Mine to be considerable. Coeur is enthusiastic about returning to Australia and seeking to grow its business in this important mining country. We also look forward to working with CBH Resources and its seasoned management team to maximize the benefits of this partnership for both parties," Mr. Wheeler added.
Fundamental Considerations
The Value of silver
There is no substitute for silver.
Technical Considerations
Both gold and silver are in the process of surging above multi-year resistance level. While it may take time to leave these levels behind, we remain confident about the eventual outcome.
While quite some overhead resistance has to be overcome, we also believe that the down-side risk at this stage is minimal.
Our recommendation: Buy!
Peter Zihlmann
www.pzim.com
investment@pzim.com
forex@pzim.com
April 29, 2005
Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company's share price. Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.