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Press release from Business Wire

Coeur Reports Third Quarter Financial and Operating Results

Tuesday, November 06, 2012

Coeur Reports Third Quarter Financial and Operating Results08:45 EST Tuesday, November 06, 2012 COEUR D'ALENE, Idaho (Business Wire) -- Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) produced 4.4 million ounces of silver and 58,768 ounces of gold during the third quarter, which resulted in $230.6 million in sales and $77.3 million of operating cash flow1. The Company repurchased $10.0 million of its common shares during the quarter and repaid $72.0 million of outstanding debt, resulting in total remaining debt of $47.4 million2 and cash, cash equivalents and short-term investments of $143.6 million as of September 30, 2012. Third Quarter Highlights Silver production totaled 4.4 million ounces, 10% lower than second quarter 2012 levels. Gold production totaled 58,768 ounces, down 7% from the second quarter. Net metal sales totaled $230.6 million, down 9% from the second quarter. Operating cash flow1 totaled $77.3 million, down 13% from the second quarter. Including changes in working capital, net cash from operating activities was $79.7 million compared to $113.2 million in the second quarter. Consolidated cash operating costs1 were $9.05 per silver ounce compared to $6.41 per silver ounce in the second quarter. Kensington's cash operating costs1 per gold ounce declined 4% from the second quarter to $1,298. These costs are expected to decline to under $950 per ounce in 2013. Adjusted earnings1 were $25.8 million, or $0.29 per share, compared with $28.0 million, or $0.31 per share, in the second quarter 2012. Net loss for the quarter, which included a non-cash fair market value adjustment of $37.6 million, was $15.8 million, or $0.18 per share, compared with net income of $23.0 million, or $0.26 per share, in the second quarter. Cash, cash equivalents and short-term investments were $143.6 million as of September 30, 2012. Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, “The Company's third quarter was negatively impacted by lower production and higher unit costs at the Palmarejo mine in Mexico, which were due to unfavorable underground conditions encountered during September and a transition in open pit production. Open pit production has been accelerated to partially offset the impact, which has led to higher unit costs and lower overall grades." Mr. Krebs added, "Our Rochester silver and gold mine in Nevada and our Kensington gold mine in Alaska continued to accelerate production rates during the quarter. Despite experiencing power outages that resulted in unanticipated mill downtime during August, our San Bartolomé silver mine in Bolivia delivered consistent operational results." The Company expects 2012 full-year production to total 18.5 - 19.0 million silver ounces and 215,000 - 225,000 gold ounces. Cash operating costs1 are expected to be approximately $7.50 per silver ounce. The Company expects cash operating costs1 per ounce of gold at Kensington to average approximately $1,350 for the full year 2012. "As we look ahead to 2013, we expect silver and gold production to be consistent with 2011 and 2012 levels," Mr. Krebs commented.       1.     EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.2.Net of debt discount of $1.3 million.   Table 1: Financial Highlights (Unaudited)(All amounts in millions, except per share amounts, average realized prices and gold ounces sold)       3Q2012     3Q 2011     Quarter Variance     YTD2012     YTD 2011     YTD Variance Sales of Metal$230.6     $ 343.6     (33 %)     $689.6     $ 774.3     (11 %) Production Costs$125.0 $ 141.3 (12 %) $349.3 $ 310.8 12 % EBITDA(1)$86.8 $ 186.0 (53 %) $286.2 $ 411.6 (30 %) Adjusted Earnings(1)$25.8 $ 93.8 (72 %) $95.3 $ 189.3 (50 %) Adjusted Earnings Per Share(1)$0.29 $ 1.05 (72 %) $1.06 $ 2.12 (50 %) Net Income (Loss)$(15.8) $ 31.1 (151 %) $11.1 $ 82.1 (86 %) Earnings (Loss) Per Share$(0.18) $ 0.35 (151 %) $0.12 $ 0.92 (87 %) Operating Cash Flow(1)$77.3 $ 151.0 (49 %) $259.5 $ 356.9 (27 %) Cash From Operating Activities$79.7 $ 181.9 (56 %) $209.9 $ 328.8 (36 %) Capital Expenditures$30.0 $ 38.1 (21 %) $93.9 $ 79.8 18 % Cash, Cash Equivalents, and Short-Term Investments$143.6 $ 209.0 (31 %) $143.6 $ 209.0 (31 %) Total Debt(1) (net of debt discount)$47.4$146.7 (68 %) $47.4$146.7 (68 %) Weighted Average Shares Issued & Outstanding89.4 89.4 — 89.6 89.4 — Average Realized Price Per Ounce - Silver$30.09 $ 38.28 (21 %) $30.52 $ 36.69 (17 %) Average Realized Price Per Ounce - Gold$1,654 $ 1,681 (2 %) $1,649 $ 1,523 8 % Silver Ounces Sold4.5 6.2 (27 %) 14.4 13.9 4 % Gold Ounces Sold59,156 67,391 (12 %) 157,621 183,243 (14 %)   Lower net metal sales in the third quarter resulted primarily from lower production rates at Palmarejo, lower average realized silver and gold prices, and fewer ounces of silver and gold sold compared to the third quarter 2011. Silver contributed 59% of the Company's total metal sales during the third quarter 2012 compared to 68% during the third quarter 2011. Consolidated production costs of $125.0 million were primarily due to lower production levels during the quarter. Consolidated cash operating costs1 were $9.05 per silver ounce compared to $7.57 per silver ounce in the third quarter 2011. Increased cash operating costs1 per silver ounce reflect higher mining costs associated with additional underground support measures, higher maintenance costs, and waste haulage costs in the open pit at Palmarejo and lower mill production rates at San Bartolomé during the quarter due to power interruptions. As previously announced, the Company ceased operating activities and commenced reclamation at the Martha underground silver mine in Argentina in September 2012. Prior to changes in working capital, Coeur generated $77.3 million in operating cash flow1 in the third quarter 2012 compared to $88.4 million in the second quarter 2012 and $151.0 million in the third quarter 2011. After working capital changes, the Company generated $79.7 million in cash from operating activities in the third quarter 2012 compared to $113.2 million in the second quarter 2012 and $181.9 million during the third quarter 2011. Coeur reports a non-U.S. GAAP metric of adjusted earnings1 as a measure of operating income, which excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. Third quarter 2012 adjusted earnings1 were $25.8 million, or $0.29 per share, compared with $28.0 million, or $0.31 per share, in the second quarter 2012 and $93.8 million, or $1.05 per share, in the third quarter 2011. On a U.S. GAAP basis, the Company realized a net loss of $15.8 million, or $0.18 per share, compared with net income of $23.0 million, or $0.26 per share, in the second quarter and net income of $31.1 million, or $0.35 per share, in the third quarter 2011. Reduced metal sales and negative fair value adjustments of $37.6 million impacted third quarter net income. In the third quarter 2011, fair value adjustments were negative $53.4 million. Fair value adjustments are driven primarily by lower or higher gold prices, which decrease or increase, respectively, the estimated future liabilities related to a gold royalty obligation at Palmarejo.       1.     EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.   Capital expenditures totaled $30.0 million during the third quarter 2012 compared to $32.2 million in the second quarter and $38.1 million in the third quarter 2011. Capital expenditures in the third quarter were primarily related to capitalized exploration drilling and development of the Guadalupe satellite operation located six kilometers from the main Palmarejo operation, underground development at Palmarejo, completion of a dry stack tailings facility at San Bartolomé and an expansion of the tailings facility at Kensington. Cash, cash equivalents and short-term investments totaled$143.6 million after full payment of the Kensington term facility balance of $72.0 million and repurchasing $10.0 million of Company stock in the third quarter. Shares outstanding at quarter-end totaled 89.4 million. Table 2: Operational Highlights: Production(silver ounces in thousands)       3Q 2012   3Q 2011   Quarter Variance   YTD 2012   YTD 2011   YTD Variance         Silver   Gold   Silver   Gold   Silver   Gold   Silver   Gold   Silver   Gold   Silver   Gold Palmarejo1,833   23,702   2,251   29,815   (19 %)   (21 %)   6,682   86,040   6,351   90,963   5 %   (5 %) San Bartolomé1,526— 2,051 — (26 %) n.a. 4,587— 5,504 — (17 %) n.a. Rochester81910,599 352 1,435 133 % 639 % 1,97326,012 1,019 4,283 94 % 507 % Martha9376 118 115 (21 %) (34 %) 323257 399 471 (19 %) (45 %) Kensington—24,391 — 25,687 n.a. (5 %) —53,407 — 75,121 n.a. (29 %) Endeavor140     —     138     —     1 %   n.a.     628     —     502     —     25 %   n.a. Total4,41158,768 4,910 57,052 (10 %) 3 % 14,193165,716 13,775 170,838 3 % (3 %)   *Additional operating statistics can be found in the tables in the appendix.Table 3: Operational Highlights: Cash Operating Costs Per Ounce1       3Q 2012     3Q 2011     Quarter Variance     YTD 2012     YTD 2011     YTD Variance Palmarejo$3.75     $ (1.16 )     423 %     $(0.12)     $ (0.47 )     74 % San Bartolomé12.13 9.32 30 % 11.12 9.07 23 % Rochester9.58 36.71 (74 %) 12.75 17.46 (27 %) Martha48.12 39.31 22 % 49.82 32.48 53 % Endeavor15.97       22.26       (28 %)     16.82       19.79       (15 %) Total$9.05 $ 7.57 20 % $7.19 $ 6.36 13 % Kensington$1,298 $ 973 33 % $1,515 $ 961 58 %   *Additional operating statistics can be found in the tables in the appendix.Palmarejo, Mexico - Reduced Underground Mining Rate Impacts Production Third quarter production at Palmarejo was 1.8 million ounces of silver and 23,702 ounces of gold, down 23% and 24%, respectively, compared to the second quarter. Reduced production rates were due to unfavorable underground conditions in a high-grade area of the underground mine, which required additional ground support and resulted in slower advances. The mine also experienced lower ore grade from a transition of mining to the next push back in the open pit operation. Lower grade ore from surface operations, a 32% increase in tons milled from third quarter 2011 and a record silver recovery rate of 90.0% partially offset the decreased underground production rates. Higher cash operating costs1 of $3.75 per silver ounce in the third quarter were primarily due to lower production and temporarily higher mining costs for additional ground support, maintenance, and waste haulage in the open pit. Sales and operating cash flow1 totaled $102.6 million and $54.9 million, respectively, in the third quarter. Capital expenditures were $11.3 million.       1.     EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.   San Bartolomé, Bolivia - Consistent Production Silver production was 1.5 million ounces in the third quarter, consistent with second quarter production. Cash operating costs1 were $12.13 per silver ounce compared to $11.05 per silver ounce in the prior quarter, primarily due to lower mill production rates from unplanned mill downtime from power interruptions in August. Optimization of the process circuit has led to a higher recovery rate of 90% year-to-date. Sales and operating cash flow1 totaled $46.2 million and $11.2 million, respectively, in the third quarter. Capital expenditures were $4.4 million. Rochester, Nevada - Strong Third Quarter Gearing for Best Quarter to Come Production increased to 819,349 ounces of silver and 10,599 ounces of gold in the third quarter, 15% and 5% higher than the second quarter, respectively. Cash operating costs1 of $9.58 per silver ounce in the third quarter were slightly lower than the second quarter. Metal sales totaled $36.2 million in the third quarter. Third quarter operating cash flow1 totaled $13.0 million. Capital expenditures were $4.8 million. Kensington, Alaska - Production Continues to Rise Third quarter production at Kensington was 24,391 ounces of gold, a 13% increase over the second quarter. Continuous improvements at the mill resulted in a 95.9% recovery rate compared to 94.2% in the second quarter 2012. Cash operating costs1 per gold ounce declined 4% from the second quarter to $1,298 in the third quarter. Cash operating costs1 are expected to decline to less than $950 per gold ounce in 2013 as a result of higher production rates, reduced contractor-related costs and lower rental equipment expenses. Sales totaled $36.5 million and operating cash flow1 totaled $7.3 million in the third quarter. Capital expenditures were $9.0 million. Exploration Highlights During the third quarter, the Company invested $7.0 million in expensed exploration and $1.6 million in capitalized exploration, completing 147,023 feet (44,813 meters) of drilling and trenching in its global exploration program. Palmarejo The Company invested $3.7 million in exploration at Palmarejo and completed 75,814 feet (23,108 meters) of core drilling in the third quarter. Encouraging results were obtained from underground drilling at Rosario and the Inter-Clavos zone (a new target between the Rosario and 76 zones). Results range from narrow, high-grade intervals such as 0.5 meter true width grading 2,600 grams per tonne silver and 30.5 grams per tonne gold, to much wider intervals such as 15.5 meters true width grading 74.6 grams per tonne silver and 1.2 grams per tonne gold. Favorable in-fill drilling results were received from Guadalupe Norte, notably 15.0 meters true width of 304 grams per tonne silver and 2.76 grams per tonne gold. Drilling also commenced at La Union, a new target located southeast of the Chapotillo surface mine, where wide zones of alteration and veining occur near surface in association with the projection of the main ore-bearing structure in Chapotillo. San Bartolomé Trenching recommenced late in the quarter on a new target, Pucka Loma, which is about 150 feet (500 meters) west of the Company's existing reserves and covers an area approximately 100 feet, east-west (350 meters) by 275 feet (900 meters) north-south. Assay results from these trench samples yielded silver values averaging 113 grams per tonne (3.3 ounces per ton) over an average of 13.1 feet (4 meters) deep. Thirty-seven shallow trenches were excavated and sampled. Sampling will continue during the fourth quarter 2012.       1.     EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.   Rochester A total of 33,056 feet (10,075 meters) of drilling in 132 reverse circulation holes and 11 sonic twin holes were completed in the third quarter at various historic stockpiles. Favorable silver and gold grade intercepts in drill assays, including assays at higher than the current average reserve grade, allowed mining and placement of 350,000 tons of stockpile material on the Rochester leach pads in September 2012. These positive results will also be used to update the estimate of mineral resources and reserves at year-end 2012. Kensington Drilling at Kensington focused on new targets around the main mine. Encouraging results were obtained from Kensington South and Elmira. Hole KX12-003 at Kensington South cut 10 feet of mineralization grading 1.72 ounces per ton. This drill intercept is situated about 750 feet south of the current Kensington mine and over 500 feet deeper on the south-striking mine trend. 2012 Outlook The Company has updated its full-year production guidance to 18.5 - 19.0 million ounces of silver and 215,000 - 225,000 ounces of gold. Cash operating costs1 per silver ounce for 2012 are expected to be approximately $7.50. Cash operating costs1 per gold ounce at Kensington are expected to be approximately $1,350 for 2012, declining to less than $950 per ounce in 2013. Table 5: 2012 Production Outlook(silver ounces in thousands)           Country           Silver           GoldPalmarejo           Mexico           8,400-8,600           100,000-105,000 San Bartolomé Bolivia 6,200-6,300 — Rochester Nevada, USA 2,900-3,000 32,000-35,000 Martha1 Argentina 323 257 Endeavor Australia 700-750 — Kensington           Alaska, USA           —           82,750-84,750 Total                       18,500-19,000           215,000-225,000   1.     Actual production for Martha, which ceased production in September 2012.###       1.     EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.   Conference Call Information Coeur will hold a conference call to discuss the Company's third quarter 2012 results at 2 p.m. Eastern time on November 6, 2012.                 Dial-In Numbers: (877) 464-2820 (U.S. and Canada) (660) 422-4718 (International)   Conference ID: 3832 1596   The conference call and presentation will also be webcast on the Company's website at www.coeur.com. A replay of the call will be available through November 20, 2012.                 Replay number: (855) 859-2056 (U.S. and Canada) International replay: (404) 537-3406 (International)   Conference ID: 3832 1596   Cautionary Statement This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated operating results, production levels and operating costs. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays and disputed mining claims, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of gold and silver ore reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves, the loss of any third-party smelter to which Coeur markets silver and gold, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's most recent 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. Current mineralized material estimates include disputed and undisputed claims at Rochester. While the Company believes it holds a superior position in the ongoing claim dispute, the Company believes an adverse legal outcome would cause it to modify mineralized material estimates. 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 and a qualified person under Canadian National Instrument 43-101, supervised 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 data verification procedures and 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. 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 may use certain terms in public disclosures, such as "measured," "indicated," "inferred” and “resources," that are recognized by Canadian 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 secured from us, or from the SEC's website at http://www.sec.gov. Non-U.S. GAAP Measures We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including cash operating costs, operating cash flow, adjusted earnings, and EBITDA. 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 believe cash operating costs, operating cash flow, adjusted earnings and EBITDA are important measures in assessing the Company's overall financial performance. About Coeur Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company built and commenced production from three wholly-owned, long-lived mines between 2008 and 2010: the San Bartolomé silver mine in Bolivia, the Palmarejo silver-gold mine in Mexico and the Kensington gold mine in Alaska. Further production has commenced from a new heap leach pad at Coeur's long-time Rochester silver-gold mine in Nevada. The Company also owns a non-operating interest in a silver-base metal mine in Australia. Coeur conducts ongoing exploration activities near and within its properties in Argentina, Mexico, Alaska, Nevada and Bolivia. In addition, Coeur owns strategic minority shareholdings in eight silver and gold development companies in North and South America.                 Table 6: Operating Statistics from Continuing Operations:   Three months endedSeptember 30,Nine months endedSeptember 30,2012       20112012       2011Silver Operations:Palmarejo Tons milled 532,775 403,978 1,551,242 1,217,437 Ore grade/Ag oz 3.82 7.34 5.21 6.88 Ore grade/Au oz 0.04 0.08 0.06 0.08 Recovery/Ag oz(1) 90.0 % 75.9 % 82.7 % 75.8 % Recovery/Au oz(1) 102.5 % 93.6 % 95.1 % 92.2 % Silver production ounces 1,833,109 2,250,818 6,681,407 6,351,120 Gold production ounces 23,702 29,815 86,040 90,963 Cash operating cost/oz $ 3.75 $ (1.16 ) $ (0.12 ) $ (0.47 ) Cash cost/oz $ 3.75 $ (1.16 ) $ (0.12 ) $ (0.47 ) Total production cost/oz $ 22.53 $ 17.33 $ 17.14 $ 18.07 San Bartolomé Tons milled 344,349 428,978 1,113,458 1,195,286 Ore grade/Ag oz 4.91 5.40 4.58 5.21 Recovery/Ag oz(1) 90.3 % 88.6 % 90.0 % 88.3 % Silver production ounces 1,525,725 2,051,426 4,587,359 5,503,951 Cash operating cost/oz $ 12.13 $ 9.32 $ 11.12 $ 9.07 Cash cost/oz $ 13.36 $ 10.89 $ 12.29 $ 10.58 Total production cost/oz $ 16.56 $ 13.90 $ 15.14 $ 13.61 Martha Tons milled 27,281 24,086 100,548 64,025 Ore grade/Ag oz 4.17 5.33 4.01 7.24 Ore grade/Au oz 0.003 0.01 0.004 0.01 Recovery/Ag oz(1) 81.5 % 92.3 % 80.3 % 86.2 % Recovery/Au oz(1) 82.6 % 72.9 % 72.2 % 74.0 % Silver production ounces 92,698 118,523 323,286 399,630 Gold production ounces 76 115 257 471 Cash operating cost/oz $ 48.12 $ 39.31 $ 49.82 $ 32.48 Cash cost/oz $ 49.20 $ 41.29 $ 50.76 $ 33.95 Total production cost/oz $ 58.52 $ 45.73 $ 57.25 $ 35.31 Rochester(A) Tons milled 2,361,951 607,031 6,640,365 607,031 Ore grade/Ag oz 0.52 0.34 0.56 0.34 Ore grade/Au oz 0.004 0.007 0.005 0.007 Recovery/Ag oz(2) 67.0 % 168.3 % 52.6 % 487.5 % Recovery/Au oz(2) 102.4 % 35.8 % 84.1 % 106.8 % Silver production ounces 819,349 351,717 1,973,392 1,018,844 Gold production ounces 10,599 1,435 26,012 4,283 Cash operating cost/oz $ 9.58 $ 36.71 $ 12.75 $ 17.46 Cash cost/oz $ 11.34 $ 39.80 $ 14.38 $ 19.87 Total production cost/oz $ 13.96 $ 41.72 $ 17.50 $ 21.75   1. Recoveries are affected by timing inherent in the leaching process.2. Recoveries at Rochester are affected by residual leaching on Stage IV pad and timing differences inherent in the heap leaching process.   Endeavor Tons milled 205,096 182,226 601,999 556,901 Ore grade/Ag oz 1.22 1.43 2.61 1.97 Recovery/Ag oz(1) 56.0 % 53.0 % 40.0 % 45.8 % Silver production ounces 140,267 137,843 628,393 501,638 Cash operating cost/oz $ 15.97 $ 22.26 $ 16.82 $ 0.02 Cash cost/oz $ 15.97 $ 22.26 $ 16.82 $ 0.02 Total production cost/oz $ 22.37 $ 28.88 $ 23.40 $ 24.57     Gold Operation:Kensington(B) Tons milled 123,428 116,255 265,158 343,640 Ore grade/Au oz 0.21 0.24 0.21 0.24 Recovery/Au oz(1) 95.9 % 91.7 % 94.9 % 92.3 % Gold production ounces 24,391 25,687 53,407 75,121 Cash operating cost/oz $ 1,298 $ 973 $ 1,515 $ 961 Cash cost/oz $ 1,298 $ 973 $ 1,515 $ 961 Total production cost/oz $ 1,770 $ 1,346 $ 2,037 $ 1,345 CONSOLIDATED PRODUCTION TOTALS(B) Total silver ounces 4,411,148 4,910,326 14,193,197 13,775,183 Total gold ounces 58,768 57,052 165,716 170,838 Silver Operations:(C) Cash operating cost per oz - silver $ 9.05 $ 7.57 $ 7.19 $ 6.36 Cash cost per oz - silver $ 9.83 $ 8.49 $ 7.82 $ 7.18 Total production cost oz - silver $ 19.62 $ 18.65 $ 17.74 $ 17.30 Gold Operation:(D) Cash operating cost per oz - gold $ 1,298 $ 973 $ 1,515 $ 961 Cash cost per oz - gold $ 1,298 $ 973 $ 1,515 $ 961 Total production cost per oz - gold $ 1,770 $ 1,346 $ 2,037 $ 1,345 CONSOLIDATED SALES TOTALS(E) Silver ounces sold 4,520,500 6,200,397 14,412,503 13,922,833 Gold ounces sold 59,156 67,391 157,621 183,243 Realized price per silver ounce $ 30.09 $ 38.28 $ 30.52 $ 36.69 Realized price per gold ounce $ 1,654 $ 1,681 $ 1,649 $ 1,523   (A)     The Rochester mine recommenced production in the fourth quarter of 2011. The leach cycle at Rochester requires five to ten years to recover gold and silver contained in the ore. The Company estimates the ultimate recovery to be approximately 61% for silver and 92% for gold. However, ultimate recoveries will not be known until leaching operations cease, which is currently estimated for 2017. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates – Ore on Leach Pad in the Company's Form 10-K for the year ended December 31, 2011.(B)Current production ounces and recoveries reflect final metal settlements of previously reported production ounces.(C)Amount includes by-product gold credits deducted in computing cash costs per ounce.(D)Amounts reflect Kensington per ounce statistics only.(E)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.                       Table 7:COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)   September 30, 2012December 31, 2011ASSETS(In thousands, except share data) CURRENT ASSETS Cash and cash equivalents $ 142,915 $ 175,012 Short term investments 657 20,254 Receivables 70,963 83,497 Ore on leach pad 30,394 27,252 Metal and other inventory 156,130 132,781 Deferred tax assets 2,090 1,869 Restricted assets 396 60 Prepaid expenses and other 25,460   24,218   429,005 464,943 NON-CURRENT ASSETS Property, plant and equipment, net 691,219 687,676 Mining properties, net 1,923,251 2,001,027 Ore on leach pad, non-current portion 15,575 6,679 Restricted assets 24,790 28,911 Marketable securities 31,243 19,844 Receivables, non-current portion 48,614 40,314 Debt issuance costs, net 4,056 1,889 Deferred tax assets 68 263 Other 12,619   12,895   TOTAL ASSETS $ 3,180,440   $ 3,264,441   LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 68,709 $ 78,590 Accrued liabilities and other 7,160 13,126 Accrued income taxes 28,659 47,803 Accrued payroll and related benefits 22,892 16,240 Accrued interest payable 125 559 Current portion of debt and capital leases 56,340 32,602 Current portion of royalty obligation 69,959 61,721 Current portion of reclamation and mine closure 3,372 1,387 Deferred tax liabilities 53   53   257,269 252,081 NON-CURRENT LIABILITIES Long-term debt and capital leases 5,053 115,861 Non-current portion of royalty obligation 164,272 169,788 Reclamation and mine closure 32,636 32,371 Deferred tax liabilities 540,023 527,573 Other long-term liabilities 37,888   30,046   779,872 875,639 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common stock, par value $0.01 per share; authorized 150,000,000 shares, issued and outstanding 89,446,482 at September 30, 2012 and 89,655,124 at December 31, 2011 894 897 Additional paid-in capital 2,579,707 2,585,632 Accumulated deficit (433,706 ) (444,833 ) Accumulated other comprehensive loss (3,596 ) (4,975 ) 2,143,299   2,136,721   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,180,440   $ 3,264,441                   Table 8:COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)   Three months endedSeptember 30,Nine months endedSeptember 30,2012       20112012       2011(In thousands, except share data) Sales of metal $ 230,593 $ 343,575 $ 689,563 $ 774,289 Production costs applicable to sales (124,967 ) (141,253 ) (349,344 ) (310,829 ) Depreciation, depletion and amortization (52,844 ) (58,652 ) (166,460 ) (166,334 ) Gross profit 52,782 143,670 173,759 297,126 COSTS AND EXPENSES Administrative and general 10,266 8,236 26,456 22,294 Exploration 6,957 4,772 19,829 11,611 Loss on impairment and other 1,293 — 6,106 — Pre-development, care, maintenance and other 277   3,271   1,618   17,949   Total cost and expenses 18,793   16,279   54,009   51,854   OPERATING INCOME 33,989 127,391 119,750 245,272 OTHER INCOME AND EXPENSE Loss on debt extinguishments — (784 ) — (1,640 ) Fair value adjustments, net (37,648 ) (53,351 ) (44,722 ) (71,051 ) Interest income and other, net 12,664 (6,610 ) 14,450 (1,946 ) Interest expense, net of capitalized interest (7,351 ) (7,980 ) (21,578 ) (26,553 ) Total other income and expense, net (32,335 ) (68,725 ) (51,850 ) (101,190 ) Income before income taxes 1,654 58,666 67,900 144,082 Income tax provision (17,475 ) (27,606 ) (56,773 ) (61,947 ) NET INCOME (LOSS) $ (15,821 ) $ 31,060   $ 11,127   $ 82,135   BASIC AND DILUTED INCOME (LOSS) PER SHARE Basic income per share: Net income (loss) $ (0.18 ) $ 0.35   $ 0.12   $ 0.92   Diluted income per share: Net income (loss) $ (0.18 ) $ 0.35   $ 0.12   $ 0.92   Weighted average number of shares of common stock Basic 89,429 89,449 89,550 89,350 Diluted 89,429 89,739 89,690 89,702                 Table 9:COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)   Three months endedSeptember 30,Nine months endedSeptember 30,2012       20112012       2011(In thousands)(In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (15,821 ) $ 31,060 $ 11,127 $ 82,135 Add (deduct) non-cash items Depreciation, depletion and amortization 52,844 58,652 166,460 166,334 Accretion of discount on debt and other assets, net 585 516 1,683 1,460 Accretion of royalty obligation 4,276 4,990 14,348 16,027 Deferred income taxes (4,944 ) 3,084 12,425 13,177 Loss on debt extinguishment — 784 — 1,640 Fair value adjustments, net 35,270 50,767 39,288 71,360 Gain (loss) on foreign currency transactions (1,577 ) 137 (1,208 ) (600 ) Share-based compensation 3,364 457 6,534 5,261 (Gain) loss on sale of assets 108 4 372 (1,220 ) Loss on impairment 1,848 — 6,621 — Other non-cash charges 1,331 506 1,838 1,337 Changes in operating assets and liabilities: Receivables and other current assets (5,648 ) (10,513 ) 1,717 (23,492 ) Prepaid expenses and other (2,481 ) (8,697 ) (564 ) (7,362 ) Inventories (13,762 ) 23,234 (35,387 ) (12,834 ) Accounts payable and accrued liabilities 24,342   26,930   (15,313 ) 15,538   CASH PROVIDED BY OPERATING ACTIVITIES 79,735   181,911   209,941   328,761   CASH FLOWS FROM INVESTING ACTIVITIES Purchase of short term investments and marketable securities (4,093 ) (8,804 ) (11,959 ) (21,914 ) Proceeds from sales and maturities of short term investments 337 495 21,038 3,855 Capital expenditures (29,972 ) (38,099 ) (93,857 ) (79,780 ) Other 479   1,397   1,659   1,670   CASH USED IN INVESTING ACTIVITIES (33,249 ) (45,011 ) (83,119 ) (96,169 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of notes and bank borrowings — — — 27,500 Payments on long-term debt, capital leases, and associated costs (80,318 ) (16,405 ) (94,562 ) (51,640 ) Payments on gold production royalty (17,458 ) (19,510 ) (58,119 ) (51,569 ) Payments on gold lease facility — — — (13,800 ) Reductions of (additions to) restricted assets associated with the Kensington Term Facility 4,645 — 4,645 (1,325 ) Share repurchases (9,971 ) — (9,971 ) — Other 134   67   (912 ) 6   CASH USED IN FINANCING ACTIVITIES (102,968 ) (35,848 ) (158,919 ) (90,828 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (56,482 ) 101,052 (32,097 ) 141,764 Cash and cash equivalents at beginning of period 199,397   106,830   175,012   66,118   Cash and cash equivalents at end of period $ 142,915   $ 207,882   $ 142,915   $ 207,882                                     Table 10:Operating Cash Flow Reconciliation   (in thousands)3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011   Cash provided by operating activities $ 79,735 $ 113,203 $ 17,002 $ 87,412 $ 181,911 Changes in operating assets and liabilities: Receivables and other current assets 5,648 (10,319 ) 2,956 (8,904 ) 10,513 Prepaid expenses and other 2,481 2,857 (4,774 ) 8,839 8,697 Inventories 13,762 (3,097 ) 24,722 17,574 (23,234 ) Accounts payable and accrued liabilities       (24,342 )       (14,276 )       53,929         (7,452 )       (26,930 ) Operating Cash Flow       $77,284         $88,368         $93,835         $97,469         $150,957                                     Table 11:EBITDA Reconciliation   (in thousands)3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Net income (loss) $ (15,821 ) $ 22,973 $ 3,975 $ 11,364 $ 31,060 Income tax provision 17,475 23,862 15,436 52,390 27,606 Interest expense, net of capitalized interest 7,351 7,557 6,670 8,222 7,980 Interest and other income (12,664 ) 3,221 (5,007 ) 4,697 6,610 Fair value adjustments, net 37,648 (16,039 ) 23,113 (19,035 ) 53,351 Loss on debt extinguishments — — — 3,886 784 Depreciation and depletion       52,844         61,024         52,592         58,166         58,652 EBITDA       $86,833         $102,598         $96,779         $119,690         $186,043                                   Table 12:Adjusted Earnings Reconciliation   (in thousands)3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Net income (loss) $ (15,821 ) $ 22,973 $ 3,975 $ 11,364 $ 31,060 Share Based Compensation 3,364 1,033 2,137 2,861 457 Deferred income tax provision (4,944 ) 9,690 7,677 38,614 3,110 Interest expense, accretion of royalty obligation 4,276 5,492 4,580 5,523 4,990 Fair value adjustments, net 37,648 (16,039 ) 23,113 (19,035 ) 53,351 Loss on impairment 1,293 4,813 — — — Gain on debt extinguishments       —         —         —         3,886         784 Adjusted Earnings (Loss)       $25,816         $27,962         $41,482         $43,213         $93,752                                       Table 13:Operating Cash Flow Reconciliation - YTD   (in thousands)YTD 2012           YTD 2011   Cash provided by operating activities $ 209,941 $ 328,761 Changes in operating assets and liabilities: Receivables and other current assets (1,717 ) 23,492 Prepaid expenses and other 564 7,362 Inventories 35,387 12,834 Accounts payable and accrued liabilities       15,313             (15,538 ) Operating Cash Flow       $259,488             $356,911                                         Table 14:EBITDA Reconciliation - YTD   (in thousands)YTD 2012           YTD 2011 Net income (loss) $ 11,127 $ 82,135 Income tax provision 56,773 61,947 Interest expense, net of capitalized interest 21,578 26,552 Interest and other income (14,450 ) 1,913 Fair value adjustments, net 44,722 71,051 Loss on debt extinguishments — 1,640 Depreciation and depletion       166,460             166,334 EBITDA       $286,210             $411,572                                       Table 15:Adjusted Earnings Reconciliation - YTD   (in thousands)YTD 2012           YTD 2011 Net income (loss) $ 11,127 $ 82,135 Share Based Compensation 6,534 5,261 Deferred income tax provision 12,425 13,178 Interest expense, accretion of royalty obligation 14,348 16,027 Fair value adjustments, net 44,722 71,051 Loss on impairment 6,106 — Gain on debt extinguishments       —           1,640 Adjusted Earnings (Loss)       $95,262           $189,292                             Table 16:Results of Operations by Mine - Palmarejo   in millions of US$3Q 2012       2Q 2012     1Q 2012     4Q 2011     3Q 2011 Sales of metal $ 102.6 $ 136.4 $ 123.7 $ 134.3 $ 166.9 Production costs $ 48.7 $ 62.5 $ 45.9 $ 47.0 $ 64.1 EBITDA $ 51.6 $ 72.3 $ 76.5 $ 83.7 $ 100.4 Operating income $ 17.7 $ 29.5 $ 38.8 $ 38.7 $ 61.6 Operating cash flow $ 54.9 $ 63.6 $ 81.4 $ 77.4 $ 91.2 Capital expenditures $ 11.3 $ 11.2 $ 7.2 $ 12.1 $ 9.5 Gross profit $ 20.0 $ 31.1 $ 40.1 $ 44.7 $ 61.6 Gross margin 19.5 % 22.8 % 32.4 % 33.3 % 36.9 %   3Q 2012       2Q 2012     1Q 2012     4Q 2011     3Q 2011Underground Operations: Tons mined 143,747 162,820 158,030 191,966 143,010 Average silver grade (oz/t) 6.13 8.91 7.82 8.04 9.36 Average gold grade (oz/t) 0.09 0.14 0.11 0.11 0.13 Surface Operations: Tons mined 424,380 321,758 347,609 321,881 260,618 Average silver grade (oz/t) 2.79 4.14 5.32 5.88 6.56 Average gold grade (oz/t) 0.03 0.04 0.04 0.05 0.05 Processing: Total tons milled 532,775 489,924 528,543 505,619 403,978 Average recovery rate – Ag 90.0 % 84.2 % 76.8 % 77.9 % 75.9 % Average recovery rate – Au 102.5 % 92.0 % 93.3 % 92.4 % 93.6 % Silver production - oz (000's) 1,833 2,365 2,483 2,690 2,251 Gold production - oz 23,702 31,258 31,081 34,108 29,815 Cash operating costs/Ag Oz $ 3.75 $ (0.85 ) $ (2.27 ) $ (2.13 ) $ (1.16 )                                   Table 17:Reconciliation of EBITDA for Palmarejo   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 102.6 $ 136.4 $ 123.7 $ 134.3 $ 166.9 Production costs applicable to sales $ (48.7 ) $ (62.5 ) (45.9 ) (47.0 ) (64.1 ) Administrative and general $ — $ — — — — Exploration $ (2.3 ) $ (1.6 ) (1.3 ) (2.8 ) (2.2 ) Care and maintenance and other $ — $ — — (0.8 ) (0.2 ) Pre-development       $ —         $ —         —         —         —   EBITDA       $51.6         $72.3         $76.5         $83.7         $100.4                                     Table 18:Operating Cash Flow for Palmarejo   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Cash provided by operating activities $ 58.2 $ 90.5 $ 65.3 $ 70.9 $ 104.7 Changes in operating assets and liabilities: Receivables and other current assets $ (4.1 ) $ (12.5 ) 5.4 5.7 (0.8 ) Prepaid expenses and other $ (0.8 ) $ 0.5 (1.9 ) (3.2 ) 3.4 Inventories $ 2.5 $ (11.5 ) 4.6 9.9 (16.2 ) Accounts payable and accrued liabilities       $ (0.9 )       $ (3.4 )       8.0         (5.9 )       0.1   Operating Cash Flow       $54.9         $63.6         $81.4         $77.4         $91.2                                     Table 19:Results of Operations by Mine - San Bartolomé   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 46.2 $ 53.4 $ 41.4 $ 62.8 $ 102.8 Production costs $ 19.9 $ 22.8 $ 13.6 $ 21.4 $ 30.1 EBITDA $ 26.2 $ 30.5 $ 27.7 $ 41.2 $ 72.5 Operating income $ 22.0 $ 26.6 $ 23.5 $ 34.9 $ 66.7 Operating cash flow $ 11.2 $ 24.8 $ 20.8 $ 28.7 $ 49.6 Capital expenditures $ 4.4 $ 7.8 $ 10.2 $ 6.5 $ 4.4 Gross profit $ 22.1 $ 26.5 $ 23.5 $ 35.3 $ 66.7 Gross margin 47.8 % 49.6 % 56.8 % 56.2 % 64.9 %   3Q 2012       1Q 2012       1Q 2012       4Q 2011       3Q 2011 Tons milled 344,349 391,005 378,104 371,983 428,978 Average silver grade (oz/t) 4.9 4.3 4.6 5.4 5.4 Average recovery rate 90.3 % 88.3 % 91.2 % 90.5 % 88.6 % Silver production (000's) 1,526 1,470 1,591 1,997 2,051 Cash operating costs/Ag Oz $ 12.13 $ 11.05 $ 10.21 $ 9.18 $ 9.32                                   Table 20:Reconciliation of EBITDA for San Bartolomé   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 46.2 $ 53.4 $ 41.4 $ 62.8 $ 102.8 Production costs applicable to sales (19.9 ) (22.8 ) (13.6 ) (21.4 ) (30.1 ) Administrative and general — — — — — Exploration (0.1 ) (0.1 ) (0.1 ) — (0.1 ) Care and maintenance and other — — — (0.2 ) (0.1 ) Pre-development       —         —         —         —         —   EBITDA       $26.2         $30.5         $27.7         $41.2         $72.5                                     Table 21:Operating Cash Flow for San Bartolomé   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Cash provided by (used in) operating activities $ 19.8 $ 31.0 $ (27.4 ) $ 22.3 $ 78.1 Changes in operating assets and liabilities: Receivables and other current assets $ 7.1 $ (0.7 ) 2.2 0.2 5.0 Prepaid expenses and other $ 0.8 $ 4.4 (2.8 ) 4.6 0.2 Inventories $ 5.0 $ (3.4 ) 4.7 2.9 (7.2 ) Accounts payable and accrued liabilities       $ (21.5 )       $ (6.5 )       44.1         (1.3 )       (26.5 ) Operating Cash Flow       $11.2         $24.8         $20.8         $28.7         $49.6                                     Table 22:Results of Operations by Mine - Kensington   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 36.5 $ 21.1 $ 10.4 $ 32.9 $ 44.2 Production costs $ 26.9 $ 16.1 $ 17.1 $ 31.7 $ 24.3 EBITDA $ 8.1 $ 4.7 $ (6.9 ) $ 0.5 $ 19.6 Operating income/(loss) $ (3.5 ) $ (5.0 ) $ (13.6 ) $ (6.6 ) $ 10.3 Operating cash flow $ 7.3 $ 0.6 $ (7.8 ) $ (4.1 ) $ 14.5 Capital expenditures $ 9.0 $ 9.3 $ 10.9 $ 12.0 $ 9.2 Gross profit/(loss) $ (1.9 ) $ (4.7 ) $ (13.3 ) $ (5.7 ) $ 10.3 Gross margin (5.2 )% (22.3 )% (127.9 )% (17.3 )% 23.3 %   3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Tons mined 113,770 84,632 56,815 68,831 92,783 Tons milled 123,428 97,794 43,936 71,700 116,255 Average gold grade (oz/t) 0.21 0.23 0.18 0.19 0.24 Average recovery rate 95.9 % 94.2 % 93.4 % 96.5 % 91.7 % Gold production 24,391 21,572 7,444 13,299 25,687 Cash operating costs/Ag Oz $ 1,298 $ 1,348 $ 2,709 $ 1,807 $ 973                                   Table 23:Reconciliation of EBITDA for Kensington   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 36.5 $ 21.1 $ 10.4 $ 32.9 $ 44.2 Production costs applicable to sales (26.9 ) (16.1 ) (17.1 ) (31.7 ) (24.3 ) Administrative and general — — — — — Exploration (1.5 ) (0.3 ) (0.2 ) (0.5 ) (0.3 ) Care and maintenance and other — — — (0.2 ) — Pre-development       —         —         —         —         —   EBITDA       $8.1         $4.7         $(6.9)       $0.5         $19.6                                     Table 24:Operating Cash Flow for Kensington   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Cash provided by operating activities $ 5.0 $ (12.5 ) $ 1.1 $ 9.3 $ 8.6 Changes in operating assets and liabilities: Receivables and other current assets $ 2.3 $ 4.6 (10.3 ) (5.1 ) 5.0 Prepaid expenses and other $ 0.5 $ (0.5 ) (1.0 ) 0.5 1.3 Inventories $ 1.8 $ 9.9 3.3 (10.1 ) (1.3 ) Accounts payable and accrued liabilities       $ (2.3 )       $ (0.9 )       (0.9 )       1.3         0.9   Operating Cash Flow       $7.3         $0.6         $(7.8)       $(4.1)       $14.5                                     Table 25:Results of Operations by Mine - Rochester   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 36.2 $ 34.2 $ 18.8 $ 11.1 $ 17.5 Production costs $ 21.0 $ 20.8 $ 9.6 $ 4.2 $ 11.4 EBITDA $ 12.9 $ 11.6 $ 7.2 $ 3.2 $ 2.7 Operating income $ 10.9 $ 9.5 $ 5.5 $ 4.6 $ 2.1 Operating cash flow $ 13.0 $ 11.8 $ 7.2 $ 3.4 $ 2.7 Capital expenditures $ 4.8 $ 2.9 $ 2.6 $ 7.7 $ 13.6 Gross profit $ 13.2 $ 11.3 $ 7.6 $ 5.9 $ 5.5 Gross margin 36.5 % 33.0 % 40.4 % 53.2 % 31.4 %   3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Tons mined 3,170,129 2,585,914 2,723,324 1,170,397 761,845 Average silver grade (oz/t) 0.52 0.63 0.55 0.54 n.a. Average gold grade (oz/t) 0.004 0.005 0.004 0.004 n.a. Silver production (000's) 819 713 441 373 352 Gold production 10,599 10,120 5,292 1,993 1,435 Cash operating costs/Ag Oz $ 9.58 $ 9.83 $ 23.35 $ 37.99 $ 36.71                                   Table 26:Reconciliation of EBITDA for Rochester   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 36.2 $ 34.2 $ 18.8 $ 11.1 $ 17.5 Production costs applicable to sales (21.0 ) (20.8 ) (9.6 ) (4.2 ) (11.4 ) Administrative and general — — — — — Exploration (1.2 ) (1.1 ) (0.7 ) (1.5 ) (0.2 ) Care and maintenance and other (1.1 ) (0.7 ) (1.3 ) (2.2 ) (3.2 ) Pre-development       —         —         —         —         —   EBITDA       $12.9         $11.6         $7.2         $3.2         $2.7                                     Table 27:Operating Cash Flow for Rochester   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Cash provided by (used in) operating activities $ 7.3 $ 10.1 $ (7.1 ) $ (11.4 ) $ 0.9 Changes in operating assets and liabilities: Receivables and other current assets $ 0.6 $ (0.1 ) 0.3 (0.2 ) 0.2 Prepaid expenses and other $ 0.2 $ (1.0 ) 1.4 0.7 0.7 Inventories $ 6.5 $ 3.9 11.2 14.2 5.9 Accounts payable and accrued liabilities       $ (1.6 )       $ (1.1 )       1.4         0.1         (5.0 ) Operating Cash Flow       $13.0         $11.8         $7.2         $3.4         $2.7                                     Table 28:Results of Operations by Mine - Martha   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 4.9 $ 4.1 $ 3.6 $ 2.8 $ 6.0 Production costs $ 6.5 $ 7.1 $ 3.7 $ 3.9 $ 8.1 EBITDA $ (2.9 ) $ (10.6 ) $ (3.7 ) $ (3.3 ) $ (3.8 ) Operating loss $ (4.2 ) $ (11.3 ) $ (4.3 ) $ (3.0 ) $ (4.0 ) Operating cash flow $ (3.4 ) $ (5.5 ) $ (5.1 ) $ (5.0 ) $ (1.7 ) Capital expenditures $ — $ 0.5 $ 0.7 $ 1.4 $ 1.1 Gross loss $ (1.6 ) $ (3.7 ) $ (0.7 ) $ (1.7 ) $ (2.3 ) Gross margin (32.7 )% (90.2 )% (19.4 )% (60.7 )% (38.3 )%   3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Total tons milled 27,281 39,199 34,069 37,141 24,086 Average silver grade (oz/t) 4.17 3.52 4.43 4.65 5.33 Average gold grade (oz/t) — — — 0.01 0.01 Average recovery rate – Ag 81.5 % 78.2 % 81.4 % 75.2 % 92.3 % Average recovery rate – Au 82.6 % 72.4 % 64.6 % 74.2 % 72.9 % Silver production (000's) 93 108 123 130 119 Cash operating costs/Ag Oz $ 48.12 $ 55.07 $ 46.48 $ 33.75 $ 39.31                                   Table 29:Reconciliation of EBITDA for Martha   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 4.9 $ 4.1 $ 3.6 $ 2.8 $ 6.0 Production costs applicable to sales (6.5 ) (7.1 ) (3.7 ) (3.9 ) (8.2 ) Administrative and general — — — — — Exploration (1.2 ) (2.8 ) (3.4 ) (2.1 ) (1.5 ) Care and maintenance and other (0.1 ) (4.8 ) (0.2 ) (0.1 ) (0.1 ) Pre-development       —         —         —         —         —   EBITDA       $(2.9)       $(10.6)       $(3.7)       $(3.3)       $(3.8)                                   Table 30:Operating Cash Flow for Martha   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Cash provided by (used in) operating activities $ (3.9 ) $ (3.3 ) $ (7.1 ) $ (3.2 ) $ 0.2 Changes in operating assets and liabilities: Receivables and other current assets (0.9 ) (0.6 ) 3.5 (0.9 ) 2.3 Prepaid expenses and other (0.1 ) 0.1 (0.1 ) (0.3 ) 0.4 Inventories (1.7 ) (2.3 ) 0.4 0.4 (3.3 ) Accounts payable and accrued liabilities       3.2         0.6         (1.8 )       (1.0 )       (1.3 ) Operating Cash Flow       $(3.4)       $(5.5)       $(5.1)       $(5.0)       $(1.7)                                   Table 31:Results of Operations by Mine - Endeavor   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 4.1 $ 5.2 $ 6.7 $ 2.8 $ 6.2 Production costs $ 2.0 $ 2.6 $ 2.7 $ 1.0 $ 3.2 EBITDA $ 2.1 $ 2.6 $ 4.0 $ 1.8 $ 3.0 Operating income $ 1.3 $ 1.1 $ 2.3 $ 1.1 $ 2.1 Operating cash flow $ 1.6 $ 2.8 $ 3.5 $ 2.1 $ 1.3 Capital expenditures $ — $ — $ — $ — $ — Gross profit $ 1.3 $ 1.1 $ 2.3 $ 1.1 $ 2.1 Gross margin 31.7 % 21.2 % 34.3 % 39.3 % 33.9 %   3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Silver Production (000's) 140 240 248 111 138 Cash Operating Costs/Ag Oz $ 15.97 $ 17.50 $ 16.64 $ 14.74 $ 22.26                                   Table 32:Reconciliation of EBITDA for Endeavor   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Sales of metal $ 4.1 $ 5.2 $ 6.7 $ 2.8 $ 6.2 Production costs applicable to sales (2.0 ) (2.6 ) (2.7 ) (1.0 ) (3.2 ) Administrative and general — — — — — Exploration — — — — — Care and maintenance and other — — — — — Pre-development       —         —         —         —         —   EBITDA       $2.1         $2.6         $4.0         $1.8         $3.0                                     Table 33:Operating Cash Flow for Endeavor   in millions of US$3Q 2012       2Q 2012       1Q 2012       4Q 2011       3Q 2011 Cash provided by operating activities $ 1.5 $ 3.6 $ 2.5 $ 2.1 $ 2.4 Changes in operating assets and liabilities: Receivables and other current assets 0.5 (1.7 ) 1.7 (1.2 ) (1.4 ) Prepaid expenses and other — — — — — Inventories (0.3 ) 0.2 0.6 0.1 (0.9 ) Accounts payable and accrued liabilities       (0.1 )       0.7         (1.3 )       1.1         1.2   Operating Cash Flow       $1.6         $2.8         $3.5         $2.1         $1.3                                     Table 34:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsThree months ended September 30, 2012   (In thousands except ounces and per ounce costs) PalmarejoSanBartoloméKensingtonRochesterMarthaEndeavorTotal Total cash operating cost (Non-U.S. GAAP) $ 6,878 $ 18,504 $ 31,660 $ 7,853 $ 4,461 $ 2,241 $ 71,597 Royalties — 1,879 — 1,441 100 — 3,420 Production taxes —   —   —   —   —   —   —   Total cash costs (Non-U.S. GAAP) $ 6,878   $ 20,383   $ 31,660   $ 9,294   $ 4,561   $ 2,241   $ 75,017   Add/Subtract: Third party smelting costs — — (3,141 ) — (541 ) (605 ) (4,287 ) By-product credit 39,034 — — 17,506 124 — 56,664 Other adjustments 424 720 2 85 798 — 2,029 Change in inventory 2,337 (1,166 ) (1,639 ) (5,871 ) 1,539 345 (4,455 ) Depreciation, depletion and amortization 33,997   4,161   11,512   2,061   66   898   52,695   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 82,670   $ 24,098   $ 38,394   $ 23,075   $ 6,547   $ 2,879   $ 177,663   Production of silver (ounces) 1,833,109 1,525,725 — 819,349 92,698 140,267 4,411,148 Cash operating cost per silver ounce $ 3.75 $ 12.13 $ — $ 9.58 $ 48.12 $ 15.97 $ 9.05 Cash costs per silver ounce $ 3.75 $ 13.36 $ — $ 11.34 $ 49.20 $ 15.97 $ 9.83 Production of gold (ounces) — — 24,391 — — — 24,391 Cash operating cost per gold ounce $ — $ — $ 1,298 $ — $ — $ — $ 1,298 Cash cost per gold ounce $ — $ — $ 1,298 $ — $ — $ — $ 1,298                                   Table 35:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsNine months ended September 30, 2012   (In thousands except ounces and per ounce costs) PalmarejoSanBartoloméKensingtonRochesterMarthaEndeavorTotal Total cash operating cost (Non-U.S. GAAP) $ (774 ) $ 51,006 $ 80,911 $ 25,164 $ 16,110 $ 10,571 $ 182,988 Royalties — 5,372 — 1,959 305 — 7,636 Production taxes —   —   —   1,255   —   —   1,255   Total cash costs (Non-U.S. GAAP) $ (774 ) $ 56,378   $ 80,911   $ 28,378   $ 16,415   $ 10,571   $ 191,879   Add/Subtract: Third party smelting costs — — (7,044 ) — (3,959 ) (2,843 ) (13,846 ) By-product credit 141,923 — — 42,758 422 — 185,103 Other adjustments 792 642 17 401 882 — 2,734 Change in inventory 15,129 (703 ) (13,805 ) (20,206 ) 3,516 (457 ) (16,526 ) Depreciation, depletion and amortization 114,499   12,450   27,836   5,763   1,216   4,134   165,898   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 271,569   $ 68,767   $ 87,915   $ 57,094   $ 18,492   $ 11,405   $ 515,242   Production of silver (ounces) 6,681,407 4,587,359 — 1,973,392 323,286 628,393 14,193,197 Cash operating cost per silver ounce $ (0.12 ) $ 11.12 $ — $ 12.75 $ 49.82 $ 16.82 $ 7.19 Cash costs per silver ounce $ (0.12 ) $ 12.29 $ — $ 14.38 $ 50.76 $ 16.82 $ 7.82 Production of gold (ounces) — — 53,407 — — — 53,407 Cash operating cost per gold ounce $ — $ — $ 1,515 $ — $ — $ — $ 1,515 Cash cost per gold ounce $ — $ — $ 1,515 $ — $ — $ — $ 1,515                                   Table 36:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsThree months ended September 30, 2011   (In thousands except ounces and per ounce costs) PalmarejoSanBartoloméKensingtonRochesterMarthaEndeavorTotal Total cash operating cost (Non-U.S. GAAP) $ (2,607 ) $ 19,120 $ 25,000 $ 12,912 $ 4,660 $ 3,068 $ 62,153 Royalties — 3,217 — 827 234 — 4,278 Production taxes —   —   —   260   —   —   260   Total cash costs (Non-U.S. GAAP) $ (2,607 ) $ 22,337   $ 25,000   $ 13,999   $ 4,894   $ 3,068   $ 66,691   Add/Subtract: Third party smelting costs — — (3,096 ) — (566 ) (808 ) (4,470 ) By-product credit 51,185 — — 2,433 198 — 53,816 Other adjustments 435 111 — 117 290 — 953 Change in inventory 15,099 7,637 2,443 (5,193 ) 3,328 949 24,263 Depreciation, depletion and amortization 41,174   6,062   9,568   556   237   914   58,511   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 105,286   $ 36,147   $ 33,915   $ 11,912   $ 8,381   $ 4,123   $ 199,764   Production of silver (ounces) 2,250,818 2,051,426 — 351,717 118,523 137,843 4,910,327 Cash operating cost per silver ounce $ (1.16 ) $ 9.32 $ — $ 36.71 $ 39.31 $ 22.26 $ 7.57 Cash costs per silver ounce $ (1.16 ) $ 10.89 $ — $ 39.80 $ 41.29 $ 22.26 $ 8.49 Production of gold (ounces) — — 25,687 — — — 25,687 Cash operating cost per gold ounce $ — $ — $ 973 $ — $ — $ — $ 973 Cash cost per gold ounce $ — $ — $ 973 $ — $ — $ — $ 973                                   Table 37:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsNine months ended September 30, 2011   (In thousands except ounces and per ounce costs) PalmarejoSanBartoloméKensingtonRochesterMarthaEndeavorTotal Total cash operating cost (Non-U.S. GAAP) $ (3,014 ) $ 49,946 $ 72,199 $ 17,787 $ 12,981 $ 9,926 $ 159,825 Royalties — 8,281 — 1,734 587 — 10,602 Production taxes —   —   —   728   —   —   728   Total cash costs (Non-U.S. GAAP) $ (3,014 ) $ 58,227   $ 72,199   $ 20,249   $ 13,568   $ 9,926   $ 171,155   Add/Subtract: Third party smelting costs — — (9,122 ) — (2,366 ) (2,390 ) (13,878 ) By-product credit 139,842 — — 6,554 706 — 147,102 Other adjustments 1,208 298 19 256 462 — 2,243 Change in inventory 1,216 (196 ) 7,015 (3,005 ) (869 ) 45 4,206 Depreciation, depletion and amortization 116,584   16,387   28,823   1,655   81   2,398   165,928   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 255,836   $ 74,716   $ 98,934   $ 25,709   $ 11,582   $ 9,979   $ 476,756   Production of silver (ounces) 6,351,120 5,503,951 — 1,018,844 399,630 501,638 13,775,183 Cash operating cost per silver ounce $ (0.47 ) $ 9.07 $ — $ 17.46 $ 32.48 $ 0.02 $ 6.36 Cash costs per silver ounce $ (0.47 ) $ 10.58 $ — $ 19.87 $ 33.95 $ 18.85 $ 7.18 Production of gold (ounces) — — 75,121 — — — 75,121 Cash operating cost per gold ounce $ — $ — $ 961 $ — $ — $ — $ 961 Cash cost per gold ounce $ — $ — $ 961 $ — $ — $ — $ 961                                   Table 38:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsThree months ended June 30, 2012   (In thousands except ounces and per ounce costs) PalmarejoSanBartoloméKensingtonRochesterMarthaEndeavorTotal Total cash operating cost (Non-U.S. GAAP) $ (2,009 ) $ 16,249 $ 29,083 $ 7,008 $ 5,942 $ 4,204 $ 60,477 Royalties — 1,457 — 510 124 — 2,091 Production taxes —   —   —   641   —   —   641   Total cash costs (Non-U.S. GAAP) $ (2,009 ) $ 17,706   $ 29,083   $ 8,159   $ 6,066   $ 4,204   $ 63,209   Add/Subtract: Third party smelting costs — — (2,820 ) — (1,444 ) (1,449 ) (5,713 ) By-product credit 50,363 — — 16,295 157 — 66,815 Other adjustments 124 117 7 229 26 — 503 Change in inventory 14,060 4,950 (10,165 ) (3,931 ) 2,297 (202 ) 7,009 Depreciation, depletion and amortization 42,741   4,070   9,719   2,060   631   1,592   60,813   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 105,279   $ 26,843   $ 25,824   $ 22,812   $ 7,733   $ 4,145   $ 192,636   Production of silver (ounces) 2,365,484 1,470,342 — 712,706 107,895 240,168 4,896,595 Cash operating cost per silver ounce $ (0.85 ) $ 11.05 $ — $ 9.83 $ 55.07 $ 17.50 $ 6.41 Cash costs per silver ounce $ (0.85 ) $ 12.04 $ — $ 11.45 $ 56.21 $ 17.50 $ 6.97 Production of gold (ounces) — — 21,572 — — — 21,572 Cash operating cost per gold ounce $ — $ — $ 1,348 $ — $ — $ — $ 1,348 Cash cost per gold ounce $ — $ — $ 1,348 $ — $ — $ — $ 1,348 Coeur d'Alene Mines CorporationWendy Yang, Vice President of Investor Relations(208) 665-0345orStefany Bales, Director of Corporate Communications(208) 667-8263www.coeur.com