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Press release from Business Wire

Coeur Reports Strong Operating Cash Flow and Record Gold Production in 2012; Expected Production Growth in 2013 Driven by Rochester Expansion

Thursday, February 21, 2013

Coeur Reports Strong Operating Cash Flow and Record Gold Production in 2012; Expected Production Growth in 2013 Driven by Rochester Expansion08:30 EST Thursday, February 21, 2013 COEUR D'ALENE, Idaho (Business Wire) -- Coeur d'Alene Mines Corporation (NYSE: CDE) (TSX: CDM) reported strong operating cash flow1 of $338.7 million from metal sales of $895.5 million for the full year 2012. Production totaled 18.0 million silver ounces and a record 226,486 gold ounces. Coeur expects to generate robust operating cash flow from anticipated 2013 production of 18.0 - 19.5 million ounces of silver and a record 250,000 - 265,000 ounces of gold. Coeur repurchased nearly $20.0 million, or 0.9 million common shares, during the second half of 2012. Coeur also acquired the remaining interest of the Joaquin silver-gold project in Argentina in December 2012 for $60 million of cash and stock. 2012 Highlights Silver production was 18.0 million ounces, a 6% decrease from 2011. Gold production was a record 226,486 ounces, up 3% from 2011. Average realized prices were $30.92 per silver ounce and $1,665 per gold ounce, down 12% for silver and up 7% for gold from 2011. Net metal sales totaled $895.5 million, down 12% from 2011. Operating cash flow1 totaled $338.7 million, down 25% from 2011. Including changes in working capital, net cash from operating activities was $271.6 million compared with $416.2 million in 2011. Consolidated cash operating costs1 were $7.57 per silver ounce compared with $6.31 per silver ounce in 2011. Kensington's cash operating costs1 per gold ounce were $1,358 compared with $1,088 in 2011 and ended 2012 at $950 per ounce during December. Adjusted earnings1 were $121.5 million or $1.36 per share, compared with $232.5 million, or $2.60 per share, in 2011. Net income for 2012, which included a non-cash fair market value adjustment of negative $23.5 million, was $48.7 million, or $0.54 per share, compared with net income of $93.5 million, or $1.05 per share, in 2011. Cash, cash equivalents and short-term investments were $126.4 million at December 31, 2012, compared with $195.3 million a year ago. 2013 Outlook Coeur expects to produce 18.0 - 19.5 million ounces of silver and 250,000 - 265,000 ounces of gold in 2013. Cash operating costs1 per ounce are estimated at $8.00 - $9.00 per silver ounce, assuming a gold by-product price of $1,650 per ounce. Kensington's cash operating costs1 are estimated at $900 - $950 per gold ounce. Coeur expects to invest $40.0 million in exploration with the goal of increasing estimated mineral reserves and resources at year-end 2013.       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.   Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, “Coeur has grown considerably over the past five years and is now one of the world's largest silver producers. Today, we have a new management team, a stronger balance sheet and a disciplined but aggressive approach to moving the Company forward which we believe will lead to operational consistency, substantial growth and long-term value creation for our shareholders. “We expect 2013 to be a strong year for Coeur, supported by significant expected growth at Rochester, a full year of steady state operations at Kensington, and stable production at Palmarejo and San Bartolomé. We worked through operational challenges at Palmarejo and San Bartolomé in the fourth quarter and expect these operations to achieve sustainable production rates in 2013 and beyond. “Production at Rochester is expected to increase 35% - 50% this year versus 2012 levels, which we anticipate will drive cash operating costs down and significantly increase the mine's cash flow. This expansion will require an investment of approximately $30 - $35 million in 2013 and we expect it will allow annual production of 4.5 - 5.0 million silver ounces and approximately 45,000 gold ounces to continue for at least seven years. We are enthusiastic about future opportunities to expand production at Rochester even further that could make this asset the second largest producer in our portfolio. “We are pleased to see positive results at Kensington after taking six months to re-tool the operation to generate consistent performance. We will also invest approximately $20 million of capital at San Bartolomé in 2013 in order to boost annual production by 10% - 15% in 2014 and beyond. This investment is expected to generate a near triple digit rate of return." Commenting on further 2013 goals, Mr. Krebs said, “For good reason, investors are demanding that mining companies demonstrate capital discipline, focus on true value creation, return capital to shareholders, and control costs in order to provide operating leverage to higher metals prices. Our organization is focusing on these priorities and on reducing the risks to our business in order to provide investors a compelling rationale to own our shares. Our key objectives in 2013 are: Achieve excellence in employee health and safety, environmental stewardship and community relations. Double our efforts to achieve operational consistency and reliability by improving planning, maintenance and execution of our key capital projects. Invest in accretive, high-return internal and external growth opportunities - including our own shares - in order to build net asset value and resources on a per share basis. Maximize free cash flow by containing operating costs, identifying revenue enhancement opportunities, proactively managing working capital. Continue strengthening our organizational structure and management. Maintain an aggressive approach toward investing in exploration, which served the Company well in 2012.”                         Table 1: Financial Highlights (Unaudited)   (All amounts in millions, except per share amounts, average realized prices and gold ounces sold)4Q2012     4Q2011     QuarterVariance     YTD2012     YTD2011     YTDVariance Sales of Metal$205.9 $ 246.9 (17 %) $895.5 $ 1,021.2 (12 %) Production Costs$107.4 $ 109.1 (2 %) $456.8 $ 420.0 9 % EBITDA (1)$86.2 $ 119.7 (28 %) $372.4 $ 531.3 (30 %) Adjusted Earnings (1)$26.2 $ 43.2 (39 %) $121.5 $ 232.5 (48 %) Adjusted Earnings Per Share(1)$0.29 $ 0.48 (40 %) $1.36 $ 2.60 (48 %) Net Income$37.6 $ 11.4 230 % $48.7 $ 93.5 (48 %) Earnings Per Share$0.42 $ 0.13 223 % $0.54 $ 1.05 (49 %) Operating Cash Flow (1)$79.2 $ 97.5 (19 %) $338.7 $ 454.4 (25 %) Cash From Operating Activities$61.7 $ 87.4 (29 %) $271.6 $ 416.2 (35 %) Capital Expenditures$21.8 $ 40.2 (46 %) $115.6 $ 120.0 (4 %) Cash, Cash Equivalents & Short-Term Investments$126.4 $ 195.3 (35 %) $126.4 $ 195.3 (35 %) Total Debt(1) (net of debt discount)$48.1 $ 121.5 (60 %) $48.1 $ 121.5 (60 %) Weighted Average Shares Issued & Outstanding89.1 89.5 — 89.4 89.4 — Average Realized Price Per Ounce - Silver$32.52 $ 30.87 5 % $30.92 $ 35.15 (12 %) Average Realized Price Per Ounce - Gold$1,709 $ 1,674 2 % $1,665 $ 1,558 7 % Silver Ounces Sold3.6 5.1 (29 %) 18.0 19.1 (6 %) Gold Ounces Sold55,565 55,308 — 213,185 238,551 (11 %)         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.   Net metal sales for 2012 decreased from 2011 to $895.5 million due to lower second half production at Palmarejo and San Bartolomé, closure of the Martha underground mine in Argentina and a lower average realized silver price. This decrease in metal sales was partially offset by increased production at Rochester and a higher average realized gold price compared with 2011. Silver contributed 61% of the Company's total metal sales in 2012 compared with 65% in 2011. Consolidated production costs were $456.8 million in 2012, a 9% increase from 2011. During the fourth quarter of 2012, total production costs of $107.4 million were flat compared with the fourth quarter 2011. Higher cash operating costs1 per silver ounce were due to lower production compared with 2011, including low production from Martha, which ceased active mining operations in September 2012. Unit costs were also impacted by remediation work in the underground operations and increased stripping of waste tons in the open pit operations at Palmarejo and overall increased maintenance costs. Prior to changes in working capital, Coeur generated $338.7 million in operating cash flow1 in 2012 compared with $454.4 million in 2011. Including changes in working capital, net cash from operating activities was $271.6 million compared with $416.2 million in 2011. Fourth quarter operating cash flow1 of $79.2 million improved from $77.3 million in the third quarter 2012 but decreased from $97.5 million in the fourth 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. Adjusted earnings were $121.5 million ($1.36 per share) in 2012, compared with $232.5 million ($2.60 per share) in 2011. Fourth quarter adjusted earnings were $26.2 million ($0.29 per share) compared with $25.8 million ($0.29 per share) in the third quarter 2012 and $43.2 million ($0.48 per share) in the fourth quarter 2011. On a U.S. GAAP basis, the Company realized net income of $48.7 million ($0.54 per share) in 2012 compared with net income of $93.5 million ($1.05 per share) in 2011. Reduced metal sales and fair value adjustments of negative $23.5 million reduced net income for 2012, while 2011 net income was reduced by fair value adjustments of negative $52.1 million. Fourth quarter net income, after fair value adjustments of $21.2 million, was $37.6 million ($0.42 per share) compared with net loss of $15.8 million, or $0.18 per share, after fair value adjustments of negative $37.6 million, in the third quarter 2012 and a net income of $11.4 million, or $0.13 per share, after fair value adjustments of $19.0 million, in the fourth quarter 2011. 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. Capital expenditures were $115.6 million in 2012, a 4% decrease from 2011. Capital expenditures 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, and tailings expansion, underground development and infrastructure improvements at Kensington. Cash, cash equivalents and short-term investments were $126.4 million at December 31, 2012. In August 2012, the Company entered into a four year senior secured revolving credit facility of up to $100 million, which remains undrawn. In January 2013, Coeur raised net proceeds of $291.1 million in 7.875% Senior Notes due 2021, resulting in current cash, cash equivalents and short term investments of approximately $400 million. Including the undrawn revolving credit facility, the Company has available liquidity of approximately $500 million. Shares outstanding at the end of 2012 totaled 90.3 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.                           Table 2: Operational Highlights: Production   (silver ounces in thousands)4Q 2012     4Q 2011     QuarterVariance     2012     2011     YTDVariance       Silver     Gold     Silver     Gold     Silver     Gold     Silver     Gold     Silver     Gold     Silver     Gold Palmarejo1,554     19,998 2,690     34,108 (42 %)     (41 %) 8,236     106,038 9,042     125,071 (9 %)     (15 %) San Bartolomé1,343— 1,997 — (33 %) n.a. 5,930— 7,501 — (21 %) n.a. Rochester82812,055 373 1,993 122 % 505 % 2,80138,066 1,392 6,276 101 % 507 % Martha—— 130 144 n.a. n.a. 323257 530 615 (39 %) (58 %) Kensington—28,717 — 13,299 n.a. 116 % —82,125 — 88,420 n.a. (7 %) Endeavor106       —       112       —       (5 %)     n.a.       734       —       613       —       20 %     n.a. Total3,83160,770 5,302 49,544 (28 %) 23 % 18,025226,486 19,078 220,382 (6 %) 3 %   *Additional operating statistics can be found in the tables in the appendix.                           Table 3: Operational Highlights: Cash Operating Costs Per Ounce1   4Q 2012       4Q 2011     QuarterVariance     2012   2011     YTDVariance Palmarejo$7.55 $ (2.13 ) 454 % $1.33   $ (0.97 ) 237 % San Bartolomé13.97 9.18 52 % 11.76 9.10 29 % Rochester2.17 37.99 (94 %) 9.62 22.97 (58 %) Martha— 33.75 n.a. 49.77 32.79 52 % Endeavor19.92       14.74       35 %     17.27     18.87       (8 %) Total$8.97 $ 6.19 45 % $7.57 $ 6.31 20 % Kensington$1,065 $ 1,807 (41 %) $1,358 $ 1,088 25 %   *Additional operating statistics can be found in the tables in the appendix.   Palmarejo, Mexico - Lower Grades Offset Higher Tons Mined Palmarejo produced 8.2 million ounces of silver and 106,038 ounces of gold in 2012, down 9% and 15%, respectively, compared with 2011. Cash operating costs1 per silver ounce of $1.33 in 2012 compared with negative cash operating costs1 of $0.97 in 2011 were a result of lower production, remediation work in the underground operations, accelerated open pit mining and higher maintenance costs. Normal mining rates resumed in the underground operation late in the fourth quarter in the upper 76 zone and production from zone 108 commenced as planned. A lower overall mining rate in zone 76 was partially offset by planned mining rates in zone 108, which contains lower grade ore. A record 465,498 tons were mined in the open pit in the fourth quarter, a 10% increase from the third quarter 2012 and 45% higher than open pit tons mined in the fourth quarter 2011. Silver grades in the new phase of the pit are expected to increase gradually over 2013. A record 563,123 tons of ore processed partially offset lower mill feed grades in 2012. The Palmarejo mill recorded solid recovery rates of 84.2% in silver and 91.4% in gold for the fourth quarter. Sales and operating cash flow1 totaled $442.1 million and $233.1 million, respectively, in 2012, including $79.4 million and $33.2 million in the fourth quarter. Capital expenditures were $38.5 million in 2012. The Company is optimizing the mine plan for Guadalupe and will provide operational details during the second half of the year. Guadalupe is expected to commence initial production in the second half of 2013.       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 - High Return Capital Investment Expected to Increase Production in 2014 Silver production was 5.9 million ounces in 2012, compared with 7.5 million ounces in 2011. Fourth quarter production of 1.3 million ounces of silver decreased from the third quarter due to lower silver grade and downtime resulting from grinding mill maintenance. Cash operating costs1 per silver ounce were $11.76 in 2012 compared to $9.10 in 2011, primarily due to lower production despite flat operational spending. Sales and operating cash flow1 totaled $178.0 million and $72.4 million, respectively, in 2012, including $37.0 million and $17.4 million, respectively, in the fourth quarter 2012. Capital expenditures were $25.7 million. The Company plans to increase mill capacity approximately 15% through an estimated capital expenditure of $17.0 - $20.0 million. This expansion is expected to increase the mine's annual production to 6.0 million ounces of silver over the next seven years at reduced cash operating costs per ounce1. Duilio Rivero has joined the Company as General Manager of San Bartolomé. Mr. Rivero was most recently the General Manager at Nyrstar's Campo Morado Mine in Mexico. Previously, he was General Manager for Nyrstar's El Toqui mine in Chile and for Yamana's Gualcamayo mine in Argentina. He is a mining engineer with over 20 years of experience in diverse roles in open pit and underground mines in South America. Mr. Rivero graduated from the University of San Juan, Argentina. Rochester, Nevada - High Return Investment Drives Expanded Production in 2013 and Beyond Rochester achieved its highest production quarter of the year in the fourth quarter, reaching full year production of 2.8 million silver ounces and 38,066 gold ounces, significantly higher than 2011. Increased production was the result of the first full year of production from a new heap leach pad, which was commissioned in late 2011. Cash operating costs1 of $9.62 per silver ounce in 2012 were 58% lower than $22.97 in 2011. Fourth quarter cash operating costs1 were $2.17 per silver ounce compared to $37.99 per silver ounce in the fourth quarter of 2011. Sales and operating cash flow1 totaled $132.4 million and $53.5 million, respectively, in 2012, including $43.2 million and $21.5 million, respectively, in the fourth quarter 2012. Capital expenditures were $11.8 million. In 2013, the Company plans a major crusher and heap leach capacity expansion at Rochester to boost production to 4.5 - 4.9 million ounces of silver and 44,000 - 46,000 ounces of gold. Total capital expenditures are expected to be $30.0 - $35.0 million in 2013, including $23.0 - $26.0 million of growth capital and the remainder for sustaining capital. The Company is investing $4.0 million during 2013 to expand the capacity of the primary crusher from 9.0 million tons to the currently permitted annual rate of 14.0 million tons. In addition (subject to final permits) the Company expects to expand the mine's heap leach capacity on existing pads to approximately 67.0 million tons at an estimated capital cost of approximately $15.0 million to accommodate higher production rates of ore coming from historic stockpiles. Further expansion potential is being planned. Engineering and permitting are underway for 40.0 million tons of additional pad capacity with expected initial production in 2016 to further extend the mine life and increase production rates from historic stockpiles. This capital project is estimated to cost $10.0 million scheduled for 2015-2016. Kensington, Alaska - First Full Year of Steady Operations to Drive Higher Production and Cash Flow Kensington produced 28,717 ounces of gold in the fourth quarter, its highest quarterly production for the year, and 18% higher than third quarter. Full year 2012 gold production was 82,125 ounces. Cash operating costs1 per gold ounce were $1,358 in 2012, compared to $1,088 per ounce in 2011, due to a short-term production scale back to complete several underground and surface infrastructure projects and to establish increased underground development footage. As production ramped up in April 2012, cash operating costs1 per gold ounce declined 40% through year-end to $1,065 per ounce in the fourth quarter and to $950 per ounce in December 2012. Sales totaled $111.0 million in 2012 and $43.0 million in the fourth quarter 2012. Kensington generated $14.5 million in operating cash flow1 in the fourth quarter and $14.5 million for the full year 2012 after roughly breaking even on a cash flow basis after the first nine months of 2012. Capital expenditures were $37.0 million in 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.   Organizational Update Frank L. Hanagarne, Jr. was appointed Senior Vice President and Chief Operating Officer effective February 4, 2013, as reported in the Company's Form 8-K filed on February 7, 2013. The Company is conducting a search for a new Chief Financial Officer while Mr. Hanagarne continues in that role in the interim. Mr. Hanagarne joined Coeur as Senior Vice President and Chief Financial Officer in October 2011 and assumed the duties of principal operating officer in January 2013. Mr. Hanagarne has over 30 years of industry experience in operations, finance and business development. He was previously the Chief Operating Officer of Valcambi, a precious metal refiner in Switzerland in which Newmont has an equity interest. Prior to that, he was Director of Corporate Development for Newmont. In his 17 years at Newmont, Frank also served as Mill Project Superintendent, Advisor in Corporate Health and Safety and Loss Prevention and held various positions of increasing responsibility in operations, business functions and environmental, health and safety. Mr. Hanagarne has a Master's in Business Administration degree from the University of Nevada, Reno, and a Bachelor of Metallurgical Engineering degree from the New Mexico Institute of Mining and Technology. In addition, Antonio Adames has been promoted to Vice President of Mexican and South American Operations. In his new role, Mr. Adames is responsible for overseeing the Palmarejo and San Bartolomé mines, the Joaquin project, new projects and business development, directing operational procedures and site management teams. Mr. Adames joined Coeur in 2008 as the Operations Manager for San Bartolomé and was promoted to General Manager of the mine in 2010. He was previously the Commissioning Manager for Pan American's San Vicente project in Bolivia. He has broad mining and processing experience in Bolivia, Honduras, Nicaragua and the Dominican Republic. Mr. Adames graduated with a Bachelor of Science degree in Chemical Engineering from the University of Santo Domingo, Dominican Republic. Acquisition of Full Interest in Joaquin Project In December 2012, Coeur consolidated its ownership of the Joaquin project in the prolific mining province of Santa Cruz, Argentina, in a stock and cash transaction. As noted in the Company's news release of December 11, 2012, the Company believes that Joaquin has substantial exploration upside and potential to become a significant silver producer. Joaquin has measured and indicated resources of 65.2 million ounces of silver and 61,000 ounces of gold, and inferred resources of 3.1 million ounces of silver and 4,000 ounces of gold at year-end 2012.2 Coeur intends to continue the drilling program at Joaquin and advance feasibility work during 2013. The subsequent development decision will be based on the economics of the project and our assessment of the political and business environment in Argentina at that time. Mineral Reserves and Resources2 As reported in its news release dated February 15, 2013, Coeur increased its total combined proven and probable reserves and measured and indicated resources of silver and gold by 19% and 12%, respectively, resulting in the addition of 85.2 million silver ounces and 462,000 gold ounces at year-end 2012 over 2011. These gains exclude the 18.0 million ounces of silver and 226,486 ounces of gold produced during 2012. Companywide proven and probable silver reserves increased 2% from 2011 to 220.4 million ounces. Measured and indicated silver resources increased 36% in 2012 compared to 305.0 million ounces in 2011. Proven and probable gold reserves declined 13% to 2.0 million ounces in 2012 while measured and indicated gold resources increased 45% to 2.4 million ounces compared to year-end 2011. At Rochester, the Company increased silver and gold reserves by 52% and 25%, respectively, over 2011 after producing 2.8 million silver ounces and 38,071 gold ounces in 2012. As described in the Company's January 17, 2013 news release, Rochester expects to increase production by 35 - 50% based on continued processing of historic stockpiles. These historic stockpiles contributed to the increases in silver and gold reserves. At Palmarejo, year-end 2012 consolidated silver and gold measured and indicated resources increased 169% from 17.0 million to 45.7 million ounces of silver and 370% from 205,000 to 964,000 ounces of gold compared to year-end 2011.       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.Please refer to the tables in the Appendix for tons and average grades associated with references of contained ounces in each category in this news release. All reserves and resources reported herein comply with Canadian National Instrument 43-101.   Exploration The Company invested $40.0 million in exploration in 2012, a 51% increase from 2011. A total of 625,152 feet (190,546 meters) were completed at the operations, with approximately 88% devoted to the operations. A similar portion of the $40.0 million exploration program for 2013 is focused on resource-to-reserve conversion at the operations. During 2013, the Company plans to invest another $40.0 million in exploration with a goal to increase mineral resources and to further define its measured, indicated and inferred resources, which should drive increases in its mineral reserves. The Company will focus in 2013 on 1) continuing to drill the historic stockpiles at Rochester to add low-cost reserves and resources; 2) expanding the existing reserves and resources at Palmarejo, including the nearby Guadalupe and La Patria deposits; 3) adding high-grade mineral resources at Kensington; 4) expanding the size of the mineral resources at the Joaquin project in Argentina; and 5) exploring for new silver and gold deposits at all of our properties. Palmarejo, Mexico2 In 2012, the $19.9 million exploration program at the Palmarejo district completed 341,975 feet (104,234 meters) of drilling. This included 149,635 feet (45,609 meters) of surface and underground drilling around the current Palmarejo mine. The remainder was devoted to the Guadalupe and La Patria deposits and other new targets such as La Independencia in the district. In 2013, over 95% of a $15.8 million exploration program in Mexico is earmarked for the Palmarejo district. Year-end silver and gold measured and indicated resources grew 169% from 17.0 million to 45.7 million ounces of silver and 370% from 205,000 to 964,000 ounces of gold compared to year-end 2011. Gains were realized in the immediate Palmarejo mine area followed by La Patria and Guadalupe. Guadalupe grew by 42% in silver and 31% in gold measured and indicated resources to 11.9 million ounces of silver and 134,000 ounces of gold, respectively. First time indicated resources from La Patria, located approximately nine kilometers from the main Palmarejo mine processing facility, totaled 9.8 million ounces of silver and 0.5 million ounces of gold. La Patria is being evaluated for standalone mining and processing and as feed for Palmarejo. During 2012, drilling to expand the main known Palmarejo deposits focused on the Tucson-Chapotillo zones with surface drilling and on the Rosario, 76 and 108 zones with underground drilling. At year-end 2012, Palmarejo's proven and probable reserves totaled 53.1 million ounces of silver and 665,000 ounces of gold. Rochester, Nevada, USA2 The Company spent $3.9 million in exploration at Rochester in 2012, resulting in significant increases in reserves and measured and indicated resources at year-end 2012. The Company completed 138,121 feet (42,099 meters) of reverse circulation, Sonic® (rotary vibratory drilling) and core drilling at the Rochester North and West historic stockpiles, and Northwest Rochester, Nevada Packard and South Mystic areas in 2012. The Company has allocated $3.5 million for exploration at the Rochester property in 2013. Drilling on just two of six historic stockpiles was successful in defining new mineral resources and mineral reserves at Rochester. Drilling will continue on these and the other stockpiles in 2013. Rochester's year-end silver proven and probable reserves were 44.9 million ounces of silver and 308,000 of gold, up 52% and 25%, respectively, over 2011. Silver measured and indicated resources increased 7% from 112.3 million ounces at year-end 2011 to 120.7 million ounces at year-end 2012. Kensington, Alaska, USA2 During 2012, the Company spent $7.1 million on exploration at Kensington, completing 143,796 feet (43,829 meters) of core drilling mostly devoted to in-fill drilling of Block K and the Raven veins. Additional drilling focused on other targets such as Kensington South, the Ann Trend, Elmira and the historic Jualin mine. The Company plans for an additional underground drilling program in 2013 on Zone 10, Zone 50, Zone 30, Kensington South, Elmira vein, and Ann. Continued surface drilling is planned at Jualin and several other targets on the property. The total 2013 Kensington exploration program is expected to be $8.6 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.2.Please refer to the tables in the Appendix for tons and average grades associated with references of contained ounces in each category in this news release. All reserves and resources reported herein comply with Canadian National Instrument 43-101.   Increased definition drilling to $3.9 million improved model reconciliation to production in 2012 has improved the Company's overall understanding of the Kensington deposit. This has enabled the Company to develop a more reliable and accurate mine plan, and improve exploration targeting, which is expected to subsequently add to the reserve and resource base. Drilling results at the Raven vein, located approximately 2,000 feet (600 meters) from the main underground workings at Kensington, identified initial proven and probable reserves of 50,400 ounces contained within 151,000 tons, at an average gold grade of 0.33 opt, 51% higher than the overall average reserve grade at Kensington. Kensington's proven and probable reserves totaled 1.0 million ounces of gold compared with 1.3 million ounces of gold in 2011. San Bartolomé, Bolivia2 In 2012, the Company invested $0.4 million in exploration trenching and sampling at several silver-bearing gravel deposits at San Bartolomé. The Company has planned a $0.7 million exploration program in 2013. Exploration in the second half of 2012 confirmed a new silver discovery called Pucka Loma, which occurs approximately 2.4 miles (4 kilometers) northwest of the San Bartolomé mill facility. Exploration trenching and sampling has defined silver mineralization in two separate zones. The largest of which, Pucka Loma Main, measures approximately 1,300 feet (400 meters) east to west by 2,800 feet (850 meters) north to south. Infill trenching and sampling are underway now, the results of which will be used to prepare an estimate of the in-situ silver tons and grade. San Bartolomé has long lived proven and probable reserves of 109.1 million ounces of silver, after production of 5.9 million ounces of silver in 2012, compared with 118.0 million ounces of silver at year-end 2011. Joaquin Project, Argentina2 The Company spent $5.8 million at the Joaquin project in the prolific mining province of Santa Cruz, Argentina, completing 54,809 feet of drilling (16,706 meters) at the two known deposits, La Negra and La Morocha, and conducting preliminary metallurgical work. Joaquin is located about 70 kilometers north of the Company's former Martha mine, which closed in September 2012. In December 2012, the Company acquired the remaining interest in Joaquin to consolidate its ownership. The Company has earmarked $3.3 million for exploration drilling in 2013, which is expected to expand the two deposits, allow the Company to test new targets on the property and to conduct further engineering and metallurgical work to advance the feasibility work. Joaquin's silver and gold ounces of measured and indicated resources increased by over 234% and 74%, respectively, from the pro forma 100% interest year-end 2011 mineral estimates, to 65.2 million ounces of silver and 61,000 ounces of gold. The average silver grade of the measured and indicated mineral resources increased 52% from 2.48 to 3.78 ounces per ton. Lejano Project, Argentina2 The Lejano project in Argentina, located approximately 80 kilometers north of Joaquin, reported first time indicated resources of 3.0 million ounces of silver and 10,000 ounces of gold and inferred resources of 5.7 million ounces of silver and 19,000 ounces of gold. In 2012, the Company invested $1.4 million at at Lejano completing 4,888 feet of drilling (1,490 meters). Coeur expects to invest $1.8 million in exploration activities at Lejano in 2013.       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.Please refer to the tables in the Appendix for tons and average grades associated with references of contained ounces in each category in this news release. All reserves and resources reported herein comply with Canadian National Instrument 43-101.   2013 Outlook Estimated production for 2013 is provided in the table below and was reported in the Company's January 17, 2013 news release. 2013 cash operating costs1 after by-product credit (assuming the current gold price of approximately $1,650 per ounce), are expected to be $8.00 - $9.00 per silver ounce. Kensington's 2013 cash operating costs1 are expected to decline significantly to $900 - $950 per gold ounce. Higher silver and gold production and corresponding lower cash operating costs1 per ounce of silver and gold are expected in the second half of 2013 compared to the first half of the year. Capital expenditures for 2013 are estimated at $125 - $140 million, including $64 - $69 million in sustaining capital and $60 - $71 million in growth capital.             Table 4: 2013 Production Outlook   (silver ounces in thousands)     Country     Silver     GoldPalmarejo Mexico 7,700-8,300 98,000-105,000 San Bartolomé Bolivia 5,300-5,700 — Rochester Nevada, USA 4,500-4,900 44,000-46,000 Endeavor Australia 500-600 — Kensington     Alaska, USA     —     108,000-114,000 Total           18,000-19,500     250,000-265,000   Conference Call Information Coeur will hold a conference call to discuss the Company's 2012 and fourth quarter 2012 results at 1 p.m. Eastern time on February 21, 2013.                     Dial-In Numbers: (877) 768-0708 (US and Canada) (660) 422-4718 (International)   Conference ID: 9061 3404   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 March 14, 2013.                     Replay number: (855) 859-2056 (U.S. and Canada) International replay: (404) 537-3406 (International)   Conference ID: 9061 3404   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, exploration results 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 risk that permits necessary for the planned Rochester expansion may not be obtained, 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.       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.   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 has four precious metals mines in the Americas generating strong production, sales and cash flow in continued robust metals markets. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also owns a non-operating interest in a low-cost mine in Australia, and conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia.             Table 5: Operating Statistics from Continuing Operations - (Unaudited):   201220112010PRIMARY SILVER OPERATIONS:Palmarejo(1) Tons milled 2,114,366 1,723,056 1,835,408 Ore grade/Ag oz 4.70 6.87 4.60 Ore grade/Au oz 0.05 0.08 0.06 Recovery/Ag oz (%)(1) 83.0 76.4 69.8 Recovery/Au oz (%)(1) 94.4 92.2 91.1 Silver production ounces(3) 8,236,013 9,041,488 5,887,576 Gold production ounces(3) 106,038 125,071 102,440 Cash operating costs/oz(4) $ 1.33 $ (0.97 ) $ 4.10 Cash cost/oz(4) $ 1.33 $ (0.97 ) $ 4.10 Total production cost/oz $ 19.26 $ 16.80 $ 19.66 San Bartolomé Tons milled 1,477,271 1,567,269 1,504,779 Ore grade/Ag oz 4.49 5.38 5.03 Recovery/Ag oz (%) 89.5 88.9 88.6 Silver production ounces(3) 5,930,394 7,501,367 6,708,775 Cash operating costs/oz(4) $ 11.76 $ 9.10 $ 7.87 Cash cost/oz(4) $ 12.95 $ 10.64 $ 8.67 Total production cost/oz $ 15.81 $ 13.75 $ 11.72 Rochester(2) Tons Mined 11,710,795 2,028,889 — Ore grade/Ag oz 0.55 0.47 — Ore grade/Au oz 0.0047 0.0047 — Recovery/Ag oz (%)(2) 57.0 165.1 — Recovery/Au oz (%)(2) 89.9 75.6 — Silver production ounces(3) 2,801,405 1,392,433 2,023,423 Gold production ounces(3) 38,066 6,276 9,641 Cash operating costs/oz(4) 9.62 22.97 2.93 Cash cost/oz(4) 11.65 24.82 3.78 Total production cost/oz 14.05 27.21 4.82         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.               201220112010Martha(5) Tons milled 100,548 101,167 56,401 Ore grade/Ag oz 4.01 6.29 31.63 Ore grade/Au oz 0.0035 0.0082 0.04 Recovery/Ag oz (%) 80.3 83.2 88.3 Recovery/Au oz (%) 72.2 74.0 84.1 Silver production ounces 323,386 529,602 1,575,827 Gold production ounces 257 615 1,838 Cash operating costs/oz(4) $ 49.77 $ 32.79 $ 13.16 Cash cost/oz(4) $ 50.71 $ 34.08 $ 14.14 Total production cost/oz $ 55.03 $ 36.19 $ 20.02 Endeavor Tons milled 791,209 743,936 653,550 Ore grade/Ag oz 2.26 1.83 1.96 Recovery/Ag oz (%) 41.0 45.0 44.3 Silver production ounces 734,008 613,361 566,134 Cash operating costs/oz(4) $ 17.27 $ 18.87 $ 10.15 Cash cost/oz(4) $ 17.27 $ 18.87 $ 10.15 Total production cost/oz $ 23.52 $ 24.00 $ 13.66 GOLD OPERATIONS:Kensington Tons milled 394,780 415,340 174,028 Ore grade/Au oz 0.22 0.23 0.28 Recovery/Au oz (%) 95.6 92.7 89.9 Gold production ounces(3) 82,125 88,420 43,143 Cash operating costs/oz(4) $ 1,358 $ 1,088 $ 989 Cash cost/oz(4) $ 1,358 $ 1,088 $ 989 Total production cost/oz $ 1,865 $ 1,494 $ 1,394 CONSOLIDATED PRODUCTION TOTALS Silver ounces(3) 18,025,206 19,078,251 16,761,735 Gold ounces(3) 226,486 220,382 157,062 Cash operating costs/oz(4) $ 7.57 $ 6.31 $ 6.53 Cash cost per oz/silver(4) $ 8.30 $ 7.09 $ 7.05 Total production cost/oz $ 18.14 $ 17.14 $ 14.52 CONSOLIDATED SALES TOTALS Silver ounces sold(3) 17,965,383 19,057,503 17,221,335 Gold ounces sold(3) 213,185 238,551 130,142 Realized price per silver ounce $ 30.92 $ 35.15 $ 20.99 Realized price per gold ounce $ 1,665 $ 1,558 $ 1,237   (1)   Palmarejo commenced commercial production on April 20, 2009. Mine statistics do not represent normal operating results(2)The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the metallurgical recovery to be approximately 61% for silver and 92% for gold. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates — Ore on Leach Pad.(3)Current production ounces and recoveries reflect final metal settlements of previously reported production ounces.(4)See "Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs."(5)The Martha mine ceased active mining operations in September of 2012.           Table 6:COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS - (Unaudited)   December 31,2012December 31,2011ASSETS(In thousands, except share data) CURRENT ASSETS Cash and cash equivalents $ 125,440 $ 175,012 Short term investments 999 20,254 Receivables 62,438 83,497 Ore on leach pad 22,991 27,252 Metal and other inventory 170,670 132,781 Deferred tax assets 2,458 1,869 Restricted assets 396 60 Prepaid expenses and other 20,790   24,218   406,182 464,943 NON-CURRENT ASSETS Property, plant and equipment, net 683,860 687,676 Mining properties, net 1,991,951 2,001,027 Ore on leach pad, non-current portion 21,356 6,679 Restricted assets 24,970 28,911 Marketable securities 27,065 19,844 Receivables, non-current portion 48,767 40,314 Debt issuance costs, net 3,713 1,889 Deferred tax assets 955 263 Other 12,582   12,895   TOTAL ASSETS $ 3,221,401   $ 3,264,441   LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 57,482 $ 78,590 Accrued liabilities and other 10,002 13,126 Accrued income taxes 27,108 47,803 Accrued payroll and related benefits 21,306 16,240 Accrued interest payable 478 559 Current portion of debt and capital leases 55,983 32,602 Current portion of royalty obligation 65,104 61,721 Current portion of reclamation and mine closure 668 1,387 Deferred tax liabilities 121   53   238,252 252,081 NON-CURRENT LIABILITIES Long-term debt and capital leases 3,460 115,861 Non-current portion of royalty obligation 141,879 169,788 Reclamation and mine closure 34,670 32,371 Deferred tax liabilities 577,488 527,573 Other long-term liabilities 27,372   30,046   784,869 875,639 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common stock, par value $0.01 per share; authorized 150,000,000 shares, issued and outstanding 90,342,338 at December 31, 2012 and 89,655,124 at December 31, 2011 903 897 Additional paid-in capital 2,601,254 2,585,632 Accumulated deficit (396,156 ) (444,833 ) Accumulated other comprehensive loss (7,721 ) (4,975 ) 2,198,280   2,136,721   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,221,401   $ 3,264,441         Table 7:COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS - (Unaudited)   Years Ended December 31,2012     2011     2010(In thousands, except share data) Sales of metal $ 895,492     $ 1,021,200     $ 515,457 Production costs applicable to sales (456,757 ) (419,956 ) (257,636 ) Depreciation, depletion and amortization (218,857 )     (224,500 )     (141,619 ) Gross profit 219,878 376,744 116,202 COSTS AND EXPENSES Administrative and general 32,977 31,379 24,176 Exploration 26,270 19,128 14,249 Loss on impairment 5,825 — — Pre-development, care, maintenance and other 1,261       19,441       2,877   Total cost and expenses 66,333       69,948       41,302   OPERATING INCOME 153,545 306,796 74,900 OTHER INCOME AND EXPENSE, NET Loss on debt extinguishments (1,036 ) (5,526 ) (20,300 ) Fair value adjustments, net (23,487 ) (52,050 ) (117,094 ) Interest income and other, net 14,436 (6,610 ) 771 Interest expense, net of capitalized interest (26,169 )     (34,774 )     (30,942 ) Total other income and expense, net (36,256 )     (98,960 )     (167,565 ) Income (loss) from continuing operations before income taxes 117,289 207,836 (92,665 ) Income tax (provision) benefit (68,612 )     (114,337 )     9,481   Income (loss) from continuing operations $ 48,677 $ 93,499 $ (83,184 ) Loss from discontinued operations — — (6,029 ) Loss on sale of net assets of discontinued operations —       —       (2,095 ) NET INCOME (LOSS) $ 48,677       $ 93,499       $ (91,308 ) BASIC AND DILUTED INCOME (LOSS) PER SHARE Basic income (loss) per share: Net income (loss) from continuing operations $ 0.54 $ 1.05 $ (0.95 ) Net income (loss) from discontinued operations —       —       (0.10 ) Net income (loss) 0.54       1.05       (1.05 ) Diluted income (loss) per share: Net income (loss) from continuing operations $ 0.54 $ 1.04 $ (0.95 ) Net income (loss) from discontinued operations $ —       $ —       $ (0.10 ) Net income (loss) $ 0.54       $ 1.04       $ (1.05 ) Weighted average number of shares of common stock Basic 89,437 89,383 87,185 Diluted 89,603 89,725 87,185     Table 8:COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS - (Unaudited)   Years ended December 31,2012     2011     2010(In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 48,677 $ 93,499 $ (91,308 ) Add (deduct) non-cash items Depreciation, depletion and amortization 218,857 224,500 143,813 Accretion of discount on debt and other assets, net 3,431 4,041 3,374 Accretion of royalty obligation 18,294 21,550 19,018 Deferred income taxes 16,163 51,792 (37,628 ) Loss on debt extinguishment 1,036 5,526 20,300 Fair value adjustments, net 18,421 46,450 115,458 Loss (gain) on foreign currency transactions (1,381 ) 380 3,867 Share-based compensation 8,010 8,122 7,217 Loss (gain) on sale of assets 1,101 (1,145 ) (25 ) Loss on impairment 5,825 — — Loss (gain) on asset retirement 279 (335 ) (167 ) Changes in operating assets and liabilities: Receivables and other current assets 9,756 (21,950 ) (6,228 ) Prepaid expenses and other 2,489 (8,839 ) 5,871 Inventories (48,305 ) (30,408 ) (47,887 ) Accounts payable and accrued liabilities (31,019 ) 22,990   29,888   CASH PROVIDED BY OPERATING ACTIVITIES 271,634   416,173   165,563   CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (115,641 ) (119,988 ) (155,994 ) Acquisition of Joaquin mineral interests (29,297 ) — — Purchase of short term investments and marketable securities (12,959 ) (49,501 ) (5,872 ) Proceeds from sales and maturities of short term investments, marketable securities 21,695 6,246 24,244 Other 3,087   2,282   5,927   CASH USED IN INVESTING ACTIVITIES (133,115 ) (160,961 ) (131,695 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of notes and bank borrowings — 27,500 176,166 Payments on long-term debt, capital leases, and associated costs (97,170 ) (85,519 ) (106,827 ) Payments on gold production royalty (74,734 ) (73,191 ) (43,125 ) Proceeds from gold lease facility — — 18,445 Payments on gold lease facility — (13,800 ) (37,977 ) Proceeds from sale-leaseback transactions — — 4,853 Reductions of (additions to) restricted assets associated with the Kensington Term Facility 4,645 (1,326 ) (2,353 ) Share repurchases (19,971 ) — — Other (861 ) 18   286   CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (188,091 ) (146,318 ) 9,468   (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (49,572 ) 108,894 43,336 Cash and cash equivalents at beginning of period 175,012   66,118   22,782   Cash and cash equivalents at end of period $ 125,440   $ 175,012   $ 66,118                         Table 9:Operating Cash Flow Reconciliation - (Unaudited)   (in thousands)4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011   Cash provided by operating activities $ 61,694 $ 79,735 $ 113,203 $ 17,002 $ 87,412 Changes in operating assets and liabilities: Receivables and other current assets (8,040 ) 5,648 (10,319 ) 2,956 (8,904 ) Prepaid expenses and other (3,054 ) 2,481 2,857 (4,774 ) 8,839 Inventories 12,919 13,762 (3,097 ) 24,722 17,574 Accounts payable and accrued liabilities     15,706       (24,341 )     (14,276 )     53,929       (7,452 ) Operating Cash Flow     $79,225       $77,285       $88,368       $93,835       $97,469             (in thousands)2012     2011   Cash provided by operating activities $ 271,634 $ 416,173 Changes in operating assets and liabilities: Receivables and other current assets (9,756 ) 21,950 Prepaid expenses and other (2,489 ) 8,839 Inventories 48,305 30,408 Accounts payable and accrued liabilities     31,019       (22,990 ) Operating Cash Flow     $338,713       $454,380                         Table 10:EBITDA Reconciliation - (Unaudited)   (in thousands)4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Net income (loss) $ 37,550 $ (15,821 ) $ 22,973 $ 3,975 $ 11,364 Income tax provision 11,839 17,475 23,862 15,436 52,390 Interest expense, net of capitalized interest 4,591 7,351 7,557 6,670 8,222 Interest and other income 14 (12,664 ) 3,221 (5,007 ) 4,697 Fair value adjustments, net (21,235 ) 37,648 (16,039 ) 23,113 (19,035 ) Loss on debt extinguishments 1,036 — — — 3,886 Depreciation and depletion     52,397       52,844       61,024       52,592       58,166   EBITDA     $86,192       $86,833       $102,598       $96,779       $119,690     (in thousands)     2012     2011 Net income (loss) $ 48,677     $ 93,499 Income tax provision 68,612 114,337 Interest expense, net of capitalized interest 26,169 34,774 Interest and other income (loss), net (14,436 ) 6,610 Fair value adjustments, net 23,487 52,050 Loss on debt extinguishments 1,036 5,526 Depreciation, depletion, and amortization     218,857       224,500 EBITDA     $372,402       $531,296                     Table 11:Adjusted Earnings Reconciliation - (Unaudited)   (in thousands)4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Net income (loss) $ 37,550 $ (15,821 ) $ 22,973 $ 3,975 $ 11,364 Share based compensation 1,476 3,364 1,033 2,137 2,861 Deferred income tax provision 3,738 (4,942 ) 9,690 7,677 38,614 Interest expense, accretion of royalty obligation 3,946 4,276 5,492 4,580 5,523 Fair value adjustments, net (21,235 ) 37,648 (16,039 ) 23,113 (19,035 ) Loss on impairment (281 ) 1,293 4,813 — — Gain on debt extinguishments     1,036       —       —       —       3,886   Adjusted Earnings     $26,230       $25,818       $27,962       $41,482       $43,213             (in thousands)2012     2011 Net income (loss) $ 48,677 $ 93,499 Share based compensation 8,010 8,122 Deferred income tax provision 16,163 51,792 Interest expense, accretion of royalty obligation 18,294 21,550 Fair value adjustments, net 23,487 52,050 Loss on impairment 5,825 — Loss on debt extinguishments     1,036       5,526 Adjusted Earnings     $121,492       $232,539                           Table 12:Results of Operations by Mine - Palmarejo - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $442.1 $79.4 $102.6 $136.4 $123.7 $134.3 Production costs $197.5 $40.4 $48.7 $62.5 $45.9 $47.0 EBITDA $237.0 $36.6 $51.6 $72.3 $76.5 $83.7 Operating income $90.4 $4.5 $17.7 $29.5 $38.8 $38.7 Operating cash flow $233.1 $33.2 $54.9 $63.6 $81.4 $77.4 Capital expenditures $38.5 $8.8 $11.3 $11.2 $7.2 $12.1 Gross profit $98.0 $6.8 $20.0 $31.1 $40.1 $44.7 Gross margin 22.2% 8.7% 19.5% 22.8% 32.4% 33.3%   2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011Underground Operations: Tons mined 604,522 139,925 143,747 162,820 158,030 191,966 Average silver grade (oz/t) 6.99 4.70 6.13 8.91 7.82 8.04 Average gold grade (oz/t) 0.11 0.08 0.09 0.14 0.11 0.11 Surface Operations: Tons mined 1,559,245 465,498 424,380 321,758 347,609 321,881 Average silver grade (oz/t) 3.58 2.62 2.79 4.14 5.32 5.88 Average gold grade (oz/t) 0.03 0.02 0.03 0.04 0.04 0.05 Processing: Total tons milled 2,114,366 563,123 532,775 489,924 528,543 505,619 Average recovery rate – Ag 83.0% 84.2% 90.0% 84.2% 76.8% 77.9% Average recovery rate – Au 94.4% 91.4% 102.5% 92.0% 93.3% 92.4% Silver production - oz (000's) 8,236 1,555 1,833 2,365 2,483 2,690 Gold production - oz 106,038 19,998 23,702 31,258 31,081 34,108 Cash operating costs/Ag Oz $1.33 $7.55 $3.75 $(0.85) $(2.27) $(2.13)               Table 13:Co-Product Cash Cost Per Ounce for Palmarejo - (Unaudited)   2012     2011     2010 Cash operating cost per ounce: Silver $ 13.45 $ 12.82 $ 19.90 Gold $ 742 $ 581 $ 328 Total cash cost per ounce: Silver $ 13.45 $ 12.82 $ 19.90 Gold $ 742 $ 581 $ 328                           Table 14:Reconciliation of EBITDA for Palmarejo - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $ 442.1 $ 79.4 $ 102.6 $ 136.4 $ 123.7 $ 134.3 Production costs applicable to sales $ (197.5 ) $ (40.4 ) $ (48.7 ) $ (62.5 ) (45.9 ) (47.0 ) Administrative and general $ — $ — $ — $ — — — Exploration $ (7.6 ) $ (2.4 ) $ (2.3 ) $ (1.6 ) (1.3 ) (2.8 ) Pre-development care and maintenance and other     $ —       $ —       $ —       $ —       —       (0.8 ) EBITDA     $237.0       $36.6       $51.6       $72.3       $76.5       $83.7                             Table 15:Operating Cash Flow for Palmarejo - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Cash provided by operating activities $ 237.0 $ 22.9 $ 58.2 $ 90.5 $ 65.3 $ 70.9 Changes in operating assets and liabilities:   Receivables and other current assets $ (12.5 ) $ (1.3 ) $ (4.1 ) $ (12.5 ) $ 5.4 $ 5.7 Prepaid expenses and other $ (3.2 ) $ (1.0 ) $ (0.8 ) $ 0.5 $ (1.9 ) $ (3.2 ) Inventories $ (0.8 ) $ 3.6 $ 2.5 $ (11.5 ) $ 4.6 $ 9.9 Accounts payable and accrued liabilities     $ 12.6       $ 9.0       $ (0.9 )     $ (3.4 )     $ 8.0       $ (5.9 ) Operating Cash Flow     $233.1       $33.2       $54.9       $63.6       $81.4       $77.4                             Table 16:Results of Operations by Mine - San Bartolomé - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $178.0 $37.0 $46.2 $53.4 $41.4 $62.8 Production costs $71.4 $15.1 $19.9 $22.8 $13.6 $21.4 EBITDA $106.3 $21.9 $26.2 $30.5 $27.7 $41.2 Operating income $89.6 $17.5 $22.0 $26.6 $23.5 $34.9 Operating cash flow $72.4 $17.4 $11.2 $23.0 $20.8 $28.7 Capital expenditures $25.7 $3.3 $4.4 $7.8 $10.2 $6.5 Gross profit $89.7 $17.6 $22.1 $26.5 $23.5 $35.3 Gross margin 50.5% 47.7% 47.8% 49.6% 56.8% 56.2%   2012     4Q 2012     3Q 2012     1Q 2012     1Q 2012     4Q 2011 Tons milled 1,477,271 363,813 344,349 391,005 378,104 371,983 Average silver grade (oz/t) 4.5 4.2 4.9 4.3 4.6 5.4 Average recovery rate 89.5% 88% 90.3% 88.3% 91.2% 90.5% Silver production (000's) 5,930 1,343 1,526 1,470 1,591 1,997 Cash operating costs/Ag Oz $11.76 $13.97 $12.13 $11.05 $10.21 $9.18                           Table 17:Reconciliation of EBITDA for San Bartolomé - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $ 178.0 $ 37.1 $ 46.2 $ 53.4 $ 41.4 $ 62.8 Production costs applicable to sales (71.4 ) (15.1 ) (19.9 ) (22.8 ) (13.6 ) (21.4 ) Administrative and general — — — — — — Exploration (0.3 ) (0.1 ) (0.1 ) (0.1 ) (0.1 ) — Pre-development care and maintenance and other     —       —       —       —       —       (0.2 ) EBITDA     $106.3       $21.9       $26.2       $30.5       $27.7       $41.2                             Table 18:Operating Cash Flow for San Bartolomé - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Cash provided by (used in) operating activities $ 33.0 $ 9.5 $ 19.8 $ 31.0 $ (27.4 ) $ 22.3 Changes in operating assets and liabilities: Receivables and other current assets $ 5.6 $ (3.0 ) $ 7.1 $ (0.6 ) $ 2.2 $ 0.2 Prepaid expenses and other $ 0.9 $ (1.4 ) $ 0.8 $ 4.4 $ (2.8 ) $ 4.6 Inventories $ 16.0 $ 9.6 $ 5.0 $ (3.4 ) $ 4.7 $ 2.9 Accounts payable and accrued liabilities     $ 16.9       $ 2.7       $ (21.5 )     $ (8.4 )     $ 44.1       $ (1.3 ) Operating Cash Flow     $72.4       $17.4       $11.2       $23.0       $20.8       $28.7                             Table 19:Results of Operations by Mine - Kensington - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $111.0 $43.0 $36.5 $21.1 $10.4 $32.9 Production costs $87.1 $27.0 $26.9 $16.1 $17.1 $31.7 EBITDA $20.6 $14.7 $8.1 $4.7 $(6.9) $0.5 Operating income/(loss) $(21.1) $0.9 $(3.5) $(5.0) $(13.6) $(6.6) Operating cash flow $14.6 $14.5 $7.3 $0.6 $(7.8) $(4.1) Capital expenditures $37.0 $7.8 $9.0 $9.3 $10.9 $12.0 Gross profit/(loss) $(17.7) $2.2 $(1.9) $(4.7) $(13.3) $(5.7) Gross margin (15.9)% 5.1% (5.2)% (22.3)% (127.9)% (17.3)%   2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Tons mined 395,843 140,626 113,770 84,632 56,815 68,831 Tons milled 394,780 129,622 123,428 97,794 43,936 71,700 Average gold grade (oz/t) 0.20 0.23 0.21 0.23 0.18 0.19 Average recovery rate 95.6% 96.9% 95.9% 94.2% 93.4% 96.5% Gold production 82,125 28,718 24,391 21,572 7,444 13,299 Cash operating costs/Ag Oz $1,358 $1,065 $1,298 $1,348 $2,709 $1,807                           Table 20:Reconciliation of EBITDA for Kensington - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $ 111.0 $ 43.0 $ 36.5 $ 21.1 $ 10.4 $ 32.9 Production costs applicable to sales (87.1 ) (27.0 ) (26.9 ) (16.1 ) (17.1 ) (31.7 ) Administrative and general — — — — — — Exploration (3.2 ) (1.3 ) (1.5 ) (0.3 ) (0.2 ) (0.5 ) Pre-development care and maintenance and other     (0.1 )     —       —       —       —       (0.2 ) EBITDA     $20.6       $14.7       $8.1       $4.7       $(6.9)     $0.5                             Table 21:Operating Cash Flow for Kensington - (Unaudited)   2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Cash provided by operating activities $ 10.1 $ 16.5 $ 5.0 $ (12.5 ) $ 1.1 $ 9.3 Changes in operating assets and liabilities: Receivables and other current assets $ (6.0 ) $ (2.6 ) $ 2.3 $ 4.6 $ (10.3 ) $ (5.1 ) Prepaid expenses and other $ (1.3 ) $ (0.4 ) $ 0.5 $ (0.5 ) $ (1.0 ) $ 0.5 Inventories $ 14.6 $ (0.3 ) $ 1.8 $ 9.9 $ 3.3 $ (10.1 ) Accounts payable and accrued liabilities     $ (2.8 )     $ 1.3       $ (2.3 )     $ (0.9 )     $ (0.9 )     $ 1.3   Operating Cash Flow     $14.6       $14.5       $7.3       $0.6       $(7.8)     $(4.1)                           Table 22:Results of Operations by Mine - Rochester - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $132.4 $43.2 $36.2 $34.2 $18.8 $11.1 Production costs $74.3 $22.9 $21.0 $20.8 $9.6 $4.2 EBITDA $53.1 $21.4 $12.9 $11.6 $7.2 $3.2 Operating income $45.1 $19.2 $10.9 $9.5 $5.5 $4.6 Operating cash flow $53.5 $21.5 $13.0 $11.8 $7.2 $3.4 Capital expenditures $11.8 $1.5 $4.8 $2.9 $2.6 $7.7 Gross profit $50.1 $18.0 $13.2 $11.3 $7.6 $5.9 Gross margin 37.8% 41.7% 36.5% 33.0% 40.4% 53.2%   2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Tons mined 11,710,795 3,031,428 3,170,129 2,585,914 2,923,324 1,170,397 Average silver grade (oz/t) 0.55 0.51 0.52 0.63 0.55 0.54 Average gold grade (oz/t) 0.005 0.005 0.004 0.005 0.004 0.004 Silver production (000's) 2,801 828 819 713 441 373 Gold production 38,066 12,055 10,599 10,120 5,292 1,993 Cash operating costs/Ag Oz $9.62 $2.17 $9.58 $9.83 $23.35 $37.99               Table 23:Co-Product Cash Cost Per Ounce for Rochester - (Unaudited)   2012     2011     2010 Cash operating cost per ounce: Silver $ 19.20 $ 25.34 $ 4.20 Gold $ 962 $ 1,050 $ 952 Total cash cost per ounce: Silver $ 20.40 $ 26.91 $ 4.61 Gold $ 1,023 $ 1,115 $ 1,045                           Table 24:Reconciliation of EBITDA for Rochester - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $ 132.4 $ 43.2 $ 36.2 $ 34.2 $ 18.8 $ 11.1 Production costs applicable to sales (74.3 ) (22.9 ) (21.0 ) (20.8 ) (9.6 ) (4.2 ) Administrative and general — — — — — — Exploration (3.6 ) (0.6 ) (1.2 ) (1.1 ) (0.7 ) (1.5 ) Pre-development care and maintenance and other     (1.4 )     1.7       (1.1 )     (0.7 )     (1.3 )     (2.2 ) EBITDA     $53.1       $21.4       $12.9       $11.6       $7.2       $3.2                             Table 25:Operating Cash Flow for Rochester - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Cash provided by (used in) operating activities $ 28.4 $ 18.2 $ 7.3 $ 10.1 $ (7.1 ) $ (11.4 ) Changes in operating assets and liabilities: Receivables and other current assets $ 0.3 $ (0.6 ) $ 0.6 $ (0.1 ) $ 0.3 $ (0.2 ) Prepaid expenses and other $ 0.9 $ 0.3 $ 0.2 $ (1.0 ) $ 1.4 $ 0.7 Inventories $ 22.5 $ 0.9 $ 6.5 $ 3.9 $ 11.2 $ 14.2 Accounts payable and accrued liabilities     $ 1.4       $ 2.7       $ (1.6 )     $ (1.1 )     $ 1.4       $ 0.1   Operating Cash Flow     $53.5       $21.5       $13.0       $11.8       $7.2       $3.4                             Table 26:Results of Operations by Mine - Martha(1) - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $13.2 $0.5 $4.9 $4.1 $3.6 $2.8 Production costs $17.7 $0.4 $6.5 $7.1 $3.7 $3.9 EBITDA $(21.1) $(2.7) $(4.2) $(10.6) $(3.7) $(3.3) Operating loss $(21.8) $(2.0) $(4.2) $(11.3) $(4.3) $(3.0) Operating cash flow $(16.8) $(2.8) $(3.4) $(5.5) $(5.1) $(5.0) Capital expenditures $1.2 $— $— $0.5 $0.7 $1.4 Gross profit (loss) $(5.2) $0.7 $(1.5) $(3.7) $(0.7) $(1.7) Gross margin (39.4)% 140.0% (32.7)% (90.2)% (19.4)% (60.7)%   2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Total tons milled 100,548 — 27,281 39,199 34,068 37,141 Average silver grade (oz/t) 4.00 — 4.17 3.52 4.43 4.65 Average gold grade (oz/t) — — — — — 0.01 Average recovery rate – Ag 80.3% —% 81.5% 78.2% 81.4% 75.2% Average recovery rate – Au 72.2% —% 82.6% 72.4% 64.6% 74.2% Silver production (000's) 323 — 93 108 123 130 Cash operating costs/Ag Oz $49.77 $— $48.12 $55.07 $46.48 $33.75         1.     The Martha mine ceased active operations in September of 2012.                           Table 27:Reconciliation of EBITDA for Martha - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $ 13.2 $ 0.5 $ 4.9 $ 4.1 $ 3.6 $ 2.8 Production costs applicable to sales (17.7 ) (0.4 ) (6.5 ) (7.1 ) (3.7 ) (3.9 ) Administrative and general — — — — — — Exploration (8.7 ) (1.3 ) (1.2 ) (2.8 ) (3.4 ) (2.1 ) Pre-development care and maintenance and other     (7.9 )     (1.5 )     (1.4 )     (4.8 )     (0.2 )     (0.1 ) EBITDA     $(21.1)     $(2.7)     $(4.2)     $(10.6)     $(3.7)     $(3.3)                           Table 28:Operating Cash Flow for Martha - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Cash provided by (used in) operating activities $ (16.6 ) $ (2.2 ) $ (3.9 ) $ (3.3 ) $ (7.1 ) $ (3.2 ) Changes in operating assets and liabilities: Receivables and other current assets 1.3 (0.8 ) (0.9 ) (0.6 ) 3.5 (0.9 ) Prepaid expenses and other (0.1 ) — (0.1 ) 0.1 (0.1 ) (0.3 ) Inventories (4.1 ) (0.5 ) (1.7 ) (2.3 ) 0.4 0.4 Accounts payable and accrued liabilities     2.7       0.7       3.2       0.6       (1.8 )     (1.0 ) Operating Cash Flow     $(16.8)     $(2.8)     $(3.4)     $(5.5)     $(5.1)     $(5.0)                           Table 29:Results of Operations by Mine - Endeavor - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $18.8 $2.8 $4.1 $5.2 $6.7 $2.8 Production costs $8.8 $1.6 $2.0 $2.6 $2.7 $1.0 EBITDA $10.0 $1.3 $2.1 $2.6 $4.0 $1.8 Operating income $5.4 $0.8 $1.3 $1.1 $2.3 $1.1 Operating cash flow $10.0 $1.3 $1.7 $2.8 $4.2 $2.1 Capital expenditures $— $— $— $— $— $— Gross profit $5.4 $0.8 $1.3 $1.1 $2.3 $1.1 Gross margin 28.7% 28.6% 31.7% 21.2% 34.3% 39.3%   2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Silver Production (000's) 734 105 140 240 248 111 Cash operating costs/Ag Oz $17.27 $19.92 $15.97 $17.50 $16.64 $14.74                           Table 30:Reconciliation of EBITDA for Endeavor - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Sales of metal $ 18.8 $ 2.8 $ 4.1 $ 5.2 $ 6.7 $ 2.8 Production costs applicable to sales (8.8 ) (1.5 ) (2.0 ) (2.6 ) (2.7 ) (1.0 ) Administrative and general — — — — — — Exploration — — — — — — Pre-development care and maintenance and other     —       —       —       —       —       —   EBITDA     $10.0       $1.3       $2.1       $2.6       $4.0       $1.8                             Table 31:Operating Cash Flow for Endeavor - (Unaudited)   in millions of US$2012     4Q 2012     3Q 2012     2Q 2012     1Q 2012     4Q 2011 Cash provided by operating activities $ 10.0 $ 1.6 $ 1.5 $ 3.6 $ 3.2 $ 2.1 Changes in operating assets and liabilities: Receivables and other current assets 0.2 (0.3 ) 0.5 (1.7 ) 1.7 (1.2 ) Prepaid expenses and other — — — — — — Inventories 0.2 (0.3 ) (0.3 ) 0.2 0.6 0.1 Accounts payable and accrued liabilities     (0.4 )     0.3             0.7       (1.3 )     1.1   Operating Cash Flow     $10.0       $1.3       $1.7       $2.8       $4.2       $2.1                                 Table 32:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsThree months ended December 31, 2012 - (Unaudited)   (In thousands except ounces and per ounce costs)PalmarejoSanBartoloméKensingtonRochesterMartha(1)EndeavorTotal Total Cash Operating Cost (Non-U.S. GAAP) $ 11,732 $ 18,765 $ 30,588 $ 1,795 $ (16 ) $ 2,104 $ 64,968 Royalties — 1,712 — 1,528 — — 3,240 Production taxes —   —   —   940   —   —   940   Total Cash Costs (Non-U.S. GAAP) $ 11,732   $ 20,477   $ 30,588   $ 4,263   $ (16 ) $ 2,104   $ 69,148   Add/Subtract: Third party smelting costs — — (3,865 ) — 16 (805 ) (4,654 ) By-product credit 34,314 — — 20,682 — — 54,996 Other adjustments 317 (387 ) — (1,755 ) — — (1,825 ) Change in inventory (5,955 ) (4,980 ) 288 (265 ) 407 253 (10,252 ) Depreciation, depletion and amortization 32,058   4,258   13,809   2,302   (702 ) 457   52,182   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 72,466   $ 19,368   $ 40,820   $ 25,227   $ (295 ) $ 2,009   $ 159,595   Production of silver (ounces) 1,554,606 1,343,035 — 828,013 — 105,615 3,831,269 Cash operating cost per silver ounce $ 7.55 $ 13.97 $ — $ 2.17 $ — $ 19.92 $ 8.97 Cash costs per silver ounce $ 7.55 $ 15.25 $ — $ 5.15 $ — $ 19.92 $ 10.06 Production of gold (ounces) — — 28,718 — — — 28,718 Cash operating cost per gold ounce $ — $ — $ 1,065 $ — $ — $ — $ 1,065 Cash cost per gold ounce $ — $ — $ 1,065 $ — $ — $ — $ 1,065                               Table 33:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsTwelve months ended December 31, 2012 - (Unaudited)   (In thousands except ounces and per ounce costs)PalmarejoSanBartoloméKensingtonRochesterMartha(1)EndeavorTotal Total Cash Operating Cost (Non-U.S. GAAP) $ 10,958 $ 69,771 $ 111,499 $ 26,959 $ 16,094 $ 12,675 $ 247,956 Royalties — 7,084 — 3,487 306 — 10,877 Production taxes —   —   —   2,195   —   —   2,195   Total Cash Costs (Non-U.S. GAAP) $ 10,958   $ 76,855   $ 111,499   $ 32,641   $ 16,400   $ 12,675   $ 261,028   Add/Subtract: Third party smelting costs — — (10,910 ) — (3,943 ) (3,648 ) (18,501 ) By-product credit 176,237 — — 63,440 422 — 240,099 Other adjustments 1,108 256 17 (1,355 ) 882 — 908 Change in inventory 9,175 (5,683 ) (13,517 ) (20,470 ) 3,922 (204 ) (26,777 ) Depreciation, depletion and amortization 146,557   16,707   41,645   8,065   515   4,591   218,080   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 344,035   $ 88,135   $ 128,734   $ 82,321   $ 18,198   $ 13,414   $ 674,837   Production of silver (ounces) 8,236,013 5,930,394 — 2,801,405 323,386 734,008 18,025,206 Cash operating cost per silver ounce $ 1.33 $ 11.76 $ — $ 9.62 $ 49.77 $ 17.27 $ 7.57 Cash costs per silver ounce $ 1.33 $ 12.95 $ — $ 11.65 $ 50.71 $ 17.27 $ 8.30 Production of gold (ounces) — — 82,125 — — — 82,125 Cash operating cost per gold ounce $ — $ — $ 1,358 $ — $ — $ — $ 1,358 Cash cost per gold ounce $ — $ — $ 1,358 $ — $ — $ — $ 1,358                               Table 34:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsThree months ended December 31, 2011 - (Unaudited)   (In thousands except ounces and per ounce costs)PalmarejoSanBartoloméKensingtonRochesterMartha(1)EndeavorTotal Total Cash Operating Cost (Non-U.S. GAAP) $ (5,730 ) $ 18,332 $ 24,035 $ 14,191 $ 4,386 $ 1,647 $ 56,861 Royalties — 3,279 — — 98 — 3,377 Production taxes —   —   —   124   —   —   124   Total Cash Costs (Non-U.S. GAAP) $ (5,730 ) $ 21,611   $ 24,035   $ 14,315   $ 4,484   $ 1,647   $ 60,362   Add/Subtract: Third party smelting costs — — (1,881 ) — (516 ) (483 ) (2,880 ) By-product credit 57,501 — — 3,344 242 — 61,087 Other adjustments 233 608 — 266 97 — 1,204 Change in inventory (5,054 ) (869 ) 9,407 (13,722 ) (296 ) (112 ) (10,646 ) Depreciation, depletion and amortization 42,646   6,021   7,016   1,152   475   750   58,060   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 89,596   $ 27,371   $ 38,577   $ 5,355   $ 4,486   $ 1,802   $ 167,187   Production of silver (ounces) 2,690,368 1,997,416 — 373,589 129,972 111,723 5,303,068 Cash operating cost per silver ounce $ (2.13 ) $ 9.18 $ — $ 37.99 $ 33.75 $ 14.74 $ 6.19 Cash costs per silver ounce $ (2.13 ) $ 10.82 $ — $ 38.32 $ 34.50 $ 14.74 $ 6.85 Production of gold (ounces) — — 13,299 — — — 13,299 Cash operating cost per gold ounce $ — $ — $ 1,807 $ — $ — $ — $ 1,807 Cash cost per gold ounce $ — $ — $ 1,807 $ — $ — $ — $ 1,807                             Table 35:Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production CostsTwelve months ended December 31, 2011 - (Unaudited)   (In thousands except ounces and per ounce costs) Palmarejo SanBartolomé Kensington Rochester Martha Endeavor Total Total Cash Operating Cost (Non-U.S. GAAP) $ (8,743 ) $ 68,277 $ 96,234 $ 31,978 $ 17,367 $ 11,573 $ 216,686 Royalties — 11,561 — 2,177 685 — 14,423 Production taxes —   —   —   409   —   —   409   Total Cash Costs (Non-U.S. GAAP) $ (8,743 ) $ 79,838   $ 96,234   $ 34,564   $ 18,052   $ 11,573   $ 231,518   Add/Subtract: Third party smelting costs — — (11,003 ) — (2,882 ) (2,872 ) (16,757 ) By-product credit 197,342 — — 9,898 949 — 208,189 Other adjustments 1,441 906 19 522 559 — 3,447 Change in inventory (3,839 ) (1,065 ) 16,422 (16,727 ) (1,165 ) (67 ) (6,441 ) Depreciation, depletion and amortization 159,231   22,408   35,839   2,807   554   3,148   223,987   Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 345,432   $ 102,087   $ 137,511   $ 31,064   $ 16,067   $ 11,782   $ 643,943   Production of silver (ounces) 9,041,488 7,501,367 — 1,392,433 529,602 613,361 19,078,251 Cash operating cost per silver ounce $ (0.97 ) $ 9.10 $ — $ 22.97 $ 32.79 $ 18.87 $ 6.31 Cash costs per silver ounce $ (0.97 ) $ 10.64 $ — $ 24.82 $ 34.08 $ 18.87 $ 7.09 Production of gold (ounces) — — 82,125 — — — 82,125 Cash operating cost per gold ounce $ — $ — $ 1,088 $ — $ — $ — $ 1,088 Cash cost per gold ounce $ — $ — $ 1,088 $ — $ — $ — $ 1,088           Table 36:Co-Product Cash Cost Per Ounce for 2012 - (Unaudited)   PalmarejoRochester Total cash operating costs $ 187,195 $ 90,400 Total cash costs $ 187,195 $ 96,081   Revenue Silver 59% 59% Gold 41% 41%   Ounces produced Silver 8,236,013 2,801,405 Gold 103,068 38,066   Total cash operating costs per ounce Silver $ 13.45 $ 19.20 Gold $ 742 $ 962   Total cash costs per ounce Silver $ 13.45 $ 20.40 Gold $ 742 $ 1,023           Table 37:Co-Product Cash Cost Per Ounce for 2011 - (Unaudited)   PalmarejoRochester Total cash operating costs $ 188,599 $ 41,876 Total cash costs $ 188,599 $ 44,463   Revenue Silver 61% 84% Gold 39% 16%   Ounces produced Silver 9,041,488 1,392,433 Gold 125,071 6,276   Total cash operating costs per ounce Silver $ 12.82 $ 25.34 Gold $ 581 $ 1,050   Total cash costs per ounce Silver $ 12.82 $ 26.91 Gold $ 581 $ 1,115                   Table 38:2012 Proven and Probable Reserves - (Unaudited)   SHORT TONSGRADE (Oz/Ton)OUNCESYEAR END 2012     LOCATION           SILVER     GOLDSILVER     GOLDPROVEN RESERVES         Rochester Nevada, USA 56,304,000 0.54   0.004 30,501,000 230,000 Martha Argentina — — — — — San Bartolomé Bolivia 1,187,000 2.92 — 3,460,000 — Kensington Alaska, USA 647,000 — 0.277 — 179,000 Endeavor Australia 2,258,000 4.32 — 9,757,000 — Palmarejo Mexico 5,747,000 4.67 0.061 26,858,000 348,000 Joaquin     Argentina     —         —         —       —     — Total           66,143,000                     70,577,000     757,000PROBABLE RESERVES Rochester Nevada, USA 23,619,000 0.61 0.003 14,396,000 78,000 Mina Martha Argentina — — — — — San Bartolomé Bolivia 41,699,000 2.53 — 105,628,000 — Kensington Alaska, USA 4,020,000 — 0.208 — 837,000 Endeavor Australia 2,508,000 1.43 — 3,588,000 — Palmarejo Mexico 7,105,000 3.69 0.045 26,251,000 317,000 Joaquin     Argentina     —         —         —       —     — Total           78,951,0000                   149,863,000     1,231,000PROVEN AND PROBABLE RESERVES Rochester Nevada, USA 79,923,000 0.56 0.004 44,896,000 308,000 Martha Argentina — — — — — San Bartolomé Bolivia 42,886,000 2.54 — 109,088,000 — Kensington Alaska, USA 4,667,000 — 0.218 — 1,016,000 Endeavor Australia 4,766,000 2.80 — 13,345,000 — Palmarejo Mexico 12,852,000 4.13 0.052 53,110,000 665,000 Joaquin     Argentina     —         —         —       —     — Total Proven and Probable           145,094,000                     220,439,000     1,988,000                   Table 39:2012 Measured and Indicated Resources (Excluding Proven and Probable Reserves) - (Unaudited)   SHORT TONSGRADE (Oz/Ton)   OUNCESYEAR END 2012     LOCATION           SILVER     GOLDSILVER     GOLDMEASURED RESOURCES         Rochester Nevada, USA 135,558,000   0.47   0.004 63,921,000 498,000 Martha Argentina — — — — — San Bartolomé Bolivia — — — — — Kensington Alaska, USA 382,000 — 0.239 — 91,000 Endeavor Australia 10,639,000 1.98 — 21,088,000 — Palmarejo Mexico 3,186,000 7.13 0.099 22,720,000 315,000 Joaquin     Argentina     5,942,000         4.58         0.003       27,191,000     19,000 Total           155,707,000                     134,920,000     924,000INDICATED RESOURCES Rochester Nevada, USA 128,724,000 0.44 0.003 56,795,000 367,000 Mina Martha Argentina 57,000 13.57 0.017 775,000 1,000 San Bartolomé Bolivia 20,040,000 2.27 — 45,463,000 — Kensington Alaska, USA 2,224,000 — 0.196 — 435,000 Endeavor Australia 302,000 10.23 — 3,090,000 — Palmarejo Mexico 20,526,000 1.12 0.032 23,021,000 649,000 Joaquin Argentina 11,398,000 3.33 0.004 37,980,000 42,000 Lejano     Argentina     1,233,000         2.42         0.008       2,983,000     10,000 Total           184,504,000                     170,108,000     1,504,000MEASURED AND INDICATED RESOURCES Rochester Nevada, USA 264,283,000 0.46 0.003 120,717,000 865,000 Martha Argentina 57,000 13.57 0.017 775,000 1,000 San Bartolomé Bolivia 20,040,000 2.27 — 45,463,000 — Kensington Alaska, USA 2,606,000 — 0.202 — 526,000 Endeavor Australia 10,941,000 2.21 — 24,179,000 — Palmarejo Mexico 23,712,000 1.93 0.041 45,741,000 964,000 Joaquin Argentina 17,340,000 3.76 0.004 65,171,000 61,000 Lejano     Argentina     1,233,000         2.42         0.008       2,983,000     10,000 Total Measured and Indicated           340,210,000                     305,028,000     2,427,000                   Table 40:2012 Inferred Resources - (Unaudited)   SHORT TONSGRADE (Oz/Ton)OUNCESYEAR END 2012     LOCATION           SILVER     GOLDSILVER     GOLDINFERRED RESOURCES         Rochester Nevada, USA 45,643,000   0.60   0.003 27,201,000 123,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 2,826,000 1.17 — 3,319,000 — Kensington Alaska, USA 704,000 — 0.244 — 172,000 Endeavor Australia 3,527,000 1.09 — 3,836,000 — Palmarejo Mexico 11,903,000 1.86 0.038 22,104,000 457,000 Joaquin Argentina 1,060,000 2.94 0.003 3,113,000 4,000 Lejano     Argentina     3,307,000         1.73         0.006       5,713,000     19,000 Total Inferred           69,174,000                     66,254,000     775,000   Notes to the above Mineral Reserves and Resources: Effective December 31, 2012. Metal prices used for mineral reserves were $27.50 per ounce of silver and $1,450 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34.00 per ounce of silver. Metal prices used for mineral resources were $33.00 per ounce of silver and $1,700 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34.00 per ounce of silver. Palmarejo mineral resources are the addition of Palmarejo, Guadalupe and La Patria (Measured, Indicated and Inferred). Mineral Resources are in addition to mineral reserves and have not demonstrated economic viability. Current mineral resources were inclusive of disputed and undisputed claims at Rochester. While the Company believes it holds a superior position in the ongoing claims dispute, the Company believes an adverse legal outcome would cause it to modify mineral resources. Rounding of tons and ounces, as required by reporting guidelines may result in apparent differences between tons, grade and contained metal content. For details on the estimation of mineral resources and reserves for each property, please refer to the relevant Technical Report on file at www.sedar.com.               Table 41:2011 Proven and Probable Reserves - (Unaudited)   SHORT TONSGRADE (Oz/Ton)   OUNCESYEAR END 2011     LOCATION         SILVER     GOLDSILVER     GOLDPROVEN RESERVES         Rochester Nevada, USA 31,532,000   0.59   0.006 18,681,000 179,000 Martha Argentina — — — — — San Bartolomé Bolivia 959,000 3.01 — 2,888,000 — Kensington Alaska, USA 1,164,000 — 0.280 — 326,000 Endeavor Australia 2,635,000 1.39 — 3,674,000 — Palmarejo Mexico 4,916,000 5.31 0.067 26,091,000 330,000 Joaquin (51%)     Argentina     —       —         —       —     — Total           41,206,000                   51,334,000     835,000PROBABLE RESERVES Rochester Nevada, USA 15,747,000 0.69 0.004 10,892,000 68,000 Martha Argentina 53,000 12.79 0.011 671,000 1,000 San Bartolomé Bolivia 43,556,000 2.64 — 115,192,000 — Kensington Alaska, USA 4,842,000 — 0.209 — 1,104,000 Endeavor Australia 2,998,000 2.50 — 7,501,000 — Palmarejo Mexico 7,581,000 4.05 0.047 30,727,000 358,000 Joaquin (51%)     Argentina     —       —         —       —     — Total           74,777,0000                   164,983,000     1,441,000PROVEN AND PROBABLE RESERVES Rochester Nevada, USA 47,280,000 0.63 0.005 29,573,000 247,000 Martha Argentina 53,000 12.79 0.011 671,000 1,000 San Bartolomé Bolivia 44,515,000 2.65 — 118,080,000 — Kensington Alaska, USA 6,006,000 — 0.223 — 1,340,000 Endeavor Australia 5,633,000 1.98 — 11,175,000 — Palmarejo Mexico 12,497,000 4.55 0.055 56,818,000 688,000 Joaquin (51%)     Argentina     —       —         —       —     — Total Proven and Probable           115,983,000                   216,317,000     2,276,000                   Table 42:2011 Measured and Indicated Resources (Excluding Proven and Probable Reserves) - (Unaudited)   SHORT TONSGRADE (Oz/Ton)OUNCESYEAR END 2011     LOCATION           SILVER     GOLDSILVER     GOLDMEASURED RESOURCES         Rochester Nevada, USA 131,085,000   0.46   0.004 60,586,000 501,000 Martha Argentina — — — — — San Bartolomé Bolivia — — — — — Kensington Alaska, USA 495,000 — 0.234 — 116,000 Endeavor Australia 10,924,000 2.67 — 29,149,000 — Palmarejo Mexico 1,793,000 4.24 0.052 7,594,000 93,000 Joaquin (51%)     Argentina     —         —         —       —     — Total           144,297,000                     97,329,000     710,000INDICATED RESOURCES Rochester Nevada, USA 120,387,000 0.43 0.003 51,762,000 366,000 Martha Argentina 35,000 12.15 0.011 427,000 — San Bartolomé Bolivia 21,264,000 2.59 — 54,968,000 — Kensington Alaska, USA 2,544,000 — 0.185 — 471,000 Endeavor Australia 124,000 0.01 — 2,000 — Palmarejo Mexico 3,269,000 2.88 0.034 9,399,000 111,000 Joaquin (51%) Argentina 4,050,000 2.48 0.005 10,043,000 18,000 Lejano     Argentina     —         —         —       —     — Total           151,672,000                     126,601,000     968,000MEASURED AND INDICATED RESOURCES Rochester Nevada, USA 251,472,000 0.45 0.003 112,349,000 867,000 Martha Argentina 35,000 12.15 0.011 427,000 — San Bartolomé Bolivia 21,264,000 2.59 — 54,968,000 — Kensington Alaska, USA 3,039,000 — 0.193 — 587,000 Endeavor Australia 11,047,000 2.64 — 29,151,000 — Palmarejo Mexico 5,062,000 3.36 0.040 16,993,000 205,000 Joaquin (51%) Argentina 4,050,000 2.48 0.005 10,043,000 18,000 Lejano     Argentina     —         —         —       —     — Total Measured and Indicated           295,969,000                     223,930,000     1,677,000                   Table 43:2011 Inferred Resources - (Unaudited)   SHORT TONSGRADE (Oz/Ton)OUNCESYEAR END 2011     LOCATION           SILVER     GOLDSILVER     GOLDINFERRED RESOURCES         Rochester Nevada, USA 40,543,000   0.58   0.003 23,619,000 122,000 Martha Argentina 259,000 4.32 0.005 1,121,000 1,000 San Bartolomé Bolivia 3,385,000 1.07 — 3,617,000 — Kensington Alaska, USA 731,000 — 0.232 — 170,000 Endeavor Australia 3,527,000 1.09 — 3,836,000 — Palmarejo Mexico 11,653,000 2.40 0.052 27,928,000 612,000 Joaquin (51%) Argentina 7,755,000 3.15 0.003 24,456,000 21,000 Lejano     Argentina     —         —         —       —     — Total           67,853,000                     84,576,000     926,000   In reference to the above 2011 reserves and resources tables, effective December 31, 2011, for details on the estimation of mineral resources and reserves for each property, please refer to the relevant Technical Report on file at www.sedar.com. Coeur d'Alene Mines CorporationWendy Yang, Vice President of Investor Relations208-665-0345orStefany Bales, Director of Corporate Communications208-667-8263www.coeur.com