U.S. REPORT Coeur d’Alene continues gold development program

The gross proceeds of US$50.2 million realized by Coeur d’Alene Mines (NYSE) through the sale of two million of its shares last October will be used primarily to develop the Kensington and Fachinal gold projects. Final design and engineering work for the Kensington project near Juneau, Alaska, is being performed by Bechtel Corp. The Kensington mine is a joint venture owned equally by Coeur d’Alene and Echo Bay Mines (TSE).

In early 1990, Coeur d’Alene purchased the Fachinal gold-silver discovery and six other exploration targets in southern Chile from Freeport-McMoRan for US$5 million. About US$2.1 million was spent on exploration last year with encouraging results, and the project is now considered an important part of the company’s gold development program.

Coeur d’Alene produced a total of 65,153 oz. gold in 1990, compared with 93,325 oz. in 1989. The decline was attributed to diminishing reserves at the Thunder Mountain mine, which led to its closing at the end of 1990.

The mine closure and related US$5.6 million writeoff were a primary cause of the loss reported by the company for 1990. A net loss of US$1.7 million, or US17 cents per share, on total revenues of US$59 million was reported for the year, compared to net income of US$9.4 million, or US94 cents per share, on total revenues of US$77 million in 1989.

The company also realized a lower average price for its silver production in 1990, at an average of US$4.82, compared with an average silver price of US$5.51 in 1989. The company’s silver production increased to 5.6 million oz. in 1990, compared with 5.5 million oz. in 1989. Coeur d’Alene Mines (NYSE)* 3 months ended Dec. 31 1990 1991 Revenue $14,392 $20,829 Net earnings (loss) (5,336) 4,398 per share (0.45) 0.42 12 months ended Dec. 31 Revenue $58,980 $77,429 Net earnings (loss) (1,739) 9,405 per share (0.17) 0.94