COEUR D ALENE MINES CORP
10-Q, 1995-05-15
SILVER ORES
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                       SECURITIES AND EXCHANGE COMMISSION

                               Washington, D. C.
                               -----------------

                                   FORM 10-Q

(Mark One)
 [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1995

                                       OR

 [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _________________ to ____________________

                         Commission File Number: 1-8641


                        COEUR D'ALENE MINES CORPORATION
             (Exact name of registrant as specified on its charter)

             IDAHO                                       82-0109423
(State or other jurisdiction of                    (I.R.S. Employer Ident. No.)
 incorporation or organization)

P. O. Box I, Coeur d'Alene, Idaho                          83816
(Address of principal executive                          (Zip Code)
 offices)

Registrant's telephone number, including area code:    (208) 667-3511


Former name, former address and former fiscal year, if changed since last
report

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  YES  X     NO

                         -------------------------

APPLICABLE ONLY TO CORPORATE ISSUERS:  Indicate the number of shares outstanding
of each of Issuer's classes of common stock, as of the latest  practicable date:
Common  stock,  par value  $1.00,  of which  15,598,590  shares  were issued and
outstanding as of May 5, 1995.

<PAGE>


                        COEUR D'ALENE MINES CORPORATION

                                     INDEX




                                                                        Page No.


PART I.         Financial Information:


Item 1.         Financial Statements
             Consolidated Balance Sheets --                                  3-4
             March 31, 1995 and December 31, 1994


             Consolidated Statements of Operations --                          5
             Three Months Ended March 31, 1995 and 1994


             Consolidated Statements of Cash Flows --                        6-7
             Three Months Ended March 31, 1995 and 1994


             Notes to Consolidated Financial Statements                     8-10



Item 2.         Management's Discussion and Analysis of                    10-14
             Financial Condition and Results of Operations



PART II.        Other Information.                                            14


Item 6.         Exhibits and Reports on Form 8-K                              14



SIGNATURES







                                       2

<PAGE>


                                                                      UNAUDITED




                        COEUR D'ALENE MINES CORPORATION
                             (An Idaho Corporation)
                              Coeur d'Alene, Idaho

                          CONSOLIDATED BALANCE SHEETS


ASSETS                                    March 31,            December 31,
                                            1995                   1994

CURRENT ASSETS
   Cash and cash equivalents            $ 20,714,862           $ 15,147,908
   Short term investments                113,640,743            128,112,407
   Receivables                            11,368,068              9,468,112
   Refundable income taxes                 2,606,218              3,413,344
   Inventories                            35,903,623             35,946,125
                                         -----------            -----------
          Total Current Assets           184,233,514            192,087,896

PROPERTY, PLANT AND EQUIPMENT
   Property, plant and equipment          96,470,341             88,468,531
   Less accumulated depreciation          40,548,341             39,947,983
                                          ----------             ----------
                                          55,922,000             48,520,548

MINING PROPERTIES
   Operational mining properties          98,472,697            102,571,977
   Less accumulated depletion             33,529,718             38,162,432
                                          ----------             ----------
                                          64,942,979             64,409,545
   Developmental properties               99,758,070             95,896,774
                                         -----------            -----------
                                         164,701,049            160,306,319

OTHER ASSETS
   Funds held in escrow                    2,270,695              2,270,695
   Debt issuance costs, net of
      accumulated amortization             8,023,455              8,240,209
   Other                                   1,578,223              1,417,016
                                          ----------             ----------
                                          11,872,373             11,927,920
                                         -----------            ----------- 
                                        $416,728,936           $412,842,683
                                         ===========            ===========
                                       3
<PAGE>

                                                                      UNAUDITED
                        COEUR D'ALENE MINES CORPORATION
                             (An Idaho Corporation)
                              Coeur d'Alene, Idaho

                          CONSOLIDATED BALANCE SHEETS


LIABILITIES AND STOCKHOLDERS' EQUITY       MARCH 31,            DECEMBER 31,
                                             1995                  1994

CURRENT LIABILITIES
   Accounts payable                     $  1,909,407           $  2,458,605
   Accrued liabilities                     5,928,352              4,158,792
   Cash dividends payable                  2,339,376
   Short-term project financing            5,000,000
   Accrued interest payable                5,031,739              4,634,961
Accrued salaries and wages                 3,278,939              4,164,061
   Other current liabilities                 173,876              1,084,366
   Current portion of obligations under
     capital leases                        2,077,990              2,041,057
                                          ----------             ----------    
            Total Current Liabilities     25,739,679             18,541,842

OTHER LIABILITIES
   6% Subordinated Convertible 
      Debentures                          50,000,000             50,000,000
   7% Subordinated Convertible 
      Debentures                          74,990,000             75,000,000
   6 3/8% Subordinated Convertible 
      Debentures                         100,000,000            100,000,000
   Obligations under capital leases        1,153,694              2,192,856
   Other long-term liabilities             5,286,854              5,234,899
   Deferred income taxes                     588,352              1,580,804
                                         -----------            -----------
           Total Long-Term Liabilities   232,018,900            234,008,559

COMMITMENTS AND CONTINGENCIES:

STOCKHOLDERS' EQUITY
   Preferred Stock, par value $1.00 per
     share authorized 10,000,000 shares,
     none outstanding
   Common Stock, par value $1.00 per 
     share-authorized  60,000,000 shares, 
     issued 16,655,051 and 16,633,163 
     shares (including 1,059,211 and 
     1,058,453 shares held in treasury 
     stock)                                16,655,051             16,633,163
   Capital surplus                        180,896,087            182,881,071
   Accumulated deficit                    (20,218,799)           (17,043,506)
   Unrealized losses on
     short-term investments                (5,037,389)            (8,820,137)
   Repurchased and Nonvested Shares       (13,324,593)           (13,358,309)
                                          -----------            -----------
                                          158,970,357            160,292,282
                                          -----------            -----------
                                         $416,728,936           $412,842,683
                                          ===========            ===========
See notes to consolidated financial statements.
                                       4
<PAGE>



                                                                      UNAUDITED
                        COEUR D'ALENE MINES CORPORATION
                             (An Idaho Corporation)
                              Coeur d'Alene, Idaho

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                   Three Months Ended March 31, 1995 and 1994


                                              1995                   1994
INCOME From mine operations:
      Sale of concentrates and dore'     $ 17,891,169           $ 20,209,582
      Less cost of mine operations         16,040,529             17,339,549
                                           ----------             ----------  
         Gross Profits                     1,850,640              2,870,033

   From manufacturing operations:
      Sale of industrial products           3,072,691              2,685,916
      Less cost of manufacturing            2,801,551              2,509,563
                                            ---------              --------- 
         Gross Profits                        271,140                176,353

OTHER INCOME
   Interest and other                       2,557,293              1,395,611
                                            ---------              ---------
          Total Income                      4,679,073              4,441,997

EXPENSES
   Administration                             964,371              1,590,709
Accounting and legal                          367,969                420,940
   General corporate                        1,585,847              1,367,106
Interest                                    2,981,865              2,504,582
   Mining exploration                       1,136,103                736,324
   Idle facilities                            541,011                412,344
                                            ---------              ---------
          Total Expenses                    7,577,166              7,032,005
                                            ---------              ---------
LOSS BEFORE INCOME TAXES                   (2,898,093)            (2,590,008)

      Provision for income taxes              277,200                  7,291
                                            ---------              ---------
NET INCOME (LOSS)                        $ (3,175,293)          $ (2,597,299)
                                            =========              =========
EARNINGS PER SHARE DATA

Earnings per share data:

   Weighted average number
      of shares of Common Stock
      and equivalents used in
      calculation                           15,578,036             15,338,770
                                            ==========             ========== 
Net Loss Per Share                         $      (.20)           $      (.17)
                                            ==========             ========== 
Cash dividends per share                   $       .15            $       .15
                                            ==========             ==========

See notes to consolidated financial statements.
                                       5
<PAGE>


                                                                     UNAUDITED


                        COEUR D'ALENE MINES CORPORATION
                             (An Idaho Corporation)
                              Coeur d'Alene, Idaho

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                   Three months ended March 31, 1995 and 1994



                                               1995                   1994

CASH FLOWS FROM OPERATING ACTIVITIES

   Net loss                                $(3,175,293)           $(2,597,299)

   Adjustments to reconcile net loss 
      to net cash provided by (used in) 
      operating activities:
      Depreciation, depletion and
        amortization                         4,028,752              4,405,152
      Deferred income taxes                   (992,452)              (129,104)
      Loss on disposition of assets            289,713                125,445
      Foreign currency transaction gain       (392,050)
      Loss on sale of short-term investments   341,293

   Change in operating assets and liabilities:
      Accounts receivable                   (1,092,830)              (269,624)
      Inventories                               42,503                706,783
      Accounts payable and
        accrued liabilities                 (2,387,626)             1,642,620
                                             ---------              ---------
        NET CASH PROVIDED BY (USED
          IN) OPERATING ACTIVITIES         $(3,337,990)           $ 3,883,973
                                             =========              =========
                                       6
<PAGE>


                                                                      UNAUDITED



                      CONSOLIDATED STATEMENTS OF CASH FLOW
                   Three months ended March 31, 1995 and 1994


                                                1995                   1994

CASH FLOWS FROM INVESTING ACTIVITIES

   Purchase of property, plant,
      and equipment                           (645,691)          $   (970,987)
   Purchase of short-term investments       (2,399,338)           (82,051,395)
   Proceeds from sales of debt and
      equity securities                     19,955,321                165,613
   Expenditures on developmental 
      properties                           (10,427,732)            (2,621,315)
   Expenditures on operational mining
      properties                            (1,627,374)            (1,150,914)
   Proceeds from (expenditures on)
      other assets                              51,987               (118,678)
        
        NET CASH PROVIDED BY (USED IN)       ---------             ----------
        INVESTING ACTIVITIES                 4,907,173            (86,747,676)


CASH FLOWS FROM FINANCING ACTIVITIES

   Proceeds from bank loans                  5,000,000
   Proceeds from offering of 6 3/8%
      Convertible Subordinated Debentures
      Due 2004 (net of offering costs)                             95,724,774
   Retirement of obligations under
      capital leases                        (1,002,229)              (462,244)
                                             ---------             ----------
        NET CASH PROVIDED BY
          FINANCING ACTIVITIES               3,997,771             95,262,530
                                             ---------             ----------
        INCREASE IN CASH
        AND CASH EQUIVALENTS                 5,566,954             12,398,827

Cash and cash equivalents at beginning
   of year                                  15,147,908             14,678,097
                                            ----------             ----------
   CASH AND CASH EQUIVALENTS AT
      MARCH 31, 1995 AND 1994             $ 20,714,862           $ 27,076,924
                                            ==========             ========== 



See notes to consolidated financial statements.
                                       7
<PAGE>


UNAUDITED

                        Coeur d'Alene Mines Corporation
                                and Subsidiaries
                   Notes to Consolidated Financial Statements



NOTE A:  Inventories are composed of the following:


                                                  MARCH 31,        DECEMBER 31,
                                                    1995               1994


   Mining:
      Ore in process and on leach pads          $28,955,080        $28,895,419
      Dore' inventory                             1,617,150          1,748,207
      Supplies                                    3,625,188          3,571,501
                                                 ----------         ----------
                                                 34,197,418         34,215,127


   Manufacturing:
      Raw materials                               1,010,488          1,092,727
      Finished goods                                695,717            638,271
                                                 ----------         ----------
                                                $35,903,623        $35,946,125
                                                 ==========         ==========

       Inventories  of ore on leach pads and in the  milling  process are valued
based on actual  costs  incurred to place such ore into  production,  less costs
allocated to minerals  recovered  through the  leaching  and milling  processes.
Inherent in this  valuation is an estimate of the  percentage of the minerals on
leach  pads  and in  process  that  will  ultimately  be  recovered.  Management
evaluates  this estimate on an ongoing  basis.  Adjustments  to the recovery are
accounted for prospectively.  All other inventories are stated at the lower cost
or market cost being  determined  using first in, first out and weighted average
cost methods. Dore' inventory includes product at the mine site and product held
by refineries.

NOTE B:

       The  Company's  tax  expense  for the first  quarter of 1995  results
primarily from amounts paid as a result of Internal Revenue Service  adjustments
which were settled in the first  quarter.  The tax expense for the first quarter
of 1994 results primarily from accrued state taxes.

                                       8
<PAGE>


NOTE C:

     On May 2, 1995,  the Company sold all the assets of its  flexible  hose and
tubing division,  "The Flexaust Company", and shares of a related subsidiary for
approximately  $10.0 million payable in cash, of which  approximately $4 million
was paid at the closing and the balance is payable over the next five years. The
results of operations of the Flexaust manufacturing segment will be presented as
"Discontinued Operations" in the second quarter of 1995. The Company will record
a pre-tax gain of  approximately  $4 million  ($2.4 million net of income taxes)
during the second quarter of 1995.

NOTE D:

       On January 1, 1995,  the Company  entered into an  agreement  with Asarco
Incorporated,  forming a new company called Silver Valley  Resources,  Inc. Both
Coeur and Asarco contributed their respective  interests in the Galena and Coeur
Mines, as well as other assets and waived certain cash flow  entitlements at the
Galena Mine in return for shares of capital  stock of Silver  Valley  Resources,
Inc.  Coeur's  investment  is included on the balance  sheet as  operational
mining properties. The transaction resulted in no gain or loss to the Company.


NOTE E:

       On April 19, 1995, the Company signed a project financing  agreement with
a bank syndicate lead by N.M. Rothschild & Sons, Ltd. The agreement provides for
the borrowing of up to $24 million for use in the  construction  of the Fachinal
project,  provides  for various  covenants  by the Company  and  dependent  upon
attainment of certain  completion  tests,  restricts the recourse of the bank in
the event of default to the assets of the Company's Chilean subsidiary.  The
Company is required to guarantee  repayment of the  borrowing  until the project
reaches a  defined  completion,  after  which the  project  alone is liable  for
repayment. The interest rate prior to completion is equal to LIBOR plus 1.5% and
increases to LIBOR plus 2.75% after  completion.  The  borrowing is repayable in
eight equal remaining semiannual installments after project completion.


NOTE F:

       Certain  reclassifications  of prior  year  balances  have  been  made to
conform to current year classifications.


                                       9
<PAGE>


NOTE G:

       Other than as stated in the notes  above,  in the opinion of  management,
the foregoing unaudited financial statements include all adjustments, consisting
of normal recurring  accruals,  necessary for a fair presentation of the results
of operations for the periods shown.


Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

General

      The results of the Company's operations are significantly  affected by the
market prices of gold and silver which may fluctuate  widely and are affected by
many  factors  beyond  the  Company's   control,   including   interest   rates,
expectations  regarding  inflation,   currency  values,  governmental  decisions
regarding  the  disposal  of precious  metals  stockpiles,  global and  regional
political and economic  conditions,  and other factors.  The Company's currently
operating  mines are the  Rochester  Mine in  Nevada,  which it wholly  owns and
operates;  the Golden Cross Mine in New Zealand, in which the Company has an 80%
operating  interest;  and the El Bronce  Mine,  a Chilean gold mine of which the
Company assumed 51% operating control in October 1994. In addition, in September
1994,  the Company  entered  into an  agreement  under which it has the right to
acquire up to a 51% operating  interest in another  developmental  stage Chilean
gold mine, the Faride Mine.  The Company also owns a 50% joint venture  interest
in the Kensington project,  which is being developed as an underground gold mine
north of Juneau, Alaska. The Company recently announced its proposed acquisition
of the remaining 50% interest in that project.

     Effective January 1, 1995, the Company,  Callahan and Asarco contributed to
Silver Valley Resources,  Inc. ("Silver Valley") their interests in and relating
to the  Galena  and  Coeur  Mines in  Idaho,  at which  mining  activities  were
suspended  in July 1992 and April  1991,  respectively,  due to then  prevailing
silver  prices,  and  the  adjoining  Caladay  property,  a  silver  exploration
property.  It is contemplated  that Silver Valley,  of which Asarco owns 50% and
the Company and  Callahan  own 50%,  will  invest  approximately  $25 million in
development  and  exploration  at  the  properties  under  a  two-year  plan  of
lengthening the existing workings, improving infrastructure and diamond drilling
to increase  reserves and mine life. The reopening of the Galena and Coeur Mines
is  dependent  upon the  favorable  action of the Board of  Directors  of Silver
Valley,  which will base its decision  upon several  factors,  including  silver
prices.

     The  Company  has an option  until  July  1997 to  increase  its  ownership
interest  in the El Bronce  Mine to 51% if it  invests  $20.4  million  and also
invests a minimum of $5 million over a two-year  period for exploration and mine
development  designed to expand ore reserves and increase annual gold production
above the  current  level of 40,000  ounces per year.  The  Company  also has an
option until 
                                       10
<PAGE>
January   15,  1998  to  acquire up to  a 51%  operating  interest in the Faride
Mine by  paying  the  current  owner $4  million  over a  four-year  period  and
investing $3.5 million in exploratory activities.
     
     In July 1994, the Company's Board of Director's  approved  construction of
the Fachinal  Project.  Construction of the new mine is expected to be completed
in the fourth quarter of 1995 at a total estimated cost of  approximately  $41.8
million.  The mine presently is expected to produce  approximately 41,000 ounces
of gold and 2.6 million ounces of silver in its first full year.

      On May 5, 1995,  the Company  announced  that subject to the execution and
consummation  of a  definitive  agreement,  Echo Bay Mines,  Ltd.  ("Echo  Bay")
accepted the  Company's  offer to purchase  from Echo Bay the 50% joint  venture
interest in the Kensington project not already owned by the Company. The Company
has agreed to acquire that interest for $32.5 million,  plus a scaled royalty on
one million ounces of future production. Such royalty payments to Echo Bay would
begin only after the  Company  recoups  its  acquisition  cost of Echo Bay's 50%
interest and the Company's remaining cost to place the property into production.
The  royalty  ranges  from 1% at $400 gold prices to a maximum to 2 1/2% at gold
prices  above  $475,  with the  royalty  to be capped at one  million  ounces of
production.  Consummation  of the proposed  agreement will give the Company full
ownership and operating control of the Kensington gold property.

      A production decision by the Company at the Kensington Property is subject
to a market  price of gold of at least $400 per ounce and the receipt of certain
required  permits.  The market price of gold  (London  final) on May 5, 1995 was
$389.30 per ounce. With respect to the permits, the Company is unable to control
the timing of their issuance. On November 8, 1994, the EPA issued a draft of its
Technical  Assistance Report which calls for the Kensington  venture to redesign
portions of its project and furnish additional data, in order to satisfy certain
environmental  requirements.  If, in its final  report,  the EPA  adheres to the
recommendations in the draft, the Company believes it is feasible to make design
changes and furnish necessary data. It is anticipated that a final EPA Technical
Assistance Report will be furnished by the EPA to the Army Corps of Engineers in
the second  quarter of 1995,  which  should lead to the issuance by the Corps of
its  Section  404  permit in due  course.  However,  the  Company is not able to
control the timing of such regulatory issues.

     The  Company's  business plan is to continue to acquire  mining  properties
and/or businesses that are operational or expected to become  operational in the
near  future  so that they can  reasonably  be  expected  to  contribute  to the
Company's  near-term  cash flow from  operations  and expand the Company's  gold
and/or silver production.
                                       11
<PAGE>

RESULTS OF OPERATIONS

Sales and Gross Profits

       Sales of concentrates and dore' decreased by $2,318,413,  or 11%, for the
first  quarter  of  1995  compared  with  the  same  quarter  of  1994  and  was
attributable  to a decrease in metals  prices.  Silver and gold prices  averaged
$4.70 and $379.10 per ounce, respectively, in the first quarter of 1995 compared
with $5.28 and $384.30 per ounce, respectively, in the first quarter of 1994. In
the first quarter of 1995, the Company  produced  1,528,817 ounces of silver and
36,571 ounces of gold  compared to 1,510,396  ounces of silver and 31,577 ounces
of gold in the  first  quarter  of 1994.  The  increase  in gold  production  is
primarily due to increased  production at the  Company's  Rochester  Mine in the
first quarter of 1995.

       The cost of mine  operations  for the first quarter of 1995  decreased by
$1,299,020,  or 7%, below the prior year's  comparable  quarter and is primarily
attributable to lower production costs at the Golden Cross Mine. In 1994, higher
than  normal  production  costs were  incurred at the Golden  Cross Mine,  which
experienced  a  wetter  than  expected  January  and an  anticipated,  temporary
reduction in ore grade from the open pit mine.  As a result of the above,  gross
profits  from  mine  operations  decreased  by  $1,019,393,  or 36% in the first
quarter of 1995 from the prior years first  quarter.  The sales of  manufactured
products,  which consist of lightweight flexible hose and duct and metal tubing,
increased  by  $386,775,  or 14%,  in the first  quarter of 1995 above the first
quarter of 1994. Cost of manufacturing  increased by $291,988,  or 12%, compared
with the first  quarter of 1994. As a result,  gross profits from  manufacturing
increased by $94,787, or 54%, in the first quarter of 1995 from the prior year's
first quarter.


Other Income

       Other income  increased by  $1,161,682,  or 83%, for the first quarter of
1995  compared to the first  quarter of 1994.  The  difference  is primarily the
result of an increase in interest income  resulting from the higher level of the
Company's cash and securities portfolio and management fee income related to the
El Bronce mine.



Expenses

       For the first quarter of 1995, total expenses  increased by $545,161,  or
8%, above the prior year's comparable quarter.  The increase is primarily due to
(i) an increase in interest  expense of $477,283  primarily  resulting  from the
issuance of $100 million  principal  amount of 6 3/8%  Convertible  Subordinated
Debentures  in the  first  quarter  of 1994,  and  (ii) an  increase  in  mining
exploration expense.
                                       12
<PAGE>

Loss Before Taxes

       As a result of the above, the Company's loss before income taxes amounted
to  $2,898,093  for the first  quarter of 1995  compared to a loss before income
taxes of $2,590,008 for the first quarter of 1994. The Company  reported  income
tax expense for the first quarter of 1995 of $277,200 compared to $7,291 for the
same period of 1994. As a result,  the Company reports a net loss of $3,175,293,
or $.20 per share,  for the first  quarter of 1995  compared  with a net loss of
$2,597,299, or $.17 per share, for the 1994's comparable quarter.


LIQUIDITY AND CAPITAL RESOURCES

       The Company's working capital at March 31, 1995 was approximately  $158.5
million  compared to $173.5  million at December 31, 1994.  The ratio of current
assets to current liabilities was 7.2 to 1 at March 31, 1995, compared with 10.4
to 1 at December 31, 1994.

       Net cash provided by (used in) operating activities for the first quarter
of 1995 was $(3,337,990) compared with $3,883,973 for the first quarter of 1994.
A total of $4,907,173 of cash was provided by investing  activities in the first
quarter of 1995,  compared to $86,747,676  used in the first quarter of 1994. Of
the $86,747,676 used in investing activities in the first quarter of 1994, $82.1
million  relates  to  the  purchase  of  investment  grade   intermediate   term
investments.  The Company's  financing  activities  provided  $3,997,771 of cash
during the first quarter of 1995 compared with $95,262,530 for the first quarter
of 1994. As a result of the above, the Company's net cash increase for the first
quarter of 1995 was $5,556,954  compared with  $12,398,827 for the first quarter
of 1994.

     The  Company  estimates  that  the  cost to  complete  construction  of the
Fachinal mining  facilities will be  approximately  $41.8 million.  On April 19,
1995,  the Company  signed a project  financing  agreement with a bank syndicate
lead by N.M. Rothschild & Sons, Ltd. The agreement provides for the borrowing of
up to $24 million for use in the construction of the Fachinal project,  provides
for various  covenants by the Company and dependent  upon  attainment of certain
completion tests,  restricts the recourse of the bank in the event of default to
the assets of the  Company's  Chilean  subsidiary.  The  Company is  required to
guarantee  repayment  of the  borrowing  until  the  project  reaches  a defined
completion,  after which the project alone is liable for repayment. The interest
rate prior to completion is equal to LIBOR plus 1.5% and increases to LIBOR plus
2.75% after  completion.  The  borrowing is  repayable in eight equal  remaining
semiannual installments after project completion.

       For the  quarters  ended  March 31, 1995 and 1994,  the Company  expended
$581,052 and $465,174, respectively, in connection with environmental compliance
activities  at its  operating  properties.  At March 31,  1995,  the Company had
expended a total of approximately  $4.8 million on environmental  and permitting
activities at the
                                       13
<PAGE>
Kensington property,  which expenditures  have  been  capitalized as part of its
development cost.

       On May 2, 1995,  the Company  agreed to sell all the assets of its 
flexible  hose and tubing  division, "The  Flexaust  Company",  and  shares of a
related subsidiary for approximately $10.0  million payable  in  cash, of  which
approximately $4 million was paid at the closing and the balance is payable over
the next five years.  The results of operations of Flexaust will be presented as
"Discontinued Operations" in the second quarter of 1995. The Company will record
a gain of approximately $4 million during the second quarter of 1995.


PART II.  Other Information.

Item 6.      Exhibits and Reports on Form 8-K

  (b)              Reports on Form 8-K

                   None
                                       14
<PAGE>





                                   SIGNATURES


   Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.







                                       COEUR D'ALENE MINES CORPORATION
                                                 (Registrant)




Dated May 5, 1995                          /s Dennis E. Wheeler
                                           DENNIS E. WHEELER
                                           Chairman, President and
                                           Chief Executive Officer




Dated May 5, 1995                           /s James A. Sabala
                                            JAMES A. SABALA
                                            Senior Vice President
                                            (Principal Financial and
                                            Accounting Officer)










                                       15


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