COEUR D ALENE MINES CORP
10-Q, 1996-05-14
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, 1996

                                      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 21,890,971  shares
were issued and outstanding as of May 10, 1996.


<PAGE>


<TABLE>
                        COEUR D'ALENE MINES CORPORATION

                                     INDEX


                                                                      Page No.
                                                                      --------


PART I.     Financial Information:

<S>                                                                      <C>
Item 1.     Financial Statements
            Consolidated Balance Sheets --                               3-4
            March 31, 1996 and December 31, 1995


            Consolidated Statements of Operations --                       5
            Three Months Ended March 31, 1996 and 1995


            Consolidated Statements of Cash Flows --                     6-7
            Three Months Ended March 31, 1996 and 1995


            Notes to Consolidated Financial Statements                   8-9



Item 2.     Management's Discussion and Analysis of                    10-16
            Financial Condition and Results of Operations



PART II.    Other Information.                                            17


Item 6.     Exhibits and Reports on Form 8-K                              17



SIGNATURES                                                                19
</TABLE>

                                     -2-

<PAGE>


<TABLE>
                                                                     UNAUDITED
                                                                     ---------


                          CONSOLIDATED BALANCE SHEETS
               COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES


<CAPTION>
ASSETS                                            March 31,           December 31,
                                                    1996                  1995
                                                  ---------           ------------
                                                           (In Thousands)
<S>                                                <C>                  <C>     
CURRENT ASSETS
   Cash and cash equivalents                       $ 83,918             $ 16,485
   Funds held in escrow                               2,271                2,271
   Short term investments                            98,122               63,076
   Receivables                                       21,459               13,809
   Inventories                                       29,432               30,981
                                                   ---------            --------
            Total Current Assets                    235,202              126,622

PROPERTY, PLANT AND EQUIPMENT
   Property, plant and equipment                    119,271              118,083
   Less accumulated depreciation                     35,468               34,152
                                                   ---------            --------
                                                     83,803               83,931

MINING PROPERTIES
   Operational mining properties                    159,436              150,656
   Less accumulated depletion                        40,000               38,529
                                                   ---------            --------
                                                    119,436              112,127
   Developmental properties                         110,908              108,820
                                                   ---------            --------
                                                    230,344              220,947
OTHER ASSETS
   Notes receivable                                   5,000                5,000
   Debt issuance costs, net of
      accumulated amortization                        4,548                4,703
   Marketable securities                             18,137                4,390
   Other                                              1,487                   53
                                                   ---------            --------
                                                     29,172               14,146
                                                   --------             --------
                                                   $578,521             $445,646
                                                   =========            ========
</TABLE>

                                     -3-

<PAGE>


<TABLE>
                                                                     UNAUDITED
                                                                     ---------


                          CONSOLIDATED BALANCE SHEETS
                    COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES

<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY              March 31,           December 31,
                                                    1996                  1995
                                                  ---------           ------------
                                                           (In Thousands)
<S>                                               <C>                   <C>     
CURRENT LIABILITIES
   Accounts payable                               $  3,434              $  5,743
   Accrued liabilities                               7,207                 3,525
   Accrued interest payable                          3,624                 4,526
   Accrued salaries and wages                        3,959                 5,039
   Cash dividends payable                            3,071
   Current portion of obligations under
     capital leases                                  1,659                 2,193
                                                  ---------             --------
           Total Current Liabilities                22,954                21,026

OTHER LIABILITIES
   6% Subordinated Convertible Debentures           50,000                50,000
   6 3/8% Subordinated Convertible Debentures      100,000               100,000
   Limited recourse project financing               24,000                24,000
   Other long-term liabilities                       9,695                 9,386
   Deferred income taxes                             1,399                 1,402
                                                  ---------             --------
        Total Long-Term Liabilities                185,094               184,788

COMMITMENTS AND CONTINGENCIES:

SHAREHOLDERS' EQUITY
   Mandatory Adjustable Redeemable Convertible
   Securities (MARCS), par value $1.00 per
     share, (a class of preferred stock)-
     authorized 10,000,000 shares,
     6,588,235 issued and outstanding                6,588
   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 shares
     held in treasury stock)                        21,524                21,524
   Capital surplus                                 372,090               247,100
   Accumulated deficit                             (15,756)              (15,889)
   Unrealized gains (losses) on
     short-term investments                           (729)                  361
   Repurchased and Nonvested Shares                (13,244)              (13,264)
                                                  ---------             ---------
                                                   370,473               239,832
                                                  ---------             --------
                                                  $578,521              $445,646
                                                  =========             ========
See notes to consolidated financial statements.
</TABLE>

                                     -4-

<PAGE>


<TABLE>
                                                                     UNAUDITED
                                                                     ---------


                     CONSOLIDATED STATEMENTS OF OPERATIONS
               COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
                  Three Months Ended March 31, 1996 and 1995

<CAPTION>
                                                      1996                  1995
                                                  -----------           -----------
                                               (In thousands except per share amounts)
<S>                                                 <C>                  <C>     
INCOME
   Sale of concentrates and dore'                   $ 22,609             $ 17,891
   Less cost of mine operations                       19,596               16,041
                                                    ---------            --------
            Gross Profits                              3,013                1,850

OTHER INCOME
   Interest and other                                  1,931                2,387
                                                    ---------            --------
            Total Income                               4,944                4,237
EXPENSES
   Administration                                      1,088                  964
   Accounting and legal                                  274                  368
   General corporate                                   1,650                1,463
   Interest                                              684                2,982
   Mining exploration                                  1,039                1,136
   Idle facilities                                                            541
                                                    ---------            --------
            Total Expenses                             4,735                7,454
                                                    ---------            --------

NET INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE TAXES                                  209               (3,217)
   Provision for income taxes                            (76)                (150)
                                                    ---------            ---------
NET INCOME (LOSS) FROM CONTINUING OPERATIONS        $    133             $ (3,367)
INCOME FROM DISCONTINUED OPERATIONS                                           192
                                                    ---------            --------
NET INCOME (LOSS)                                   $    133             $ (3,175)
                                                    =========            =========

EARNINGS PER SHARE DATA

Earnings per share data:

   Weighted average number
      of shares of Common Stock
      and equivalents used in
      calculation                                     20,502               15,578
                                                    =========            ========

Net Income (Loss)from Continuing Operations         $    .01             $   (.21)
Net Income From Discontinued Operations                                       .01
                                                    ---------            --------
Net Income (Loss) Per Share                         $    .01             $   (.20)
                                                    =========            =========
Net Loss per share attributable to
   Common Shareholders                              $   (.02)            $   (.20)
                                                    =========            =========
Dividends per Common Shareholders                   $    .15             $    .15
                                                    =========            ========

See notes to consolidated financial statements.
</TABLE>

                                     -5-

<PAGE>


<TABLE>
                                                                     UNAUDITED
                                                                     ---------


                     CONSOLIDATED STATEMENTS OF CASH FLOWS
               COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
                  Three months ended March 31, 1996 and 1995

                                                         1996                 1995
                                                     ------------         ------------
                                                               (In Thousands)
<S>                                                     <C>                 <C>     
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income (loss) from continuing operations         $   133             $(3,367)

   Adjustments to reconcile net loss from continuing
    operations to net cash provided by (used in)
    operating activities:
      Depreciation, depletion and amortization            3,179               3,679
   Accrued reclamation                                      347                 280
      Deferred income taxes                                  (3)             (1,120)
   Gain (loss) on disposition of assets                    (315)                290
      Gain (loss)on foreign currency transactions           103                (392)
      Loss on sale of short-term investments                 13                 341

   Change in operating assets and liabilities:
      Accounts receivable                                  (666)               (937)
      Inventories                                         1,549                  17
Accounts payable and accrued liabilities                 (2,170)             (2,842)
Interest payable                                           (902)                397
                                                        --------            -------
Net cash provided by (used in)continuing
        operations                                        1,268              (3,654)

   Income from discontinued operations                                      $   192

   Adjustments to reconcile income from
    discontinued operations to net cash provided
    by operating activities                                                     124
                                                        --------            -------
                                                                                316
                                                        --------            -------
   NET CASH PROVIDED BY (USED IN)
      OPERATING ACTIVITIES                                1,268              (3,338)
CASH FLOWS FROM INVESTING ACTIVITIES
   Investment in unconsolidated subsidiary               (1,418)
   Purchase of property, plant, and equipment              (580)               (646)
Purchase of short-term investments                      (81,007)             (2,399)
Proceeds from sales of marketable securities             30,936              19,955
   Expenditures on developmental properties              (2,668)            (10,428)
Expenditures on operational mining properties           (14,453)             (1,627)
Proceeds from (investment in)other assets                   189                  82
                                                       ---------            -------
NET CASH PROVIDED BY (USED IN)
          INVESTING ACTIVITIES                          (69,001)              4,937
</TABLE>


                                     -6-

<PAGE>


<TABLE>
                                                                     UNAUDITED
                                                                     ---------


                     CONSOLIDATED STATEMENTS OF CASH FLOWS
               COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
                  Three months ended March 31, 1996 and 1995

                                                         1996                 1995
                                                     ------------         --------
                                                               (In Thousands)
<S>                                                    <C>                <C>
CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from preferred stock issuance
     (net of costs)                                     135,700
   Proceeds from bank loans                                                   5,000
   Retirement of obligations under capital leases          (534)             (1,032)
                                                       ---------            --------
NET CASH PROVIDED BY
             FINANCING ACTIVITIES                       135,166               3,968
                                                       ---------            -------
   INCREASE IN CASH AND CASH EQUIVALENTS                 67,433               5,567

Cash and cash equivalents at beginning of year           16,485              15,148
                                                       ---------            -------

   CASH AND CASH EQUIVALENTS AT
      MARCH 31, 1996 AND 1995                          $ 83,918           $  20,715
                                                       =========          =========


See notes to consolidated financial statements.
</TABLE>

                                     -7-

<PAGE>

                                                                  UNAUDITED

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


<TABLE>
NOTE A:  Inventories are comprised of the following:

<CAPTION>

                                               MARCH 31,       DECEMBER 31,
                                                 1996              1995
                                               --------        -----------
                                                      (In Thousands)

<S>                                             <C>            <C>    
      Ore in process and on leach pads          $24,583        $25,727
      Dore' inventory                             1,252          2,052
      Supplies                                    3,597          3,201
                                                -------        -------
                                                $29,432        $30,980
                                                =======        =======
</TABLE>

     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 of
cost or market  with  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 1996 results primarily
from amounts paid for foreign withholdings tax.

NOTE C:

     On March 8, 1996,  the  Company  completed  a public  offering  of $140.0
million of Mandatory Adjustable Redeemable Convertible Securities (MARCS). The
Company  issued  6,588,235  shares of MARCS  which  were  offered  at a public
offering  price of  $21.25  per  share.  Each  share  of MARCS is  mandatorily
convertible four years after issuance into 1.111 shares of Common Stock of the
Company,  subject to adjustment in certain events, unless earlier converted by
the holder into Common Stock or redeemed for Common Stock by the Company.  The
annual  dividend  payable  on the MARCS  will be  $1.488  per  share,  payable
quarterly.  The  dividends  will be deducted in  computing  net income  (loss)
attributable  to Common  Shareholders.  On April 8, 1996,  the Company sold an
additional  489,598 shares of MARCS to the  underwriters  as a result of their
exercise of an  overallotment  option  granted to them in connection  with the
public offering.  With the exercise of the overallotment  option,  the

                                     -8-

<PAGE>


Company  has sold a total of  7,077,833  shares of MARCS for a total  offering
price of $150.4  million  which  resulted  in net  proceeds  to the Company of
$145.8 million.

NOTE D:

     On December 21, 1995, the Company announced it had entered into an option
agreement to acquire a 19.9%  interest in a publicly  listed  Australian  gold
producer, Gasgoyne Gold Mines NL ("Gasgoyne"), and intended to extend an offer
to  Gasgoyne's  shareholders  to  acquire  all of the  outstanding  shares  of
Gasgoyne.  On January  31,  1996,  Coeur made the filings  required  under the
Australian  securities laws with the Australian  Securities Commission ("ASC")
to initiate  proceedings  for the public offer. As of April 26, 1996, on which
date  the  Company's  offer  expired,  Coeur  held  or was  entitled  to  hold
approximately  35.4% of  Gasgoyne's  outstanding  shares  which it acquired by
issuing a total of 1,419,832 shares of the Company's Common Stock and paying a
total of approximately $15.4 million to Gasgoyne  shareholders.  Commencing in
the second quarter of 1996, Coeur will begin reporting its proportionate share
of Gasgoyne's net results of operations  pursuant to standards set forth under
generally accepted  accounting  principles for the equity method of accounting
for investments.

     On January 26, 1996, for a total  consideration of approximately  US$10.7
million,  the Company  acquired  5.5 million  shares and options to acquire an
additional 5.0 million shares of Orion Resources NL, an Australian gold mining
company ("Orion").  Earlier in 1995 and in 1994, Coeur had acquired a total of
3.33 million shares of Orion for a total cost of US$3.8 million.  On March 27,
1996,  the Company  exercised its option to acquire the additional 5.0 million
shares of Orion.  As a result,  Coeur  holds  approximately  19.2% of  Orion's
outstanding shares.

NOTE E:

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

NOTE F:

     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.

                                     -9-

<PAGE>


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;  the El Bronce Mine, a Chilean gold mine of which the
Company acquired  operating  control in October 1994; and the Fachinal Mine, a
Chilean  gold mine  wholly-owned  by the Company at which  initial  production
commenced in late October 1995.

     On  February  9,  1996,  Silver  Valley  Resources  Corporation  ("Silver
Valley"),  50% owned by the Company,  announced a program to resume operations
at the Coeur and Galena  Mines with full  production  scheduled to commence in
June 1996.  Silver Valley  estimates that during the mines' first full year of
operations,  they will produce a total of  approximately  3,000,000  ounces of
silver  per  annum.  Silver  Valley  is  also  conducting  a  development  and
exploration program at the properties in connection with which it is expanding
the  existing  workings,   improving  infrastructure  and  conducting  diamond
drilling to further increase reserves and mine life.

     The  Company has an option  until July 1997 to  purchase a 51%  ownership
interest in the El Bronce Mine if it invests the remaining $3.9 million option
payment  and  also  invests  a  minimum  of an  additional  $1.1  million  for
exploration and mine development  designed to expand ore reserves and increase
annual gold  production.  Since the Company took over operations at El Bronce,
it has been able to increase production 42.5% from approximately 40,000 ounces
per year to approximately 57,000 ounces forecast in 1996.

     Construction  of the new Fachinal  mine was  completed at a total cost of
approximately $41.1 million and initial production  commenced in October 1995.
The mine presently is expected to produce  approximately 44,000 ounces of gold
and 2.8  million  ounces of silver  during its first  full year of  commercial
production.

     A production decision at the Kensington Property is subject to completion
of an updated  feasibility  study, a market price of gold of at least $400 per
ounce and the receipt of certain  required

                                     -10-

<PAGE>

permits.  The market price of gold (London  final) on May 10, 1996 was $393.20
per ounce.  With respect to the permits,  the Company is unable to control the
timing of their  issuance;  however,  it is expected  that all permits will be
received by the end of 1996.

     On  April  26,  1996,  the  Company's  offer  (the  "Offer")  to  acquire
outstanding  shares of  Gasgoyne  Gold  Mines NL, an  Australian  gold  mining
company,   ("Gasgoyne")  expired.   Pursuant  to  the  Offer,  Coeur  acquired
approximately 35.4% of Gasgoyne's outstanding shares. (Pursuant to a competing
bid that expired on the same date,  another  Australian  gold mining  company,
Sons of Gwalia Limited  ("Sons of Gwalia"),  acquired  approximately  61.4% of
Gasgoyne's outstanding shares.) Coeur has also acquired approximately 19.2% of
the  outstanding  shares of Orion  Resources  NL, an  Australian  gold  mining
company ("Orion").  Gasgoyne and Orion own 50% and 45%,  respectively,  of the
Yilgarn Star Mine located in western Australia,  which produced  approximately
110,600  ounces of gold in  Gasgoyne's  fiscal  year ended  June 30,  1995 and
approximately  81,727  ounces of gold in the nine months ended March 31, 1996.
Coeur  presently  intends  to retain  its  Gasgoyne  and Orion  shares,  which
represent  Coeur's entry into the  Australian  gold sector and are intended to
position  Coeur for further  expansion in the  Australian  Pacific Rim Region.
Commencing  in the second  quarter of 1996,  Coeur  will begin  reporting  its
proportionate  share of  Gasgoyne's  net  results of  operations  pursuant  to
standards set forth under  generally  accepted  accounting  principles for the
equity method of accounting for investments.  The Company estimates that based
on Gasgoyne's  projected results of operations for the year ended December 31,
1996,  the  Company's  share of Gasgoyne's  earnings in 1996,  net of goodwill
amortization and financing costs, will approximate $1 million.

     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.

     This report contains certain  forward-looking  statements relating to the
Company's  gold and silver mining  business,  including  estimated  production
data,   expected   operating   schedules  and  other  operating  data.  Actual
production,  operating  schedules  and  results  of  operations  could  differ
materially from those projected in the forward-looking statements. The factors
that could cause actual results to differ  materially  from those projected in
the  forward-looking  statements  include (i) changes in the market  prices of
gold and silver, (ii) the uncertainties  inherent in the Company's exploratory
and  developmental  activities,   (iii)  the  uncertainties  inherent  in  the
estimation  of gold and silver ore  reserves,  (iv)  changes that could result
from the Company's future  acquisition of 

                                     -11-

<PAGE>


new mining properties or businesses, (v) the risks and hazards inherent in the
mining  business  (including  environmental  hazards,   industrial  accidents,
weather or geologically related conditions), (vi) the effects of environmental
and other  governmental  regulations,  and (vii)  the  risks  inherent  in the
ownership or operation of or investment in mining  properties or businesses in
foreign countries.


RESULTS OF OPERATIONS
- ---------------------
      Three Months Ended March 31, 1996 Compared to Three Months Ended
      March 31, 1995.
      ------------------------------------------------------------------------

SALES AND GROSS PROFITS

     Sales of concentrates and dore' in the first quarter of 1996 increased by
$4.7 million, or 26%, over the first quarter of 1995. The increase in sales is
primarily  attributable to an increase in gold and silver  production.  In the
first quarter of 1996,  the Company  produced  2,191,685  ounces of silver and
45,201 ounces of gold compared to 1,528,817 ounces of silver and 36,571 ounces
of gold in the first quarter of 1995.  Silver and gold prices  averaged  $5.54
and $400.14 per ounce,  respectively,  in the first quarter of 1996,  compared
with $4.70 and $379.10 per ounce, respectively, in the first quarter of 1995.

     The cost of mine  operations  in the first  quarter of 1996  increased by
$3.6 million, or 22%, over the prior year's comparable  quarter.  The increase
is primarily  due to an increase in gold and silver  production.  Gross profit
from mining operations in the first quarter of 1996 increased by $1.2 million,
or 63%, to $3.0  million  compared to gross profit from mining  operations  of
$1.8 million in the first quarter of 1995. Mine  operations  gross profit as a
percent of sales amounted to 13% in the first quarter of 1996, compared to 10%
in the first quarter of 1995. The  improvement in the gross profit  percentage
is  primarily  attributable  to higher  gold and silver  prices.  In the first
quarter of 1996,  the  Company  realized  gold and silver  prices of $5.57 and
$401.40,  respectively,  compared  with  average  market  prices  of $5.54 and
$400.14, respectively.

OTHER INCOME

     Interest and other income in the first  quarter of 1996  decreased by $.5
million,  or 19%, compared with the first quarter of 1995. The decrease is due
primarily  to a  decrease  in the  average  size  of the  Company's  cash  and
short-term  investment  portfolio during the first quarter of 1996 as compared
to the first quarter of 1995.

                                     -12-

<PAGE>


EXPENSES

     Total  expenses in the first  quarter of 1996  decreased  by $2.7 million
compared to the prior year's first quarter. The decrease is primarily due to a
decrease  in  interest  expense  of $2.3  million  which is the  result of the
Company's  underwritten call for redemption of $75 million principal amount of
7% Convertible  Subordinated  Debentures during the fourth quarter of 1995. In
addition,  accounting and legal expenses decreased by $.1 million, exploration
expense decreased by $.1 million and idle facilities  expense decreased by $.5
million.  Those decreases are partially offset by increases in  administrative
expenses of $.1 million and general corporate expenses of $.2 million.


NET INCOME (LOSS) FROM CONTINUING OPERATIONS

     The  Company's  income from  continuing  operations  before  income taxes
amounted to $.2 million in the first  quarter of 1996  compared to a loss from
continuing operations before income taxes of $3.2 million in the first quarter
of 1995.  The  Company  provided  $.1  million  for income  taxes in the first
quarter of 1996  compared with a provision of $.2 million in the first quarter
of 1995.  As a result,  the  Company  reported  a net income  from  continuing
operations  of $.1 million,  or $.01 per share,  in the first  quarter of 1996
compared to a net loss from continuing  operations of $3.4 million, or .21 per
share, in the first quarter of 1995. In the first quarter of 1995, the Company
also  reported  income  of $.2  million,  or  $.01  per  share,  arising  from
discontinued  operations.  As a result, the Company's net income for the first
quarter of 1996 is $.1 million, or $.01 per share, compared with a net loss of
$3.2 million, or $.20 per share, in 1995's first quarter.


LIQUIDITY AND CAPITAL RESOURCES

WORKING CAPITAL; CASH AND CASH EQUIVALENTS

     The Company's working capital at March 31, 1996 was approximately  $212.2
million  compared to $105.6 million at December 31, 1995. The ratio of current
assets to current  liabilities  was 10.2 to one at March 31, 1996  compared to
6.0 to one at December 31, 1995.

     Net cash  provided by operating  activities  in the first quarter of 1996
was $1.3 million compared to $3.3 million used in operating  activities in the
first  quarter of 1995.  Net cash used by  investing  activities  in the first
quarter  of 1996 was  $69.0  million  compared

                                     -13-
<PAGE>


to  $4.9  million  provided  by  investing  activities  in  the  prior  year's
comparable  period.  Net cash  provided by financing  activities  in the first
quarter of 1996 was $135.2 million,  compared to $4.0 million  provided in the
first  quarter of 1995.  As a result of the above,  cash and cash  equivalents
increased  by $67.4  million in the first  quarter of 1996  compared to a $5.6
million increase for the comparable period in 1995.

CONSTRUCTION OF THE FACHINAL MINE; CAPITALIZATION OF NET OPERATING LOSS

     In October  1995,  the Company  completed  construction  of the  Fachinal
mining  facilities.  The total cost of project  construction was approximately
$41.1  million.  On April 19, 1995, the Company  completed a limited  recourse
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 Mine,  contains various  covenants and
is dependent upon attainment of certain  completion  tests.  Furthermore,  the
Company is required to guarantee repayment of the borrowing until construction
of the project  reaches  defined  completion  after which the project alone is
liable for  repayment.  (The  agreement  requires  the project to  demonstrate
compliance  with certain ore throughput  and financial  covenants in order for
construction  to be  deemed  complete,  in  which  event  the  Company's  loan
guarantee is removed.) The interest  rate prior to completion of  construction
of the project was 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  completion  of  project  construction.  A net
operating  loss  of  approximately  $1.4  million  at the  Fachinal  Mine  was
capitalized  since the mine did not reach  commercial  production  during  the
first quarter of 1996. The Company has implemented a program which is designed
to rectify certain startup inefficiencies at Fachinal. The program consists of
increased  employee  training  and a review  and  optimization  of the  mining
methods and the overall mine plan.

PUBLIC OFFERING OF MARCS

     On March 8, 1996,  the  Company  completed  a public  offering  of $140.0
million of Mandatory Adjustable Redeemable Convertible Securities (MARCS). The
Company  issued  6,588,235  shares of MARCS  which  were  offered  at a public
offering  price of  $21.25  per  share.  Each  share  of MARCS is  mandatorily
convertible four years after issuance into 1.111 shares of Common Stock of the
Company,  subject to adjustment in certain events, unless earlier converted by
the holder into Common Stock or redeemed for Common Stock by the Company.  The
annual  dividend  payable  on the MARCS  will be  $1.488  per  share,  payable
quarterly.  On April 8, 1996, the Company sold an

                                     -14-

<PAGE>


additional  489,598 shares of MARCS to the  underwriters  as a result of their
exercise of an  overallotment  option  granted to them in connection  with the
public offering.  With the exercise of the overallotment  option,  the Company
has sold a total of 7,077,833  shares of MARCS for a total  offering  price of
$150.4  million  which  resulted  in net  proceeds  to the  Company  of $145.8
million.

ACQUISITIONS OF INTERESTS IN AUSTRALIAN GOLD MINING COMPANIES

     GASGOYNE.  As stated above, Coeur's Offer for outstanding Gasgoyne shares
expired on April 26, 1996.  Pursuant to the Offer,  which was conducted on the
basis of 7 Coeur  shares of Common  Stock plus A$96 in  exchange  for each 100
Gasgoyne shares,  Coeur issued a total of 1,419,832 shares of Common Stock and
paid a total of approximately  A$19.5 (or US$15.4 based on prevailing currency
exchange rates) to accepting  Gasgoyne  shareholders,  and acquired a total of
20,293,691 Gasgoyne shares constituting 35.4% of Gasgoyne's outstanding shares
(or 35.1% of Gasgoyne's  outstanding  shares and shares subject to outstanding
options).  Pursuant to the Sons of Gwalia offer for Gasgoyne  shares that also
expired on April 26, 1996, Sons of Gwalia acquired  35,159,497 Gasgoyne shares
constituting approximately 61.4% of Gasgoyne's outstanding shares (or 60.9% of
Gasgoyne's  outstanding  shares and shares  subject to  outstanding  options).
Coeur's  cash  payments  to  Gasgoyne  shareholders  were  financed  by a loan
facility with Rothschild  Australia  Limited,  which provides for a maximum of
US$50  million of  borrowings  at an annual  interest rate equal to LIBOR plus
1.5%.

     ORION. On January 24, 1996, at a cost of US$10.7 million,  Coeur acquired
from  Homestake  Mining  Company  ("Homestake")  5.5 million  shares of and an
option to acquire an additional 5.0 million shares of Orion held by Homestake.
(Earlier in January 1995 and in the last  quarter of 1994,  Coeur had acquired
3.3 million outstanding Orion shares for a total cost of approximately  US$3.8
million.) On March 26, 1996, Coeur exercised the options  previously  acquired
from  Homestake  for the  additional  5.0 million  Orion shares for a purchase
price of  US$3.8  million.  As a result  of the  above  acquisitions  of Orion
shares, which were funded by Coeur's own cash resources,  Coeur presently owns
approximately 19.2% of Orion's outstanding shares.

FEDERAL NATURAL RESOURCES ACTION

     On March 22,  1996,  an action  was filed in the United  States  District
Court for the District of Idaho (Civ. No.  96-0122-N-EJL) by the United States
against various defendants,  including the Company, asserting claims under the
Comprehensive Environmental Response,  Compensation, and Liability Act of 1980
and the Clean Water Act for alleged  damages to Federal  natural  resources in
the Coeur  d'Alene  River Basin of  northern  Idaho as a result of releases of
hazardous

                                     -15-

<PAGE>


substances from mining activities  conducted in the area since the late 1800s.
No specific  monetary  damages are  identified,  but the United States asserts
that the  defendants  are jointly and severally  liable for costs and expenses
incurred by the United States in  investigation,  removal and remedial  action
and the restoration or replacement of affected natural resources.  In 1986 and
1992 the Company had  settled  similar  issues with the State of Idaho and the
Coeur  d'Alene  Indian  Tribe,  respectively,  and  believes  that those prior
settlements and other factors exonerate it of further involvement with alleged
natural  resource  damage in the Coeur d'Alene River Basin.  Accordingly,  the
Company intends to vigorously  defend this matter and at an appropriate  stage
will seek to be  dismissed  from this  action.  At this  initial  stage of the
proceedings it is not possible to predict its ultimate outcome.

                                     -16-

<PAGE>


PART II.  Other Information.

ITEM 5.     OTHER INFORMATION

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

      (a)   EXHIBITS

            The following Exhibit is filed herewith:

            EXHIBIT NO.      DOCUMENT
                11           Statement    Regarding    Computation   of   Per
                             Share Earnings.

      (b)   REPORTS ON FORM 8-K

      The following  Current Reports on Form 8-K were filed during the quarter
      ended March 31, 1996:

           1.  In its Form 8-K  filed on  January  31,  1996,  as  amended  on
      February 15, 1996,  the Company  reported  under Item 5 thereof  certain
      information  relating to its  acquisition of (i) securities of Orion and
      (ii) an option to acquire  Gasgoyne  shares and  intention to conduct an
      offer for additional Gasgoyne shares.

           2.  The  Company's  Form 8-K filed on March 26,  1996 (i)  reported
      under  Item 5 thereof  that it had filed its Offer to  acquire  Gasgoyne
      shares and  related  Part A  Statement  with the  Australian  Securities
      Commission and Australian  Stock Exchange  Limited and (ii) filed copies
      of such documents as exhibits to the Form 8-K.

           3.  The Company's Form 8-K filed on March 27, 1996 disclosed  under
      Item 5 thereof  certain  information  relating to an action filed in the
      United  States  District  Court for the  District of Idaho by the United
      States against various  defendants,  including the Company,  for alleged
      Federal natural resources damages.

           4.  The Company's  Form 8-K filed on March 28, 1996 reported  under
      Item 5 thereof (i) an increase in the amount of the Company's  Offer for
      Gasgoyne shares and (ii) the Company's  acquisition of additional  Orion
      securities.

           On April 30, 1996,  the Company  filed a Form 8-K  reporting  under
      Item 2 thereof information relating to the expiration and results of the
      Company's Offer for outstanding  Gasgoyne shares.  Financial  statements
      and  pro  forma   financial   information   relating  to  the  Company's
      acquisition  of Gasgoyne

                                     -17-

<PAGE>


shares will be  furnished  by  amendment  to such Form 8-K  pursuant to Item 7
thereof.

                                     -18-
<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 14, 1996                        /s/ Dennis E. Wheeler
                                         -----------------------
                                         DENNIS E. WHEELER
                                         Chairman, President and
                                         Chief Executive Officer




Dated May 14, 1996                        /s/ James A. Sabala
                                         -----------------------
                                         JAMES A. SABALA
                                         Senior Vice President
                                        (Principal Financial and
                                         Accounting Officer)

                                     -19-


                   COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES

                                  EXHIBIT 11

<TABLE>
                 STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS



<CAPTION>
                                                     Three Months Ended
                                                           March 31,
                                                ----------------------------
                                                  1996                1995
                                                --------            --------
                                        (In thousands except per share amounts)

<S>                                              <C>                  <C>   
Average shares outstanding                       20,502               15,578
                                                ========            ========


  Income (Loss) from continuing operations     $    133             $ (3,367)
  Income from discontinued operations                                    192
                                                --------            ---------
  Net income (Loss)                                 133               (3,175)
                                               =========            =========

Per share amounts:
  Income (Loss) from continuing operations     $    .01             $   (.21)
  Income from discontinued operations                                    .01
                                               ---------            --------
      Net Income per share                     $    .01             $   (.20)
                                               =========            =========





Net income (Loss)                              $    133             $  3,175
  Less Preferred Dividends                          463
                                               ---------

  Net loss attributable to common
    shareholders                               $   (330)            $  3,175
                                               =========            =========


Per share amounts attributable to common:
  Net loss from continuing operations          $   (.02)            $   (.21)
  Income from discontinued operations                                    .01
                                               ---------            ---------
      Net loss per share attributable
        to common shareholders                 $   (.02)            $   (.20)
                                               =========            =========
</TABLE>


<TABLE> <S> <C>

<ARTICLE> 5
<CIK> 0000215466
<NAME> COEUR D'ALENE MINES CORPORATION
<MULTIPLIER> 1000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                          83,918
<SECURITIES>                                   100,393
<RECEIVABLES>                                   21,429
<ALLOWANCES>                                         0
<INVENTORY>                                     29,432
<CURRENT-ASSETS>                               235,202
<PP&E>                                         389,615
<DEPRECIATION>                                  75,468
<TOTAL-ASSETS>                                 578,521
<CURRENT-LIABILITIES>                           22,954
<BONDS>                                        150,000
                            6,588
                                          0
<COMMON>                                        21,524
<OTHER-SE>                                     342,361
<TOTAL-LIABILITY-AND-EQUITY>                   578,521
<SALES>                                         22,609
<TOTAL-REVENUES>                                24,540
<CGS>                                           19,596
<TOTAL-COSTS>                                   19,596
<OTHER-EXPENSES>                                 4,735
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 684
<INCOME-PRETAX>                                    209
<INCOME-TAX>                                        76
<INCOME-CONTINUING>                                133
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       133
<EPS-PRIMARY>                                      .01
<EPS-DILUTED>                                        0
        

</TABLE>



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