SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------
FORM 10-Q/A No. 1
Pursuant to Section 13 or 15 (d) of the
Securities and Exchange Act of 1934
Amendment No. 1 to Quarterly Report on Form 10-Q for the quarter
ended March 31, 1996
COEUR D'ALENE MINES CORPORATION
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(Exact name of Registrant as specified in its charter)
Idaho 1-8641 82-0109423
-------------------------------- ------------ -------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation or organization File Number) Identification No.)
505 Front Avenue, P.O. Box "I"
Coeur d'Alene, Idaho 83814
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (208) 667-3511
The undersigned registrant hereby corrects the reported number of issued
shares of Common Stock in the Stockholders' Equity section of the Consolidated
Balance Sheet on page 4 of its Quarterly Report on Form 10-Q for the quarter
ended March 31, 1996, included under the following Item:
Item 1 - Financial Statements - Consolidated Balance Sheets
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereto duly authorized.
COEUR D'ALENE MINES CORPORATION
Date: May 14, 1996 By: /s/JAMES A. SABALA
-------------------------
James A. Sabala
Senior Vice President and
Chief Financial Officer
<PAGE>
On page 4 of the Quarterly Report on Form 10-Q of Coeur d'Alene Mines
Corporation for the quarter ended March 31, 1996, the Common Stock caption
under Shareholders' Equity erroneously stated that there were issued
16,655,051 and 16,633,163 shares at March 31, 1996 and December 31, 1995,
respectively. The correct number of shares of Common Stock issued as of both
dates is 21,524,093 shares. The dollar amounts set forth in the March 31, 1996
and December 31, 1995 columns are correct.
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<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>
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<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
21,524,093 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>
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<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>
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<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>
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<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>
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<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
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<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.
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