SECURITIES AND EXCHANGE
Washington, D. C.
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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
June 30, 1997.
COEUR D'ALENE MINES CORPORATION
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(Exact name of registrant as specified on its charter)
IDAHO 1-8641 82-0109423
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(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File Number: Ident.No.)
505 Front Avenue
P. O. Box I, Coeur d'Alene, Idaho 83816-0316
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(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code: (208) 667-3511
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The undersigned registrant hereby amends the following item of its
Quarterly Report on Form 10-Q for the quarter ended June 30, 1997, as set
forth in the pages attached hereto:
Part 1 - Item 1 (Financial Statements)
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, thereby duly authorized.
COEUR D'ALENE MINES CORPORATION
Date: September 10, 1997 By:/s/JAMES A. SABALA
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James A. Sabala
Senior Vice President and
Chief Financial Officer
<PAGE>
AMENDMENT NO. 1 TO QUARTERLY REPORT ON 10-Q FOR
THE QUARTER ENDED JUNE 30, 1997
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Coeur d'Alene Mines Corporation (the "Company") hereby amends its
Quarterly Report on Form 10-Q for the quarter ended June 30, 1997. The
$48,231,000 "investment in unconsolidated affiliate" listed under "Other
Assets" on page 3 appeared in the wrong column of the balance sheet in the
Form 10-Q as originally filed. That amount is correctly set forth under the
December 31, 1996 column in this amendment.
<PAGE>
COEUR D'ALENE MINES CORPORATION
<TABLE>
INDEX
<CAPTION>
Page No.
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<S> <C>
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -- 3-4
June 30, 1997 and December 31, 1996
Consolidated Statements of Operations -- 5
Six Months Ended June 30, 1997 and 1996
Consolidated Statements of Cash Flows -- 6
Six Months Ended June 30, 1997 and 1996
Notes to Consolidated Financial Statements 7-8
</TABLE>
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<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
UNAUDITED
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
<TABLE>
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, December 31,
1997 1996
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(In Thousands)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 60,261 $ 43,455
Short-term investments 77,875 124,172
Receivables 11,237 11,573
Inventories 35,976 31,992
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TOTAL CURRENT ASSETS 185,349 211,192
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 119,354 118,993
Less accumulated depreciation 55,094 50,743
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64,260 68,250
MINING PROPERTIES
Operational mining properties 236,449 171,517
Less accumulated depletion 48,552 38,264
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187,897 133,253
Developmental properties 126,634 110,985
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314,531 244,238
OTHER ASSETS
Investment in unconsolidated affiliate 48,231
Notes receivable 8,605 4,000
Debt issuance costs, net of accumulated
amortization 3,769 4,081
Marketable equity securities and other 2,257 338
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14,631 56,650
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$578,771 $580,330
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</TABLE>
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<PAGE>
UNAUDITED
<TABLE>
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, December 31,
1997 1996
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(In Thousands)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 6,945 $ 4,327
Accrued liabilities 5,981 4,976
Accrued interest payable 3,536 4,968
Accrued salaries and wages 5,363 5,242
Bank loans 8,932 8,021
Current portion of remediation costs 8,500 3,500
Other current liabilities 407 532
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TOTAL CURRENT LIABILITIES 39,664 31,566
LONG-TERM LIABILITIES
6% subordinated convertible debentures 49,840 49,840
6 3/8% subordinated convertible debentures 100,000 100,000
Long-term borrowings 41,724 39,900
Other long-term liabilities 8,836 12,826
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TOTAL LONG-TERM LIABILITIES 200,400 202,566
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Mandatory Adjustable Redeemable Convertible Securities (MARCS), par value
$1.00 per share,(a class of preferred stock) authorized 7,500,000 shares,
7,077,833
issued and outstanding 7,078 7,078
Common Stock, par value $1.00 per share-authorized 60,000,000 shares,
issued 22,950,182 shares (including 1,059,211
shares held in treasury) 22,950 22,950
Capital surplus 394,921 400,187
Accumulated deficit (72,454) (70,459)
Unrealized losses on short-term
investments (598) (352)
Repurchased and nonvested shares (13,190) (13,206)
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338,707 346,198
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$578,771 $580,330
========= =========
</TABLE>
See notes to consolidated financial statements.
-4-
<PAGE>
UNAUDITED
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
Three Months Ended June 30, 1997 and 1996 Six Months Ended
June 30, 1997 and 1996
<CAPTION>
3 MONTHS ENDED 6 MONTHS ENDED
JUNE 30 JUNE 30
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1997 1996 1997 1996
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(In thousands except for per share data)
<S> <C> <C> <C> <C>
INCOME
Sales of concentrates and dore' $ 33,659 $ 18,752 $ 58,129 $ 41,361
Less cost of mine operations 35,508 18,546 62,574 38,142
---------- ---------- ---------- ----------
Gross Profit (Loss) (1,849) 206 (4,445) 3,219
OTHER INCOME
Interest and other 9,780 2,223 17,586 4,154
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Total Income 7,931 2,429 13,141 7,373
EXPENSES
Administration 1,212 967 2,339 2,055
Accounting and legal 463 369 885 643
General corporate 1,934 1,750 3,555 3,400
Interest 2,087 776 4,348 1,460
Mining exploration 2,512 1,656 4,011 2,695
Write down of mining
properties 54,382 54,382
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Total Expenses 8,208 59,900 15,138 64,635
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NET LOSS FROM CONTINUING
OPERATIONS BEFORE TAXES (277) (57,471) (1,997) (57,262)
Income tax benefit 2 590 2 514
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NET LOSS $ (275) $(56,881) $ (1,995) $ (56,748)
========== ========== ========== ==========
NET LOSS ATTRIBUTABLE TO
COMMON SHAREHOLDERS $ (2,908) $(59,549) $ (7,261) $(59,879)
========== ========== ========== ==========
EARNINGS PER SHARE DATA Earnings per share data:
Weighted average number
of shares of Common Stock
and equivalents used in
calculation 21,891 21,620 21,891 21,043
========== ========== ========== ==========
Net Loss Per Share $ (.01) $ (2.63) $ (.09) (2.70)
========== ========== ========== ==========
Net Loss per share
attributable to Common Shareholders $ (.13) $ (2.75) $ (.33) $ (2.85)
========== ========== ========== ==========
</TABLE>
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<PAGE>
UNAUDITED
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
Six months ended June 30, 1997 and 1996
<CAPTION>
1997 1996
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(In Thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (1,995) $ (56,748)
Add (less) noncash items:
Depreciation, depletion and amortization 13,455 5,521
Loss on disposition of assets 54,301
Other changes 1,324 (100)
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CASH PROVIDED BY OPERATING ACTIVITIES BEFORE
WORKING CAPITAL CHANGES 12,824 2,974
Change in working capital:
Receivables 2,717 (227)
Inventories (3,157) 1,090
Accounts payable and accrued liabilities (4,074) (3,786)
Interest payable (1,432) (1,194)
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CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 6,878 (1,143)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in mining company (14,643) (18,629)
Purchase of property, plant, and equipment (1,264) (1,727)
Purchase of short-term investments (54,790) (114,973)
Proceeds from sales of marketable securities 100,675 33,959
Expenditures on developmental properties (6,758) (5,851)
Expenditures on operational mining properties (8,383) (19,988)
Proceeds from sale of discontinued operations 1,420
Other assets 814 115
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NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 15,651 (125,674)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from MARCS issuance 144,644
Proceeds from bank loans 18,900
Retirement of obligations under capital leases (1,077)
Payment of cash dividends (5,266) (5,762)
Other (457)
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NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (5,723) 156,705
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INCREASE IN CASH AND CASH EQUIVALENTS 16,806 29,888
Cash and cash equivalents at beginning of year 43,455 16,485
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CASH AND CASH EQUIVALENTS AT
JUNE 30, 1997 AND 1996 $ 60,261 $ 46,373
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</TABLE>
See notes to consolidated financial statements.
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<PAGE>
Coeur d'Alene Mines Corporation
and Subsidiaries
Notes to Consolidated Financial Statements
NOTE A: Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the three- and
six-month periods ended June 30, 1997 are not necessarily indicative of the
results that may be expected for the year ended December 31, 1997. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Coeur d'Alene Mines Corporation annual report on Form
10-K for the year ended December 31, 1996.
NOTE B: Inventories are comprised of the following:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1997 1996
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(In Thousands)
<S> <C> <C>
In process and on leach pads $ 20,175 $ 19,948
Concentrate inventory 5,152 4,996
Dore' inventory 4,839 739
Supplies 5,810 6,309
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$ 35,976 $ 31,992
========= ========
</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
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<PAGE>
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 C:
On June 6, 1997, the Company acquired, for approximately US$14.6 million
in cash, an additional 14% interest in Gasgoyne Gold Mines NL of Australia,
increasing its total ownership to 50%. The acquisition has been accounted for
as a purchase. Effective June 6, 1997, the investment in Gasgoyne will be
accounted for on a proportionate consolidation basis.
NOTE D:
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings Per Share, which is required to be adopted in the
fourth quarter of 1997. At that time, the Company will be required to change
the method currently used to compute earnings per share and to restate all
prior periods. Under the new requirements for calculating primary earnings per
share, the dilutive effect of stock options will be excluded. Adoption of the
standard would have had no effect on the net loss per share for the
three-month period ended June 30, 1997 and the six-month period ended June 30,
1996. The Company has not yet determined what the impact of Statement 128 will
be on the calculation of fully diluted earnings per share.
NOTE E:
The Company has not recorded an income tax benefit for the three- and
six-month periods ended June 30, 1997 as it is currently not assured of the
realizability of operating loss carryforwards. The related deferred tax asset
has been fully reserved.
NOTE F:
Certain reclassifications of prior year balances have been made to
conform to current year classifications.
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