Coeur Writes Down Australian Gold Mine

(From Business page, February 25, 2000): Clarification: Coeur d’Alene Mines net loss in 1999 was $38.9 million, after dividends to preferred shareholders. A number reported Wednesday was the loss before the dividend payments.

Coeur d’Alene Mines Corp. has taken a $16.2 million write-down on a western Australian gold mine.

The write-down reflects a reduction in the Yilgarn Star Mine’s book value, based on lower gold prices. Coeur d’Alene Mines owns a 25 percent interest in the mine.

The company reviewed the carrying value of all of its properties, based on long-term gold prices of $325 an ounce, not the $350 an ounce it previously used, said Mike Steeves, Coeur’s director of investor relations. Gold languished around $300 an ounce for most of 1999.

The Yilgarn Star also had a disappointing production year, with flooding and low ore grades reducing output, officials said.

Overall, Coeur d’Alene Mines reported a net loss of $28.3 million last year, compared with a net loss of $234.3 million in 1998, which included write-downs of three gold properties.

The company said it wants to increase silver production by 20 percent for the coming year, CEO Dennis Wheeler told analysts during a conference call.

Reaching the production target of 11.3 million ounces of silver would set a company record, he said.