Filed by Coeur d’Alene Mines Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Coeur d’Alene Mines Corporation
Commission File No.:001-08641
The following is an excerpted portion of an investor relations presentation presented during an investor conference call held by Coeur d’Alene Mines Corporation (“Coeur”) on February 21, 2013.
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Additional Information and Where to Find It
This presentation relates to Coeur’s proposed acquisition (the “Transaction”) of Orko Silver Corp. Shares of Coeur’s common stock (the “Coeur Shares”) issuable upon (i) the exercise of warrants (the “Warrants”) to acquire Coeur Shares to be issued by Coeur in connection with the proposed Transaction and (ii) the exchange of exchangeable securities (the “Exchangeable Shares”) to be issued by a subsidiary of Coeur in connection with the proposed Transaction which may be registered pursuant to a registration statement on Form S-1 to be filed with the SEC or issued pursuant to an available exemption. This information is not a substitute for any registration statement or any other document that Coeur may file with the SEC or send to its shareholders in connection with the offer and/or issuance of Coeur Shares in connection with the exercise of the Coeur Warrants and exchange of the Exchangeable Shares. Investors who may receive Coeur Warrants or Exchangeable Shares in the Transaction are urged to read Coeur’s registration statement on Form S-1, if and when filed, including the prospectus, and all other relevant documents that may be filed with the SEC as and if they become available because they will contain important information about the issuance of Coeur Shares upon the exercise of any Coeur Warrants and exchange of any Exchangeable Shares. All documents, if and when filed, will be available free of charge at the SEC’s website (www.sec.gov). You may also obtain these documents by contacting Coeur’s Investor Relations department at Coeur D’Alene Mines Corporation; Investor Relations; (208) 665-0345; wyang@coeur.com. The following document does not constitute an offer to sell or the solicitation of an offer to buy any securities.
Fourth Quarter and Year-End 2012 Financial Results
COEUR
COEUR D’ALENE MINES CORPORATION
NYSE: CDE |
TSX: CDM
February 21, 2013
Cautionary Statement
COEUR
COEUR D’ALENE MINES CORPORATION
This presentation contains numerous forward-looking statements relating to Coeur’s silver and gold mining business, including estimated production data, expected operating schedules, results of operations, ore reserves and resources, expected capital costs and other expected operating data, share repurchases and permit and other regulatory approvals. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “will,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual production, operating schedules, results of operations, ore reserves and resources, capital costs and permit and regulatory approvals could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those in the forward-looking statements include: (i) the risk factors set forth in Coeur’s reports on Form 10-K and Form 10-Q; (ii) risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions); (iii) changes in the market prices of gold and silver; (iv) uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays and disputed mining claims; (v) any future labor disputes or work stoppages; (vi) uncertainties inherent in the estimation of gold and silver ore reserves; (vii) changes that could result from Coeur’s future acquisition of new mining properties or businesses; (viii) reliance on third parties to operate certain mines where Coeur owns silver production and reserves; (ix) the loss of any third-party smelter to which Coeur markets silver and gold; (x) effects of environmental and other governmental regulations; (xi) risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries; (xii) the worldwide economic downturn and difficult conditions in the global capital and credit markets; and (xiii) Coeur’s possible inability to raise additional financing necessary to conduct its business, make payments or refinance its debt. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
Donald J. Birak, Coeur’s Senior Vice President of Exploration and a qualified person under Canadian National Instrument 43-101, supervised the preparation of the scientific and technical information concerning Coeur’s mineral projects in this presentation. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur’s properties as filed on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “measured,” “indicated,” “inferred”, and “resources” that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our most recent Form 10-K and Form 10-Q which may be obtained from us, or from the SEC’s website at http://www.sec.gov.
Non-U.S. GAAP Measures – We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including cash operating costs, operating cash flow, adjusted earnings, and EBITDA. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We believe operating cash flow, cash operating costs, adjusted earnings, and EBITDA are important measures in assessing the Company’s overall financial performance.
NYSE: CDE | TSX: CDM
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COEUR
COEUR D’ALENE MINES CORPORATION
Acquisition of Orko Silver
An Attractive Asset
Orko’s key asset, the La Preciosa project, is one of the largest undeveloped silver deposits in the world
Long-life mine potential with compelling economics assuming open pit mine plan
Large-scale development opportunity with significant exploration upside
Mining friendly jurisdiction with well-developed local infrastructure
Good Strategic Fit
Further diversifies Coeur’s portfolio by jurisdiction and across a larger platform of assets
Proven ability to develop large-scale, world class projects similar to La Preciosa
Once developed, La Preciosa is expected to deliver significant growth to all Coeur shareholders
Roadmap to Completion
Circular to be mailed to Orko shareholders
Obtain requisite regulatory approvals
Obtain Orko shareholder approval
Expected closing of the transaction—April 2013
Solidifies Coeur’s position as a leading growth-oriented silver producer
NYSE: CDE | TSX: CDM
33
COEUR
COEUR D’ALENE MINES CORPORATION
La Preciosa Key Inputs
Mining costs of US$1.45/t
Processing costs of US$17.25/t
Open pit cutoff grade of 25 silver g/t
Total open pit mineral silver resource estimate:
Indicated: 29.6 million tonnes @ 104 g/t = 99m ounces
Inferred: 47.7 million tonnes @86 g/t = 132m ounces
Average mill recoveries of 88% and 78% for silver and gold, respectively
Source: Mining Plus La Preciosa Silver Deposit, Updated Mineral Resource Estimate Statement for Orko Silver. Effective Date: November 5, 2012
NYSE: CDE | TSX: CDM 34
COEUR
COEUR D’ALENE MINES CORPORATION
La Preciosa Key Inputs
Coeur’s Assumptions
10,000 tpd leach processing facility
Estimated capital expenditures:
Initial: $300 - $500 million
LOM Sustaining: $60 - $90 million
Estimated LOM strip ratio: 14:1
Average estimated annual production
7-9 million ounces
Estimated mine life: 19 years
Source: Company assumptions; benchmarking/market studies
NYSE: CDE | TSX: CDM 35
Anticipated Timetable/Next Steps
COEUR
COEUR D’ALENE MINES CORPORATION
PEA/43-101 Technical Report: 2Q 2013
Feasibility Study: 2014
Construction: 2015/2016
Expected Initial Production: 2H 2016
NYSE: CDE | TSX: CDM 36
COEUR
COEUR D’ALENE MINES CORPORATION
Contact Information
Head Office:
Main Tel: Tickers: Website:
Coeur d’Alene Mines Corporation
505 Front Avenue
Coeur d’Alene, Idaho 83816-0316
(208) 667-3511 CDE: NYSE; CDM: TSX www.coeur.com
Wendy Yang
Vice President, Investor Relations wyang@coeur.com (208) 665-0345
Stefany Bales
Director of Corporate Communications sbales@coeur.com (208) 659-0974
NYSE: CDE | TSX: CDM 61