More Kensington-related woes

Posted by Elizabeth Bluemink

Posted: November 13, 2008 - 4:11 pm

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The Idaho-based company attempting to develop the Kensington mine is facing some serious financial challenges.

Coeur d'Alene Mines Corp. has been losing millions of dollars for the past two quarters. It recently laid off about half of its work force at the Kensington project, though it didn't blame financial problems. Coeur said the decision was caused by a delay imposed by federal regulators who demanded that the company create a new tailings disposal alternative. (The regulators say they weren't asking for a new alternative, just a few modifications.)

Today, Coeur received a warning from the New York Stock Exchange that its share price had fallen below the amount required to maintain its listing on the exchange.

Here's the company's response:

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COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Nov. 13, 2008--Coeur d'Alene Mines Corporation (NYSE:CDE)(TSX:CDM)(ASX:CXC) today announced that it has received notice from the New York Stock Exchange ("NYSE") that the Company has fallen below the NYSE's continued listing standard relating to minimum share price. This standard requires that a company's common stock trade at a minimum average closing share price of $1.00 during any consecutive 30-day trading period. The Company has notified the NYSE that it intends to comply with the price condition.

"We continue to believe that Coeur is well positioned to capitalize on the significant growth projects that are now in the process of coming on-line," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. "With production at our San Bartolome silver mine in Bolivia now reaching full capacity and our Palmarejo silver-gold project in Mexico on-budget and on-schedule for a March 2009 start up, we expect to produce significantly more silver and gold over the coming months at lower cost than we have in the past. The expected additional revenue combined with other corporate initiatives aimed at streamlining costs will put the Company on a strong footing and help it satisfy the NYSE price condition."

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