SEC Comment Letter for Coeur Mining, Inc. (CDE) (CIK 0000215466) (CDE) — Nov 28, 2012
Coeur Mining, Inc. (CDE) (CIK 0000215466)
Date: Nov. 28, 2012 · CIK: 0000215466 · Accession: 0000000000-12-064305
AI Filing Summary & Sentiment
Reasoning
Letter
November 28, 2012 Via E -mail Mr. Mitchell J. Krebs Chief Executive Officer Coeur d’Alene Mines Corporation 505 Front Avenue Coeur d’Alene, I D 83814
Re: Coeur d’Alene Mines Corporation Form 10 -K for Fiscal Year Ended December 31, 2011 Filed February 23, 2012 File No. 001 -08641
Dear Mr. Krebs :
We have reviewed your filing and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.
Please respond to this letter within ten business days by amending your filing, by providing the requested information , or by advising us when you will provide the requested response. If you do not believe our comments apply to your facts and circumstances, or do not believe an amendment is appropriate, please tell us why in your response.
After reviewing any amendment to your filing and the information you provide in response to these comments, we may have additional comments.
Form 10 -K for Fiscal Year Ended December 31, 2011
Silver and Gold Mining Properties, page 19 USA – Nevada -Rochester Mine, page 28
1. We note you disclose 53 unpatente d mining claims which were subject to lease agreements at your Rochester mining operations. Please disclose the present status of these mining claims, whether there are any legal disputes with the owners, and also provide to us courtesy copies of these mi ning claim lease agreements .
2. Please describe the preliminary injunction boundary separating your mining operations from Rye Patch mining claims and explain how this boundary was determined. Please discuss the purpose this boundary serves and whether it h as any effect on your mining
Mr. Mitchell J. Krebs Coeur d’Alene Mines Corporation November 28, 2012 Page 2
operations in the short and/or long term. Please include a map of your claim dispute property map with your filing .
3. Please identify and disclose any constraints on your present mining operations due to your Rochester mining c laim litigation. Please disclose any changes to your BLM - approved Plan of Operation in the short term due to this challenge in the unpatented claim ownership. Please disclose any leach and/or waste dumps restrictions in the short and/or long term and an y potential fees for adverse land use .
4. In the event you are not successful with your Rochester mining claim litigation, please describe the effects and/or costs to your present mining operations, mine life, and exploration activities .
5. Please explain any major changes to your mining operations from your permitted plan of operations as approved by BLM. Please disclose whether you have access to all your facilities and infrastructure. Please provide an estimate of the permitting modification duration, cost , and other challenges due to this litigation .
Year End Mineralized Material – Rochester Mine, page 30
6. Please modify your filing and disclose the tonnage and grade of the mineralized material affected by your claim dispute .
Management’s Discussion and Analysis of Financial Condition and Results of Operations , page Results of Operations - Year Ended December 31, 2011 Compared to Year Ended December 31, 2010 , page 56
Revenues, page 56
7. We note you account for gold sales from your silver mines as by -product revenue. Please tell us the following:
Identify each mine for which gold sales are accounted for as a by -product;
on a mine -by-mine basis, what amount and percentage of revenues were derived f rom gold, silver and other metals for 2011 and the nine months ended September 30, 2012; and
why you believe by -product accounting is appropriate and the point at which you would consider co -product accounting to be more appropriate.
Mr. Mitchell J. Krebs Coeur d’Alene Mines Corporation November 28, 2012 Page 3
Notes to Consolidate d Financial Statements , page F -8 Note 21 — Litigation and Other Events , page F -46 Unpatented Mining Claims Dispute at Rochester in Nevada, page F -47
8. We note you disclose that your inadvertent failure to pay annual mining claim maintenance fees resulted in a dispute regarding certain claims. In regard to these developments, please tell us the following:
the net amount of capitalized property, plant, equipment and development costs located on those disputed claims as of December 31, 2011 and September 30, 2012;
whether you believe the likelihood of a loss or impairment of assets is remote, reasonably possible or probable pursuant to FASB ASC 450 -20; and
whether you considered the lapse in the disputed claims to be a triggering event for impairment testing pursuant to FASB ASC 360 -10-35-21, and if so, provide us with the results of your impairment testing.
9. We note that an estimated 26% of measured and indicated resources and 41% of inferred resources of the Rochester mine are located within the disputed claims. In this regard, please tell us whether the loss of these claims would affect either your undiscounted cash flows used to test the asset for recoverabilit y or the discounted cash flows used to measure the asset’s fair value including whether the cash flows associated with value beyo nd proven and probable reserves in estimates of future cash flows used for determining whether your Rochester assets are impair ed. Refer to FASB ASC 930 -360- 35-1.
We urge all persons who are responsible for the accuracy and adequacy of the disclosure in the filing to be certain that the filing includes the information the Securities Exchange Act of 1934 and all applicable Exch ange Act rules require. Since the company and its management are in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made.
In responding to our comments, please pr ovide a written statement from the company acknowledging that:
the company is responsible for the adequacy and accuracy of the disclosure in the filing;
staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and
Mr. Mitchell J. Krebs Coeur d’Alene Mines Corporation November 28, 2012 Page 4
the company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.
You may contact James Giugliano at (202) 551 -3319, or Brian Bhandari at (202) 551 - 3390, if you have questions regarding comments on the financial statements and related matters. You may contact George Schuler, Mining Engineer, at (202) 551 -3718 with questions about engineering comments. Please contact me at (202) 551 -3871 with any other questions.
Sincerely,
/s/Tia L. Jenkins
Show Raw Text
November 28, 2012
Via E -mail
Mr. Mitchell J. Krebs
Chief Executive Officer
Coeur d’Alene Mines Corporation
505 Front Avenue
Coeur d’Alene, I D 83814
Re: Coeur d’Alene Mines Corporation
Form 10 -K for Fiscal Year Ended December 31, 2011
Filed February 23, 2012
File No. 001 -08641
Dear Mr. Krebs :
We have reviewed your filing and have the following comments. In some of our
comments, we may ask you to provide us with information so we may better understand your
disclosure.
Please respond to this letter within ten business days by amending your filing, by
providing the requested information , or by advising us when you will provide the requested
response. If you do not believe our comments apply to your facts and circumstances, or do not
believe an amendment is appropriate, please tell us why in your response.
After reviewing any amendment to your filing and the information you provide in
response to these comments, we may have additional comments.
Form 10 -K for Fiscal Year Ended December 31, 2011
Silver and Gold Mining Properties, page 19
USA – Nevada -Rochester Mine, page 28
1. We note you disclose 53 unpatente d mining claims which were subject to lease
agreements at your Rochester mining operations. Please disclose the present status of
these mining claims, whether there are any legal disputes with the owners, and also
provide to us courtesy copies of these mi ning claim lease agreements .
2. Please describe the preliminary injunction boundary separating your mining operations
from Rye Patch mining claims and explain how this boundary was determined. Please
discuss the purpose this boundary serves and whether it h as any effect on your mining
Mr. Mitchell J. Krebs
Coeur d’Alene Mines Corporation
November 28, 2012
Page 2
operations in the short and/or long term. Please include a map of your claim dispute
property map with your filing .
3. Please identify and disclose any constraints on your present mining operations due to
your Rochester mining c laim litigation. Please disclose any changes to your BLM -
approved Plan of Operation in the short term due to this challenge in the unpatented
claim ownership. Please disclose any leach and/or waste dumps restrictions in the short
and/or long term and an y potential fees for adverse land use .
4. In the event you are not successful with your Rochester mining claim litigation, please
describe the effects and/or costs to your present mining operations, mine life, and
exploration activities .
5. Please explain any major changes to your mining operations from your permitted plan of
operations as approved by BLM. Please disclose whether you have access to all your
facilities and infrastructure. Please provide an estimate of the permitting modification
duration, cost , and other challenges due to this litigation .
Year End Mineralized Material – Rochester Mine, page 30
6. Please modify your filing and disclose the tonnage and grade of the mineralized material
affected by your claim dispute .
Management’s Discussion and Analysis of Financial Condition and Results of Operations , page
45
Results of Operations - Year Ended December 31, 2011 Compared to Year Ended December 31,
2010 , page 56
Revenues, page 56
7. We note you account for gold sales from your silver mines as by -product revenue. Please
tell us the following:
Identify each mine for which gold sales are accounted for as a by -product;
on a mine -by-mine basis, what amount and percentage of revenues were derived f rom
gold, silver and other metals for 2011 and the nine months ended September 30,
2012; and
why you believe by -product accounting is appropriate and the point at which you
would consider co -product accounting to be more appropriate.
Mr. Mitchell J. Krebs
Coeur d’Alene Mines Corporation
November 28, 2012
Page 3
Notes to Consolidate d Financial Statements , page F -8
Note 21 — Litigation and Other Events , page F -46
Unpatented Mining Claims Dispute at Rochester in Nevada, page F -47
8. We note you disclose that your inadvertent failure to pay annual mining claim
maintenance fees resulted in a dispute regarding certain claims. In regard to these
developments, please tell us the following:
the net amount of capitalized property, plant, equipment and development costs
located on those disputed claims as of December 31, 2011 and September 30, 2012;
whether you believe the likelihood of a loss or impairment of assets is remote,
reasonably possible or probable pursuant to FASB ASC 450 -20; and
whether you considered the lapse in the disputed claims to be a triggering event for
impairment testing pursuant to FASB ASC 360 -10-35-21, and if so, provide us with
the results of your impairment testing.
9. We note that an estimated 26% of measured and indicated resources and 41% of inferred
resources of the Rochester mine are located within the disputed claims. In this regard,
please tell us whether the loss of these claims would affect either your undiscounted cash
flows used to test the asset for recoverabilit y or the discounted cash flows used to
measure the asset’s fair value including whether the cash flows associated with value
beyo nd proven and probable reserves in estimates of future cash flows used for
determining whether your Rochester assets are impair ed. Refer to FASB ASC 930 -360-
35-1.
We urge all persons who are responsible for the accuracy and adequacy of the disclosure
in the filing to be certain that the filing includes the information the Securities Exchange Act of
1934 and all applicable Exch ange Act rules require. Since the company and its management are
in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy
and adequacy of the disclosures they have made.
In responding to our comments, please pr ovide a written statement from the company
acknowledging that:
the company is responsible for the adequacy and accuracy of the disclosure in the filing;
staff comments or changes to disclosure in response to staff comments do not foreclose
the Commission from taking any action with respect to the filing; and
Mr. Mitchell J. Krebs
Coeur d’Alene Mines Corporation
November 28, 2012
Page 4
the company may not assert staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United States.
You may contact James Giugliano at (202) 551 -3319, or Brian Bhandari at (202) 551 -
3390, if you have questions regarding comments on the financial statements and related matters.
You may contact George Schuler, Mining Engineer, at (202) 551 -3718 with questions about
engineering comments. Please contact me at (202) 551 -3871 with any other questions.
Sincerely,
/s/Tia L. Jenkins
Tia L. Jenkins
Senior Assistant Chief Accountan t
Office of Beverages, Apparel, and
Mining