“2009 was a defining year for Coeur. Our San Bartolomé silver mine completed its first full year of operations and we commenced production in Mexico at our large Palmarejo silver and gold mine. In addition, the U.S. Supreme Court reversed a lower court decision in June, which has allowed us to recommence final construction at our Kensington gold mine in Alaska where we expect production to begin in the third quarter,” said Coeur CEO Dennis Wheeler. “As we look ahead we expect another strong year of silver production, and we anticipate doubling our gold production, thanks to the first full year of production at Palmarejo and the expected third quarter start-up at Kensington.”

During 2009, Coeur produced a record total 17.7 million ounces of silver, or 47.3 percent more than the 12 million ounces produced in 2008. The company’s gold production totaled 72,112 ounces in 2009, compared with 46,115 ounces in 2008.

Coeur’s average cash operating costs from continuing operations were US$7.03 per ounce of silver in 2009.

Metal sales from continuing operations increased 76 percent in 2009 to US$300.6 million, compared with US$170.9 million in 2008. The company realized average prices of US$14.83 per ounce of silver and US$1,003 per ounce of gold sold in 2009.

Operating cash flow in 2009 reached US$64.5 million, compared with a loss of $7.4 million in 2008. 2009 capital expenditures totaled $219.1 million, with $162.8 million spent at Palmarejo and US$42.1 million incurred at Kensington.

On Feb. 5 Coeur announced the sale of US$100 million of senior unsecured notes, increasing the company’s current cash balance to about US$75 million.

Coeur reported a net loss of US$31.9 million, or US44 cents per share, for the full year 2009, compared to a net loss of US$600,000, or US 1 cent per share, in 2008. Included in the 2009 full year net loss was US$82.7 million, before tax, of non-cash mark-to-market adjustments the company is required to make each period primarily due to changes in metals prices.

Between existing cash and cash equivalents, unused availability under established credit facilities, and cash flow from operations during the year, Coeur said it is well-positioned to support its 2010 planned capital expenditures.

“Our three key objectives entering 2010 are to continue to optimize silver recoveries at Palmarejo in order to achieve design capacity; (return to full scale operations at San Bartolomé above the 4,400-meter level; and achieve planned gold production following startup of our Kensington gold mine,” Wheeler said.

Coeur said it is on schedule to begin operating at the Kensington gold mine in Southeast Alaska in the third quarter of this year. The company expects an estimated 40,000 ounces of gold production from Kensington in 2010.

Recent work has focused on further underground development in preparation for mine production, completion of the 120-bed workers camp, tailings pipeline installation, and tailings facility. Startup of the integrated systems in the plant is ongoing. Worker training and hiring continues.

Coeur expects 2010 capital expenditures to total about US$80 million to complete construction at Kensington.

Exploration drilling continues at Kensington, with a new vein system (Kimberly) targeted. Coeur drilled the first holes at Kimberly in 2009, and eight of 14 phase-one core holes intersected very significant gold mineralization.