The ratings on Idaho-based Coeur D'Alene Mines Corp. (Coeur) reflect its high business risk as a cyclical, capital-intensive, commodity-based company with a modest scope of operations. The ratings also reflect the company's very weak financial performance despite improved precious metal prices and challenges and uncertainties regarding the company's ability to continue its past practice of successfully developing new lower cost mining operations. Challenges include volatile prices, governmental regulation, environmental issues, permitting, and adverse geological conditions. Coeur's comparatively small position as a precious metals company has resulted in high operating variability and volatile earnings and cash flows. Expected production levels in 2003 of 14.6 million ounces of silver and 112,000 ounces of gold will only generate revenues modestly in excess of
