The ratings on Coeur D'Alene Mines Corp. reflect its high business risk as a capital-intensive commodity-based company with a modest scope of operations, relatively high cost position, limited reserve base (averaging about three years), and a very weak financial performance. Ratings also incorporate the company's aggressive expansion plans and uncertainties regarding its ability to successfully develop lower-cost mining operations. Meaningful challenges include volatile prices, governmental regulation, environmental issues, permitting, and adverse geological conditions. The majority (currently about 2/3) of Coeur's production is generated at its high-cost Rochester, Nev. and Galena, Idaho mines. Coeur has undertaken several initiatives to improve its cost profile and bolster its reserve base. New lower-cost production from its Cerro Bayo mine in Chile and its Martha
