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 but improving cost position, limited reserve base, and 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. Coeur has undertaken several initiatives to improve its cost profile and bolster its reserve base. The company continues to lower its high average mining costs by more than offsetting high costs at its mature Rochester, Nev., and Galena, Idaho, mines with lower-cost production from its Cerro Bayo mine in Chile and
