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, limited reserve base, and political and operating risk at some of its operations. Ratings also incorporate the company's aggressive expansion plans and uncertainties about successfully developing its planned 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 has sold its highest-cost mine, the Coeur Silver Valley mine in Galena, Idaho, and has been acquiring and developing lower-cost mines to increase its reserve base. Most recently, the company has announced its merger with
