Broken Hill (Australia)
The Broken Hill Mine is located in western New South Wales, Australia. On September 5, 2005, Coeur acquired all of the silver production and reserves, up to a maximum number of ounces, contained at the Broken Hill Mine, which is owned and operated by Perilya Broken Hill Ltd. for $36.9 million.
On July 16, 2009, Coeur announced it has agreed to sell back to Perilya Limited its 100% interest in the silver contained at the Broken Hill mine in Australia for US$55.0 million in cash. Coeur originally purchased this interest from Perilya in September 2005 for $36.9 million.
Since completion of the original transaction in 2005, Coeur has received a total of more than 6.1 million ounces of payable silver from the Broken Hill mine. As of March 31, 2009, CDE Australia had recovered approximately 127.1% of the original consideration.
As a result of this transaction, the Company expects to realize a gain on the sale of assets in the third quarter of approximately $23.2 million, net of income taxes.
Broken Hill Performance 2009 first quarter 2008 2007 2006 2005 partial year
Net Sales of Metal 4,709,000 18,591,000 20,602,000 23,791,000 4,432,000
Profit 3,179,000 13,331,000 14,256,000 14,307,000 3,615,000
All values in $ USD
