Martha (Argentina)
Coeur owns, either directly or indirectly, 100% of the capital stock of Coeur Argentina S.R.L., which owns and operates the underground high-grade silver Martha mine located in Santa Cruz, Argentina. Mining operations commenced at the Martha mine in June 2002. In 2007, the Company built a stand-alone mill to process ore from the Martha mine which previously was transported to its Cerro Bayo mine for processing. The Company carries on an active exploration program at its Martha mine and on its other land in Santa Cruz, which totals over 560 square miles.
Production at the Martha mine in 2008 was approximately 2.7 million ounces of silver and 3,313 ounces of gold compared to 2.7 million ounces of silver and 4,127 ounces of gold in 2007. Cash cost per ounce of silver produced was $7.57 in 2008 compared to $6.27 in 2007. The increase in total cash costs per ounce was primarily due to an increase in labor and operating supplies and mill start-up related costs in 2008.
Total capital expenditures at the Martha mine in 2008 were $4.5 million and the Company plans approximately $1.6 million of additional capital expenditures there in 2009.
Since purchasing Martha for $2.5 million in 2002, we have produced over 15 million silver ounces and have steadily increased the mine’s proven and probable silver ore reserves through continued exploration. In 2008, a standalone mill was completed at Martha to capitalize on the growing reserve and resource base. Previously, ore had been trucked to Cerro Bayo for processing.
In 2009, we are continuing exploration for the discovery of new mineralization and reserve development across our large land holdings in the province of Santa Cruz, which totals over 568 square miles.
| Stage | Production |
| Location | Southern Argentina |
| Type | Underground |
| Metals Produced | Silver |
| Product | Silver concentrate |
The new 260 ton per day mill is now operating efficiently, which should result in higher production levels and lower costs per ounce.
Historical Financial Data
| 2003 | 2004 | 2005 | 2006 | 2007 | |
| Net Revenues | $8,623,000 | $9,775,000 | $20,606,000 | $34,733,000 | $38,077,000 |
| Production Costs | $9,016,000 | $12,538,000 | $17,231,000 | ||
| Gross Profit | $11,590,000 | $22,195,000 | $20,846,000 | ||
| Gross Margin | 56.2% | 63.9% | 54.7%% | ||
| EBITDA | $5,834,000 | $2,085,000 | $7,924,000 | $19,274,000 | $16,390,000 |
| Capital Expenditures | $2,144,000 | $689,000 | $2,108,000 | $2,481,000 | $16,444,000 |
| Cash Costs/Oz of Ag | $1.96 | $4.08 | $4.60 | $4.88 | $6.27 |
