Coeur d’Alene Mines Corp. (NYSE: CDE) has announced a 1-for-10 reverse stock split, which will be effective on May 26, 2009. The shares will trade on the NYSE on a split-adjusted basis beginning the next day, and a few days later on the Toronto exchange.
The reverse split reduces the number shares outstanding from more than 686 million to about 68.63 million.
Standard & Poor’s Ratings put Coeur on CreditWatch with positive implications. The company’s credit rating, ‘CCC’, reflects S&P’s “assessment that near-term operating cash flow generation will likely increase due to higher metal volumes and continued favorable gold and silver prices.”
S&P expects Coeur to need to raise additional capital to fund its 2009 capital spending program. Although S&P doesn’t say so directly, asset sales are likely to be part of the mix. Coeur’s CFO pooh-poohed that possibility, saying that the company’s $38 million in cash on hand and expected operating cash flow of $100 million is plenty.
Coeur shares are trading up about 1.5% in pre-market, at $1.37. The 52-week trading range is $0.36-$3.48, with average daily trading volume of more than 10 million shares.
Paul Ausick
May 19, 2009
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