Coeur Reports Record Results for First Quarter of 2006

Share Name	Share Symbol	Market	Type
City Developments Ltd	TG:CDE	Tradegate	Ordinary Share

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.04	-1.18%	3.34	3.30	3.38	3.38	3.34	3.38	3,000	19:50:00

City Developments (TG:CDE)
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-- HIGHLIGHTS -- COEUR D'ALENE, Idaho, May 8 /PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation (NYSE: CDE; TSX: CDM) today reported all-time record quarterly net income of $14.3 million, or $0.05 per diluted share, for the first quarter of 2006, compared to a net loss of $1.1 million, or $0.00 per diluted share, for the year-ago period. Metal sales for the first quarter of 2006 were $44.9 million, a 39 percent increase compared to metal sales of $32.2 million in the year-ago period. In commenting on the company's performance relative to the year-ago quarter, Dennis E. Wheeler, Chairman, President and Chief Executive Officer, said, "The company reported superlative income due largely to a 31 percent increase in silver production from continuing operations, a reduction in our cash cost per ounce of silver to below $4.00 for continuing operations, an 8 percent decline in our corporate overhead expenses, and higher realized prices for silver and gold." Wheeler added, "The groundwork we have done over the past two years specifically to improve operating efficiency and add low-cost production has prepared the company to benefit from the current strong market conditions. In particular, operations at the Rochester and Martha mines improved significantly quarter-over-quarter. And while Cerro Bayo got off to a slow start in the first quarter, we expect results to improve markedly as mining returns to higher-grade areas there for the balance of the year. We expect to see a continuation of strong performance improvement trends over the course of 2006." Highlights by Individual Property -- Cerro Bayo (Chile) -- Silver and gold production were below the levels of the year-ago period because the mine concentrated on lower-grade veins during the quarter. The lower volumes and the associated reduction in the gold by-product credit -- along with inflationary cost increases for energy -- were largely responsible for the increase in silver cash cost per ounce. Cerro Bayo's mine plan calls for work to be focused on higher-grade areas for the balance of 2006 and for production to return to historical levels. -- Martha (Argentina) -- Silver and gold production both increased approximately 42% due to higher ore grades and tons milled. Cash costs per ounce of silver declined, due to the higher production. -- Rochester (Nevada) -- Silver production was up modestly compared to that of the year-ago period, while gold production increased 15%. Cash cost per ounce declined by 31% as compared to that of the year-ago period. -- Endeavor (Australia) -- Silver production more than doubled from the level of the fourth quarter of 2005 as the mine continued its steady recovery from an uncontrolled rock fall in October 2005 that limited mining activity and affected cash cost per ounce during the fourth quarter. At a silver cash cost per ounce of $2.13, Endeavor was the lowest-cost mine in Coeur's system during the first quarter of 2006. (Year-ago comparisons for Endeavor are not meaningful because the mineral interest was acquired in the second quarter of 2005.) -- Broken Hill (Australia) -- Silver production was 557,311 ounces in the first quarter of 2006, with a cash cost per ounce of $2.89. (Year-ago comparisons for Broken Hill are not meaningful because the mineral interest was acquired in the third quarter of 2005.) Balance Sheet and Capital Investment Highlights The company had $374.3 million in cash and short-term investments as of March 31, 2006. Capital spending during the first quarter of 2006 totaled $27.8 million, most of which was spent on the Kensington (Alaska) gold project and the San Bartolome (Bolivia) silver project as summarized below. -- At Kensington, capital investment totaled $23.8 million during the quarter as the company continued with an aggressive construction schedule. The company is aiming to complete the project and start producing gold toward the end of 2007. To date, the company has completed extensive underground work to prepare the mine for operation. Above-ground, Coeur has built a camp for construction workers, installed a water treatment plant, a temporary dock, and completed much of the grading and site preparation for the construction of the mill. In coming months, most of the work will focus on construction of a tailings impoundment dam and construction of the mill. -- At San Bartolome, capital investment totaled $1.9 million during the quarter. The company is aiming to complete the project and begin producing silver toward the end of 2007. In advance of anticipated resumption of full-scale construction in approximately July 2006, the company has focused on construction of access roads to and around the site, rough cut grading of the mill site, preparation of an ore stockpile area, movement of some ore to stockpile and the construction of a fence around the perimeter of the plant site area. Exploration Highlights Exploration activity was concentrated at the company's Cerro Bayo, Martha and Kensington properties, where Coeur already has sizable mineral resources and mineral reserves within large, prospective land packages and where, at Cerro Bayo and Martha, mineral reserves and resources have increased for three consecutive years. At Cerro Bayo, exploration in the area of the new Cascada vein discovered new mineralization 250 meters to the north in a potential extension. Initial drilling returned values of 6.26 silver ounces per ton and 0.29 gold ounces per ton over 7.7 feet of core (4 feet true width), and 44.2 silver ounces per ton and 1.92 gold ounces per ton over 11 feet of core (7.5 feet true width). Follow-up drilling is underway on these encouraging high-grade results. At Martha, approximately 30,500 feet of drilling was accomplished during the first quarter to expand reserves and discover new mineralization. Results obtained from drilling R4 Deep, Francisca, and Catalina continues to expand the strike and depth of the mineralization in those veins, which were discovered in 2004. Drilling will continue throughout the year on these and other targets in the Martha mining district. The company recommenced an underground core drilling program at Kensington in a continuation of the program conducted in the second half of 2005. The program is designed to expand mineral reserves through conversion of portions of the project's large, additional mineral resource consisting of indicated mineral resource of 617,000 tons grading 0.436 ounces per ton of gold and inferred resources of 2.5 million tons grading 0.234 ounces per ton of gold. Approximately 4,600 feet were drilled in this program during the quarter. Discontinued Operation As previously announced, Coeur has signed an agreement to sell 100% of its shares in Coeur Silver Valley (CSV) to U.S. Silver Corporation for $15 million. The company expects the sale to close by June 1, 2006. For financial reporting purposes, results of Coeur Silver Valley are reported as discontinued operations. Coeur d'Alene Mines Corporation is one of the world's leading primary silver producers and has a strong presence in gold. The Company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, Nevada, and Idaho. Conference Call Information Coeur d'Alene Mines Corporation will hold a conference call to discuss the Company's first quarter 2006 results at 1 p.m. Eastern time on May 8, 2006. To listen live via telephone, call (877) 502-9276 (US and Canada) or (913) 981-5591 (International). The conference call and presentation will also be web cast on the Company's web site http://www.coeur.com/. A replay of the call will be available through May 14, 2006. The replay dial-in numbers are (888) 203-112 (US and Canada) and (719) 457-0820 (International) and the access code is 8182471. Cautionary Statement Company press releases may contain numerous forward-looking statements within the meaning of securities legislation in the United States and Canada relating to the Company's silver and gold mining business. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the Company's control. Operating, exploration and financial data, and other statements in this document are based on information the Company believes reasonable, but involve significant uncertainties as to future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from the Company's future acquisition of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries, as well as other uncertainties and risk factors set out in the Company's filings from time to time with the SEC and the Ontario Securities Commission, including, without limitation, the Company's reports on Form 10-K and Form 10-Q. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release such as "measured," "indicated," "inferred" and "resources" that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K, File No. 1-8641 which may be secured from us, or from the SEC's website at: http://sec.gov/edgar.shtml. Donald J. Birak, Coeur's Senior Vice President of Exploration, is the qualified person responsible for the preparation of the scientific and technical information in this document. Mr. Birak has reviewed the available data and procedures and believes the collection of exploration data and calculation of mineral reserves reported in this document was conducted in a professional and competent manner. Contact: Scott Lamb 208-665-0777 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES (Unaudited) Three Months ended March 31, 2006 2005 REVENUES Sales of metal $44,854 $32,235 COSTS AND EXPENSES Production costs applicable to sales 20,099 17,342 Depreciation and depletion 6,318 4,149 Administrative and general 5,090 5,549 Exploration 1,968 2,709 Pre-development -- 2,369 Litigation settlement -- 1,600 Total cost and expenses 33,475 33,718 OTHER INCOME AND EXPENSE Interest and other income 2,521 1,948 Interest expense, net of capitalized interest (521) (570) Total other income and expense 2,000 1,378 Income (loss) from continuing operations before income taxes 13,379 (105) Income tax benefit (provision) 347 (679) INCOME (LOSS) FROM CONTINUING OPERATIONS 13,726 (784) Income (loss) from discontinued operations, net of income taxes 612 (361) NET INCOME (LOSS) 14,338 (1,145) Other comprehensive income (loss) 4 (1) COMPREHENSIVE INCOME (LOSS) $14,342 $(1,146) BASIC AND DILUTED INCOME (LOSS) PER SHARE Basic income (loss) per share: Income (loss) from continuing operations $0.06 $(0.00) Income (loss) from discontinued operations -- -- Net income (loss) $0.06 $(0.00) Diluted income (loss) per share: Income (loss) from continuing operations $0.05 $(0.00) Income (loss) from discontinued operations -- -- Net income (loss) $0.05 $(0.00) Weighted average number of shares of common stock Basic 252,485 239,985 Diluted 277,383 239,985 Operating Statistics From Continuing Operations The following table presents information by mine and consolidated sales information for the three-month periods ended March 31, 2006 and 2005: Three Months Ended March 31, 2006 2005 Rochester Tons processed 2,531,900 2,358,413 Ore grade/Ag oz 0.67 0.91 Ore grade/Au oz 0.014 0.010 Recovery/Ag oz (A) 67.4% 52.8% Recovery/Au oz (A) 46.5% 62.2% Silver production ounces 1,148,363 1,135,997 Gold production ounces 16,117 13,992 Cash cost/oz $4.32 $6.30 Total cost/oz $7.61 $8.53 Cerro Bayo Tons milled 100,275 98,584 Ore grade/Ag oz 5.54 7.05 Ore grade/Au oz .095 .162 Recovery/Ag oz 92.9% 94.9% Recovery/Au oz 92.2% 92.8% Silver production ounces 515,822 659,293 Gold production ounces 8,794 14,868 Cash cost/oz (B) $3.46 $(0.15) Total cost/oz $5.94 $1.78 Martha Mine Tons milled 8,849 7,837 Ore grade/Ag oz 65.86 50.99 Ore grade/Au oz .082 .065 Recovery/Ag oz 93.3% 94.9% Recovery/Au oz 92.3% 92.7% Silver production ounces 543,486 379,060 Gold production ounces 670 471 Cash cost/oz $4.93 $5.07 Total cost/oz $5.37 $5.51 Endeavor (C) Tons milled 103,003 -- Ore grade/Ag oz 1.30 -- Recovery/Ag oz 62.9% -- Silver production ounces 84,280 -- Cash cost/oz $2.13 -- Total cost/oz $3.43 -- Broken Hill (C) Tons milled 527,096 -- Ore grade/Ag oz 1.46 -- Recovery/Ag oz 72.3% -- Silver production ounces 557,311 -- Cash cost/oz $2.89 -- Total cost/oz $5.64 -- CONSOLIDATED PRODUCTION TOTALS Silver ounces 2,849,262 2,174,350 Gold ounces 25,581 29,331 Cash cost per oz/silver $3.94 $4.13 Total cost/oz $6.37 $5.95 CONSOLIDATED SALES TOTALS Silver ounces sold 2,877,890 2,653,097 Gold ounces sold 25,734 35,184 Realized price per silver ounce $10.36 $6.82 Realized price per gold ounce $588 $424 (A) The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the ultimate recovery to be approximately 61.5% for silver and 93% for gold. As a result, current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates -- Ore on Leach Pad. (B) The negative cash cost per ounce of silver is the result of the gold by-product credit as a reduction of operating costs. (C) The Company acquired its interests in the Endeavor and Broken Hill mines in May 2005 and September 2005, respectively. Operating Statistics From Discontinued Operation The following table presents information for Coeur Silver Valley which has been classified as held for sale and reported as discontinued operations: Three Months Ended March 31, 2006 2005 Silver Valley/Galena Tons milled 32,652 37,458 Ore grade/Silver oz 15.91% 19.50 Recovery/Silver oz 96.2% 97.2% Silver production ounces 499,647 710,296 Cash cost/oz $9.24 $6.73 Total cost/oz $10.43 $7.45 Gold production 122 92 "Cash Costs per Ounce" are calculated by dividing the cash costs computed for each of the Company's mining properties for a specified period by the amount of gold ounces or silver ounces produced by that property during that same period. Management uses cash costs per ounce as a key indicator of the profitability of each of its mining properties. Gold and silver are sold and priced in the world financial markets on a US dollar per ounce basis. "Cash Costs" are costs directly related to the physical activities of producing silver and gold, and include mining, processing and other plant costs, third-party refining and smelting costs, marketing expense, on-site general and administrative costs, royalties, in-mine drilling expenditures that are related to production and other direct costs. Sales of by-product metals are deducted from the above in computing cash costs. Cash costs exclude depreciation, depletion and amortization, corporate general and administrative expense, exploration, interest, and pre-feasibility costs and accruals for mine reclamation. Cash costs are calculated and presented using the "Gold Institute Production Cost Standard" applied consistently for all periods presented. Total cash costs per ounce is a non-GAAP measurement and investors are cautioned not to place undue reliance on it and are urged to read all GAAP accounting disclosures presented in the consolidated financial statements and accompanying footnotes. In addition, see the reconciliation of "cash costs" to production costs under "Costs and Expenses" set forth below: The following tables present a reconciliation between non-GAAP cash costs per ounce to GAAP production costs applicable to sales reported in the Statement of Operations: Three Months Ended March 31, 2006 (In thousands except ounces and per ounce costs) Cerro Broken Rochester Bayo Martha Endeavor Hill Total _________ _______ _______ ______ _______ _________ Production of Silver (ounces) 1,148,363 515,822 543,486 84,280 557,311 2,849,262 Cash Costs per ounce $4.32 $3.46 $4.93 $2.13 $2.89 $3.94 Total Cash Costs $4,965 $1,783 $2,681 $179 $1,609 $11,217 Add/Subtract: Third Party Smelting Costs -- (770) (312) (103) (572) (1,757) By-Product Credit 8,941 4,873 371 -- -- 14,185 Other Adjustments 739 -- -- -- -- 739 Change in Inventory (2,893) (1,352) (63) (48) 71 (4,285) Production costs applicable to sales $11,752 $4,534 $2,677 $28 $1,108 $20,099 Three Months Ended March 31, 2005 (In thousands except ounces and per ounce costs) Cerro Broken Rochester Bayo Martha Endeavor Hill Total _________ _______ _______ ______ _______ _________ Production of Silver (ounces) 1,135,997 659,293 379,060 -- -- 2,174,350 Cash Costs per ounce $6.30 $(0.15) $5.07 -- -- $4.13 Total Cash Costs (000's) $7,153 $(98) $1,921 -- -- $8,976 Add/Subtract: Third Party Smelting Costs -- (719) (197) -- -- (916) By-Product Credit 5,991 6,348 201 -- -- 12,540 Other Adjustment (100) -- -- -- -- (100) Change in Inventory (3,557) 674 (275) -- -- (3,158) Production costs applicable to sales $9,487 $6,205 $1,650 -- -- $17,342 The following tables present a reconciliation between non-GAAP cash costs per ounce to GAAP production costs applicable to sales reported in Discontinued Operations (see Note D): Three Months Ended March 31, (In thousands except ounces and per ounce costs) Coeur Silver Valley/Galena 2006 2005 _______ _______ Production of Silver (ounces) 499,647 710,296 Cash Costs per ounce $9.24 $6.73 Total Cash Costs (000's) $4,615 $4,782 Add/Subtract: Third Party Smelting Costs (869) (1,124) By-Product Credit 796 938 Change in Inventory (282) (697) Production costs applicable to sales $4,260 $3,899 COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 2006 2005 ASSETS (In Thousands) CURRENT ASSETS Cash and cash equivalents $347,651 $214,616 Short-term investments 26,690 25,726 Receivables 23,038 27,986 Ore on leach pad 27,743 25,394 Metal and other inventories 12,986 12,807 Deferred tax assets 2,678 2,255 Prepaid expenses and other 6,388 4,707 Assets of operations held for sale (Note D) 15,877 14,828 463,051 328,319 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment 109,049 105,107 Less accumulated depreciation (59,852) (57,929) 49,197 47,178 MINING PROPERTIES Operational mining properties 122,650 121,441 Less accumulated depletion (107,794) (105,486) 14,856 15,955 Mineral interests 72,201 72,201 Less accumulated depletion (3,860) (2,218) 68,341 69,983 Non-producing and development properties 89,886 72,488 173,083 158,426 OTHER ASSETS Ore on leach pad, non-current portion 31,316 29,254 Restricted cash and cash equivalents 17,041 16,943 Debt issuance costs, net 5,378 5,454 Deferred tax assets 2,837 923 Other 7,666 8,319 64,238 60,893 Total assets $749,569 $594,816 COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 2006 2005 (In thousands except share data) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 12,426 $ 17,189 Other current liabilities 6,604 6,274 Accrued interest payable 469 1,031 Accrued salaries and wages 4,864 7,840 Current taxes payable 1,716 66 Liabilities of operations held for sale (Note D) 12,816 12,908 38,895 45,308 LONG-TERM LIABILITIES 1 1/4% Convertible Senior Notes due January 2024 180,000 180,000 Reclamation and mine closure 24,301 24,082 Other long-term liabilities 4,286 3,873 208,587 207,955 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Common Stock, par value $1.00 per share; authorized 500,000,000 shares, issued 278,869,045 and 250,961,353 shares in 2006 and 2005 (1,059,211 shares held in treasury) 278,869 250,961 Additional paid-in capital 775,611 656,977 Accumulated deficit (537,369) (551,357) Shares held in treasury (13,190) (13,190) Accumulated other comprehensive loss (1,834) (1,838) 502,087 341,553 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $749,569 $594,816 COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2006 and 2005 (Unaudited) Three Months Ended March 31, 2006 2005 (In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $14,338 $(1,145) Add (deduct) non-cash items: Depreciation and depletion 6,318 4,149 Deferred taxes (2,073) 679 Unrealized gain on embedded derivative, net (1,559) (391) Share based compensation 625 400 Other charges 502 410 Changes in Operating Assets and Liabilities: Receivables 4,830 (1,316) Prepaid and other current assets 336 882 Inventories (4,590) (3,256) Accounts payable and accrued liabilities (918) (2,332) Discontinued operations (645) (577) Cash provided by (used in) operating activities 17,164 (2,497) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short-term investments (11,381) (10,546) Proceeds from sales of short-term investments 10,316 6,015 Capital expenditures (27,806) (3,499) Other (241) (29) Discontinued operations (497) (632) CASH USED IN INVESTING ACTIVITIES (29,609) (8,691) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 154,560 -- Payment of public offering costs (8,388) -- Common stock repurchased (739) (569) Other 47 (80) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: 145,480 (649) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 133,035 (11,837) Cash and cash equivalents at beginning of period 214,616 273,068 Cash and cash equivalents at end of period $347,651 $261,231 DATASOURCE: Coeur d'Alene Mines Corporation CONTACT: Scott Lamb of Coeur d'Alene Mines Corporation, +1-208-665-0777 Web site: http://www.coeur.com/

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CDE City Developments Ltd