Good afternoon. My name is Tia, and I will be the conference operator today. At this time, I would like to welcome everyone to the second quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions). Thank you. I would now like to turn the conference over to Ms. Karli Anderson, Director of Investor Relations. Please go ahead ma'am.

Thank you. Thank you today for joining us to discuss the company's results for the second quarter 2008. The call is also being broadcast live on the internet through our website at www.coeur.com, where we've also posted the slides that accompany our prepared remarks. A telephonic replay of the call will be available for one week afterwards on our website. On the call today are Dennis Wheeler, Chairman, President, and Chief Executive Officer; Mitchell Krebs, Senior Vice President and Chief Financial Officer; Richard Weston, Senior Vice President of Operations; and Don Birak, Senior Vice President of Exploration. Any forward-looking statements made today by management come under Securities Legislation of the United States, Canada and Australia and involve a number of risks that could cause actual results to differ from our projections. Please see our full cautionary statements on slide 2. With that, I would like to turn the call over to Dennis Wheeler.

Thank you Karli, and welcome and thank you for joining us on today's call. In the second quarter we continued our growth strategy by making progress on our newest long life mines which as expected to maximize value for you with our share holders. The three key legs of this strategy remain our San Bartolome mine in Bolivia, which began commercial production in the second quarter; Palmarejo in Mexico, where we reported substantial reserve and resource increases; and Kensington, where we continue to move forward towards our goal for production in late 2009. These are all large long life assets which over the next two years we remain confident will continue to ramp company-wide production, cash flows and reserves. In 2008, with San Bartolome now contributing its initial production, Coeur expects to produce 13 million ounces of silver on a company-wide basis. Next year we are expecting to increase silver production to nearly 24 million ounces as we bring Palmarejo online. In other words, we plan to nearly double our production next year, and these new sustainable long life silver mines will have a major impact on core into the future. I'll begin by highlighting milestones we achieved during the quarter. San Bartolome, our newest silver mine in Bolivia, did reach commercial production. It is today planned to be the world's largest pure silver mine and we're very encouraged by the high quality of the production of the site. Our first shipment at DorE reflected an impressive 99.9% purity. San Bartolome does continue to maintain an excellent safety record, and continues to benefit from strong local support and cooperation. We are now forecasting to produce 3.2 million ounces of silver in 2008 from San Barts. Our 2009 guidance however for the mine has not changed and remains at 9 million…

Thanks Dennis. Over the next few minutes, I'll discuss some of Coeur's key financial metrics for the second quarter. For our full financial details, please see our press release that was issued this morning as well as our 10-Q that will be filed later this afternoon. In the second quarter, the company reported a net loss of $5.4 million, which includes 10.7 million of expense-free development costs relating to the Palmarejo project. These costs will now begin to be capitalized going forward due to the completion of the Palmarejo feasibility study during the second quarter. Excluding these costs, second quarter net income was $5.3 million or $0.01 per share. We have a fully funded capital plan at Coeur and $187 million in cash equivalents and short term investments as of June 30 and I will go into further detail on our capital plan shortly. The next few slides give you a comparison of a few key financial metrics. On Slide 15 you'll see that our cash cost per ounce of silver have remained more or less consistent over the last six quarters as metals prices have increased substantially. We continue to aggressively manage our costs at the site level by carefully analyzing our materials, personnel and expenses. On Slide 16 you'll see the sales of metal in the second quarter were $50 million. We were affected by a brief shut down at Cerro Bayo relating to an electrical upgrade as well as mill start up issues, commissioning issues at Martha which affected our quarter-over-quarter performance. With both of those items resolved and San Bartolome now in production we are optimistic about our sales prospects for the third quarter and the fourth quarter of 2008. On Slide 17 you'll see the last four quarters gross margin which is essentially metal sales…

Thank you Mitch. Silver productions asset for the second quarter is detailed on slide 28, and this was up 5% over the last quarter. You'll see that the 2.5 million ounces of silver production is well balanced and diverse across their six operating mines. While San Bartolome was a small contributor to our second quarter results, we had our first silver fall there in June, and we are very pleased to have completed the first shipment of DorE in July. And we expect San Bartolome to be a solid contributor to the second half results. Looking at slide 29. In the second quarter Coeur reported gold production of 13,470 ounces, which was generated by three mines; Cerro Bayo in Chile, Rochester, and Martha. We look forward to the startup of Palmarejo this year, which we expect will contribute significantly to Coeur's gold and silver production in 2009. At San Bartolome we continue to work through startup issues as Dennis discussed. We are currently repairing our gold-bearings and in the interim, are using a segment, one would use throughput. We expect to have this issue resolved this month. We are currently using an interim phase disposal area within the (inaudible) tailing facility, and expect this facility to be completed during the fourth quarter of 2009. In this initial year of production, we expect to produce 3.2 million ounces of silver, and remain on target for the projected 9 million ounces of production next year. Turning to Palmarejo. We also made considerable construction progress at Palmarejo during the second quarter, and we remain on schedule for our March 2009 startup. On Slide 31 through 34, we've provided some (inaudible) of the startup activities. The tailings dam, an environmental controlled dam, pre -construction works, well advanced. We have approximately 600 contract employees on site for construction activities. Fixed evaluation for the processing facilities, that the plants are bank inflated and contracts for mechanical piping and electrical work are in place. On a community relations front, contractors have been forced to maintain a number of local community roads. I'm also pleased to report that some of our critical path items are actually ahead of schedule at this point. In particular, the underground development from our third portal and we remain very confident in our March 2009 start update. On slide 35 we've provided a 3D image of Palmarejo. Over 1,200 meters of underground development and open pit free stripping activities are advancing as planned. Both mining shovels are currently pre stripping with the daily production rates of up to 50,000 metric tonnes being achieved. Work on the plant size growth and the main camp are well advanced and on schedule for the March 2009 startup. Now Don Birak will discuss the exploration progress at Palmarejo.

Thanks Richard. An important milestone in the second quarter involved a completion of Palmarejo feasibility study. The study focused only on the Palmarejo deposit. We reported a total mineral inventory of nearly 100 million ounces of silver and 1.2 million ounces of gold in the proven, probably, measured and indicated categories. Contribution of Palmarejo alone has already significantly added to Coeur's mineral inventory. I'll find out again to this reserve growth outlined in the feasibility study covered just one of the three current silver and gold deposits to find -- with majority of the districts’ main targets having relatively little prior exploration, they just scratch the surface on the reserve potential at Palmarejo with much more exploration to follow this year and in the future. In particular, we're engaged in an intensive drilling program at the Guadalupe deposit. From the chart on Slide 38, you will see we've already recorded substantial gains from our early drilling. Further increases are expected throughout the remainder of the year. We anticipate these will result in new reserves. At Palmarejo, we budgeted an US$8 million this year to expand and define the resources and reserves. This important program represents nearly 30% of Coeur's total 2008 exploration investment and we're pleased with the results so far. In the first half of the year, we are focused as you might expect on completion of the projects’ first feasibility study, definition of the first proven and probable mineral reserves for this important property. Second half of 2008 will focus on reserve definition few technical drilling of Palmarejo and drilling to further expand and define Guadalupe, the second of three major mineralized structures in the district. We completed new mineral resource estimates of Guadalupe and we continue to drill there with three core drills currently. We achieved a…

Thank you, Don. At Cerro Bayo we were impacted by lower than expected tons and grades in time in the current (inaudible). We have worked aggressively to cut cost at that site and we have reduced slightly cost by 37% since October 2007. We now expect Cerro Bayo to produce 1.2 million ounces of silver and 22,000 ounces of gold during the balance of 2008 -- during 2009. The Fabiola and Dagny veins discovered in June of last year is currently under development and our expected to contribute to production later this year and throughout 2009. And I let Don to fill you on that.

Okay. Thanks. Drilling to expand and define the current resources reserves and the Coeur’s estate at Cerro Bayo continued to gain at a high pace this quarter. As Richard mentioned, you recall it’s just a year that we discovered mineralization in Coeur’s estate and the Dagny and Fabiola veins. Since then we've drilled over 41,700 meters of Coeur and call our two portals to access the deposits. In the map, here you can see all the new veins and the main Coeur’s estate area, about 1 kilometer east to the Cerro Bayo mill. Dagny and Fabiola are just two of many veins we have discovered in this area. Past quarter, our exploration efforts were directed to expansion and delineation of the resources or all the veins and tightly space drilling on Dagny to find new reserves. We’re going to continue drill for us many of the year on these new important discovery. Let’s shift to our next slide, 44. In this longitudinal section, you can see the location of the 2007 discovery drill hole, which intersected ore grades, sliver and gold about 75 meters below the surface and you could see the outline of deposit to find to the end of June. Deposit is now over 700 meters long, approximately 150 meters in vertical extent and still open. Now I turn this back to get the Richard to discuss operational progress in our Rochester Mine.

Yeah. Thanks, Don. We currently engaged in the technical study to determine the potential for the conversion of 27.9 million contained ounces of silver and 183,000 contained ounces of gold resources in various areas of the mine to provide for additional production at Rochester. Rochester is currently in residually leach mines and has been performing ahead of budget throughout the year. We expect our optimization review to be complete during fourth quarter 2008. And we now expect Rochester to produce 3.1 million ounces of silver in 2008, a substantial increase over our earlier guidance which was just 1.8 million ounces for the year.

Okay. We'll just start again. We continue to explore at Rochester to test new structures that we think are potential to host high grade mineralization. Perhaps speeder structures for the large bulk (inaudible) Rochester deposit and to facilitate conversion of the mines large, additional measure and indicative to proven and probable status. On slide 46, additional measures and indicated resources to prove an improbable status. On Slide 46, you can see a three-dimensional image of the current Rochester mine [18 0:06] in gray, and some of the remaining measured and indicated mineral resource blocks beneath and peripheral to the mine limits. As Richard mentioned, the current mineral resources totaled over 183,000 gold ounces, and over 27 million ounces of silver, modeled with metal prices of $600 gold and $11 silver. This year we will conduct a program to confirm our model of the remaining resources, especially higher grade sessions and prepare a new model with metal prices to be used and to be used by our engineers in their technical and economical evaluation. In addition, we'll continue to test structures in a district that have potential to host high grade silver and gold. Last year, our program targeted two such structures exposed in the bottom of the Rochester pit, the pump, and the counterfoil, you might remember those, and that program of seven Coeur holds validated this exploration concept. And I'll turn this back over to Richard to discuss our other operating lines.

Yeah, thanks Don. At Martha, we have shown substantial improvement in throughput during the last quarter. We completed commissioning of the mill, and we expect growth to meet or exceed expectations in the second half of the year. Our guidance for Martha stands at 3.2 million ounces of silver for 2008. On Slide 48, we are looking at production Coeur's two operating interests in Australia, Broken Hill and Endeavour at Cobar. Both were impacted by the unfavorable pricing situation for lead and zinc during the quarter. Coeur has now recouped 100% of its initial investment at the Broken Hill Mine, and 37% of its total investment in Endeavour. We now expect 2008 silver production from Broken Hill; of approximately 1.4 million ounces, and 2008 production from Endeavour of approximately 900,000 ounces of silver. Now I'll turn this back to Dennis.

Thanks Richard. We believe Coeur continues to benefit from nervous that we believe long term and robust precious metals environment which by most measures we expect to continue. We believe that investors will continue to seek out metals as a safe heaven in this current global convergence of financial instability, hardened economic concerns and political pensions. Most precious metal analysts have forecasted continued strength of our metals going forward. I'm sure many of you have seen the recent writers poll of 36 analysts and traders that show consensus 2008 price estimates of $17.50 per ounce of silver and $930 per ounce of gold. We do remain bullish on both of our metals and we're thoroughly convinced that the execution properly of our strategy of bringing new long life sustainable mines into production. It's the best path to maximize our share holder returns. We are exited as we look forward to the remainder of this year and into 2009. With our goals and our resolve stiffened and consistent this includes reaching design capacity at San Bartolome, advancing Palmarejo construction and production to a March 2009 startup on schedule and on budget. We expect Martha to deliver increased silver production at lower costs and we believe that Rochester will continue to outperform. We're also looking forward to a resolution related to the Kensington tailings facility and we plan through our robust exploration program to continue to expand our reserve and resource base. We will continue to further strengthen the Coeur team by adding top notch management and technical personnel throughout the year and lastly we'll continue to manage cost effectively as an industry leader in efficient cost of production. I can assure you we have a dedication and fervor today to do whatever needs to be done to get all of these projects done right. Indeed we expect these to continue to be exciting times in precious metals market and we're looking forward to keeping you posted and well informed on our progress as we go out throughout the balance of the year. Thank you very much for joining us today and we're ready to take your questions.

(Operator instructions). The first question is from George Bernstein with Deutsche Bank.

Hi, good morning gentlemen. Just picking up on the theme of keeping the market well informed, did I miss a press release about the potential miss on Cerro Bayo of 2 million ounces?

Hi this is Mitch. No, the updated Cerro Bayo guidance is new as of this morning's release.

Okay. I just wanted to make sure I didn’t miss something there and if you could just, I just want to kind of come through on a mine-by-mine basis, what the updated latest guidance is? You are mentioning now Rochester could produce 3 million ounces for the full year but is this change in guidance that Rochester related simply to the fact that you ended up not selling it and another words the run that Rochester is throwing off. I think you had kind of been toned on previous guidance about 1.5 million ounces assuming it was sold mid year. So is the change that you're actually increasing, the guidance at Rochester or just simply now reflects the full year impact of keeping Rochester on balance sheet.

It's a good question, it's Mitch again. No, the original budget for the year included Rochester for the full year. This is strictly related to the fact that silver is being recovered from the heaps at a faster rate than anticipated earlier in the year. So this is truly just an increase in production for the year from Rochester from, I think 1.8 up to the 3.1.

Okay. So that's a net 1.3 increase. And then, at Cerro Bayo, what is your updated '08 and '09 forecast?

'08 is now 1.2 and we have not put out any '09 guidance, mind-by-mind.

And the prior guidance for Cerro Bayo was 2?

Yeah, I think 2.1.

It's a change to 0.8, okay. Martha?

3.2.

And it increased to 0.4. Broken Hill?

1.4.

And Endeavor?

0.9.

Okay. So then, the change of guidance of about a negative of a million tones. Sorry, a million ounces?

Those five operations, the numbers I just ran through to get to you right to about 10 million ounces.

Okay. And then, on San Barts, if we could just understand a little bit more clearly the operational pushback there and how confident you are now that you will hit the 2 million ounce run rate in the third and fourth quarter?

Yeah, I'll let Richard handle that one all [indiscernible]. Thanks.

Yeah, hello [indiscernible]. Forecast for the balance of 2008 at San Bart is 3.2 million ounces for the year.

Okay. So then you are implicatively sort of reducing your 2 million ounce run-rate to about 1.6% per quarter?

Not -- it's Mitch again. The 3.2 would not be split up equally between the third and fourth quarters. We'll plan to see a continued ramp up between now and at the end of the year month by month, so that, that 3.2 would be more weighted towards the fourth quarter versus the third.

Okay. And then, are you still standing by the '09 guidance on San Bart?

Yes. We are.

Okay. And just also on the acceleration of the Palmarejo project, I also wanted to understand -- I'm sorry I thought I heard Dennis mention that you were moving that project forward to March of '09 startup?

That's correct.

And are you sticking by the full year prior year guidance there or will this lead to an increase in the full year '09 guidance now because of the extra quarter pick up of production?

No, we are sticking with the guidance that we put out there for Palmarejo for 2009 of 5.1 million ounces of silver.

Okay. So despite now three quarters of operation you are maintaining the full year guidance. Okay. Thank you.

(Operator Instructions). The next question is from John Bridges with JP Morgan.

Hi Dennis, hey everybody. Sorry to be repetitious, but on San Bart, what were the tonnes and grades and recoveries you got during the quarter? Are we trying to put them into our model?

Okay. Hey John, we'll follow up with you on that one. This is Karli.

Hi Karli. Okay, quarter two CapEx?

Quarter two, just the second quarter?

Yeah.

Yes, for the first six months it was 168, which included the $25 million payment to Endeavour in the first quarter. So the second quarter CapEx number was company-wide; was about $105 million.

Okay. You made reference of the potential to slow down spending on some of these things to manage your cash flows. What are your cash flows looking like now for the second half?

We are looking at operating cash flow in the range of $60 million to $75 million.

Okay. And capital spending?

We are looking at somewhere between 185 and 215.

John, I'd like to add further that we don't have any present intention at Coeur to slow down CapEx spending, places like Palmarejo. What we're signaling to you and the other people on the call today is that we'll be very disciplined in the way we manage our cash in this environment, and we'll do what we need to do to ensure the financial integrity of the company.

Yeah. While you've been through some tough times before in the 1990s, I seem to remember, when the silver price was just $5.

Yes.

And do you have a Q2 CapEx number for San Bart?

Yeah, it was right around $30 million John.

Okay, okay guys, good luck.

Thanks John.

Thanks.

There are no further questions at this time. I would like to turn the conference back over to Dennis for any closing remarks.

We'd like to thank all of you for joining us here today. And we can assure you we'll keep you closely informed on developments within the company as we go through the balance of this year. Thanks again.

Ladies and gentlemen thank for you participating in today's conference call. You may now disconnect.