Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced preliminary first quarter production of 4.1 million
ounces of silver and 58,836 ounces of gold, or 7.6 million silver
equivalent ounces1.
Quarterly Production Results1
A chart accompanying this release is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=24640
"Our first quarter operational performance represents a solid
start to the year," stated Mitchell Krebs, Coeur's President and
Chief Executive Officer. "In particular, we are pleased with the
progress at our Rochester mine, where daily silver production rates
have exceeded 13,000 ounces in early April. We anticipate higher
silver and gold production levels from Rochester in each successive
quarter during the remainder of 2014.
"With our four major mines operating consistently, our cost
reduction initiatives gaining momentum, minimal required capital
projects, and a bolstered liquidity position, we believe we are
well-positioned for a successful year," Mr. Krebs concluded.
1Q 2014 Operational Results1
First quarter operational highlights for each of the Company's
mines are provided below.
|
|
|
|
|
|
Palmarejo, Mexico |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Underground Operations: |
|
|
|
|
|
Tons mined |
209,854 |
237,384 |
219,909 |
183,267 |
151,232 |
Average silver grade
(oz/t) |
5.95 |
6.00 |
4.73 |
4.59 |
4.22 |
Average gold grade
(oz/t) |
0.11 |
0.14 |
0.11 |
0.11 |
0.09 |
Surface Operations: |
|
|
|
|
|
Tons mined |
358,222 |
361,493 |
385,379 |
363,758 |
388,651 |
Average silver grade
(oz/t) |
3.50 |
3.49 |
3.49 |
4.95 |
3.45 |
Average gold grade
(oz/t) |
0.03 |
0.03 |
0.03 |
0.04 |
0.03 |
Processing: |
|
|
|
|
|
Total tons milled |
571,345 |
595,803 |
583,365 |
570,322 |
573,170 |
Average recovery rate –
Ag |
73.3% |
74.5% |
81.8% |
76.5% |
78.8% |
Average recovery rate –
Au |
78.0% |
80.6% |
87.6% |
81.2% |
90.1% |
Silver production ounces (000's) |
1,820 |
1,994 |
1,918 |
2,045 |
1,646 |
Gold production ounces |
25,216 |
35,486 |
29,893 |
28,191 |
22,965 |
Silver equivalent production ounces
(000's) |
3,333 |
4,123 |
3,712 |
3,736 |
3,024 |
- Palmarejo processed approximately 6,350 tons per day during the
quarter.
- Although down from the fourth quarter, underground operations
are providing a higher proportion of the tons milled, which
reflects a focus on transitioning Palmarejo to a higher-grade,
higher-margin operation.
- An expanded Merrill Crowe plant is currently being
commissioned, which, along with improved processes for blending
oxide and sulfide ore, is expected to increase recovery rates
during the remainder of the year.
|
|
|
|
|
|
San Bartolomé,
Bolivia |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Tons milled |
385,375 |
451,660 |
428,884 |
424,310 |
374,985 |
Average silver grade (oz/t) |
3.88 |
3.79 |
3.89 |
3.98 |
4.09 |
Average recovery rate |
90.5% |
87.6% |
91.5% |
90.3% |
90.6% |
Silver production ounces (000's) |
1,355 |
1,498 |
1,528 |
1,523 |
1,391 |
- Recovery rates and average silver grades remained consistent
with recent quarters.
- San Bartolomé reduced mill throughput for ten days during the
quarter to implement tailings facility
improvements.
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|
|
|
|
|
Rochester, Nevada |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Tons placed |
3,640,861 |
3,135,304 |
2,678,906 |
2,457,423 |
2,439,757 |
Average silver grade (oz/t) |
0.59 |
0.56 |
0.53 |
0.58 |
0.52 |
Average gold grade (oz/t) |
0.003 |
0.002 |
0.003 |
0.003 |
0.003 |
Silver production ounces (000's) |
750 |
712 |
580 |
844 |
648 |
Gold production ounces |
8,192 |
7,890 |
4,821 |
9,404 |
8,742 |
Silver equivalent production ounces
(000's) |
1,242 |
1,185 |
869 |
1,408 |
1,173 |
- Rochester achieved higher crushing rates and placed a larger
number of tons on the leach pad than in recent quarters. The
Company expects this will lead to higher silver and gold production
throughout the remainder of the year.
- The daily silver production rate averaged approximately 8,337
ounces during the first quarter, and has exceeded 13,000 ounces in
early April.
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|
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Kensington,
Alaska |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Tons milled |
159,697 |
149,246 |
147,427 |
127,987 |
129,057 |
Average gold grade (oz/t) |
0.17 |
0.26 |
0.20 |
0.18 |
0.20 |
Average recovery rate |
94.5% |
96.0% |
96.5% |
98.2% |
96.2% |
Gold production ounces |
25,428 |
37,404 |
29,049 |
23,162 |
25,206 |
- In order to maximize cash flow, Kensington's mine plan for 2014
reflects higher mining rates at gold grades more in-line with the
average reserve grade of 0.163 ounces per ton.
- Mill throughput averaged nearly 1,800 tons per day during the
quarter, which is a significant increase compared to prior
quarters.
|
|
|
|
|
|
Endeavor,
Australia |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Silver production ounces (000's) |
168 |
135 |
162 |
221 |
150 |
- Silver production received from the Company's investment in the
Endeavor lead-zinc-silver mine in Australia increased significantly
in the first quarter.
- Coeur owns all silver production and reserves at Endeavor up to
a total of 20.0 million payable ounces. As of March 31, 2014,
Endeavor had produced 5.0 million payable ounces, or 25% of the
total, since Coeur initially acquired this interest in 2005.
|
|
|
|
2014 Production
Guidance |
Silver (000's) |
Gold |
Silver Equivalent Ounces
(000's) |
Palmarejo, Mexico |
6,700 - 7,200 |
87,000 - 95,000 |
11,920 - 12,900 |
San Bartolomé, Bolivia |
5,700 - 6,000 |
-- |
5,700 - 6,000 |
Rochester, Nevada |
4,100 - 4,400 |
28,000 - 31,000 |
5,780 - 6,260 |
Endeavor, Australia |
500 - 600 |
-- |
500 - 600 |
Kensington,
Alaska |
-- |
105,000 - 112,000 |
6,300 - 6,720 |
Total |
17,000 - 18,200 |
220,000 - 238,000 |
30,200 - 32,480 |
- The Company is maintaining its 2014 production guidance, which
is summarized above.
1. Silver equivalent calculated using a 60:1 silver to gold
ratio.
Financial Results and Conference Call
Coeur will report its full operational and financial results for
the first quarter on May 7, 2014 after the New York Stock Exchange
closes for trading. There will be a conference call on May 8, 2014
at 11:00 a.m. Eastern time.
Dial-In Numbers: |
(877) 768-0708 (US and Canada) |
|
(660) 422-4718 (International) |
|
|
Conference ID: |
255 26 141 |
The conference call and presentation will also be webcast on the
Company's website www.coeur.com.
Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Peter C.
Mitchell, Senior Vice President and Chief Financial Officer; Frank
L. Hanagarne, Jr., Senior Vice President and Chief Operating
Officer; Hans Rasmussen, Vice President, Exploration; Joe Phillips,
Senior Vice President and Chief Development Officer; and other
members of management.
A replay of the call will be available through May 22, 2014.
Replay numbers: |
(855) 859-2056 (US and Canada) |
|
(404) 537-3406 (International) |
About Coeur
Coeur Mining is the largest U.S.-based primary silver producer
and a significant gold producer with four precious metals mines in
the Americas employing nearly 2,000 people. Coeur produces from its
wholly owned operations: the Palmarejo silver-gold mine in Mexico,
the San Bartolomé silver mine in Bolivia, the Rochester silver-gold
mine in Nevada and the Kensington gold mine in Alaska. The Company
also has a non-operating interest in the Endeavor mine in Australia
in addition to net smelter royalties on the Cerro Bayo mine in
Chile, the El Gallo mine in Mexico, and the Zaruma mine in Ecuador.
In addition, the Company owns strategic investment positions in
several silver and gold development companies with projects in
North and South America and has two silver-gold feasibility stage
projects - the La Preciosa project in Mexico and the Joaquin
project in Argentina. The Company conducts ongoing exploration
activities in Alaska, Argentina, Bolivia, Mexico, and Nevada.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated production, grades and
margins, operational consistency, cost reduction measures, capital
projects, liquidity position, mining, processing and recovery
rates, and future performance. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause Coeur's actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the risks and
hazards inherent in the mining business (including risks inherent
in developing large-scale mining projects, environmental hazards,
industrial accidents, weather or geologically related conditions),
changes in the market prices of gold and silver and a sustained
lower price environment, the uncertainties inherent in Coeur's
production, exploratory and developmental activities, including
risks relating to permitting and regulatory delays, ground
conditions, grade variability, any future labor disputes or work
stoppages, the uncertainties inherent in the estimation of gold and
silver ore reserves, changes that could result from Coeur's future
acquisition of new mining properties or businesses, reliance on
third parties to operate certain mines where Coeur owns silver
production and reserves and the absence of control over mining
operations in which Coeur or its subsidiaries hold royalty or
streaming interests and risks related to these mining operations
including results of mining and exploration activities,
environmental, economic and political risks of the jurisdiction in
which the mining operations are located, the loss of any
third-party smelter to which Coeur markets silver and gold, the
effects of environmental and other governmental regulations, the
risks inherent in the ownership or operation of or investment in
mining properties or businesses in foreign countries, Coeur's
ability to raise additional financing necessary to conduct its
business, make payments or refinance its debt, as well as other
uncertainties and risk factors set out in filings made from time to
time with the United States Securities and Exchange Commission, and
the Canadian securities regulators, including, without limitation,
Coeur's most recent reports on Form 10-K and Form 10-Q. Actual
results, developments and timetables could vary significantly from
the estimates presented. Readers are cautioned not to put undue
reliance on forward-looking statements. Coeur disclaims any intent
or obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, Coeur undertakes no obligation to comment on
analyses, expectations or statements made by third parties in
respect of Coeur, its financial or operating results or its
securities.
W. David Tyler, Coeur's Vice President, Technical Services and a
qualified person under Canadian National Instrument 43-101,
supervised the preparation of the scientific and technical
information concerning Coeur's mineral projects in this news
release. For a description of the key assumptions, parameters and
methods used to estimate mineral reserves and resources, as well as
data verification procedures and a general discussion of the extent
to which the estimates may be affected by any known environmental,
permitting, legal, title, taxation, socio-political, marketing or
other relevant factors, please see the Technical Reports for each
of Coeur's properties as filed on SEDAR at www.sedar.com.
The chart is also available at Newscom, www.newscom.com,
and via AP PhotoExpress.
CONTACT: For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5824
www.coeur.com
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