Unit costs
decline at Coeur's primary silver mines; 24% decrease in unit costs
at Rochester
Chicago,
Illinois - May 7, 2014 - Coeur Mining, Inc. (the "Company"
or "Coeur") (NYSE: CDE) reported first quarter 2014 revenue of
$159.6 million, adjusted net loss1 of $19.5
million, and cash flow from operating activities of $(9.6) million
($14.9 million before changes in operating assets and liabilities).
The Company realized average metal prices of $20.29 per silver
ounce and $1,298 per gold ounce during the quarter, which were 33%
and 20% lower, respectively, than during the first quarter of
2013.
Coeur is maintaining its 2014
production guidance of 17.0 - 18.2 million silver ounces and
220,000 - 238,000 gold ounces and is also maintaining its costs
applicable to sales guidance1 for 2014 of
$500 - $530 million. Coeur is maintaining its full-year guidance
for exploration ($23 - $28 million including capitalized drilling),
general and administrative expenses ($43 - $48 million), and
capital expenditures ($65 - $80 million). 2014 amortization is
expected to be approximately $190 million, which is higher than
prior guidance due primarily to a revised estimate of the impact of
the impairment charge recorded in the fourth quarter 2013.
First Quarter
Highlights
-
Silver production totaled 4.1 million ounces, a
7% increase compared to last year's first quarter
-
Gold production totaled 58,836 ounces, a 3%
increase compared to last year's first quarter
-
Costs applicable to sales at Coeur's primary
silver mines declined 6% from last year's first quarter to $13.25
per silver equivalent ounce1
-
Costs applicable to sales per silver equivalent
ounce1 were $12.67
at Rochester, down 24% from the fourth quarter and the lowest in
over two years
-
All-in sustaining costs per silver equivalent
ounce1 declined 4%
from last year's first quarter to $19.12
-
Kensington's quarterly free cash flow of $9.2
million was its highest in three years
-
Revenue of $159.6 million was down 7%
year-over-year due to lower average realized prices
-
Net loss was $37.2 million, or $0.36 per
share
-
Adjusted net loss1 was $19.5
million, or $0.19 per share
-
Cash, cash equivalents, and short-term
investments totaled $318.6 million at March 31, 2014
"I am pleased with the Company's
performance through April. Our production levels are on target and
our costs are at the low end of guidance, which reflects our
organization's improved ability to establish and execute reliable,
well-engineered plans," said Mitchell J. Krebs, Coeur's President
and Chief Executive Officer. "As we enter the mid-point of 2014, we
look forward to demonstrating Rochester's continuing production
growth and declining cost profile and to providing the anticipated
longer-term profile of our Palmarejo operation during the second
quarter. By the third quarter, we expect to complete the
feasibility study for the La Preciosa silver-gold project in Mexico
and plan to make a disciplined decision on how to proceed."
"In the meantime, we remain
focused on improvements in the efficiency and consistency of our
existing operations," Mr. Krebs concluded.
Financial Highlights
(Unaudited)
(Amounts in millions,
except per share amounts, average realized
prices, gold ounces
produced & sold, and per-ounce metrics) |
1Q 2014 |
4Q 2013 |
|
Quarter
Variance |
|
3Q 2013 |
2Q 2013 |
1Q 2013 |
Revenue |
$ |
159.6 |
|
$ |
168.8 |
|
|
(5 |
%) |
|
$ |
200.8 |
|
$ |
204.5 |
|
$ |
171.8 |
|
Costs Applicable to Sales1 |
$ |
106.9 |
|
$ |
101.4 |
|
|
5 |
% |
|
$ |
131.8 |
|
$ |
142.4 |
|
$ |
88.1 |
|
Net Income
(Loss) |
$ |
(37.2 |
) |
$ |
(581.5 |
) |
|
94 |
% |
|
$ |
(46.3 |
) |
$ |
(35.0 |
) |
$ |
12.3 |
|
Earnings Per Share |
$ |
(0.36 |
) |
$ |
(5.77 |
) |
|
94 |
% |
|
$ |
(0.46 |
) |
$ |
(0.35 |
) |
$ |
0.14 |
|
Adjusted Net Income
(Loss)1 |
$ |
(19.5 |
) |
$ |
(17.0 |
) |
|
(15 |
%) |
|
$ |
(29.3 |
) |
$ |
(28.9 |
) |
$ |
2.6 |
|
Adjusted Net Income (Loss)1 Per
Share |
$ |
(0.19 |
) |
$ |
(0.17 |
) |
|
(12 |
%) |
|
$ |
(0.29 |
) |
$ |
(0.29 |
) |
$ |
0.03 |
|
Weighted Average
Shares |
102.4 |
|
100.7 |
|
|
(2 |
%) |
|
100.8 |
|
99.8 |
|
90.0 |
|
Cash Flow From Operating
Activities |
$ |
(9.6 |
) |
$ |
10.4 |
|
|
(192 |
%) |
|
$ |
26.8 |
|
$ |
63.3 |
|
$ |
12.9 |
|
Capital
Expenditures |
$ |
11.9 |
|
$ |
28.1 |
|
|
(57 |
%) |
|
$ |
32.7 |
|
$ |
27.2 |
|
$ |
12.8 |
|
Cash, Cash Equivalents & Short-Term
Investments |
$ |
318.6 |
|
$ |
206.7 |
|
|
54 |
% |
|
$ |
211.4 |
|
$ |
249.5 |
|
$ |
332.8 |
|
Total Debt (net of debt
discount) |
$ |
464.2 |
|
$ |
308.6 |
|
|
50 |
% |
|
$ |
310.2 |
|
$ |
305.3 |
|
$ |
305.3 |
|
Average Realized Price Per Ounce -
Silver |
$ |
20.29 |
|
$ |
20.54 |
|
|
(1 |
%) |
|
$ |
21.06 |
|
$ |
22.86 |
|
$ |
30.30 |
|
Average Realized Price Per
Ounce - Gold |
$ |
1,298 |
|
$ |
1,249 |
|
|
4 |
% |
|
$ |
1,329 |
|
$ |
1,416 |
|
$ |
1,630 |
|
Silver Ounces Produced |
4.1 |
|
4.3 |
|
|
(5 |
%) |
|
4.2 |
|
4.6 |
|
3.8 |
|
Gold Ounces
Produced |
58,836 |
|
80,780 |
|
|
(27 |
%) |
|
63,766 |
|
60,757 |
|
56,913 |
|
Silver Ounces Sold |
3.9 |
|
4.0 |
|
|
(4 |
%) |
|
4.9 |
|
5.2 |
|
3.1 |
|
Gold Ounces
Sold |
62,578 |
|
72,712 |
|
|
(14 |
%) |
|
76,466 |
|
63,389 |
|
51,926 |
|
Silver Equivalent Ounces Sold |
7.6 |
|
8.4 |
|
|
(10 |
%) |
|
9.5 |
|
9.0 |
|
6.2 |
|
Costs Applicable to Sales per
Silver Equivalent Oz1 |
$ |
13.25 |
|
$ |
12.49 |
|
|
6 |
% |
|
$ |
13.82 |
|
$ |
14.88 |
|
$ |
14.07 |
|
All-in Sustaining Costs per Silver Equivalent
Oz1 |
$ |
19.12 |
|
$ |
17.73 |
|
|
8 |
% |
|
$ |
19.85 |
|
$ |
21.01 |
|
$ |
19.85 |
|
Financial
Results
Coeur's adjusted net
loss1 was $19.5
million, or $0.19 per share, in the first quarter 2014, compared
with $17.0 million, or $0.17 per share, in the fourth quarter 2013.
First quarter adjusted net loss1 excludes a
$7.8 million negative fair value adjustment, a $3.0 million
write-off of capitalized costs associated with the terminated
revolving credit facility, and a $2.6 million impairment of
marketable securities. Fair value adjustments are primarily driven
by changes to gold and silver prices, which adjust the estimated
future liabilities for the Palmarejo gold production royalty and
the Rochester 3.4% net smelter returns royalty.
The Company realized a net loss of
$37.2 million or $0.36 per share, in the first quarter 2014. Cash
flow from operating activities was $(9.6) million in the first
quarter, compared to $10.4 million in the fourth quarter 2013 due
primarily to a $12.4 million increase in ore added to the leach
pads at Rochester.
Downside
Price Protection
The Company extended its downside
metal price protection program during the first quarter, using put
spreads to protect a portion of expected production against a sharp
decrease in metal prices while selling intra-quarter,
out-of-the-money call options when appropriate to offset the net
cost of the put spreads. Instruments currently outstanding include
put spreads covering 1.25 million ounces of expected quarterly
silver production and 25,000 ounces of expected quarterly gold
production for each remaining quarter of 2014. Put options
purchased have a strike price of $18/ounce and $1,200/ounce for
silver and gold, respectively. Put options sold have a strike price
of $16/ounce and $1,050/ounce for silver and gold,
respectively.
Operations
Highlights of the first quarter
2014 results for each of the Company's mining operations are
provided below.
Palmarejo,
Mexico
(Dollars in millions,
expect per ounce amounts) |
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 ounces produced
(000's) |
1,820 |
1,994 |
1,918 |
2,045 |
1,646 |
Gold ounces produced |
25,216 |
35,487 |
29,893 |
28,191 |
22,965 |
Silver ounces sold
(000's) |
1,677 |
1,768 |
2,592 |
2,007 |
1,125 |
Gold ounces sold |
26,422 |
31,360 |
38,385 |
28,025 |
14,500 |
Revenues |
$68.0 |
$75.9 |
$104.5 |
$86.2 |
$57.4 |
Costs applicable to sales1 |
$43.6 |
$39.9 |
$66.8 |
$55.2 |
$26.7 |
Costs applicable to sales per
silver equivalent ounce1 |
$13.36 |
$10.90 |
$13.66 |
$14.97 |
$13.39 |
Exploration expense |
$1.0 |
$1.1 |
$0.9 |
$3.2 |
$2.0 |
Cash flow from
operations |
$10.2 |
$16.6 |
$50.8 |
$37.2 |
$10.1 |
Sustaining capital expenditures |
$3.7 |
$4.6 |
$7.1 |
$5.4 |
$2.6 |
Development capital
expenditures |
$- |
$4.3 |
$3.2 |
$3.8 |
$2.7 |
Total capital expenditures |
$3.7 |
$8.9 |
$10.3 |
$9.2 |
$5.3 |
Free cash flow (before
royalties) |
$6.5 |
$7.7 |
$40.5 |
$28.0 |
$4.8 |
Royalties paid (credited) |
$14.7 |
$13.5 |
$12.6 |
$15.5 |
$15.4 |
Free cash flow (after
royalties) |
$(8.2) |
$(5.8) |
$27.9 |
$12.5 |
$(10.6) |
-
Tons milled per day at Palmarejo declined 2%
compared to the fourth quarter, but included a higher proportion of
tonnage from the underground operations as Coeur transitions the
mine to a higher-grade, higher-margin operation
-
Recovery rates decreased compared to the fourth
quarter 2013; higher recoveries are expected for the balance of
2014 as a result of ore blending improvements and commissioning an
expanded Merrill Crowe plant
-
Capital expenditures of $3.7 million in the
first quarter were down significantly from $8.9 million in the
fourth quarter 2013
San
Bartolomé, Bolivia
(Dollars in millions,
expect per ounce amounts) |
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 ounces produced (000's) |
1,355 |
1,499 |
1,528 |
1,523 |
1,391 |
Silver ounces sold
(000's) |
1,357 |
1,485 |
1,334 |
2,151 |
1,109 |
Revenues |
$27.6 |
$30.6 |
$28.8 |
$49.2 |
$33.1 |
Costs applicable to sales1 |
$18.9 |
$20.6 |
$17.7 |
$32.8 |
$15.7 |
Costs applicable to sales per silver
equivalent ounce1 |
$13.93 |
$13.91 |
$13.25 |
$15.26 |
$14.14 |
Exploration
expense |
$- |
$- |
$- |
$- |
$- |
Cash flow from operations |
$4.5 |
$8.9 |
$7.6 |
$32.8 |
$(5.4) |
Sustaining capital
expenditures |
$1.4 |
$1.8 |
$3.0 |
$1.4 |
$- |
Development capital
expenditures |
$- |
$2.0 |
$1.2 |
$1.8 |
$- |
Total capital
expenditures |
$1.4 |
$3.8 |
$4.2 |
$3.2 |
$- |
Free cash flow |
$3.1 |
$6.5 |
$2.1 |
$29.5 |
$(5.9) |
Kensington,
Alaska
(Dollars in millions,
expect per ounce amounts) |
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 ounces produced |
25,428 |
37,404 |
29,049 |
23,162 |
25,206 |
Gold ounces
sold |
28,386 |
35,029 |
31,542 |
24,439 |
26,490 |
Revenues |
$36.1 |
$39.7 |
$38.9 |
$30.9 |
$39.3 |
Costs applicable to sales1 |
$28.5 |
$23.4 |
$27.5 |
$30.2 |
$23.6 |
Costs applicable to sales per gold
ounce1 |
$1,005 |
$667 |
$871 |
$1,234 |
$890 |
Exploration
expense |
$1.0 |
$1.5 |
$1.5 |
$0.6 |
$0.7 |
Cash flow from
operations |
$13.9 |
$11.3 |
$1.9 |
$7.6 |
$11.7 |
Sustaining capital
expenditures |
$4.7 |
$5.7 |
$4.9 |
$7.4 |
$3.3 |
Development capital
expenditures |
$- |
$- |
$- |
$- |
$- |
Total capital
expenditures |
$4.7 |
$5.7 |
$4.9 |
$7.4 |
$3.3 |
Free cash flow |
$9.2 |
$5.0 |
$(3.7) |
$(0.3) |
$7.4 |
-
Kensington milled approximately 1,800 tons per
day, up 11% from the fourth quarter at an average gold grade of
0.17, significantly below fourth quarter average grade but more in
line with the mine's average reserve grade
-
Costs applicable to sales per gold
ounce1 were $1,005,
higher than $667 in the fourth quarter 2013 due to lower gold
grades and production levels
-
Cash flow from operations of $13.9 million was
above the $11.3 million generated in the fourth quarter due
to a reduction in working capital
Rochester,
Nevada
(Dollars in millions,
expect per ounce amounts) |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Ore tons placed |
3,640,861 |
4,569,588 |
2,678,906 |
2,457,423 |
2,606,001 |
Silver ounces produced (000's) |
750 |
712 |
595 |
844 |
648 |
Gold ounces
produced |
8,192 |
7,890 |
4,824 |
9,404 |
8,742 |
Silver ounces sold (000's) |
695 |
621 |
741 |
851 |
715 |
Gold ounces
sold |
7,770 |
6,323 |
6,539 |
10,925 |
10,936 |
Revenues |
$24.2 |
$20.6 |
$24.3 |
$34.9 |
$39.5 |
Costs applicable to
sales1 |
$14.7 |
$16.6 |
$17.9 |
$22.5 |
$20.8 |
Costs applicable to sales per silver
equivalent ounce1 |
$12.67 |
$16.63 |
$15.83 |
$14.95 |
$15.15 |
Exploration
expense |
$1.2 |
$1.0 |
$0.6 |
$0.5 |
$0.5 |
Cash flow from operating
activities |
$(9.0) |
$(9.7) |
$(3.6) |
$(3.4) |
$5.6 |
Sustaining capital
expenditures |
$1.0 |
$7.2 |
$12.3 |
$6.6 |
$3.3 |
Development capital
expenditures |
$- |
$- |
$- |
$- |
$- |
Total capital
expenditures |
$1.0 |
$7.2 |
$12.3 |
$6.6 |
$3.3 |
Royalties paid (credited) |
$0.5 |
$(2.5) |
$- |
$- |
$1.0 |
Free cash flow (after
royalties) |
$(10.5) |
$(14.4) |
$(15.9) |
$(10.0) |
$1.3 |
-
Rochester produced 750,362 ounces of silver and
8,192 ounces of gold in the first quarter, increases of 5% and 4%,
respectively, compared to the fourth quarter 2013
-
Costs applicable to sales per silver equivalent
ounce1 were $12.67,
24% lower than the fourth quarter 2013
-
Rochester is expected to substantially increase
production levels during the remainder of 2014 at unit costs below
2013
-
Cash flow from operating activities of $(9.0)
million was only slightly improved from $(9.7) million in the
fourth quarter 2013 due to a $12.4 million increase in ore under
leach at end of the first quarter
-
Capital expenditures were $1.0 million during
the first quarter, significantly below the fourth quarter
2013
Endeavor,
Australia
(Dollars in millions,
expect per ounce amounts) |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Tons milled |
193,219 |
200,843 |
197,237 |
198,517 |
194,519 |
Average silver grade (oz/t) |
1.65 |
1.37 |
1.71 |
2.73 |
1.61 |
Average recovery
rate |
52.7% |
48.2% |
48.2% |
40.9% |
47.8% |
Silver ounces produced (000's) |
168 |
135 |
162 |
221 |
150 |
Silver ounces sold
(000's) |
133 |
135 |
207 |
219 |
109 |
Revenues |
$2.9 |
$2.1 |
$4.3 |
$3.5 |
$3.0 |
Costs applicable to sales1 |
$1.2 |
$0.9 |
$1.9 |
$1.7 |
$1.3 |
Costs applicable to sales per silver
equivalent ounce1 |
$8.90 |
$8.32 |
$10.09 |
$8.48 |
$12.13 |
Cash flow from operating
activities |
$1.5 |
$1.3 |
$1.2 |
$1.2 |
$1.6 |
Free cash flow |
$1.5 |
$1.3 |
$1.2 |
$1.2 |
$1.6 |
-
Higher silver grade and recovery rates in the
first quarter resulted in a 9% increase in silver production
-
Coeur owns all silver production and reserves at
Endeavor up to a total of 20.0 million payable ounces. At March 31,
2014, the Company has received 5.0 million payable ounces
La Preciosa,
Mexico
-
Coeur is continuing work on the feasibility
study which is expected to be completed in mid-2014. The Company
will then evaluate the economics of the project and determine
whether to proceed with construction
-
Feasibility work in 2014 indicates further
progress in improving the project's expected economics compared to
those reflected in the preliminary economic assessment
-
The Company spent $6.1 million during the first
quarter 2014 and remains on budget to spend a total of $25 million
for the feasibility work, including exploration activities,
engineering and design, land purchases, and sustainability projects
within the community
Exploration
Costs associated with exploration
activities for the first quarter 2014 were $4.2 million (expensed)
for discovery of new silver and gold mineralization and $1.1
million (capitalized) for definition and expansion of discoveries,
for a total of $5.3 million. Coeur's exploration program used up to
ten drill rigs during the first quarter: four drills at Palmarejo,
four at Kensington, and two at Rochester. This work resulted in
completion of over 76,703 feet (23,379 meters) of combined core and
reverse circulation drilling.
2014
Production Outlook
Coeur's 2014 silver and gold
production guidance remains unchanged as shown below.
(silver and silver
equivalent ounces in thousands) |
Silver |
Gold |
Silver Equivalent |
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 |
1. Adjusted net income (loss), all-in sustaining
costs, and costs applicable to sales are non-GAAP measures. Please
see tables in the Appendix for the reconciliation to U.S.
GAAP. Silver equivalence calculated using a 60:1 silver to gold
ratio.
Conference Call Information
Coeur will conduct a conference call and webcast
at coeur.com to discuss the Company's first quarter results on
May 8, 2014 at 11:00 a.m. Eastern time.
Dial-In Numbers: (877)
768-0708 (U.S. and Canada)
(660) 422-4718
(International)
Conference ID: 255 26 141
A replay of the call will be available on Coeur's
website through May 22, 2014.
Replay Numbers: (855) 859-2056 (U.S. and
Canada)
(404) 537-3406
(International)
Conference ID: 255 26 141
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 complex in Mexico, and the Zaruma mine in
Ecuador. In addition, the Company has two silver-gold feasibility
stage projects - the La Preciosa project in Mexico and the Joaquin
project in Argentina. The Company also conducts ongoing exploration
activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The
Company owns strategic investment positions in several silver and
gold development companies with projects in North and South
America.
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, costs,
capital and exploration expenditures, amortization, exploration and
development efforts, expectations regarding the La Preciosa
silver-gold project, Rochester's production growth and cost
profile, the longer-term profile of Palmarejo, recovery rates and
initiatives to minimize exposure to declining metal prices, and
improve efficiency and the consistency of our existing operations.
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.
The preliminary economic
assessment (PEA) referenced in this news release is preliminary in
nature and it includes inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
characterized as mineral reserves and there is no certainty that
the results reflected in the PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for
minability, selectivity, mining loss and dilution. There is no
certainty that the inferred mineral resources will be converted to
the measured and indicated categories or that the measured and
indicated mineral resources will be converted to the proven and
probable mineral reserve categories.
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 sedar.com.
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 may use
certain terms in public disclosures, such as "measured,"
"indicated," "inferred" and "resources," that are recognized by
Canadian regulations, but that SEC guidelines generally 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 which may be secured from us, or from the SEC's
website at http://www.sec.gov.
Non-U.S.
GAAP Measures
We supplement the reporting of our
financial information determined under United States generally
accepted accounting principles (U.S. GAAP) with certain non-U.S.
GAAP financial measures, including adjusted net income (loss),
costs applicable to sales, and all-in sustaining costs. We believe
that these adjusted measures provide meaningful information to
assist management, investors and analysts in understanding our
financial results and assessing our prospects for future
performance. We believe these adjusted financial measures are
important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We believe adjusted
net income (loss), costs applicable to sales, and all-in sustaining
costs are important measures in assessing the Company's overall
financial performance.
For
Additional Information:
Bridget Freas, Director, Investor
Relations
(312) 489-5819
Donna Mirandola, Director, Corporate
Communications
(312) 489-5842
coeur.com
Coeur Mining,
Inc. and Subsidiaries
Condensed Consolidated Statements of
Comprehensive Income (Loss)
|
|
Three months ended March 31, |
|
2014 |
|
|
2013 |
|
|
(In thousands, except share data) |
Revenue |
$ |
159,633 |
|
|
$ |
171,797 |
|
COSTS AND EXPENSES |
|
|
|
|
|
Costs
applicable to sales |
106,896 |
|
|
88,059 |
|
Amortization |
40,459 |
|
|
49,724 |
|
General
and administrative |
13,896 |
|
|
10,227 |
|
Exploration |
4,217 |
|
|
6,841 |
|
Write-downs |
- |
|
|
119 |
|
Pre-development, reclamation, and other |
6,984 |
|
|
5,197 |
|
Total
costs and expenses |
172,452 |
|
|
160,167 |
|
OTHER INCOME (EXPENSE), NET |
|
|
|
|
|
Fair
value adjustments, net |
(11,436 |
) |
|
17,796 |
|
Impairment of marketable securities |
(2,588 |
) |
|
(35 |
) |
Interest
income and other, net |
(1,983 |
) |
|
3,856 |
|
Interest expense, net of capitalized interest |
(13,054 |
) |
|
(9,732 |
) |
Total
other income (expense), net |
(29,061 |
) |
|
11,885 |
|
Income (loss) before income and mining taxes |
(41,880 |
) |
|
23,515 |
|
Income
and mining tax (expense) benefit |
4,689 |
|
|
(11,245 |
) |
NET
INCOME (LOSS) |
$ |
(37,191 |
) |
|
$ |
12,270 |
|
OTHER
COMPREHENSIVE INCOME (LOSS), net of tax: |
|
|
|
|
|
Unrealized gain (loss) on marketable securities,
net of tax of $(234) in 2014 |
371 |
|
|
(3,566 |
) |
Reclassification adjustments for impairment of marketable
securities, net of tax of $(1,001) in 2014 |
1,587 |
|
|
35 |
|
Other comprehensive income (loss) |
1,958 |
|
|
(3,531 |
) |
COMPREHENSIVE INCOME (LOSS) |
$ |
(35,233 |
) |
|
$ |
8,739 |
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER SHARE |
|
|
|
|
|
Basic |
$ |
(0.36 |
) |
|
$ |
0.14 |
|
|
|
|
|
|
|
Diluted |
$ |
(0.36 |
) |
|
$ |
0.14 |
|
Coeur Mining,
Inc. and Subsidiaries
Condensed Consolidated Statements of Cash
Flows
|
Three
months ended March 31, |
|
2014 |
|
|
2013 |
|
|
(In
thousands) |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
Net
income (loss) |
$ |
(37,191 |
) |
|
$ |
12,270 |
|
Adjustments: |
|
|
|
|
|
Amortization |
40,459 |
|
|
49,724 |
|
Accretion |
4,560 |
|
|
4,904 |
|
Deferred
income taxes |
(11,781 |
) |
|
7,425 |
|
Loss on termination of revolving credit facility |
3,035 |
|
|
- |
|
Fair
value adjustments, net |
10,557 |
|
|
(16,042 |
) |
Gain on foreign currency transactions |
(209 |
) |
|
(465 |
) |
Stock-based compensation |
2,565 |
|
|
1,096 |
|
(Gain) loss on sale of assets |
271 |
|
|
(868 |
) |
Impairment of marketable securities |
2,588 |
|
|
35 |
|
Write-downs |
- |
|
|
119 |
|
Other |
- |
|
|
526 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Receivables |
5,622 |
|
|
3,968 |
|
Prepaid expenses and other current assets |
(8,109 |
) |
|
(2,240 |
) |
Inventory
and ore on leach pads |
(13,912 |
) |
|
(20,493 |
) |
Accounts payable and accrued liabilities |
(8,082 |
) |
|
(27,025 |
) |
CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES |
(9,627 |
) |
|
12,934 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
Capital
expenditures |
(11,936 |
) |
|
(12,827 |
) |
Purchase of short-term investments and marketable
securities |
(46,220 |
) |
|
(4,649 |
) |
Sales and
maturities of short-term investments |
90 |
|
|
4,822 |
|
Other |
(25 |
) |
|
(10,610 |
) |
CASH USED
IN INVESTING ACTIVITIES |
(58,091 |
) |
|
(23,264 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
Issuance
of notes and bank borrowings |
153,000 |
|
|
300,000 |
|
Payments on long-term debt, capital leases, and
associated costs |
(4,111 |
) |
|
(55,340 |
) |
Gold
production royalty payments |
(14,683 |
) |
|
(15,448 |
) |
Share repurchases |
- |
|
|
(12,557 |
) |
Other |
(246 |
) |
|
(454 |
) |
CASH PROVIDED BY FINANCING ACTIVITIES |
133,960 |
|
|
216,201 |
|
INCREASE IN CASH AND CASH EQUIVALENTS |
66,242 |
|
|
205,871 |
|
Cash and cash equivalents at beginning of period |
206,690 |
|
|
125,440 |
|
Cash and
cash equivalents at end of period |
$ |
272,932 |
|
|
$ |
331,311 |
|
Coeur Mining,
Inc. and Subsidiaries
Condensed Consolidated Balance
Sheets
|
|
March 31,
2014 |
|
December 31,
2013 |
ASSETS |
|
(In thousands, except share data) |
CURRENT ASSETS |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
272,932 |
|
|
$ |
206,690 |
|
Investments |
|
45,628 |
|
|
- |
|
Receivables |
|
75,806 |
|
|
81,074 |
|
Ore on leach pads |
|
59,895 |
|
|
50,495 |
|
Inventory |
|
133,578 |
|
|
132,023 |
|
Deferred tax assets |
|
34,998 |
|
|
35,008 |
|
Prepaid
expenses and other |
|
30,835 |
|
|
25,940 |
|
|
|
653,672 |
|
|
531,230 |
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
Property, plant and equipment, net |
|
476,837 |
|
|
486,273 |
|
Mining
properties, net |
|
1,740,474 |
|
|
1,751,501 |
|
Ore on leach pads |
|
34,485 |
|
|
31,528 |
|
Restricted assets |
|
7,426 |
|
|
7,014 |
|
Marketable securities |
|
15,646 |
|
|
14,521 |
|
Receivables |
|
36,271 |
|
|
36,574 |
|
Debt issuance costs, net |
|
11,356 |
|
|
10,812 |
|
Deferred
tax assets |
|
829 |
|
|
1,189 |
|
Other |
|
9,989 |
|
|
15,336 |
|
TOTAL
ASSETS |
|
$ |
2,986,985 |
|
|
$ |
2,885,978 |
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Accounts payable |
|
$ |
49,958 |
|
|
$ |
53,847 |
|
Accrued
liabilities and other |
|
29,861 |
|
|
38,266 |
|
Debt |
|
8,095 |
|
|
2,505 |
|
Royalty
obligations |
|
50,250 |
|
|
48,019 |
|
Reclamation |
|
762 |
|
|
913 |
|
Deferred
tax liabilities |
|
1,858 |
|
|
1,011 |
|
|
|
140,784 |
|
|
144,561 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
Debt |
|
456,152 |
|
|
306,130 |
|
Royalty
obligations |
|
62,390 |
|
|
65,142 |
|
Reclamation |
|
58,630 |
|
|
57,515 |
|
Deferred
tax liabilities |
|
544,096 |
|
|
556,246 |
|
Other long-term liabilities |
|
27,236 |
|
|
25,817 |
|
|
|
1,148,504 |
|
|
1,010,850 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Common stock, par value $0.01 per share; authorized
150,000,000 shares, issued and outstanding 103,584,671 at March 31,
2014 and 102,843,003 at December 31, 2013 |
|
1,035 |
|
|
1,028 |
|
Additional paid-in capital |
|
2,783,520 |
|
|
2,781,164 |
|
Accumulated other comprehensive loss |
|
(2,948 |
) |
|
(4,906 |
) |
Accumulated deficit |
|
(1,083,910 |
) |
|
(1,046,719 |
) |
|
|
1,697,697 |
|
|
1,730,567 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
2,986,985 |
|
|
$ |
2,885,978 |
|
Adjusted Net
Income Reconciliation
(Dollars in thousands except per
share amounts) |
1Q 2014 |
|
4Q 2013 |
|
3Q 2013 |
|
2Q 2013 |
|
1Q 2013 |
Net
income (loss) |
$ |
(37,191 |
) |
|
$ |
(581,528 |
) |
|
$ |
(46,265 |
) |
|
$ |
(35,040 |
) |
|
$ |
12,270 |
|
Fair value adjustments, net |
7,827 |
|
|
(11,289 |
) |
|
13,717 |
|
|
(48,434 |
) |
|
(13,467 |
) |
Stock-based compensation |
2,453 |
|
|
1,034 |
|
|
358 |
|
|
2,308 |
|
|
1,085 |
|
Impairment of marketable securities |
2,588 |
|
|
211 |
|
|
870 |
|
|
17,192 |
|
|
35 |
|
Accretion of royalty obligation |
1,821 |
|
|
2,974 |
|
|
2,022 |
|
|
2,897 |
|
|
2,569 |
|
Write-downs |
- |
|
|
580,365 |
|
|
- |
|
|
86 |
|
|
119 |
|
Litigation settlement |
- |
|
|
- |
|
|
- |
|
|
32,046 |
|
|
- |
|
Gain on sale of building |
- |
|
|
(1,200 |
) |
|
- |
|
|
- |
|
|
- |
|
Gain
on commutation of reclamation bonding arrangements |
- |
|
|
(7,609 |
) |
|
- |
|
|
- |
|
|
- |
|
Loss on revolver termination |
3,035 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Adjusted net income (loss) |
$ |
(19,467 |
) |
|
$ |
(17,042 |
) |
|
$ |
(29,298 |
) |
|
$ |
(28,945 |
) |
|
$ |
2,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per
share |
$ |
(0.19 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.29 |
) |
|
$ |
0.03 |
|
Reconciliation
of Non-U.S. GAAP Costs Applicable to Sales per Silver Equivalent
Ounce
for Three Months Ended March 31,
2014
|
|
Silver |
|
Gold |
|
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales, including
amortization (U.S. GAAP) |
|
$ |
62,233 |
|
|
$ |
23,358 |
|
|
$ |
19,159 |
|
|
$ |
2,135 |
|
|
$ |
106,885 |
|
|
$ |
39,240 |
|
|
$ |
146,125 |
|
Amortization |
|
18,659 |
|
|
4,457 |
|
|
4,451 |
|
|
953 |
|
|
28,520 |
|
|
10,709 |
|
|
39,229 |
|
Costs applicable to sales |
|
$ |
43,574 |
|
|
$ |
18,901 |
|
|
$ |
14,708 |
|
|
$ |
1,182 |
|
|
$ |
78,365 |
|
|
$ |
28,531 |
|
|
$ |
106,896 |
|
Silver equivalent ounces
sold |
|
3,261,982 |
|
|
1,357,307 |
|
|
1,160,829 |
|
|
132,800 |
|
|
5,912,918 |
|
|
|
|
|
|
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,386 |
|
|
|
|
Costs applicable to sales per
ounce |
|
$ |
13.36 |
|
|
$ |
13.93 |
|
|
$ |
12.67 |
|
|
$ |
8.90 |
|
|
$ |
13.25 |
|
|
$ |
1,005 |
|
|
|
|
Treatment and refining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,672 |
|
Sustaining
capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,936 |
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,896 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,217 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,286 |
|
Project/pre-development
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,698 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
145,601 |
|
Silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,912,918 |
|
Kensington silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,703,160 |
|
Consolidated silver
equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,616,078 |
|
All-in sustaining costs per silver equivalent
ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
19.12 |
|
Reconciliation
of Non-U.S. GAAP Costs Applicable to Sales per Silver Equivalent
Ounce
for Three Months Ended December 31,
2013
|
|
Silver |
|
Gold |
|
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales, including
amortization (U.S. GAAP) |
|
$ |
75,690 |
|
|
$ |
25,513 |
|
|
$ |
19,167 |
|
|
$ |
1,741 |
|
|
$ |
122,111 |
|
|
$ |
41,590 |
|
|
$ |
163,701 |
|
Amortization |
|
35,894 |
|
|
4,851 |
|
|
2,529 |
|
|
801 |
|
|
44,075 |
|
|
18,218 |
|
|
62,293 |
|
Costs applicable to sales |
|
$ |
39,796 |
|
|
$ |
20,662 |
|
|
$ |
16,638 |
|
|
$ |
940 |
|
|
$ |
78,036 |
|
|
$ |
23,372 |
|
|
$ |
101,408 |
|
Silver equivalent ounces
sold |
|
3,649,557 |
|
|
1,485,217 |
|
|
1,000,568 |
|
|
112,965 |
|
|
6,248,307 |
|
|
|
|
|
|
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,029 |
|
|
|
|
Costs applicable to sales per
ounce |
|
$ |
10.90 |
|
|
$ |
13.91 |
|
|
$ |
16.63 |
|
|
$ |
8.32 |
|
|
$ |
12.49 |
|
|
$ |
667 |
|
|
|
|
Treatment and refining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,321 |
|
Sustaining
capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,674 |
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,851 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,440 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
938 |
|
Project/pre-development
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,456 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
148,088 |
|
Silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,248,307 |
|
Kensington silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,101,740 |
|
Consolidated silver
equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,350,047 |
|
All-in sustaining costs per silver equivalent
ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
17.73 |
|
Reconciliation
of Non-U.S. GAAP Costs Applicable to Sales per Silver Equivalent
Ounce
for Three Months Ended September 30,
2013
|
|
Silver |
|
Gold |
|
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales, including
amortization (U.S. GAAP) |
|
$ |
100,314 |
|
|
$ |
22,460 |
|
|
$ |
20,458 |
|
|
$ |
2,765 |
|
|
$ |
145,997 |
|
|
$ |
45,571 |
|
|
$ |
191,568 |
|
Amortization |
|
33,475 |
|
|
4,788 |
|
|
2,519 |
|
|
894 |
|
|
41,676 |
|
|
18,086 |
|
|
59,762 |
|
Costs applicable to sales |
|
$ |
66,839 |
|
|
$ |
17,672 |
|
|
$ |
17,939 |
|
|
$ |
1,871 |
|
|
$ |
104,321 |
|
|
$ |
27,485 |
|
|
$ |
131,806 |
|
Silver equivalent ounces
sold |
|
4,894,600 |
|
|
1,334,066 |
|
|
1,133,525 |
|
|
185,505 |
|
|
7,547,696 |
|
|
|
|
|
|
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,542 |
|
|
|
|
Costs applicable to sales per
ounce |
|
$ |
13.66 |
|
|
$ |
13.25 |
|
|
$ |
15.83 |
|
|
$ |
10.09 |
|
|
$ |
13.82 |
|
|
$ |
871 |
|
|
|
|
Treatment and refining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,159 |
|
Sustaining
capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,978 |
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,240 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,305 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
968 |
|
Project/pre-development
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,955 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
187,411 |
|
Silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,547,696 |
|
Kensington silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,892,520 |
|
Consolidated silver
equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,440,216 |
|
All-in sustaining costs per silver equivalent
ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
19.85 |
|
Reconciliation
of Non-U.S. GAAP Costs Applicable to Sales per Silver Equivalent
Ounce
for Three Months Ended June 30,
2013
|
|
Silver |
|
Gold |
|
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales, including
amortization (U.S. GAAP) |
|
$ |
90,603 |
|
|
$ |
37,639 |
|
|
$ |
24,506 |
|
|
$ |
2,903 |
|
|
$ |
155,651 |
|
|
$ |
43,313 |
|
|
$ |
198,964 |
|
Amortization |
|
35,384 |
|
|
4,825 |
|
|
1,990 |
|
|
1,220 |
|
|
43,419 |
|
|
13,159 |
|
|
56,578 |
|
Costs applicable to sales |
|
$ |
55,219 |
|
|
$ |
32,814 |
|
|
$ |
22,516 |
|
|
$ |
1,683 |
|
|
$ |
112,232 |
|
|
$ |
30,154 |
|
|
$ |
142,386 |
|
Silver equivalent ounces
sold |
|
3,688,500 |
|
|
2,151,000 |
|
|
1,506,508 |
|
|
198,419 |
|
|
7,544,427 |
|
|
|
|
|
|
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,439 |
|
|
|
|
Costs applicable to sales per
ounce |
|
$ |
14.97 |
|
|
$ |
15.26 |
|
|
$ |
14.95 |
|
|
$ |
8.48 |
|
|
$ |
14.88 |
|
|
$ |
1,234 |
|
|
|
|
Treatment and refining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,317 |
|
Sustaining
capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,919 |
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,025 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,774 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
936 |
|
Project/pre-development
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
973 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
189,330 |
|
Silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,544,427 |
|
Kensington silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,466,340 |
|
Consolidated silver
equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,010,767 |
|
All-in sustaining costs per silver equivalent
ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
21.01 |
|
Reconciliation
of Non-U.S. GAAP Costs Applicable to Sales per Silver Equivalent
Ounce
for Three Months Ended March 31,
2013
|
|
Silver |
|
Gold |
|
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales, including
amortization (U.S. GAAP) |
|
$ |
55,500 |
|
|
$ |
20,318 |
|
|
$ |
22,629 |
|
|
$ |
2,149 |
|
|
$ |
100,596 |
|
|
$ |
36,851 |
|
|
$ |
137,447 |
|
Amortization |
|
28,782 |
|
|
4,640 |
|
|
1,852 |
|
|
828 |
|
|
36,102 |
|
|
13,286 |
|
|
49,388 |
|
Costs applicable to sales |
|
$ |
26,718 |
|
|
$ |
15,678 |
|
|
$ |
20,777 |
|
|
$ |
1,321 |
|
|
$ |
64,494 |
|
|
$ |
23,565 |
|
|
$ |
88,059 |
|
Silver equivalent ounces
sold |
|
1,995,000 |
|
|
1,108,874 |
|
|
1,371,598 |
|
|
108,942 |
|
|
4,584,414 |
|
|
|
|
|
|
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,490 |
|
|
|
|
Costs applicable to sales per
ounce |
|
$ |
13.39 |
|
|
$ |
14.14 |
|
|
$ |
15.15 |
|
|
$ |
12.13 |
|
|
$ |
14.07 |
|
|
$ |
890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,535 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,672 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,227 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,841 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
712 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,485 |
|
All-in sustaining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
122,531 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,584,414 |
|
Kensington silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,589,400 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,173,814 |
|
All-in sustaining costs per
silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
19.85 |
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Coeur Mining, Inc. via Globenewswire
HUG#1783280
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