Coeur Reports Second Quarter Production Results
July 08 2014 - 5:05PM
Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced preliminary second quarter production of 4.5 million
ounces of silver and 61,025 ounces of gold, or 8.1 million silver
equivalent ounces1, an increase of 7% compared to the first
quarter.
Quarterly Production Results1
Click here to view quarterly production results.
2Q 2014 Operational Results1
Second quarter operational highlights for each of the Company's
mines are provided below.
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Palmarejo, Mexico |
2Q 2014 |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
Underground Operations: |
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|
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|
Tons mined |
177,359 |
209,854 |
237,384 |
219,909 |
183,267 |
Average silver grade
(oz/t) |
6.15 |
5.95 |
6.00 |
4.73 |
4.59 |
Average gold grade (oz/t) |
0.11 |
0.11 |
0.14 |
0.11 |
0.11 |
Surface Operations: |
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|
|
|
Tons mined |
320,583 |
358,222 |
361,493 |
385,379 |
363,758 |
Average silver grade
(oz/t) |
3.72 |
3.50 |
3.49 |
3.49 |
4.95 |
Average gold grade (oz/t) |
0.03 |
0.03 |
0.03 |
0.03 |
0.04 |
Processing: |
|
|
|
|
|
Total tons milled |
534,718 |
571,345 |
595,803 |
583,365 |
570,322 |
Average recovery rate – Ag |
75.6% |
73.3% |
74.5% |
81.8% |
76.5% |
Average recovery rate – Au |
78.9% |
78.0% |
80.6% |
87.6% |
81.2% |
Silver production ounces (000's) |
1,761 |
1,820 |
1,994 |
1,918 |
2,045 |
Gold production ounces |
23,706 |
25,216 |
35,486 |
29,893 |
28,191 |
Silver equivalent production ounces
(000's) |
3,183 |
3,333 |
4,123 |
3,712 |
3,736 |
- Lower processing rates, higher recoveries, and higher grades in
the second quarter are all consistent with the Company's stated
strategy of transitioning Palmarejo to a higher-margin, underground
operation.
- Further increases in recovery rates are expected in the second
half of the year due to improved management of the sources of
ore.
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San Bartolomé,
Bolivia |
2Q 2014 |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
Tons milled |
437,975 |
385,375 |
451,660 |
428,884 |
424,310 |
Average silver grade (oz/t) |
3.86 |
3.88 |
3.79 |
3.89 |
3.98 |
Average recovery rate |
87.5% |
90.5% |
87.6% |
91.5% |
90.3% |
Silver production ounces (000's) |
1,481 |
1,355 |
1,498 |
1,528 |
1,523 |
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Rochester, Nevada |
2Q 2014 |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
Tons placed |
3,329,582 |
3,640,861 |
4,569,588 |
2,678,906 |
2,457,423 |
Average silver grade (oz/t) |
0.58 |
0.59 |
0.57 |
0.53 |
0.58 |
Average gold grade (oz/t) |
0.003 |
0.003 |
0.002 |
0.003 |
0.003 |
Silver production ounces (000's) |
1,112 |
750 |
712 |
595 |
844 |
Gold production ounces |
9,230 |
8,192 |
7,890 |
4,824 |
9,404 |
Silver equivalent production ounces
(000's) |
1,666 |
1,242 |
1,185 |
884 |
1,408 |
- Silver production increased 48% and gold production increased
13% compared to the first quarter at Rochester resulting in the
highest quarterly silver equivalent production since the third
quarter 2007.
- Further production growth is expected in the second half of
2014 due to the continued ramp up of production from the Stage
III leach pad.
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Kensington,
Alaska |
2Q 2014 |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
Tons milled |
163,749 |
159,697 |
149,246 |
147,427 |
127,987 |
Average gold grade (oz/t) |
0.18 |
0.17 |
0.26 |
0.20 |
0.18 |
Average recovery rate |
94.5% |
94.5% |
96.0% |
96.5% |
98.2% |
Gold production ounces |
28,089 |
25,428 |
37,404 |
29,049 |
23,162 |
- Mill throughput averaged approximately 1,800 tons per day
during the second quarter, consistent with the first quarter.
- Higher average gold grade drove a 10% sequential increase in
gold production in the second quarter, which included an average
gold grade of 0.22 during the month of June.
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Endeavor,
Australia |
2Q 2014 |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
Silver production ounces (000's) |
129 |
168 |
135 |
162 |
221 |
- Silver production received from the Company's investment in the
Endeavor lead-zinc-silver mine in Australia decreased by 24% in the
second quarter.
- Coeur owns all silver production and reserves at Endeavor up to
a total of 20.0 million payable ounces. As of June 30, 2014,
Endeavor had produced 5.1 million payable ounces, or approximately
26% of the total, since Coeur initially acquired this interest in
2005.
1. Silver equivalence 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 second quarter on August 6, 2014 after the New York Stock
Exchange closes for trading. There will be a conference call on
August 7, 2014 at 11:00 a.m. Eastern time.
Dial-In Numbers: |
(877) 768-0708 (US and Canada) |
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(660) 422-4718 (International) |
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Conference ID: |
716 78 100 |
The conference call and presentation will also be webcast on the
Company's website 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 August 21,
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.
For Additional
Information: |
Bridget Freas, Director, Investor
Relations |
(312) 489-5819 |
Donna Mirandola, Director, Corporate
Communications |
(312) 489-5842 |
coeur.com |
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,
margins, 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 sedar.com.
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