UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 8, 2014
Coeur Mining, Inc.
(Exact name of registrant as specified in its charter)
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Delaware (State or other jurisdiction of incorporation or organization) | 1-8641 (Commission File Number) | 82-0109423 (IRS Employer Identification No.) |
104 S. Michigan Avenue
Suite 900
Chicago, Illinois 60603
(Address of Principal Executive Offices)
(312) 489-5800
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On July 8, 2014, Coeur Mining, Inc. issued a press release announcing production for the quarter ended June 30, 2014. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
In connection with investor presentations, on July 8, 2014, Coeur Mining, Inc. posted updated presentation materials on its website. The presentation materials may be obtained at www.coeur.com/investor-relations/presentations.
Item 9.01. Financial Statements and Exhibits.
(d) List of Exhibits
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Exhibit No. | | Description |
Exhibit 99.1 | | Press release dated July 8, 2014 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| COEUR MINING, INC. |
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Date: July 8, 2014 | By: /s/ Peter C. Mitchell |
| Name: Peter C. Mitchell Title: Senior Vice President and Chief Financial Officer |
Exhibit Index
Exhibit No. Description
Exhibit 99.1 Press Release dated July 8, 2014
NEWS RELEASE 
Coeur Reports Second Quarter Production Results
48% Increase in Rochester’s Quarterly Silver Production to Highest Level in Nearly Seven Years
Chicago, Illinois - July 8, 2014 - 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
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: | | | | | |
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: | | | | | |
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 |
1
1. Silver equivalence calculated using a 60:1 silver to gold ratio.
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• | 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. |
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• | 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 |
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• | 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. |
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• | 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 |
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• | Mill throughput averaged approximately 1,800 tons per day during the second quarter, consistent with the first quarter. |
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• | 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 |
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• | Silver production received from the Company’s investment in the Endeavor lead-zinc-silver mine in Australia decreased by 24% in the second quarter. |
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• | 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. |
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)
(660) 422-4718 (International)
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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