Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced fourth quarter production of 4.3 million ounces of silver
and 64,534 ounces of gold, or 8.2 million silver-equivalent ounces.
Full-year 2014 production was 17.2 million silver ounces,
in-line with Company guidance of 17.0 - 18.0 million ounces, and
249,384 gold ounces, above Company guidance of 229,000 - 244,000
ounces. Full-year silver-equivalent production totaled 32.2 million
ounces, which was at the high-end of Company guidance of 30.7 -
32.7 million ounces.
In 2015, Coeur expects to produce 14.8 - 16.0 million ounces of
silver and 284,000 - 313,000 ounces of gold, or 31.8 - 34.8 million
silver-equivalent ounces, which represents up to an 8% increase
over 2014 silver-equivalent production. Coeur's 2015 total silver
and gold production guidance includes pro-rata production from the
previously announced acquisition of the Wharf gold mine from
Goldcorp, Inc. based on an assumed transaction closing date of
March 31, 2015. Wharf is expected to produce 85,000 - 90,000 ounces
of gold in 2015 based on guidance provided by Goldcorp on January
12, 2015.
Quarterly Production
Results1
A graph accompanying this release is available
at https://media.globenewswire.com/cache/29849/file/31232.pdf
1. Silver equivalence calculated using a 60:1 silver to gold
ratio.
2014 Production Results
(silver ounces in
thousands) |
Silver |
Gold |
Silver
Equivalent1 |
|
2014 Guidance |
2014 Result |
2014 Guidance |
2014 Result |
2014 Guidance |
2014 Result |
Palmarejo |
6,700 - 7,000 |
6,558 |
84,000 - 90,000 |
86,673 |
11,740 - 12,400 |
11,758 |
San Bartolomé |
5,700 - 6,000 |
5,852 |
— |
— |
5,700 - 6,000 |
5,852 |
Rochester |
4,100 - 4,400 |
4,189 |
38,000 - 42,000 |
44,888 |
6,380 - 6,920 |
6,882 |
Endeavor |
500 - 600 |
590 |
— |
— |
500 - 600 |
590 |
Kensington |
— |
— |
107,000 - 112,000 |
117,823 |
6,420 - 6,720 |
7,069 |
Total |
17,000 - 18,000 |
17,188 |
229,000 - 244,000 |
249,384 |
30,740 - 32,640 |
32,151 |
2015 Production Outlook
Coeur's 2015 total silver and gold production guidance is shown
below and includes pro-rata production from the previously
announced acquisition of the Wharf gold mine from Goldcorp based on
an assumed transaction closing date of March 31, 2015. Wharf is
expected to produce 85,000 - 90,000 ounces of gold in 2015 based on
guidance provided by Goldcorp on January 12, 2015.
(silver ounces in
thousands) |
Silver |
Gold |
Silver
Equivalent1 |
Palmarejo |
3,900 - 4,300 |
55,000 - 65,000 |
7,200 - 8,200 |
San Bartolomé |
5,800 - 6,100 |
— |
5,800 - 6,100 |
Rochester |
4,700 - 5,000 |
55,000 - 65,000 |
8,000 - 8,900 |
Endeavor |
400 - 600 |
— |
400 - 600 |
Kensington |
— |
110,000 - 115,000 |
6,600 - 6,900 |
Wharf |
— |
64,000 - 68,000 |
3,840 - 4,080 |
Total |
14,800 - 16,000 |
284,000 - 313,000 |
31,840 - 34,780 |
4Q 2014 Operational
Results1
Fourth quarter operational highlights for each of the Company's
mines are provided below.
|
|
|
|
|
|
Palmarejo, Mexico |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
4Q 2013 |
Underground Operations: |
|
|
|
|
|
Tons mined |
187,729 |
169,656 |
177,359 |
209,854 |
237,384 |
Average silver grade (oz/t) |
4.49 |
4.92 |
6.15 |
5.95 |
6.00 |
Average gold grade (oz/t) |
0.06 |
0.10 |
0.11 |
0.11 |
0.14 |
Surface Operations: |
|
|
|
|
|
Tons mined |
320,802 |
343,001 |
320,583 |
358,222 |
361,493 |
Average silver grade (oz/t) |
2.90 |
3.09 |
3.72 |
3.50 |
3.49 |
Average gold grade (oz/t) |
0.03 |
0.03 |
0.03 |
0.03 |
0.03 |
Processing: |
|
|
|
|
|
Total tons milled |
510,813 |
518,212 |
534,718 |
571,345 |
595,803 |
Average recovery rate – Ag |
80.2% |
82.7% |
75.6% |
73.3% |
74.5% |
Average recovery rate – Au |
78.7% |
86.9% |
78.9% |
78.0% |
80.6% |
Silver production ounces (000's) |
1,444 |
1,533 |
1,761 |
1,820 |
1,994 |
Gold production ounces |
15,237 |
22,514 |
23,706 |
25,216 |
35,486 |
Silver-equivalent production ounces
(000's) |
2,358 |
2,884 |
3,183 |
3,333 |
4,123 |
- Underground mining from Guadalupe averaged more than 500 tons
per day during December and is expected to reach 1,500 tons per day
in the third quarter of 2015.
- Guadalupe development ore grades caused a slight reduction in
fourth quarter underground silver and gold grades and recovery
rates.
- Open-pit operations expected to end in first half of 2015.
- Development of the decline to Independencia and, ultimately,
Don Ese now underway; initial production expected by year-end
assuming the close of the previously announced acquisition of
Paramount Gold and Silver Corp., which is expected to occur in the
second quarter of 2015.
|
|
|
|
|
|
Rochester, Nevada |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
4Q 2013 |
Tons placed |
3,876,944 |
3,892,421 |
3,329,582 |
3,640,861 |
4,569,588 |
Average silver grade (oz/t) |
0.60 |
0.51 |
0.58 |
0.59 |
0.57 |
Average gold grade (oz/t) |
0.004 |
0.005 |
0.003 |
0.003 |
0.002 |
Silver production ounces (000's) |
1,170 |
1,156 |
1,112 |
750 |
712 |
Gold production ounces |
15,764 |
11,702 |
9,230 |
8,192 |
7,890 |
Silver-equivalent production ounces
(000's) |
2,116 |
1,858 |
1,666 |
1,242 |
1,185 |
- Silver-equivalent production increased 14% compared to the
third quarter at Rochester.
- Full-year 2014 gold production of 44,888 ounces was above
Company guidance of 38,000 - 42,000 ounces.
- Silver and gold production expected to increase by double-digit
percentages in 2015 compared to 2014.
|
|
|
|
|
|
Kensington,
Alaska |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
4Q 2013 |
Tons milled |
167,417 |
145,097 |
163,749 |
159,697 |
149,246 |
Average gold grade (oz/t) |
0.21 |
0.23 |
0.18 |
0.17 |
0.26 |
Average recovery rate |
94.2% |
93.0% |
94.5% |
94.5% |
96.0% |
Gold production ounces |
33,533 |
30,773 |
28,089 |
25,428 |
36,469 |
- Kensington maintained strong throughput, grade, and recovery
performance in the fourth quarter.
- Full-year 2014 gold production of 117,823 ounces was above
Company guidance of 107,000 - 112,000 ounces.
- Coeur anticipates releasing a new mine plan at Kensington in
early 2015, which is expected to reflect higher-grade,
higher-margin production over the life of the mine.
|
|
|
|
|
|
San Bartolomé,
Bolivia |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
4Q 2013 |
Tons milled |
454,136 |
471,938 |
437,975 |
385,375 |
451,660 |
Average silver grade (oz/t) |
3.77 |
3.70 |
3.86 |
3.88 |
3.79 |
Average recovery rate |
88.0% |
86.5% |
87.5% |
90.5% |
87.6% |
Silver production ounces (000's) |
1,506 |
1,509 |
1,481 |
1,355 |
1,498 |
- Fourth quarter production results were consistent with prior
quarters.
- Full-year 2015 production is expected to be similar to 2014
levels.
|
|
|
|
|
|
Endeavor,
Australia |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
4Q 2013 |
Silver production ounces (000's) |
191 |
141 |
111 |
147 |
115 |
- Silver production received from the Company's silver stream
from the Endeavor mine in Australia increased by 35% in the fourth
quarter.
Financial Results and Conference Call
Coeur will report its full operational and financial results for
the fourth quarter and full-year 2014 on February 18, 2015 after
the New York Stock Exchange closes for trading. There will be a
conference call on February 19, 2015 at 11:00 a.m. Eastern
time.
Dial-In Numbers: |
(877) 768-0708 (US and Canada) |
|
(660) 422-4718 (International) |
|
|
Conference ID: |
716 78 103 |
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 of Exploration, Joe
Phillips, Senior Vice President and Chief Development Officer, and
other members of management.
A replay of the call will be available through March 5,
2015.
Replay numbers: |
(855) 859-2056 (US and Canada) |
|
(404) 537-3406 (International) |
|
|
Conference ID: |
716 78 103 |
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 2015 production, grades,
margins, mine plans, recovery rates, open-pit operations at
Palmarejo, development efforts, the closing of the acquisition of
the Wharf mine, the closing of the acquisition of Paramount 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 risk that
regulatory approvals of the Wharf transaction are not obtained on
the proposed terms and schedule, the risk that the Wharf
transaction will not be consummated, the risk that anticipated
production levels are not attained, 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
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. Information
regarding the historical estimates in respect of Wharf can be found
in Goldcorp's public disclosure documents filed on SEDAR.
CONTACT: Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
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