Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced preliminary first quarter production of 3.8 million
ounces of silver and 69,734 ounces of gold, or 8.0 million silver
equivalent ounces.
Quarterly Production
Results1
Click here for quarterly production results:
http://media.globenewswire.com/cache/29849/file/33071.pdf
1Q 2015 Operational
Results1
First quarter operational highlights for each of the Company's
mines are provided below.
Palmarejo, Mexico |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
Underground Operations: |
|
|
|
|
|
Tons mined |
149,150 |
187,729 |
169,656 |
177,359 |
209,854 |
Average silver grade
(oz/t) |
4.34 |
4.49 |
4.92 |
6.15 |
5.95 |
Average gold grade (oz/t) |
0.07 |
0.06 |
0.10 |
0.11 |
0.11 |
Surface Operations: |
|
|
|
|
|
Tons mined |
281,481 |
320,802 |
343,001 |
320,583 |
358,222 |
Average silver grade
(oz/t) |
3.79 |
2.90 |
3.09 |
3.72 |
3.50 |
Average gold grade (oz/t) |
0.04 |
0.03 |
0.03 |
0.03 |
0.03 |
Processing: |
|
|
|
|
|
Total tons milled |
451,918 |
510,813 |
518,212 |
534,718 |
571,345 |
Average recovery rate – Ag |
78.7% |
80.2% |
82.7% |
75.6% |
73.3% |
Average recovery rate – Au |
73.9% |
78.7% |
86.9% |
78.9% |
78.0% |
Silver production ounces (000's) |
1,354 |
1,444 |
1,533 |
1,761 |
1,820 |
Gold production ounces |
15,495 |
15,237 |
22,514 |
23,706 |
25,216 |
Silver-equivalent production ounces
(000's) |
2,284 |
2,358 |
2,884 |
3,183 |
3,333 |
- Production at Palmarejo continues to transition to underground
mining at the Guadalupe mine and - beginning in 2016 - the
Independencia mine while mining activities in the historic zones
are gradually reduced. Open-pit operations are expected to end in
the second quarter of 2015 and underground mining at the legacy
zones is expected to end by January 2016.
- Underground mining from Guadalupe continues to accelerate and
is on track to reach 1,500 tons per day in the third quarter.
- Development continues on the 1,000 meter decline to the
high-grade Independencia deposit, which combines Paramount Gold and
Silver Corp.'s Don Ese deposit with Coeur's Independencia
structure.
- Closing of the previously announced acquisition of Paramount
Gold and Silver Corp. is expected to occur on April 17, 2015.
- The oxide ore bypass in the process plant is expected to be
fully implemented during the second quarter and lead to higher
recovery rates. Recovery rates for both silver and gold were
slightly lower during the first quarter due to a higher proportion
of oxide ore from open pit mining.
Rochester, Nevada |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
Tons placed |
4,013,879 |
3,876,944 |
3,892,421 |
3,329,582 |
3,640,861 |
Average silver grade (oz/t) |
0.74 |
0.60 |
0.51 |
0.58 |
0.59 |
Average gold grade (oz/t) |
0.004 |
0.004 |
0.005 |
0.003 |
0.003 |
Silver production ounces (000's) |
1,144 |
1,170 |
1,156 |
1,112 |
750 |
Gold production ounces |
13,721 |
15,764 |
11,702 |
9,230 |
8,192 |
Silver-equivalent production ounces
(000's) |
1,967 |
2,116 |
1,858 |
1,666 |
1,242 |
- Silver equivalent production decreased 7% compared to the
fourth quarter at Rochester but remains significantly higher than
the first three quarters of 2014. The average silver grade
increased 23% compared to the fourth quarter.
- Silver equivalent production is expected to increase by 15% -
30% in 2015 compared to 2014.
Kensington,
Alaska |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
Tons milled |
147,969 |
167,417 |
145,097 |
163,749 |
159,697 |
Average gold grade (oz/t) |
0.24 |
0.21 |
0.23 |
0.18 |
0.17 |
Average recovery rate |
94.8% |
94.2% |
93.0% |
94.5% |
94.5% |
Gold production ounces |
33,909 |
33,533 |
30,773 |
28,089 |
25,428 |
- Higher head grades offset lower throughput at Kensington in the
first quarter, generating strong production in line with fourth
quarter performance.
- Coeur anticipates releasing a new mine plan at Kensington in
April 2015, which is expected to reflect higher-grade,
higher-margin production over the life of the mine.
San Bartolomé,
Bolivia |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
Tons milled |
406,951 |
454,136 |
471,938 |
437,975 |
385,375 |
Average silver grade (oz/t) |
3.65 |
3.77 |
3.70 |
3.86 |
3.88 |
Average recovery rate |
81.6% |
88.0% |
86.5% |
87.5% |
90.5% |
Silver production ounces (000's) |
1,213 |
1,506 |
1,509 |
1,481 |
1,355 |
- First quarter production at San Bartolomé was affected by
maintenance downtime and heavy rain, which resulted in processing a
higher proportion of lower-grade stockpiled ore.
- Full-year 2015 production, grade, and recovery rates are
expected to be similar to 2014 levels.
Wharf, South
Dakota |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
Tons placed |
415,996 |
|
|
|
|
Average gold equivalent grade (oz/t) |
0.007 |
|
|
|
|
Gold equivalent production ounces |
6,609 |
|
|
|
|
- First quarter operating results at Wharf represent production
since the acquisition closed on February 20, 2015.
Endeavor,
Australia |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
1Q 2014 |
Silver production ounces (000's) |
133 |
191 |
141 |
111 |
147 |
- Silver production received from the Company's silver stream
from the Endeavor mine in Australia decreased by 30% in the first
quarter.
2015 Production Outlook
Coeur's 2015 total silver and gold production guidance is
unchanged as shown below.
(silver and silver equivalent
ounces in thousands) |
Silver |
Gold |
Silver
Equivalent |
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 |
— |
74,000 - 78,000 |
4,440 - 4,680 |
Total |
14,800 - 16,000 |
294,000 - 323,000 |
32,440 - 35,380 |
1. Silver and gold 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 first quarter 2015 on May 4, 2015 after the New York Stock
Exchange closes for trading. There will be a conference call on May
5, 2015 at 11:00 a.m. Eastern time.
Dial-In Numbers: |
(888) 317-6016 (US) |
|
(855) 669-9657 (Canada) |
|
(412) 317-6016
(International) |
Conference ID: |
Coeur Mining, Inc. |
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 May 19, 2015.
Replay numbers: |
(877) 344-7529 (US) |
|
(855) 669-9658 (Canada) |
|
(412) 317-0088 (International) |
Conference ID: |
100 63 549 |
About Coeur
Coeur Mining is the largest U.S.-based primary silver producer
and a significant gold producer with five precious metals mines in
the Americas employing approximately 2,100 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, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. The Company also has a
non-operating interest in the Endeavor mine in Australia in
addition to royalties on the Cerro Bayo mine in Chile, the El Gallo
complex in Mexico, the Zaruma mine in Ecuador, and the Correnso
mine in New Zealand. 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, grades,
margins, mine plans, recovery rates, open-pit and underground
operations at Palmarejo, development efforts, the closing of the
Paramount acquisition, 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 the Paramount transaction will not be consummated on a
timely basis or at all, the risk that the anticipated benefits of
the Wharf and Paramount acquisitions are not realized, 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 report on Form 10-K. 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, Canadian investors should refer to the
Technical Reports for each of Coeur's properties as filed on SEDAR
at sedar.com.
CONTACT: For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
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