Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced third quarter production of 3.5 million ounces of silver
and 84,871 ounces of gold, or 8.6 million silver equivalent1
ounces. Coeur is raising its 2016 production guidance to 34.4 -
37.0 million silver equivalent1 ounces from 33.8 - 36.8 million
silver equivalent1 ounces.
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Quarterly Production Results (Graphic:
Business Wire)
Third quarter production highlights for each of Coeur's
operations are provided below.
Palmarejo, Mexico
3Q 2016 2Q 2016 1Q 2016
4Q 2015 3Q 2015 Underground Operations:
Tons mined
253,681 283,971 215,642 189,383 190,399 Average
silver grade (oz/t)
3.96 5.40 4.21 3.96 4.11 Average gold
grade (oz/t)
0.08 0.08 0.07 0.06 0.10 Surface Operations:
Tons mined
— 1,695 35,211 102,018 247,071 Average silver
grade (oz/t)
— 7.77 4.18 3.86 3.56 Average gold grade (oz/t)
— 0.07 0.04 0.03 0.03 Processing: Total tons milled
274,644 270,142 246,533 301,274 427,635 Average recovery
rate – Ag
85.5% 89.5% 89.1% 95.4% 87.9% Average recovery
rate – Au
77.7% 86.4% 92.1% 88.8% 84.7% Silver production
ounces (000's)
933 1,307 933 1,126 1,422 Gold production
ounces
16,608 18,731 14,668 14,326 22,974
Silver-equivalent
1 production ounces (000's)
1,930
2,431 1,813 1,985 2,800
- Transition to lower-tonnage,
higher-grade, higher-margin underground operations is progressing
on schedule with Guadalupe mining nearly 2,300 tons per day during
the quarter, surpassing its target mining rate of 2,200 tons per
day
- Development of Independencia remains
on-track to achieve a mining rate of 1,000 tons per day by
year-end
- Silver and gold production decreased as
a result of the installation of a new Merrill Crowe processing
circuit during the quarter. Recovery rates and grades are expected
to increase in the fourth quarter
- Limited mining of the legacy
underground area has extended into the fourth quarter
- Increasing full-year 2016 production
guidance to 4.1 - 4.6 million silver ounces from 3.9 - 4.4 million
silver ounces and 70,000 - 75,000 gold ounces from 67,000 - 72,000
gold ounces
Rochester, Nevada
3Q 2016 2Q 2016 1Q 2016
4Q 2015 3Q 2015 Tons placed
4,901,039 6,402,013 4,374,459 4,411,590 4,128,868 Average
silver grade (oz/t)
0.54 0.54 0.64 0.60 0.59 Average gold
grade (oz/t)
0.003 0.003 0.004 0.003 0.003 Silver production
ounces (000's)
1,161 1,197 929 1,107 1,086 Gold production
ounces
12,120 13,940 10,460 11,564 10,892 Silver
equivalent
1 production ounces (000's)
1,888 2,033
1,557 1,800 1,740
- Silver equivalent1 production decreased
7% quarter-over-quarter due to longer-than-expected recovery time
from the Stage III leach pad
- Crushing rates remained strong while
tons placed moderated in the third quarter as a result of a lower
portion of run-of-mine material placed
- Construction of the Stage IV leach pad
expansion commenced in July 2016 and is expected to be complete in
mid-2017
- Revising full-year 2016 silver
production guidance to 4.5 - 5.0 million ounces from 4.8 - 5.3
million ounces and maintaining gold production guidance of 48,000 -
55,000 ounces
Kensington, Alaska
3Q 2016 2Q 2016 1Q 2016
4Q 2015 3Q 2015 Tons milled
140,322 157,117 159,360 159,666 165,198 Average gold grade
(oz/t)
0.20 0.22 0.21 0.22 0.19 Average recovery rate
94.8% 94.1% 95.8% 96.0% 93.9% Gold production ounces
26,459 32,210 31,974 33,713 28,799
- Gold production decreased 18%
quarter-over-quarter due to mill downtime at the end of the quarter
relating to a blocked tailings line. The blockage has been cleared
and the mill has resumed operations at full capacity
- Development of the Jualin decline
continues to advance with initial production expected in the second
half of 2017
- Raising the low-end of full-year 2016
production guidance to 120,000 - 125,000 gold ounces from 115,000 -
125,000 gold ounces
Wharf, South
Dakota 3Q 2016 2Q 2016 1Q
2016 4Q 2015 3Q 2015 Tons placed
1,199,008 915,631 974,663 1,147,130 1,149,744 Average gold
grade (oz/t)
0.033 0.037 0.031 0.032 0.035 Average plant
recovery rate - Au
95.5% 89.6% 96.6% 97.3% 92.8% Gold
production ounces
29,684 27,846 20,970 31,947 23,104 Silver
production ounces (000's)
25 35 13 18 19 Gold
equivalent
1 production ounces
30,106 28,433 21,186
32,231 23,427
- Gold equivalent1 production remained
strong during the third quarter, increasing 6% over the second
quarter largely due to a 31% increase in tons placed as well as a
return to higher plant recovery rates
- Increasing full-year 2016 production
guidance to 95,000 - 100,000 gold ounces from 90,000 - 95,000 gold
ounces
San Bartolomé,
Bolivia 3Q 2016 2Q 2016
1Q 2016 4Q 2015 3Q 2015 Tons
milled
450,409 440,441 407,806 475,695 373,201 Average
silver grade (oz/t)
3.43 3.79 3.64 3.84 3.76 Average
recovery rate
88.7% 87.4% 93.1% 84.9% 84.0% Silver
production ounces (000's)
1,370 1,458 1,382 1,550 1,178
- Silver production decreased 6%
quarter-over-quarter. While civil unrest in Bolivia during the
quarter did not impact mining operations, it hindered shipments of
purchased ore to San Bartolomé's processing facilities. This led to
a lower contribution of 27% of purchased ore to total production,
down from approximately one-third in the second quarter
- Revising full-year 2016 production
guidance to 5.5 - 5.8 million silver ounces from 5.8 - 6.1 million
silver ounces
Coeur Capital, Inc.
Endeavor,
Australia 3Q 2016 2Q 2016
1Q 2016 4Q 2015 3Q 2015 Silver
production ounces (000's)
56 33 115 171 121
- Silver production received from the
Company's silver stream on the Endeavor mine in Australia remained
at decreased levels following a curtailment of production by the
operator earlier this year due to lower lead and zinc prices
- Coeur is increasing its revised 2016
production guidance for Endeavor to 215,000 - 235,000 silver ounces
from 175,000 - 200,000 silver ounces
2016 Production Outlook
Coeur's 2016 silver and gold production guidance has been
revised as shown below.
(silver and silver equivalent ounces in thousands)
Silver Gold Silver
Equivalent1 Palmarejo 4,100 - 4,600
70,000 - 75,000 8,300 - 9,100
Rochester 4,500 - 5,000
48,000 - 55,000 7,380 - 8,300
San Bartolomé 5,500 - 5,800 —
5,500 - 5,800
Endeavor 215 - 235 — 215 - 235
Kensington — 120,000 - 125,000 7,200 - 7,500
Wharf
80 - 100 95,000 - 100,000 5,780 - 6,100
Total 14,395 - 15,735 333,000 - 355,000
34,375 - 37,035
Financial Results and Conference
Call
Coeur will report its full operational and financial results for
third quarter 2016 on October 26, 2016 after the New York Stock
Exchange closes for trading. There will be a conference call on
October 27, 2016 at 11:00 a.m. Eastern time.
Dial-In Numbers: (855) 560-2581 (US)
(855) 669-9657 (Canada) (412) 542-4166 (International)
Conference ID: Coeur Mining
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, Senior Vice President of Exploration, and
other members of management. A replay of the call will be available
through November 10, 2016.
Replay numbers: (877) 344-7529 (US)
(855) 669-9658 (Canada) (412) 317-0088 (International)
Conference ID: 100 94 273
About Coeur
Coeur Mining is a well-diversified, growing precious metals
producer with five precious metals mines in the Americas employing
approximately 2,000 people. Coeur produces from its wholly owned
operations: the Palmarejo silver-gold complex in Mexico, the
Rochester silver-gold mine in Nevada, the Kensington gold mine in
Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé
silver mine in Bolivia. The Company also has a non-operating
interest in the Endeavor mine in Australia as well as a royalty
interest in Ecuador. In addition, the Company has two silver-gold
exploration stage projects - the La Preciosa project in Mexico and
the Joaquin project in Argentina. Coeur conducts ongoing
exploration activities in Alaska, Nevada, South Dakota and
Mexico.
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, operations
at the Palmarejo complex, mining rates, recovery rates, grades,
expansion at Rochester, development efforts at Kensington and
crushing rates. 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
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.
Dana Willis, Coeur's Director, Resource Geology and a qualified
person under Canadian National Instrument 43-101, approved 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.
Notes 1. Silver and gold equivalence calculated using a
60:1 silver to gold ratio.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161006006506/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5837orRebecca Hussey, Manager,
Investor Relations(312) 489-5827www.coeur.com
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