Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced fourth quarter production of 3.9 million ounces of silver
and 102,500 ounces of gold, or 10.0 million silver
equivalent1 ounces, the highest quarterly silver equivalent1
production in Company history.
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View the full release here:
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Quarterly production results (Graphic:
Business Wire)
Full-year 2016 production was 14.8 million ounces of silver,
in-line with the Company's guidance of 14.4 - 15.7 million ounces,
and 358,170 ounces of gold, above the high-end of Company guidance
of 333,000 - 355,000 gold ounces. Full-year silver equivalent1
production totaled 36.3 million ounces, in line with guidance of
34.4 - 37.0 million ounces.
In 2017, Coeur expects to produce 16.4 - 18.0 million ounces of
silver and 362,000 - 387,000 ounces of gold, or 38.1 - 41.2 million
silver equivalent1 ounces, an increase of over 9%
year-over-year based on the midpoint of the 2017 guidance
range.
Fourth quarter production highlights for each of Coeur's
operations are provided below.
Palmarejo, Mexico 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Underground Operations:
Tons mined
1,047,000 293,706 253,681 283,971 215,642 701,662
189,383 Average silver grade (oz/t)
4.69 5.00 3.96 5.40 4.21
4.06 3.96 Average gold grade (oz/t)
0.08 0.09 0.08 0.08 0.07
0.08 0.06 Surface Operations: Tons mined
36,906 — — 1,695
35,211 888,432 102,018 Average silver grade (oz/t)
4.34 — —
7.77 4.18 3.64 3.86 Average gold grade (oz/t)
0.04 — — 0.07
0.04 0.03 0.03 Processing: Total tons milled
1,078,888
287,569 274,644 270,142 246,533 1,616,668 301,274 Average recovery
rate – Ag
88.4% 89.1% 85.5% 89.5% 89.1% 84.3% 95.4% Average
recovery rate – Au
86.5% 90.4% 77.7% 86.4% 92.1% 80.6% 88.8%
Silver production ounces (000's)
4,442 1,269 933 1,307 933
5,149 1,126 Gold production ounces
73,913 23,906 16,608
18,731 14,668 70,922 14,326 Silver-equivalent
1 production
ounces (000's)
8,877 2,703 1,930 2,431 1,813 9,404 1,985
- Ramp-up of higher-grade, higher-margin
underground operations advancing on schedule with Guadalupe and
Independencia now mining at approximately 2,400 and 1,000 tons per
day, respectively; targeting combined mining rate of 4,500 tons per
day by year-end 2017 compared to an average of approximately 2,500
tons per day in 2016
- Full-year 2016 production of 4.4
million silver ounces and 73,913 gold ounces, or 8.9 million silver
equivalent1 ounces, was in-line with the Company's guidance
range
- Full-year 2016 silver and gold grades
improved 22% and 33% year-over-year to 4.68 and 0.08 oz/t,
respectively
- Full-year 2016 recovery rates for
silver and gold increased 4% and 6% to 88.4% and 86.5%,
respectively, compared to full-year 2015 recovery rates
- Mining of the legacy underground area
was completed during the fourth quarter
- Full-year 2017 production expected to
increase to 6.5 - 7.0 million silver ounces and 110,000 - 120,000
gold ounces, or 13.1 - 14.2 million silver equivalent1 ounces
Rochester, Nevada 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Tons placed
19,555,998 3,878,487 4,901,039 6,402,013 4,374,459
16,414,302 4,411,590 Average silver grade (oz/t)
0.57 0.57
0.54 0.54 0.64 0.63 0.60 Average gold grade (oz/t)
0.003
0.002 0.003 0.003 0.004 0.003 0.003 Silver production ounces
(000's)
4,564 1,277 1,161 1,197 929 4,631 1,107 Gold
production ounces
50,751 14,231 12,120 13,940 10,460 52,588
11,564 Silver equivalent
1 production ounces (000's)
7,609 2,131 1,888 2,033 1,557 7,786 1,800
- Silver equivalent1 production increased
13% quarter-over-quarter due to improved Stage III leach pad
performance resulting from strong ore placement rates throughout
2016
- Tons placed of 19.6 million in 2016 was
approximately 19% higher year-over-year and the highest since
Rochester first began operating in 1986
- Full-year 2016 production of 4.6
million silver ounces and 50,751 gold ounces, or 7.6 million silver
equivalent1 ounces, was in-line with the Company's guidance
range
- Construction of the Stage IV leach pad
expansion continues on schedule and on budget with commissioning
expected in early 3Q 2017
- Full-year 2017 production expected to
be 4.2 - 4.7 million ounces of silver and 47,000 - 52,000 ounces of
gold, or 7.0 - 7.8 million silver equivalent1 ounces
Kensington, Alaska 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Tons milled
620,209
163,410 140,322 157,117 159,360 660,464 159,666 Average gold grade
(oz/t)
0.21 0.22 0.20 0.22 0.21 0.20 0.22 Average recovery
rate
94.7% 94.4% 94.8% 94.1% 95.8% 94.9% 96.0% Gold
production ounces
124,331 33,688 26,459 32,210 31,974
126,266 33,713
- Fourth quarter gold production was the
highest of the year, increasing 27% quarter-over-quarter to 33,688
ounces due to higher tons milled and higher grades
- Full-year 2016 production of 124,331
ounces of gold was in-line with the Company's guidance range and
relatively flat year-over-year
- Development of the Jualin decline
continues on schedule with 64% completed as of year-end
- Gold production expected to be 120,000
- 125,000 ounces in 2017
Wharf,
South Dakota 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Tons placed
4,268,105
1,178,803 1,199,008 915,631 974,663 3,600,279 1,147,130 Average
gold grade (oz/t)
0.032 0.027 0.033 0.037 0.031 0.030 0.032
Average plant recovery rate - Au
94.3% 98.9% 94.4% 88.5%
95.9% 89.5% 96.3% Gold production ounces
109,175 30,675
29,684 27,846 20,970 78,132 31,947 Silver production ounces (000's)
105 31 25 35 13 56 18 Gold equivalent
1 production
ounces
110,927 31,202 30,106 28,433 21,186 79,061 32,231
- Gold production during the fourth
quarter was the highest of the year at 30,675 ounces
- Grades decreased in the fourth quarter,
as anticipated, due to seasonal mine sequencing
- Full-year 2016 gold production was
109,175 ounces, over 9,000 ounces above the high-end of the
Company's guidance range, and 31,043 ounces higher than in 2015,
primarily due to two additional months of production as well as
improved grades and plant recovery rates
- Gold production expected to decrease in
2017 to 85,000 - 90,000 ounces due to of the anticipated completion
of mining at the higher-grade Golden Reward deposit in
mid-2017
San
Bartolomé, Bolivia 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Tons milled
1,666,787 368,131 450,409 440,441 407,806 1,713,079 475,695
Average silver grade (oz/t)
3.69 3.96 3.43 3.79 3.64 3.75
3.84 Average recovery rate
88.8% 86.3% 88.7% 87.4% 93.1%
84.6% 84.9% Silver production ounces (000's)
5,469 1,259
1,370 1,458 1,382 5,436 1,550
- Silver production decreased 8%
quarter-over-quarter to 1.3 million ounces due to an ongoing water
shortage in Bolivia resulting from nationwide drought
conditions
- Full-year 2016 production was just
below the low-end of the Company's guidance range at 5.5 million
ounces of silver
- 2017 silver production expected to be
5.4 - 5.9 million ounces
Coeur Capital, Inc.
Endeavor, Australia 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Silver production ounces
(000's)
248 44 56 33 115 629 171
- Silver production from the Company's
silver stream on the Endeavor mine in Australia decreased 21%
quarter-over-quarter to 43,901 ounces
- 2017 production is expected to be
300,000 - 400,000 ounces of silver due to an anticipated increase
in production following recent improvements in zinc and lead
prices
2016 Production Results
Coeur's 2016 silver and gold production results are shown below,
along with the Company's most recent production guidance as of
October 26, 2016.
(silver ounces in thousands)
Silver Gold Silver
Equivalent1 2016 Guidance
2016 Result 2016 Guidance 2016
Result 2016 Guidance 2016 Result
Palmarejo 4,100 - 4,600 4,442 70,000 - 75,000
73,913 8,300 - 9,100 8,877
Rochester 4,500 - 5,000
4,564 48,000 - 55,000 50,751 7,380 - 8,300 7,609
Kensington
— — 120,000 - 125,000 124,331 7,200 - 7,500
7,460
Wharf 80 - 100 105 95,000 - 100,000 109,175 5,780 - 6,100
6,656
San Bartolomé 5,500 - 5,800 5,469 — — 5,500 - 5,800
5,469
Endeavor 215 - 235 248 — —
215 - 235 248
Total 14,395 - 15,735
14,828 333,000 - 355,000 358,170 34,375
- 37,035 36,318
2017 Production Guidance
(silver and silver equivalent ounces in
thousands) Silver Gold
Silver Equivalent1 Palmarejo 6,500 - 7,000
110,000 - 120,000 13,100 - 14,200
Rochester 4,200 - 4,700
47,000 - 52,000 7,020 - 7,820
Kensington — 120,000 - 125,000
7,200 - 7,500
Wharf — 85,000 - 90,000 5,100 - 5,400
San
Bartolomé 5,400 - 5,900 — 5,400 - 5,900
Endeavor
300 - 400 — 300 - 400
Total 16,400 -
18,000 362,000 - 387,000 38,120 - 41,220
Financial Results and Conference
Call
Coeur will report its full operational and financial results for
fourth quarter and full-year 2016 on February 8, 2017 after the New
York Stock Exchange closes for trading. There will be a conference
call on February 9, 2017 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 February 23, 2017.
Replay numbers: (877)
344-7529 (US) (855) 669-9658 (Canada) (412) 317-0088
(International) Conference ID: 100 98 890
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. 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, expansion at Rochester and
development efforts at Kensington. 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 Forms 10-K and 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.
Christopher Pascoe, Coeur's Director, Technical Services 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/20170105006523/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5837www.coeur.com
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