Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced first quarter production of 3.9 million ounces of silver
and 88,218 ounces of gold, or 9.2 million silver equivalent1
ounces. Metal sales for the quarter were 4.5 million ounces of
silver and 110,874 ounces of gold, or 11.1 million silver
equivalent1 ounces.
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Quarterly production results (Graphic:
Business Wire)
Coeur's full-year production guidance of 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, remains
unchanged.
First quarter production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico 1Q 2017
4Q 2016 3Q 2016
2Q 2016 1Q 2016 Underground
Operations Tons mined
355,793 293,706 253,681 283,971
215,642 Average silver grade (oz/t)
4.84 5.00 3.96 5.40 4.21
Average gold grade (oz/t)
0.09 0.09 0.08 0.08 0.07 Surface
Operations Tons mined
— — — 1,695 35,211 Average silver
grade (oz/t)
— — — 7.77 4.18 Average gold grade (oz/t)
— — — 0.07 0.04 Processing Total tons milled
360,383
287,569 274,644 270,142 246,533 Average recovery rate – Ag
86.5% 89.1% 85.5% 89.5% 89.1% Average recovery rate – Au
93.7% 90.4% 77.7% 86.4% 92.1% Ounces Produced Silver (000's)
1,531 1,269 933 1,307 933 Gold
30,792 23,906 16,608
18,731 14,668 Silver equivalent1 (000's)
3,378 2,703 1,930
2,431 1,813 Ounces Sold Silver (000's)
1,965 937 778 1,350
928 Gold
41,045 15,558 11,410 19,214 12,899 Silver
equivalent1 (000's)
4,427 1,872 1,462 2,502 1,702 Silver
equivalent1 (average spot) (000's)
4,837 2,042 1,555 2,792
1,955
- Mining rates at Guadalupe and
Independencia continued to accelerate during the first quarter,
averaging 2,700 and 1,225 tons per day, respectively
- Production of 1.5 million silver ounces
and 30,792 gold ounces represented quarter-over-quarter increases
of 21% and 29%, respectively, and year-over-year increases of 64%
and 110%
- Silver and gold sales increased 110%
and 164%, respectively, to 2.0 million ounces and 41,045 ounces
partially due to the sale of metal carried over from the fourth
quarter; year-over-year, silver sales increased 112% and gold sales
increased 218%
- Gold sales included 19,300 ounces sold
to Franco-Nevada under the new stream agreement at a price of $800
per ounce. For the full year, the Company expects 40% - 45% of
Palmarejo's gold sales to be to Franco-Nevada
Rochester, Nevada 1Q 2017
4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons placed
3,513,708 3,878,487 4,901,039 6,402,013 4,374,459 Average
silver grade (oz/t)
0.58 0.57 0.54 0.54 0.64 Average gold
grade (oz/t)
0.002 0.002 0.003 0.003 0.004 Ounces Produced
Silver (000's)
1,127 1,277 1,161 1,197 929 Gold
10,356 14,231 12,120 13,940 10,460 Silver equivalent
1
(000's)
1,749 2,131 1,888 2,033 1,557 Ounces Sold Silver
(000's)
1,289 1,205 1,163 1,137 1,079 Gold
13,592
12,988 11,751 12,909 11,672 Silver equivalent1 (000's)
2,104
1,984 1,868 1,912 1,779 Silver equivalent1 (average spot) (000's)
2,240 2,128 1,963 2,106 2,009
- Record precipitation in January and
early February negatively impacted crushing and placement rates and
diluted process solutions. While operations normalized in March,
silver and gold production decreased quarter-over-quarter to 1.1
million ounces and 10,356 ounces, respectively, representing
declines of 12% and 27%; year-over-year, silver production
increased 21% and gold production was relatively unchanged,
decreasing 1%
- Silver and gold sales increased 7% and
5%, respectively, to 1.3 million ounces and 13,592 ounces primarily
due to a reduction in metal inventory; compared to the same period
in 2016, silver and gold sales increased 19% and 16%,
respectively
- Despite weather challenges,
construction of the Stage IV leach pad expansion continues on
schedule and on budget with commissioning expected in early 3Q
2017
Kensington, Alaska 1Q
2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons
milled
165,895 163,410 140,322 157,117 159,360 Average gold
grade (oz/t)
0.17 0.22 0.20 0.22 0.21 Average recovery rate
94.0% 94.4% 94.8% 94.1% 95.8% Gold ounces produced
26,197 33,688 26,459 32,210 31,974 Gold ounces sold
32,144 28,864 30,998 30,178 31,648
- As anticipated, Kensington's first
quarter production decreased to 26,197 ounces of gold, representing
declines of 22% quarter-over-quarter and 18% year-over-year.
Production is expected to increase in the second and third
quarters
- Lower grades and production were driven
by mine sequencing; higher grades are expected for the remainder of
2017
- Gold sales increased 11% over the
fourth quarter to 32,144 ounces due to a reduction of metal
inventory; year-over-year, gold sales increased 2%
- Development of the Jualin decline
remains on track for initial production later this year
Wharf, South Dakota 1Q
2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons
placed
1,292,181 1,178,803 1,199,008 915,631 974,663 Average
gold grade (oz/t)
0.027 0.027 0.033 0.037 0.031 Average
plant recovery rate - Au
97.4% 98.9% 94.4% 88.5% 95.9%
Ounces produced Gold
20,873 30,675 29,684 27,846 20,970
Silver (000's)
20 32 25 35 13 Gold equivalent
1
21,207 31,202 30,106 28,433 21,186 Ounces sold Gold
24,093 29,698 29,230 26,242 22,872 Silver (000's)
33
30 17 33 15 Gold equivalent1
24,636 30,204 29,508 26,786
23,122
- Gold production during the first
quarter declined 32% to 20,873 ounces as a result of leach pad
offload timing; compared to the first quarter of 2016, production
was unchanged
- Gold sales decreased 19%
quarter-over-quarter to 24,093 ounces due to lower production,
which was partially offset by a decrease in metal inventory;
year-over-year, sales increased 5%
- Remainder of high-grade Golden Reward
deposit will be mined late in the second quarter through the third
quarter, which is expected to result in a modest increase to third
quarter production
San Bartolomé, Bolivia 1Q
2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons
milled
384,267 368,131 450,409 440,441 407,806 Average
silver grade (oz/t)
3.49 3.96 3.43 3.79 3.64 Average
recovery rate
90.7% 86.3% 88.7% 87.4% 93.1% Silver ounces
produced (000's)
1,215 1,259 1,370 1,458 1,382 Silver ounces
sold (000's)
1,148 1,218 1,391 1,418 1,384
- First quarter production decreased 3%
to 1.2 million silver ounces as a result of persistent nationwide
drought conditions; year-over-year, production declined 12%
- Mill grades declined during the quarter
primarily due the mining of lower grade ore which requires less
water to process
- Silver sales decreased 6%
quarter-over-quarter and 17% year-over-year to 1.1 million
ounces
Coeur Capital, Inc.
Endeavor, Australia 1Q
2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Silver
production ounces (000's)
40 44 56 33 115 Silver ounces sold
(000's)
40 58 46 35 123
- Silver production from the Company's
silver stream on the Endeavor mine in Australia decreased 9%
quarter-over-quarter to approximately 40,000 ounces;
year-over-year, production declined 65%
- In response to higher zinc and lead
prices, operations have begun to ramp up with higher production
expected throughout the remainder of the year
2017 Production
Guidance (Unchanged)
(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
first quarter 2017 on April 26, 2017 after the New York Stock
Exchange closes for trading. There will be a conference call on
April 27, 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 May 11, 2017.
Replay numbers: (877) 344-7529 (US)
(855) 669-9658 (Canada) (412) 317-0088 (International) Conference
ID: 101 02 991
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 owns the La Preciosa project in Mexico, a silver-gold
exploration stage project. Coeur conducts exploration activities
throughout 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, sales,
operations at the Palmarejo complex, expansion at Rochester, grades
and development efforts at Kensington, operations at Wharf, and
production levels at the Endeavor mine. 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.
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
- Silver and gold equivalence calculated
using a 60:1 silver-to-gold ratio, except where noted as average
spot prices. Please see table below for average silver and gold
spot prices during the period and corresponding silver-to-gold
ratios.
Average Spot Prices
1Q 2017 4Q 2016
3Q 2016 2Q
2016 1Q 2016 Average Silver Spot
Price Per Ounce $ 17.42 $
17.19 $ 19.61
$ 16.78 $
14.85
Average Gold Spot Price Per Ounce $ 1,219 $
1,222 $ 1,335 $ 1,260 $ 1,183
Average Silver to Gold Spot
Equivalence 70:1 71:1 68:1 75:1 80:1
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170406006368/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5837www.coeur.com
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