Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced second quarter production of 4.0 million ounces of silver
and 82,819 ounces of gold, or 8.9 million silver equivalent1
ounces. Metal sales for the quarter were 4.1 million ounces of
silver and 86,194 ounces of gold, or 9.3 million silver equivalent1
ounces.
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Quarterly Production Results (Graphic:
Business Wire)
Second quarter production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
2Q 2017 1Q 2017 4Q 2016
3Q 2016 2Q 2016 Underground Operations
Tons mined
335,856 355,793 293,706 253,681 283,971 Average
silver grade (oz/t)
4.98 4.84 5.00 3.96 5.40 Average gold
grade (oz/t)
0.08 0.09 0.09 0.08 0.08 Surface Operations
Tons mined
— — — — 1,695 Average silver grade (oz/t)
— — — — 7.77 Average gold grade (oz/t)
— — — — 0.07
Processing Total tons milled
335,428 360,383 287,569 274,644
270,142 Average recovery rate – Ag
87.3% 86.5% 89.1% 85.5%
89.5% Average recovery rate – Au
91.1% 93.7% 90.4% 77.7%
86.4% Ounces Produced Silver (000's)
1,457 1,531 1,269 933
1,307 Gold
24,292 30,792 23,906 16,608 18,731 Silver
equivalent1 (000's)
2,914 3,378 2,703 1,930 2,431 Ounces
Sold Silver (000's)
1,484 1,965 937 778 1,350 Gold
25,191 41,045 15,558 11,410 19,214 Silver equivalent1
(000's)
2,996 4,427 1,872 1,462 2,502 Silver equivalent1
(average spot) (000's)
3,324 4,837 2,042 1,555 2,792
- Average mining rates at Guadalupe
remained flat at 2,600 tons per day during the second quarter
compared to the first quarter, while average mining rates at
Independencia decreased from 1,225 tons per day to 1,090 tons per
day during the second quarter due to additional ground support
measures that were required during April and May
- Silver production of 1.5 million ounces
was 11% higher and gold production of 24,292 ounces rose 30%
year-over-year; quarter-over-quarter, silver production declined
5%, while gold production decreased 21% as a result of lower mining
rates and a slightly lower average gold grade
- Silver and gold sales of 1.5 million
ounces and 25,191 ounces, respectively, were in-line with second
quarter production levels but lower than first quarter sales, which
benefited from a reduction in inventory carried over from the
fourth quarter of 2016
- Gold sales included 9,683 ounces sold
to Franco-Nevada 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
- Production is expected to increase in
the second half of the year as mining rates from Independencia
accelerate to approximately 1,500 tons per day
- The Company is maintaining Palmarejo's
full-year production guidance of 6.5 - 7.0 million silver ounces
and 110,000 - 120,000 gold ounces
Rochester, Nevada
2Q 2017 1Q 2017 4Q 2016
3Q 2016 2Q 2016 Tons placed
4,493,100 3,513,708 3,878,487 4,901,039 6,402,013 Average
silver grade (oz/t)
0.53 0.58 0.57 0.54 0.54 Average gold
grade (oz/t)
0.003 0.002 0.002 0.003 0.003 Ounces Produced
Silver (000's)
1,156 1,127 1,277 1,161 1,197 Gold
10,745 10,356 14,231 12,120 13,940 Silver equivalent
1
(000's)
1,801 1,749 2,131 1,888 2,033 Ounces Sold Silver
(000's)
1,135 1,289 1,205 1,163 1,137 Gold
10,658
13,592 12,988 11,751 12,909 Silver equivalent1 (000's)
1,774
2,104 1,984 1,868 1,912 Silver equivalent1 (average spot) (000's)
1,913 2,240 2,128 1,963 2,106
- Tons placed increased nearly 30%
quarter-over-quarter as crushing rates recovered from record
rainfall during the first quarter
- Silver and gold production increased 3%
and 4%, respectively, quarter-over-quarter to 1.2 million ounces
and 10,745 ounces; year-over-year, silver and gold production
decreased 3% and 23%, respectively
- Silver and gold sales of 1.1 million
ounces and 10,658 ounces, respectively, were consistent with second
quarter production levels
- Production is expected to increase in
the second half of the year following the anticipated commissioning
of the Stage IV leach pad expansion
- The Company is maintaining Rochester's
full-year production guidance of 4.2 - 4.7 million silver ounces
and 47,000 - 52,000 gold ounces
Kensington, Alaska
2Q 2017 1Q 2017 4Q 2016
3Q 2016 2Q 2016 Tons milled
163,163 165,895 163,410 140,322 157,117 Average gold grade
(oz/t)
0.17 0.17 0.22 0.20 0.22 Average recovery rate
93.2% 94.0% 94.4% 94.8% 94.1% Gold ounces produced
26,424 26,197 33,688 26,459 32,210 Gold ounces sold
29,031 32,144 28,864 30,998 30,178
- Gold production of 26,424 ounces was
relatively unchanged quarter-over-quarter and 18% lower
year-over-year primarily due to lower grades driven by mine
sequencing. As previously noted, higher grades and production are
expected in the second half of the year
- Gold sales decreased 10%
quarter-over-quarter to 29,031 ounces, primarily due to elevated
sales in the first quarter resulting from a reduction in inventory
carried over from the fourth quarter of 2016
- Development of Jualin remains on track
with initial production expected later this year
- The Company is maintaining Kensington's
full-year production guidance of 120,000 - 125,000 gold ounces
Wharf, South
Dakota 2Q 2017 1Q 2017 4Q
2016 3Q 2016 2Q 2016 Tons placed
993,167 1,292,181 1,178,803 1,199,008 915,631 Average gold
grade (oz/t)
0.024 0.027 0.027 0.033 0.037 Ounces produced
Gold
21,358 20,873 30,675 29,684 27,846 Silver (000's)
13 20 32 25 35 Gold equivalent
1 21,568 21,207
31,202 30,106 28,433 Ounces sold Gold
21,314 24,093 29,698
29,230 26,242 Silver (000's)
11 33 30 17 33 Gold equivalent1
21,495 24,636 30,204 29,508 26,786
- Gold production increased slightly to
21,358 ounces during the second quarter as a result of timing of
recoveries. Year-over-year, gold production decreased 23% due to
lower production from the higher-grade Golden Reward deposit, the
remainder of which is expected to be mined in the third
quarter
- Gold sales of 21,314 ounces were
in-line with second quarter production levels
- The Company is raising Wharf's
full-year production guidance from 85,000 - 90,000 gold ounces to
90,000 - 95,000 gold ounces due to higher than budgeted mining and
crushing rates
San Bartolomé,
Bolivia 2Q 2017 1Q 2017
4Q 2016 3Q 2016 2Q 2016 Tons
milled
417,784 384,267 368,131 450,409 440,441 Average
silver grade (oz/t)
3.31 3.49 3.96 3.43 3.79 Average
recovery rate
92.8% 90.7% 86.3% 88.7% 87.4% Silver ounces
produced (000's)
1,285 1,215 1,259 1,370 1,458 Silver ounces
sold (000's)
1,398 1,148 1,218 1,391 1,418
- Second quarter production increased 6%
to 1.3 million silver ounces, primarily due to process enhancements
that resulted in higher recovery rates; year-over-year, production
declined 12% as a result of lower third-party ore purchases and the
continued effects of drought conditions
- Timing of sales drove a 22%
quarter-over-quarter increase in silver sales to 1.4 million
ounces
- Due to the ongoing impact of persistent
drought conditions, the Company is reducing San Bartolomé's
full-year production guidance to 5.0 - 5.4 million ounces of silver
from 5.4 - 5.9 million ounces
2017 Production Guidance
Coeur's 2017 production guidance has been revised to
reflect:
- Higher expected gold production at
Wharf due to higher mining and crushing rates
- Lower expected silver production at the
San Bartolomé mine due to persistent drought conditions
- The pending agreement to sell the
Endeavor silver stream, under which production and any associated
sales began accruing to the buyer as of June 1, 2017
(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 — 90,000 - 95,000 5,400 - 5,700
San Bartolomé
5,000 - 5,400 — 5,000 - 5,400
Endeavor 105
— 105
Total 15,805
- 17,205 367,000 - 392,000 37,825 -
40,725
Financial Results and Conference Call
Coeur will report its financial results for second quarter of
2017 on July 26, 2017 after the New York Stock Exchange closes for
trading. There will be a conference call on July 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
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 August 10, 2017.
Replay numbers: (877) 344-7529 (US) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID: 101 07 016
About Coeur
Coeur Mining, Inc. 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 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, sales,
grades, mining rates, crushing rates, operations at the Palmarejo
complex, expansion at Rochester, development efforts at Kensington,
operations at Wharf, the pending sale of the Endeavor silver
stream, and persistent drought conditions in Bolivia. 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 pending sale of the Endeavor silver
stream is not consummated on a timely basis or at all, the risk
that anticipated production and sales 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.
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, 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
2Q
2017 1Q 2017 4Q 2016 3Q
2016 2Q 2016 Average Silver Spot Price Per
Ounce $ 17.21 $ 17.42 $ 17.19 $ 19.61 $ 16.78
Average Gold
Spot Price Per Ounce $ 1,257 $ 1,219 $ 1,222 $ 1,335 $ 1,260
Average Silver to Gold Spot Equivalence 73:1 70:1 71:1 68:1
75:1
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version on businesswire.com: http://www.businesswire.com/news/home/20170706006218/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5910www.coeur.com
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