Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced record fourth quarter silver equivalent1 production of
11.7 million ounces, consisting of 4.5 million ounces of silver and
119,114 ounces of gold. Silver equivalent1 production increased 23%
quarter-over-quarter and 17% year-over-year. Silver production
increased 15% quarter-over-quarter and 17% year-over-year, while
gold production increased 28% and 16%.
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Quarterly Production Results (Graphic:
Business Wire)
Full-year 2017 silver equivalent1 production, also the highest
in Company history, totaled 39.4 million ounces, which was 9%
higher compared to 2016. Full-year silver production was 16.4
million ounces, 11% higher than in 2016 and at the high-end of the
Company's guidance of 15.3 - 16.6 million ounces. Full-year gold
production was 383,444 ounces, 7% higher than in 2016 and in-line
with Company guidance of 367,000 - 392,000 ounces. Production
growth was driven primarily by the Palmarejo mine, where 2017
silver equivalent1 production increased 64% compared to 2016.
In 2018, Coeur expects to produce 36.6 - 40.0 million silver
equivalent1 ounces, consisting of 12.8 - 14.4 million ounces of
silver, 355,000 - 375,000 ounces of gold, and 23.0 - 28.0 million
pounds of both zinc and lead.
Metal sales for the fourth quarter of 4.6 million ounces of
silver and 123,675 ounces of gold, or 12.0 million silver
equivalent1 ounces, were in-line with production. Full-year metal
sales of 16.9 million ounces of silver and 410,715 ounces of gold,
or 41.6 million silver equivalent1 ounces, reflects a reduction in
inventory carried over from 2016.
Operations
Fourth quarter and full-year 2017 production and sales
highlights for each of Coeur's operations are provided below.
Palmarejo, Mexico
2017 4Q 2017 3Q
2017 2Q 2017 1Q 2017
2016 4Q 2016 Tons milled
1,498,421
389,524 413,086 335,428 360,383 1,078,888 287,569 Average silver
grade (oz/t)
5.62 6.92 5.53 4.98 4.91 4.66 4.95 Average gold
grade (oz/t)
0.09 0.10 0.08 0.08 0.09 0.08 0.09 Average
recovery rate – Ag
86.0% 87.0% 83.6% 87.3% 86.5% 88.4% 89.1%
Average recovery rate – Au
90.0% 92.0% 83.1% 91.1% 93.7%
86.5% 90.4% Ounces Produced Silver (000's)
7,242 2,346 1,908
1,457 1,531 4,442 1,269 Gold
121,569 37.537 28,948 24,292
30,792 73,913 23,906 Silver equivalent1 (000's)
14,536 4,600
3,644 2,914 3,378 8,877 2,703 Ounces Sold Silver (000's)
7,586 2,343 1,794 1,484 1,965 3,993 937 Gold
131,743
38,953 26,554 25,191 41,045 59,081 15,558 Silver equivalent1
(000's)
15,491 4,681 3,387 2,996 4,427 7,538 1,872 Silver
equivalent1 (average spot) (000's)
17,301 5,331 3,809 3,324
4,837 8,305 2,042
- Fourth quarter silver equivalent1
production increased 26% quarter-over-quarter and 70%
year-over-year to 4.6 million ounces, while full-year 2017 silver
equivalent1 production of 14.5 million ounces was above the
high-end of the Company's guidance range and represented an
increase of 64% over 2016
- Fourth quarter silver and gold grades
rose approximately 25%, quarter-over-quarter, while full-year 2017
silver and gold grades increased 21% and 12%, respectively,
compared to 2016 due to mining of higher-grade zones at
Independencia. Grades are expected to decrease gradually during the
first quarter of 2018 due to mine sequencing
- Higher recovery rates during the fourth
quarter resulted from normalization of mill inventory levels
- Fourth quarter silver and gold sales
were in-line with production, while full-year sales were higher
than production due to a reduction in inventory carried over from
the fourth quarter of 2016
- Gold sales during the quarter and year
included 13,740 and 52,124 ounces, respectively, sold to
Franco-Nevada at a price of $800 per ounce
- Full-year 2018 production is expected
to be 6.5 - 7.1 million ounces of silver and 110,000 - 115,000
ounces of gold, or 13.1 - 14.0 million silver equivalent1
ounces
Rochester, Nevada
2017 4Q 2017 3Q
2017 2Q 2017 1Q 2017
2016 4Q 2016 Tons placed
16,440,270
4,171,451 4,262,011 4,493,100 3,513,708 19,555,998 3,878,487
Average silver grade (oz/t)
0.53 0.50 0.53 0.53 0.58 0.57
0.57 Average gold grade (oz/t)
0.003 0.003 0.004 0.003 0.002
0.003 0.002 Ounces Produced Silver (000's)
4,714 1,361 1,070
1,156 1,127 4,564 1,277 Gold
51,051 18,995 10,955 10,745
10,356 50,751 14,231 Silver equivalent
1 (000's)
7,777
2,500 1,727 1,801 1,749 7,609 2,131 Ounces Sold Silver (000's)
4,931 1,457 1,050 1,135 1,289 4,584 1,205 Gold
54,642
20,002 10,390 10,658 13,592 49,320 12,988 Silver equivalent1
(000's)
8,210 2,658 1,674 1,774 2,104 7,543 1,984 Silver
equivalent1 (average spot) (000's)
8,961 2,969 1,839 1,913
2,240 8,183 2,128
- Fourth quarter silver equivalent1
production increased 45% quarter-over-quarter to 2.5 million
ounces, with silver production increasing 27% to 1.4 million ounces
and gold production rising 73% to 18,995 ounces. Higher production
was driven by concurrent leaching of the Stage III and Stage IV
pads as well as the timing of recoveries from the newly-expanded
Stage IV leach pad. Gold production also benefited from the
placement of higher gold grade ore during the third quarter and
early fourth quarter
- Full-year silver equivalent1 production
of 7.8 million ounces was relatively unchanged year-over-year due
to the completion of construction and commissioning of the Stage IV
leach pad
- Full-year 2018 production is expected
to be 4.2 - 4.7 million ounces of silver and 45,000 - 50,000 ounces
of gold, or 6.9 - 7.7 million silver equivalent1 ounces
Kensington, Alaska
2017
4Q 2017 3Q 2017 2Q 2017
1Q 2017 2016 4Q 2016 Tons
milled
668,727 167,631 172,038 163,163 165,895 620,209
163,410 Average gold grade (oz/t)
0.18 0.22 0.17 0.17 0.17
0.21 0.22 Average recovery rate
93.5% 92.8% 94.1% 93.2%
94.0% 94.7% 94.4% Gold ounces produced
115,094 34,932 27,541
26,424 26,197 124,331 33,688 Gold ounces sold
125,982 35,634
29,173 29,031 32,144 121,688 28,864
- Fourth quarter gold production
increased 27% quarter-over-quarter to 34,932 ounces, Kensington's
highest quarterly production since the fourth quarter of 2013. This
was primarily the result of mining the higher-grade Raven zone,
which drove average grades 29% higher to 0.22 oz/ton
- Full-year production of 115,094 ounces
was below the Company guidance range due to lower-than-expected
grades throughout the first nine months of the year
- Full-year gold sales were higher than
production due to reductions in inventory throughout the year,
particularly in the first quarter
- During the fourth quarter, mining of
development ore continued at Jualin, where production is expected
to accelerate throughout 2018 as the Company dewaters the mine area
to facilitate more efficient drilling, development, and mining
activities
- Raven is expected to remain a
supplemental source of higher-grade material throughout the
year
- 2018 gold production is expected to
total 115,000 - 120,000 ounces
Wharf, South Dakota
2017 4Q 2017 3Q
2017 2Q 2017 1Q 2017
2016 4Q 2016 Tons placed
4,560,441
1,124,785 1,150,308 993,167 1,292,181 4,268,105 1,178,803 Average
gold grade (oz/t)
0.027 0.029 0.029 0.024 0.027 0.032 0.027
Ounces produced Gold
95,372 27,292 25,849 21,358 20,873
109,175 30,675 Silver (000's)
64 16 15 13 20 105 32 Gold
equivalent1
96,431 27,560 26,096 21,568 21,207 110,927
31,202 Ounces sold Gold
98,237 28,975 23,855 21,314 24,093
108,042 29,698 Silver (000's)
74 16 14 11 33 95 30 Gold
equivalent1
99,472 29,256 24,085 21,495 24,636 109,620
30,204
- At Wharf, gold production in the fourth
quarter increased 6% quarter-over-quarter to 27,292 ounces,
attributable primarily to strong sustained crusher production and
gold grades
- For the full year, gold production
decreased 13% to 95,372 ounces as a result of lower grades
following completion of mining at the higher-grade Golden Reward
deposit during the third quarter
- Tons placed for the full year reached
4.6 million, up from 4.3 million in 2016 and 3.6 million in
2015
- In 2018, the Company anticipates
full-year production of 85,000 - 90,000 ounces of gold
San Bartolomé, Bolivia
2017 4Q 2017 3Q
2017 2Q 2017 1Q 2017
2016 4Q 2016 Tons milled
1,509,708
342,103 365,554 417,784 384,267 1,666,787 368,131 Average silver
grade (oz/t)
3.17 2.80 3.01 3.31 3.49 3.69 3.96 Average
recovery rate
89.3% 84.8% 87.0% 92.8% 90.7% 88.8% 86.3%
Silver ounces produced (000's)
4,270 813 957 1,285 1,215
5,469 1,259 Silver ounces sold (000's)
4,241 744 951 1,398
1,148 5,411 1,218
Note: San Bartolomé also produced
and sold 358 and 111 ounces of gold, respectively, during the
fourth quarter
- Lower fourth quarter and full-year
silver production of 0.8 million and 4.3 million ounces,
respectively, reflected persistent drought conditions in the Potosí
region of Bolivia. In addition to restricting mill operations,
water shortages have curtailed mining by third parties, from whom
higher-grade ore is sourced
- On December 22, 2017, Coeur announced
plans to divest the San Bartolomé mine through the sale of its
100%-owned Bolivian subsidiary to Argentum Investments, AB. The
Company’s 2018 production guidance of 0.6 million silver ounces
reflects the anticipated closing of this transaction in the first
quarter of 2018
- Coeur will present San Bartolomé as
discontinued operations when it reports fourth quarter and
full-year 2017 financial results on February 7, 2018. The mine will
be excluded from consolidated operating metrics and financial
results, which reflect continuing operations, unless otherwise
noted
2017 Production Results
Coeur's 2017 production results are shown below, along with its
most recent production guidance as of October 25, 2017.
Silver (K oz) Gold (oz)
Silver Equivalent1 (K oz)
Guidance Result Guidance
Result Guidance Result
Palmarejo 6,500 - 7,000 7,242 110,000 - 120,000
121,569 13,100 - 14,200 14,536
Rochester 4,200
- 4,700 4,714 47,000 - 52,000 51,051 7,020 - 7,820 7,777
Kensington — — 120,000 - 125,000 115,094
7,200 - 7,500
6,906
Wharf — 64 90,000 - 95,000 95,372 5,400 - 5,700 5,786
San
Bartolomé 4,500 - 4,750 4,270 — 358 4,500 - 4,750 4,291
Endeavor 107 107 — — 107
107
Total 15,307 - 16,557 16,397
367,000 - 392,000 383,444 37,327 - 40,077
39,403
2018 Production Guidance
The Company's full-year 2018 production guidance reflects the
anticipated sale of San Bartolomé and the recommencement of
production at Silvertip, both of which are expected to occur during
the first quarter.
Silver
Gold Zinc Lead Silver
Equivalent1 (K oz)
(oz) (K lbs) (K lbs)
(K oz) Palmarejo 6,500 - 7,100 110,000 - 115,000 — —
13,100 - 14,000
Rochester 4,200 - 4,700 45,000 - 50,000 — —
6,900 - 7,700
Kensington — 115,000 - 120,000 — — 6,900 -
7,200
Wharf — 85,000 - 90,000 — — 5,100 - 5,400
San
Bartolomé 600 — — — 600
Silvertip 1,500 - 2,000
— 23,000 - 28,000 23,000 - 28,000 4,030
- 5,080
Total 12,800 - 14,400 355,000 -
375,000 23,000 - 28,000 23,000 - 28,000 36,630
- 39,980
Financial Results and Conference Call
Coeur will report its fourth quarter and full-year 2017
financial results on February 7, 2018 after the New York Stock
Exchange closes for trading. There will be a conference call on
February 8, 2018 at 11:00 a.m. Eastern Time.
Dial-In Numbers: (855) 560-2581 (U.S.) (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 February 22, 2018.
Replay numbers: (877) 344-7529 (U.S.) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID:
101 15 644
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with six mines in the Americas employing
approximately 2,300 people. Coeur’s wholly-owned operations include
the Palmarejo silver-gold complex in Mexico, the Silvertip
silver-zinc-lead mine in British Columbia, 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. In addition, the Company owns the La Preciosa project
in Mexico, a silver-gold exploration stage project. Coeur conducts
exploration activities in North 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,
mining efficiencies, development efforts and operations at
Kensington, the anticipated sale of the San Bartolomé mine, and
timing for recommencement of production at Silvertip. 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 risk that the sale of the San Bartolomé mine is not
completed on a timely basis or at all, the risk that recommencement
of production at Silvertip will be delayed, 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, silver, zinc, and lead 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
- Silver and gold equivalence assumes a
60:1 silver-to-gold ratio, except where noted as average spot
prices. Please see the table below for average applicable spot
prices and corresponding ratios. Silver and zinc equivalence
assumes a 0.06:1 silver-to-zinc ratio. Silver and lead equivalence
assumes a 0.05:1 silver-to-lead ratio.
Average Spot Prices
2017 4Q 2017 3Q
2017 2Q 2017 1Q 2017
2016 4Q 2016 Average Silver Spot Price Per
Ounce
$
17.05
$ 16.73 $ 16.84 $ 17.21 $ 17.42 $ 17.14 $ 17.19
Average Gold
Spot Price Per Ounce
$
1,257
$ 1,275 $ 1,278 $ 1,257 $ 1,219 $ 1,251 $ 1,222
Average Silver
to Gold Spot Equivalence
74:1
76:1 76:1 73:1 70:1 73:1 71:1
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version on businesswire.com: http://www.businesswire.com/news/home/20180108006063/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5800www.coeur.com
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