Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced third quarter production of 9.5 million silver
equivalent1 ounces, comprised of 4.0 million silver ounces and
93,293 gold ounces. Third quarter silver equivalent1 production
increased 7% quarter-over-quarter and 10% year-over-year. Higher
quarter-over-quarter silver equivalent1 production was driven by a
13% increase in gold production while higher year-over-year silver
equivalent1 production was due to a 10% increase in gold production
and an 11% increase in silver production. Metal sales of 3.8
million ounces of silver and 89,972 ounces of gold, or 9.2 million
silver equivalent1 ounces, were in-line with third quarter
production.
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Quarterly Production Results (Graphic:
Business Wire)
Third quarter production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico 3Q 2017
2Q 2017 1Q 2017
4Q 2016 3Q 2016 Tons milled
413,086 335,428 360,383 287,569 274,644 Average silver grade
(oz/t)
5.53 4.98 4.91 4.95 3.98 Average gold grade (oz/t)
0.08 0.08 0.09 0.09 0.08 Average recovery rate – Ag
83.6% 87.3% 86.5% 89.1% 85.5% Average recovery rate – Au
83.1% 91.1% 93.7% 90.4% 77.7% Ounces Produced Silver (000's)
1,908 1,457 1,531 1,269 933 Gold
28,948 24,292 30,792
23,906 16,608 Silver equivalent1 (000's)
3,644 2,914 3,378
2,703 1,930 Ounces Sold Silver (000's)
1,794 1,484 1,965 937
778 Gold
26,554 25,191 41,045 15,558 11,410 Silver
equivalent1 (000's)
3,387 2,996 4,427 1,872 1,462 Silver
equivalent1 (average spot) (000's)
3,809 3,324 4,837 2,042
1,555
- Silver equivalent production increased
25% quarter-over-quarter and 89% year-over-year to 3.6 million
ounces
- Average mining rates during the quarter
were up 22%, achieving the year-end target of 4,500 tons per day
one quarter early.This was driven by higher-than-budgeted mining
rates at Independencia, which increased approximately 70%
quarter-over-quarter to over 1,800 tons per day
- The average silver grade increased 11%
as a result of mining higher grade stopes in the Independencia
deposit that became accessible following the installation of
additional ground support during the prior quarter
- Higher mining rates and silver grades
during the quarter resulted in increased mill inventory at
quarter-end and contributed to lower recovery rates
quarter-over-quarter
- Silver and gold sales of 1.8 million
ounces and 26,554 ounces, respectively, were in-line with
production. Gold sales during the quarter included 9,400 ounces
sold to Franco-Nevada at a price of $800 per ounce
- Palmarejo's full-year production
guidance of 6.5 - 7.0 million silver ounces and 110,000 - 120,000
gold ounces remains unchanged
Rochester, Nevada 3Q 2017
2Q 2017 1Q 2017
4Q 2016 3Q 2016 Tons placed
4,262,011 4,493,100 3,513,708 3,878,487 4,901,039 Average
silver grade (oz/t)
0.53 0.53 0.58 0.57 0.54 Average gold
grade (oz/t)
0.004 0.003 0.002 0.002 0.003 Ounces Produced
Silver (000's)
1,070 1,156 1,127 1,277 1,161 Gold
10,955 10,745 10,356 14,231 12,120 Silver equivalent
1
(000's)
1,727 1,801 1,749 2,131 1,888 Ounces Sold Silver
(000's)
1,050 1,135 1,289 1,205 1,163 Gold
10,390
10,658 13,592 12,988 11,751 Silver equivalent1 (000's)
1,674
1,774 2,104 1,984 1,868 Silver equivalent1 (average spot) (000's)
1,839 1,913 2,240 2,128 1,963
- Silver equivalent production of 1.7
million ounces was relatively unchanged quarter-over-quarter
- Following three years of permitting and
ten months of construction, the Stage IV leach pad expansion was
successfully commissioned on schedule early in the third
quarter
- Tons placed decreased 5%
quarter-over-quarter, primarily due to crusher downtime related to
the integration of the crusher into the expanded Stage IV system,
planned annual maintenance and a brief power disruption due to a
nearby wildfire
- Leaching of the expanded Stage IV pad
began in the quarter and is expected to drive strong production
through the end of the year.Fourth quarter gold production is also
expected to benefit from the placement of higher gold grade ore on
the expanded Stage IV pad during the third quarter
- 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 3Q 2017
2Q 2017 1Q 2017
4Q 2016 3Q 2016 Tons milled
172,038 163,163 165,895 163,410 140,322 Average gold grade
(oz/t)
0.17 0.17 0.17 0.22 0.20 Average recovery rate
94.1% 93.2% 94.0% 94.4% 94.8% Gold ounces produced
27,541 26,424 26,197 33,688 26,459 Gold ounces sold
29,173
29,031 32,144 28,864 30,998
- Gold production increased 4%
quarter-over-quarter and year-over-year to 27,541 ounces
- Development of Jualin achieved an
important milestone as initial development ore was mined during the
quarter; mining from Jualin is expected to ramp up as planned over
the next twelve months
- Higher anticipated grades are expected
to drive strong production in the fourth quarter. As a result, the
Company is maintaining Kensington's full-year guidance of 120,000 -
125,000 gold ounces
Wharf, South Dakota 3Q
2017 2Q 2017 1Q 2017
4Q 2016 3Q 2016 Tons
placed
1,150,308 993,167 1,292,181 1,178,803 1,199,008
Average gold grade (oz/t)
0.029 0.024 0.027 0.027 0.033
Ounces produced Gold
25,849 21,358 20,873 30,675 29,684
Silver (000's)
15 13 20 32 25 Gold equivalent
1
26,096 21,568 21,207 31,202 30,106 Ounces sold Gold
23,855 21,314 24,093 29,698 29,230 Silver (000's)
14
11 33 30 17 Gold equivalent1
24,085 21,495 24,636 30,204
29,508
- Gold production at Wharf increased 21%
quarter-over-quarter to 25,849 ounces. Increases in gold grade and
production were largely driven by the higher-grade Golden Reward
deposit, which was mined for an abbreviated season relative to
prior years and is now complete
- Tons placed increased 16% during the
quarter with Wharf on track to place 4.5 million tons for the full
year, up from 4.3 million tons in 2016
- The Company is maintaining Wharf's
full-year production guidance of 90,000 - 95,000 gold ounces
San Bartolomé, Bolivia 3Q
2017 2Q 2017 1Q 2017
4Q 2016 3Q 2016 Tons
milled
365,554 417,784 384,267 368,131 450,409 Average
silver grade (oz/t)
3.01 3.31 3.49 3.96 3.43 Average
recovery rate
87.0% 92.8% 90.7% 86.3% 88.7% Silver ounces
produced (000's)
957 1,285 1,215 1,259 1,370 Silver ounces
sold (000's)
951 1,398 1,148 1,218 1,391
- Third quarter production decreased 26%
to 1.0 million silver ounces primarily due to worsening drought
conditions in the Potosí region of Bolivia, which hindered mill
operations
- As a result, the Company is lowering
San Bartolomé's full-year production guidance to 4.5 - 4.75 million
ounces of silver from 5.0 - 5.4 million ounces
2017 Production Guidance
Coeur's 2017 production guidance has been revised to reflect
lower expected silver production at the San Bartolomé mine due to
persistent drought conditions.
(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
4,500 - 4,750 — 4,500 - 4,750
Endeavor 107
— 107
Total 15,307
- 16,557 367,000 - 392,000 37,327 -
40,077
Financial Results and Conference Call
Coeur will report its financial results for third quarter of
2017 on October 25, 2017 after the New York Stock Exchange closes
for trading. There will be a conference call on October 26, 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 November 9, 2017.
Replay numbers: (877) 344-7529 (US) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID: 101 11 361
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. 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, grades,
mining rates, tons placed, development efforts at Kensington 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 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 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
3Q 2017
2Q 2017 1Q 2017 4Q
2016 3Q 2016 Average Silver Spot Price
Per Ounce $ 16.84 $ 17.21 $ 17.42 $ 17.19 $ 19.61
Average
Gold Spot Price Per Ounce $ 1,278 $ 1,257 $ 1,219 $ 1,222 $
1,335
Average Silver to Gold Spot Equivalence 76:1 73:1 70:1
71:1 68:1
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version on businesswire.com: http://www.businesswire.com/news/home/20171005006344/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and TreasurerPhone: (312) 489-5800www.coeur.com
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