Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced third quarter 2018 production of 2.9 million ounces of
silver, 88,833 ounces of gold, 2.2 million pounds of zinc and 1.2
million pounds of lead, or 8.5 million silver equivalent1 ounces
(10.4 million ounces based on average spot prices during the third
quarter)3. Metal sales for the quarter were 3.0 million ounces of
silver, 89,609 ounces of gold, 1.8 million pounds of zinc and 1.6
million pounds of lead, or 8.5 million silver equivalent1 ounces
(10.4 million ounces based on average spot prices during the third
quarter)3.
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Quarterly Production Results (Graphic:
Business Wire)
As disclosed on September 4, 2018, the Company expects to
produce 36.1 - 39.5 million silver equivalent1 ounces (44.0 - 48.0
million ounces based on average spot prices during the third
quarter) in 2018, consisting of 13.0 - 14.3 million silver ounces,
363,000 - 382,000 gold ounces, 13.0 - 23.0 million pounds of zinc
and 11.0 - 18.0 million pounds of lead.
Operations
Third quarter 2018 production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
3Q
2018 2Q 2018 1Q 2018 4Q
2017 3Q 2017 Tons milled
300,116 344,073
359,893 389,524 413,086 Average silver grade (oz/t)
6.26
6.86 6.88 6.92 5.53 Average gold grade (oz/t)
0.10 0.11 0.10
0.10 0.08 Average recovery rate – Ag
82.2% 87.5% 81.4% 87.0%
83.6% Average recovery rate – Au
88.8% 89.9% 80.4% 92.0%
83.1% Ounces Produced Silver (000's)
1,544 2,066 2,013 2,346
1,908 Gold
27,885 33,702 29,896 37,537 28,948 Silver
equivalent1 (000's)
3,217 4,088 3,807 4,600 3,644 Silver
equivalent1 (average spot) (000's)
3,796 4,728 4,382 5,209
4,104 Ounces Sold Silver (000's)
1,572 2,092 2,031 2,343
1,794 Gold
29,830 31,207 30,888 38,953 26,554 Silver
equivalent1 (000's)
3,362 3,964 3,884 4,681 3,387 Silver
equivalent1 (average spot) (000's)
3,981 4,557 4,479
5,313
3,809 Average realized price per silver ounce
$14.75 $16.49
$16.73 $16.57 $16.83 Average realized price per gold ounce
$1,082 $1,162 $1,168 $1,139 $1,148
- Third quarter silver equivalent1
production was 3.2 million ounces (3.8 million ounces based on
average spot prices during the third quarter), 21% lower compared
to the prior quarter, with silver production 25% lower and gold
production 17% lower. Year-over-year, silver and gold production
decreased 19% and 4%, respectively
- Production was impacted by (i) the
temporary suspension of mining activities relating to fatalities
that occurred during the quarter, (ii) supply chain disruptions
stemming from local road blockades that temporarily interrupted the
delivery of certain mining consumables, and (iii) a weather-related
interruption that impacted the process plant
- The modest decline in silver and gold
grades was due to the mining of lower grade stopes, primarily at
Independencia East. Gold grades are expected to decline in the
fourth quarter; however, mining rates are anticipated to return to
steady-state levels, partially offsetting the impact of the lower
expected grades
- Development towards the La Nación
deposit, located between the Independencia and Guadalupe
underground mines, remains on-schedule and is expected to commence
production in 2019, providing anticipated additional high quality
mill feed to supplement existing ore sources
- Approximately 38% of gold sales in the
third quarter, or 10,610 ounces, were sold under Palmarejo's gold
stream agreement at a price of $800 per ounce. The increase was due
to mine sequencing; fourth quarter gold sales under the stream
agreement are expected to remain at similar levels
- The Company is maintaining Palmarejo's
full-year 2018 production guidance of 7.5 - 7.9 million ounces of
silver and 115,000 - 120,000 ounces of gold, or 14.4 - 15.1 million
silver equivalent1 ounces (16.8 - 17.6 million ounces based on
average spot prices during the third quarter)
Rochester, Nevada
3Q
2018 2Q 2018 1Q 2018 4Q
2017 3Q 2017 Tons placed
4,061,082
4,083,028 4,351,131 4,171,451 4,262,011 Average silver grade (oz/t)
0.52 0.53 0.54 0.50 0.53 Average gold grade (oz/t)
0.004 0.004 0.003 0.003 0.004 Ounces Produced Silver (000's)
1,290 1,125 1,157 1,361 1,070 Gold
14,702 12,273
11,487 18,995 10,955 Silver equivalent
1 (000's)
2,172
1,861 1,846 2,500 1,727 Silver equivalent1 (average spot) (000's)
2,477 2,095 2,067 2,808 1,901 Ounces Sold Silver (000's)
1,248 1,097 1,119 1,457 1,050 Gold
14,257 12,030
11,163 20,002 10,390 Silver equivalent1 (000's)
2,104 1,819
1,789 2,658 1,674 Silver equivalent1 (average spot) (000's)
2,400 2,048 2,004
2,983
1,839 Average realized price per silver ounce
$14.70 $16.47
$16.66 $16.58 $16.89 Average realized price per gold ounce
$1,204 $1,297 $1,331 $1,279 $1,291
- Silver equivalent1 production during
the period was 17% higher quarter-over-quarter at 2.2 million
ounces (2.5 million ounces based on average spot prices during the
third quarter). Silver production was 1.3 million ounces and gold
production was 14,702 ounces, 15% and 20% higher, respectively,
compared to the prior quarter
- Production growth was driven primarily
by strong pad performance from the Stage III leach pad and
continued steady performance of the Stage IV leach pad. Stage III
leach pad performance was driven by leaching activities on the
periphery of the pad that had not been processed previously. These
trends are expected to continue in the fourth quarter
- Installation of an initial
high-pressure grinding roll ("HPGR") remains on schedule for the
first quarter of 2019 with silver recoveries expected to improve
beginning as early as the second quarter of next year.
Decommissioning of the 15,000 tons per day ("tpd") crusher is
currently underway and is expected to result in fewer tons crushed
and lower operating expenses in the fourth quarter
- The Company is maintaining full-year
2018 production guidance of 4.8 - 5.2 million ounces of silver and
48,000 - 52,000 ounces of gold, or 7.7 - 8.3 million silver
equivalent1 ounces (8.7 - 9.4 million ounces based on average spot
prices during the third quarter)
Wharf, South Dakota
3Q
2018 2Q 2018 1Q 2018 4Q
2017 3Q 2017 Tons placed
1,127,391
1,075,820 1,076,395 1,124,785 1,150,308 Average gold grade (oz/t)
0.023 0.023 0.022 0.029 0.029 Ounces produced Gold
19,437 22,507 17,936 27,292 25,849 Silver (000's)
13
13 12 16 15 Gold equivalent1
19,646 22,729 18,133 27,560
26,096 Ounces sold Gold
19,874 23,053 17,339 28,975 23,855
Silver (000's)
12 14 11 16 14 Gold equivalent1
20,081
23,282 17,522 29,256 24,085 Average realized price per gold ounce
$1,198 $1,285 $1,341 $1,278 $1,304
- Gold production declined 14%
quarter-over-quarter to 19,646 ounces partially as a result of
unplanned weather-related downtime and timing of leach pad
recoveries
- Mining and crushing rates during the
fourth quarter are expected to increase while average gold grade is
expected to remain relatively constant
- The Company is maintaining full-year
2018 production guidance of 85,000 - 90,000 ounces of gold
Kensington, Alaska
3Q
2018 2Q 2018 1Q 2018 4Q
2017 3Q 2017 Tons milled
167,964 168,751
158,706 167,631 172,038 Average gold grade (oz/t)
0.17 0.16
0.17 0.22 0.17 Average recovery rate
91.8% 92.6% 94.0% 92.8%
94.1% Gold ounces produced
26,809 25,570 26,064 34,932
27,541 Gold ounces sold
25,648 28,165 27,763 35,634 29,173
Average realized price per gold ounce
$1,161 $1,269 $1,307
$1,244 $1,255
- Third quarter gold production,
inclusive of pre-commercial production from Jualin, increased 5%
quarter-over-quarter and declined 3% year-over-year to 26,809
ounces
- At Jualin, the Company mined
approximately 4,400 tons of development ore late in the quarter,
which yielded pre-commercial production of nearly 2,100 ounces of
gold at a grade of 0.48 ounces per ton ("oz/t"). Mining rates at
Jualin are expected to climb throughout the fourth quarter leading
to higher overall production levels
- The Company is maintaining full-year
2018 production guidance of 115,000 - 120,000 ounces of gold4
Silvertip, British Columbia
3Q
2018 2Q 2018 1Q 2018 4Q
2017 3Q 2017 Tons milled
28,080 14,450
4,795 — — Average silver grade (oz/t)
7.29 14.15 10.05 — —
Average zinc grade (%)
8.0% 8.2% 6.60 — — Average lead grade
(%)
4.6% 8.1% 7.3% —% —% Average recovery rate – Ag
47.0% 42.3% 30.9% —% —% Average recovery rate – Zn
49.1% 57.9% 18.7% —% —% Average recovery rate – Pb
44.4% 40.5% 21.1% —% —% Produced Silver (000's ounces)
96 87 15 — — Zinc (000's lbs)
2,207 1,372 119 — —
Lead (000's lbs)
1,159 949 147 — — Silver equivalent1
(000's)
286 217 29 — — Silver equivalent1 (average spot)
(000's)
342 277 36 — Sold Silver (000's ounces)
131
10 — — — Zinc (000's lbs)
1,772
469
— — — Lead (000's lbs)
1,645
—
—
— — Silver equivalent1 (000's)
320
38
— — — Silver equivalent1 (average spot) (000's)
371
52
— — — Average realized price per silver ounce
$14.95 $13.01
— — —
Average realized price per zinc pound
$0.93
$1.08 — — —
Average realized price per lead pound
$0.99
$— — — —
- Silvertip achieved commercial
production on September 1, 2018. The production figures and average
realized prices shown in the above table include pre-commercial
production
- During the third quarter, mill downtime
impacted throughput, which averaged approximately 434 tons
(approximately 394 metric tonnes) per day. Mill downtime was
required to complete repairs on the paste plant, grinding circuit
and associated infrastructure in the process plant
- Higher mill availability is expected to
improve throughput in the fourth quarter, which is anticipated to
reach an average of approximately 830 tons per day (750 metric
tonnes per day) by year-end
- Operating activities remain focused on
improving process plant performance, underground rehabilitation and
development, and completing several key surface infrastructure
projects, including the water treatment plant and a 220-person camp
facility
- Coeur expects to file an initial NI
43-101 Technical Report in the fourth quarter and receive approval
for the permit amendment application to operate at 1,000 metric
tonnes per day on a year-round basis in early 2019
- The Company is maintaining full-year
2018 production guidance of 0.7 - 1.2 million ounces of silver,
13.0 - 23.0 million pounds of zinc and 11.0 - 18.0 million pounds
of lead, or 2.0 - 3.5 million silver equivalent1 ounces (2.4 - 4.1
million ounces based on average spot prices during the third
quarter)4
2018 Production Guidance
Coeur's 2018 production guidance was revised on September 4,
2018 to reflect improved visibility of Silvertip's production
following the commencement of commercial production as well as
stronger than expected performance at Rochester during the first
half of the year.
Silver Gold Zinc
Lead Silver Equivalent1
(K oz) (oz) (K lbs) (K
lbs) (K oz) Palmarejo 7,500 - 7,900
115,000 - 120,000 — — 14,400 - 15,100
Rochester 4,800 -
5,200 48,000 - 52,000 — — 7,680 - 8,320
Kensington — 115,000
- 120,000 — — 6,900 - 7,200
Wharf — 85,000 - 90,000 — —
5,100 - 5,400
Silvertip 700 - 1,200 —
13,000 - 23,000 11,000 - 18,000 2,030 - 3,480
Total 13,000 - 14,300 363,000 - 382,000
13,000 - 23,000 11,000 - 18,000 36,110 - 39,500
Guidance Based on Third Quarter Average Spot Prices
Silver Gold Zinc
Lead Silver Equivalent1
(K oz) (oz) (K lbs) (K
lbs) (K oz) Palmarejo 7,500 - 7,900
115,000 - 120,000 — — 16,787 - 17,591
Rochester 4,800 -
5,200 48,000 - 52,000 — — 8,676 - 9,399
Kensington — 115,000
- 120,000 — — 9,287 - 9,691
Wharf — 85,000 - 90,000 — —
6,865 - 7,268
Silvertip 700 - 1,200 —
13,000 - 23,000 11,000 - 18,000 2,391 - 4,099
Total 13,000 - 14,300 363,000 - 382,000
13,000 - 23,000 11,000 - 18,000 44,007 - 48,049
Financial Results and Conference Call
Coeur will report its third quarter 2018 financial results on
October 31, 2018 after the New York Stock Exchange closes for
trading. There will be a conference call on November 1, 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, Terry F. D. Smith, Vice President of North American
Operations, Hans Rasmussen, Senior Vice President of Exploration,
and other members of management. A replay of the call will be
available through November 15, 2018.
Replay numbers: (877)
344-7529 (U.S.) (855) 669-9658 (Canada) (412) 317-0088
(International) Conference ID: 101 23 688
The Company anticipates reporting its fourth quarter 2018
financial results on February 13, 2019 after the New York Stock
Exchange closes for trading and holding a conference call on
February 14, 2019 at 11:00 am Eastern Time.
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with five mines in North America. Coeur produces
from its wholly-owned operations: the Palmarejo silver-gold complex
in Mexico, the Silvertip silver-zinc-lead mine in British Columbia,
the Rochester silver-gold mine in Nevada, the Wharf gold mine in
South Dakota, and the Kensington gold mine in Alaska. In addition,
the Company has interests in several precious metals exploration
projects throughout 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 rates, crushing rates, development efforts, operations at
Rochester and Silvertip, gold sales under Palmarejo's gold stream
agreement and timing of filing a technical report and obtaining
permit amendment approval for 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 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, the loss of any third-party smelter to which Coeur
markets its production, 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.
- On February 28, 2018, Coeur divested
the San Bartolomé mine through the sale of its 100%-owned Bolivian
subsidiary. As a result, San Bartolomé is excluded from
consolidated operating statistics for all periods presented unless
otherwise noted.
- Third quarter 2018 production and sales
figures include pre-commercial production from Kensington and
Silvertip.
- Full-year 2018 production guidance for
Kensington and Silvertip include pre-commercial production.
Average Spot Prices
3Q 2018 2Q 2018
1Q 2018 4Q 2017
3Q 2017 Average Silver Spot Price Per Ounce $ 15.02
$ 16.53 $ 16.77 $ 16.73 $ 16.84 Average Gold Spot Price Per
Ounce $ 1,213 $ 1,306 $ 1,329 $ 1,275 $ 1,278
Average Silver to
Gold Spot Equivalence
81:1
79:1 79:1 76:1 76:1 Average Zinc Spot Price Per Pound $ 1.15 $ 1.41
$ 1.55 $ 1.47 $ 1.06
Average Silver to Zinc Spot Equivalence
0.08:1 0.09:1 0.09:1 0.09:1 0.06:1 Average Lead Spot Price
Per Pound $ 0.95 $ 1.08 $ 1.14 $ 1.13 $ 1.06
Average Silver to
Lead Spot Equivalence 0.06:1 0.07:1 0.07:1 0.07:1
0.06:1
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version on businesswire.com: https://www.businesswire.com/news/home/20181009006126/en/
Coeur Mining, Inc.Paul DePartout, Director, Investor
Relations(312) 489-5800www.coeur.com
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