Coeur Provides Positive Update on Its Three New Mines
April 07 2010 - 4:01PM
Business Wire
Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC)
today reported continuing operating improvements during the
first quarter at its San Bartolomé and Palmarejo operations.
In addition, the Company announced plans to commence mining
operations in July at its Kensington gold mine in Alaska.
Additional operational and financial details will be provided in
the Company’s first quarter earnings release and conference call in
early May.
Palmarejo
(Mexico)
- Record monthly production in
March of 546,738 silver ounces and 9,225 gold ounces.
- First quarter silver production
was up 25% from the previous quarter to 1.5 million ounces while
first quarter gold production increased 23% to 25,511 ounces.
- First quarter cash operating
costs dropped 57% compared to the fourth quarter to $2.62 per
silver ounce.
- Silver recoveries improved to
73.3% in March and exceeded 80% late in the month, up from 66.3%
for all of 2009.
- 2010 expected production remains
on track to reach 7.9 million ounces of silver and 109,000 ounces
of gold at cash operating costs of under $2.50 per silver
ounce.
San Bartolomé
(Bolivia)
- Coeur announced on March 11th
that it had begun mining in the higher-grade Huacajchi deposit
above the 4,400 meter level. This resulted in significantly
improved production and cost performance in March, which is
expected to continue during the remainder of 2010.
- March production was up 46% over
February to 451,746 silver ounces, which is the highest monthly
production since October 2009.
- March cash operating costs
declined 16% compared to the previous month to $8.26 per silver
ounce. First quarter cash operating costs were $9.05 per ounce,
which were 13% lower than the fourth quarter of 2009.
- 2010 expected production of 7.0
million ounces of silver at cash operating costs of $8.50 per
ounce.
Kensington
(Alaska)
- Initial production is expected
to commence in July with partial first year production of
approximately 50,000 gold ounces.
- Mild winter weather has allowed
construction activities to remain on-schedule and on-budget.
- 85% of the tailings line from
the mill to the tailings facility is now installed.
- Blasting activities will take
place along the Kensington vein this month.
- 120 bed man camp complete and
fully occupied.
“Coeur is off to a strong start the first quarter of 2010
in executing its key objectives of optimizing silver recoveries at
Palmarejo, obtaining access to important mining areas at San
Bartolomé, and starting production at Kensington in July of this
year,” commented Dennis E. Wheeler, Coeur’s Chairman, President,
and Chief Executive Officer. “We believe that, along with a
continued positive silver and gold price environment, Coeur is
expected to achieve a record year in terms of revenues and cash
flows for its shareholders.”
About Coeur
Coeur d'Alene Mines Corporation is one of the world's leading
silver companies and also a significant gold producer. Coeur is
also a recognized leader in environmental stewardship and worker
safety, with nine national and international awards earned over the
past year. The Company’s three new long-life mines include the San
Bartolomé silver mine in Bolivia which began operations in 2008,
the Palmarejo silver/gold mine in Mexico, which began operations in
2009, and the Kensington gold mine in Alaska, which begins
operations in the third quarter 2010. The Company also owns
underground mines in southern Chile and Argentina and one surface
mine in Nevada, and owns a non-operating interest in a low-cost
mine in Australia. The Company conducts exploration activities in
Alaska, Argentina, Chile and Mexico. Coeur common shares are traded
on the New York Stock Exchange under the symbol CDE, the Toronto
Stock Exchange under the symbol CDM, and its CHESS Depositary
Interests are traded on the Australian Securities Exchange under
symbol CXC.
Photos of operations and projects and other information can be
accessed through the Company’s website at www.coeur.com.
Cautionary Statement
This press release contains forward-looking statements within
the meaning of securities legislation in the United States, Canada,
and Australia, including statements regarding anticipated operating
results. Such statements are subject to numerous assumptions and
uncertainties, many of which are outside the control of Coeur.
Operating, exploration and financial data, and other statements in
this presentation are based on information that Coeur believes is
reasonable, but involve significant uncertainties affecting the
business of Coeur, including, but not limited to, future gold and
silver prices, costs, ore grades, estimation of gold and silver
reserves, mining and processing conditions, construction schedules,
currency exchange rates, and the completion and/or updating of
mining feasibility studies, changes that could result from future
acquisitions of new mining properties or businesses, the risks and
hazards inherent in the mining business (including environmental
hazards, industrial accidents, weather or geologically related
conditions), regulatory and permitting matters, risks inherent in
the ownership and operation of, or investment in, mining properties
or businesses in foreign countries, as well as other uncertainties
and risk factors set out in filings made from time to time with the
SEC, the Canadian securities regulators, and the Australian
Securities Exchange, including, without limitation, Coeur’s 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 fourth parties in respect of Coeur, its
financial or operating results or its securities.
Non-GAAP Measures
We supplement the reporting of our financial information
determined under generally accepted accounting principles (GAAP)
with certain non-GAAP financial measures, including cash operating
costs. We believe that these adjusted measures provide meaningful
information to assist management, investors and analysts in
understanding our financial results and assessing our prospects for
future performance. We believe these adjusted financial measures
are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses.
“Operating Costs per Ounce” and “Cash Costs per Ounce” are
calculated by dividing the operating cash costs and cash costs
computed for each of the Company’s mining properties for a
specified period by the amount of gold ounces or silver ounces
produced by that property during that same period. Management uses
cash operating costs and cash costs per ounce as key indicators of
the profitability of each of its mining properties. Gold and silver
are sold and priced in the world financial markets on a U.S. dollar
per ounce basis.
“Cash Operating Costs” and “Cash Costs” are costs directly
related to the physical activities of producing silver and gold,
and include mining, processing and other plant costs, third-party
refining and smelting costs, marketing expense, on-site general and
administrative costs, royalties, in-mine drilling expenditures that
are related to production and other direct costs. Sales of
by-product metals are deducted from the above in computing cash
costs. Cash costs exclude depreciation, depletion and amortization,
accretion, corporate general and administrative expense,
exploration, interest, and pre-feasibility costs. Cash operating
costs include all cash costs except production taxes and royalties,
if applicable. Cash costs are calculated and presented using the
“Gold Institute Production Cost Standard”.
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