Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE:
CDE) (TSX: CDM) announced it produced 4.6 million ounces of
silver and 60,757 ounces of gold during the second quarter of 2013.
These production levels represent increases of 21% for silver and
7% for gold compared to the first quarter. Palmarejo's silver and
gold production increased 24% and 23%, respectively, over the first
quarter of 2013.
The Company also reaffirmed its full-year 2013 consolidated
production guidance of 18.0-19.5 million ounces of silver and
250,000-265,000 ounces of gold.
Coeur will report its full second quarter operating and
financial results on August 8, 2013.
Table 1: Operational Highlights:
Production
(silver ounces in thousands) 2Q
2013 1Q 2013
Quarter
Variance
Silver
Gold Silver Gold
Silver Gold
Palmarejo 2,045 28,191
1,646 22,965
24 % 23 %
San Bartolomé
1,523 — 1,391 — 9 % n.a.
Rochester 844
9,404 648 8,742 30 % 8 %
Kensington —
23,162 — 25,206 n.a. (8 %)
Endeavor
221 —
150 — 47 %
n.a.
Total 4,633
60,757 3,835
56,913 21 % 7 %
2013 Outlook
The Company's 2013 production guidance remains unchanged. Coeur
anticipates higher than planned silver production from San
Bartolomé and higher than planned gold production from Palmarejo to
offset lower than planned silver and gold production from
Rochester.
Table 2: 2013 Production
Outlook
(silver ounces in thousands)
Country Silver
Gold Palmarejo
Mexico
7,700-8,300 104,000-109,000
San Bartolomé Bolivia 5,600-5,900 —
Rochester Nevada,
USA 4,100-4,500 38,000-42,000
Kensington Alaska, USA —
108,000-114,000
Endeavor Australia
600-800
—
Total
18,000-19,500
250,000-265,000
Mitchell Krebs, President and Chief Executive Officer,
commented, “Our second quarter operating performance improved
significantly compared to this year's first quarter and last year's
fourth quarter. Operating consistency is a key priority for Coeur
and I believe we're making solid progress.
“Since late last year, Coeur has been pursuing a four-prong
strategy designed to maximize the Company's operating cash flow:
(1) identifying and implementing revenue enhancement
opportunities at existing operations such as process recovery
improvements; (2) reducing operating costs, including third
party services, overtime wages, and usage rates of certain
consumables; (3) completing existing capital projects on-time and
on-budget and targeting significantly lower capital expenditures
in 2014; and (4) effectively managing working capital,
including drawing down inventory levels of certain operating
supplies.
“Since May, the management team has been pursuing other
initiatives in response to lower silver and gold prices. We have
eliminated 40 current or open positions from the organization,
several capital projects have been deferred, a review of all
general and administrative costs is underway, nearly 15% of our
2013 generative exploration budget has been reallocated to
nearer-term, higher-grade targets, and our mine plans at each
operation are currently being reviewed and optimized,” Mr. Krebs
added.
“While we will continue to focus on these initiatives in order
to maximize operating cash flow, we will also seek to take
advantage of the current environment to invest in high-quality,
high-return opportunities - both internal and external - that we
believe will strengthen the Company over the long-term,” he
said.
About Coeur
Coeur Mining, Inc. is the largest U.S.-based primary silver
producer and a growing gold producer. The Company has four precious
metals mines in the Americas generating strong production, sales
and cash flow. Coeur produces from its wholly owned operations: the
Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine
in Bolivia, the Rochester silver-gold mine in Nevada and the
Kensington gold mine in Alaska. The Company also has a
non-operating interest in the Endeavor mine in Australia. In
addition, the Company has two silver-gold feasibility stage
projects - the La Preciosa project in Mexico and the Joaquin
project in Argentina. The Company also conducts ongoing exploration
activities in Mexico, Argentina, Nevada, Alaska and Bolivia. The
Company owns strategic investment positions in eight silver and
gold development companies with projects 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 operating results,
production levels, operating costs, exploration results including
efforts to identify nearer-term, higher-grade targets, and expected
results of initiatives to reduce costs, enhance revenue and
maximize operating cash flow. 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
permits necessary for the planned Rochester expansion may not be
obtained, 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 ore 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, 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.
Donald J. Birak, Coeur's Senior Vice President of Exploration
and a qualified person under Canadian National Instrument 43-101,
supervised the preparation of 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, please see the Technical Reports for each
of Coeur's properties as filed on SEDAR at www.sedar.com.
Table
3:
Results of Operations by Mine -
Palmarejo
2Q 2013 1Q 2013
4Q 2012 3Q 2012
2Q 2012 Underground Operations: Tons
mined 183,267 151,232 139,925 143,747 162,820 Average silver grade
(oz/t) 4.59 4.22 4.70 6.13 8.91 Average gold grade (oz/t) 0.11 0.09
0.08 0.09 0.14 Surface Operations: Tons mined 363,758 388,651
465,498 424,380 321,758 Average silver grade (oz/t) 4.95 3.45 2.62
2.79 4.14 Average gold grade (oz/t) 0.04 0.03 0.02 0.03 0.04
Processing: Total tons milled 570,322 573,170 563,123 532,775
489,924 Average recovery rate – Ag 76.5% 78.8% 84.2% 90.0% 84.2%
Average recovery rate – Au 81.2% 90.1% 91.4% 102.5% 92.0% Silver
production - oz (000's) 2,045 1,646 1,555 1,833 2,365 Gold
production - oz 28,191 22,965 19,998 23,702 31,258
Table
4:
Results of Operations by Mine - San
Bartolomé
2Q 2013 1Q 2013
4Q 2012 3Q 2012
2Q 2012 Tons milled 424,310 374,985
363,813 344,349 391,005 Average silver grade (oz/t) 4.0 4.1 4.2 4.9
4.3 Average recovery rate 90.3% 90.6% 88% 90.3% 88.3% Silver
production (000's) 1,523 1,391 1,343 1,526 1,470
Table
5:
Results of Operations by Mine -
Rochester
2Q 2013 1Q 2013
4Q 2012 3Q 2012
2Q 2012 Tons mined 2,457,423 2,924,472
3,031,428 3,170,129 2,585,914 Average silver grade (oz/t) 0.58 0.52
0.51 0.52 0.63 Average gold grade (oz/t) 0.003 0.003 0.005 0.004
0.005 Silver production (000's) 844 648 828 819 713 Gold production
9,404 8,742 12,055 10,599 10,120
Table
6:
Results of Operations by Mine -
Kensington
2Q 2013 1Q 2013
4Q 2012 3Q 2012
2Q 2012 Tons mined 135,123 116,747
140,626 113,770 84,632 Tons milled 127,987 129,057 129,622 123,428
97,794 Average gold grade (oz/t) 0.18 0.20 0.23 0.21 0.23 Average
recovery rate 98.2% 96.2% 96.9% 95.9% 94.2% Gold production 23,162
25,206 28,718 24,391 21,572
Table
7:
Results of Operations by Mine -
Endeavor
2Q 2013 1Q 2013
4Q 2012 3Q 2012
2Q 2012 Silver Production (000's) 221
150 105 140 240
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