Provides Three-Year Operating Outlook
Coeur Mining, Inc.âs (âCoeurâ or the âCompanyâ) (NYSE:
CDE)(TSX: CDM) President and Chief Executive Officer, Mitchell J.
Krebs, and other members of senior management will present at the
Denver Gold Forum at the Hyatt Regency Denver at 2:50 p.m. MST
(4:50 p.m. EST) on September 24, 2013. The presentation will be
webcast on the Companyâs website at www.coeur.com and a PDF of
the slide presentation is posted there as well. The Denver Gold
Forum is an invitation-only investment conference for fund and
portfolio managers, institutional investors and analysts and
executive management of the worldâs leading mining companies.
In addition to the three-year operational outlook, highlights of
the Companyâs presentation include:
- Recent increases in reserves at
Rochester and plans to expand capacity to further extend the
mineâs life
- An overview of the La Preciosa silver
and gold project located in Durango, Mexico
- A summary of ongoing cost reduction
initiatives
- Highlights of the Companyâs ongoing
cash flow protection program
Coeur has narrowed its full-year 2013 projected consolidated
silver and gold production within the original guidance range as
shown in Tables 1 and 2. In addition, Coeur is providing a
mine-by-mine outlook of key operational metrics, including expected
production through 2016. This outlook indicates modest growth in
both silver and gold ounces compared to 2012. The forecast
incorporates current mine plans, which are based solely on
reserves, other than La Preciosaâs expected 2016 production, and
does not take into account any drilling data from the Companyâs
2013 $37 million exploration program. These plans will continue to
evolve and will be updated as additional drill data is incorporated
into the Companyâs resource models.
Â
Table 2:
Production Outlook Detail1
(silver ounces in millions, gold ounces
in thousands)
   Â
Â
2013 Â 2014 Â 2015 Â 2016 Â Â
Silver  Gold  Silver  Gold Â
Silver  Gold  Silver  Gold
Palmarejo
7.7 - 8.3 Â 108 - 110 7.7 - 7.9 Â 113 - 115 7.8 - 8.0
 100 - 102 7.5 - 7.7  66 - 68
San Bartolomé
5.9 - 6.0 - 5.9 - 6.1 - 5.9 - 6.1 - 5.7 - 5.9 -
Rochester
3.7 - 4.0 34 - 36 4.5 - 4.7 33 - 35 4.5 - 4.7 42 - 44 4.6 - 4.8 45
- 47
Kensington
Â
108 - 112 - 110 â 112 - 104 - 106 - 110 â 112
Endeavor2 0.7 - 0.8 - 0.5 - 0.6 - 0.9 - 1.0 - 1.0 -
1.1 -
La Preciosa  -  -  -  -
 -  -  2.0 - 3.0  3 - 4
Total
 18.0 - 19.1  250 - 258  18.6 - 19.3 Â
256 - 262 Â 19.1 - 19.8 Â 246 - 252 Â 20.8 - 22.5
 224 - 231
1.
See Cautionary Statements below and the
Technical Reports for each of Coeurâs properties available at
www.sedar.com, including the assumptions and qualifications
contained therein.
2.
2014-2016 production forecasts for
Endeavor, which Coeur does not operate, are as contained in the
most recent Technical Report for Endeavor filed on SEDAR at
www.sedar.com.
Â
Mitchell J. Krebs, Coeurâs President and Chief Executive
Officer, said, âOperating consistently and efficiently represent
the basic foundation of any successful mining company. This
three-year outlook reflects progress we are making in our ability
to plan and execute against that plan. It also demonstrates the
strong and sustainable platform we believe we now have in place,
which provides us with numerous opportunities to enhance revenues,
reduce costs, and fund organic and external growth projects that
meet our return criteria. Based on todayâs silver and gold
prices, we expect to generate significant after-tax operating cash
flow and positive net cash flow through 2016.â
Â
Table 3:
Production Detail â Palmarejo, Mexico
  Â
(tons and $ in millions) Â
2014 Â 2015 Â 2016
Open-Pit Mined Ore, tons 1.3
1.3 1.5
Underground Mined Ore, tons 1.0 1.0 0.7
Milled
Ore, tons  2.3  2.3  2.3
Open-Pit
Silver Grade, oz/ton 3.9 3.8 4.0
Underground Silver Grade,
oz/ton 4.8 4.9 4.4
Open-Pit Gold Grade, oz/ton 0.03 0.03
0.02
Underground Gold Grade, oz/ton  0.09 Â
0.08 Â 0.07
Silver Recovery 81% 83% 83%
Gold
Recovery  84%  85%  85% Â
Palmarejo Highlights:
- Revenue enhancement projects are
expected to enable higher recovery rates for both silver and gold
compared to recent quarters.
- Drilling began at the Chapotillo and
Tucson extensions in 2013, with encouraging early results
suggesting the potential to extend the life of the open pit at
Palmarejo beyond 2016.
- Guadalupe is expected to contribute
approximately 1 million ounces of silver and 15,000 ounces of gold
in 2014, the first year of production.
- After the completion of the development
of the Guadalupe ore body, it is expected that Palmarejo will have
the flexibility to mine from multiple underground and open pit
deposits.
- The Las Animas open pit (located at the
south end of Guadalupe) is expected to begin production in
2016.
- Early indications from drilling at El
Salto (located adjacent to Guadalupe) indicate additional expansion
opportunity for the Las Animas near-surface deposit.
- The La Patria gold-silver, near-surface
deposit located approximately seven kilometers south-southwest of
Palmarejo represents a potential source of production beyond 2016.
La Patria holds 15.9 million short tons containing 9.8 million
ounces of indicated silver resources (average grade 0.56 oz/ton)
and 491,000 ounces of indicated gold resources (average grade 0.03
oz/ton) in addition to 6.7 million short tons containing 2.5
million ounces of inferred silver resources (average grade 0.33
oz/ton) and 178,000 ounces of inferred gold resources (average
grade 0.02 oz/ton) effective December 31, 2012. There are no
measured resources at La Patria.
Â
Table 4:
Production Detail â San Bartolomé, Bolivia
  Â
(tons and $ in millions) Â
2014 Â 2015 Â 2016
Mined Ore, tons 3.4 3.4 3.4
Processed Ore, tons  2.0  2.0  2.0
Silver Grade, oz/ton 3.7 3.8 3.6
Silver Recovery
 83%  83%  83% Â
San Bartolomé Highlights:
- The forecast indicates continued
production consistency at San Bartolomé through 2016, with little
variance expected in ounces produced, grade, or recovery rate in
the 2014-2016 forecast.
- Completion of the process plant
expansion in 2013 is projected to increase throughput capacity
10%-15%, which should enable San Bartolomé to maintain silver
ounces produced despite expected lower grades compared to
2013.
Â
Table 5:
Production Detail â Rochester, Nevada
  Â
(tons and $ in millions) Â
2014 Â 2015 Â 2016
Open-Pit Mined Ore, tons 13.8
15.9 15.9
Ore on Leach Pads, tons  13.1  15.3
 16.1
Open-Pit Silver Grade, oz/ton 0.58 0.43 0.43
Stockpile Silver Grade, oz/ton 0.48 0.49 0.50
Open-Pit
Gold Grade, oz/ton 0.004 0.005 0.006
Stockpile Gold Grade,
oz/ton  0.002  0.003  0.003
Silver
Recovery 62% 61%
63%
Gold Recovery  85%  86%  90% Â
Rochester Highlights:
- The Company anticipates increasing
annual crushing rates at Rochester to approximately 18.5 million
tons beyond 2017.
- Recent investments in existing heap
leach pads at Rochester have increased total capacity by 72 million
tons, which Coeur expects will enable operations to continue into
the second half of 2017.
- The Company is in the process of
obtaining permits for 120 million tons of additional pad capacity,
which are expected to be received by mid-2016. This expanded
capacity is expected to further extend Rochesterâs mine life
based on existing reserves through at least 2023.
- The Company is also assessing the
optimal scenario for a further expansion of Rochester, targeting
opportunities to expand reserves from the Companyâs measured and
indicated resources totaling approximately 180 million tons.
Â
Table 6:
Production Detail â Kensington, Alaska
  Â
(tons and $ in millions) Â
2014 Â 2015 Â 2016
Mined Ore, tons 0.62 0.62
0.62
Milled Ore, tons  0.62  0.62  0.62
Gold Grade, oz/ton 0.19 0.18 0.19
Gold Recovery
 95%  95%  95% Â
Kensington Highlights:
- The forecast demonstrates improved
production consistency at Kensington through 2016 compared to
recent quarters, with little variance expected in ounces produced,
grade, or recovery rate.
- Recent encouraging exploration results
are being pursued to expand the deposit and define new sources of
proximal higher-grade mineralization
About CoeurCoeur 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 â 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 Coeurâs anticipated production
levels and financial performance, initiatives to operate
consistently and efficiently, enhance revenues, reduce costs,
complete organic and external growth projects, expand capacity,
increase reserve levels, expansion and development efforts,
expectations as to recovery rates, metal grades, production
consistency, receipt of permits, increased crushing rates and mine
lives, and the ability to generate operating cash flow and
after-tax net 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.
Information included in this news release regarding the La
Preciosa project is based on the results of a preliminary economic
assessment (âPEAâ). The PEA is preliminary in nature and it
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be characterized as
mineral reserves and there is no certainty that the results
reflected in the PEA will be realized. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Mineral resource estimates do not account for minability,
selectivity, mining loss and dilution. There is no certainty that
the inferred mineral resources will be converted to the measured
and indicated categories or that the measured and indicated mineral
resources will be converted to the proven and probable mineral
reserve categories. There are no mineral reserves at La Preciosa.
The NI 43-101-compliant Technical Report, disclosing results of the
PEA, is available on www.sedar.com.
Donald J. Birak, Coeur's Senior Vice President of Exploration
and a qualified person under Canadian National Instrument 43-101,
reviewed and approved the scientific and technical disclosures
concerning Coeur's mineral projects contained herein. 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.
Cautionary Note to U.S. Investors-The United States Securities
and Exchange Commission permits U.S. mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce. We may
use certain terms in public disclosures, such as "measured,"
"indicated," "inferredâ and âresources," that are recognized by
Canadian regulations, but that SEC guidelines generally prohibit
U.S. registered companies from including in their filings with the
SEC. U.S. investors are urged to consider closely the disclosure in
our Form 10-K which may be secured from us, or from the SEC's
website at http://www.sec.gov.
Photos/Multimedia Gallery Available:
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Coeur Mining, Inc.Bridget Freas, Director, Investor
Relations312-268-5784orDonna Mirandola, Director, Corporate
Communications312-810-8138www.coeur.com
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