Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced preliminary third quarter production of 3.8 million
ounces of silver and 85,658 ounces of gold, or 9.0 million silver
equivalent1 ounces. Coeur is maintaining its 2015 total production
guidance of 33.1 - 35.9 million silver equivalent1 ounces.
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3Q 2015 Operational Results
Third quarter operational highlights for each of
the Company's mines are provided below.
Palmarejo, Mexico |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Underground
Operations: |
|
|
|
|
|
Tons mined |
|
190,399 |
|
|
172,730 |
|
|
149,150 |
|
|
187,729 |
|
|
169,656 |
|
Average silver
grade (oz/t) |
|
4.11 |
|
|
3.90 |
|
|
4.34 |
|
|
4.49 |
|
|
4.92 |
|
Average gold
grade (oz/t) |
|
0.10 |
|
|
0.09 |
|
|
0.07 |
|
|
0.06 |
|
|
0.10 |
|
Surface
Operations: |
|
|
|
|
|
Tons mined |
|
247,071 |
|
|
257,862 |
|
|
281,481 |
|
|
320,802 |
|
|
343,001 |
|
Average silver
grade (oz/t) |
|
3.56 |
|
|
3.47 |
|
|
3.79 |
|
|
2.90 |
|
|
3.09 |
|
Average gold
grade (oz/t) |
|
0.03 |
|
|
0.03 |
|
|
0.04 |
|
|
0.03 |
|
|
0.03 |
|
Processing: |
|
|
|
|
|
Total tons
milled |
|
427,635 |
|
|
435,841 |
|
|
451,918 |
|
|
510,813 |
|
|
518,212 |
|
Average recovery
rate – Ag |
|
87.9 |
% |
|
78.5 |
% |
|
78.7 |
% |
|
80.2 |
% |
|
82.7 |
% |
Average recovery
rate – Au |
|
84.7 |
% |
|
76.2 |
% |
|
73.9 |
% |
|
78.7 |
% |
|
86.9 |
% |
Silver production
ounces (000's) |
|
1,422 |
|
|
1,247 |
|
|
1,354 |
|
|
1,444 |
|
|
1,533 |
|
Gold production
ounces |
|
22,974 |
|
|
18,127 |
|
|
15,495 |
|
|
15,237 |
|
|
22,514 |
|
Silver-equivalent
production ounces (000's) |
|
2,800 |
|
|
2,335 |
|
|
2,284 |
|
|
2,358 |
|
|
2,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Underground mining rates continue to climb as production
transitions to the Guadalupe deposit and - beginning in early 2016
- the nearby Independencia deposit, which was consolidated through
the recent acquisition of Paramount Gold and Silver.
- Daily mining rates at Guadalupe averaged more than 1,400 tons
per day during the quarter, which is expected to trigger the
accelerated payment of the remaining unpaid amount of the $22
million total deposit from an affiliate of Franco-Nevada
Corporation under the gold stream agreement entered into in October
2014.
- Third quarter production increased 20% mostly due to higher
mining rates at Guadalupe and due to production from higher-grade
areas of the open pit and historic underground zones.
- Higher proportions of Guadalupe ore and an increase in sulfide
content in open-pit ore contributed to higher recovery rates for
both silver and gold. This strong recovery performance is expected
to be maintained in the fourth quarter.
|
|
|
|
|
|
Rochester, Nevada |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons placed |
4,128,868 |
3,859,965 |
4,013,879 |
3,876,944 |
3,892,421 |
Average silver grade
(oz/t) |
0.59 |
0.61 |
0.74 |
0.60 |
0.51 |
Average gold grade
(oz/t) |
0.003 |
0.003 |
0.004 |
0.004 |
0.005 |
Silver production
ounces (000's) |
1,086 |
1,294 |
1,144 |
1,170 |
1,156 |
Gold production
ounces |
10,892 |
16,411 |
13,721 |
15,764 |
11,702 |
Silver-equivalent
production ounces (000's) |
1,740 |
2,279 |
1,967 |
2,116 |
1,858 |
|
|
|
|
|
|
- Silver equivalent production at Rochester declined due to
timing of leaching on the Stage III leach pad.
- Fourth quarter production is expected to rebound, with
full-year silver equivalent production remaining on track to
increase 15% - 30% compared to 2014.
|
|
|
|
|
|
Kensington, Alaska |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons milled |
|
165,198 |
|
|
170,649 |
|
|
164,951 |
|
|
167,417 |
|
|
145,097 |
|
Average gold grade
(oz/t) |
|
0.19 |
|
|
0.18 |
|
|
0.24 |
|
|
0.21 |
|
|
0.23 |
|
Average recovery
rate |
|
93.6 |
% |
|
94.9 |
% |
|
94.8 |
% |
|
94.2 |
% |
|
93.0 |
% |
Gold production
ounces |
|
28,688 |
|
|
29,845 |
|
|
33,909 |
|
|
33,533 |
|
|
30,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Production declined 4% in the third quarter due to lower
recovery rates and mill throughput, partially offset by a slight
increase in head grades.
- Development of the decline into the high-grade Jualin deposit
commenced during the quarter. Underground drilling of Jualin is
expected to begin during the first quarter of 2016.
|
|
|
|
|
|
Wharf, South Dakota |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons placed |
1,149,744 |
887,409 |
415,996 |
— |
— |
Average gold equivalent
grade (oz/t) |
0.035 |
0.025 |
0.020 |
— |
— |
Gold equivalent
production ounces |
23,427 |
16,794 |
6,609 |
— |
— |
|
|
|
|
|
|
- Gold equivalent production increased 40% in the third quarter
mainly due to resumed mining in the higher-grade Golden Reward
pit.
- Fourth quarter gold equivalent production is expected to exceed
the third quarter.
|
|
|
|
|
|
San Bartolomé, Bolivia |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons milled |
|
373,201 |
|
|
457,232 |
|
|
406,951 |
|
|
454,136 |
|
|
471,938 |
|
Average silver grade
(oz/t) |
|
3.76 |
|
|
3.73 |
|
|
3.65 |
|
|
3.77 |
|
|
3.70 |
|
Average recovery
rate |
|
84.0 |
% |
|
87.6 |
% |
|
81.6 |
% |
|
88.0 |
% |
|
86.5 |
% |
Silver production
ounces (000's) |
|
1,178 |
|
|
1,495 |
|
|
1,213 |
|
|
1,506 |
|
|
1,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Third quarter production declined due to a three-week cessation
of mining activity in July caused by political protests in Potosi,
Bolivia.
- Fourth quarter tons milled and production are expected to
rebound to levels consistent with the second quarter.
|
|
|
|
|
|
Endeavor, Australia |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Silver production
ounces (000's) |
121 |
204 |
133 |
191 |
141 |
|
|
|
|
|
|
- Silver production received from the Company's silver stream
from the Endeavor mine in Australia decreased by 41% in the third
quarter.
2015 Production Outlook
Coeur's 2015 total silver and gold production
guidance is unchanged as shown below.
|
|
|
|
(silver and silver equivalent ounces in
thousands) |
Silver |
Gold |
Silver Equivalent |
Palmarejo |
4,200
- 4,700 |
62,000
- 67,000 |
7,920
- 8,720 |
San
Bartolomé |
5,300
- 5,500 |
— |
5,300
- 5,500 |
Rochester |
4,700
- 5,000 |
55,000
- 65,000 |
8,000
- 8,900 |
Endeavor |
500 -
600 |
— |
500 -
600 |
Kensington |
— |
115,000 - 125,000 |
6,900
- 7,500 |
Wharf |
— |
74,000
- 78,000 |
4,440
- 4,680 |
Total |
14,700 - 15,800 |
306,000 - 335,000 |
33,060 - 35,900 |
|
|
|
|
Financial Results and Conference Call
Coeur will report its full operational and
financial results for the third quarter 2015 on November 2, 2015
after the New York Stock Exchange closes for trading. There will be
a conference call on November 3, 2015 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, Inc. |
|
|
The conference call and presentation will also be webcast on the
Company’s website www.coeur.com.
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, Vice President of Exploration,
and other members of management.
A replay of the call will be available through November 17,
2015.
|
|
Replay
numbers: |
(877) 344-7529
(US) |
|
(855) 669-9658
(Canada) |
|
(412) 317-0088
(International) |
Conference ID: |
100 73 689 |
|
|
About Coeur
Coeur Mining is the largest U.S.-based primary
silver producer and a significant gold producer with five precious
metals mines in the Americas employing approximately 2,100 people.
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, the Kensington
gold mine in Alaska, and the Wharf gold mine in South Dakota. The
Company also has a non-operating interest in the Endeavor mine in
Australia in addition to royalties on the Cerro Bayo mine in Chile,
the El Gallo complex in Mexico, the Zaruma mine in Ecuador, and the
Correnso mine in New Zealand. In addition, the Company has two
silver-gold exploration projects - the La Preciosa project in
Mexico and the Joaquin project in Argentina. The Company also
conducts ongoing exploration activities in Alaska, Argentina,
Bolivia, Mexico, and Nevada. The Company owns strategic investment
positions in several silver and gold development companies with
projects in North and South America.
Cautionary StatementThis news
release contains forward-looking statements within the meaning of
securities legislation in the United States and Canada, including
statements regarding anticipated production, tons milled, grades,
margins, recovery rates, operations at Palmarejo, and development
efforts. 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.
Dana Willis, Coeur's Director, Resource Geology
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, Canadian investors should refer to the
Technical Reports for each of Coeur's properties as filed on SEDAR
at sedar.com.
Silver and gold equivalence calculated using a
60:1 silver to gold ratio.
For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
www.coeur.com
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