Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced fourth quarter production of 4.0 million ounces of silver
and 91,551 ounces of gold, or 9.5 million silver equivalent1
ounces.
Full-year 2015 production was 15.9 million
silver ounces, at the high-end of Company guidance of 15.2 - 16.1
million ounces, and 327,908 gold ounces, in-line with Company
guidance of 309,000 - 338,000 ounces. Full-year silver equivalent1
production totaled 35.6 million ounces, at the high-end of Company
guidance of 33.7 - 36.4 million ounces.
In 2016, Coeur expects to produce 14.6 - 16.0
million ounces of silver and 320,000 - 347,000 ounces of gold, or
33.8 - 36.8 million silver equivalent1 ounces.
Quarterly Production Results
Click here for quarterly production
results: http://www.globenewswire.com/NewsRoom/AttachmentNg/8b5b4ad1-b222-49af-aa44-84e1548609a4
2015 Production Results
Coeur's 2015 silver and gold production results
are shown below, along with the Company's most recent production
guidance as of November 2, 2015.
(silver ounces in thousands) |
Silver |
Gold |
Silver Equivalent1 |
|
2015 Guidance |
2015 Result |
2015 Guidance |
2015 Result |
2015 Guidance |
2015 Result |
Palmarejo |
4,700
- 5,000 |
5,149 |
65,000
- 70,000 |
70,922 |
8,600
- 9,200 |
9,404 |
San
Bartolomé |
5,300
- 5,500 |
5,436 |
— |
— |
5,300
- 5,500 |
5,436 |
Rochester |
4,700
- 5,000 |
4,631 |
55,000
- 65,000 |
52,588 |
8,000
- 8,900 |
7,786 |
Endeavor |
500 -
600 |
629 |
— |
— |
500 -
600 |
629 |
Kensington |
— |
— |
115,000 - 125,000 |
126,266 |
6,900
- 7,500 |
7,576 |
Wharf |
— |
56 |
74,000
- 78,000 |
78,132 |
4,440 - 4,680 |
4,744 |
Total |
15,200 - 16,100 |
15,901 |
309,000 - 338,000 |
327,908 |
33,740 - 36,380 |
35,575 |
2016 Production Outlook
Coeur's 2016 silver and gold production guidance
is shown below.
(silver and silver equivalent ounces in
thousands) |
Silver |
Gold |
Silver Equivalent1 |
Palmarejo |
3,800
- 4,300 |
67,000
- 72,000 |
7,820
- 8,620 |
San
Bartolomé |
5,700
- 6,000 |
— |
5,700
- 6,000 |
Rochester |
4,700
- 5,200 |
48,000
- 55,000 |
7,580
- 8,500 |
Endeavor |
350 -
400 |
— |
350 -
400 |
Kensington |
— |
115,000 - 125,000 |
6,900
- 7,500 |
Wharf |
80 -
100 |
90,000
- 95,000 |
5,480
- 5,800 |
Total |
14,630 - 16,000 |
320,000 - 347,000 |
33,830 - 36,820 |
4Q 2015 Operational Results
Fourth quarter operational highlights for each
of Coeur's operations are provided below.
Palmarejo, Mexico |
4Q 2015 |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
Underground
Operations: |
|
|
|
|
|
Tons mined |
|
189,383 |
|
|
190,399 |
|
|
172,730 |
|
|
149,150 |
|
|
187,729 |
|
Average silver
grade (oz/t) |
|
3.96 |
|
|
4.11 |
|
|
3.90 |
|
|
4.34 |
|
|
4.49 |
|
Average gold
grade (oz/t) |
|
0.06 |
|
|
0.10 |
|
|
0.09 |
|
|
0.07 |
|
|
0.06 |
|
Surface
Operations: |
|
|
|
|
|
Tons mined |
|
102,019 |
|
|
247,071 |
|
|
257,862 |
|
|
281,481 |
|
|
320,802 |
|
Average silver
grade (oz/t) |
|
3.86 |
|
|
3.56 |
|
|
3.47 |
|
|
3.79 |
|
|
2.90 |
|
Average gold
grade (oz/t) |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.04 |
|
|
0.03 |
|
Processing: |
|
|
|
|
|
Total tons
milled |
|
301,274 |
|
|
427,635 |
|
|
435,841 |
|
|
451,918 |
|
|
510,813 |
|
Average recovery
rate – Ag |
|
95.4 |
% |
|
87.9 |
% |
|
78.5 |
% |
|
78.7 |
% |
|
80.2 |
% |
Average recovery
rate – Au |
|
88.8 |
% |
|
84.7 |
% |
|
76.2 |
% |
|
73.9 |
% |
|
78.7 |
% |
Silver production
ounces (000's) |
|
1,126 |
|
|
1,422 |
|
|
1,247 |
|
|
1,354 |
|
|
1,444 |
|
Gold production
ounces |
|
14,326 |
|
|
22,974 |
|
|
18,127 |
|
|
15,495 |
|
|
15,237 |
|
Silver-equivalent1
production ounces (000's) |
|
1,986 |
|
|
2,800 |
|
|
2,335 |
|
|
2,284 |
|
|
2,358 |
|
- Transition to higher-grade, higher-margin underground
operations from two ore sources - Guadalupe and Independencia -
remains on-track.
- Full-year 2015 production of 5.1 million silver ounces and
70,922 gold ounces (9.4 million silver equivalent1 ounces) exceeded
the high-end of the Company's guidance range.
- Achieved mining rate of 2,000 tons per day from the Guadalupe
deposit, and averaged a mining rate of approximately 1,700 tons per
day over the entire quarter.
- Reached the Independencia deposit in early January as planned
and expect to achieve first production from the ore body later in
the first quarter.
- Recovery rates continue to climb as a result of several process
enhancements that were implemented during 2015 and due to a higher
amount of ore coming from underground operations.
- Open-pit operations are expected to end in the first quarter of
2016 and mining in the legacy Palmarejo underground is expected to
cease in mid-2016.
Rochester, Nevada |
4Q 2015 |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
Tons placed |
4,411,590 |
4,128,868 |
3,859,965 |
4,013,879 |
3,876,944 |
Average silver grade
(oz/t) |
0.60 |
0.59 |
0.61 |
0.74 |
0.60 |
Average gold grade
(oz/t) |
0.003 |
0.003 |
0.003 |
0.004 |
0.004 |
Silver production
ounces (000's) |
1,107 |
1,086 |
1,294 |
1,144 |
1,170 |
Gold production
ounces |
11,564 |
10,892 |
16,411 |
13,721 |
15,764 |
Silver equivalent1
production ounces (000's) |
1,800 |
1,740 |
2,279 |
1,967 |
2,116 |
- Full-year silver equivalent1 production of 7.8 million ounces
increased 13% over 2014, the second year of double-digit production
growth, and was slightly below the Company's 2015 guidance range
due to numerous snow storms in December and timing of leaching on
the Stage III leach pad.
- Placed an average of 47,000 tons per day on the leach pad in
the fourth quarter, and expect to average 50,000 tons per day by
mid-2016, once ramp up of the recently expanded crusher is
complete.
Kensington, Alaska |
4Q 2015 |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
Tons milled |
|
161,927 |
|
|
165,198 |
|
|
170,649 |
|
|
164,951 |
|
|
167,417 |
|
Average gold grade
(oz/t) |
|
0.22 |
|
|
0.19 |
|
|
0.18 |
|
|
0.24 |
|
|
0.21 |
|
Average recovery
rate |
|
96.0 |
% |
|
93.9 |
% |
|
94.9 |
% |
|
94.8 |
% |
|
94.2 |
% |
Gold production
ounces |
|
33,714 |
|
|
28,799 |
|
|
29,845 |
|
|
33,909 |
|
|
33,533 |
|
- Full-year gold production of 126,266 ounces was 7% higher than
2014 production and represents highest level since operations began
in 2010. Record operating results were due to a 16% increase in the
average grade as well as a higher recovery rate.
- Development of the Jualin decline has advanced approximately
1,500 feet and remains on-schedule. Underground drilling of the
high-grade Jualin deposit, which is designed to increase confidence
levels of existing resources and to expand the size of the ore
body, is expected to begin during the first quarter of 2016.
Wharf, South Dakota |
4Q 2015 |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
Tons placed |
|
1,147,130 |
|
|
1,149,744 |
|
|
887,409 |
|
|
415,996 |
|
— |
Average gold grade
(oz/t) |
|
0.032 |
|
|
0.035 |
|
|
0.025 |
|
|
0.020 |
|
— |
Average plant recovery
rate - Au |
|
97.3 |
% |
|
92.8 |
% |
|
76.7 |
% |
|
85.9 |
% |
— |
Gold production
ounces |
|
31,947 |
|
|
23,104 |
|
|
16,472 |
|
|
6,609 |
|
— |
Silver production
ounces |
|
17,043 |
|
|
19,365 |
|
|
19,336 |
|
— |
— |
Gold equivalent1
production ounces |
|
32,231 |
|
|
23,427 |
|
|
16,794 |
|
|
6,609 |
|
— |
- Full-year production of 79,061 gold equivalent1 ounces exceeded
the Company's guidance range and reflects Coeur's ownership since
February of 2015.
- Strong crushing rates and process plant improvements led to a
38% increase in gold equivalent production during the fourth
quarter compared with the third quarter.
- Improved process plant efficiencies have led to a significant
increase in the average plant recovery rate since acquiring the
operation in early 2015.
- Full-year 2016 production is expected to be approximately 20%
higher than 2015 production.
San Bartolomé, Bolivia |
4Q 2015 |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
Tons milled |
|
475,695 |
|
|
373,201 |
|
|
457,232 |
|
|
406,951 |
|
|
454,136 |
|
Average silver grade
(oz/t) |
|
3.84 |
|
|
3.76 |
|
|
3.73 |
|
|
3.65 |
|
|
3.77 |
|
Average recovery
rate |
|
84.9 |
% |
|
84.0 |
% |
|
87.6 |
% |
|
81.6 |
% |
|
88.0 |
% |
Silver production
ounces (000's) |
|
1,551 |
|
|
1,178 |
|
|
1,495 |
|
|
1,213 |
|
|
1,506 |
|
- Fourth quarter production increased 32% compared with the third
quarter.
- Coeur recently increased its purchases of higher-grade ore from
local sources to supplement tonnage from ongoing mining activities.
Approximately 15% of fourth quarter production was derived from
third-party ore purchases.
- Full-year 2016 production is expected to be 5-10% higher than
2015 full-year production of 5.4 million silver ounces, with
approximately 30% expected to be attributable to third-party ore
purchases.
Endeavor, Australia |
4Q 2015 |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
Silver production
ounces (000's) |
172 |
121 |
204 |
133 |
191 |
- Silver production received from the Company's silver stream on
the Endeavor mine in Australia increased by 42% compared to
the third quarter and totaled 629,000 ounces for the full-year.1.
Silver and gold equivalence calculated using a 60:1 silver to gold
ratio.
Financial Results and Conference
Call
Coeur will report its full operational and
financial results for the fourth quarter and full-year 2015 on
February 10, 2016 after the New York Stock Exchange closes for
trading. There will be a conference call on February 11, 2016 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 |
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,
Senior Vice President of Exploration, and other members of
management.A replay of the call will be available through February
25, 2016.
Replay numbers: |
(877) 344-7529 (US) |
|
(855) 669-9658 (Canada) |
|
(412) 317-0088 (International) |
Conference ID: |
100 77 791 |
About CoeurCoeur 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 2,000 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, grades, margins,
operations at Palmarejo, and development efforts at Palmarejo and
Kensington. 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.
For Additional Information:
Rebecca Hussey, Senior Analyst, Investor
Relations(312) 489-5827
www.coeur.com
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