Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced second quarter production of 4.0 million ounces of silver
and 92,726 ounces of gold, or 9.6 million silver equivalent1
ounces. Coeur is maintaining 2016 production guidance of 33.8 -
36.8 million silver equivalent1 ounces.
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Quarterly Production Results (Graphic:
Business Wire)
Second quarter production highlights for each of Coeur's
operations are provided below.
Palmarejo, Mexico
2Q 2016 1Q 2016 4Q 2015
3Q 2015 2Q 2015 Underground Operations:
Tons mined
283,971 215,642 189,383 190,399 172,730 Average
silver grade (oz/t)
5.40 4.21 3.96 4.11 3.90 Average gold
grade (oz/t)
0.08 0.07 0.06 0.10 0.09 Surface Operations:
Tons mined
1,695 35,211 102,018 247,071 257,862 Average
silver grade (oz/t)
7.77 4.18 3.86 3.56 3.47 Average gold
grade (oz/t)
0.07 0.04 0.03 0.03 0.03 Processing: Total tons
milled
270,142 246,533 301,274 427,635 435,841 Average
recovery rate – Ag
89.5% 89.1% 95.4% 87.9% 78.5% Average
recovery rate – Au
86.4% 92.1% 88.8% 84.7% 76.2% Silver
production ounces (000's)
1,307 933 1,126 1,422 1,247 Gold
production ounces
18,731 14,668 14,326 22,974 18,127
Silver-equivalent1 production ounces
(000's)
2,431 1,813 1,985 2,800 2,335
- Transition to lower-tonnage,
higher-grade, higher-margin underground operations at Guadalupe and
Independencia remains on-track. Open pit mining operations were
completed in mid-April while mining of the legacy underground area
is now expected to extend into the third quarter
- Silver production increased 40% and
gold production increased 28% compared to the first quarter due
mostly to higher grades from underground operations at
Guadalupe
- Average mining rate of 2,200 tons per
day was achieved at Guadalupe in the second quarter, up from 1,850
tons per day in the first quarter
- Development and mining at Independencia
continues on-schedule and is expected to reach a mining rate of
1,000 tons per day by year-end
- Maintaining full-year 2016 production
guidance of 3.9 - 4.4 million silver ounces and 67,000 - 72,000
gold ounces
Rochester, Nevada
2Q 2016 1Q 2016 4Q 2015
3Q 2015 2Q 2015 Tons placed
6,402,013 4,374,459 4,411,590 4,128,868 3,859,965 Average
silver grade (oz/t)
0.54 0.64 0.60 0.59 0.61 Average gold
grade (oz/t)
0.003 0.004 0.003 0.003 0.003 Silver production
ounces (000's)
1,197 929 1,107 1,086 1,294 Gold production
ounces
13,940 10,460 11,564 10,892 16,411
Silver equivalent1 production ounces
(000's)
2,033 1,557 1,800 1,740 2,279
- Silver equivalent1 production increased
31% in the second quarter due mostly to a 46% increase in tons
placed compared to the first quarter
- Crushing rates and tons placed continue
to climb and are expected to lead to further production increases
in the second half of the year
- The Record of Decision was received
from the Bureau of Land Management on June 30th, allowing for the
construction of an additional 120 million tons of leach pad
capacity to begin in the second half of 2016
- Maintaining full-year 2016 production
guidance of 4.8 - 5.3 million silver ounces and 48,000 - 55,000
gold ounces
Kensington, Alaska
2Q 2016 1Q 2016 4Q 2015
3Q 2015 2Q 2015 Tons milled
157,117 159,360 159,666 165,198 170,649 Average gold grade
(oz/t)
0.22 0.21 0.22 0.19 0.18 Average recovery rate
94.1% 95.8% 96.0% 93.9% 94.9% Gold production ounces
32,210 31,974 33,713 28,799 29,845
- Consistent mining rates, grade and
recovery rates were achieved during the second quarter
- Underground drilling commenced at
Jualin in the second quarter with an initial reserve estimate
expected at year-end. Development of the Jualin decline continues
to advance and is approximately 50% complete
- Maintaining full-year 2016 production
guidance of 115,000 - 125,000 gold ounces
Wharf, South
Dakota 2Q 2016 1Q 2016 4Q
2015 3Q 2015 2Q 2015 Tons placed
915,631 974,663 1,147,130 1,149,744 887,409 Average gold
grade (oz/t)
0.037 0.031 0.032 0.035 0.025 Average plant
recovery rate - Au
89.6% 96.6% 97.3% 92.8% 76.7% Gold
production ounces
27,846 20,970 31,947 23,104 16,472 Silver
production ounces (000's)
35 13 18 19 19
Gold equivalent1 production ounces
28,433 21,186 32,231 23,427 16,794
- Gold equivalent1 production increased
34% compared to the prior quarter due to higher grades and timing
of recoveries. Recovery rates were lower during the quarter due to
plant maintenance that was completed in May and are expected to
return to prior levels during the third quarter
- Higher production levels expected in
the second half of 2016 as a result of seasonal mining in the
higher-grade Golden Reward pit
- Maintaining full-year 2016 production
guidance of 90,000 - 95,000 gold ounces
San Bartolomé,
Bolivia 2Q 2016 1Q 2016
4Q 2015 3Q 2015 2Q 2015 Tons
milled
440,441 407,806 475,695 373,201 457,232 Average
silver grade (oz/t)
3.79 3.64 3.84 3.76 3.73 Average
recovery rate
87.4% 93.1% 84.9% 84.0% 87.6% Silver
production ounces (000's)
1,458 1,382 1,550 1,178 1,495
- Increased production in the second
quarter driven by higher mining rates and a higher average silver
grade
- Purchases of high grade ore continue to
contribute approximately one-third of San Bartolomé's
production
- Maintaining full-year 2016 production
guidance of 5.8 - 6.1 million silver ounces
Coeur Capital, Inc.
Endeavor,
Australia 2Q 2016 1Q 2016
4Q 2015 3Q 2015 2Q 2015 Silver
production ounces (000's)
33 115 171 121 204
- Silver production received from the
Company's silver stream on the Endeavor mine in Australia continued
to decline following a curtailment of production by the operator
due to lower lead and zinc prices. Coeur is maintaining its revised
2016 production guidance for Endeavor of 175,000 - 200,000 silver
ounces
2016 Production Outlook
Coeur's 2016 silver and gold production guidance is unchanged as
shown below.
(silver and silver equivalent ounces in thousands)
Silver Gold Silver
Equivalent1 Palmarejo 3,875 - 4,400
67,000 - 72,000 7,895 - 8,720
Rochester 4,750 - 5,250
48,000 - 55,000 7,630 - 8,550
San Bartolomé 5,750 - 6,050 —
5,750 - 6,050
Endeavor 175 - 200 — 175 - 200
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
Financial Results and Conference
Call
Coeur will report its full operational and financial results for
second quarter 2016 on July 27, 2016 after the New York Stock
Exchange closes for trading. There will be a conference call on
July 28, 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 August 11, 2016.
Replay numbers: (877) 344-7529 (US)
(855) 669-9658 (Canada) (412) 317-0088 (International) Conference
ID: 100 88 894
About Coeur
Coeur Mining is a well-diversified, growing precious metals
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 complex in Mexico, the
Rochester silver-gold mine in Nevada, the Kensington gold mine in
Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé
silver mine in Bolivia. The Company also has a non-operating
interest in the Endeavor mine in Australia as well as royalty
interests in Ecuador and New Zealand. In addition, the Company has
two silver-gold exploration stage projects – the La Preciosa
project in Mexico and the Joaquin project in Argentina. Coeur
conducts ongoing exploration activities in Alaska, Nevada, Mexico,
Bolivia and Argentina.
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 production, operations
at the Palmarejo complex, mining rates, production levels at
Rochester, exploration and development efforts at Kensington and
crushing rates. 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 report on Form 10-K. 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.
Notes
1. Silver and gold equivalence calculated using a 60:1 silver to
gold ratio.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160707006422/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5837orRebecca Hussey, Manager,
Investor Relations(312) 489-5827www.coeur.com
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