Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced first quarter 2018 production of 3.2 million ounces of
silver and 85,383 ounces of gold, or 8.3 million silver equivalent1
ounces. Metal sales for the quarter of 3.2 million ounces of silver
and 87,153 ounces of gold, or 8.4 million silver equivalent1
ounces, were in-line with production.
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Quarterly Production Results. Note: On
February 28, 2018, Coeur divested the San Bartolomé mine through
the sale of its 100%-owned Bolivian subsidiary. As a result, San
Bartolomé is excluded from consolidated operating statistics for
all periods presented unless otherwise noted. (Graphic: Business
Wire)
During the quarter, the Company also announced it had commenced
production at its high-grade Silvertip mine in British Columbia,
Canada slightly ahead of schedule. Mill throughput continues to
ramp-up according to plan with commercial production expected to be
achieved by mid-year.
Coeur's full-year production guidance of 36.0 - 39.4 million
silver equivalent1 ounces remains unchanged.
Operations
First quarter 2018 production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017 Tons
milled
359,893 389,524 413,086 335,428 360,383 Average
silver grade (oz/t)
6.88 6.92 5.53 4.98 4.91 Average gold
grade (oz/t)
0.10 0.10 0.08 0.08 0.09 Average recovery rate
– Ag
81.4% 87.0% 83.6% 87.3% 86.5% Average recovery rate –
Au
80.4% 92.0% 83.1% 91.1% 93.7% Ounces Produced Silver
(000's)
2,013 2,346 1,908 1,457 1,531 Gold
29,896
37,537 28,948 24,292 30,792 Silver equivalent1 (000's)
3,807
4,600 3,644 2,914 3,378 Ounces Sold Silver (000's)
2,031
2,343 1,794 1,484 1,965 Gold
30,888 38,953 26,554 25,191
41,045 Silver equivalent1 (000's)
3,884 4,681 3,387 2,996
4,427 Silver equivalent1 (average spot) (000's)
4,479 5,331
3,809 3,324 4,837
- Year-over-year quarterly silver
production increased 31%, while quarterly gold production declined
3%. First quarter silver and gold production decreased 14% and 20%
quarter-over-quarter, respectively, to 2.0 million and 29,896
ounces
- Silver and gold grades were 40% and 11%
higher, respectively, year-over-year and flat quarter-over-quarter.
Palmarejo's production benefited from mining of higher grade
material over the past two quarters in a faulted zone within
Independencia, which the Company had conservatively modeled. This
was offset by temporarily lower mining rates as additional ground
support was installed along the fault. Grades are expected to
gradually decrease in subsequent quarters, while mining rates are
expected to return to 4,500 tons per day
- At the end of the first quarter,
Palmarejo began commissioning an on-site absorption, desorption,
and recovery ("ADR") plant, which resulted in a temporary increase
in in-process inventory and lower recovery rates, which are
expected to normalize during the second quarter
- During the quarter, 9,906 ounces, or
approximately 32%, of Palmarejo's gold sales were to Franco-Nevada
at a price of $800 per ounce. For the full year, the Company
anticipates a similar percentage of Palmarejo's gold sales to be to
Franco-Nevada
- Full-year 2018 production guidance is
unchanged at 6.5 - 7.1 million ounces of silver and 110,000 -
115,000 ounces of gold, or 13.1 - 14.0 million silver equivalent1
ounces
Rochester, Nevada
1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017 Tons
placed
4,351,131 4,171,451 4,262,011 4,493,100 3,513,708
Average silver grade (oz/t)
0.54 0.50 0.53 0.53 0.58 Average
gold grade (oz/t)
0.003 0.003 0.004 0.003 0.002 Ounces
Produced Silver (000's)
1,157 1,361 1,070 1,156 1,127 Gold
11,487 18,995 10,955 10,745 10,356
Silver equivalent1 (000's)
1,846 2,500 1,727 1,801 1,749 Ounces Sold Silver (000's)
1,119 1,457 1,050 1,135 1,289 Gold
11,163 20,002
10,390 10,658 13,592 Silver equivalent1 (000's)
1,789 2,658
1,674 1,774 2,104 Silver equivalent1 (average spot) (000's)
2,004 2,969 1,839 1,913 2,240
- Total tons placed increased 4%
quarter-over-quarter and 24% year-over-year
- Production returned to normalized
levels during the first quarter, with silver equivalent1 production
totaling 1.8 million ounces, which was 6% higher year-over-year.
Compared to the prior quarter, production declined 26%. Fourth
quarter 2017 production reflected accelerated recoveries from the
newly-expanded Stage IV leach pad and from the placement of
higher-grade gold ore during the second half of 2017
- The Company is maintaining full-year
2018 production guidance of 4.2 - 4.7 million ounces of silver and
45,000 - 50,000 ounces of gold, or 6.9 - 7.7 million silver
equivalent1 ounces
Wharf, South Dakota
1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017 Tons
placed
1,076,395 1,124,785 1,150,308 993,167 1,292,181
Average gold grade (oz/t)
0.022 0.029 0.029 0.024 0.027
Ounces produced Gold
17,936 27,292 25,849 21,358 20,873
Silver (000's)
12 16 15 13 20 Gold equivalent1
18,133
27,560 26,096 21,568 21,207 Ounces sold Gold
17,339 28,975
23,855 21,314 24,093 Silver (000's)
11 16 14 11 33 Gold
equivalent1
17,522 29,256 24,085 21,495 24,636
- As anticipated, first quarter gold
production declined 34% quarter-over-quarter and 14% year-over-year
to 17,936 ounces primarily due to lower grades
- While production levels are anticipated
to be higher throughout the remainder of the year, 2018 is expected
to be a lower grade year as previously disclosed. Higher stripping
rates during 2018 are expected to result in access to higher grade
material in subsequent years
- Full-year production guidance of 85,000
- 90,000 ounces of gold remains unchanged
Kensington, Alaska
1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017 Tons
milled
158,706 167,631 172,038 163,163 165,895 Average gold
grade (oz/t)
0.17 0.22 0.17 0.17 0.17 Average recovery rate
94.0% 92.8% 94.1% 93.2% 94.0% Gold ounces produced
26,064 34,932 27,541 26,424 26,197 Gold ounces sold
27,763 35,634 29,173 29,031 32,144
- First quarter gold production declined
25% quarter-over-quarter to 26,064 ounces due to lower planned
grades related to mine sequencing as well as maintenance-related
mill downtime. Production was flat compared to last year's first
quarter
- Development mining continued at Jualin
during the quarter, where production is expected to increase in the
second half of the year following completion of dewatering efforts.
During the second quarter, production at Kensington is expected to
remain consistent with first quarter production levels
- 2018 gold production guidance remains
unchanged at 115,000 - 120,000 ounces
2018 Production Guidance
(Unchanged)
Silver Gold
Zinc Lead Silver Equivalent1
(K oz) (oz) (K lbs)
(K lbs) (K oz) Palmarejo 6,500 -
7,100 110,000 - 115,000 — — 13,100 - 14,000
Rochester 4,200
- 4,700 45,000 - 50,000 — — 6,900 - 7,700
Kensington —
115,000 - 120,000 — — 6,900 - 7,200
Wharf — 85,000 - 90,000
— — 5,100 - 5,400
Silvertip 1,500 - 2,000 —
23,000 - 28,000 23,000 - 28,000 4,030 - 5,080
Total 12,600 - 13,800 355,000 - 375,000
23,000 - 28,000 23,000 - 28,000 36,030 - 39,380
Financial Results and Conference Call
Coeur will report its first quarter 2018 financial results on
April 25, 2018 after the New York Stock Exchange closes for
trading. There will be a conference call on April 26, 2018 at 11:00
a.m. Eastern Time.
Dial-In Numbers: (855) 560-2581 (U.S.) (855) 669-9657
(Canada) (412) 542-4166 (International) Conference ID: Coeur Mining
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 May 10, 2018.
Replay numbers: (877) 344-7529 (U.S.) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID: 101 17 926
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with five mines in North America. Coeur produces
from its wholly-owned operations: the Palmarejo silver-gold complex
in Mexico, the Silvertip silver-zinc-lead mine in British Columbia,
the Rochester silver-gold mine in Nevada, the Kensington gold mine
in Alaska, and the Wharf gold mine in South Dakota. In addition,
the Company has interests in several precious metals exploration
projects throughout North 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 production, grades, the
timing of commercial production at Silvertip, inventory and
recovery rates at Palmarejo, sales under Palmarejo's gold stream
agreement, stripping rates at Wharf, and dewatering efforts at
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, silver, zinc, and lead 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, the loss
of any third-party smelter to which Coeur markets its production,
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.
Christopher Pascoe, Coeur's Director, Technical Services and a
qualified person under Canadian National Instrument 43-101,
approved 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
- Silver and gold equivalence assumes a
60:1 silver-to-gold ratio, except where noted as average spot
prices. Please see the table below for average applicable spot
prices and corresponding ratios. Silver and zinc equivalence
assumes a 0.06:1 silver-to-zinc ratio. Silver and lead equivalence
assumes a 0.05:1 silver-to-lead ratio.
Average Spot Prices
1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017
Average Silver Spot Price Per Ounce $
16.77
$ 16.73 $ 16.84 $ 17.21 $ 17.42
Average Gold Spot Price Per
Ounce $
1,329
$ 1,275 $ 1,278 $ 1,257 $ 1,219
Average Silver to Gold Spot
Equivalence
79:1
76:1 76:1 73:1 70:1
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version on businesswire.com: https://www.businesswire.com/news/home/20180409005445/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and TreasurerPhone: (312) 489-5800www.coeur.com
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