Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced second quarter 2018 production of 3.2 million ounces of
silver and 94,052 ounces of gold, or 8.8 million silver equivalent1
ounces. Metal sales for the quarter of 3.2 million ounces of silver
and 94,602 ounces of gold, or 8.9 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)
The Company has raised its full-year production guidance to 37.3
- 40.5 million silver equivalent1 ounces, increasing silver
production guidance to 13.2 - 14.6 million ounces from 12.2 - 13.8
million ounces and gold production guidance to 360,000 - 380,000
ounces from 355,000 - 375,000 ounces due to higher grades at its
Palmarejo operation.
Operations
Second quarter 2018 production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
2Q
2018 1Q 2018 4Q 2017 3Q
2017 2Q 2017 Tons milled
344,073 359,893
389,524 413,086 335,428 Average silver grade (oz/t)
6.86
6.88 6.92 5.53 4.98 Average gold grade (oz/t)
0.11 0.10 0.10
0.08 0.08 Average recovery rate – Ag
87.5% 81.4% 87.0% 83.6%
87.3% Average recovery rate – Au
89.9% 80.4% 92.0% 83.1%
91.1% Ounces Produced Silver (000's)
2,066 2,013 2,346 1,908
1,457 Gold
33,702 29,896 37,537 28,948 24,292 Silver
equivalent1 (000's)
4,088 3,807 4,600 3,644 2,914 Ounces
Sold Silver (000's)
2,092 2,031 2,343 1,794 1,484 Gold
31,207 30,888 38,953 26,554 25,191 Silver equivalent1
(000's)
3,964 3,884 4,681 3,387 2,996 Silver equivalent1
(average spot) (000's)
4,557 4,479 5,331 3,809 3,324
- Second quarter silver equivalent1
production of 4.1 million ounces was 7% higher compared to the
first quarter, with silver production of 2.1 million ounces
relatively flat and gold production of 33,702 ounces 13% higher.
Compared to the same period the prior year, silver and gold
production increased 42% and 39%, respectively
- Production continued to benefit from
higher-than-projected grades at Independencia, offsetting lower
mining rates caused by the ongoing installation of ground support.
During the second half, these underground improvements are expected
to facilitate a return to mining rates above 4,500 tons per day
("tpd") while expected lower grade stopes are mined
- The new on-site absorption, desorption,
and recovery ("ADR") plant began processing run-of-mine and carbon
inventory, which was stockpiled in the first quarter. Average
recovery rates normalized during the second quarter as this
inventory was processed
- The ADR plant is expected to reach
operational steady-state by year-end and has begun generating
savings in refinery and freight costs as well as reducing the
amount of carbon purchases
- Development towards the La Nación
deposit, located between the Independencia and Guadalupe
underground mines, has commenced and the Company anticipates
production beginning in early 2019. Preliminary plans contemplate
La Nación contributing approximately 400 tpd of mill feed once
ramped up
- Approximately 32% of Palmarejo's gold
sales in both the second quarter and first half of 2018 (or 9,834
and 19,739 ounces, respectively) were to Franco-Nevada at a price
of $800 per ounce. The Company anticipates a similar percentage of
Palmarejo's gold sales to be to Franco-Nevada in the second half of
the year
- The Company is increasing Palmarejo's
full-year 2018 production guidance to 7.5 - 7.9 million ounces of
silver and 115,000 - 120,000 ounces of gold, or 14.4 - 15.1 million
silver equivalent1 ounces, from 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
2Q
2018 1Q 2018 4Q 2017 3Q
2017 2Q 2017 Tons placed
4,083,028
4,351,131 4,171,451 4,262,011 4,493,100 Average silver grade (oz/t)
0.53 0.54 0.50 0.53 0.53 Average gold grade (oz/t)
0.004 0.003 0.003 0.004 0.003 Ounces Produced Silver (000's)
1,125 1,157 1,361 1,070 1,156 Gold
12,273 11,487
18,995 10,955 10,745 Silver equivalent
1 (000's)
1,861
1,846 2,500 1,727 1,801 Ounces Sold Silver (000's)
1,097
1,119 1,457 1,050 1,135 Gold
12,030 11,163 20,002 10,390
10,658 Silver equivalent1 (000's)
1,819 1,789 2,658 1,674
1,774 Silver equivalent1 (average spot) (000's)
2,048 2,004
2,969 1,839 1,913
- Total tons placed decreased 6%
quarter-over-quarter and 9% year-over-year primarily due to fewer
run-of-mine tons placed
- Gold production increased 7% compared
to the prior quarter and 14% year-over-year and was driven by the
placement of higher gold grade ore close to the liner on the
newly-expanded Stage IV leach pad. Quarterly silver production of
1.1 million ounces was in line with the prior quarter and the
second quarter of 2017
- Higher production during the second
half is expected to be driven by the ongoing ramp up of the Stage
IV leach pad and continued placement of higher grade gold ore
- 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
2Q
2018 1Q 2018 4Q 2017 3Q
2017 2Q 2017 Tons placed
1,075,820
1,076,395 1,124,785 1,150,308 993,167 Average gold grade (oz/t)
0.023 0.022 0.029 0.029 0.024 Ounces produced Gold
22,507 17,936 27,292 25,849 21,358 Silver (000's)
13
12 16 15 13 Gold equivalent1
22,729 18,133 27,560 26,096
21,568 Ounces sold Gold
23,053 17,339 28,975 23,855 21,314
Silver (000's)
14 11 16 14 11 Gold equivalent1
23,282
17,522 29,256 24,085 21,495
- Quarterly tons placed were comparable
to the first quarter and were impacted by scheduled maintenance
downtime and weather. As anticipated, gold production increased 25%
quarter-over-quarter and 5% year-over-year to 22,507 ounces due to
timing of leach pad recoveries
- During the second half of the year,
sustained higher mining and crushing rates are expected to drive
increased production levels while average grade is expected to
remain relatively constant. Planned higher stripping rates for the
remainder of 2018 are expected to provide access to higher grade
material in subsequent years
- The Company is maintaining full-year
2018 production guidance of 85,000 - 90,000 ounces of gold
Kensington, Alaska
2Q
2018 1Q 2018 4Q 2017 3Q
2017 2Q 2017 Tons milled
168,751 158,706
167,631 172,038 163,163 Average gold grade (oz/t)
0.16 0.17
0.22 0.17 0.17 Average recovery rate
92.6% 94.0% 92.8% 94.1%
93.2% Gold ounces produced
25,570 26,064 34,932 27,541
26,424 Gold ounces sold
28,312 27,763 35,634 29,173 29,031
- As anticipated, second quarter gold
production of 25,570 ounces was consistent quarter-over-quarter due
to lower planned grades related to mine sequencing
- Dewatering efforts at Jualin remain
on-schedule and are expected to be completed during the third
quarter, facilitating ramp up of production through year-end. As a
result, production for the remainder of 2018 is expected to be
weighted towards the fourth quarter
- The Company is maintaining full-year
2018 production guidance of 115,000 - 120,000 ounces of gold
Silvertip, British Columbia
- After successfully commissioning the
mill in March, throughput rates steadily climbed throughout the
second quarter. During the second half of June, throughput averaged
slightly above 300 metric tonnes per day and in the final days of
the month achieved 500 metric tonnes per day
- Mining activities remain focused on
underground rehabilitation and development while surface activities
are focused on the planning, construction and commissioning of
various process optimization projects and infrastructure
upgrades
- Exploration at Silvertip targeting
resource conversion is progressing ahead of schedule with over
40,000 meters (133,000 feet) drilled since the program began in
late 2017. Results have been positive, and the Company anticipates
publishing an exploration update in late July in addition to a
technical report later this year
- The Company submitted a permit
amendment application to operate at 1,000 metric tonnes per day
earlier in the quarter and anticipates receiving approval around
year-end
- The Company is maintaining full-year
2018 production guidance of 1.5 - 2.0 million ounces of silver and
23.0 - 28.0 million pounds of both zinc and lead
2018 Production Guidance
Coeur's 2018 production guidance has been revised to reflect
higher expected silver and gold production at Palmarejo due to
higher-than-projected grades during the first half of the year.
Silver Gold Zinc
Lead Silver Equivalent1
(K oz) (oz) (K lbs) (K
lbs) (K oz) Palmarejo 7,500 - 7,900
115,000 - 120,000 — — 14,400 - 15,100
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 13,200 - 14,600 360,000 - 380,000
23,000 - 28,000 23,000 - 28,000 37,330 - 40,480
Financial Results and Conference Call
Coeur will report its second quarter 2018 financial results on
July 25, 2018 after the New York Stock Exchange closes for trading.
There will be a conference call on July 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 August 9, 2018.
Replay numbers: (877) 344-7529
(U.S.) (855) 669-9658 (Canada) (412) 317-0088 (International)
Conference ID: 101 20 458
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,
mining rates, crushing rates, sales under Palmarejo's gold stream
agreement, expectations regarding the ADR plant at Palmarejo,
development efforts at Palmarejo and Kensington, operations at
Rochester, stripping rates at Wharf, dewatering efforts at
Kensington and activities at Silvertip. 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 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.
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
2Q
2018 1Q 2018 4Q 2017 3Q
2017 2Q 2017 Average Silver Spot Price Per
Ounce $ 16.53 $ 16.77 $ 16.73 $ 16.84 $ 17.21
Average Gold Spot Price Per Ounce $ 1,306 $
1,329 $ 1,275 $ 1,278 $ 1,257
Average Silver to Gold Spot
Equivalence 79:1 79:1 76:1 76:1 73:1
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version on businesswire.com: https://www.businesswire.com/news/home/20180709005488/en/
Coeur Mining, Inc.Jonathan Chung, Associate, Investor
RelationsPhone: (312) 489-5800www.coeur.com
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