Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) is
pleased to announce that it declared commercial production
effective September 1, 2018 at its new high-grade Silvertip
silver-zinc-lead mine (“Silvertip”) located in northern British
Columbia.
“The commencement of commercial production at Silvertip is a
significant milestone,” said Mitchell J. Krebs, Coeur’s President
and Chief Executive Officer. “We completed the acquisition of
Silvertip in October 2017 and commenced production in March after
successfully commissioning the mill. Since then, our team has been
focused on optimizing plant performance and on upgrading the mine’s
infrastructure. We continue to be excited about the impact
Silvertip is expected to have on our production, margins and cash
flow beginning next year.
“Optimization efforts at Silvertip will continue over the next
several quarters, with processing rates on-track to average 750
tonnes per day ("mtpd”) by year-end and reach 1,000 mtpd in early
2019. We remain on-track to publish an initial NI 43-101 Technical
Report in the fourth quarter and expect to receive approval of the
permit amendment application to operate at 1,000 mtpd around
year-end.”
During August, processing rates averaged approximately 450 mtpd,
up from approximately 350 mtpd during July and approximately 250
mtpd during June. Processing rates regularly ranged between 500 to
650 mtpd during August and exceeded 800 mtpd late in the month.
During the same time, plant availability improved to 80%, up from
75% in July and 65% in June.
Through July, the Company has invested a total of $51.3 million
in Silvertip ($5.8 million expensed and $45.5 million capitalized),
including $29.8 million of capitalized operating expenses, $8.0
million of capitalized resource infill drilling and $2.1 million of
expensed resource expansion drilling. Near-term priorities for the
Company include the construction of improved camp facilities,
acceleration of underground development activity and the
introduction of long hole stope mining to selected areas. As of
August 31, 2018, Silvertip had 250 employees.
Updated Companywide Production Guidance
In July, the Company increased its full-year production guidance
from 36.0 – 39.4 million silver equivalent ounces (“AgEqOz”)3 to
37.3 - 40.5 million AgEqOz3 due to strong first half performance at
its Palmarejo operation in Mexico.
Based on stronger than expected performance at its Rochester
mine in Nevada and on improved visibility of Silvertip’s production
now that commercial production has been achieved, Coeur is revising
its full-year Companywide production guidance to 36.1 - 39.5
million AgEqOz3.
Overview of 2018 Guidance Update
Original Guidance Silver
Gold Zinc Lead
Silver Equivalent2
(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
Current Guidance
Silver Gold Zinc Lead Silver
Equivalent2 (K oz)
(oz) (K lbs) (K
lbs) (K oz) Palmarejo 7,500 - 7,900
115,000 - 120,000 — — 14,400 - 15,100
Rochester 4,800 -
5,200 48,000 - 52,000 — — 7,680 – 8,320
Kensington — 115,000
- 120,000 — — 6,900 - 7,200
Wharf — 85,000 - 90,000 — —
5,100 - 5,400
Silvertip 700 - 1,200
— 13,000 - 23,000 11,000 -
18,000 2,030 - 3,480
Total
13,000 - 14,300 363,000 - 382,000
13,000 - 23,000 11,000 - 18,000 36,110
- 39,500
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 Wharf gold mine in
South Dakota, and the Kensington gold mine in Alaska. In addition,
the Company has interests in several precious metals exploration
projects throughout North America.
Cautionary Statements
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding development and production at
Silvertip, exploration expenditures, mining volume, timing for
publication of a technical report and production guidance for
Silvertip and Rochester. 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 resource conversion and upgrade are not attained, the
risk that planned drilling programs may be curtailed or canceled
due to budget constraints or other reasons, 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, lead and zinc 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 or 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
www.sedar.com.
Notes
- Through July 31, 2018.
- Based on the mid-point of the AgEqOz
guidance ranges.
- Figures include pre-commercial
concentrate production at Silvertip. Silver and gold equivalence
assumes a 60:1 silver-to-gold ratio. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180904005856/en/
Coeur Mining, Inc.Paul DePartout, Director, Investor
Relations(312) 489-5800www.coeur.com
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