Coeur Provides Update on Palmarejo Complex, COVID-19 Preparedness and Full-Year 2020 Guidance
April 07 2020 - 6:45AM
Business Wire
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
announced that it has begun taking steps toward the temporary
suspension of active mining and processing activities at its
Palmarejo gold-silver complex (“Palmarejo”) in the State of
Chihuahua, Mexico in accordance with a government-mandated decree
in response to the 2019 novel coronavirus (“COVID-19”).
The decree, issued by the Federal government of Mexico,
restricts all non-essential business activities through April 30,
2020. The Mexican government provided additional guidance on the
decree on April 6, 2020, clarifying that mining does not qualify as
an essential business activity.
Since the original decree was issued, Coeur has been working
with federal, state and local governments, surrounding communities,
industry peers and the Mexican Mining Chamber (CAMIMEX) as well as
its employees and contractors to understand and comply with the
decree. The Company is currently in the process of safely and
securely ramping down its mining operations at Palmarejo. A reduced
workforce will remain onsite during the suspension to maintain key
infrastructure, manage environmental compliance and provide
requisite security. Coeur expects that operations will be able to
expeditiously ramp back up once the decree has been lifted.
All of the Company’s other active mines continue to operate at
full capacity and there have been no confirmed cases of COVID-19
across Coeur’s portfolio. Precious metals mining is considered
essential to support critical infrastructure under guidelines of
the Department of Homeland Security and every state where Coeur
operates in the U.S. (Nevada, Alaska and South Dakota), providing
the minerals needed to support a wide range of critical products
including certain devices and technologies used in the medical
industry, among other uses.
Each of the Company’s operations has developed site-specific
screening, education and modifications to work procedures to limit
COVID-19 exposure and transmission. Operational readiness is being
routinely assessed as the situation continues to evolve and each
site has scenario plans in place, should the need arise. Coeur is
following guidance from the U.S. Centers for Disease Control and
Prevention, World Health Organization as well as state and local
authorities to safeguard the health, safety and well-being of its
employees, contractors and communities, and minimize business
interruption.
Key initiatives that the Company has undertaken include:
- Travel and site access restricted to business-critical needs;
discretionary travel strongly discouraged
- Health and travel questionnaires as well as temperature checks
required prior to entering sites
- Increased cleaning and disinfecting of common areas
- Social distancing, including limiting meetings to ten people
(or less)
- Extended rotational schedules at certain operations to reduce
travel to and from site
- All site-level employees who can and all corporate headquarter
employees working remotely
- Partnering with communities in communication and local
responses
Coeur has also evaluated its supply chain and metal sales risks
at each operation and remains in close contact with critical
vendors, customers and transportation providers, establishing
back-up arrangements to mitigate the impact of any disruptions
related to COVID-19. The Company has not experienced any material
disruptions to date.
Guidance Update
In light of the temporary suspension at Palmarejo and ongoing
uncertainty regarding COVID-19, Coeur has decided to withdraw its
full-year 2020 guidance. The Company will continue targeting safe
execution of its operating plans and reevaluate instituting
full-year 2020 guidance as the year progresses.
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with five wholly-owned operations: the
Palmarejo gold-silver 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 Silvertip silver-zinc-lead mine in
British Columbia. 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 the temporary suspension of mining
activities at Palmarejo, activities at the Company’s other
operations and COVID-19 response planning. 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 of sustained business interruption due to COVID-19 and ability
to expeditiously ramp up the Palmarejo mine once governmental
restrictions are lifted, 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 (including the impact of
government shutdowns), ground conditions, grade variability, any
future labor disputes or work stoppages, the uncertainties inherent
in the estimation of mineral 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200407005320/en/
For Additional Information Coeur Mining, Inc. 104 S.
Michigan Avenue, Suite 900 Chicago, Illinois 60603 Attention: Paul
DePartout, Director, Investor Relations Phone: (312) 489-5800
www.coeur.com
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