Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today
announced first quarter production of 3.4 million ounces of silver
and 78,072 ounces of gold, or 8.1 million silver equivalent1
ounces.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20160407005624/en/
Quarterly Production Results (Graphic:
Business Wire)
First Quarter 2016 Operational
Results
First quarter operational highlights for each of Coeur's
operations are provided below.
Palmarejo, Mexico
1Q 2016 4Q 2015 3Q 2015
2Q 2015 1Q 2015 Underground Operations:
Tons mined
215,642 189,383 190,399 172,730 149,150 Average
silver grade (oz/t)
4.21 3.96 4.11 3.90 4.34 Average gold
grade (oz/t)
0.07 0.06 0.10 0.09 0.07 Surface Operations:
Tons mined
35,211 102,018 247,071 257,862 281,481 Average
silver grade (oz/t)
4.18 3.86 3.56 3.47 3.79 Average gold
grade (oz/t)
0.04 0.03 0.03 0.03 0.04 Processing: Total tons
milled
246,533 301,274 427,635 435,841 451,918 Average
recovery rate – Ag
89.1% 95.4% 87.9% 78.5% 78.7% Average
recovery rate – Au
92.1% 88.8% 84.7% 76.2% 73.9% Silver
production ounces (000's)
933 1,126 1,422 1,247 1,354 Gold
production ounces
14,668 14,326 22,974 18,127 15,495
Silver-equivalent1 production ounces
(000's)
1,813 1,985 2,800 2,335 2,284
- Production in-line with expectations as
transition to lower-tonnage, higher-grade, higher-margin
underground operations from two ore sources - Guadalupe and
Independencia - remains on-track
- Averaged mining rate at Guadalupe of
over 1,850 tons per day in the first quarter
- Achieved initial production from
Independencia ore body in early January
- Higher recovery rates continue as a
result of several process enhancements implemented in 2015 and as a
larger proportion of ore is coming from underground operations
- Mining of the open-pit and old
underground continues at lower rates and is expected to cease by
mid-2016
- Maintaining full-year 2016 production
guidance of 3.8 - 4.3 million silver ounces and 67,000 - 72,000
gold ounces
Rochester, Nevada
1Q 2016 4Q 2015 3Q 2015
2Q 2015 1Q 2015 Tons placed
4,374,459 4,411,590 4,128,868 3,859,965 4,013,879 Average
silver grade (oz/t)
0.64 0.60 0.59 0.61 0.74 Average gold
grade (oz/t)
0.004 0.003 0.003 0.003 0.004 Silver production
ounces (000's)
929 1,107 1,086 1,294 1,144 Gold production
ounces
10,460 11,564 10,892 16,411 13,721
Silver equivalent1 production ounces
(000's)
1,557 1,800 1,740 2,279 1,967
- Lower silver equivalent production due
to poor weather conditions and timing of recoveries from the Stage
III leach pad
- Production levels increased in March
and are expected to continue to climb throughout the year
- Maintaining full-year 2016 production
guidance of 4.7 - 5.2 million silver ounce and 48,000 - 55,000 gold
ounces
Kensington, Alaska
1Q 2016 4Q 2015 3Q 2015
2Q 2015 1Q 2015 Tons milled
159,360 159,666 165,198 170,649 164,951 Average gold grade
(oz/t)
0.21 0.22 0.19 0.18 0.24 Average recovery rate
95.8% 96.0% 93.9% 94.9% 94.8% Gold production ounces
31,974 33,713 28,799 29,845 33,909
- Consistent production levels achieved
during first quarter
- Development of the decline into the
high-grade Jualin deposit is progressing and is over one-third
complete
- Maintaining full-year 2016 production
guidance of 115,000 - 125,000 gold ounces
Wharf, South
Dakota 1Q 2016 4Q 2015 3Q
2015 2Q 2015 1Q 2015 Tons placed
974,663 1,147,130 1,149,744 887,409 415,996 Average gold
grade (oz/t)
0.031 0.032 0.035 0.025 0.020 Average plant
recovery rate - Au
96.6% 97.3% 92.8% 76.7% 85.9% Gold
production ounces
20,970 31,947 23,104 16,472 6,609 Silver
production ounces (000's)
13 18 19 19 —
Gold equivalent1 production ounces
21,186 32,231 23,427 16,794 6,609
- Lower production compared to prior
quarter as expected due to timing of recovery from the current
leach pad. Higher production expected during remainder of 2016
- Maintaining full-year 2016 production
guidance of 90,000 - 95,000 gold ounces, which is expected to be
approximately 20% higher than 2015 production
San Bartolomé,
Bolivia 1Q 2016 4Q 2015
3Q 2015 2Q 2015 1Q 2015 Tons
milled
407,806 475,695 373,201 457,232 406,951 Average
silver grade (oz/t)
3.64 3.84 3.76 3.73 3.65 Average
recovery rate
93.1% 84.9% 84.0% 87.6% 81.6% Silver
production ounces (000's)
1,382 1,550 1,178 1,495 1,213
- Production was lower compared to the
fourth quarter due to mill maintenance early in the first
quarter
- Approximately one-third of production
was derived from higher-grade third-party ore purchases
- Recently installed an oxygen injection
system in the agitation leach circuit to improve recovery
rates
- Maintaining full-year 2016 production
guidance of 5.7 - 6.0 million silver ounces, which is expected to
be 5-10% higher than 2015 production
Coeur Capital, Inc.
Endeavor,
Australia 1Q 2016 4Q 2015
3Q 2015 2Q 2015 1Q 2015 Silver
production ounces (000's)
115 171 121 204 133
- Silver production received from the
Company's silver stream on the Endeavor mine in Australia declined
following a decision by the operator to significantly cut
production due to lower lead and zinc prices. As a result, Coeur is
revising 2016 production guidance for Endeavor to 175,000 - 200,000
silver ounces from 350,000 - 400,000 silver ounces
- On March 31, 2016 Coeur sold its 2.0%
net smelter returns "NSR" royalty on the Cerro Bayo mine to the
operator, Mandalay Resources Corporation, for total consideration
of approximately $5.7 million, consisting of $4.0 million in cash
and 2.5 million Mandalay shares
- Entered into a definitive agreement to
sell 2.5% NSR royalty on the La Cigarra project to Kootenay Silver
Inc. for total consideration of approximately $2.5 million,
consisting of $500,000 in cash and 9.6 million Kootenay shares. The
transaction is expected to close in April
2016 Production Outlook
Coeur's 2016 silver and gold production guidance is shown below.
Guidance has been updated to reflect lower production outlook from
the Endeavor silver stream. Production guidance for mines operated
by Coeur remains unchanged.
(silver and silver equivalent ounces in thousands)
Silver Gold
Silver Equivalent1 Palmarejo
3,800 - 4,300 67,000 - 72,000 7,820 -
8,620
San Bartolomé 5,700 - 6,000 — 5,700 - 6,000
Rochester 4,700 - 5,200 48,000 - 55,000 7,580 - 8,500
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
14,455 - 15,800 320,000 - 347,000
33,655 - 36,620
1. Silver and gold equivalence calculated using a 60:1 silver to
gold ratio.
Financial Results and Conference
Call
Coeur will report its full operational and financial results for
first quarter 2016 on April 27, 2016 after the New York Stock
Exchange closes for trading. There will be a conference call on
April 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 May 13, 2016.
Replay numbers: (877) 344-7529 (US) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID: 100 83 340
About Coeur
Coeur Mining is the largest U.S.-based primary silver producer
and a significant gold 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 mine 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 in
addition to royalties on the El Gallo complex in Mexico, the Zaruma
mine in Ecuador, and the Correnso mine in New Zealand. In addition,
the Company has two silver-gold exploration projects - the La
Preciosa project in Mexico and the Joaquin project in Argentina.
The Company also conducts ongoing exploration activities in Alaska,
Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic
investment positions in several silver and gold development
companies with projects in North and South 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, operations
at the Palmarejo complex, production levels at Rochester,
exploration and development efforts at Kensington and potential
asset sales. 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160407005624/en/
Coeur Mining, Inc.Rebecca Hussey, Manager, Investor
Relations(312) 489-5827www.coeur.com
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