Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced second quarter 2019 production of 86,584 ounces of gold,
3.1 million ounces of silver, 5.3 million pounds of zinc and 5.0
million pounds of lead. Metal sales for the quarter were 86,385
ounces of gold, 3.0 million ounces of silver, 5.3 million pounds of
zinc and 5.2 million pounds of lead.
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Quarterly Production Results (Graphic:
Business Wire)
As disclosed on May 1, 2019, the Company expects to produce
334,000 - 372,000 ounces of gold, 12.2 - 14.7 million ounces of
silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds
of lead in 2019.
Quarterly Production Results
"Our second quarter operational results were in-line with our
expectations and reflect solid, double-digit production increases
across all four metals we produce," said Mitchell J. Krebs, Coeur’s
President and Chief Executive Officer. "We continue to deliver
quarter-over-quarter improvements at Silvertip, which is a top
initiative for the Company this year. Production increased at
Palmarejo due to higher throughput and recovery rates, while
Kensington continued to benefit from higher grades from the Jualin
deposit. Wharf is expected to benefit from a combination of higher
grades and the placement of additional ore during the second half
to achieve its full-year plan."
"At Rochester, commissioning of the high-pressure grinding roll
("HPGR") unit continues. We expect the new crushing configuration
to begin crushing ore in early August, which is approximately four
weeks later than originally scheduled due to a new secondary
crusher unit that required replacement," continued Mr. Krebs.
"Overall, we remain confident in our ability to achieve our
full-year production guidance at each of our operations."
Operations
Second quarter production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
447,727
378,987
378,389
300,116
344,073
Average gold grade (oz/t)
0.07
0.07
0.08
0.10
0.11
Average silver grade (oz/t)
4.74
4.64
5.96
6.26
6.86
Average recovery rate – Au
87.7%
83.4%
97.6%
88.8%
89.9%
Average recovery rate – Ag
81.8%
72.8%
84.0%
82.2%
87.5%
Ounces Produced
Gold
28,246
23,205
31,239
27,885
33,702
Silver (000's)
1,735
1,278
1,893
1,544
2,066
Ounces Sold
Gold
28,027
27,394
23,667
29,830
31,207
Silver (000's)
1,709
1,405
1,534
1,572
2,092
Average realized price per gold ounce
$1,210
$1,154
$1,148
$1,082
$1,162
Average realized price per silver
ounce
$14.86
$15.39
$14.57
$14.75
$16.49
- Second quarter gold and silver production increased 22% and
36%, respectively, to 28,246 and 1.7 million ounces compared to the
prior quarter. Year-over-year, gold and silver production decreased
approximately 16%
- Higher production during the quarter was primarily driven by an
18% increase in mill throughput as well as improved access to
higher-grade secondary stopes with better recoveries due to the
maintenance and expansion of the cemented rockfill plant, which was
completed in the prior quarter
- Production began at the La Nación deposit, located between the
Independencia and Guadalupe underground mines, shortly after the
end of the second quarter. Production at La Nación is anticipated
to continue ramping up during the third quarter as infrastructure
projects are completed, adding approximately 400 tons per day of
additional mill feed
- Installation of a new thickener remains on budget and on
schedule with commissioning anticipated to begin at the end of
July. The project is expected to increase metallurgical recoveries
for both gold and silver by approximately 2% and has an estimated
one-year payback
- Approximately 22% of gold sales in the second quarter, or 6,190
ounces, were sold under Palmarejo's gold stream agreement at a
price of $800 per ounce
- Full-year 2019 production guidance remains unchanged at 95,000
- 105,000 ounces of gold and 6.5 - 7.2 million ounces of
silver
Rochester, Nevada
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons placed
2,786,287
2,667,559
3,674,566
4,061,082
4,083,028
Average silver grade (oz/t)
0.45
0.46
0.46
0.52
0.53
Average gold grade (oz/t)
0.003
0.003
0.004
0.004
0.004
Ounces Produced
Silver (000's)
971
960
1,466
1,290
1,125
Gold
8,609
8,256
15,926
14,702
12,273
Ounces Sold
Silver (000's)
962
1,000
1,391
1,248
1,097
Gold
8,642
8,511
15,339
14,257
12,030
Average realized price per silver
ounce
$14.83
$15.31
$14.53
$14.70
$16.47
Average realized price per gold ounce
$1,295
$1,299
$1,234
$1,204
$1,297
- Silver production remained relatively flat quarter-over-quarter
at approximately 1.0 million ounces, while gold production
increased 4% to 8,609 ounces. Year-over-year, silver and gold
production decreased 14% and 30%, respectively
- Higher gold production was driven by the timing of leach pad
recoveries as well as improved weather conditions. Tons placed also
increased in the second quarter due to the stacking of additional
run-of-mine material, despite the idling of the X-Pit crusher
during May and June for commissioning of the new crusher
configuration
- Commissioning of the new crusher configuration, including the
HPGR unit, continued through the end of the quarter. A new
secondary crusher unit failed late in the second quarter, and is in
the process of being replaced by an idle tertiary crushing unit
located on-site
- The replacement of the secondary crusher unit is expected to
delay the commissioning of the crushing circuit, including the HPGR
unit, by approximately four weeks. Overall crushing rates, silver
recovery expectations and capital requirements remain in-line with
prior estimates
- The Company is maintaining full-year 2019 production guidance
of 4.2 - 5.0 million ounces of silver and 40,000 - 50,000 ounces of
gold
Kensington, Alaska
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
160,510
164,332
166,310
167,964
168,751
Average gold grade (oz/t)
0.23
0.20
0.23
0.17
0.16
Average recovery rate
93.0%
90.2%
93.0%
91.8%
92.6%
Gold ounces produced
34,049
29,973
35,335
26,809
25,570
Gold ounces sold
34,415
31,335
33,202
25,648
28,165
Average realized price per gold ounce
$1,312
$1,286
$1,246
$1,161
$1,269
- Commercial production at Jualin was declared on December 1,
2018. The figures shown in the table above include pre-commercial
production
- Gold production during the second quarter increased 14% to
34,049 ounces compared to the prior quarter. Year-over-year gold
production increased 33%. Average gold grade was approximately 15%
higher quarter-over-quarter and 44% higher year-over-year driven by
additional ore feed from the high-grade Jualin deposit
- Jualin accounted for approximately 17% of Kensington’s second
quarter production, compared to approximately 10% in the prior
quarter. For the full year, Jualin is expected to account for
approximately 20% of Kensington's total production
- Full-year 2019 production guidance is unchanged at 117,000 -
130,000 ounces of gold
Wharf, South Dakota
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons placed
919,435
1,090,510
1,644,168
1,127,391
1,075,820
Average gold grade (oz/t)
0.023
0.020
0.020
0.023
0.023
Ounces produced
Gold
15,680
16,902
16,960
19,437
22,507
Silver (000's)
12
13
13
13
13
Ounces sold
Gold
15,301
18,086
15,306
19,874
23,053
Silver (000's)
12
14
11
12
14
Average realized price per gold ounce
$1,311
$1,317
$1,247
$1,198
$1,285
- Gold production in the second quarter declined 7%
quarter-over-quarter and 30% year-over-year to 15,680 ounces
- Lower production was largely driven by inclement weather, which
diluted leach pad solutions, as well as lower crusher throughput
during the quarter. The Company has engaged a third party
contractor to crush an additional 300,000 tons of ore primarily
during the third quarter to supplement operating activities
- Production is also anticipated to increase for the remainder of
2019 due to the placement of higher-grade ore late in the second
quarter and is expected to continue during the third and fourth
quarters
- The Company is maintaining full-year 2019 production guidance
of 82,000 - 87,000 ounces of gold
Silvertip, British Columbia
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
59,689
62,051
38,802
28,080
14,450
Average silver grade (oz/t)
7.48
5.50
6.06
7.29
14.15
Average zinc grade (%)
7.5%
5.9%
5.8%
8.0%
8.2%
Average lead grade (%)
5.4%
3.7%
3.9%
4.6%
8.1%
Average recovery rate – Ag
77.0%
69.9%
60.5%
47.0%
42.3%
Average recovery rate – Zn
59.1%
50.5%
69.1%
49.1%
57.9%
Average recovery rate – Pb
77.3%
66.8%
54.7%
44.4%
40.5%
Produced
Silver (000's ounces)
344
239
142
96
87
Zinc (000's lbs)
5,322
3,719
3,083
2,207
1,372
Lead (000's lbs)
4,980
3,077
1,658
1,159
949
Sold
Silver (000's ounces)
365
215
127
131
10
Zinc (000's lbs)
5,303
4,723
2,552
1,772
469
Lead (000's lbs)
5,186
2,748
1,444
1,645
—
Average realized price per silver ounce,
gross
$15.18
$14.98
$15.54
$14.62
$16.31
Treatment and refining charges per silver
ounce
$1.18
$1.24
$1.38
$3.34
$3.30
Average realized price per silver ounce,
net
$14.00
$13.74
$14.16
$11.28
$13.01
Average realized price per zinc pound,
gross
$0.83
$1.50
$1.07
$1.20
$1.35
Treatment and refining charges per zinc
pound
$0.34
$0.31
$0.24
$0.27
$0.27
Average realized price per zinc pound,
net
$0.49
$1.19
$0.83
$0.93
$1.08
Average realized price per lead pound,
gross
$0.87
$0.92
$0.87
$0.97
$—
Treatment and refining charges per lead
pound
$0.05
$0.06
$0.07
$0.07
$—
Average realized price per lead pound,
net
$0.82
$0.86
$0.80
$0.90
$—
- Silvertip achieved commercial production on September 1, 2018.
The figures shown in the above table include pre-commercial
production
- Second quarter silver, zinc and lead production increased 44%,
43% and 62%, respectively, compared to the prior quarter, to 0.3
million ounces of silver, 5.3 million pounds of zinc and 5.0
million pounds of lead
- Despite a 4% quarter-over-quarter decrease in mill throughput,
increased production was driven by significantly higher feed grades
and recovery rates across all metals
- The Company continues to execute key projects targeting mill
availability, which are expected to drive further operational
improvements throughout the remainder of the year. Recovery rates
continue to trend upward, with recoveries averaging approximately
81%, 63% and 82% for silver, zinc and lead, respectively, during
June
- The permit amendment application to operate at a year-round
mining and milling rate of 1,100 tons (1,000 metric tonnes) per day
is expected to be received during the third quarter, which is later
than originally expected, but does not have an impact on planned
operations
- Full-year 2019 production guidance is unchanged at 1.5 - 2.5
million ounces of silver, 25 - 40 million pounds of zinc and 20 -
35 million pounds of lead
2019 Production Guidance
Coeur's 2019 production guidance remains unchanged from its
guidance published on May 1, 2019.
Gold
Silver
Zinc
Lead
(oz)
(K oz)
(K lbs)
(K lbs)
Palmarejo
95,000 - 105,000
6,500 - 7,200
—
—
Rochester
40,000 - 50,000
4,200 - 5,000
—
—
Kensington
117,000 - 130,000
—
—
—
Wharf
82,000 - 87,000
—
—
—
Silvertip
—
1,500 - 2,500
25,000 - 40,000
20,000 - 35,000
Total
334,000 - 372,000
12,200 - 14,700
25,000 - 40,000
20,000 - 35,000
Financial Results and Conference Call
Coeur will report its second quarter financial results on August
7, 2019 after the New York Stock Exchange closes for trading. There
will be a conference call on August 8, 2019 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 Thomas S. Whelan,
Senior Vice President and Chief Financial Officer, Terry F. D.
Smith, Senior Vice President of Operations, Hans J. Rasmussen,
Senior Vice President of Exploration, and other members of
management. A replay of the call will be available through August
22, 2019.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
101 32 149
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 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, results,
recoveries, mining rates, throughput, operations at Palmarejo,
Rochester, Kensington, Wharf and Silvertip, timing of obtaining
permit amendment approval for Silvertip and commissioning of the
new crushing circuit at 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 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
mineral reserves, changes that could result from Coeur's future
acquisition of new mining properties or businesses, the loss or
insolvency of any third-party smelter or refiner with whom Coeur
does business, 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.
Average Spot Prices
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Average Silver Spot Price Per Ounce
$
14.88
$
15.57
$
14.54
$
15.02
$
16.53
Average Gold Spot Price Per Ounce
$
1,309
$
1,304
$
1,226
$
1,213
$
1,306
Average Zinc Spot Price Per Pound
$
1.25
$
1.23
$
1.19
$
1.15
$
1.41
Average Lead Spot Price Per Pound
$
0.85
$
0.92
$
0.89
$
0.95
$
1.08
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190711005736/en/
Coeur Mining, Inc. 104 S. Michigan Avenue, Suite 900 Chicago, IL
60603 Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800 www.coeur.com
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