Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today
announced third quarter 2019 production of 99,782 ounces of gold,
3.0 million ounces of silver, 4.2 million pounds of zinc and 4.5
million pounds of lead. Metal sales for the quarter totaled 100,407
ounces of gold, 3.0 million ounces of silver, 4.1 million pounds of
zinc and 4.3 million pounds of lead.
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Quarterly Production Results (Graphic:
Business Wire)
The Company is reaffirming full-year 2019 production guidance of
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.
Quarterly Production Results
"As anticipated, our third quarter operational results reflected
the beginning of a strong second half that is expected to continue
throughout the remainder of the year," said Mitchell J. Krebs,
Coeur's President and Chief Executive Officer. "Wharf bounced back
from a slow first half to deliver a strong quarter, while Palmarejo
and Kensington generated solid operational results to help drive a
15% quarter-over-quarter increase in Companywide gold production.
At Rochester, we are beginning to see initial results from the
newly-installed high-pressure grinding roll ("HPGR") unit that are
consistent with third-party test work and our internal
expectations."
"At Silvertip, quarterly production rates declined as we took
advantage of favorable weather to extend planned downtime to
complete several key surface projects. Additionally, we bolstered
the internal and external resources at site to address remaining
mill projects that will allow for a higher and more sustained level
of mill availability," continued Mr. Krebs. "Overall, we expect to
achieve production guidance at each of our operations with the
Companywide goal of returning to positive free cash flow in
2019."
Operations
Third quarter production and sales highlights for each of
Coeur's operations are provided below.
Palmarejo, Mexico
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons milled
442,464
447,727
378,987
378,389
300,116
Average gold grade (oz/t)
0.09
0.07
0.07
0.08
0.10
Average silver grade (oz/t)
4.88
4.74
4.64
5.96
6.26
Average recovery rate – Au
81.7%
87.7%
83.4%
97.6%
88.8%
Average recovery rate – Ag
79.6%
81.8%
72.8%
84.0%
82.2%
Ounces Produced
Gold
31,779
28,246
23,205
31,239
27,885
Silver (000's)
1,720
1,735
1,278
1,893
1,544
Ounces Sold
Gold
32,731
28,027
27,394
23,667
29,830
Silver (000's)
1,747
1,709
1,405
1,534
1,572
Average realized price per gold ounce
$1,269
$1,210
$1,154
$1,148
$1,082
Average realized price per silver
ounce
$17.05
$14.86
$15.39
$14.57
$14.75
- Third quarter gold production increased 13% to 31,779 ounces,
while silver production remained consistent at approximately 1.7
million ounces compared to the prior quarter. Year-over-year, gold
and silver production increased by approximately 14% and 11%,
respectively
- Higher gold production during the quarter was primarily driven
by the improvement in average grade, partially offset by lower
recoveries. Consistent quarter-over-quarter silver production
reflected higher grade offset by slightly lower recoveries and mill
throughput. Lower recoveries during the quarter reflect additional
in-circuit inventory and adjustments on final settlements of doré
sales
- Production began at La Nación, located within the Independencia
mine complex, in the beginning of the third quarter. La Nación is
anticipated to continue ramping up through the end of 2019 as
infrastructure projects are completed, adding approximately 400
tons per day of additional mill feed
- Commissioning of a new thickener was completed on-budget and
on-schedule in the third quarter. The project is expected to
increase metallurgical recoveries for both gold and silver by
approximately 2% and has an estimated one-year payback
- Approximately 33% of gold sales in the third quarter, or 10,785
ounces, were sold under Palmarejo's gold stream agreement at a
price of $800 per ounce. Full-year gold sales under the stream
agreement are expected to remain around similar levels
- 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
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons placed
2,516,353
2,786,287
2,667,559
3,674,566
4,061,082
Average silver grade (oz/t)
0.43
0.45
0.46
0.46
0.52
Average gold grade (oz/t)
0.004
0.003
0.003
0.004
0.004
Ounces Produced
Silver (000's)
982
971
960
1,466
1,290
Gold
7,901
8,609
8,256
15,926
14,702
Ounces Sold
Silver (000's)
951
962
1,000
1,391
1,248
Gold
7,651
8,642
8,511
15,339
14,257
Average realized price per silver
ounce
$17.02
$14.83
$15.31
$14.53
$14.70
Average realized price per gold ounce
$1,476
$1,295
$1,299
$1,234
$1,204
- Tons placed in the third quarter decreased 10%
quarter-over-quarter and 38% year-over-year to approximately 2.5
million tons. Fewer tons placed reflects the commissioning of the
new three-stage crushing circuit during the quarter
- Silver production remained consistent quarter-over-quarter at
approximately 1.0 million ounces, while gold production decreased
8% to 7,901 ounces. Year-over-year, silver and gold production
decreased 24% and 46%, respectively
- Silver production was impacted by slightly lower average grade,
while gold production decreased largely due to fewer tons placed.
Side slope leaching on the Stage III and Stage IV leach pads as
well as the stacking of run-of-mine material early in the quarter
were used to supplement production
- Initial recovery results from bottle roll and column tests on
HPGR-crushed ore observed during the quarter were encouraging and
in-line with original expectations. The Company plans to continue
monitoring and benchmarking results against third-party test work
to further validate recovery rates associated with the HPGR
unit
- Production in the fourth quarter is anticipated to benefit from
the stacking of additional tons, reflecting a full quarter
integrating the new crushing circuit. The Company began stacking
HPGR-crushed material close to the liner of the Stage IV leach pad
in September, with breakthrough expected later this month.
Additional run-of-mine material may be used opportunistically to
supplement production through the remainder of 2019
- Coeur 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
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons milled
166,475
160,510
164,332
166,310
167,964
Average gold grade (oz/t)
0.22
0.23
0.20
0.23
0.17
Average recovery rate
93.2%
93.0%
90.2%
93.0%
91.8%
Gold ounces produced
34,156
34,049
29,973
35,335
26,809
Gold ounces sold
35,452
34,415
31,335
33,202
25,648
Average realized price per gold ounce
$1,485
$1,312
$1,286
$1,246
$1,161
- Commercial production at Jualin was declared on December 1,
2018. The figures shown in the table above include pre-commercial
production
- Continued strong gold production during the third quarter
totaled 34,156 ounces, consistent with the prior period.
Year-over-year gold production increased 27%
- Jualin accounted for approximately 15% of Kensington’s third
quarter production, compared to approximately 17% in the prior
quarter. Jualin is now anticipated to account for approximately 15%
of Kensington's total production in 2019, largely due to an
expected increase in production from the Kensington Main
deposit
- During the quarter, 9,784 ounces were sold under Kensington's
$25.0 million prepayment agreement. Coeur anticipates a working
capital outflow of approximately $15.0 million associated with
these sales in the third quarter and expects the remaining $10.0
million working capital outflow during the fourth quarter
- Full-year 2019 production guidance is unchanged at 117,000 -
130,000 ounces of gold
Wharf, South Dakota
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons placed
1,503,021
919,435
1,090,510
1,644,168
1,127,391
Average gold grade (oz/t)
0.027
0.023
0.020
0.020
0.023
Ounces produced
Gold
25,946
15,680
16,902
16,960
19,437
Silver (000's)
18
12
13
13
13
Ounces sold
Gold
24,573
15,301
18,086
15,306
19,874
Silver (000's)
17
12
14
11
12
Average realized price per gold ounce
$1,481
$1,311
$1,317
$1,247
$1,198
- Gold production in the third quarter increased 65%
quarter-over-quarter and 33% year-over-year to 25,946 ounces
- Higher production during the quarter was largely driven by the
placement of additional tons and improved grade. Tons placed
increased 63% quarter-over-quarter to 1.5 million, while average
gold grade increased 17% to 0.027 ounces per ton
- Operational results reflect better crusher performance and
improved weather conditions. Strong crusher performance and the
placement of higher-grade ore are expected to drive solid
production results in the fourth quarter
- The Company is maintaining full-year 2019 production guidance
of 82,000 - 87,000 ounces of gold
Silvertip, British Columbia
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons milled
53,145
59,689
62,051
38,802
28,080
Average silver grade (oz/t)
7.54
7.48
5.50
6.06
7.29
Average zinc grade (%)
7.6%
7.5%
5.9%
5.8%
8.0%
Average lead grade (%)
5.4%
5.4%
3.7%
3.9%
4.6%
Average recovery rate – Ag
74.8%
77.0%
69.9%
60.5%
47.0%
Average recovery rate – Zn
51.7%
59.1%
50.5%
69.1%
49.1%
Average recovery rate – Pb
78.4%
77.3%
66.8%
54.7%
44.4%
Produced
Silver (000's ounces)
300
344
239
142
96
Zinc (000's lbs)
4,197
5,322
3,719
3,083
2,207
Lead (000's lbs)
4,478
4,980
3,077
1,658
1,159
Sold
Silver (000's ounces)
290
365
215
127
131
Zinc (000's lbs)
4,076
5,303
4,723
2,552
1,772
Lead (000's lbs)
4,331
5,186
2,748
1,444
1,645
Average realized price per silver ounce,
gross
$19.94
$15.18
$14.98
$15.54
$14.62
Treatment and refining charges per silver
ounce
$1.63
$1.18
$1.24
$1.38
$3.34
Average realized price per silver ounce,
net
$18.31
$14.00
$13.74
$14.16
$11.28
Average realized price per zinc pound,
gross
$0.82
$0.83
$1.50
$1.07
$1.20
Treatment and refining charges per zinc
pound
$0.35
$0.34
$0.31
$0.24
$0.27
Average realized price per zinc pound,
net
$0.47
$0.49
$1.19
$0.83
$0.93
Average realized price per lead pound,
gross
$1.02
$0.87
$0.92
$0.87
$0.97
Treatment and refining charges per lead
pound
$0.07
$0.05
$0.06
$0.07
$0.07
Average realized price per lead pound,
net
$0.95
$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
- Third quarter silver production decreased 13% to 0.3 million
ounces quarter-over-quarter, while zinc and lead production
decreased 21% and 10%, respectively, to 4.2 million pounds of zinc
and 4.5 million pounds of lead. Lower production was largely driven
by planned and unplanned downtime, which impacted mill availability
during the quarter
- Planned downtime was extended to take advantage of favorable
weather conditions to address key projects to improve mill
availability. Additional third-party maintenance resources were
added during the quarter to accelerate mill stabilization
efforts
- The Company also deployed a coordinated human resources
strategy to further enhance the operation's leadership team,
improve recruitment and retention efforts, and bolster training of
mill operators. These efforts, combined with the accelerated mill
maintenance plan, have resulted in significant improvements in mill
availability late in the third quarter and month-to-date
- 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 in the final stages of the approval process and expected to be
received in the fourth quarter
- 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 August 7, 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
November 4, 2019 after the New York Stock Exchange closes for
trading. There will be a conference call on November 5, 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 November
19, 2019.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088
(International)
Conference ID:
101 35 184
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, cash flow,
recoveries, mining rates, throughput, operations at Palmarejo,
Rochester, Kensington, Wharf and Silvertip, including timing of
obtaining permit amendment approval for Silvertip and the impact of
the new thickener at Palmarejo, the new crushing circuit at
Rochester and Jualin production at Kensington. 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
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Average Gold Spot Price Per Ounce
$
1,472
$
1,309
$
1,304
$
1,226
$
1,213
Average Silver Spot Price Per Ounce
$
16.98
$
14.88
$
15.57
$
14.54
$
15.02
Average Zinc Spot Price Per Pound
$
1.07
$
1.25
$
1.23
$
1.19
$
1.15
Average Lead Spot Price Per Pound
$
0.92
$
0.85
$
0.92
$
0.89
$
0.95
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191010005837/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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