Coeur Provides Positive Update on Its Three New MinesCOEUR D'ALENE, Idaho, Apr 07, 2010 (BUSINESS WIRE) --Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today reported continuing operating improvements during the first quarter at its San Bartolomé and Palmarejo operations. In addition, the Company announced plans to commence mining operations in July at its Kensington gold mine in Alaska. Additional operational and financial details will be provided in the Company's first quarter earnings release and conference call in early May.
- Record monthly production in March of 546,738 silver ounces and 9,225 gold ounces.
- First quarter silver production was up 25% from the previous quarter to 1.5 million ounces while first quarter gold production increased 23% to 25,511 ounces.
- First quarter cash operating costs dropped 57% compared to the fourth quarter to $2.62 per silver ounce.
- Silver recoveries improved to 73.3% in March and exceeded 80% late in the month, up from 66.3% for all of 2009.
- 2010 expected production remains on track to reach 7.9 million ounces of silver and 109,000 ounces of gold at cash operating costs of under $2.50 per silver ounce.
- Coeur announced on March 11th that it had begun mining in the higher-grade Huacajchi deposit above the 4,400 meter level. This resulted in significantly improved production and cost performance in March, which is expected to continue during the remainder of 2010.
- March production was up 46% over February to 451,746 silver ounces, which is the highest monthly production since October 2009.
- March cash operating costs declined 16% compared to the previous month to $8.26 per silver ounce. First quarter cash operating costs were $9.05 per ounce, which were 13% lower than the fourth quarter of 2009.
- 2010 expected production of 7.0 million ounces of silver at cash operating costs of $8.50 per ounce.
- Initial production is expected to commence in July with partial first year production of approximately 50,000 gold ounces.
- Mild winter weather has allowed construction activities to remain on-schedule and on-budget.
- 85% of the tailings line from the mill to the tailings facility is now installed.
- Blasting activities will take place along the Kensington vein this month.
- 120 bed man camp complete and fully occupied.
Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer. Coeur is also a recognized leader in environmental stewardship and worker safety, with nine national and international awards earned over the past year. The Company's three new long-life mines include the San Bartolomé silver mine in Bolivia which began operations in 2008, the Palmarejo silver/gold mine in Mexico, which began operations in 2009, and the Kensington gold mine in Alaska, which begins operations in the third quarter 2010. The Company also owns underground mines in southern Chile and Argentina and one surface mine in Nevada, and owns a non-operating interest in a low-cost mine in Australia. The Company conducts exploration activities in Alaska, Argentina, Chile and Mexico. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, the Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary Interests are traded on the Australian Securities Exchange under symbol CXC.
Photos of operations and projects and other information can be accessed through the Company's website at www.coeur.com.
This press release contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the control of Coeur. Operating, exploration and financial data, and other statements in this presentation are based on information that Coeur believes is reasonable, but involve significant uncertainties affecting the business of Coeur, including, but not limited to, future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, construction schedules, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from future acquisitions of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries, as well as other uncertainties and risk factors set out in filings made from time to time with the SEC, the Canadian securities regulators, and the Australian Securities Exchange, including, without limitation, Coeur's 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 fourth parties in respect of Coeur, its financial or operating results or its securities.
We supplement the reporting of our financial information determined under generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, including cash operating costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses.
"Operating Costs per Ounce" and "Cash Costs per Ounce" are calculated by dividing the operating cash costs and cash costs computed for each of the Company's mining properties for a specified period by the amount of gold ounces or silver ounces produced by that property during that same period. Management uses cash operating costs and cash costs per ounce as key indicators of the profitability of each of its mining properties. Gold and silver are sold and priced in the world financial markets on a U.S. dollar per ounce basis.
"Cash Operating Costs" and "Cash Costs" are costs directly related to the physical activities of producing silver and gold, and include mining, processing and other plant costs, third-party refining and smelting costs, marketing expense, on-site general and administrative costs, royalties, in-mine drilling expenditures that are related to production and other direct costs. Sales of by-product metals are deducted from the above in computing cash costs. Cash costs exclude depreciation, depletion and amortization, accretion, corporate general and administrative expense, exploration, interest, and pre-feasibility costs. Cash operating costs include all cash costs except production taxes and royalties, if applicable. Cash costs are calculated and presented using the "Gold Institute Production Cost Standard".
SOURCE: Coeur d'Alene Mines Corporation
Posted: April 7, 2010
More Latest News »