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Coeur Reports Steady First Quarter Production and Reaffirms Full-Year Production Guidance April 2013

Production levels expected to accelerate during remaining three quarters of 2013

Growing contribution from gold relative to silver as gold production rises at U.S. operations

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Apr. 15, 2013-- Coeur d'Alene Mines Corporation (the "Company" or "Coeur") (NYSE: CDE, TSX: CDM) announced it produced 3.8 million ounces of silver and 56,913 ounces of gold during the first quarter of 2013. The Company also reaffirmed its full year production guidance of 18.0-19.5 million ounces of silver and 250,000-265,000 ounces of gold in 2013. Coeur will report its full operating and financial results on May 9, 2013.

First Quarter Operating Highlights

  • Companywide silver production of 3.8 million ounces was 22% lower than the first quarter 2012 due to lower grade ore processed from both open pit and underground operations at the Company's Palmarejo mine.
  • Companywide gold production of 56,913 ounces was 30% higher than the first quarter 2012 due to significantly higher production from the Company's Kensington and Rochester mines.
  • Metal sales were $178.6 million, down 13% compared with the first quarter 2012.
  • Average realized silver and gold prices were $30.61 per ounce and $1,630 per ounce, respectively, representing decreases of 6% and 4%, respectively, compared with the first quarter of 2012.
  • Grades and mining rates rebounded at Palmarejo late in the first quarter compared to the third and fourth quarters of 2012. Palmarejo produced 1.6 million ounces of silver and 22,965 ounces of gold in the first quarter 2013. While lower than first quarter 2012 levels, silver and gold production was 6% and 15% higher, respectively, compared to the fourth quarter 2012. Production rates are expected to climb in the second half of 2013.
  • San Bartolomé produced 1.4 million ounces of silver, which was 12% lower than the first quarter of 2012 due to lower silver grades, but the mine performed better than planned and this level should reflect anticipated production rates during the remainder of the year.
  • Rochester's production was temporarily affected by extremely cold temperatures and heavier than normal snowfall during January and February, which impacted ore crushing. Rochester produced 0.6 million ounces of silver and 8,742 ounces of gold, which was lower than production in the fourth quarter 2012, but 47% and 65% higher than the first quarter 2012, respectively.
  • Kensington's gold production more than tripled compared to the first quarter of 2012, reaching 25,206 ounces. Kensington's production is expected to increase in the second half of 2013 over the first half of 2013 due to anticipated improved grades and higher throughput rates.
 

Table 1: Operational Highlights: Production

 
(silver ounces in thousands)   1Q 2013   1Q 2012  

Quarter
Variance

    Silver   Gold   Silver   Gold   Silver   Gold
Palmarejo   1,646   22,965   2,483   31,081   (34 %)   (26 %)
San Bartolomé   1,391   --   1,591   --   (13 %)   n.a.
Rochester   648   8,742   441   5,292   47 %   65 %
Martha(1)   --   --   123   84   n.a.   n.a.
Kensington   --   25,206   --   7,444   n.a.   239 %
Endeavor   150   --   248   --   (40 %)   n.a.
Total   3,835   56,913   4,886   43,901   (22 %)   30 %
 

1. The Martha mine in Argentina ceased production at the end of the third quarter 2012.

2013 Outlook

In addition to its unchanged 2013 production outlook provided in Table 2 below, Coeur reiterated its full-year 2013 projected cash operating costs1 of $8.00 - $9.00 per silver ounce, assuming a gold by-product price of $1,650 per ounce. Kensington's cash operating costs1 are estimated at $900 - $950 per gold ounce for 2013.

 

Table 2: 2013 Production Outlook

 
(silver ounces in thousands)   Country   Silver   Gold
Palmarejo   Mexico   7,700-8,300   98,000-105,000
San Bartolomé   Bolivia   5,300-5,700   --
Rochester   Nevada, USA   4,500-4,900   44,000-46,000
Endeavor   Australia   500-600   --
Kensington   Alaska, USA   --   108,000-114,000
Total       18,000-19,500   250,000-265,000
 

About Coeur

Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow in continued robust metals markets. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also has a non-operating interest in a mine in Australia. The Company also conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia. In addition, the Company owns strategic investment positions in eight silver and gold development companies with projects in North and South America.

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