Coeur Reports First Quarter Production Results
CHICAGO, April 7, 2014 (GLOBE NEWSWIRE) -- Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today announced preliminary first quarter production of 4.1 million ounces of silver and 58,836 ounces of gold, or 7.6 million silver equivalent ounces1.
Quarterly Production Results1
A chart accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=24640
"Our first quarter operational performance represents a solid start to the year," stated Mitchell Krebs, Coeur's President and Chief Executive Officer. "In particular, we are pleased with the progress at our Rochester mine, where daily silver production rates have exceeded 13,000 ounces in early April. We anticipate higher silver and gold production levels from Rochester in each successive quarter during the remainder of 2014.
"With our four major mines operating consistently, our cost reduction initiatives gaining momentum, minimal required capital projects, and a bolstered liquidity position, we believe we are well-positioned for a successful year," Mr. Krebs concluded.
1Q 2014 Operational Results1
First quarter operational highlights for each of the Company's mines are provided below.
|Palmarejo, Mexico||1Q 2014||4Q 2013||3Q 2013||2Q 2013||1Q 2013|
|Average silver grade (oz/t)||5.95||6.00||4.73||4.59||4.22|
|Average gold grade (oz/t)||0.11||0.14||0.11||0.11||0.09|
|Average silver grade (oz/t)||3.50||3.49||3.49||4.95||3.45|
|Average gold grade (oz/t)||0.03||0.03||0.03||0.04||0.03|
|Total tons milled||571,345||595,803||583,365||570,322||573,170|
|Average recovery rate – Ag||73.3%||74.5%||81.8%||76.5%||78.8%|
|Average recovery rate – Au||78.0%||80.6%||87.6%||81.2%||90.1%|
|Silver production ounces (000's)||1,820||1,994||1,918||2,045||1,646|
|Gold production ounces||25,216||35,486||29,893||28,191||22,965|
|Silver equivalent production ounces (000's)||3,333||4,123||3,712||3,736||3,024|
- Palmarejo processed approximately 6,350 tons per day during the quarter.
- Although down from the fourth quarter, underground operations are providing a higher proportion of the tons milled, which reflects a focus on transitioning Palmarejo to a higher-grade, higher-margin operation.
- An expanded Merrill Crowe plant is currently being commissioned, which, along with improved processes for blending oxide and sulfide ore, is expected to increase recovery rates during the remainder of the year.
|San Bartolomé, Bolivia||1Q 2014||4Q 2013||3Q 2013||2Q 2013||1Q 2013|
|Average silver grade (oz/t)||3.88||3.79||3.89||3.98||4.09|
|Average recovery rate||90.5%||87.6%||91.5%||90.3%||90.6%|
|Silver production ounces (000's)||1,355||1,498||1,528||1,523||1,391|
- Recovery rates and average silver grades remained consistent with recent quarters.
- San Bartolomé reduced mill throughput for ten days during the quarter to implement tailings facility improvements.
|Rochester, Nevada||1Q 2014||4Q 2013||3Q 2013||2Q 2013||1Q 2013|
|Average silver grade (oz/t)||0.59||0.56||0.53||0.58||0.52|
|Average gold grade (oz/t)||0.003||0.002||0.003||0.003||0.003|
|Silver production ounces (000's)||750||712||580||844||648|
|Gold production ounces||8,192||7,890||4,821||9,404||8,742|
|Silver equivalent production ounces (000's)||1,242||1,185||869||1,408||1,173|
- Rochester achieved higher crushing rates and placed a larger number of tons on the leach pad than in recent quarters. The Company expects this will lead to higher silver and gold production throughout the remainder of the year.
- The daily silver production rate averaged approximately 8,337 ounces during the first quarter, and has exceeded 13,000 ounces in early April.
|Kensington, Alaska||1Q 2014||4Q 2013||3Q 2013||2Q 2013||1Q 2013|
|Average gold grade (oz/t)||0.17||0.26||0.20||0.18||0.20|
|Average recovery rate||94.5%||96.0%||96.5%||98.2%||96.2%|
|Gold production ounces||25,428||37,404||29,049||23,162||25,206|
- In order to maximize cash flow, Kensington's mine plan for 2014 reflects higher mining rates at gold grades more in-line with the average reserve grade of 0.163 ounces per ton.
- Mill throughput averaged nearly 1,800 tons per day during the quarter, which is a significant increase compared to prior quarters.
|Endeavor, Australia||1Q 2014||4Q 2013||3Q 2013||2Q 2013||1Q 2013|
|Silver production ounces (000's)||168||135||162||221||150|
- Silver production received from the Company's investment in the Endeavor lead-zinc-silver mine in Australia increased significantly in the first quarter.
- Coeur owns all silver production and reserves at Endeavor up to a total of 20.0 million payable ounces. As of March 31, 2014, Endeavor had produced 5.0 million payable ounces, or 25% of the total, since Coeur initially acquired this interest in 2005.
|2014 Production Guidance||Silver (000's)||Gold||Silver Equivalent Ounces (000's)|
|Palmarejo, Mexico||6,700 - 7,200||87,000 - 95,000||11,920 - 12,900|
|San Bartolomé, Bolivia||5,700 - 6,000||--||5,700 - 6,000|
|Rochester, Nevada||4,100 - 4,400||28,000 - 31,000||5,780 - 6,260|
|Endeavor, Australia||500 - 600||--||500 - 600|
|Kensington, Alaska||--||105,000 - 112,000||6,300 - 6,720|
|Total||17,000 - 18,200||220,000 - 238,000||30,200 - 32,480|
- The Company is maintaining its 2014 production guidance, which is summarized above.
1. Silver equivalent calculated using a 60:1 silver to gold ratio.
Coeur Mining is the largest U.S.-based primary silver producer and a significant gold producer with four precious metals mines in the Americas employing nearly 2,000 people. 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 the Endeavor mine in Australia in addition to net smelter royalties on the Cerro Bayo mine in Chile, the El Gallo mine in Mexico, and the Zaruma mine in Ecuador. In addition, the Company owns strategic investment positions in several silver and gold development companies with projects in North and South America and has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company conducts ongoing exploration activities in Alaska, Argentina, Bolivia, Mexico, and Nevada.