Coeur Reports Strong Second Quarter Production Results and Reaffirms Full-Year Production Guidance
Palmarejo's silver and gold production rose 24% and 23%, respectively, versus prior quarter
CHICAGO--(BUSINESS WIRE)--Jul. 16, 2013-- Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) (TSX: CDM) announced it produced 4.6 million ounces of silver and 60,757 ounces of gold during the second quarter of 2013. These production levels represent increases of 21% for silver and 7% for gold compared to the first quarter. Palmarejo's silver and gold production increased 24% and 23%, respectively, over the first quarter of 2013.
The Company also reaffirmed its full-year 2013 consolidated production guidance of 18.0-19.5 million ounces of silver and 250,000-265,000 ounces of gold.
Coeur will report its full second quarter operating and financial results on August 8, 2013.
Table 1: Operational Highlights: Production
|(silver ounces in thousands)||2Q 2013||1Q 2013||
The Company's 2013 production guidance remains unchanged. Coeur anticipates higher than planned silver production from San Bartolomé and higher than planned gold production from Palmarejo to offset lower than planned silver and gold production from Rochester.
Table 2: 2013 Production Outlook
|(silver ounces in thousands)||Country||Silver||Gold|
Mitchell Krebs, President and Chief Executive Officer, commented, "Our second quarter operating performance improved significantly compared to this year's first quarter and last year's fourth quarter. Operating consistency is a key priority for Coeur and I believe we're making solid progress.
"Since late last year, Coeur has been pursuing a four-prong strategy designed to maximize the Company's operating cash flow: (1) identifying and implementing revenue enhancement opportunities at existing operations such as process recovery improvements; (2) reducing operating costs, including third party services, overtime wages, and usage rates of certain consumables; (3) completing existing capital projects on-time and on-budget and targeting significantly lower capital expenditures in 2014; and (4) effectively managing working capital, including drawing down inventory levels of certain operating supplies.
"Since May, the management team has been pursuing other initiatives in response to lower silver and gold prices. We have eliminated 40 current or open positions from the organization, several capital projects have been deferred, a review of all general and administrative costs is underway, nearly 15% of our 2013 generative exploration budget has been reallocated to nearer-term, higher-grade targets, and our mine plans at each operation are currently being reviewed and optimized," Mr. Krebs added.
"While we will continue to focus on these initiatives in order to maximize operating cash flow, we will also seek to take advantage of the current environment to invest in high-quality, high-return opportunities - both internal and external - that we believe will strengthen the Company over the long-term," he said.
Coeur Mining, Inc. 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. 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, the Company has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia. The Company owns strategic investment positions in eight silver and gold development companies with projects in North and South America.
Posted: July 17, 2013