Coeur Reports Third Quarter Financial and Operating Results
COEUR D'ALENE, Idaho--()--Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) produced 4.4 million ounces of silver and 58,768 ounces of gold during the third quarter, which resulted in $230.6 million in sales and $77.3 million of operating cash flow1. The Company repurchased $10.0 million of its common shares during the quarter and repaid $72.0 million of outstanding debt, resulting in total remaining debt of $47.4 million2 and cash, cash equivalents and short-term investments of $143.6 million as of September 30, 2012.
“As we look ahead to 2013, we expect silver and gold production to be consistent with 2011 and 2012 levels”
Third Quarter Highlights
- Silver production totaled 4.4 million ounces, 10% lower than second quarter 2012 levels.
- Gold production totaled 58,768 ounces, down 7% from the second quarter.
- Net metal sales totaled $230.6 million, down 9% from the second quarter.
- Operating cash flow1 totaled $77.3 million, down 13% from the second quarter. Including changes in working capital, net cash from operating activities was $79.7 million compared to $113.2 million in the second quarter.
- Consolidated cash operating costs1 were $9.05 per silver ounce compared to $6.41 per silver ounce in the second quarter.
- Kensington's cash operating costs1 per gold ounce declined 4% from the second quarter to $1,298. These costs are expected to decline to under $950 per ounce in 2013.
- Adjusted earnings1 were $25.8 million, or $0.29 per share, compared with $28.0 million, or $0.31 per share, in the second quarter 2012. Net loss for the quarter, which included a non-cash fair market value adjustment of $37.6 million, was $15.8 million, or $0.18 per share, compared with net income of $23.0 million, or $0.26 per share, in the second quarter.
- Cash, cash equivalents and short-term investments were $143.6 million as of September 30, 2012.
Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, “The Company's third quarter was negatively impacted by lower production and higher unit costs at the Palmarejo mine in Mexico, which were due to unfavorable underground conditions encountered during September and a transition in open pit production. Open pit production has been accelerated to partially offset the impact, which has led to higher unit costs and lower overall grades."
Mr. Krebs added, "Our Rochester silver and gold mine in Nevada and our Kensington gold mine in Alaska continued to accelerate production rates during the quarter. Despite experiencing power outages that resulted in unanticipated mill downtime during August, our San Bartolomé silver mine in Bolivia delivered consistent operational results."
The Company expects 2012 full-year production to total 18.5 - 19.0 million silver ounces and 215,000 - 225,000 gold ounces. Cash operating costs1 are expected to be approximately $7.50 per silver ounce. The Company expects cash operating costs1 per ounce of gold at Kensington to average approximately $1,350 for the full year 2012.
"As we look ahead to 2013, we expect silver and gold production to be consistent with 2011 and 2012 levels," Mr. Krebs commented.
EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations.
Net of debt discount of $1.3 million.