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Coeur Reports Fourth Quarter and Full Year 2016 Production Results and Provides 2017 Production Guidance


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CHICAGO--(BUSINESS WIRE)-- Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today announced fourth quarter production of 3.9 million ounces of silver and 102,500 ounces of gold, or 10.0 million silver equivalent1 ounces, the highest quarterly silver equivalent1 production in Company history.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170105006523/en/

Quarterly production results (Graphic: Business Wire)

Quarterly production results (Graphic: Business Wire)

Full-year 2016 production was 14.8 million ounces of silver, in-line with the Company's guidance of 14.4 - 15.7 million ounces, and 358,170 ounces of gold, above the high-end of Company guidance of 333,000 - 355,000 gold ounces. Full-year silver equivalent1 production totaled 36.3 million ounces, in line with guidance of 34.4 - 37.0 million ounces.

In 2017, Coeur expects to produce 16.4 - 18.0 million ounces of silver and 362,000 - 387,000 ounces of gold, or 38.1 - 41.2 million silver equivalent1 ounces, an increase of over 9% year-over-year based on the midpoint of the 2017 guidance range.

Fourth quarter production highlights for each of Coeur's operations are provided below.

                             
Palmarejo, Mexico   2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Underground Operations:                            
Tons mined   1,047,000   293,706   253,681   283,971   215,642   701,662   189,383
Average silver grade (oz/t)   4.69   5.00   3.96   5.40   4.21   4.06   3.96
Average gold grade (oz/t)   0.08   0.09   0.08   0.08   0.07   0.08   0.06
Surface Operations:                            
Tons mined   36,906       1,695   35,211   888,432   102,018
Average silver grade (oz/t)   4.34       7.77   4.18   3.64   3.86
Average gold grade (oz/t)   0.04       0.07   0.04   0.03   0.03
Processing:                            
Total tons milled   1,078,888   287,569   274,644   270,142   246,533   1,616,668   301,274
Average recovery rate – Ag   88.4%   89.1%   85.5%   89.5%   89.1%   84.3%   95.4%
Average recovery rate – Au   86.5%   90.4%   77.7%   86.4%   92.1%   80.6%   88.8%
Silver production ounces (000's)   4,442   1,269   933   1,307   933   5,149   1,126
Gold production ounces   73,913   23,906   16,608   18,731   14,668   70,922   14,326
Silver-equivalent1 production ounces (000's)   8,877   2,703   1,930   2,431   1,813   9,404   1,985
                             
  • Ramp-up of higher-grade, higher-margin underground operations advancing on schedule with Guadalupe and Independencia now mining at approximately 2,400 and 1,000 tons per day, respectively; targeting combined mining rate of 4,500 tons per day by year-end 2017 compared to an average of approximately 2,500 tons per day in 2016
  • Full-year 2016 production of 4.4 million silver ounces and 73,913 gold ounces, or 8.9 million silver equivalent1 ounces, was in-line with the Company's guidance range
  • Full-year 2016 silver and gold grades improved 22% and 33% year-over-year to 4.68 and 0.08 oz/t, respectively
  • Full-year 2016 recovery rates for silver and gold increased 4% and 6% to 88.4% and 86.5%, respectively, compared to full-year 2015 recovery rates
  • Mining of the legacy underground area was completed during the fourth quarter
  • Full-year 2017 production expected to increase to 6.5 - 7.0 million silver ounces and 110,000 - 120,000 gold ounces, or 13.1 - 14.2 million silver equivalent1 ounces
                             
Rochester, Nevada   2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons placed   19,555,998   3,878,487   4,901,039   6,402,013   4,374,459   16,414,302   4,411,590
Average silver grade (oz/t)   0.57   0.57   0.54   0.54   0.64   0.63   0.60
Average gold grade (oz/t)   0.003   0.002   0.003   0.003   0.004   0.003   0.003
Silver production ounces (000's)   4,564   1,277   1,161   1,197   929   4,631   1,107
Gold production ounces   50,751   14,231   12,120   13,940   10,460   52,588   11,564
Silver equivalent1 production ounces (000's)   7,609   2,131   1,888   2,033   1,557   7,786   1,800
                             
  • Silver equivalent1 production increased 13% quarter-over-quarter due to improved Stage III leach pad performance resulting from strong ore placement rates throughout 2016
  • Tons placed of 19.6 million in 2016 was approximately 19% higher year-over-year and the highest since Rochester first began operating in 1986
  • Full-year 2016 production of 4.6 million silver ounces and 50,751 gold ounces, or 7.6 million silver equivalent1 ounces, was in-line with the Company's guidance range
  • Construction of the Stage IV leach pad expansion continues on schedule and on budget with commissioning expected in early 3Q 2017
  • Full-year 2017 production expected to be 4.2 - 4.7 million ounces of silver and 47,000 - 52,000 ounces of gold, or 7.0 - 7.8 million silver equivalent1 ounces
                             
Kensington, Alaska   2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons milled   620,209   163,410   140,322   157,117   159,360   660,464   159,666
Average gold grade (oz/t)   0.21   0.22   0.20   0.22   0.21   0.20   0.22
Average recovery rate   94.7%   94.4%   94.8%   94.1%   95.8%   94.9%   96.0%
Gold production ounces   124,331   33,688   26,459   32,210   31,974   126,266   33,713
                             
  • Fourth quarter gold production was the highest of the year, increasing 27% quarter-over-quarter to 33,688 ounces due to higher tons milled and higher grades
  • Full-year 2016 production of 124,331 ounces of gold was in-line with the Company's guidance range and relatively flat year-over-year
  • Development of the Jualin decline continues on schedule with 64% completed as of year-end
  • Gold production expected to be 120,000 - 125,000 ounces in 2017
                             
Wharf, South Dakota   2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons placed   4,268,105   1,178,803   1,199,008   915,631   974,663   3,600,279   1,147,130
Average gold grade (oz/t)   0.032   0.027   0.033   0.037   0.031   0.030   0.032
Average plant recovery rate - Au   94.3%   98.9%   94.4%   88.5%   95.9%   89.5%   96.3%
Gold production ounces   109,175   30,675   29,684   27,846   20,970   78,132   31,947
Silver production ounces (000's)   105   31   25   35   13   56   18
Gold equivalent1 production ounces   110,927   31,202   30,106   28,433   21,186   79,061   32,231
                             
  • Gold production during the fourth quarter was the highest of the year at 30,675 ounces
  • Grades decreased in the fourth quarter, as anticipated, due to seasonal mine sequencing
  • Full-year 2016 gold production was 109,175 ounces, over 9,000 ounces above the high-end of the Company's guidance range, and 31,043 ounces higher than in 2015, primarily due to two additional months of production as well as improved grades and plant recovery rates
  • Gold production expected to decrease in 2017 to 85,000 - 90,000 ounces due to of the anticipated completion of mining at the higher-grade Golden Reward deposit in mid-2017
                             
San Bartolomé, Bolivia   2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons milled   1,666,787   368,131   450,409   440,441   407,806   1,713,079   475,695
Average silver grade (oz/t)   3.69   3.96   3.43   3.79   3.64   3.75   3.84
Average recovery rate   88.8%   86.3%   88.7%   87.4%   93.1%   84.6%   84.9%
Silver production ounces (000's)   5,469   1,259   1,370   1,458   1,382   5,436   1,550
                             
  • Silver production decreased 8% quarter-over-quarter to 1.3 million ounces due to an ongoing water shortage in Bolivia resulting from nationwide drought conditions
  • Full-year 2016 production was just below the low-end of the Company's guidance range at 5.5 million ounces of silver
  • 2017 silver production expected to be 5.4 - 5.9 million ounces

 

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