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Business Wire 14-Jan-2019 4:30 PM
Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today announced fourth quarter 2018 production of 3.5 million ounces of silver, 99,460 ounces of gold, 3.1 million pounds of zinc and 1.7 million pounds of lead, or 9.8 million silver equivalent1 ounces (12.2 million ounces based on average spot prices during the fourth quarter).2 Silver and gold production during the fourth quarter increased 19% and 12%, respectively, compared to the prior quarter. Strong results were driven by increased production from Palmarejo and Rochester as well as significantly higher production from Kensington.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190114005799/en/
Quarterly Production Results (Graphic: Business Wire)
Full-year 2018 production included 12.9 million ounces of silver, 367,728 ounces of gold, 6.8 million pounds of zinc and 3.9 million pounds of lead, or 35.6 million silver equivalent1 ounces (43.4 million ounces based on average spot prices for the year).2 Silver production increased 8% during 2018 driven by strong performance at Palmarejo and Rochester. Gold production decreased 4% over the same period as positive results from Palmarejo and Rochester were outweighed by lower production at Wharf.
Metal sales for the fourth quarter totaled 3.1 million ounces of silver, 87,514 ounces of gold, 2.6 million pounds of zinc and 1.4 million pounds of lead, or 8.5 million silver equivalent1 ounces (10.7 million ounces based on average spot prices during the quarter).2 Full-year 2018 metal sales totaled 12.4 million ounces of silver, 358,731 ounces of gold, 4.8 million pounds of zinc and 3.1 million pounds of lead, or 34.3 million silver equivalent1 ounces (41.9 million ounces based on average spot prices for the year).2 Metal sales reflect the impact of the bankruptcy filing of Republic Metals Corp. ("RMC"), a U.S.-based precious metals refiner, that occurred in early November. Approximately 0.4 million ounces and 6,500 ounces of the Company's silver and gold, respectively, were affected by RMC's Chapter 11 filing.
The Company expects to issue full-year 2019 production and cost guidance in conjunction with the release of its fourth quarter and full-year 2018 financial results on February 20, 2019.
Quarterly Production Results
Note: On February 28, 2018, Coeur divested the San Bartolomé mine through the sale of its 100%-owned Bolivian subsidiary. As a result, San Bartolomé is excluded from consolidating operating statistics for all periods presented unless otherwise noted.
Operations
Fourth quarter and full-year 2018 production and sales highlights for each of Coeur's operations are provided below.
Palmarejo, Mexico
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons milled | 1,382,471 | 378,389 | 300,116 | 344,073 | 359,893 | 1,498,421 | 389,524 | |||||||
Average silver grade (oz/t) | 6.49 | 5.96 | 6.26 | 6.86 | 6.88 | 5.62 | 6.92 | |||||||
Average gold grade (oz/t) | 0.10 | 0.08 | 0.10 | 0.11 | 0.10 | 0.09 | 0.10 | |||||||
Average recovery rate – Ag | 83.8% | 84.0% | 82.2% | 87.5% | 81.4% | 86.0% | 87.0% | |||||||
Average recovery rate – Au | 88.9% | 97.6% | 88.8% | 89.9% | 80.4% | 90.0% | 92.0% | |||||||
Ounces Produced | ||||||||||||||
Silver (000's) | 7,516 | 1,893 | 1,544 | 2,066 | 2,013 | 7,242 | 2,346 | |||||||
Gold | 122,722 | 31,239 | 27,885 | 33,702 | 29,896 | 121,569 | 37,537 | |||||||
Silver equivalent1 (000's) | 14,880 | 3,768 | 3,217 | 4,088 | 3,807 | 14,536 | 4,600 | |||||||
Silver equivalent1 (average spot) (000's) | 17,429 | 4,528 | 3,796 | 4,728 | 4,382 | 16,207 | 5,209 | |||||||
Ounces Sold | ||||||||||||||
Silver (000's) | 7,229 | 1,534 | 1,572 | 2,092 | 2,031 | 7,586 | 2,343 | |||||||
Gold | 115,592 | 23,667 | 29,830 | 31,207 | 30,888 | 131,743 | 38,953 | |||||||
Silver equivalent1 (000's) | 14,165 | 2,955 | 3,362 | 3,964 | 3,884 | 15,491 | 4,681 | |||||||
Silver equivalent1 (average spot) (000's) | 16,566 | 3,530 | 3,981 | 4,557 | 4,479 | 17,301 | 5,313 | |||||||
Average realized price per silver ounce | $15.77 | $14.57 | $14.75 | $16.49 | $16.73 | $16.96 | $16.57 | |||||||
Average realized price per gold ounce | $1,140 | $1,148 | $1,082 | $1,162 | $1,168 | $1,110 | $1,139 | |||||||
Rochester, Nevada
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons placed | 16,169,807 | 3,674,566 | 4,061,082 | 4,083,028 | 4,351,131 | 16,440,270 | 4,171,451 | |||||||
Average silver grade (oz/t) | 0.52 | 0.46 | 0.52 | 0.53 | 0.54 | 0.53 | 0.50 | |||||||
Average gold grade (oz/t) | 0.004 | 0.004 | 0.004 | 0.004 | 0.003 | 0.003 | 0.003 | |||||||
Ounces Produced | ||||||||||||||
Silver (000's) | 5,038 | 1,466 | 1,290 | 1,125 | 1,157 | 4,714 | 1,361 | |||||||
Gold | 54,388 | 15,926 | 14,702 | 12,273 | 11,487 | 51,051 | 18,995 | |||||||
Silver equivalent1 (000's) | 8,301 | 2,422 | 2,172 | 1,861 | 1,846 | 7,777 | 2,500 | |||||||
Silver equivalent1 (average spot) (000's) | 9,431 | 2,809 | 2,477 | 2,095 | 2,067 | 8,478 | 2,808 | |||||||
Ounces Sold | ||||||||||||||
Silver (000's) | 4,855 | 1,391 | 1,248 | 1,097 | 1,119 | 4,931 | 1,457 | |||||||
Gold | 52,789 | 15,339 | 14,257 | 12,030 | 11,163 | 54,642 | 20,002 | |||||||
Silver equivalent1 (000's) | 8,022 | 2,310 | 2,104 | 1,819 | 1,789 | 8,210 | 2,658 | |||||||
Silver equivalent1 (average spot) (000's) | 9,118 | 2,683 | 2,400 | 2,048 | 2,004 | 8,961 | 2,983 | |||||||
Average realized price per silver ounce | $15.50 | $14.53 | $14.70 | $16.47 | $16.66 | $16.98 | $16.58 | |||||||
Average realized price per gold ounce | $1,261 | $1,234 | $1,204 | $1,297 | $1,331 | $1,262 | $1,279 | |||||||
Wharf, South Dakota
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons placed | 4,923,774 | 1,644,168 | 1,127,391 | 1,075,820 | 1,076,395 | 4,560,441 | 1,124,785 | |||||||
Average gold grade (oz/t) | 0.022 | 0.020 | 0.023 | 0.023 | 0.022 | 0.027 | 0.029 | |||||||
Ounces produced | ||||||||||||||
Gold | 76,840 | 16,960 | 19,437 | 22,507 | 17,936 | 95,372 | 27,292 | |||||||
Silver (000's) | 51 | 13 | 13 | 13 | 12 | 64 | 16 | |||||||
Gold equivalent1 | 77,683 | 17,175 | 19,646 | 22,729 | 18,133 | 96,431 | 27,560 | |||||||
Ounces sold | ||||||||||||||
Gold | 75,572 | 15,306 | 19,874 | 23,053 | 17,339 | 98,237 | 28,975 | |||||||
Silver (000's) | 48 | 11 | 12 | 14 | 11 | 74 | 16 | |||||||
Gold equivalent1 | 76,373 | 15,488 | 20,081 | 23,282 | 17,522 | 99,472 | 29,256 | |||||||
Average realized price per gold ounce | $1,267 | $1,247 | $1,198 | $1,285 | $1,341 | $1,269 | $1,278 | |||||||
Kensington, Alaska
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons milled | 661,731 | 166,310 | 167,964 | 168,751 | 158,706 | 668,727 | 167,631 | |||||||
Average gold grade (oz/t) | 0.19 | 0.23 | 0.17 | 0.16 | 0.17 | 0.18 | 0.22 | |||||||
Average recovery rate | 93.0% | 93.0% | 91.8% | 92.6% | 94.0% | 93.5% | 92.8% | |||||||
Gold ounces produced | 113,778 | 35,335 | 26,809 | 25,570 | 26,064 | 115,094 | 34,932 | |||||||
Gold ounces sold | 114,778 | 33,202 | 25,648 | 28,165 | 27,763 | 125,982 | 35,634 | |||||||
Average realized price per gold ounce | $1,247 | $1,246 | $1,161 | $1,269 | $1,307 | $1,226 | $1,244 | |||||||
Silvertip, British Columbia
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons milled | 86,127 | 38,802 | 28,080 | 14,450 | 4,795 | — | — | |||||||
Average silver grade (oz/t) | 8.04 | 6.06 | 7.29 | 14.15 | 10.05 | — | — | |||||||
Average zinc grade (%) | 6.9% | 5.8% | 8.0% | 8.2% | 6.60 | — | — | |||||||
Average lead grade (%) | 5.0% | 3.9% | 4.6% | 8.1% | 7.3% | —% | —% | |||||||
Average recovery rate – Ag | 49.1% | 60.5% | 47.0% | 42.3% | 30.9% | —% | —% | |||||||
Average recovery rate – Zn | 56.7% | 69.1% | 49.1% | 57.9% | 18.7% | —% | —% | |||||||
Average recovery rate – Pb | 45.1% | 54.7% | 44.4% | 40.5% | 21.1% | —% | —% | |||||||
Produced | ||||||||||||||
Silver (000's ounces) | 340 | 142 | 96 | 87 | 15 | — | — | |||||||
Zinc (000's lbs) | 6,781 | 3,083 | 2,207 | 1,372 | 119 | — | — | |||||||
Lead (000's lbs) | 3,913 | 1,658 | 1,159 | 949 | 147 | — | — | |||||||
Silver equivalent1 (000's) | 943 | 411 | 286 | 217 | 29 | — | — | |||||||
Silver equivalent1 (average spot) (000's) | 1,117 | 488 | 342 | 277 | 36 | — | — | |||||||
Sold | ||||||||||||||
Silver (000's ounces) | 268 | 127 | 131 | 10 | — | — | — | |||||||
Zinc (000's lbs) | 4,793 | 2,552 | 1,772 | 469 | — | — | — | |||||||
Lead (000's lbs) | 3,089 | 1,444 | 1,645 | — | — | — | — | |||||||
Silver equivalent1 (000's) | 710 | 352 | 320 | 38 | — | — | — | |||||||
Silver equivalent1 (average spot) (000's) | 837 | 418 | 371 | 52 | — | — | — | |||||||
Average realized price per silver ounce | $14.03 | $13.79 | $14.95 | $13.01 | — | — | — | |||||||
Average realized price per zinc pound | $0.83 | $0.75 | $0.93 | $1.08 | — | — | — | |||||||
Average realized price per lead pound | $0.81 | $0.83 | $0.99 | $— | — | — | — | |||||||
2018 Production Results
Coeur's 2018 production results, along with its most recent production guidance published October 31, 2018, are shown below.
2018 Production Results2
Silver Equivalent1 | ||||||||||||
Silver | Gold | Zinc | Lead | 60:1 | Average Spot | |||||||
(K oz) | (oz) | (K lbs) | (K lbs) | (K oz) | (K oz) | |||||||
Palmarejo | 7,516 | 122,722 | — | — | 14,880 | 17,429 | ||||||
Rochester | 5,038 | 54,388 | — | — | 8,301 | 9,431 | ||||||
Wharf | 51 | 76,840 | — | — | 4,661 | 6,206 | ||||||
Kensington | — | 113,778 | — | — | 6,827 | 9,190 | ||||||
Silvertip | 340 | — | 6,781 | 3,913 | 943 | 1,117 | ||||||
Total | 12,945 | 367,728 | 6,781 | 3,913 | 35,612 | 43,373 | ||||||
2018 Production Guidance3
Silver Equivalent1 | ||||||||||||
Silver | Gold | Zinc | Lead | 60:1 | Average Spot | |||||||
(K oz) | (oz) | (K lbs) | (K lbs) | (K oz) | (K oz) | |||||||
Palmarejo | 7,500 - 7,900 | 115,000 - 120,000 | — | — | 14,400 - 15,100 | 16,782 - 17,586 | ||||||
Rochester | 4,800 - 5,200 | 48,000 - 52,000 |
— |
— | 7,680 - 8,320 | 8,674 - 9,397 | ||||||
Wharf | — | 85,000 - 90,000 |
— |
— | 5,100 - 5,400 | 6,861 - 7,264 | ||||||
Kensington | — | 115,000 - 120,000 |
|
— | — | 6,900 - 7,200 | 9,282 - 9,686 | |||||
Silvertip | 700 - 1,200 | — | 13,000 - 23,000 | 11,000 - 18,000 | 2,030 - 3,480 | 2,515 - 4,316 | ||||||
Total | 13,000 - 14,300 | 363,000 - 382,000 | 13,000 - 23,000 | 11,000 - 18,000 | 36,110 - 39,500 | 44,114 - 48,248 | ||||||
Financial Results and Conference Call
Coeur will report its fourth quarter and full-year 2018 financial results on February 20, 2019 after the New York Stock Exchange closes for trading. There will be a conference call on February 21, 2019 at 11:00 a.m. Eastern Time.
Dial-In Numbers: | (855) 560-2581 (U.S.) | ||||||
(855) 669-9657 (Canada) | |||||||
(412) 542-4166 (International) | |||||||
Conference ID: | Coeur Mining |
Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Terry F. D. Smith, Senior Vice President of Operations, Hans Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through March 7, 2019.
Replay numbers: | (877) 344-7529 (U.S.) | ||||||
(855) 669-9658 (Canada) | |||||||
(412) 317-0088 (International) | |||||||
Conference ID: | 101 27 575 | ||||||
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious metals producer with five mines in North America. Coeur produces from its wholly-owned operations: the Palmarejo silver-gold complex in Mexico, the Silvertip silver-zinc-lead mine in British Columbia, the Rochester silver-gold mine in Nevada, the Wharf gold mine in South Dakota, and the Kensington gold mine in Alaska. In addition, the Company has interests in several precious metals exploration projects throughout North America.
Cautionary Statement
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated recoveries, mining rates, throughput, development efforts, grades, operations at Rochester, improvements at Silvertip, and timing of obtaining permit amendment approval for Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold, silver, zinc, and lead and a sustained lower price environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of gold and silver reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, the loss or insolvency of any third-party smelter or refiner with whom Coeur does business, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.
Christopher Pascoe, Coeur's Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur's mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur's properties as filed on SEDAR at sedar.com.
Notes
Average Spot Prices
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | |||||||||||||||||||||
Average Silver Spot Price Per Ounce | $ | 15.71 | $ | 14.54 | $ | 15.02 | $ | 16.53 | $ | 16.77 | $ | 17.05 | $ | 16.73 | |||||||||||||
Average Gold Spot Price Per Ounce | $ | 1,268 | $ | 1,226 | $ | 1,213 | $ | 1,306 | $ | 1,329 | $ | 1,257 | $ | 1,275 | |||||||||||||
Average Silver to Gold Spot Equivalence | 81:1 | 84:1 | 81:1 | 79:1 | 79:1 | 74:1 | 76:1 | ||||||||||||||||||||
Average Zinc Spot Price Per Pound | $ | 1.33 | $ | 1.19 | $ | 1.15 | $ | 1.41 | $ | 1.55 | $ | 1.31 | $ | 1.47 | |||||||||||||
Average Silver to Zinc Spot Equivalence | 0.08:1 | 0.08:1 | 0.08:1 | 0.09:1 | 0.09:1 | 0.08:1 | 0.09:1 | ||||||||||||||||||||
Average Lead Spot Price Per Pound | $ | 1.02 | $ | 0.89 | $ | 0.95 | $ | 1.08 | $ | 1.14 | $ | 1.05 | $ | 1.13 | |||||||||||||
Average Silver to Lead Spot Equivalence | 0.06:1 | 0.06:1 | 0.06:1 | 0.07:1 | 0.07:1 | 0.06:1 | 0.07:1 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190114005799/en/