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Business Wire 11-Apr-2019 4:30 PM
Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today announced first quarter 2019 production of 78,336 ounces of gold, 2.5 million ounces of silver, 3.7 million pounds of zinc and 3.1 million pounds of lead. Metal sales for the quarter were 85,326 ounces of gold, 2.6 million ounces of silver, 4.7 million pounds of zinc and 2.7 million pounds of lead.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190411005816/en/
Quarterly Production Results (Graphic: Business Wire)
As disclosed on February 20, 2019, the Company expects to produce 334,000 - 372,000 ounces of gold, 12.2 - 14.7 million ounces of silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds of lead in 2019.
"First quarter operating results were in-line with our expectations" said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "Our top two 2019 initiatives – successfully ramping up operating activities at Silvertip and completing the installation of the high-pressure grinding roll ("HPGR") unit at Rochester – remain on-track. Our Kensington mine continues to see the benefit of higher grades from the Jualin deposit, while Wharf exceeded its plan during the first quarter and is positioned to deliver higher production during the remainder of the year."
"As previously indicated, our full-year financial and operating results are anticipated to be second half weighted. We expect higher production levels at Palmarejo as production begins at the new La Nación deposit and a new thickener is commissioned in the second half of 2019. Rochester's second half 2019 production is expected to increase due to the positive impacts of the new HPGR unit, while higher mining and processing rates from the higher-grade Jualin deposit are expected to boost second half production at Kensington. Together, these initiatives are expected to lead to a return to positive free cash flow in 2019."
Operations
First quarter production and sales highlights for each of Coeur's operations are provided below.
Palmarejo, Mexico |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||
Tons milled | 378,987 | 378,389 | 300,116 | 344,073 | 359,893 | |||||
Average gold grade (oz/t) | 0.07 | 0.08 | 0.10 | 0.11 | 0.10 | |||||
Average silver grade (oz/t) | 4.64 | 5.96 | 6.26 | 6.86 | 6.88 | |||||
Average recovery rate – Au | 83.4% | 97.6% | 88.8% | 89.9% | 80.4% | |||||
Average recovery rate – Ag | 72.8% | 84.0% | 82.2% | 87.5% | 81.4% | |||||
Ounces Produced | ||||||||||
Gold | 23,205 | 31,239 | 27,885 | 33,702 | 29,896 | |||||
Silver (000's) | 1,278 | 1,893 | 1,544 | 2,066 | 2,013 | |||||
Ounces Sold | ||||||||||
Gold | 27,394 | 23,667 | 29,830 | 31,207 | 30,888 | |||||
Silver (000's) | 1,405 | 1,534 | 1,572 | 2,092 | 2,031 | |||||
Average realized price per gold ounce | $1,154 | $1,148 | $1,082 | $1,162 | $1,168 | |||||
Average realized price per silver ounce | $15.39 | $14.57 | $14.75 | $16.49 | $16.73 | |||||
Rochester, Nevada |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||
Tons placed | 2,667,559 | 3,674,566 | 4,061,082 | 4,083,028 | 4,351,131 | |||||
Average silver grade (oz/t) | 0.46 | 0.46 | 0.52 | 0.53 | 0.54 | |||||
Average gold grade (oz/t) | 0.003 | 0.004 | 0.004 | 0.004 | 0.003 | |||||
Ounces Produced | ||||||||||
Silver (000's) | 960 | 1,466 | 1,290 | 1,125 | 1,157 | |||||
Gold | 8,256 | 15,926 | 14,702 | 12,273 | 11,487 | |||||
Ounces Sold | ||||||||||
Silver (000's) | 1,000 | 1,391 | 1,248 | 1,097 | 1,119 | |||||
Gold | 8,511 | 15,339 | 14,257 | 12,030 | 11,163 | |||||
Average realized price per silver ounce | $15.31 | $14.53 | $14.70 | $16.47 | $16.66 | |||||
Average realized price per gold ounce | $1,299 | $1,234 | $1,204 | $1,297 | $1,331 | |||||
Kensington, Alaska |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||
Tons milled | 164,332 | 166,310 | 167,964 | 168,751 | 158,706 | |||||
Average gold grade (oz/t) | 0.20 | 0.23 | 0.17 | 0.16 | 0.17 | |||||
Average recovery rate | 90.2% | 93.0% | 91.8% | 92.6% | 94.0% | |||||
Gold ounces produced | 29,973 | 35,335 | 26,809 | 25,570 | 26,064 | |||||
Gold ounces sold | 31,335 | 33,202 | 25,648 | 28,165 | 27,763 | |||||
Average realized price per gold ounce | $1,290 | $1,246 | $1,161 | $1,269 | $1,307 | |||||
Wharf, South Dakota |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||
Tons placed | 1,090,510 | 1,644,168 | 1,127,391 | 1,075,820 | 1,076,395 | |||||
Average gold grade (oz/t) | 0.020 | 0.020 | 0.023 | 0.023 | 0.022 | |||||
Ounces produced | ||||||||||
Gold | 16,902 | 16,960 | 19,437 | 22,507 | 17,936 | |||||
Silver (000's) | 13 | 13 | 13 | 13 | 12 | |||||
Ounces sold | ||||||||||
Gold | 18,086 | 15,306 | 19,874 | 23,053 | 17,339 | |||||
Silver (000's) | 14 | 11 | 12 | 14 | 11 | |||||
Average realized price per gold ounce | $1,317 | $1,247 | $1,198 | $1,285 | $1,341 | |||||
Silvertip, British Columbia |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||
Tons milled | 62,051 | 38,802 | 28,080 | 14,450 | 4,795 | |||||
Average silver grade (oz/t) | 5.50 | 6.06 | 7.29 | 14.15 | 10.05 | |||||
Average zinc grade (%) | 5.9% | 5.8% | 8.0% | 8.2% | 6.6% | |||||
Average lead grade (%) | 3.7% | 3.9% | 4.6% | 8.1% | 7.3% | |||||
Average recovery rate – Ag | 69.9% | 60.5% | 47.0% | 42.3% | 30.9% | |||||
Average recovery rate – Zn | 50.5% | 69.1% | 49.1% | 57.9% | 18.7% | |||||
Average recovery rate – Pb | 66.8% | 54.7% | 44.4% | 40.5% | 21.1% | |||||
Produced | ||||||||||
Silver (000's ounces) |
239 |
142 | 96 | 87 | 15 | |||||
Zinc (000's lbs) | 3,719 | 3,083 | 2,207 | 1,372 | 119 | |||||
Lead (000's lbs) | 3,077 | 1,658 | 1,159 | 949 | 147 | |||||
Sold | ||||||||||
Silver (000's ounces) | 215 | 127 | 131 | 10 | — | |||||
Zinc (000's lbs) | 4,723 | 2,552 | 1,772 | 469 | — | |||||
Lead (000's lbs) | 2,748 | 1,444 | 1,645 | — | — | |||||
Average realized price per silver ounce, gross | $14.98 | $15.54 | $14.62 | $16.31 | — | |||||
Treatment and refining charges per silver ounce | $1.24 | $1.38 | $3.34 | $3.30 | ||||||
Average realized price per silver ounce, net | $13.74 | $14.16 | $11.28 | $13.01 | — | |||||
Average realized price per zinc pound, gross | $1.50 | $1.07 | $1.20 | $1.35 | — | |||||
Treatment and refining charges per zinc pound | $0.31 | $0.24 | $0.27 | $0.27 | ||||||
Average realized price per zinc pound, net | $1.19 | $0.83 | $0.93 | $1.08 | — | |||||
Average realized price per lead pound, gross | $0.92 | $0.87 | $0.97 | $— | — | |||||
Treatment and refining charges per lead pound | $0.06 | $0.07 | $0.07 | $— | ||||||
Average realized price per lead pound, net | $0.86 | $0.80 | $0.90 | $— | — | |||||
2019 Production Guidance
Coeur's 2019 production guidance remains unchanged from its original guidance published on February 20, 2019.
Gold | Silver | Zinc | Lead | |||||
(oz) | (K oz) | (K lbs) | (K lbs) | |||||
Palmarejo | 95,000 - 105,000 | 6,500 - 7,200 | — | — | ||||
Rochester | 40,000 - 50,000 | 4,200 - 5,000 | — | — | ||||
Kensington | 117,000 - 130,000 | — | — | — | ||||
Wharf | 82,000 - 87,000 | — | — | — | ||||
Silvertip | — | 1,500 - 2,500 | 25,000 - 40,000 | 20,000 - 35,000 | ||||
Total | 334,000 - 372,000 | 12,200 - 14,700 | 25,000 - 40,000 | 20,000 - 35,000 | ||||
Financial Results and Conference Call
Coeur will report its first quarter financial results on May 1, 2019 after the New York Stock Exchange closes for trading. There will be a conference call on May 2, 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 J. Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through May 16, 2019.
Replay numbers: | (877) 344-7529 (U.S.) | ||
(855) 669-9658 (Canada) | |||
(412) 317-0088 (International) | |||
Conference ID: | 101 29 527 | ||
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. 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 production, results, recoveries, mining rates, throughput, development efforts, operations at Palmarejo, Rochester, Kensington, Wharf and 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 mineral 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.
Average Spot Prices |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||||||||||||
Average Silver Spot Price Per Ounce | $ | 15.57 | $ | 14.54 | $ | 15.02 | $ | 16.53 | $ | 16.77 | |||||||||
Average Gold Spot Price Per Ounce | $ | 1,304 | $ | 1,226 | $ | 1,213 | $ | 1,306 | $ | 1,329 | |||||||||
Average Zinc Spot Price Per Pound | $ | 1.23 | $ | 1.19 | $ | 1.15 | $ | 1.41 | $ | 1.55 | |||||||||
Average Lead Spot Price Per Pound | $ | 0.92 | $ | 0.89 | $ | 0.95 | $ | 1.08 | $ | 1.14 | |||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190411005816/en/