Coeur Reports First Quarter 2017 Production and Sales Results

CHICAGO--()--Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today announced first quarter production of 3.9 million ounces of silver and 88,218 ounces of gold, or 9.2 million silver equivalent1 ounces. Metal sales for the quarter were 4.5 million ounces of silver and 110,874 ounces of gold, or 11.1 million silver equivalent1 ounces.

Coeur's full-year production guidance of 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, remains unchanged.

First quarter production and sales highlights for each of Coeur's operations are provided below.

                     
Palmarejo, Mexico     1Q 2017     4Q 2016     3Q 2016     2Q 2016     1Q 2016
Underground Operations
Tons mined 355,793 293,706 253,681 283,971 215,642
Average silver grade (oz/t) 4.84 5.00 3.96 5.40 4.21
Average gold grade (oz/t) 0.09 0.09 0.08 0.08 0.07
Surface Operations
Tons mined 1,695 35,211
Average silver grade (oz/t) 7.77 4.18
Average gold grade (oz/t) 0.07 0.04
Processing
Total tons milled 360,383 287,569 274,644 270,142 246,533
Average recovery rate – Ag 86.5% 89.1% 85.5% 89.5% 89.1%
Average recovery rate – Au 93.7% 90.4% 77.7% 86.4% 92.1%
Ounces Produced
Silver (000's) 1,531 1,269 933 1,307 933
Gold 30,792 23,906 16,608 18,731 14,668
Silver equivalent1 (000's) 3,378 2,703 1,930 2,431 1,813
Ounces Sold
Silver (000's) 1,965 937 778 1,350 928
Gold 41,045 15,558 11,410 19,214 12,899
Silver equivalent1 (000's) 4,427 1,872 1,462 2,502 1,702
Silver equivalent1 (average spot) (000's) 4,837 2,042 1,555 2,792 1,955
  • Mining rates at Guadalupe and Independencia continued to accelerate during the first quarter, averaging 2,700 and 1,225 tons per day, respectively
  • Production of 1.5 million silver ounces and 30,792 gold ounces represented quarter-over-quarter increases of 21% and 29%, respectively, and year-over-year increases of 64% and 110%
  • Silver and gold sales increased 110% and 164%, respectively, to 2.0 million ounces and 41,045 ounces partially due to the sale of metal carried over from the fourth quarter; year-over-year, silver sales increased 112% and gold sales increased 218%
  • Gold sales included 19,300 ounces sold to Franco-Nevada under the new stream agreement at a price of $800 per ounce. For the full year, the Company expects 40% - 45% of Palmarejo's gold sales to be to Franco-Nevada
                     
Rochester, Nevada     1Q 2017     4Q 2016     3Q 2016     2Q 2016     1Q 2016
Tons placed 3,513,708 3,878,487 4,901,039 6,402,013 4,374,459
Average silver grade (oz/t) 0.58 0.57 0.54 0.54 0.64
Average gold grade (oz/t) 0.002 0.002 0.003 0.003 0.004
Ounces Produced
Silver (000's) 1,127 1,277 1,161 1,197 929
Gold 10,356 14,231 12,120 13,940 10,460
Silver equivalent1 (000's) 1,749 2,131 1,888 2,033 1,557
Ounces Sold
Silver (000's) 1,289 1,205 1,163 1,137 1,079
Gold 13,592 12,988 11,751 12,909 11,672
Silver equivalent1 (000's) 2,104 1,984 1,868 1,912 1,779
Silver equivalent1 (average spot) (000's) 2,240 2,128 1,963 2,106 2,009
  • Record precipitation in January and early February negatively impacted crushing and placement rates and diluted process solutions. While operations normalized in March, silver and gold production decreased quarter-over-quarter to 1.1 million ounces and 10,356 ounces, respectively, representing declines of 12% and 27%; year-over-year, silver production increased 21% and gold production was relatively unchanged, decreasing 1%
  • Silver and gold sales increased 7% and 5%, respectively, to 1.3 million ounces and 13,592 ounces primarily due to a reduction in metal inventory; compared to the same period in 2016, silver and gold sales increased 19% and 16%, respectively
  • Despite weather challenges, construction of the Stage IV leach pad expansion continues on schedule and on budget with commissioning expected in early 3Q 2017
                     
Kensington, Alaska     1Q 2017     4Q 2016     3Q 2016     2Q 2016     1Q 2016
Tons milled 165,895 163,410 140,322 157,117 159,360
Average gold grade (oz/t) 0.17 0.22 0.20 0.22 0.21
Average recovery rate 94.0% 94.4% 94.8% 94.1% 95.8%
Gold ounces produced 26,197 33,688 26,459 32,210 31,974
Gold ounces sold 32,144 28,864 30,998 30,178 31,648
  • As anticipated, Kensington's first quarter production decreased to 26,197 ounces of gold, representing declines of 22% quarter-over-quarter and 18% year-over-year. Production is expected to increase in the second and third quarters
  • Lower grades and production were driven by mine sequencing; higher grades are expected for the remainder of 2017
  • Gold sales increased 11% over the fourth quarter to 32,144 ounces due to a reduction of metal inventory; year-over-year, gold sales increased 2%
  • Development of the Jualin decline remains on track for initial production later this year
                     
Wharf, South Dakota     1Q 2017     4Q 2016     3Q 2016     2Q 2016     1Q 2016
Tons placed 1,292,181 1,178,803 1,199,008 915,631 974,663
Average gold grade (oz/t) 0.027 0.027 0.033 0.037 0.031
Average plant recovery rate - Au 97.4% 98.9% 94.4% 88.5% 95.9%
Ounces produced
Gold 20,873 30,675 29,684 27,846 20,970
Silver (000's) 20 32 25 35 13
Gold equivalent1 21,207 31,202 30,106 28,433 21,186
Ounces sold
Gold 24,093 29,698 29,230 26,242 22,872
Silver (000's) 33 30 17 33 15
Gold equivalent1 24,636 30,204 29,508 26,786 23,122
  • Gold production during the first quarter declined 32% to 20,873 ounces as a result of leach pad offload timing; compared to the first quarter of 2016, production was unchanged
  • Gold sales decreased 19% quarter-over-quarter to 24,093 ounces due to lower production, which was partially offset by a decrease in metal inventory; year-over-year, sales increased 5%
  • Remainder of high-grade Golden Reward deposit will be mined late in the second quarter through the third quarter, which is expected to result in a modest increase to third quarter production
                     
San Bartolomé, Bolivia     1Q 2017     4Q 2016     3Q 2016     2Q 2016     1Q 2016
Tons milled 384,267 368,131 450,409 440,441 407,806
Average silver grade (oz/t) 3.49 3.96 3.43 3.79 3.64
Average recovery rate 90.7% 86.3% 88.7% 87.4% 93.1%
Silver ounces produced (000's) 1,215 1,259 1,370 1,458 1,382
Silver ounces sold (000's) 1,148 1,218 1,391 1,418 1,384
  • First quarter production decreased 3% to 1.2 million silver ounces as a result of persistent nationwide drought conditions; year-over-year, production declined 12%
  • Mill grades declined during the quarter primarily due the mining of lower grade ore which requires less water to process
  • Silver sales decreased 6% quarter-over-quarter and 17% year-over-year to 1.1 million ounces

Coeur Capital, Inc.

                     
Endeavor, Australia     1Q 2017     4Q 2016     3Q 2016     2Q 2016     1Q 2016
Silver production ounces (000's) 40 44 56 33 115
Silver ounces sold (000's) 40 58 46 35 123
  • Silver production from the Company's silver stream on the Endeavor mine in Australia decreased 9% quarter-over-quarter to approximately 40,000 ounces; year-over-year, production declined 65%
  • In response to higher zinc and lead prices, operations have begun to ramp up with higher production expected throughout the remainder of the year
 

2017 Production Guidance (Unchanged)

 
(silver and silver equivalent ounces in thousands)     Silver     Gold     Silver Equivalent1
Palmarejo     6,500 - 7,000     110,000 - 120,000     13,100 - 14,200
Rochester 4,200 - 4,700 47,000 - 52,000 7,020 - 7,820
Kensington 120,000 - 125,000 7,200 - 7,500
Wharf 85,000 - 90,000 5,100 - 5,400
San Bartolomé 5,400 - 5,900 5,400 - 5,900
Endeavor     300 - 400         300 - 400
Total     16,400 - 18,000     362,000 - 387,000     38,120 - 41,220
 

Financial Results and Conference Call

Coeur will report its full operational and financial results for first quarter 2017 on April 26, 2017 after the New York Stock Exchange closes for trading. There will be a conference call on April 27, 2017 at 11:00 a.m. Eastern time.

    Dial-In Numbers:     (855) 560-2581 (US)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID: Coeur Mining

The conference call and presentation will also be webcast on the Company’s website www.coeur.com. Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Peter C. Mitchell, Senior Vice President and Chief Financial Officer, Frank L. Hanagarne, Jr., Senior Vice President and Chief Operating Officer, Hans Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through May 11, 2017.

    Replay numbers:     (877) 344-7529 (US)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID: 101 02 991
 

About Coeur

Coeur Mining is a well-diversified, growing precious metals producer with five precious metals mines in the Americas employing approximately 2,000 people. Coeur produces from its wholly-owned operations: the Palmarejo silver-gold 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 San Bartolomé silver mine in Bolivia. The Company also has a non-operating interest in the Endeavor mine in Australia. In addition, the Company owns the La Preciosa project in Mexico, a silver-gold exploration stage project. Coeur conducts exploration activities throughout North and South 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, sales, operations at the Palmarejo complex, expansion at Rochester, grades and development efforts at Kensington, operations at Wharf, and production levels at the Endeavor mine. 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 risk that anticipated production levels are not attained, 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 and silver 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, reliance on third parties to operate certain mines where Coeur owns silver production and reserves and the absence of control over mining operations in which Coeur or its subsidiaries hold royalty or streaming interests and risks related to these mining operations including results of mining and exploration activities, environmental, economic and political risks of the jurisdiction in which the mining operations are located, the loss of any third-party smelter to which Coeur markets silver and gold, 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 report on Form 10-K. 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

  1. Silver and gold equivalence calculated using a 60:1 silver-to-gold ratio, except where noted as average spot prices. Please see table below for average silver and gold spot prices during the period and corresponding silver-to-gold ratios.

Average Spot Prices

    1Q 2017       4Q 2016       3Q 2016       2Q 2016       1Q 2016
Average Silver Spot Price Per Ounce $   17.42         $   17.19         $   19.61         $   16.78         $   14.85
Average Gold Spot Price Per Ounce $ 1,219 $ 1,222 $ 1,335 $ 1,260 $ 1,183
Average Silver to Gold Spot Equivalence 70:1 71:1 68:1 75:1 80:1
 

Contacts

Coeur Mining, Inc.
Courtney Lynn, Vice President, Investor Relations and Treasurer
(312) 489-5837
www.coeur.com

Contacts

Coeur Mining, Inc.
Courtney Lynn, Vice President, Investor Relations and Treasurer
(312) 489-5837
www.coeur.com