CHICAGO–(BUSINESS WIRE)–Oct. 10, 2013– Coeur Mining, Inc. (the Company or Coeur)(NYSE:CDE, TSX:CDM) announced it produced 4.2 million ounces of silver and 63,763 ounces of gold during the third quarter of 2013. These production levels represent a decrease of 10% for silver and an increase of 5% for gold compared to the second quarter. Production at both Palmarejo and San Bartolomé were consistent with the second quarter. Kensington’s gold production increased 25% over the second quarter of 2013 due to an increase in tons milled and higher gold grades. Rochester’s production during the quarter was negatively impacted by the completion of several expansion-related projects, which are expected to lead to significantly higher production levels in the fourth quarter and next year.
Operational Highlights: Production
(silver ounces in thousands)
3Q 2013
2Q 2013
Quarter Variance
Silver
Gold
Silver
Gold
Silver
Gold
Palmarejo
1,918
29,893
2,045
28,191
(6
)%
6
%
San Bartolomé
1,528
1,523
0
%
n.a.
Rochester
580
4,821
844
9,404
(31
)%
(49
)%
Kensington
29,049
23,162
n.a.
25
%
Endeavor
162
221
(27
)%
n.a.
Total
4,188
63,763
4,633
60,757
(10
)%
5
%
2013 Outlook
The Company reaffirmed its full-year 2013 consolidated production guidance of 18.0-19.1 million ounces of silver and 250,000-258,000 ounces of gold.
2013 Production Outlook
(silver ounces in thousands)
Country
Silver
Gold
Palmarejo
Mexico
7,700 – 8,300
108,000 – 110,000
San Bartolomé
Bolivia
5,900 – 6,000
Rochester
Nevada, USA
3,700 – 4,000
34,000 – 36,000
Kensington
Alaska, USA
108,000 – 112,000
Endeavor
Australia
700 – 800
Total
18,000 – 19,100
250,000 – 258,000
Mitchell Krebs, President and Chief Executive Officer, commented, Our third quarter operating performance demonstrates further consistency at Palmarejo, San Bartolomé, and Kensington, and represents a critical turning point for Rochester. The completion of recent capital investments in the existing heap leach pads and in the operation’s crushing capacity, along with the substantial increase in reserves announced last month, support the high-return, long-term growth profile we expect to achieve at Rochester. Maintaining our full-year total production guidance within the range provided at the beginning of 2013 reflects our enhanced technical and operating capabilities and our ability to better execute against our plan.
Coeur will report its full third quarter operating and financial results on November 6, 2013 after the New York and Toronto stock exchanges close for trading. There will be a conference call on November 7, 2013 at 11:00 a.m. Eastern time.
Dial-In Numbers:
(877) 768-0708 (U.S. and Canada)
(660) 422-4718 (International)
Conference ID:
805 93 215
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, Vice President of Exploration, Joe Phillips, Senior Vice President and Chief Development Officer, and other members of management.
A replay of the call will be available on Coeur’s website through November 21, 2013.
Replay number:
(855) 859-2056 (U.S. and Canada)
(404) 537-3406 (International)
About Coeur
Coeur Mining, Inc. is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also has a non-operating interest in the Endeavor mine in Australia. In addition, the Company has two silver-gold feasibility stage projects – the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia. The Company owns strategic investment positions in eight silver and gold development companies with projects in 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 operating results, production levels, drilling results, reserve levels, and efforts to generate high returns and long-term growth. 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 permits necessary for the planned Rochester expansion may not be obtained, 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 ore 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, 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 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.
Paul Hohbach, Coeur’s Director of Exploration and a qualified person under Canadian National Instrument 43-101, reviewed and 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, please see the Technical Reports for each of Coeur’s properties as filed on SEDAR at www.sedar.com.
Table 3:
Results of Operations by Mine – Palmarejo
3Q 2013
2Q 2013
1Q 2013
4Q 2012
3Q 2012
Underground Operations:
Tons mined
219,909
183,267
151,232
139,925
143,747
Average silver grade (oz/t)
4.73
4.59
4.22
4.70
6.13
Average gold grade (oz/t)
0.11
0.11
0.09
0.08
0.09
Surface Operations:
Tons mined
385,379
363,758
388,651
465,498
424,380
Average silver grade (oz/t)
3.49
4.95
3.45
2.62
2.79
Average gold grade (oz/t)
0.03
0.04
0.03
0.02
0.03
Processing:
Total tons milled
583,365
570,322
573,170
563,123
532,775
Average recovery rate Ag
81.8%
76.5%
78.8%
84.2%
90.0%
Average recovery rate Au
87.6%
81.2%
90.1%
91.4%
102.5%
Silver production – oz (000’s)
1,918
2,045
1,646
1,555
1,833
Gold production – oz
29,893
28,191
22,965
19,998
23,702
Table 4:
Results of Operations by Mine – San Bartolomé
3Q 2013
2Q 2013
1Q 2013
4Q 2012
3Q 2012
Tons milled
428,884
424,310
374,985
363,813
344,349
Average silver grade (oz/t)
3.89
3.98
4.09
4.20
4.91
Average recovery rate
91.5%
90.3%
90.6%
88%
90.3%
Silver production (000’s)
1,528
1,523
1,391
1,343
1,526
Table 5:
Results of Operations by Mine – Rochester
3Q 2013
2Q 2013
1Q 2013
4Q 2012
3Q 2012
Tons milled
2,678,906
2,457,423
2,439,757
2,286,233
2,361,951
Average silver grade (oz/t)
0.53
0.58
0.52
0.51
0.52
Average gold grade (oz/t)
0.003
0.003
0.003
0.005
0.004
Silver production (000’s)
580
844
648
828
819
Gold production
4,821
9,404
8,742
12,055
10,599
Table 6:
Results of Operations by Mine – Kensington
3Q 2013
2Q 2013
1Q 2013
4Q 2012
3Q 2012
Tons mined
122,064
135,123
116,747
140,626
113,770
Tons milled
147,427
127,987
129,057
129,622
123,428
Average gold grade (oz/t)
0.20
0.18
0.20
0.23
0.21
Average recovery rate
96.5%
98.2%
96.2%
96.9%
95.9%
Gold production
29,049
23,162
25,206
28,718
24,391
Table 7:
Results of Operations by Mine – Endeavor
3Q 2013
2Q 2013
1Q 2013
4Q 2012
3Q 2012
Silver Production (000’s)
162
221
150
105
140
Source: Coeur Mining, Inc.
Coeur Mining, Inc. Bridget Freas, Director, Investor Relations 312-489-5819 or Donna Mirandola, Director, Corporate Communications 312-489-5842 www.coeur.com
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