Coeur d'Alene Mines Corp.

Coeur d'Alene Mines - New long-life mines driving explosive growth 5 Silver mines operating - Reserves of: Silver 280m oz, Gold 2.2m oz

about 11 years ago

Coeur Reports Strong Second Quarter Production Results and Reaffirms Full-Year Production Guidance

Palmarejo's silver and gold production rose 24% and 23%, respectively, versus prior quarter

CHICAGO--(BUSINESS WIRE)--Jul. 16, 2013-- Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) (TSX: CDM) announced it produced 4.6 million ounces of silver and 60,757 ounces of gold during the second quarter of 2013. These production levels represent increases of 21% for silver and 7% for gold compared to the first quarter. Palmarejo's silver and gold production increased 24% and 23%, respectively, over the first quarter of 2013.

The Company also reaffirmed its full-year 2013 consolidated production guidance of 18.0-19.5 million ounces of silver and 250,000-265,000 ounces of gold.

Coeur will report its full second quarter operating and financial results on August 8, 2013.

Table 1: Operational Highlights: Production

(silver ounces in thousands)	2Q 2013	1Q 2013	Quarter Variance
	Silver	Gold	Silver	Gold	Silver		Gold
Palmarejo	2,045	28,191	1,646	22,965	24	%	23	%
San Bartolomé	1,523	—	1,391	—	9	%	n.a.
Rochester	844	9,404	648	8,742	30	%	8	%
Kensington	—	23,162	—	25,206	n.a.		(8	%)
Endeavor	221	—	150	—	47	%	n.a.
Total	4,633	60,757	3,835	56,913	21	%	7	%

2013 Outlook

The Company's 2013 production guidance remains unchanged. Coeur anticipates higher than planned silver production from San Bartolomé and higher than planned gold production from Palmarejo to offset lower than planned silver and gold production fromRochester.

Table 2: 2013 Production Outlook

(silver ounces in thousands)	Country	Silver	Gold
Palmarejo	Mexico	7,700-8,300	104,000-109,000
San Bartolomé	Bolivia	5,600-5,900	—
Rochester	Nevada, USA	4,100-4,500	38,000-42,000
Kensington	Alaska, USA	—	108,000-114,000
Endeavor	Australia	600-800	—
Total		18,000-19,500	250,000-265,000

Mitchell Krebs, President and Chief Executive Officer, commented, “Our second quarter operating performance improved significantly compared to this year's first quarter and last year's fourth quarter. Operating consistency is a key priority for Coeur and I believe we're making solid progress.

“Since late last year, Coeur has been pursuing a four-prong strategy designed to maximize the Company's operating cash flow: (1) identifying and implementing revenue enhancement opportunities at existing operations such as process recovery improvements; (2) reducing operating costs, including third party services, overtime wages, and usage rates of certain consumables; (3) completing existing capital projects on-time and on-budget and targeting significantly lower capital expenditures in 2014; and (4) effectively managing working capital, including drawing down inventory levels of certain operating supplies.

“Since May, the management team has been pursuing other initiatives in response to lower silver and gold prices. We have eliminated 40 current or open positions from the organization, several capital projects have been deferred, a review of all general and administrative costs is underway, nearly 15% of our 2013 generative exploration budget has been reallocated to nearer-term, higher-grade targets, and our mine plans at each operation are currently being reviewed and optimized,” Mr. Krebs added.

“While we will continue to focus on these initiatives in order to maximize operating cash flow, we will also seek to take advantage of the current environment to invest in high-quality, high-return opportunities - both internal and external - that we believe will strengthen the Company over the long-term,” he said.


Table 3: Results of Operations by Mine - Palmarejo

	2Q 2013	1Q 2013	4Q 2012	3Q 2012	2Q 2012
Underground Operations:
Tons mined	183,267	151,232	139,925	143,747	162,820
Average silver grade (oz/t)	4.59	4.22	4.70	6.13	8.91
Average gold grade (oz/t)	0.11	0.09	0.08	0.09	0.14
Surface Operations:
Tons mined	363,758	388,651	465,498	424,380	321,758
Average silver grade (oz/t)	4.95	3.45	2.62	2.79	4.14
Average gold grade (oz/t)	0.04	0.03	0.02	0.03	0.04
Processing:
Total tons milled	570,322	573,170	563,123	532,775	489,924
Average recovery rate – Ag	76.5%	78.8%	84.2%	90.0%	84.2%
Average recovery rate – Au	81.2%	90.1%	91.4%	102.5%	92.0%
Silver production - oz (000's)	2,045	1,646	1,555	1,833	2,365
Gold production - oz	28,191	22,965	19,998	23,702	31,258


Table 4: Results of Operations by Mine - San Bartolomé

	2Q 2013	1Q 2013	4Q 2012	3Q 2012	2Q 2012
Tons milled	424,310	374,985	363,813	344,349	391,005
Average silver grade (oz/t)	4.0	4.1	4.2	4.9	4.3
Average recovery rate	90.3%	90.6%	88%	90.3%	88.3%
Silver production (000's)	1,523	1,391	1,343	1,526	1,470


Table 5: Results of Operations by Mine - Rochester

	2Q 2013	1Q 2013	4Q 2012	3Q 2012	2Q 2012
Tons mined	2,457,423	2,924,472	3,031,428	3,170,129	2,585,914
Average silver grade (oz/t)	0.58	0.52	0.51	0.52	0.63
Average gold grade (oz/t)	0.003	0.003	0.005	0.004	0.005
Silver production (000's)	844	648	828	819	713
Gold production	9,404	8,742	12,055	10,599	10,120


Table 6: Results of Operations by Mine - Kensington

	2Q 2013	1Q 2013	4Q 2012	3Q 2012	2Q 2012
Tons mined	135,123	116,747	140,626	113,770	84,632
Tons milled	127,987	129,057	129,622	123,428	97,794
Average gold grade (oz/t)	0.18	0.20	0.23	0.21	0.23
Average recovery rate	98.2%	96.2%	96.9%	95.9%	94.2%
Gold production	23,162	25,206	28,718	24,391	21,572


Table 7: Results of Operations by Mine - Endeavor

	2Q 2013	1Q 2013	4Q 2012	3Q 2012	2Q 2012
Silver Production (000's)	221	150	105	140	240