Coeur d'Alene Mines Corp.
Coeur Reports First Quarter Production Results
April 07, 2014Share on google_plusone_share
Chicago, Illinois - April 7, 2014 - Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE:CDE) today announced preliminary first quarter production of 4.1 million ounces of silver and 58,836 ounces of gold, or 7.6 million silver equivalent ounces1.
Quarterly Production Results1
“Our first quarter operational performance represents a solid start to the year,” stated Mitchell Krebs, Coeur’s President and Chief Executive Officer. “In particular, we are pleased with the progress at our Rochester mine, where daily silver production rates have exceeded 13,000 ounces in early April. We anticipate higher silver and gold production levels from Rochester in each successive quarter during the remainder of 2014.
“With our four major mines operating consistently, our cost reduction initiatives gaining momentum, minimal required capital projects, and a bolstered liquidity position, we believe we are well-positioned for a successful year,” Mr. Krebs concluded.
1Q 2014 Operational Results1
First quarter operational highlights for each of the Company's mines are provided below.
Palmarejo, Mexico |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Underground Operations: |
|||||
Tons mined |
209,854 |
237,384 |
219,909 |
183,267 |
151,232 |
Average silver grade (oz/t) |
5.95 |
6.00 |
4.73 |
4.59 |
4.22 |
Average gold grade (oz/t) |
0.11 |
0.14 |
0.11 |
0.11 |
0.09 |
Surface Operations: |
|||||
Tons mined |
358,222 |
361,493 |
385,379 |
363,758 |
388,651 |
Average silver grade (oz/t) |
3.50 |
3.49 |
3.49 |
4.95 |
3.45 |
Average gold grade (oz/t) |
0.03 |
0.03 |
0.03 |
0.04 |
0.03 |
Processing: |
|||||
Total tons milled |
571,345 |
595,803 |
583,365 |
570,322 |
573,170 |
Average recovery rate – Ag |
73.3% |
74.5% |
81.8% |
76.5% |
78.8% |
Average recovery rate – Au |
78.0% |
80.6% |
87.6% |
81.2% |
90.1% |
Silver production ounces (000's) |
1,820 |
1,994 |
1,918 |
2,045 |
1,646 |
Gold production ounces |
25,216 |
35,486 |
29,893 |
28,191 |
22,965 |
Silver equivalent production ounces (000's) |
3,333 |
4,123 |
3,712 |
3,736 |
3,024 |
- Palmarejo processed approximately 6,350 tons per day during the quarter.
- Although down from the fourth quarter, underground operations are providing a higher proportion of the tons milled, which reflects a focus on transitioning Palmarejo to a higher-grade, higher-margin operation.
- An expanded Merrill Crowe plant is currently being commissioned, which, along with improved processes for blending oxide and sulfide ore, is expected to increase recovery rates during the remainder of the year.
San Bartolomé, Bolivia |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Tons milled |
385,375 |
451,660 |
428,884 |
424,310 |
374,985 |
Average silver grade (oz/t) |
3.88 |
3.79 |
3.89 |
3.98 |
4.09 |
Average recovery rate |
90.5% |
87.6% |
91.5% |
90.3% |
90.6% |
Silver production ounces (000's) |
1,355 |
1,498 |
1,528 |
1,523 |
1,391 |
- Recovery rates and average silver grades remained consistent with recent quarters.
- San Bartolomé reduced mill throughput for ten days during the quarter to implement tailings facility improvements.
Rochester, Nevada |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
|
Tons placed |
3,640,861 |
3,135,304 |
2,678,906 |
2,457,423 |
2,439,757 |
|
Average silver grade (oz/t) |
0.59 |
0.56 |
0.53 |
0.58 |
0.52 |
|
Average gold grade (oz/t) |
0.003 |
0.002 |
0.003 |
0.003 |
0.003 |
|
Silver production ounces (000's) |
750 |
712 |
580 |
844 |
648 |
|
Gold production ounces |
8,192 |
7,890 |
4,821 |
9,404 |
8,742 |
|
Silver equivalent production ounces (000's) |
1,242 |
1,185 |
869 |
1,408 |
1,173 |
- Rochester achieved higher crushing rates and placed a larger number of tons on the leach pad than in recent quarters. The Company expects this will lead to higher silver and gold production throughout the remainder of the year.
- The daily silver production rate averaged approximately 8,337 ounces during the first quarter, and has exceeded 13,000 ounces in early April.
Kensington, Alaska |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Tons milled |
159,697 |
149,246 |
147,427 |
127,987 |
129,057 |
Average gold grade (oz/t) |
0.17 |
0.26 |
0.20 |
0.18 |
0.20 |
Average recovery rate |
94.5% |
96.0% |
96.5% |
98.2% |
96.2% |
Gold production ounces |
25,428 |
37,404 |
29,049 |
23,162 |
25,206 |
- In order to maximize cash flow, Kensington's mine plan for 2014 reflects higher mining rates at gold grades more in-line with the average reserve grade of 0.163 ounces per ton.
- Mill throughput averaged nearly 1,800 tons per day during the quarter, which is a significant increase compared to prior quarters.
Endeavor, Australia |
1Q 2014 |
4Q 2013 |
3Q 2013 |
2Q 2013 |
1Q 2013 |
Silver production ounces (000's) |
168 |
135 |
162 |
221 |
150 |
- Silver production received from the Company’s investment in the Endeavor lead-zinc-silver mine in Australia increased significantly in the first quarter.
- Coeur owns all silver production and reserves at Endeavor up to a total of 20.0 million payable ounces. As of March 31, 2014, Endeavor had produced 5.0 million payable ounces, or 25% of the total, since Coeur initially acquired this interest in 2005.
2014 Production Guidance |
Silver (000's) |
Gold |
Silver Equivalent Ounces (000's) |
Palmarejo, Mexico |
6,700 - 7,200 |
87,000 - 95,000 |
11,920 - 12,900 |
San Bartolomé, Bolivia |
5,700 - 6,000 |
- |
5,700 - 6,000 |
Rochester, Nevada |
4,100 - 4,400 |
28,000 - 31,000 |
5,780 - 6,260 |
Endeavor, Australia |
500 - 600 |
- |
500 - 600 |
Kensington, Alaska |
- |
105,000 - 112,000 |
6,300 - 6,720 |
Total |
17,000 - 18,200 |
220,000 - 238,000 |
30,200 - 32,480 |
- The Company is maintaining its 2014 production guidance, which is summarized above.
Financial Results and Conference Call
Coeur will report its full operational and financial results for the first quarter on May 7, 2014 after the New York Stock Exchange closes for trading. There will be a conference call on May 8, 2014 at 11:00 a.m. Eastern time.
Dial-In Numbers:
(877) 768-0708 (US and Canada)
(660) 422-4718 (International)
Conference ID: 255 26 141
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, Exploration; Joe Phillips, Senior Vice President and Chief Development Officer; and other members of management.
A replay of the call will be available through May 22, 2014.
Replay numbers:
(855) 859-2056 (US and Canada)
(404) 537-3406 (International)