Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today announced fourth quarter 2019 production of 94,716 ounces of gold, 3.2 million ounces of silver, 3.9 million pounds of zinc and 4.0 million pounds of lead. Full-year 2019 production totaled 359,418 ounces of gold, 11.7 million ounces of silver, 17.1 million pounds of zinc and 16.6 million pounds of lead.
Metal sales for the fourth quarter included 95,532 ounces of gold, 3.2 million ounces of silver, 4.1 million pounds of zinc and 4.2 million pounds of lead. For the full year, metal sales totaled 367,650 ounces of gold, 11.9 million ounces of silver, 18.2 million pounds of zinc and 16.5 million pounds of lead.
The Company expects to issue full-year 2020 production and cost guidance in conjunction with the release of its fourth quarter and full-year 2019 financial results on February 19, 2020.
Quarterly Production Results
"Coeur's operations delivered solid gold production in 2019, highlighted by a strong second half of the year," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "Palmarejo was our best performing operation last year, while Kensington's gold production increased 12% year-over-year. Wharf's gold production was 58% higher in the second half of 2019 compared to the first half, leading to a 10% year-over-year production increase."
"Rochester's fourth quarter gold production was 35% higher than the prior quarter, but lower crushing rates led to full-year silver and gold production below expectations," continued Mr. Krebs. "Importantly, we continue to see encouraging results that support the investment in high-pressure grinding roll ("HPGR") technology to accelerate silver recovery rates and enhance the mine's overall economics."
"At our Silvertip operation, we continued to execute our plans to improve mill availability and further stabilize the operation during the fourth quarter. Although fourth quarter results were below expectations, we have begun to see tangible results from these efforts and remain confident in the long-term potential of this high-grade and highly prospective deposit."
"Looking ahead to 2020, our key priorities are to advance our efforts to further expand Rochester, continue to stabilize and begin to optimize our Silvertip operation, invest in exploration at our most prospective sites including the Sterling and Crown projects in southern Nevada, and deliver consistent operating results that generate positive free cash flow and lower overall costs," concluded Mr. Krebs.
Operations
Fourth quarter and full-year 2019 production and sales highlights for each of Coeur's operations are provided below.
Palmarejo, Mexico
|
2019 |
4Q 2019 |
3Q 2019 |
2Q 2019 |
1Q 2019 |
2018 |
4Q 2018 |
Tons milled |
1,755,957 |
486,779 |
442,464 |
447,727 |
378,987 |
1,382,471 |
378,389 |
Average gold grade (oz/t) |
0.08 |
0.07 |
0.09 |
0.07 |
0.07 |
0.10 |
0.08 |
Average silver grade (oz/t) |
4.85 |
5.11 |
4.88 |
4.74 |
4.64 |
6.49 |
5.96 |
Average recovery rate ? Au |
84.3% |
84.9% |
81.7% |
87.7% |
83.4% |
88.9% |
97.6% |
Average recovery rate ? Ag |
79.3% |
81.7% |
79.6% |
81.8% |
72.8% |
83.8% |
84.0% |
Ounces Produced |
|
|
|
|
|
|
|
Gold |
111,932 |
28,702 |
31,779 |
28,246 |
23,205 |
122,722 |
31,239 |
Silver (000's) |
6,762 |
2,029 |
1,720 |
1,735 |
1,278 |
7,516 |
1,893 |
Ounces Sold |
|
|
|
|
|
|
|
Gold |
116,104 |
27,952 |
32,731 |
28,027 |
27,394 |
115,592 |
23,667 |
Silver (000's) |
6,841 |
1,980 |
1,747 |
1,709 |
1,405 |
7,229 |
1,534 |
Average realized price per gold ounce |
$1,220 |
$1,238 |
$1,269 |
$1,210 |
$1,154 |
$1,140 |
$1,148 |
Average realized price per silver ounce |
$16.23 |
$17.28 |
$17.05 |
$14.86 |
$15.39 |
$15.77 |
$14.57 |
Rochester, Nevada
|
2019 |
4Q 2019 |
3Q 2019 |
2Q 2019 |
1Q 2019 |
2018 |
4Q 2018 |
|
Tons placed |
10,582,518 |
2,612,319 |
|
2,516,353 |
2,786,287 |
2,667,559 |
16,169,807 |
3,674,566 |
Average silver grade (oz/t) |
0.46 |
0.47 |
0.43 |
0.45 |
0.46 |
0.52 |
0.46 |
|
Average gold grade (oz/t) |
0.003 |
0.003 |
0.004 |
0.003 |
0.003 |
0.004 |
0.004 |
|
Ounces Produced |
|
|
|
|
|
|
|
|
Silver (000's) |
3,761 |
848 |
982 |
971 |
960 |
5,038 |
1,466 |
|
Gold |
35,400 |
10,634 |
7,901 |
8,609 |
8,256 |
54,388 |
15,926 |
|
Ounces Sold |
|
|
|
|
|
|
|
|
Silver (000's) |
3,845 |
932 |
951 |
962 |
1,000 |
4,855 |
1,391 |
|
Gold |
36,052 |
11,248 |
7,651 |
8,642 |
8,511 |
52,789 |
15,339 |
|
Average realized price per silver ounce |
$16.07 |
$17.22 |
$17.02 |
$14.83 |
$15.31 |
$15.50 |
$14.53 |
|
Average realized price per gold ounce |
$1,393 |
$1,484 |
$1,476 |
$1,295 |
$1,299 |
$1,261 |
$1,234 |
Kensington, Alaska
|
2019 |
4Q 2019 |
3Q 2019 |
2Q 2019 |
1Q 2019 |
2018 |
4Q 2018 |
Tons milled |
658,378 |
167,061 |
166,475 |
160,510 |
164,332 |
661,731 |
166,310 |
Average gold grade (oz/t) |
0.21 |
0.20 |
0.22 |
0.23 |
0.20 |
0.19 |
0.23 |
Average recovery rate |
91.0% |
87.2% |
93.2% |
93.0% |
90.2% |
93.0% |
93.0% |
Gold ounces produced |
127,914 |
29,736 |
34,156 |
34,049 |
29,973 |
113,778 |
35,335 |
Gold ounces sold |
130,495 |
29,293 |
35,452 |
34,415 |
31,335 |
114,778 |
33,202 |
Average realized price per gold ounce |
$1,388 |
$1,469 |
$1,485 |
$1,312 |
$1,286 |
$1,247 |
$1,246 |
Wharf, South Dakota
|
2019 |
4Q 2019 |
3Q 2019 |
2Q 2019 |
1Q 2019 |
2018 |
4Q 2018 |
Tons placed |
4,613,359 |
1,100,393 |
1,503,021 |
919,435 |
1,090,510 |
4,923,774 |
1,644,168 |
Average gold grade (oz/t) |
0.023 |
0.023 |
0.027 |
0.023 |
0.020 |
0.022 |
0.020 |
Ounces produced |
|
|
|
|
|
|
|
Gold |
84,172 |
25,644 |
25,946 |
15,680 |
16,902 |
76,840 |
16,960 |
Silver (000's) |
63 |
20 |
18 |
12 |
13 |
51 |
13 |
Ounces sold |
|
|
|
|
|
|
|
Gold |
84,999 |
27,039 |
24,573 |
15,301 |
18,086 |
75,572 |
15,306 |
Silver (000's) |
64 |
21 |
17 |
12 |
14 |
48 |
11 |
Average realized price per gold ounce |
$1,416 |
$1,482 |
$1,481 |
$1,311 |
$1,317 |
$1,267 |
$1,247 |
Silvertip, British Columbia
|
2019 |
4Q 2019 |
3Q 2019 |
2Q 2019 |
1Q 2019 |
2018 |
4Q 2018 |
Tons milled |
236,547 |
61,662 |
53,145 |
59,689 |
62,051 |
86,127 |
38,802 |
Average silver grade (oz/t) |
6.84 |
6.97 |
7.54 |
7.48 |
5.50 |
8.04 |
6.06 |
Average zinc grade (%) |
7.1% |
7.5% |
7.6% |
7.5% |
5.9% |
6.9% |
5.8% |
Average lead grade (%) |
4.8% |
4.9% |
5.4% |
5.4% |
3.7% |
5.0% |
3.9% |
Average recovery rate ? Ag |
71.8% |
65.1% |
74.8% |
77.0% |
69.9% |
49.1% |
60.5% |
Average recovery rate ? Zn |
50.8% |
42.0% |
51.7% |
59.1% |
50.5% |
56.7% |
69.1% |
Average recovery rate ? Pb |
72.6% |
66.4% |
78.4% |
77.3% |
66.8% |
45.1% |
54.7% |
Produced |
|
|
|
|
|
|
|
Silver (000's ounces) |
1,162 |
279 |
300 |
344 |
239 |
340 |
142 |
Zinc (000's lbs) |
17,103 |
3,865 |
4,197 |
5,322 |
3,719 |
6,781 |
3,083 |
Lead (000's lbs) |
16,556 |
4,021 |
4,478 |
4,980 |
3,077 |
3,913 |
1,658 |
Sold |
|
|
|
|
|
|
|
Silver (000's ounces) |
1,164 |
294 |
290 |
365 |
215 |
268 |
127 |
Zinc (000's lbs) |
18,155 |
4,053 |
4,076 |
5,303 |
4,723 |
4,793 |
2,552 |
Lead (000's lbs) |
16,488 |
4,223 |
4,331 |
5,186 |
2,748 |
3,089 |
1,444 |
Average realized price per silver ounce, gross |
$16.69 |
16.61 |
$19.94 |
$15.18 |
$14.98 |
$15.00 |
$15.54 |
Treatment and refining charges per silver ounce |
$1.60 |
$2.34 |
$1.63 |
$1.18 |
$1.24 |
$0.84 |
$1.38 |
Average realized price per silver ounce, net |
$15.09 |
14.27 |
$18.31 |
$14.00 |
$13.74 |
$14.16 |
$14.16 |
Average realized price per zinc pound, gross |
$1.06 |
$1.04 |
$0.86 |
$0.83 |
$1.50 |
$1.12 |
$1.07 |
Treatment and refining charges per zinc pound |
$0.35 |
$0.42 |
$0.36 |
$0.34 |
$0.31 |
$0.29 |
$0.24 |
Average realized price per zinc pound, net |
$0.71 |
$0.62 |
$0.50 |
$0.49 |
$1.19 |
$0.83 |
$0.83 |
Average realized price per lead pound, gross |
$0.91 |
$0.89 |
$0.98 |
$0.87 |
$0.92 |
$0.90 |
$0.87 |
Treatment and refining charges per lead pound |
$0.07 |
$0.11 |
$0.06 |
$0.05 |
$0.06 |
$0.10 |
$0.07 |
Average realized price per lead pound, net |
$0.84 |
$0.78 |
$0.92 |
$0.82 |
$0.86 |
$0.80 |
$0.80 |
2019 Production Results and Guidance
Coeur's 2019 production results, along with its most recent production guidance published on November 4, 2019, are shown below.
2019 Production Results
|
Gold |
Silver |
Zinc |
Lead |
|
(oz) |
(K oz) |
(K lbs) |
(K lbs) |
Palmarejo |
111,932 |
6,762 |
? |
? |
Rochester |
35,400 |
3,761 |
? |
? |
Kensington |
127,914 |
? |
? |
? |
Wharf |
84,172 |
63 |
? |
? |
Silvertip |
? |
1,162 |
17,103 |
16,556 |
Total |
359,418 |
11,749 |
17,103 |
16,556 |
2019 Production Guidance
|
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 fourth quarter and full-year 2019 financial results on February 19, 2020 after the New York Stock Exchange closes for trading. There will be a conference call on February 20, 2020 at 10:00 a.m. Eastern Time.
Dial-In Numbers: |
(855) 560-2581 (U.S.) |
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(855) 669-9657 (Canada) |
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|
|
(412) 542-4166 (International) |
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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 March 5, 2020.
Replay numbers: |
|
(877) 344-7529 (U.S.) |
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(855) 669-9658 (Canada) |
|||||||
|
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(412) 317-0088 (International) |
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Conference ID: |
|
101 37 743 |
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 2019 priorities, anticipated production, recoveries, mining rates, throughput, and operations at Palmarejo, Rochester, Kensington, Wharf and Silvertip, including the impact of the new thickener at Palmarejo, the new crushing circuit, expansion plans and timing of filing (and content of) a technical report at Rochester, and improved operational performance and impairment analysis at 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 or higher treatment and refining charge 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
|
|
2019 |
|
4Q 2019 |
|
3Q 2019 |
|
2Q 2019 |
|
1Q 2019 |
|
2018 |
|
4Q 2018 |
||||||||||||||
Average Gold Spot Price Per Ounce |
$ |
1,393 |
|
$ |
1,481 |
|
$ |
1,472 |
|
$ |
1,309 |
|
$ |
1,304 |
|
$ |
1,268 |
|
$ |
1,226 |
|
|||||||
Average Silver Spot Price Per Ounce |
$ |
16.21 |
|
$ |
17.32 |
|
$ |
16.98 |
|
$ |
14.88 |
|
$ |
15.57 |
|
$ |
15.71 |
|
$ |
14.54 |
|
|||||||
Average Zinc Spot Price Per Pound |
$ |
1.16 |
|
$ |
1.08 |
|
$ |
1.07 |
|
$ |
1.25 |
|
$ |
1.23 |
|
$ |
1.33 |
|
$ |
1.19 |
|
|||||||
Average Lead Spot Price Per Pound |
$ |
0.91 |
|
$ |
0.93 |
|
$ |
0.92 |
|
$ |
0.85 |
|
$ |
0.92 |
|
$ |
1.02 |
|
$ |
0.89 |
|