Coeur d'Alene Mines - Increasing Production & Cash Flow

5 Silver, 1 Gold mine(s) operating - Reserves of: Silver 500m oz, Gold 5m oz

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Message: Coeur Reports First Quarter Production Results

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)

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