Coeur Mining (CDE) Reports Q3 Production Results

October 6, 2016 5:45 PM EDT

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today announced third quarter production of 3.5 million ounces of silver and 84,871 ounces of gold, or 8.6 million silver equivalent1 ounces. Coeur is raising its 2016 production guidance to 34.4 - 37.0 million silver equivalent1 ounces from 33.8 - 36.8 million silver equivalent1 ounces.

Quarterly Production Results (Graphic: Business Wire)

Third quarter production highlights for each of Coeur's operations are provided below.

Palmarejo, Mexico 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015
Underground Operations:
Tons mined 253,681 283,971 215,642 189,383 190,399
Average silver grade (oz/t) 3.96 5.40 4.21 3.96 4.11
Average gold grade (oz/t) 0.08 0.08 0.07 0.06 0.10
Surface Operations:
Tons mined 1,695 35,211 102,018 247,071
Average silver grade (oz/t) 7.77 4.18 3.86 3.56
Average gold grade (oz/t) 0.07 0.04 0.03 0.03
Processing:
Total tons milled 274,644 270,142 246,533 301,274 427,635
Average recovery rate – Ag 85.5% 89.5% 89.1% 95.4% 87.9%
Average recovery rate – Au 77.7% 86.4% 92.1% 88.8% 84.7%
Silver production ounces (000's) 933 1,307 933 1,126 1,422
Gold production ounces 16,608 18,731 14,668 14,326 22,974
Silver-equivalent1 production ounces (000's) 1,930 2,431 1,813 1,985 2,800
  • Transition to lower-tonnage, higher-grade, higher-margin underground operations is progressing on schedule with Guadalupe mining nearly 2,300 tons per day during the quarter, surpassing its target mining rate of 2,200 tons per day
  • Development of Independencia remains on-track to achieve a mining rate of 1,000 tons per day by year-end
  • Silver and gold production decreased as a result of the installation of a new Merrill Crowe processing circuit during the quarter. Recovery rates and grades are expected to increase in the fourth quarter
  • Limited mining of the legacy underground area has extended into the fourth quarter
  • Increasing full-year 2016 production guidance to 4.1 - 4.6 million silver ounces from 3.9 - 4.4 million silver ounces and 70,000 - 75,000 gold ounces from 67,000 - 72,000 gold ounces
Rochester, Nevada 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015
Tons placed 4,901,039 6,402,013 4,374,459 4,411,590 4,128,868
Average silver grade (oz/t) 0.54 0.54 0.64 0.60 0.59
Average gold grade (oz/t) 0.003 0.003 0.004 0.003 0.003
Silver production ounces (000's) 1,161 1,197 929 1,107 1,086
Gold production ounces 12,120 13,940 10,460 11,564 10,892
Silver equivalent1 production ounces (000's) 1,888 2,033 1,557 1,800 1,740
  • Silver equivalent1 production decreased 7% quarter-over-quarter due to longer-than-expected recovery time from the Stage III leach pad
  • Crushing rates remained strong while tons placed moderated in the third quarter as a result of a lower portion of run-of-mine material placed
  • Construction of the Stage IV leach pad expansion commenced in July 2016 and is expected to be complete in mid-2017
  • Revising full-year 2016 silver production guidance to 4.5 - 5.0 million ounces from 4.8 - 5.3 million ounces and maintaining gold production guidance of 48,000 - 55,000 ounces
Kensington, Alaska 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015
Tons milled 140,322 157,117 159,360 159,666 165,198
Average gold grade (oz/t) 0.20 0.22 0.21 0.22 0.19
Average recovery rate 94.8% 94.1% 95.8% 96.0% 93.9%
Gold production ounces 26,459 32,210 31,974 33,713 28,799
  • Gold production decreased 18% quarter-over-quarter due to mill downtime at the end of the quarter relating to a blocked tailings line. The blockage has been cleared and the mill has resumed operations at full capacity
  • Development of the Jualin decline continues to advance with initial production expected in the second half of 2017
  • Raising the low-end of full-year 2016 production guidance to 120,000 - 125,000 gold ounces from 115,000 - 125,000 gold ounces
Wharf, South Dakota 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015
Tons placed 1,199,008 915,631 974,663 1,147,130 1,149,744
Average gold grade (oz/t) 0.033 0.037 0.031 0.032 0.035
Average plant recovery rate - Au 95.5% 89.6% 96.6% 97.3% 92.8%
Gold production ounces 29,684 27,846 20,970 31,947 23,104
Silver production ounces (000's) 25 35 13 18 19
Gold equivalent1 production ounces 30,106 28,433 21,186 32,231 23,427
  • Gold equivalent1 production remained strong during the third quarter, increasing 6% over the second quarter largely due to a 31% increase in tons placed as well as a return to higher plant recovery rates
  • Increasing full-year 2016 production guidance to 95,000 - 100,000 gold ounces from 90,000 - 95,000 gold ounces
San Bartolomé, Bolivia 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015
Tons milled 450,409 440,441 407,806 475,695 373,201
Average silver grade (oz/t) 3.43 3.79 3.64 3.84 3.76
Average recovery rate 88.7% 87.4% 93.1% 84.9% 84.0%
Silver production ounces (000's) 1,370 1,458 1,382 1,550 1,178
  • Silver production decreased 6% quarter-over-quarter. While civil unrest in Bolivia during the quarter did not impact mining operations, it hindered shipments of purchased ore to San Bartolomé's processing facilities. This led to a lower contribution of 27% of purchased ore to total production, down from approximately one-third in the second quarter
  • Revising full-year 2016 production guidance to 5.5 - 5.8 million silver ounces from 5.8 - 6.1 million silver ounces

Coeur Capital, Inc.

Endeavor, Australia 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015
Silver production ounces (000's) 56 33 115 171 121
  • Silver production received from the Company's silver stream on the Endeavor mine in Australia remained at decreased levels following a curtailment of production by the operator earlier this year due to lower lead and zinc prices
  • Coeur is increasing its revised 2016 production guidance for Endeavor to 215,000 - 235,000 silver ounces from 175,000 - 200,000 silver ounces

2016 Production Outlook

Coeur's 2016 silver and gold production guidance has been revised as shown below.

(silver and silver equivalent ounces in thousands) Silver Gold Silver Equivalent1
Palmarejo 4,100 - 4,600 70,000 - 75,000 8,300 - 9,100
Rochester 4,500 - 5,000 48,000 - 55,000 7,380 - 8,300
San Bartolomé 5,500 - 5,800 5,500 - 5,800
Endeavor 215 - 235 215 - 235
Kensington 120,000 - 125,000 7,200 - 7,500
Wharf 80 - 100 95,000 - 100,000 5,780 - 6,100
Total 14,395 - 15,735 333,000 - 355,000 34,375 - 37,035

Financial Results and Conference Call

Coeur will report its full operational and financial results for third quarter 2016 on October 26, 2016 after the New York Stock Exchange closes for trading. There will be a conference call on October 27, 2016 at 11:00 a.m. Eastern time.

Dial-In Numbers: (855) 560-2581 (US)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID: Coeur Mining



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Corporate News, Guidance

Related Entities

Earnings, Definitive Agreement

Add Your Comment