Coeur Mining (CDE) announced Q4 production of 3.5 million ounces of silver, 99,460 ounces of gold

Coeur Mining, Inc. (NYSE: CDE) today announced fourth quarter 2018 production of 3.5 million ounces of silver, 99,460 ounces of gold, 3.1 million pounds of zinc and 1.7 million pounds of lead, or 9.8 million silver equivalent1 ounces (12.2 million ounces based on average spot prices during the fourth quarter).2 Silver and gold production during the fourth quarter increased 19% and 12%, respectively, compared to the prior quarter. Strong results were driven by increased production from Palmarejo and Rochester as well as significantly higher production from Kensington.

Full-year 2018 production included 12.9 million ounces of silver, 367,728 ounces of gold, 6.8 million pounds of zinc and 3.9 million pounds of lead, or 35.6 million silver equivalent1 ounces (43.4 million ounces based on average spot prices for the year).2 Silver production increased 8% during 2018 driven by strong performance at Palmarejo and Rochester. Gold production decreased 4% over the same period as positive results from Palmarejo and Rochester were outweighed by lower production at Wharf.

Metal sales for the fourth quarter totaled 3.1 million ounces of silver, 87,514 ounces of gold, 2.6 million pounds of zinc and 1.4 million pounds of lead, or 8.5 million silver equivalent1 ounces (10.7 million ounces based on average spot prices during the quarter).2 Full-year 2018 metal sales totaled 12.4 million ounces of silver, 358,731 ounces of gold, 4.8 million pounds of zinc and 3.1 million pounds of lead, or 34.3 million silver equivalent1 ounces (41.9 million ounces based on average spot prices for the year).2 Metal sales reflect the impact of the bankruptcy filing of Republic Metals Corp. ("RMC"), a U.S.-based precious metals refiner, that occurred in early November. Approximately 0.4 million ounces and 6,500 ounces of the Company's silver and gold, respectively, were affected by RMC's Chapter 11 filing.

The Company expects to issue full-year 2019 production and cost guidance in conjunction with the release of its fourth quarter and full-year 2018 financial results on February 20, 2019.

Quarterly Production Results

Note: On February 28, 2018, Coeur divested the San Bartolomé mine through the sale of its 100%-owned Bolivian subsidiary. As a result, San Bartolomé is excluded from consolidating operating statistics for all periods presented unless otherwise noted.

Operations

Fourth quarter and full-year 2018 production and sales highlights for each of Coeur's operations are provided below.

Palmarejo, Mexico

• Fourth quarter gold and silver production increased 12% and 23%, respectively, to 31,239 and 1.9 million ounces compared to the prior quarter. Silver equivalent1 production was 3.8 million ounces (4.5 million ounces based on average spot prices during the fourth quarter), 17% higher compared to the third quarter. Year-over-year, gold and silver production increased 1% and 4%, respectively
• Higher production during the quarter was driven largely by increased throughput as the Company processed ore that was initially scheduled to be processed in the third quarter. This contributed to a one-time increase in reported recoveries due to a reduction of in-circuit inventory; metallurgical recoveries were relatively flat during the quarter
• Underground development at the La Nación deposit, located between the Independencia and Guadalupe underground mines, remains on-schedule. Production is expected to commence in the second half of 2019, providing anticipated additional mill feed to supplement existing ore sources
• Approximately 23% of gold sales in the fourth quarter, or 5,458 ounces, were sold under Palmarejo's gold stream agreement at a price of $800 per ounce. For the full year, a total of 35,807 ounces of gold (31% of Palmarejo's gold sales), were sold under this agreement

Rochester, Nevada

• Silver and gold production during the fourth quarter increased 14% and 8%, respectively, to 1.5 million and 15,926 ounces compared to the prior quarter. Silver equivalent1 production during the period was 12% higher quarter-over-quarter at 2.4 million ounces (2.8 million ounces based on average spot prices during quarter)
• For the full year, silver production was 5.0 million ounces while gold production was 54,388 ounces, both 7% higher than 2017, with silver equivalent1 production totaling 8.3 million ounces (9.4 million ounces based on average spot prices)
• Production was positively impacted by the continued strong performance of both the Stage IV and Stage III leach pads. These positive results outweighed the impact of lower crushing rates during the fourth quarter, which were anticipated following the decommissioning of the 15,000 ton per day ("tpd") in-pit crusher
• Installation of an initial high-pressure grinding roll ("HPGR") unit remains on schedule and budget. The concrete foundation for the HPGR is complete and structural erection is scheduled for the end of January. Ore production utilizing the HPGR unit is anticipated to commence in the second quarter, with silver recoveries expected to increase beginning mid-year
• Installation of the HPGR unit and a new secondary crusher is expected to result in higher production during the second half of the year compared to the first half

Wharf, South Dakota

• Gold production declined 13% quarter-over-quarter to 16,960 ounces in the fourth quarter. This was primarily due to the placement of lower grade ore during the quarter as well as temporary percolation issues resulting in slower-than-anticipated recoveries
• For the full year, gold production decreased 19% to 76,840 ounces as a result of unplanned weather-related downtime in the third quarter and timing of leach pad recoveries
• Tons placed for the full year reached 4.9 million tons, up from 4.6 million in 2017 and 4.3 million in 2016
• Production in 2019 is expected to return to levels comparable to prior quarters

Kensington, Alaska

• Commercial production at Jualin was declared on December 1, 2018. The figures shown in the table above include pre-commercial production
• Fourth quarter gold production of 35,335 ounces represented a 32% increase quarter-over-quarter and was slightly higher compared to the same period the prior year, largely driven by additional production from Jualin
• Approximately 23,000 tons of development ore and 3,000 tons of stope ore were mined from Jualin during the fourth quarter, yielding production (inclusive of pre-commercial) of nearly 10,500 ounces of gold at a grade of 0.40 ounces per ton, demonstrating the impact that high-grade mill feed can have on the overall production profile of Kensington
• Full-year gold production of 113,778 ounces was relatively flat compared to 2017

Silvertip, British Columbia

• Silvertip achieved commercial production on September 1, 2018. The figures shown in the above table include pre-commercial production
• On December 27, 2018, the Company announced an initial reserve, which was used to support a reserve-based mine plan and economic analysis, as well as an updated resource. The Company will file a technical report in accordance with National Instrument 43-101 by February 10, 2019
• Production of silver, zinc and lead during the fourth quarter increased 48%, 41% and 42%, respectively, compared to the prior quarter. The increases were primarily driven by comparatively higher mill throughput rates compared to previous quarters
• Although throughput has been lower than originally anticipated, the Company continues progressing towards its target of 1,100 tpd (1,000 metric tonnes per day ("mtpd")) by the end of the first quarter. Month-to-date in January, throughput rates have averaged 695 tpd (631 mtpd)
• Recovery rates continued to improve throughout the fourth quarter, albeit remaining at lower than targeted levels. Recovery rates are expected to trend higher as mill consistency improves and the flotation circuit is optimized. Average metal grade is also expected to improve as depleted ore from historic stockpiles is now being replaced with newly-mined underground material
• As operations continue to ramp up, the Company remains focused on improvements in four key areas: (i) mill projects targeting higher availability, (ii) maintenance procedures and systems, (iii) supply chain and procurement, and (iv) employee training and development
• Construction on the 220-person camp facility was substantially completed by the end of the fourth quarter, with personnel expected to begin moving in during the first quarter of 2019
• The Company remains on track to receive approval for the permit amendment application that will allow for a sustained mining and milling rate of 1,100 tpd (1,000 mtpd) on a year-round basis in early 2019

2018 Production Results

Coeur's 2018 production results, along with its most recent production guidance published October 31, 2018, are shown below.

2018 Production Results2

2018 Production Guidance3

Financial Results and Conference Call

Coeur will report its fourth quarter and full-year 2018 financial results on February 20, 2019 after the New York Stock Exchange closes for trading. There will be a conference call on February 21, 2019 at 11:00 a.m. Eastern Time.

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