Coeur Reports Third Quarter 2018 Production and Sales Results
CHICAGO--(BUSINESS WIRE)--Oct 9, 2018--Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) today announced third quarter 2018 production of 2.9 million ounces of silver, 88,833 ounces of gold, 2.2 million pounds of zinc and 1.2 million pounds of lead, or 8.5 million silver equivalent 1 ounces (10.4 million ounces based on average spot prices during the third quarter) 3. Metal sales for the quarter were 3.0 million ounces of silver, 89,609 ounces of gold, 1.8 million pounds of zinc and 1.6 million pounds of lead, or 8.5 million silver equivalent 1 ounces (10.4 million ounces based on average spot prices during the third quarter) 3.
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Quarterly Production Results (Graphic: Business Wire)
As disclosed on September 4, 2018, the Company expects to produce 36.1 - 39.5 million silver equivalent 1 ounces (44.0 - 48.0 million ounces based on average spot prices during the third quarter) in 2018, consisting of 13.0 - 14.3 million silver ounces, 363,000 - 382,000 gold ounces, 13.0 - 23.0 million pounds of zinc and 11.0 - 18.0 million pounds of lead.
Third quarter 2018 production and sales highlights for each of Coeur’s operations are provided below.
Palmarejo, MexicoThird quarter silver equivalent 1 production was 3.2 million ounces (3.8 million ounces based on average spot prices during the third quarter), 21% lower compared to the prior quarter, with silver production 25% lower and gold production 17% lower. Year-over-year, silver and gold production decreased 19% and 4%, respectively Production was impacted by (i) the temporary suspension of mining activities relating to fatalities that occurred during the quarter, (ii) supply chain disruptions stemming from local road blockades that temporarily interrupted the delivery of certain mining consumables, and (iii) a weather-related interruption that impacted the process plant The modest decline in silver and gold grades was due to the mining of lower grade stopes, primarily at Independencia East. Gold grades are expected to decline in the fourth quarter; however, mining rates are anticipated to return to steady-state levels, partially offsetting the impact of the lower expected grades Development towards the La Nación deposit, located between the Independencia and Guadalupe underground mines, remains on-schedule and is expected to commence production in 2019, providing anticipated additional high quality mill feed to supplement existing ore sources Approximately 38% of gold sales in the third quarter, or 10,610 ounces, were sold under Palmarejo’s gold stream agreement at a price of $800 per ounce. The increase was due to mine sequencing; fourth quarter gold sales under the stream agreement are expected to remain at similar levels The Company is maintaining Palmarejo’s full-year 2018 production guidance of 7.5 - 7.9 million ounces of silver and 115,000 - 120,000 ounces of gold, or 14.4 - 15.1 million silver equivalent 1 ounces (16.8 - 17.6 million ounces based on average spot prices during the third quarter)
Rochester, NevadaSilver equivalent 1 production during the period was 17% higher quarter-over-quarter at 2.2 million ounces (2.5 million ounces based on average spot prices during the third quarter). Silver production was 1.3 million ounces and gold production was 14,702 ounces, 15% and 20% higher, respectively, compared to the prior quarter Production growth was driven primarily by strong pad performance from the Stage III leach pad and continued steady performance of the Stage IV leach pad. Stage III leach pad performance was driven by leaching activities on the periphery of the pad that had not been processed previously. These trends are expected to continue in the fourth quarter Installation of an initial high-pressure grinding roll (“HPGR”) remains on schedule for the first quarter of 2019 with silver recoveries expected to improve beginning as early as the second quarter of next year. Decommissioning of the 15,000 tons per day (“tpd”) crusher is currently underway and is expected to result in fewer tons crushed and lower operating expenses in the fourth quarter The Company is maintaining full-year 2018 production guidance of 4.8 - 5.2 million ounces of silver and 48,000 - 52,000 ounces of gold, or 7.7 - 8.3 million silver equivalent 1 ounces (8.7 - 9.4 million ounces based on average spot prices during the third quarter)
Wharf, South DakotaGold production declined 14% quarter-over-quarter to 19,646 ounces partially as a result of unplanned weather-related downtime and timing of leach pad recoveries Mining and crushing rates during the fourth quarter are expected to increase while average gold grade is expected to remain relatively constant The Company is maintaining full-year 2018 production guidance of 85,000 - 90,000 ounces of gold
Kensington, AlaskaThird quarter gold production, inclusive of pre-commercial production from Jualin, increased 5% quarter-over-quarter and declined 3% year-over-year to 26,809 ounces At Jualin, the Company mined approximately 4,400 tons of development ore late in the quarter, which yielded pre-commercial production of nearly 2,100 ounces of gold at a grade of 0.48 ounces per ton (“oz/t”). Mining rates at Jualin are expected to climb throughout the fourth quarter leading to higher overall production levels The Company is maintaining full-year 2018 production guidance of 115,000 - 120,000 ounces of gold 4
Silvertip, British Columbia
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