Coeur Reports Third Quarter Production Results and Reaffirms Full-Year Production Guidance

Kensington's gold production increased 25% versus prior quarter

Business Wire

CHICAGO--(BUSINESS WIRE)--

Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE:CDE, TSX:CDM) announced it produced 4.2 million ounces of silver and 63,763 ounces of gold during the third quarter of 2013. These production levels represent a decrease of 10% for silver and an increase of 5% for gold compared to the second quarter. Production at both Palmarejo and San Bartolomé were consistent with the second quarter. Kensington's gold production increased 25% over the second quarter of 2013 due to an increase in tons milled and higher gold grades. Rochester's production during the quarter was negatively impacted by the completion of several expansion-related projects, which are expected to lead to significantly higher production levels in the fourth quarter and next year.

Operational Highlights: Production

(silver ounces in thousands)     3Q 2013     2Q 2013     Quarter Variance
      Silver     Gold     Silver     Gold     Silver     Gold
Palmarejo 1,918     29,893     2,045     28,191    

(6

)%

    6 %
San Bartolomé 1,528 1,523 0 % n.a.
Rochester 580 4,821 844 9,404 (31 )% (49 )%
Kensington 29,049 23,162 n.a. 25 %
Endeavor     162         221          

(27

)%

    n.a.
Total     4,188     63,763     4,633       60,757     (10 )%     5 %

2013 Outlook

The Company reaffirmed its full-year 2013 consolidated production guidance of 18.0-19.1 million ounces of silver and 250,000-258,000 ounces of gold.

2013 Production Outlook

(silver ounces in thousands)     Country     Silver     Gold
Palmarejo     Mexico     7,700 - 8,300     108,000 - 110,000
San Bartolomé Bolivia 5,900 - 6,000
Rochester Nevada, USA 3,700 - 4,000 34,000 - 36,000
Kensington Alaska, USA 108,000 - 112,000
Endeavor     Australia     700 - 800    
Total           18,000 - 19,100     250,000 - 258,000

Mitchell Krebs, President and Chief Executive Officer, commented, “Our third quarter operating performance demonstrates further consistency at Palmarejo, San Bartolomé, and Kensington, and represents a critical turning point for Rochester. The completion of recent capital investments in the existing heap leach pads and in the operation's crushing capacity, along with the substantial increase in reserves announced last month, support the high-return, long-term growth profile we expect to achieve at Rochester. Maintaining our full-year total production guidance within the range provided at the beginning of 2013 reflects our enhanced technical and operating capabilities and our ability to better execute against our plan.”

Coeur will report its full third quarter operating and financial results on November 6, 2013 after the New York and Toronto stock exchanges close for trading. There will be a conference call on November 7, 2013 at 11:00 a.m. Eastern time.

Dial-In Numbers:       (877) 768-0708 (U.S. and Canada)
(660) 422-4718 (International)
Conference ID: 805 93 215

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 of Exploration, Joe Phillips, Senior Vice President and Chief Development Officer, and other members of management.

A replay of the call will be available on Coeur's website through November 21, 2013.

Replay number:       (855) 859-2056 (U.S. and Canada)
(404) 537-3406 (International)

About Coeur

Coeur Mining, Inc. is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also has a non-operating interest in the Endeavor mine in Australia. In addition, the Company has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia. The Company owns strategic investment positions in eight silver and gold development companies with projects in North and South 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 anticipated operating results, production levels, drilling results, reserve levels, and efforts to generate high returns and long-term growth. 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 risk that permits necessary for the planned Rochester expansion may not be obtained, 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 and silver and a sustained lower price 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 gold and silver ore reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves, the loss of any third-party smelter to which Coeur markets silver and gold, 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.

Paul Hohbach, Coeur's Director of Exploration and a qualified person under Canadian National Instrument 43-101, reviewed and 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, please see the Technical Reports for each of Coeur's properties as filed on SEDAR at www.sedar.com.

Table 3:

Results of Operations by Mine - Palmarejo

 

                   
3Q 2013     2Q 2013     1Q 2013     4Q 2012     3Q 2012
Underground Operations:
Tons mined 219,909 183,267 151,232 139,925 143,747
Average silver grade (oz/t) 4.73 4.59 4.22 4.70 6.13
Average gold grade (oz/t) 0.11 0.11 0.09 0.08 0.09
Surface Operations:
Tons mined 385,379 363,758 388,651 465,498 424,380
Average silver grade (oz/t) 3.49 4.95 3.45 2.62 2.79
Average gold grade (oz/t) 0.03 0.04 0.03 0.02 0.03
Processing:
Total tons milled 583,365 570,322 573,170 563,123 532,775
Average recovery rate – Ag 81.8% 76.5% 78.8% 84.2% 90.0%
Average recovery rate – Au 87.6% 81.2% 90.1% 91.4% 102.5%
Silver production - oz (000's) 1,918 2,045 1,646 1,555 1,833
Gold production - oz 29,893 28,191 22,965 19,998 23,702
 

Table 4:

Results of Operations by Mine - San Bartolomé

 

                   
3Q 2013     2Q 2013     1Q 2013     4Q 2012     3Q 2012
Tons milled 428,884 424,310 374,985 363,813 344,349
Average silver grade (oz/t) 3.89 3.98 4.09 4.20 4.91
Average recovery rate 91.5% 90.3% 90.6% 88% 90.3%
Silver production (000's) 1,528 1,523 1,391 1,343 1,526
 

Table 5:

Results of Operations by Mine - Rochester

 

                   
3Q 2013     2Q 2013     1Q 2013     4Q 2012     3Q 2012
Tons milled 2,678,906 2,457,423 2,439,757 2,286,233 2,361,951
Average silver grade (oz/t) 0.53 0.58 0.52 0.51 0.52
Average gold grade (oz/t) 0.003 0.003 0.003 0.005 0.004
Silver production (000's) 580 844 648 828 819
Gold production 4,821 9,404 8,742 12,055 10,599
 

Table 6:

Results of Operations by Mine - Kensington

 

                   
3Q 2013     2Q 2013     1Q 2013     4Q 2012     3Q 2012
Tons mined 122,064 135,123 116,747 140,626 113,770
Tons milled 147,427 127,987 129,057 129,622 123,428
Average gold grade (oz/t) 0.20 0.18 0.20 0.23 0.21
Average recovery rate 96.5% 98.2% 96.2% 96.9% 95.9%
Gold production 29,049 23,162 25,206 28,718 24,391
 

Table 7:

Results of Operations by Mine - Endeavor

 

                   
3Q 2013     2Q 2013     1Q 2013     4Q 2012     3Q 2012
Silver Production (000's) 162 221 150 105 140

Contact:
Coeur Mining, Inc.
Bridget Freas, Director, Investor Relations
312-489-5819
or
Donna Mirandola, Director, Corporate Communications
312-489-5842
www.coeur.com

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