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Coeur Reports Fourth Quarter and Full-Year 2018 Production and Sales Results

ALE

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (the “Company” or “Coeur”) (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

               
    2018   4Q 2018   3Q 2018   2Q 2018   1Q 2018   2017   4Q 2017
Tons milled 1,382,471 378,389 300,116 344,073 359,893 1,498,421 389,524
Average silver grade (oz/t) 6.49 5.96 6.26 6.86 6.88 5.62 6.92
Average gold grade (oz/t) 0.10 0.08 0.10 0.11 0.10 0.09 0.10
Average recovery rate – Ag 83.8% 84.0% 82.2% 87.5% 81.4% 86.0% 87.0%
Average recovery rate – Au 88.9% 97.6% 88.8% 89.9% 80.4% 90.0% 92.0%
Ounces Produced
Silver (000’s) 7,516 1,893 1,544 2,066 2,013 7,242 2,346
Gold 122,722 31,239 27,885 33,702 29,896 121,569 37,537
Silver equivalent1 (000’s) 14,880 3,768 3,217 4,088 3,807 14,536 4,600
Silver equivalent1 (average spot) (000’s) 17,429 4,528 3,796 4,728 4,382 16,207 5,209
Ounces Sold
Silver (000’s) 7,229 1,534 1,572 2,092 2,031 7,586 2,343
Gold 115,592 23,667 29,830 31,207 30,888 131,743 38,953
Silver equivalent1 (000’s) 14,165 2,955 3,362 3,964 3,884 15,491 4,681
Silver equivalent1 (average spot) (000’s) 16,566 3,530 3,981 4,557 4,479 17,301 5,313
Average realized price per silver ounce $15.77 $14.57 $14.75 $16.49 $16.73 $16.96 $16.57
Average realized price per gold ounce $1,140 $1,148 $1,082 $1,162 $1,168 $1,110 $1,139
 
  • 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

               
    2018   4Q 2018   3Q 2018   2Q 2018   1Q 2018   2017   4Q 2017
Tons placed 16,169,807 3,674,566 4,061,082 4,083,028 4,351,131 16,440,270 4,171,451
Average silver grade (oz/t) 0.52 0.46 0.52 0.53 0.54 0.53 0.50
Average gold grade (oz/t) 0.004 0.004 0.004 0.004 0.003 0.003 0.003
Ounces Produced
Silver (000’s) 5,038 1,466 1,290 1,125 1,157 4,714 1,361
Gold 54,388 15,926 14,702 12,273 11,487 51,051 18,995
Silver equivalent1 (000’s) 8,301 2,422 2,172 1,861 1,846 7,777 2,500
Silver equivalent1 (average spot) (000’s) 9,431 2,809 2,477 2,095 2,067 8,478 2,808
Ounces Sold
Silver (000’s) 4,855 1,391 1,248 1,097 1,119 4,931 1,457
Gold 52,789 15,339 14,257 12,030 11,163 54,642 20,002
Silver equivalent1 (000’s) 8,022 2,310 2,104 1,819 1,789 8,210 2,658
Silver equivalent1 (average spot) (000’s) 9,118 2,683 2,400 2,048 2,004 8,961 2,983
Average realized price per silver ounce $15.50 $14.53 $14.70 $16.47 $16.66 $16.98 $16.58
Average realized price per gold ounce $1,261 $1,234 $1,204 $1,297 $1,331 $1,262 $1,279
 
  • 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

               
    2018   4Q 2018   3Q 2018   2Q 2018   1Q 2018   2017   4Q 2017
Tons placed 4,923,774 1,644,168 1,127,391 1,075,820 1,076,395 4,560,441 1,124,785
Average gold grade (oz/t) 0.022 0.020 0.023 0.023 0.022 0.027 0.029
Ounces produced
Gold 76,840 16,960 19,437 22,507 17,936 95,372 27,292
Silver (000’s) 51 13 13 13 12 64 16
Gold equivalent1 77,683 17,175 19,646 22,729 18,133 96,431 27,560
Ounces sold
Gold 75,572 15,306 19,874 23,053 17,339 98,237 28,975
Silver (000’s) 48 11 12 14 11 74 16
Gold equivalent1 76,373 15,488 20,081 23,282 17,522 99,472 29,256
Average realized price per gold ounce $1,267 $1,247 $1,198 $1,285 $1,341 $1,269 $1,278
 
  • 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

               
    2018   4Q 2018   3Q 2018   2Q 2018   1Q 2018   2017   4Q 2017
Tons milled 661,731 166,310 167,964 168,751 158,706 668,727 167,631
Average gold grade (oz/t) 0.19 0.23 0.17 0.16 0.17 0.18 0.22
Average recovery rate 93.0% 93.0% 91.8% 92.6% 94.0% 93.5% 92.8%
Gold ounces produced 113,778 35,335 26,809 25,570 26,064 115,094 34,932
Gold ounces sold 114,778 33,202 25,648 28,165 27,763 125,982 35,634
Average realized price per gold ounce $1,247 $1,246 $1,161 $1,269 $1,307 $1,226 $1,244
 
  • 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

               
    2018   4Q 2018   3Q 2018   2Q 2018   1Q 2018   2017   4Q 2017
Tons milled 86,127 38,802 28,080 14,450 4,795 — —
Average silver grade (oz/t) 8.04 6.06 7.29 14.15 10.05 — —
Average zinc grade (%) 6.9% 5.8% 8.0% 8.2% 6.60 — —
Average lead grade (%) 5.0% 3.9% 4.6% 8.1% 7.3% —% —%
Average recovery rate – Ag 49.1% 60.5% 47.0% 42.3% 30.9% —% —%
Average recovery rate – Zn 56.7% 69.1% 49.1% 57.9% 18.7% —% —%
Average recovery rate – Pb 45.1% 54.7% 44.4% 40.5% 21.1% —% —%
Produced
Silver (000’s ounces) 340 142 96 87 15 — —
Zinc (000’s lbs) 6,781 3,083 2,207 1,372 119 — —
Lead (000’s lbs) 3,913 1,658 1,159 949 147 — —
Silver equivalent1 (000’s) 943 411 286 217 29 — —
Silver equivalent1 (average spot) (000’s) 1,117 488 342 277 36 — —
Sold
Silver (000’s ounces) 268 127 131 10 — — —
Zinc (000’s lbs) 4,793 2,552 1,772 469 — — —
Lead (000’s lbs) 3,089 1,444 1,645 — — — —
Silver equivalent1 (000’s) 710 352 320 38 — — —
Silver equivalent1 (average spot) (000’s) 837 418 371 52 — — —
Average realized price per silver ounce $14.03 $13.79 $14.95 $13.01 — — —
Average realized price per zinc pound $0.83 $0.75 $0.93 $1.08 — — —
Average realized price per lead pound $0.81 $0.83 $0.99 $— — — —
 
  • 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

          Silver Equivalent1
Silver Gold Zinc Lead 60:1   Average Spot
    (K oz)   (oz)   (K lbs)   (K lbs)   (K oz)   (K oz)
Palmarejo 7,516 122,722 — — 14,880 17,429
Rochester 5,038 54,388 — — 8,301 9,431
Wharf 51 76,840 — — 4,661 6,206
Kensington — 113,778 — — 6,827 9,190
Silvertip   340   —   6,781   3,913   943   1,117
Total   12,945   367,728   6,781   3,913   35,612   43,373
 

2018 Production Guidance3

          Silver Equivalent1
Silver Gold Zinc Lead 60:1   Average Spot
    (K oz)   (oz)   (K lbs)   (K lbs)   (K oz)   (K oz)
Palmarejo 7,500 – 7,900 115,000 – 120,000 — — 14,400 – 15,100 16,782 – 17,586
Rochester 4,800 – 5,200 48,000 – 52,000

—

— 7,680 – 8,320 8,674 – 9,397
Wharf — 85,000 – 90,000

—

— 5,100 – 5,400 6,861 – 7,264
Kensington — 115,000 – 120,000

 

— — 6,900 – 7,200 9,282 – 9,686
Silvertip   700 – 1,200   —   13,000 – 23,000   11,000 – 18,000   2,030 – 3,480   2,515 – 4,316
Total   13,000 – 14,300   363,000 – 382,000   13,000 – 23,000   11,000 – 18,000   36,110 – 39,500   44,114 – 48,248
 

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.

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

Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Thomas S. Whelan,
Senior Vice President and Chief Financial Officer, Terry F. D. Smith,
Senior Vice President of Operations, Hans Rasmussen, Senior Vice
President of Exploration, and other members of management. A replay of
the call will be available through March 7, 2019.

      Replay numbers:       (877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID: 101 27 575
 

About Coeur

Coeur Mining, Inc. is a well-diversified, growing precious metals
producer with five mines in North America. Coeur produces from its
wholly-owned operations: the Palmarejo silver-gold complex in Mexico,
the Silvertip silver-zinc-lead mine in British Columbia, the Rochester
silver-gold mine in Nevada, the Wharf gold mine in South Dakota, and the
Kensington gold mine in Alaska. In addition, the Company has interests
in several precious metals exploration projects throughout North 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 recoveries, mining rates, throughput,
development efforts, grades, operations at Rochester, improvements at
Silvertip, and timing of obtaining permit amendment approval for
Silvertip. 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
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, silver, zinc, and
lead 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 reserves, changes that could result from Coeur’s future
acquisition of new mining properties or businesses, the loss or
insolvency of any third-party smelter or refiner with whom Coeur does
business, 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.

Christopher Pascoe, Coeur’s Director, Technical Services and a qualified
person under Canadian National Instrument 43-101, 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, Canadian investors should refer to
the Technical Reports for each of Coeur’s properties as filed on SEDAR
at sedar.com.

Notes

  1. Silver equivalence assumes silver-to-gold, -lead and -zinc ratios of
    60:1, 0.05:1 and 0.06:1, respectively, except where noted as average
    spot prices. Please see the table below for average applicable spot
    prices and corresponding ratios.
  2. Fourth quarter and full-year 2018 production and sales figures include
    pre-commercial production from Kensington (Jualin) and Silvertip.
  3. Full-year 2018 production guidance includes pre-commercial production
    from Kensington (Jualin) and Silvertip.

Average Spot Prices

               
    2018   4Q 2018   3Q 2018   2Q 2018   1Q 2018   2017   4Q 2017
Average Silver Spot Price Per Ounce $ 15.71 $ 14.54 $ 15.02 $ 16.53 $ 16.77 $ 17.05 $ 16.73
Average Gold Spot Price Per Ounce $ 1,268 $ 1,226 $ 1,213 $ 1,306 $ 1,329 $ 1,257 $ 1,275
Average Silver to Gold Spot Equivalence 81:1 84:1 81:1 79:1 79:1 74:1 76:1
Average Zinc Spot Price Per Pound $ 1.33 $ 1.19 $ 1.15 $ 1.41 $ 1.55 $ 1.31 $ 1.47
Average Silver to Zinc Spot Equivalence 0.08:1 0.08:1 0.08:1 0.09:1 0.09:1 0.08:1 0.09:1
Average Lead Spot Price Per Pound $ 1.02 $ 0.89 $ 0.95 $ 1.08 $ 1.14 $ 1.05 $ 1.13
Average Silver to Lead Spot Equivalence 0.06:1 0.06:1 0.06:1 0.07:1 0.07:1 0.06:1 0.07:1

Contacts

Coeur Mining, Inc.
Paul DePartout, Director, Investor Relations
(312)
489-5800
www.coeur.com

Laurel McBride real estate agent with Century 21 N and N Realtors with homes for sale in Logan Utah