Coeur Reports First Quarter 2019 Results
Full-Year Production and Cost Guidance Reaffirmed
CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported first quarter 2019 financial results, including revenue of
$154.9 million, adjusted EBITDA1 of $26.1 million and cash
flow from operating activities of $(11.8) million. Prior to changes in
working capital, cash flow from operating activities totaled $21.5
million. Including a non-cash write down of $15.4 million taken in the
quarter, the Company reported GAAP net loss from continuing operations
of $24.9 million, or $0.12 per share. On an adjusted basis1,
the Company reported a net loss of $23.0 million, or $0.11 per share.
The Company is reaffirming full-year 2019 production guidance of 334,000
– 372,000 ounces of gold, 12.2 – 14.7 million ounces of silver, 25 – 40
million pounds of zinc and 20 – 35 million pounds of lead. In addition,
full-year cost guidance is being reaffirmed.
Key Highlights
-
Production on-track to achieve full-year guidance ranges –
Full-year financial and operational results expected to benefit from
higher second half production driven by the anticipated impact of
high-pressure grinding roll (“HPGR”) technology at Rochester, higher
recovery rates and production levels at Palmarejo, and improved plant
performance and higher grades at Silvertip -
Strong operating cost performance across the Company’s portfolio –
First quarter adjusted costs applicable to sales (“CAS”)1
at each operation either below or in-line with full-year guidance
ranges. Site-level unit costs expected to trend lower due to higher
expected second half production levels -
Installation of HPGR unit at Rochester on-track – Despite
unseasonably high snowfall levels, commissioning of the HPGR unit
remains on-budget and on-schedule. Commissioning activities now
underway and impact on silver recovery rates expected to be seen
beginning mid-year -
Improved results at Silvertip with continued focus on achieving
positive cash flow – Although slower than originally expected,
results at Silvertip improved quarter-over-quarter. March 2019
represented the strongest month of performance since acquisition with
revenues more than doubling in the first quarter. Current areas of
focus include (i) sustaining consistent levels of mill availability to
allow for recovery rate optimization, (ii) accelerating underground
development rates to enhance mining flexibility and access to higher
grade ore, and (iii) workforce training and retention initiatives -
Kensington now shifting focus at Jualin from development activities
to production – Mining activities at Jualin transitioned from
development to production during the first quarter, with the
high-grade deposit contributing approximately 10% of Kensington’s
production at an average grade of 0.41 ounces per ton (“oz/t”). Jualin
is expected to account for approximately 20% of Kensington’s total
production in 2019. Higher mining rates from Jualin are expected to
contribute to higher production levels and lower unit costs throughout
the remainder of 2019 -
Continued commitment to success-based exploration program –
Following last year’s strong reserve and resource increases, 2019
drilling programs commenced by investing a total of $6.6 million in
resource expansion and conversion drilling targeting Palmarejo and
Kensington as well as the new Sterling and Crown deposits -
Cash and cash equivalents as of March 31, 2019 of $69.0 million –
$135.0 million currently drawn on the Company’s $250.0 million senior
secured revolving credit facility, the terms of which were amended
subsequent to the end of the first quarter to enhance near-term
financial flexibility. Liquidity levels expected to climb during the
second half of 2019 due to higher anticipated production levels and
lower unit costs
“First quarter operational and financial results were consistent with
our expectations,” said Mitchell J. Krebs, President and Chief Executive
Officer. “Although Silvertip’s ongoing ramp-up remains a near-term drag
on our free cash flow and liquidity levels until it achieves
steady-state, our balanced portfolio of operations are advancing several
key initiatives that are expected to help us achieve our objective of
returning to positive free cash flow in 2019.”
|
Financial and Operating Highlights (Unaudited) |
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|
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce/pound metrics) |
1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||||||||||||
| Gold Sales | $ | 106.8 | $ | 96.3 | $ | 103.0 | $ | 117.2 | $ | 110.5 | ||||||||||
| Silver Sales | $ | 40.1 | $ | 44.6 | $ | 43.0 | $ | 52.8 | $ | 52.8 | ||||||||||
| Zinc Sales | $ | 5.6 | $ | 1.9 | $ | 1.7 | $ | — | $ | — | ||||||||||
| Lead Sales | $ | 2.4 | $ | 1.0 | $ | 1.0 | $ | — | $ | — | ||||||||||
| Consolidated Revenue | $ | 154.9 | $ | 143.8 | $ | 148.8 | $ | 170.0 | $ | 163.3 | ||||||||||
| Costs Applicable to Sales | $ | 131.7 | $ | 116.6 | $ | 116.9 | $ | 108.2 | $ | 99.3 | ||||||||||
| General and Administrative Expenses | $ | 9.5 | $ | 7.1 | $ | 7.7 | $ | 7.7 | $ | 8.8 | ||||||||||
| Net Income (Loss) | $ | (24.9 | ) | $ | 0.4 | $ | (53.0 | ) | $ | 2.9 | $ | 0.7 | ||||||||
| Net Income (Loss) Per Share | $ | (0.12 | ) | $ | 0.00 | $ | (0.29 | ) | $ | 0.02 | $ | 0.00 | ||||||||
| Adjusted Net Income (Loss)1 | $ | (23.0 | ) | $ | 16.1 | $ | (19.7 | ) | $ | 1.1 | $ | 0.3 | ||||||||
| Adjusted Net Income (Loss)1 Per Share | $ | (0.11 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 | ||||||||
| Weighted Average Shares Outstanding | 202.4 | 199.5 | 185.2 | 187.5 | 187.6 | |||||||||||||||
| EBITDA1 | $ | 14.8 | $ | 7.9 | $ | (12.3 | ) | $ | 42.1 | $ | 49.4 | |||||||||
| Adjusted EBITDA1 | $ | 26.1 | $ | 36.2 | $ | 24.7 | $ | 48.4 | $ | 49.2 | ||||||||||
| Cash Flow from Operating Activities | $ | (11.8 | ) | $ | 0.1 | $ | 5.8 | $ | (1.3 | ) | $ | 15.5 | ||||||||
| Capital Expenditures | $ | 27.4 | $ | 17.8 | $ | 39.5 | $ | 41.2 | $ | 42.3 | ||||||||||
| Free Cash Flow1 | $ | (39.3 | ) | $ | (17.7 | ) | $ | (33.7 | ) | $ | (42.5 | ) | $ | (26.8 | ) | |||||
| Cash, Equivalents & Short-Term Investments | $ | 69.0 | $ | 115.1 | $ | 104.7 | $ | 123.5 | $ | 159.6 | ||||||||||
| Total Debt2 | $ | 456.8 | $ | 458.8 | $ | 429.2 | $ | 419.7 | $ | 414.0 | ||||||||||
| Average Realized Price Per Ounce – Gold | $ | 1,251 | $ | 1,214 | $ | 1,150 | $ | 1,241 | $ | 1,268 | ||||||||||
| Average Realized Price Per Ounce – Silver | $ | 15.22 | $ | 14.59 | $ | 14.68 | $ | 16.48 | $ | 16.70 | ||||||||||
| Average Realized Price Per Pound – Zinc | $ | 1.19 | $ | 0.83 | $ | 0.93 | $ | — | $ | — | ||||||||||
| Average Realized Price Per Pound – Lead | $ | 0.86 | $ | 0.80 | $ | 0.90 | $ | — | $ | — | ||||||||||
| Gold Ounces Produced | 78,336 | 92,546 | 87,539 | 94,052 | 85,383 | |||||||||||||||
| Silver Ounces Produced | 2.5 | 3.5 | 2.9 | 3.2 | 3.2 | |||||||||||||||
| Zinc Pounds Produced | 3.7 | 3.1 | 1.1 | — | — | |||||||||||||||
| Lead Pounds Produced | 3.1 | 1.7 | 0.4 | — | — | |||||||||||||||
| Gold Ounces Sold | 85,326 | 79,291 | 89,609 | 94,455 | 87,153 | |||||||||||||||
| Silver Ounces Sold | 2.6 | 3.1 | 2.9 | 3.2 | 3.2 | |||||||||||||||
| Zinc Pounds Sold | 4.7 | 2.6 | 1.8 | — | — | |||||||||||||||
| Lead Pounds Sold | 2.7 | 1.4 | 1.2 | — | — | |||||||||||||||
Financial Results
First quarter revenue increased 8% to $154.9 million compared to $143.8
million in the fourth quarter of 2018. The Company sold 85,326 ounces of
gold and 2.6 million ounces of silver during the quarter, representing
an 8% increase and 14% decrease, respectively, compared to the prior
period. Zinc and lead sales totaled 4.7 million and 2.7 million pounds
during the first quarter, or 81% and 93% increases, respectively,
quarter-over-quarter.
Average realized gold and silver prices for the quarter were $1,251 and
$15.22 per ounce, respectively, or 3% and 4% higher
quarter-over-quarter. The average realized gold price during the quarter
reflects the sale of 8,803 gold ounces at a price of $800 per ounce
pursuant to Palmarejo’s gold stream agreement. Average realized zinc and
lead prices, net of treatment and refining charges, for the quarter were
$1.19 and $0.86 per pound, respectively, or 43% and 8% higher compared
to the prior quarter.
Gold and silver sales accounted for 69% and 26%, respectively, of first
quarter revenue, while zinc and lead sales contributed 4% and 1%,
respectively. The Company’s U.S. operations accounted for approximately
59% of first quarter revenue, down from approximately 62% in the prior
period primarily due to increased sales from Silvertip, which totaled
$10.9 million during the quarter.
Quarterly costs applicable to sales were $131.7 million compared to
$116.6 million in the fourth quarter of 2018, reflecting higher
operating costs at Palmarejo, Kensington and Silvertip. First quarter
general and administrative expenses were $9.5 million compared to $7.1
million in the prior period driven by higher employee-related and legal
expenses.
Quarterly exploration expense was $3.7 million, or 10% lower
quarter-over-quarter. The Company focused on near-mine targets at
Palmarejo and Kensington, while commencing drilling activities at the
Sterling and Crown exploration properties in southern Nevada. See page
11 for further details.
During the first quarter, the Company recorded an income tax benefit of
$8.7 million, largely attributable to lower taxable earnings during the
quarter. Cash income and mining taxes paid during the quarter totaled
$9.7 million. In April 2019, the Company paid $9.3 million in cash taxes
related to its acquisition of Northern Empire Resources Corp. (“Northern
Empire”). The cash outflow will be reflected in the Company’s second
quarter financial results and will allow Coeur to utilize its U.S. net
operating loss carryforwards against any future income generated from
the Sterling and Crown properties.
Operating cash flow of $(11.8) million in the first quarter was impacted
by unfavorable changes in working capital, primarily due to an inventory
adjustment at Silvertip. Excluding these changes, first quarter
operating cash flow was $21.5 million1.
First quarter capital expenditures totaled $27.4 million, compared to
$17.8 million in the fourth quarter 2018. Higher capital expenditures
were driven primarily by higher investment levels at Palmarejo,
Rochester and Silvertip. Sustaining and development capital expenditures
accounted for approximately 79% and 21%, respectively, of the Company’s
capital expenditures in the first quarter.
On April 30, 2019, the Company amended its credit agreement with respect
to its senior secured revolving credit facility. The amended terms of
the credit agreement provide the Company with additional financial
flexibility during the remainder of 2019 while ramp-up activities
continue at Silvertip and anticipated production levels increase across
the Company’s portfolio during the second half of the year.
Operations
First quarter 2019 highlights for each of the Company’s operations are
provided below.
|
Palmarejo, Mexico |
||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
| Tons milled | 378,987 | 378,389 | 300,116 | 344,073 | 359,893 | |||||
| Average gold grade (oz/t) | 0.07 | 0.08 | 0.10 | 0.11 | 0.10 | |||||
| Average silver grade (oz/t) | 4.64 | 5.96 | 6.26 | 6.86 | 6.88 | |||||
| Average recovery rate – Au | 83.4% | 97.6% | 88.8% | 89.9% | 80.4% | |||||
| Average recovery rate – Ag | 72.8% | 84.0% | 82.2% | 87.5% | 81.4% | |||||
| Gold ounces produced | 23,205 | 31,239 | 27,885 | 33,702 | 29,896 | |||||
| Silver ounces produced (000’s) | 1,278 | 1,893 | 1,544 | 2,066 | 2,013 | |||||
| Gold ounces sold | 27,394 | 23,667 | 29,830 | 31,207 | 30,888 | |||||
| Silver ounces sold (000’s) | 1,405 | 1,534 | 1,572 | 2,092 | 2,031 | |||||
| Average realized price per gold ounce | $1,154 | $1,148 | $1,082 | $1,162 | $1,168 | |||||
| Average realized price per silver ounce | $15.39 | $14.57 | $14.75 | $16.49 | $16.73 | |||||
| Metal sales | $53.2 | $49.6 | $55.5 | $70.7 | $70.0 | |||||
| Costs applicable to sales | $33.2 | $27.1 | $31.6 | $30.3 | $31.1 | |||||
| Adjusted CAS per AuOz1 | $713 | $624 | $615 | $497 | $519 | |||||
| Adjusted CAS per AgOz1 | $9.66 | $7.92 | $8.39 | $7.05 | $7.43 | |||||
| Exploration expense | $1.0 | $0.1 | $3.2 | $3.2 | $4.0 | |||||
| Cash flow from operating activities | $5.9 | $13.3 | $8.6 | $1.3 | $27.3 | |||||
| Sustaining capital expenditures (excludes capital lease payments) | $6.0 | $3.6 | $2.0 | $9.5 | $9.3 | |||||
| Development capital expenditures | $2.7 | $2.3 | $2.7 | $— | $— | |||||
| Total capital expenditures | $8.7 | $5.9 | $4.7 | $9.5 | $9.3 | |||||
| Free cash flow1 | $(2.8) | $7.4 | $3.9 | $(8.2) | $18.0 | |||||
-
First quarter gold and silver production decreased 26% and 32%,
respectively, to 23,205 and 1.3 million ounces compared to the prior
quarter. Year-over-year, gold and silver production decreased 22% and
37%, respectively -
Lower production levels were primarily driven by temporarily lower
grades and recoveries due to mine sequencing and are expected to
increase in subsequent quarters -
First quarter adjusted CAS1 for gold and silver on a
co-product basis increased 14% and 22% to $713 and $9.66 per ounce,
respectively, compared to the prior quarter. These increases were due
to lower quarterly production levels, but remained within full-year
guidance ranges -
Free cash flow1 of $(2.8) million during the first quarter
was driven by lower operating cash flow from lower production levels
and by higher capital expenditures. Capital expenditures were focused
on mine development, including at the La Nación deposit, and on
infrastructure projects, including the new thickener -
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, adding
approximately 400 tons per day (“tpd”) of additional mill feed -
Installation of the new thickener at a cost of approximately $4.5
million remains on-budget and on-schedule for completion during the
third quarter. The project is expected to increase gold and silver
recovery rates by approximately 2% each and have an estimated one-year
payback -
Full-year 2019 production guidance remains unchanged at 95,000 –
105,000 ounces of gold and 6.5 – 7.2 million ounces of silver -
Guidance for CAS and capital expenditures also remains unchanged. CAS
are expected to be $650 – $750 per gold ounce and $9.00 – $10.00 per
silver ounce. Capital expenditures are expected to be approximately
$40 – $45 million
|
Rochester, Nevada |
||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
| Ore tons placed | 2,667,559 | 3,674,566 | 4,061,082 | 4,083,028 | 4,351,131 | |||||
| Average silver grade (oz/t) | 0.46 | 0.46 | 0.52 | 0.53 | 0.54 | |||||
| Average gold grade (oz/t) | 0.003 | 0.004 | 0.004 | 0.004 | 0.003 | |||||
| Silver ounces produced (000’s) | 960 | 1,466 | 1,290 | 1,125 | 1,157 | |||||
| Gold ounces produced | 8,256 | 15,926 | 14,702 | 12,273 | 11,487 | |||||
| Silver ounces sold (000’s) | 1,000 | 1,391 | 1,248 | 1,097 | 1,119 | |||||
| Gold ounces sold | 8,511 | 15,339 | 14,257 | 12,030 | 11,163 | |||||
| Average realized price per silver ounce | $15.31 | $14.53 | $14.70 | $16.47 | $16.66 | |||||
| Average realized price per gold ounce | $1,299 | $1,234 | $1,204 | $1,297 | $1,331 | |||||
| Metal sales | $26.4 | $39.1 | $35.5 | $33.7 | $33.5 | |||||
| Costs applicable to sales | $22.5 | $29.4 | $27.5 | $24.5 | $24.3 | |||||
| Adjusted CAS per AgOz1 | $12.83 | $10.79 | $11.35 | $11.89 | $11.85 | |||||
| Adjusted CAS per AuOz1 | $1,092 | $917 | $929 | $936 | $947 | |||||
| Exploration expense | $0.1 | — | $0.1 | $0.2 | $— | |||||
| Cash flow from operating activities | $(1.0) | $17.9 | $5.7 | $6.0 | $3.4 | |||||
| Sustaining capital expenditures (excludes capital lease payments) | $1.8 | $7.1 | $2.7 | $0.4 | $0.5 | |||||
| Development capital expenditures | $2.8 | $(4.1) | $0.9 | $0.3 | $2.1 | |||||
| Total capital expenditures | $4.6 | $3.0 | $3.6 | $0.7 | $2.6 | |||||
| Free cash flow1 | $(5.6) | $14.9 | $2.1 | $5.3 | $0.8 | |||||
-
First quarter silver and gold production decreased 35% and 48%,
respectively, to 1.0 million and 8,256 ounces compared to the prior
quarter. Year-over-year, silver and gold production decreased 17% and
28%, respectively -
Lower production was driven by lower ore placement rates due to
abnormally high snowfall levels, which had a comparatively larger
impact on gold production. Silver production was partially offset by
higher residual leaching rates from the Stage III leach pad -
First quarter adjusted CAS1 for silver and gold on a
co-product basis each increased 19% to $12.83 and $1,092 per ounce,
respectively, quarter-over-quarter. The increases were primarily due
to comparatively lower production levels during the quarter, but were
within full-year guidance ranges -
Free cash flow1 of $(5.6) million was driven by lower
operating cash flow due to lower production levels and by higher
capital expenditures, which were primarily related to the installation
of the HPGR unit and new secondary crusher -
Installation of the HPGR unit remains on-budget and on-schedule with
commissioning activities underway in May. Crushing rates and silver
recoveries are anticipated to increase beginning mid-year with full
ramp-up expected during the third quarter -
The Company is maintaining full-year 2019 production guidance of 4.2 –
5.0 million ounces of silver and 40,000 – 50,000 ounces of gold;
installation of the HPGR unit and the new secondary crusher is
expected to result in higher production during the second half of the
year compared to the first half -
CAS in 2019 are also unchanged and expected to be $12.50 – $13.50 per
silver ounce and $1,000 – $1,100 per gold ounce -
The Company is maintaining its guidance for capital expenditures,
which are expected to be approximately $17 – $20 million, including
approximately $12 – $15 million associated with the HPGR unit and new
secondary crusher
|
Kensington, Alaska |
||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
| Tons milled | 164,332 | 149,998 | 163,603 | 168,751 | 158,706 | |||||
| Average gold grade (oz/t) | 0.20 | 0.21 | 0.17 | 0.16 | 0.17 | |||||
| Average recovery rate | 90.2% | 91.1% | 90.4% | 92.6% | 94.0% | |||||
| Gold ounces produced | 29,973 | 28,421 | 25,515 | 25,570 | 26,064 | |||||
| Gold ounces sold | 31,335 | 24,979 | 25,648 | 28,165 | 27,763 | |||||
| Average realized price per gold ounce, gross | $1,301 | $1,267 | $1,195 | $1,305 | $1,337 | |||||
| Treatment and refining charges per gold ounce | $15 | $21 | $34 | $36 | $30 | |||||
| Average realized price per gold ounce, net | $1,286 | $1,246 | $1,161 | $1,269 | $1,307 | |||||
| Metal sales | $40.3 | $31.1 | $29.8 | $35.7 | $36.3 | |||||
| Costs applicable to sales | $32.2 | $21.4 | $28.2 | $34.2 | $28.6 | |||||
| Adjusted CAS per AuOz1 | $990 | $843 | $1,091 | $1,196 | $1,010 | |||||
| Exploration expense | $0.5 | $1.3 | $1.6 | $1.4 | $1.6 | |||||
| Cash flow from operating activities | $6.2 | $7.9 | $(0.4) | $3.2 | $4.6 | |||||
| Sustaining capital expenditures (excludes capital lease payments) | $9.4 | $9.8 | $9.7 | $9.2 |
$8.5 |
|||||
| Development capital expenditures | $— | $0.8 | $2.3 | $1.5 |
$2.9 |
|||||
| Total capital expenditures | $9.4 | $10.6 | $12.0 | $10.7 | $11.4 | |||||
| Free cash flow1 | $(3.2) | $(2.7) | $(12.4) | $(7.5) | $(6.8) | |||||
-
Commercial production at Jualin was declared on December 1, 2018. The
figures shown in the table above exclude pre-commercial production -
First quarter gold production of 29,973 ounces represented a 5%
increase quarter-over-quarter and a 15% increase compared to the same
period the prior year. Mining activities at Jualin shifted focus from
ore development to full production, allowing for longhole stope
production at Jualin in future quarters -
Ore from Jualin accounted for approximately 10% of Kensington’s gold
production during the quarter and had an average grade of 0.41 oz/t.
Jualin is expected to account for approximately 20% of Kensington’s
total production in 2019 -
Adjusted CAS1 for the first quarter increased 17% to $990
per gold ounce compared to the prior quarter. The quarterly increase
was driven by higher mining and employee-related expenses -
Free cash flow1 of $(3.2) million was driven by lower
operating cash flow, partially offset by lower capital expenditures.
Capital expenditures were largely attributable to underground
development and capitalized infill drilling -
Full-year 2019 production guidance remains unchanged at 117,000 –
130,000 ounces of gold -
Full-year CAS and capital expenditures are also unchanged. CAS are
expected to be $950 – $1,050 per ounce; capital expenditures are
expected to be $20 – $25 million
|
Wharf, South Dakota |
||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
| Ore tons placed | 1,090,510 | 1,644,168 | 1,127,391 | 1,075,820 | 1,076,395 | |||||
| Average gold grade (oz/t) | 0.020 | 0.020 | 0.023 | 0.023 | 0.022 | |||||
| Gold ounces produced | 16,902 | 16,960 | 19,437 | 22,507 | 17,936 | |||||
| Silver ounces produced (000’s) | 13 | 13 | 13 | 13 | 12 | |||||
| Gold ounces sold | 18,086 | 15,306 | 19,874 | 23,053 | 17,339 | |||||
| Silver ounces sold (000’s) | 14 | 11 | 12 | 14 | 11 | |||||
| Average realized price per gold ounce | $1,317 | $1,247 | $1,198 | $1,285 | $1,341 | |||||
| Metal sales | $24.0 | $19.3 | $24.0 | $29.8 | $23.4 | |||||
| Costs applicable to sales | $17.4 | $14.6 | $18.0 | $19.3 | $15.3 | |||||
| Adjusted CAS per AuOz1 | $949 | $939 | $895 | $822 | $868 | |||||
| Exploration expense | $— | — | $0.1 | $— | $— | |||||
| Cash flow from operating activities | $4.2 | $(1.9) | $3.7 | $11.5 | $(1.4) | |||||
| Sustaining capital expenditures (excludes capital lease payments) | $0.4 | $0.7 | $1.2 | $1.2 | $0.3 | |||||
| Development capital expenditures | $— | $— | $— | $— | $— | |||||
| Total capital expenditures | $0.4 | 0.7 | $1.2 | $1.2 | $0.3 | |||||
| Free cash flow1 | $3.8 | $(2.6) | $2.5 | $10.3 | $(1.7) | |||||
-
Gold production remained relatively flat quarter-over-quarter at
16,902 ounces in the first quarter and decreased 6% year-over-year -
Production levels reflected the impact of lower grade tons placed in
the prior quarter. Production was above target and is expected to
increase throughout the remainder of the year -
Adjusted CAS on a by-product basis were relatively flat
quarter-over-quarter and remained within the full-year guidance range
of $850 – $950 per ounce -
Free cash flow1 of $3.8 million was driven by higher
operating cash flow and lower capital expenditures -
Since acquiring the operation in February 2015 for $99 million, Wharf
has generated $139.5 million of free cash flow1 -
The Company is maintaining full-year 2019 production guidance of
82,000 – 87,000 ounces of gold -
Coeur is also maintaining its full-year 2019 guidance for CAS and
capital expenditures. CAS are expected to be $850 – $950 per ounce and
capital expenditures are expected to be approximately $3 – $5 million
|
Silvertip, British Columbia |
||||||||||
| (Dollars in millions, except per ounce and per pound amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
| Tons milled | 62,051 | 38,802 | 10,652 | — | — | |||||
| Average silver grade (oz/t) | 5.50 | 6.06 | 6.66 | — | — | |||||
| Average zinc grade (%) | 5.9% | 5.8% | 8.0% | —% | —% | |||||
| Average lead grade (%) | 3.7% | 3.9% | 4.3% | —% | —% | |||||
| Average recovery rate – Ag | 69.9% | 60.5% | 56.3% | —% | —% | |||||
| Average recovery rate – Zn | 50.5% | 69.1% | 64.5% | —% | —% | |||||
| Average recovery rate – Pb | 66.8% | 54.7% | 45.1% | —% | —% | |||||
| Silver ounces produced (000’s) | 239 | 142 | 40 | — | — | |||||
| Zinc pounds produced (000’s) | 3,719 | 3,082 | 1,099 | — | — | |||||
| Lead pounds produced (000’s) | 3,077 | 1,659 | 413 | — | — | |||||
| Silver ounces sold (000’s) | 215 | 124 | 99 | — | — | |||||
| Zinc pounds sold (000’s) | 4,723 | 2,604 | 1,772 | — | — | |||||
| Lead pounds sold (000’s) | 2,748 | 1,419 | 1,230 | — | — | |||||
| Average realized price per silver ounce, gross | $14.98 | $15.54 | $14.62 | $— | $— | |||||
| Treatment and refining charges per silver ounce | $1.24 | $1.38 | $3.34 | $— | $— | |||||
| Average realized price per silver ounce, net | $13.74 | $14.16 | $11.28 | $— | $— | |||||
| Average realized price per zinc pound, gross | $1.50 | $1.07 | $1.20 | $— | $— | |||||
| Treatment and refining charges per zinc pound | $0.31 | $0.24 | $0.27 | $— | $— | |||||
| Average realized price per zinc pound, net | $1.19 | $0.83 | $0.93 | $— | $— | |||||
| Average realized price per lead pound, gross | $0.92 | $0.87 | $0.97 | $— | $— | |||||
| Treatment and refining charges per lead pound | $0.06 | $0.07 | $0.07 | $— | $— | |||||
| Average realized price per lead pound, net | $0.86 | $0.80 | $0.90 | $— | $— | |||||
| Metal sales | $10.9 | $4.8 | $4.1 | $— | $— | |||||
| Costs applicable to sales | $26.4 | $24.1 | $11.5 | $— | $— | |||||
| Adjusted CAS per AgOz1 | $13.73 | $17.68 | $9.86 | $— | $— | |||||
| Adjusted CAS per ZnLb1 | $1.18 | $0.95 | $0.64 | $— | $— | |||||
| Adjusted CAS per PbLb1 | $0.88 | $1.02 | $0.55 | $— | $— | |||||
| Exploration expense | $0.1 | $0.3 | $2.3 | $0.1 | $— | |||||
| Cash flow from operating activities | $(13.9) | $(34.1) | $(6.8) | $— | $— | |||||
| Sustaining capital expenditures (excludes capital lease payments) | $4.1 | $8.2 | $0.4 | $— | $— | |||||
| Development capital expenditures | $— | $(10.8) | $17.5 | $19.0 | $18.6 | |||||
| Total capital expenditures | $4.1 | $(2.6) | $17.9 | $19.0 | $18.6 | |||||
| Free cash flow1 | $(18.0) | $(31.5) | $(24.7) | $(19.0) | $(18.6) | |||||
-
Silvertip achieved commercial production on September 1, 2018. The
operating and financial metrics shown in the table above exclude
pre-commercial production -
First quarter silver, zinc and lead production increased 68%, 21% and
85%, respectively, to 0.2 million ounces of silver, 3.7 million pounds
of zinc and 3.1 million pounds of lead compared to the prior quarter -
Higher production was driven by higher tons milled, which increased
60% quarter-over-quarter. The mill exceeded 1,100 tpd (1,000 metric
tonnes per day (“mtpd”)) intermittently in March and averaged
approximately 843 tpd (765 mtpd), excluding two days of scheduled
maintenance -
Average head grades, recovery rates and concentrate grades are
expected to continue trending higher as mill availability improves and
newly-mined higher grade material is processed -
First quarter adjusted CAS on a co-product basis were $13.73 per
silver ounce, $1.18 per payable zinc pound and $0.88 per payable lead
pound, compared to $17.68, $0.95 and $1.02, respectively, in the prior
quarter
Contacts
For Additional Information
Coeur Mining, Inc.
104 S.
Michigan Avenue, Suite 900
Chicago, IL 60603
Attention: Paul
DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com
