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)

           
(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

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