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Coeur: 1Q Production In Line With Guidance

Kitco News

(Kitco News) - Coeur Mining, Inc. (NYSE: CDE) said late Thursday that first-quarter production was in line with its expectations and that output should pick up in the second half of the year.

The company reported that January-March output totaled 78,336 ounces of gold, 2.5 million ounces of silver, 3.7 million pounds of zinc and 3.1 million pounds of lead. Sales for the quarter were 85,326 ounces of gold, 2.6 million ounces of silver, 4.7 million pounds of zinc and 2.7 million pounds of lead.

For full-year 2019, Coeur expects to produce 334,000 to 372,000 ounces of gold, 12.2 million to 14.7 million ounces of silver, 25 million to 40 million pounds of zinc and 20 million to 35 million pounds of lead.

“First quarter operating results were in line with our expectations” said Mitchell J. Krebs, president and chief executive officer. “Our top two 2019 initiatives – successfully ramping up operating activities at Silvertip and completing the installation of the high-pressure grinding roll unit at Rochester – remain on track. Our Kensington mine continues to see the benefit of higher grades from the Jualin deposit, while Wharf exceeded its plan during the first quarter and is positioned to deliver higher production during the remainder of the year.”

The CEO said the company expects operating results to be weighted toward the second half of the year.

“We expect higher production levels at Palmarejo as production begins at the new La Nación deposit and a new thickener is commissioned in the second half of 2019,” he said. “Rochester’s second half 2019 production is expected to increase due to the positive impacts of the new HPGR unit, while higher mining and processing rates from the higher-grade Jualin deposit are expected to boost second half production at Kensington.”

During the first quarter, gold and silver production fell from a year ago at Palmarejo in Mexico due to lower grades and recoveries as a result of mine sequencing. Output of both metals fell at Rochester in Nevada largely due to adverse weather, Coeur said. Gold output at Kensington in Alaska was up from a year ago, but eased at Wharf in South Dakota. Silver, lead and zinc output at Silvertip, located in British Columbia, rose from the fourth quarter as ramp-up continued at a mine that achieved commercial production in September.

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