IAMGOLD Expected To Grow, Upgrade Gold Assets With Niobec Sale – CIBC

Monday October 06, 2014 10:45 AM

IAMGOLD Corp.’s (TSX:IMG)(NYSE:IAG) $500 million sale of its Niobec niobium mine, as well as the $30 million sale of an adjacent rare earth elements deposit, to a group of companies led by Magris Resources Inc. will allow the company to focus on growing and upgrading IAMGOLD’s gold assets, CIBC says in a research note.  “This sale unlocks and monetizes the potential value of Niobec, but on the other hand removes a steady cash flow stream,” CIBC says. The bank cautions that despite a gain in liquidity, good projects are hard to come by in this market. “We believe competition for quality, low-cost assets is high, particularly in proven jurisdictions,” they say. CIBC notes that Niobec currently accounts for roughly 15% of IAMGOLD’s operating cash flow and carries a net asset value of $173 million.  

By Alex Létourneau of Kitco News aletourneau@kitco.com

Coeur 3Q Silver Equivalent Production Up Slightly Q-o-Q

Monday October 06, 2014 8:08 AM

Coeur Mining, Inc. (NYSE:CDE) expects to complete a new resource estimate for its Kensington gold mine, located in Alaska, by year-end and expects to release a new mine plan in early 2015. The company announced high grade drill results Monday, with several holes returning grades greater than 1 ounce per ton, they said. "The renewed focus of our drilling program at Kensington has discovered high-grade mineralization to enhance the economics of the mine, resulting in a considerable number of drill holes containing multi-ounce gold intercepts," says Hans Rasmussen, Coeur's vice president of exploration. Frank Hanagarne, Coeur's senior vice president and chief operating officer, says, "operating consistency has improved at Kensington in the past two years, which has allowed us to increase our effort on exploration and long-term planning. The discovery at Jualin has the potential to significantly boost production grades, reduce unit costs, and increase free cash flow." Kensington’ estimated proven and probable reserves, as of Dec. 31, totaled 6 million tons at an average grade of 0.15 oz/ton containing 902,000 ounces of gold, the company says.

By Alex Létourneau of Kitco News aletourneau@kitco.com

Coeur Expects New Kensington Mine Plan In Early 2015

Monday October 06, 2014 8:08 AM

Coeur Mining, Inc. (NYSE:CDE) produced 8.2 million silver equivalent ounces during the third quarter of 2014, a slight rise from the 8.1 silver equivalent ounces produced during this year’s second quarter. The bump came from gold production, which rose to 64,989 ounces in the quarter, compared to 61,025 ounces quarter-on-quarter, as silver ounces were down from 4.5 million ounces to 4.3 million ounces quarter-on-quarter, the company says. Silver production was down due to lower gold and silver production from the company’s Palmarejo mine, located in Mexico, as production came from lower grade areas. Gold production at its Rochester mine, located in Nevada, was up and the company upped their gold production guidance for 2014 based on the continued strong performance from the mine. Coeur mining expects to produce between 17 million and 18 million ounces of silver and between 229,000 and 244,000 ounces of gold, or between 30.74 million and 32.64 million silver equivalent ounces in 2014.      

By Alex Létourneau of Kitco News aletourneau@kitco.com

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