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Coeur Mining Posts Fourth-Quarter Profit

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(Kitco News) - Coeur Mining, Inc. (NYSE: CDE) was profitable in the fourth quarter and for full-year 2017 as the company hit record production for both periods.

The company late Wednesday listed fourth-quarter income of $14.3 million, or 8 cents per share, a turnaround from a loss of $10.3 million, or 6 cents, in the same period a year ago. Excluding special items, adjusted income was $14.1 million, or 8 cents, compared to $900,000, or a penny, in the year-ago period.

For the full year, net income was $10.9 million, or 6 cents per share, down from $22.4 million, or 14 cents, in 2016.

Coeur listed its San Bartolomé mine as a discontinued operation. The company announced the sale of its Bolivian subsidiary in December and reported that the transaction is expected to close in the first quarter.  As a result, the mine’s 4.3 million ounces of silver are not listed in consolidated operating and financial results, Coeur said.

Coeur listed record fourth quarter and full-year silver equivalent production. Output from continuing operations increased to 10.8 million ounces from 8.7 million in the same period a year ago and 8.6 million in the third quarter. Full-year production of 35.1 million silver-equivalent ounces was up from 30.8 million in 2016.

The company said the fourth-quarter improvement was driven by 45% and 26% increases at the Rochester and Palmarejo mines, respectively, and a 27% increase in gold production at the Kensington mine. Record full-year production was driven primarily by the Palmarejo mine, where 2017 silver-equivalent production rose 64% compared to 2016

Companywide adjusted average spot all-in sustaining costs per silver-equivalent ounce for the fourth quarter decreased to $12.26 from $14.29 in the year-ago period and $14.79 in the third quarter.

“During 2017, we successfully repositioned and strengthened the company on multiple fronts,” said Mitchell J. Krebs, president and chief executive officer. “We upgraded our portfolio and pipeline of assets to reflect a North American focus with the acquisition of the high-grade Silvertip mine in Canada, our announced divestiture of our highest-cost mine in Bolivia and the sales of nine non-core assets. We repositioned our balance sheet to provide greater financial flexibility and materially reduce annual interest expense. By allocating additional capital to near-mine exploration, we expanded our reserve and resource base by double-digit percentage increases, which we anticipate will lead to high-return, long-term value for our stockholders."

For 2018, Coeur said it expects to produce between 36.6 million and 40 million silver-equivalent ounces, consisting of 12.8 million to 14.4 million ounces of silver, 355,000 to 375,000 ounces of gold, and 23 million to 28 million pounds of both zinc and lead.

"2018 should be another pivotal year as we look to commence production at Silvertip by the end of the first quarter, achieve commercial production at Jualin later in the year and sustain our focus on near-mine exploration,” Krebs said. “We also expect to publish updated technical reports for Rochester and Kensington in the coming weeks and for Silvertip in the second half of the year.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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