Coeur Mining Posts Loss During Third Quarter
Coeur listed a net loss from continuing operations of $53 million, or 29 cents per share, compared to a loss of $11.7 million, or 7 cents, in the same period of 2017. The July-September results included a $30.8 million non-cash write-down.
Excluding special items, the company listed an adjusted net loss of $19.7 million, or 11 cents, compared to an adjusted loss of $15.3 million, or 9 cents, in the year-ago quarter.
“Third-quarter results were impacted by weak metals prices and temporarily lower production at our Palmarejo and Wharf mines due to one-time events,” said Mitchell J. Krebs, president and chief executive officer. “Our Rochester operation was the standout performer with strong production growth and further cost reductions. In addition, the team at Rochester has commenced work on the installation of the first HPGR crusher, which is expected to boost silver recoveries and further reduce costs starting next year.”
Palmarejo’s results were impacted by 17 days of unplanned downtime due to fatalities and a nearby road blockade, with operations since returning to normal levels. Wharf’s results were affected by weather-related events. Mining and crushing rates have since increased, leading to higher expected fourth-quarter production, Coeur said.
Rochester silver production rose to 1.3 million ounces from 1.1 million a year ago, while gold output climbed to 14,702 ounces from 10,955.
Company-wide silver production slipped to 2.9 million ounces from 3 million in the year-ago quarter, while gold output fell to 87,539 from 93,293. The average realized silver price was $14.68, down from $16.86 a year ago. The average realized gold price was $1,150, down from $1,240.
All-in sustaining costs of $14.45 and $14.50 per average spot silver-equivalent ounce for the third quarter and year-to-date, respectively, were below the full-year guidance range of $14.75 to $15.25 per, Coeur said.
“Importantly, we remain on-track to achieve full-year production and cost guidance due to strong expected fourth-quarter performance at each of our operations, which we experienced during the month of October,” Krebs said.
For 2018, silver output seen at 13 million to 14.3 million and gold output at 363,000 to 382,000. The company also mines zinc and lead.