Delaware
(State or other jurisdiction
of incorporation or organization)
|
1-8641
(Commission
File Number)
|
82-0109423
(IRS Employer
Identification No.)
|
Emerging Growth Company
|
|
¨
|
Exhibit No.
|
Description
|
Press Release dated January 14, 2019
|
|
COEUR MINING, INC.
|
|
|
Date: January 14, 2019
|
By:
/s/ Thomas S. Whelan
|
|
Name: Thomas S.Whelan
Title: Senior Vice President and Chief Financial Officer
|
|
2018
|
4Q 2018
|
3Q 2018
|
2Q 2018
|
1Q 2018
|
2017
|
4Q 2017
|
Tons milled
|
1,382,471
|
378,389
|
300,116
|
344,073
|
359,893
|
1,498,421
|
389,524
|
Average silver grade (oz/t)
|
6.49
|
5.96
|
6.26
|
6.86
|
6.88
|
5.62
|
6.92
|
Average gold grade (oz/t)
|
0.10
|
0.08
|
0.10
|
0.11
|
0.10
|
0.09
|
0.10
|
Average recovery rate – Ag
|
83.8%
|
84.0%
|
82.2%
|
87.5%
|
81.4%
|
86.0%
|
87.0%
|
Average recovery rate – Au
|
88.9%
|
97.6%
|
88.8%
|
89.9%
|
80.4%
|
90.0%
|
92.0%
|
Ounces Produced
|
|
|
|
|
|
|
|
Silver (000's)
|
7,516
|
1,893
|
1,544
|
2,066
|
2,013
|
7,242
|
2,346
|
Gold
|
122,722
|
31,239
|
27,885
|
33,702
|
29,896
|
121,569
|
37,537
|
Silver equivalent
1
(000's)
|
14,880
|
3,768
|
3,217
|
4,088
|
3,807
|
14,536
|
4,600
|
Silver equivalent
1
(average spot) (000's)
|
17,429
|
4,528
|
3,796
|
4,728
|
4,382
|
16,207
|
5,209
|
Ounces Sold
|
|
|
|
|
|
|
|
Silver (000's)
|
7,229
|
1,534
|
1,572
|
2,092
|
2,031
|
7,586
|
2,343
|
Gold
|
115,592
|
23,667
|
29,830
|
31,207
|
30,888
|
131,743
|
38,953
|
Silver equivalent
1
(000's)
|
14,165
|
2,955
|
3,362
|
3,964
|
3,884
|
15,491
|
4,681
|
Silver equivalent
1
(average spot) (000's)
|
16,566
|
3,530
|
3,981
|
4,557
|
4,479
|
17,301
|
5,313
|
Average realized price per silver ounce
|
$15.77
|
$14.57
|
$14.75
|
$16.49
|
$16.73
|
$16.96
|
$16.57
|
Average realized price per gold ounce
|
$1,140
|
$1,148
|
$1,082
|
$1,162
|
$1,168
|
$1,110
|
$1,139
|
•
|
Fourth quarter gold and silver production increased
12%
and
23%
, respectively, to
31,239
and
1.9 million
ounces compared to the prior quarter. Silver equivalent
1
production was
3.8 million
ounces (
4.5 million
ounces based on average spot prices during the fourth quarter),
17%
higher compared to the third quarter. Year-over-year, gold and silver production increased
1%
and
4%
, respectively
|
•
|
Higher production during the quarter was driven largely by increased throughput as the Company processed ore that was initially scheduled to be processed in the third quarter. This contributed to a one-time increase in reported recoveries due to a reduction of in-circuit inventory; metallurgical recoveries were relatively flat during the quarter
|
•
|
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, providing anticipated additional mill feed to supplement existing ore sources
|
•
|
Approximately
23%
of gold sales in the fourth quarter, or
5,458
ounces, were sold under Palmarejo's gold stream agreement at a price of $800 per ounce. For the full year, a total of
35,807
ounces of gold (
31%
of Palmarejo's gold sales), were sold under this agreement
|
|
2018
|
4Q 2018
|
3Q 2018
|
2Q 2018
|
1Q 2018
|
2017
|
4Q 2017
|
Tons placed
|
16,169,807
|
3,674,566
|
4,061,082
|
4,083,028
|
4,351,131
|
16,440,270
|
4,171,451
|
Average silver grade (oz/t)
|
0.52
|
0.46
|
0.52
|
0.53
|
0.54
|
0.53
|
0.50
|
Average gold grade (oz/t)
|
0.004
|
0.004
|
0.004
|
0.004
|
0.003
|
0.003
|
0.003
|
Ounces Produced
|
|
|
|
|
|
|
|
Silver (000's)
|
5,038
|
1,466
|
1,290
|
1,125
|
1,157
|
4,714
|
1,361
|
Gold
|
54,388
|
15,926
|
14,702
|
12,273
|
11,487
|
51,051
|
18,995
|
Silver equivalent
1
(000's)
|
8,301
|
2,422
|
2,172
|
1,861
|
1,846
|
7,777
|
2,500
|
Silver equivalent
1
(average spot) (000's)
|
9,431
|
2,809
|
2,477
|
2,095
|
2,067
|
8,478
|
2,808
|
Ounces Sold
|
|
|
|
|
|
|
|
Silver (000's)
|
4,855
|
1,391
|
1,248
|
1,097
|
1,119
|
4,931
|
1,457
|
Gold
|
52,789
|
15,339
|
14,257
|
12,030
|
11,163
|
54,642
|
20,002
|
Silver equivalent
1
(000's)
|
8,022
|
2,310
|
2,104
|
1,819
|
1,789
|
8,210
|
2,658
|
Silver equivalent
1
(average spot) (000's)
|
9,118
|
2,683
|
2,400
|
2,048
|
2,004
|
8,961
|
2,983
|
Average realized price per silver ounce
|
$15.50
|
$14.53
|
$14.70
|
$16.47
|
$16.66
|
$16.98
|
$16.58
|
Average realized price per gold ounce
|
$1,261
|
$1,234
|
$1,204
|
$1,297
|
$1,331
|
$1,262
|
$1,279
|
•
|
Silver and gold production during the fourth quarter increased
14%
and
8%
, respectively, to
1.5 million
and
15,926
ounces compared to the prior quarter. Silver equivalent
1
production during the period was
12%
higher quarter-over-quarter at
2.4 million
ounces (
2.8 million
ounces based on average spot prices during quarter)
|
•
|
For the full year, silver production was
5.0 million
ounces while gold production was
54,388
ounces, both
7%
higher than 2017, with silver equivalent
1
production totaling
8.3 million
ounces (
9.4 million
ounces based on average spot prices)
|
•
|
Production was positively impacted by the continued strong performance of both the Stage IV and Stage III leach pads. These positive results outweighed the impact of lower crushing rates during the fourth quarter, which were anticipated following the decommissioning of the 15,000 ton per day ("tpd") in-pit crusher
|
•
|
Installation of an initial high-pressure grinding roll ("HPGR") unit remains on schedule and budget. The concrete foundation for the HPGR is complete and structural erection is scheduled for the end of January. Ore production utilizing the HPGR unit is anticipated to commence in the second quarter, with silver recoveries expected to increase beginning mid-year
|
•
|
Installation of the HPGR unit and a new secondary crusher is expected to result in higher production during the second half of the year compared to the first half
|
|
2018
|
4Q 2018
|
3Q 2018
|
2Q 2018
|
1Q 2018
|
2017
|
4Q 2017
|
Tons placed
|
4,923,774
|
1,644,168
|
1,127,391
|
1,075,820
|
1,076,395
|
4,560,441
|
1,124,785
|
Average gold grade (oz/t)
|
0.022
|
0.020
|
0.023
|
0.023
|
0.022
|
0.027
|
0.029
|
Ounces produced
|
|
|
|
|
|
|
|
Gold
|
76,840
|
16,960
|
19,437
|
22,507
|
17,936
|
95,372
|
27,292
|
Silver (000's)
|
51
|
13
|
13
|
13
|
12
|
64
|
16
|
Gold equivalent
1
|
77,683
|
17,175
|
19,646
|
22,729
|
18,133
|
96,431
|
27,560
|
Ounces sold
|
|
|
|
|
|
|
|
Gold
|
75,572
|
15,306
|
19,874
|
23,053
|
17,339
|
98,237
|
28,975
|
Silver (000's)
|
48
|
11
|
12
|
14
|
11
|
74
|
16
|
Gold equivalent
1
|
76,373
|
15,488
|
20,081
|
23,282
|
17,522
|
99,472
|
29,256
|
Average realized price per gold ounce
|
$1,267
|
$1,247
|
$1,198
|
$1,285
|
$1,341
|
$1,269
|
$1,278
|
•
|
Gold production declined
13%
quarter-over-quarter to
16,960
ounces in the fourth quarter. This was primarily due to the placement of lower grade ore during the quarter as well as temporary percolation issues resulting in slower-than-anticipated recoveries
|
•
|
For the full year, gold production decreased
19%
to
76,840
ounces as a result of unplanned weather-related downtime in the third quarter and timing of leach pad recoveries
|
•
|
Tons placed for the full year reached
4.9 million
tons, up from
4.6 million
in 2017 and 4.3 million in 2016
|
•
|
Production in 2019 is expected to return to levels comparable to prior quarters
|
|
2018
|
4Q 2018
|
3Q 2018
|
2Q 2018
|
1Q 2018
|
2017
|
4Q 2017
|
Tons milled
|
661,731
|
166,310
|
167,964
|
168,751
|
158,706
|
668,727
|
167,631
|
Average gold grade (oz/t)
|
0.19
|
0.23
|
0.17
|
0.16
|
0.17
|
0.18
|
0.22
|
Average recovery rate
|
93.0%
|
93.0%
|
91.8%
|
92.6%
|
94.0%
|
93.5%
|
92.8%
|
Gold ounces produced
|
113,778
|
35,335
|
26,809
|
25,570
|
26,064
|
115,094
|
34,932
|
Gold ounces sold
|
114,778
|
33,202
|
25,648
|
28,165
|
27,763
|
125,982
|
35,634
|
Average realized price per gold ounce
|
$1,247
|
$1,246
|
$1,161
|
$1,269
|
$1,307
|
$1,226
|
$1,244
|
•
|
Commercial production at Jualin was declared on December 1, 2018. The figures shown in the table above include pre-commercial production
|
•
|
Fourth quarter gold production of
35,335
ounces represented a
32%
increase quarter-over-quarter and was slightly higher compared to the same period the prior year, largely driven by additional production from Jualin
|
•
|
Approximately 23,000 tons of development ore and 3,000 tons of stope ore were mined from Jualin during the fourth quarter, yielding production (inclusive of pre-commercial) of nearly 10,500 ounces of gold at a grade of 0.40 ounces per ton, demonstrating the impact that high-grade mill feed can have on the overall production profile of Kensington
|
•
|
Full-year gold production of
113,778
ounces was relatively flat compared to 2017
|
|
2018
|
4Q 2018
|
3Q 2018
|
2Q 2018
|
1Q 2018
|
2017
|
4Q 2017
|
Tons milled
|
86,127
|
38,802
|
28,080
|
14,450
|
4,795
|
—
|
—
|
Average silver grade (oz/t)
|
8.04
|
6.06
|
7.29
|
14.15
|
10.05
|
—
|
—
|
Average zinc grade (%)
|
6.9%
|
5.8%
|
8.0%
|
8.2%
|
6.60
|
—
|
—
|
Average lead grade (%)
|
5.0%
|
3.9%
|
4.6%
|
8.1%
|
7.3%
|
—%
|
—%
|
Average recovery rate – Ag
|
49.1%
|
60.5%
|
47.0%
|
42.3%
|
30.9%
|
—%
|
—%
|
Average recovery rate – Zn
|
56.7%
|
69.1%
|
49.1%
|
57.9%
|
18.7%
|
—%
|
—%
|
Average recovery rate – Pb
|
45.1%
|
54.7%
|
44.4%
|
40.5%
|
21.1%
|
—%
|
—%
|
Produced
|
|
|
|
|
|
|
|
Silver (000's ounces)
|
340
|
142
|
96
|
87
|
15
|
—
|
—
|
Zinc (000's lbs)
|
6,781
|
3,083
|
2,207
|
1,372
|
119
|
—
|
—
|
Lead (000's lbs)
|
3,913
|
1,658
|
1,159
|
949
|
147
|
—
|
—
|
Silver equivalent
1
(000's)
|
943
|
411
|
286
|
217
|
29
|
—
|
—
|
Silver equivalent
1
(average spot) (000's)
|
1,117
|
488
|
342
|
277
|
36
|
—
|
—
|
Sold
|
|
|
|
|
|
|
|
Silver (000's ounces)
|
268
|
127
|
131
|
10
|
—
|
—
|
—
|
Zinc (000's lbs)
|
4,793
|
2,552
|
1,772
|
469
|
—
|
—
|
—
|
Lead (000's lbs)
|
3,089
|
1,444
|
1,645
|
—
|
—
|
—
|
—
|
Silver equivalent
1
(000's)
|
710
|
352
|
320
|
38
|
—
|
—
|
—
|
Silver equivalent
1
(average spot) (000's)
|
837
|
418
|
371
|
52
|
—
|
—
|
—
|
Average realized price per silver ounce
|
$14.03
|
$13.79
|
$14.95
|
$13.01
|
—
|
—
|
—
|
Average realized price per zinc pound
|
$0.83
|
$0.75
|
$0.93
|
$1.08
|
—
|
—
|
—
|
Average realized price per lead pound
|
$0.81
|
$0.83
|
$0.99
|
$—
|
—
|
—
|
—
|
•
|
Silvertip achieved commercial production on September 1, 2018. The figures shown in the above table include pre-commercial production
|
•
|
On December 27, 2018, the Company announced an initial reserve, which was used to support a reserve-based mine plan and economic analysis, as well as an updated resource. The Company will file a technical report in accordance with National Instrument 43-101 by February 10, 2019
|
•
|
Production of silver, zinc and lead during the fourth quarter increased
48%
,
41%
and
42%
, respectively, compared to the prior quarter. The increases were primarily driven by comparatively higher mill throughput rates compared to previous quarters
|
•
|
Although throughput has been lower than originally anticipated, the Company continues progressing towards its target of 1,100 tpd (1,000 metric tonnes per day ("mtpd")) by the end of the first quarter. Month-to-date in January, throughput rates have averaged 695 tpd (631 mtpd)
|
•
|
Recovery rates continued to improve throughout the fourth quarter, albeit remaining at lower than targeted levels. Recovery rates are expected to trend higher as mill consistency improves and the flotation circuit is optimized. Average metal grade is also expected to improve as depleted ore from historic stockpiles is now being replaced with newly-mined underground material
|
•
|
As operations continue to ramp up, the Company remains focused on improvements in four key areas: (i) mill projects targeting higher availability, (ii) maintenance procedures and systems, (iii) supply chain and procurement, and (iv) employee training and development
|
•
|
Construction on the 220-person camp facility was substantially completed by the end of the fourth quarter, with personnel expected to begin moving in during the first quarter of 2019
|
•
|
The Company remains on track to receive approval for the permit amendment application that will allow for a sustained mining and milling rate of 1,100 tpd (1,000 mtpd) on a year-round basis in early 2019
|
|
|
|
|
|
Silver Equivalent
1
|
|
|
Silver
|
Gold
|
Zinc
|
Lead
|
60:1
|
Average Spot
|
|
(K oz)
|
(oz)
|
(K lbs)
|
(K lbs)
|
(K oz)
|
(K oz)
|
Palmarejo
|
7,516
|
122,722
|
—
|
—
|
14,880
|
17,429
|
Rochester
|
5,038
|
54,388
|
—
|
—
|
8,301
|
9,431
|
Wharf
|
51
|
76,840
|
—
|
—
|
4,661
|
6,206
|
Kensington
|
—
|
113,778
|
—
|
—
|
6,827
|
9,190
|
Silvertip
|
340
|
—
|
6,781
|
3,913
|
943
|
1,117
|
Total
|
12,945
|
367,728
|
6,781
|
3,913
|
35,612
|
43,373
|
|
|
|
|
|
Silver Equivalent
1
|
|
|
Silver
|
Gold
|
Zinc
|
Lead
|
60:1
|
Average Spot
|
|
(K oz)
|
(oz)
|
(K lbs)
|
(K lbs)
|
(K oz)
|
(K oz)
|
Palmarejo
|
7,500 - 7,900
|
115,000 - 120,000
|
—
|
—
|
14,400 - 15,100
|
16,782 - 17,586
|
Rochester
|
4,800 - 5,200
|
48,000 - 52,000
|
—
|
—
|
7,680 - 8,320
|
8,674 - 9,397
|
Wharf
|
—
|
85,000 - 90,000
|
—
|
—
|
5,100 - 5,400
|
6,861 - 7,264
|
Kensington
|
—
|
115,000 - 120,000
|
—
|
—
|
6,900 - 7,200
|
9,282 - 9,686
|
Silvertip
|
700 - 1,200
|
—
|
13,000 - 23,000
|
11,000 - 18,000
|
2,030 - 3,480
|
2,515 - 4,316
|
Total
|
13,000 - 14,300
|
363,000 - 382,000
|
13,000 - 23,000
|
11,000 - 18,000
|
36,110 - 39,500
|
44,114 - 48,248
|
1.
|
Silver equivalence assumes silver-to-gold, -lead and -zinc ratios of 60:1, 0.05:1 and 0.06:1, respectively, except where noted as average spot prices. Please see the table below for average applicable spot prices and corresponding ratios.
|
2.
|
Fourth quarter and full-year 2018 production and sales figures include pre-commercial production from Kensington (Jualin) and Silvertip.
|
3.
|
Full-year 2018 production guidance includes pre-commercial production from Kensington (Jualin) and Silvertip.
|
|
2018
|
4Q 2018
|
3Q 2018
|
2Q 2018
|
1Q 2018
|
2017
|
4Q 2017
|
||||||||||||||
Average Silver Spot Price Per Ounce
|
$
|
15.71
|
|
$
|
14.54
|
|
$
|
15.02
|
|
$
|
16.53
|
|
$
|
16.77
|
|
$
|
17.05
|
|
$
|
16.73
|
|
Average Gold Spot Price Per Ounce
|
$
|
1,268
|
|
$
|
1,226
|
|
$
|
1,213
|
|
$
|
1,306
|
|
$
|
1,329
|
|
$
|
1,257
|
|
$
|
1,275
|
|
Average Silver to Gold Spot Equivalence
|
81:1
|
|
84:1
|
|
81:1
|
|
79:1
|
|
79:1
|
|
74:1
|
|
76:1
|
|
|||||||
Average Zinc Spot Price Per Pound
|
$
|
1.33
|
|
$
|
1.19
|
|
$
|
1.15
|
|
$
|
1.41
|
|
$
|
1.55
|
|
$
|
1.31
|
|
$
|
1.47
|
|
Average Silver to Zinc Spot Equivalence
|
0.08:1
|
|
0.08:1
|
|
0.08:1
|
|
0.09:1
|
|
0.09:1
|
|
0.08:1
|
|
0.09:1
|
|
|||||||
Average Lead Spot Price Per Pound
|
$
|
1.02
|
|
$
|
0.89
|
|
$
|
0.95
|
|
$
|
1.08
|
|
$
|
1.14
|
|
$
|
1.05
|
|
$
|
1.13
|
|
Average Silver to Lead Spot Equivalence
|
0.06:1
|
|
0.06:1
|
|
0.06:1
|
|
0.07:1
|
|
0.07:1
|
|
0.06:1
|
|
0.07:1
|
|