UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 11, 2019
Coeur Mining, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation or organization)
1-8641
(Commission
File Number)
82-0109423
(IRS Employer
Identification No.)

104 S. Michigan Avenue
Suite 900
Chicago, Illinois 60603
(Address of Principal Executive Offices)
(312) 489-5800
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):
[ ]     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock (par value $.01 per share)
CDE
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
 
¨


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨





Item 2.02.     Results of Operations and Financial Condition.
On July 11, 2019, Coeur Mining, Inc. issued a press release announcing production and certain sales results for the quarter ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The press release shall be deemed furnished, not filed, for purposes of this Current Report on Form 8-K.
Item 8.01.      Other Events.
Pursuant to a privately-negotiated agreement dated June 28, 2019, the Company exchanged (the “Exchange”) $2.0 million aggregate principal amount of its 5.875% Senior Notes due 2024 for approximately 480,600 shares of its common stock, par value $0.01 (the “Shares”). The Exchange was completed, and the Shares were issued, in early July 2019. The Shares were issued pursuant to the exemption from the registration requirements afforded by Section 3(a)(9) of the Securities Act of 1933, as amended.
Item 9.01.      Financial Statements and Exhibits.
(d)    List of Exhibits
Exhibit No.
Description
Exhibit 99.1
Press Release dated July 11, 2019





Exhibit Index

Exhibit No.          Description
Exhibit 99.1          Press Release dated July 11, 2019



























































SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
COEUR MINING, INC.
 
 
Date: July 11, 2019
By: /s/ Thomas S. Whelan
 
Name:    Thomas S.Whelan
Title:    Senior Vice President and Chief Financial Officer



                                        
                                                    

NEWS RELEASE              IMAGE0A75.JPG
Coeur Reports Second Quarter 2019 Production and Sales Results
Chicago, Illinois - July 11, 2019 - Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today announced second quarter 2019 production of 86,584 ounces of gold, 3.1 million ounces of silver, 5.3 million pounds of zinc and 5.0 million pounds of lead. Metal sales for the quarter were 86,385 ounces of gold, 3.0 million ounces of silver, 5.3 million pounds of zinc and 5.2 million pounds of lead.
As disclosed on May 1, 2019, the Company expects to produce 334,000 - 372,000 ounces of gold, 12.2 - 14.7 million ounces of silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds of lead in 2019.

Quarterly Production Results
A20192QPRODUCTIONCHARTA03.JPG
"Our second quarter operational results were in-line with our expectations and reflect solid, double-digit production increases across all four metals we produce," said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. "We continue to deliver quarter-over-quarter improvements at Silvertip, which is a top initiative for the Company this year. Production increased at Palmarejo due to higher throughput and recovery rates, while Kensington continued to benefit from higher grades from the Jualin deposit. Wharf is expected to benefit from a combination of higher grades and the placement of additional ore during the second half to achieve its full-year plan."
"At Rochester, commissioning of the high-pressure grinding roll ("HPGR") unit continues. We expect the new crushing configuration to begin crushing ore in early August, which is approximately four weeks later than originally scheduled due to a new secondary crusher unit that required replacement," continued Mr. Krebs. "Overall, we remain confident in our ability to achieve our full-year production guidance at each of our operations."


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Operations
Second quarter production and sales highlights for each of Coeur's operations are provided below.
Palmarejo, Mexico
 
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
447,727
378,987
378,389
300,116
344,073
Average gold grade (oz/t)
0.07
0.07
0.08
0.10
0.11
Average silver grade (oz/t)
4.74
4.64
5.96
6.26
6.86
Average recovery rate – Au
87.7%
83.4%
97.6%
88.8%
89.9%
Average recovery rate – Ag
81.8%
72.8%
84.0%
82.2%
87.5%
Ounces Produced
 
 

 
 
Gold
28,246
23,205
31,239
27,885
33,702
Silver (000's)
1,735
1,278
1,893
1,544
2,066
Ounces Sold
 
 

 
 
Gold
28,027
27,394
23,667
29,830
31,207
Silver (000's)
1,709
1,405
1,534
1,572
2,092
Average realized price per gold ounce
$1,210
$1,154
$1,148
$1,082
$1,162
Average realized price per silver ounce
$14.86
$15.39
$14.57
$14.75
$16.49
•
Second quarter gold and silver production increased 22% and 36% , respectively, to 28,246 and 1.7 million ounces compared to the prior quarter. Year-over-year, gold and silver production decreased approximately 16%
•
Higher production during the quarter was primarily driven by an 18% increase in mill throughput as well as improved access to higher-grade secondary stopes with better recoveries due to the maintenance and expansion of the cemented rockfill plant, which was completed in the prior quarter
•
Production began at the La Nación deposit, located between the Independencia and Guadalupe underground mines, shortly after the end of the second quarter. Production at La Nación is anticipated to continue ramping up during the third quarter as infrastructure projects are completed, adding approximately 400 tons per day of additional mill feed
•
Installation of a new thickener remains on budget and on schedule with commissioning anticipated to begin at the end of July. The project is expected to increase metallurgical recoveries for both gold and silver by approximately 2% and has an estimated one-year payback
•
Approximately 22% of gold sales in the second quarter, or 6,190 ounces, were sold under Palmarejo's gold stream agreement at a price of $800 per ounce
•
Full-year 2019 production guidance remains unchanged at 95,000 - 105,000 ounces of gold and 6.5 - 7.2 million ounces of silver



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Rochester, Nevada
 
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons placed
2,786,287
2,667,559
3,674,566
4,061,082
4,083,028
Average silver grade (oz/t)
0.45
0.46
0.46
0.52
0.53
Average gold grade (oz/t)
0.003
0.003
0.004
0.004
0.004
Ounces Produced
 
 

 
 
Silver (000's)
971
960
1,466
1,290
1,125
Gold
8,609
8,256
15,926
14,702
12,273
Ounces Sold
 
 

 
 
Silver (000's)
962
1,000
1,391
1,248
1,097
Gold
8,642
8,511
15,339
14,257
12,030
Average realized price per silver ounce
$14.83
$15.31
$14.53
$14.70
$16.47
Average realized price per gold ounce
$1,295
$1,299
$1,234
$1,204
$1,297
•
Silver production remained relatively flat quarter-over-quarter at approximately 1.0 million ounces, while gold production increased 4% to 8,609 ounces. Year-over-year, silver and gold production decreased 14% and 30% , respectively
•
Higher gold production was driven by the timing of leach pad recoveries as well as improved weather conditions. Tons placed also increased in the second quarter due to the stacking of additional run-of-mine material, despite the idling of the X-Pit crusher during May and June for commissioning of the new crusher configuration
•
Commissioning of the new crusher configuration, including the HPGR unit, continued through the end of the quarter. A new secondary crusher unit failed late in the second quarter, and is in the process of being replaced by an idle tertiary crushing unit located on-site
•
The replacement of the secondary crusher unit is expected to delay the commissioning of the crushing circuit, including the HPGR unit, by approximately four weeks. Overall crushing rates, silver recovery expectations and capital requirements remain in-line with prior estimates
•
The Company is maintaining full-year 2019 production guidance of 4.2 - 5.0 million ounces of silver and 40,000 - 50,000 ounces of gold


3
                                        
                                                    

Kensington, Alaska
 
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
160,510
164,332
166,310
167,964
168,751
Average gold grade (oz/t)
0.23
0.20
0.23
0.17
0.16
Average recovery rate
93.0%
90.2%
93.0%
91.8%
92.6%
Gold ounces produced
34,049
29,973
35,335
26,809
25,570
Gold ounces sold
34,415
31,335
33,202
25,648
28,165
Average realized price per gold ounce
$1,312
$1,286
$1,246
$1,161
$1,269
•
Commercial production at Jualin was declared on December 1, 2018. The figures shown in the table above include pre-commercial production
•
Gold production during the second quarter increased 14% to 34,049 ounces compared to the prior quarter. Year-over-year gold production increased 33% . Average gold grade was approximately 15% higher quarter-over-quarter and 44% higher year-over-year driven by additional ore feed from the high-grade Jualin deposit
•
Jualin accounted for approximately 17% of Kensington’s second quarter production, compared to approximately 10% in the prior quarter. For the full year, Jualin is expected to account for approximately 20% of Kensington's total production
•
Full-year 2019 production guidance is unchanged at 117,000 - 130,000 ounces of gold

Wharf, South Dakota
 
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons placed
919,435
1,090,510
1,644,168
1,127,391
1,075,820
Average gold grade (oz/t)
0.023
0.020
0.020
0.023
0.023
Ounces produced
 
 

 
 
Gold
15,680
16,902
16,960
19,437
22,507
Silver (000's)
12
13
13
13
13
Ounces sold
 
 

 
 
Gold
15,301
18,086
15,306
19,874
23,053
Silver (000's)
12
14
11
12
14
Average realized price per gold ounce
$1,311
$1,317
$1,247
$1,198
$1,285
•
Gold production in the second quarter declined 7% quarter-over-quarter and 30% year-over-year to 15,680 ounces
•
Lower production was largely driven by inclement weather, which diluted leach pad solutions, as well as lower crusher throughput during the quarter. The Company has engaged a third party contractor to crush an additional 300,000 tons of ore primarily during the third quarter to supplement operating activities
•
Production is also anticipated to increase for the remainder of 2019 due to the placement of higher-grade ore late in the second quarter and is expected to continue during the third and fourth quarters
•
The Company is maintaining full-year 2019 production guidance of 82,000 - 87,000 ounces of gold

4
                                        
                                                    

Silvertip, British Columbia
 
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
59,689
62,051
38,802
28,080
14,450
Average silver grade (oz/t)
7.48
5.50
6.06
7.29
14.15
Average zinc grade (%)
7.5%
5.9%
5.8%
8.0%
8.2%
Average lead grade (%)
5.4%
3.7%
3.9%
4.6%
8.1%
Average recovery rate – Ag
77.0%
69.9%
60.5%
47.0%
42.3%
Average recovery rate – Zn
59.1%
50.5%
69.1%
49.1%
57.9%
Average recovery rate – Pb
77.3%
66.8%
54.7%
44.4%
40.5%
Produced
 
 

 
 
Silver (000's ounces)
344
239
142
96
87
Zinc (000's lbs)
5,322
3,719
3,083
2,207
1,372
Lead (000's lbs)
4,980
3,077
1,658
1,159
949
Sold
 
 

 
 
Silver (000's ounces)
365
215
127
131
10
Zinc (000's lbs)
5,303
4,723
2,552
1,772
469
Lead (000's lbs)
5,186
2,748
1,444
1,645
—
Average realized price per silver ounce, gross
$15.18
$14.98
$15.54
$14.62
$16.31
Treatment and refining charges per silver ounce
$1.18
$1.24
$1.38
$3.34
$3.30
Average realized price per silver ounce, net
$14.00
$13.74
$14.16
$11.28
$13.01
Average realized price per zinc pound, gross
$0.83
$1.50
$1.07
$1.20
$1.35
Treatment and refining charges per zinc pound
$0.34
$0.31
$0.24
$0.27
$0.27
Average realized price per zinc pound, net
$0.49
$1.19
$0.83
$0.93
$1.08
Average realized price per lead pound, gross
$0.87
$0.92
$0.87
$0.97
$—
Treatment and refining charges per lead pound
$0.05
$0.06
$0.07
$0.07
$—
Average realized price per lead pound, net
$0.82
$0.86
$0.80
$0.90
$—
•
Silvertip achieved commercial production on September 1, 2018. The figures shown in the above table include pre-commercial production
•
Second quarter silver, zinc and lead production increased 44% , 43% and 62% , respectively, compared to the prior quarter, to 0.3 million ounces of silver, 5.3 million pounds of zinc and 5.0 million pounds of lead
•
Despite a 4% quarter-over-quarter decrease in mill throughput, increased production was driven by significantly higher feed grades and recovery rates across all metals
•
The Company continues to execute key projects targeting mill availability, which are expected to drive further operational improvements throughout the remainder of the year. Recovery rates continue to trend upward, with recoveries averaging approximately 81%, 63% and 82% for silver, zinc and lead, respectively, during June
•
The permit amendment application to operate at a year-round mining and milling rate of 1,100 tons (1,000 metric tonnes) per day is expected to be received during the third quarter, which is later than originally expected, but does not have an impact on planned operations
•
Full-year 2019 production guidance is unchanged at 1.5 - 2.5 million ounces of silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds of lead

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2019 Production Guidance
Coeur's 2019 production guidance remains unchanged from its guidance published on May 1, 2019.
 
Gold
Silver
Zinc
Lead
 
(oz)
(K oz)
(K lbs)
(K lbs)
Palmarejo
95,000 - 105,000
6,500 - 7,200
—
—
Rochester
40,000 - 50,000
4,200 - 5,000
—
—
Kensington
117,000 - 130,000
—
—
—
Wharf
82,000 - 87,000
—
—
—
Silvertip
—
1,500 - 2,500
25,000 - 40,000
20,000 - 35,000
Total
334,000 - 372,000
12,200 - 14,700
25,000 - 40,000
20,000 - 35,000


Financial Results and Conference Call
Coeur will report its second quarter financial results on August 7, 2019 after the New York Stock Exchange closes for trading. There will be a conference call on August 8, 2019 at 11:00 a.m. Eastern Time.

Dial-In Numbers:        (855) 560-2581 (U.S.)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID:        Coeur Mining

Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Terry F. D. Smith, Senior Vice President of Operations, Hans J. Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through August 22, 2019.

Replay numbers:        (877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:        101 32 149


About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Cautionary Statement
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated production, results, recoveries, mining rates, throughput, operations at Palmarejo, Rochester, Kensington, Wharf and Silvertip, timing of obtaining permit amendment approval for Silvertip and commissioning of the new crushing circuit at Rochester. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the

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risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold, silver, zinc, and lead and a sustained lower price environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of mineral reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, the loss or insolvency of any third-party smelter or refiner with whom Coeur does business, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

Christopher Pascoe, Coeur's Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur's mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur's properties as filed on SEDAR at sedar.com.

Average Spot Prices
 
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Average Silver Spot Price Per Ounce
$
14.88

$
15.57

$
14.54

$
15.02

$
16.53

Average Gold Spot Price Per Ounce
$
1,309

$
1,304

$
1,226

$
1,213

$
1,306

Average Zinc Spot Price Per Pound
$
1.25

$
1.23

$
1.19

$
1.15

$
1.41

Average Lead Spot Price Per Pound
$
0.85

$
0.92

$
0.89

$
0.95

$
1.08


For Additional Information
Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, IL 60603
Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com

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