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Coeur d'Alene Mines Offers 2012 Highlights, Gives 2013 Production Guidance

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Coeur d'Alene Mines Corporation (NYSE: CDE) produced 3.8 million ounces of silver and 60,775 ounces of gold in the fourth quarter of 2012 and 18.0 million ounces of silver and an all-time high 226,491 ounces of gold for the full year 2012. On an unaudited basis, Coeur expects 2012 metal sales to total $890 - $900 million and has provided other key financial highlights in Table 2 below.

Table 1: Fourth Quarter and 2012 Production

(silver ounces in thousands) 4Q 2012 4Q 2011 Quarter Variance 2012 2011 Year Variance Silver Gold Silver Gold Silver Gold Silver Gold Silver Gold Silver Gold Palmarejo 1,555 19,998 2,690 34,108 (42 %) (41 %) 8,236 106,038 9,042 125,071 (9 %) (15 %) San Bartolomé 1,343 — 1,997 — (33 %) n.a. 5,930 — 7,501 — (21 %) n.a. Rochester 828 12,060 374 1,993 121 % 505 % 2,802 38,071 1,392 6,276 101 % 507 % Martha — — 130 144 n.a. n.a. 323 257 530 615 (39 %) (58 %) Kensington — 28,717 — 13,299 n.a. 116 % — 82,125 — 88,420 n.a. (7 %) Endeavor 106 — 112 — (5 %) n.a. 734 — 613 — 20 % n.a. Total 3,832 60,775 5,303 49,544 (28 %) 23 % 18,025 226,491 19,078 220,382 (6 %) 3 %

Table 2: Key Unaudited 2012E Financial Highlights

(millions, except average realized prices) 4Q 2012E 4Q 2011A 2012E 2011A Avg. realized price per ounce - silver $32.52/oz $30.87/oz $30.92/oz $35.15/oz Avg. realized price per ounce - gold $1,709/oz $1,674/oz $1,665/oz $1,558/oz Sales of metal $202 - $207 $247 $890 - $900 $1,021 Production costs applicable to sales $105 - $115 $109 $450 - $460 $420 Administrative & general expenses $8 - $10 $9 $34 - $37 $31 Exploration expenses $5 - $7 $8 $26 - $28 $19 Pre-development, care, maintenance and other $(1) - $3 $2 $5 - $10 $19 Capital expenditures $20 - $25 $40 $110 - $120 $120

Fourth Quarter 2012 and Full Year 2012 Production

2012 gold production of 226,491 ounces exceeded Company guidance due to strong fourth quarter performance from its Rochester silver and gold operation in Nevada and its Kensington gold mine in Alaska. 2012 silver production of 18.0 million ounces reflects significant production growth at Rochester, which was offset by lower grade ore in the second half of the year at its Palmarejo silver and gold mine in Mexico and its San Bartolomé silver operation in Bolivia.

During the fourth quarter of 2012, Palmarejo produced 1.6 million ounces of silver and 19,998 ounces of gold compared with 1.8 million ounces of silver and 23,702 ounces of gold in the third quarter of 2012. Underground operations at Palmarejo resumed normal mining rates late in the fourth quarter from both the 108 and 76 zones according to plan after experiencing temporary unfavorable ground conditions in the upper level of the 76 zone during September of 2012. Silver grades from open pit operations are expected to increase throughout 2013 as mining transitions to the new phase of the pit.

2013 Guidance

Coeur estimates that it will produce 18.0 - 19.5 million ounces of silver in 2013 while gold production is expected to increase significantly in 2013 compared to 2012 to 250,000 - 265,000 ounces due to higher production levels at the Company's Kensington and Rochester operations.

2013 cash operating costs1 after by-product credit (assuming the current gold price level of approximately $1,650 per ounce), are expected to be $8.00 - $9.00 per silver ounce. Kensington's 2013 cash operating costs1 are expected to decline significantly to $900 - $950 per gold ounce. Higher silver and gold production and corresponding lower cash operating costs per ounce of silver and gold are expected in the second half of 2013 compared to the first half of the year.

Table 3: 2013 Production Outlook

(silver ounces in thousands) Country Silver Gold Palmarejo Mexico 7,700-8,300 98,000-105,000 San Bartolomé Bolivia 5,300-5,700 — Rochester Nevada, USA 4,500-4,900 44,000-46,000 Endeavor Australia 500-600 — Kensington Alaska, USA — 108,000-114,000 Total 18,000-19,500 250,000-265,000

The Company expects Palmarejo to produce 7.7 - 8.3 million ounces of silver and 98,000 - 105,000 ounces of gold in 2013, with 30% - 40% of the estimated full year mill throughput of approximately 2.2 million tons derived from underground mining and the remainder from the open pit. Approximately 60% of the underground ore tons mined are expected to come from the 76 Clavo zone, including the lower area, which has been expanded at depth from definition drilling completed in 2012, and the remainder from the 108 Clavo zone.

Posted-In: News Guidance

 

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