Friday 2nd December 2022 Font size:

Momentum Builds as Coeur Completes First Full Quarter with All Three New Gold and Silver Mines in Production

Friday, November 5th, 2010

Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) announce strong third quarter financial and operational results driven by its three new long-life gold and silver mines, along with record precious metals prices. This marked the first full quarter with all three new mines in production, leading to accelerating metal sales and cash flow while operating costs per ounce and capital expenditures continue declining.
Third Quarter Highlights:
* Gold production doubled from prior quarter; silver production increased 4%
* Cash operating costs1 declined 40% to $4.87 per silver ounce
* Record metal sales of $118.6 million, up 17% from previous quarter and nearly $30 million over last year’s third quarter
* 58% increase in operating cash flow2 to $34.7 million compared to last quarter
* Capital expenditures declined to its lowest level in over four years
* Operating income jumped to $10.5 million, up from $1.9 million last quarter
* Palmarejo silver production increased 41% to 1.5 million ounces; gold production increased 49% to 29,823 ounces versus the second quarter
o Higher silver and gold grades and larger gold by-product credit led to reduced cash operating costs of $0.15 per silver ounce versus $10.78 during the prior quarter
* San Bartolomé silver production of 1.8 million silver ounces consistent with prior quarter; cash operating costs dropped 9% to $7.05 per silver ounce
* Kensington produced 15,155 gold ounces in its initial quarter
* Expecting full-year silver production of over 17 million ounces; cash operating costs of $5.50 per silver ounce; 135% increase in gold production to approximately 170,000 ounces
“Over the past three years, Coeur has been executing its strategic plan to transition the Company to three new long-life silver and gold mines. Along with exceptionally strong metals prices, the results from the third quarter demonstrate the momentum being created by these new operations,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. “As metal sales and cash flow increase, the Company’s cash operating costs and capital expenditures continue to decline.”
Mr. Wheeler continued, “The third quarter also marked a major milestone for the Company’s Kensington gold mine, as it logged its first full quarter of operations. With a substantial reserve base, exciting exploration potential and record gold prices, Kensington has a very bright future.”
“Finally, our Rochester silver and gold mine in Nevada is experiencing a rebirth as it moves ahead with a planned expansion of mining operations. Just last week, this expansion plan received a boost with the issuance of a positive Decision Record by the Nevada Bureau of Land Management (BLM). This expansion will begin adding to production levels in the fourth quarter of 2011 and will increase total average annual silver and gold production to over 2.4 million ounces and 35,000 ounces, respectively. Rochester will soon become a fourth major contributor along with the Company’s three new mines. Rochester contains a large mineral resource base, which provides for additional opportunities to further expand operations beyond this initial expansion. Since commencing production in 1986, Rochester has produced over 127 million ounces of silver and 1.5 million ounces of gold, making it one of the world’s most prolific silver and gold mines. The Company extends its appreciation to the BLM, the State of Nevada and the Nevada Congressional Delegation for its support and assistance, which will help lead to the creation of 200 new jobs at Rochester,” Mr. Wheeler added.
(Ref 2036)

< go back