Coeur Mining Posts Loss During Third Quarter
(Kitco News) - CoeurMining, Inc. (NYSE: CDE) posted a loss in the third quarter on lower metalsprices and a dip in production due to temporary factors at two mines, thecompany said late Wednesday.
Coeurlisted a net loss from continuing operations of $53 million, or 29 cents pershare, compared to a loss of $11.7 million, or 7 cents, in the same period of2017. The July-September results included a $30.8 million non-cash write-down.
Excludingspecial items, the company listed an adjusted net loss of $19.7 million, or 11cents, compared to an adjusted loss of $15.3 million, or 9 cents, in the year-agoquarter.
“Third-quarterresults were impacted by weak metals prices and temporarily lower production atour Palmarejo and Wharf mines due to one-time events,” said Mitchell J. Krebs,president and chief executive officer. “Our Rochester operation was thestandout performer with strong production growth and further cost reductions.In addition, the team at Rochester has commenced work on the installation ofthe first HPGR crusher, which is expected to boost silver recoveries andfurther reduce costs starting next year.”
Palmarejo’sresults were impacted by 17 days of unplanned downtime due to fatalities and anearby road blockade, with operations since returning to normal levels. Wharf’sresults were affected by weather-related events. Mining and crushing rates havesince increased, leading to higher expected fourth-quarter production, Coeursaid.
Rochestersilver production rose to 1.3 million ounces from 1.1 million a year ago, whilegold output climbed to 14,702 ounces from 10,955.
Company-widesilver production slipped to 2.9 million ounces from 3 million in the year-agoquarter, while gold output fell to 87,539 from 93,293. The average realizedsilver price was $14.68, down from $16.86 a year ago. The average realized goldprice was $1,150, down from $1,240.
All-insustaining costs of $14.45 and $14.50 per average spot silver-equivalent ouncefor the third quarter and year-to-date, respectively, were below the full-yearguidance range of $14.75 to $15.25 per, Coeur said.
“Importantly,we remain on-track to achieve full-year production and cost guidance due tostrong expected fourth-quarter performance at each of our operations, which weexperienced during the month of October,” Krebs said.
For2018, silver output seen at 13 million to 14.3 million and gold output at363,000 to 382,000. The company also mines zinc and lead.
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