Expansion Initiatives At Palmarejo, Rochester And Kensington On Schedule

 

CHICAGO - Coeur Mining, Inc. reported first quarter 2017 financial results, achieving $206.1 million of revenue, which represented increases of 29% quarter-over-quarter and 39% year-over-year. Net income during the first quarter was $18.7 million and adjusted net income was $7.0 million.

“Coeur delivered a solid first quarter with strong earnings and cash flows, affirming the steps we have taken to reposition our portfolio and balance sheet," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "Rising production levels at our Palmarejo mine and higher metal sales more than offset the impact of record rainfall at our Rochester mine in Nevada and persistent drought conditions at our San Bartolome mine in Bolivia. Companywide costs also continued to trend lower with first quarter metrics coming in well below full-year guidance. Combined with considerable interest savings from recent balance sheet improvements, we reported significantly higher earnings and cash flows compared to the same period last year.

"Near-mine and early-stage exploration programs have been accelerated as planned with 17 drill rigs active at the end of the quarter compared to three a year earlier. In addition to the encouraging drill results we have seen at Palmarejo, we are nearing completion of a 25,000 meter drill program at La Preciosa to support a revised PEA expected later this year targeting a potential smaller, higher-grade, lower capital silver-gold operation. Concurrent with our increased exploration activities, our expansion initiatives at Palmarejo, Rochester and Kensington remain on schedule and on budget. At Palmarejo, we are on track to achieve 50% production increases this year from higher-grade underground operations. At Rochester, we are completing the last element of a multi-year expansion effort to position the mine for strong and sustainable cash flow. At Kensington, we expect higher-grade ore from the Jualin deposit to boost production and further reduce unit costs starting late this year. This strong execution continues to support our trajectory toward a higher-margin, higher cash flowing precious metals mining company."