Coeur Mining Strong Operational Results To Continue 

CHICAGO - Coeur Mining, Inc. reported third quarter 2019 production of 99,782 ounces of gold, 3.0 million ounces of silver, 4.2 million pounds of zinc and 4.5 million pounds of lead. Metal sales for the quarter totaled 100,407 ounces of gold, 3.0 million ounces of silver, 4.1 million pounds of zinc and 4.3 million pounds of lead. The Company is reaffirming full-year 2019 production guidance of 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. 

Quarterly Production Results "As anticipated, our third quarter operational results reflected the beginning of a strong second half that is expected to continue throughout the remainder of the year," said Mitchell J. Krebs, President and Chief Executive Officer. "Wharf bounced back from a slow first half to deliver a strong quarter, while Palmarejo and Kensington generated solid operational results to help drive a 15% quarter-over-quarter increase in Companywide gold production. At Rochester, we are beginning to see initial results from the newly-installed high-pressure grinding roll (HPGR) unit that are consistent with third-party test work and our internal expectations." 

"At Silvertip, quarterly production rates declined as we took advantage of favorable whether to extend planned downtime to complete several key surface projects. Additionally, we bolstered the internal and external resources at site to address remaining mill projects that will allow for a higher and more sustained level of mill availability," continued Mr. Krebs. "Overall, we expect to achieve production guidance at each of our operations with the Companywide goal of returning to positive free cash flow in 2019." 

Highlights: Third quarter gold production increased 13% to 31,779 ounces, while silver production remained consistent at approximately 1.7 million ounces compared to the prior quarter. Year-over-year, gold and silver production increased by approximately 14% and 11%, respectively; Higher gold production during the quarter was primarily driven by the improvement in average grade, partially offset by lower recoveries. Consistent quarter-over-quarter silver production reflected higher grade offset by slightly lower recoveries and mill throughput. Lower recoveries during the quarter reflect additional in-circuit inventory and adjustments on final settlements of dore sales; Production began at La Nacion, located within the Independencia mine complex, in the beginning of the third quarter. La Nacion is anticipated to continue ramping up through the end of 2019 as infrastructure projects are completed, adding approximately 400 tons per day of additional mill feed; Commissioning of a new thickener was completed on-budget and on-schedule in the third quarter. The project is expected to increase metallurgical recoveries for both gold and silver by approximately 2% and has an estimated one-year payback; Approximately 33% of gold sales in the third quarter, or 10,785 ounces, were sold under Palmarejo's gold stream agreement at a price of $800 per ounce. Full-year gold sales under the stream agreement are expected to remain around similar levels; & Full-year 2019 production guidance remains unchanged at 95,000 - 105,000 ounces of gold and 6.5 - 7.2 million ounces of silver.

Tons placed in the third quarter decreased 10% quarter-over-quarter and 38% year-over-year to approximately 2.5 million tons. Fewer tons placed reflects the commissioning of the new three-stage crushing circuit during the quarter. Silver production remained consistent quarter-over-quarter at approximately 1.0 million ounces, while gold production decreased 8% to 7,901 ounces. Year-over-year, silver and gold production decreased 24% and 46%, respectively. Silver production was impacted by slightly lower average grade, while gold production decreased largely due to fewer tons placed. Side slope leaching on the Stage III and Stage IV leach pads as well as the stacking of run-of-mine material early in the quarter were used to supplement production. Initial recovery results from bottle roll and column tests on HPGR-crushed ore observed during the quarter were encouraging and in-line with original expectations. The Company plans to continue monitoring and benchmarking results against third-party test work to further validate recovery rates associated with the HPGR unit. Production in the fourth quarter is anticipated to benefit from the stacking of additional tons, reflecting a full quarter integrating the new crushing circuit. The Company began stacking HPGR-crushed material close to the liner of the Stage IV leach pad in September, with breakthrough expected later this month. Additional run-of-mine material may be used opportunistically to supplement production through the remainder of 2019; & 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. Commercial production at Jualin was declared on December 1, 2018. Continued strong gold production during the third quarter totaled 34,156 ounces, consistent with the prior period. Year-over-year gold production increased 27%. Jualin accounted for approximately 15% of Kensington’s third quarter production, compared to approximately 17% in the prior quarter. Jualin is now anticipated to account for approximately 15% of Kensington's total production in 2019, largely due to an expected increase in production from the Kensington Main deposit. During the quarter, 9,784 ounces were sold under Kensington's $25.0 million prepayment agreement. Coeur anticipates a working capital outflow of approximately $15.0 million associated with these sales in the third quarter and expects the remaining $10.0 million working capital outflow during the fourth quarter. 

Gold production in the third quarter increased 65% quarter-over-quarter and 33% year-over-year to 25,946 ounces. Higher production during the quarter was largely driven by the placement of additional tons and improved grade. Tons placed increased 63% quarter-over-quarter to 1.5 million, while average gold grade increased 17% to 0.027 ounces per ton. Operational results reflect better crusher performance and improved weather conditions. Strong crusher performance and the placement of higher-grade ore are expected to drive solid production results in the fourth quarter. The Company is maintaining full-year 2019 production guidance of 82,000 - 87,000 ounces of gold 

Silvertip achieved commercial production on September 1, 2018. Third quarter silver production decreased 13% to 0.3 million ounces quarter-over-quarter, while zinc and lead production decreased 21% and 10%, respectively, to 4.2 million pounds of zinc and 4.5 million pounds of lead. Lower production was largely driven by planned and unplanned downtime, which impacted mill availability during the quarter. Planned downtime was extended to take advantage of favorable weather conditions to address key projects to improve mill availability. Additional third-party maintenance resources were added during the quarter to accelerate mill stabilization efforts. The Company also deployed a coordinated human resources strategy to further enhance the operation's leadership team, improve recruitment and retention efforts, and bolster training of mill operators. These efforts, combined with the accelerated mill maintenance plan, have resulted in significant improvements in mill availability late in the third quarter and month-to-date. 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 in the final stages of the approval process and expected to be received in the fourth quarter.