Mining News: News Nuggets: Coeur reports lower costs, Jualin progress
Coeur Mining Inc. Nov. 2 reported that it produced 3.8 million ounces of silver and 85,769 ounces of gold, or 9 million silver-equivalent ounces during the third quarter 2015. For the quarter, Coeur’s revenue was US$162.6 million; adjusted earnings before interest, taxes, depreciation, and amortization was US$31.4 million; adjusted net loss was US16 cents per share; and cash flow from operating activities was US$36.2 million. The company sold 9.5 million silver-equivalent ounces – 91,118 ounces of gold and 4.0 million ounces of silver – during the third quarter. Adjusted costs applicable to sales per-silver-equivalent-ounce was US$12.07, down 4 percent from the second quarter and 15 percent compared with the same period last year (equivalence calculated based on a 60:1 ratio). Likewise, adjusted all-in sustaining costs fell 9 percent from the second quarter and 17 percent from the same period in 2014 to US$15.17 per silver-equivalent ounce (equivalence calculated based on a 60:1 ratio). At Sept. 30, Coeur had US$205.7 million in cash, cash equivalents, and short-term investments. “Our third-quarter results provide further evidence that our strategic initiatives are dramatically reshaping the company,” said Coeur President and CEO Mitchell Krebs. The Kensington Mine in Southeast Alaska produced 28,799 ounces of gold during the third quarter, down about 6 percent from the 30,733 ounces produced during the same period last year. Adjusted costs applicable to sales per ounce of Kensington gold increased 13 percent to US$842 in the third quarter, mainly due to the timing of certain maintenance costs and a 23 percent decline in ounces sold. Development of the decline into the Jualin deposit has advanced about 700 feet since work began in early August and underground drilling at the high-grade deposit is expected to begin in early 2016. “Currently, Jualin is estimated to contain about 289,000 tons of inferred resources with an average grade of 0.62 ounces per ton, which is over triple Kensington’s average reserve grade,” explained Krebs. “Once we gain better access from underground, we will begin to more efficiently drill Jualin to better define and hopefully expand this new high-grade discovery before mining begins in 2017.”
- Shane Lasley
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