NEWS RELEASE             image0a79.jpg
Coeur Reports Fourth Quarter and Full-Year 2019 Production and Sales Results
Chicago, Illinois - January 16, 2020 - Coeur Mining, Inc. (the "Company" or "Coeur") (NYSE: CDE) today announced fourth quarter 2019 production of 94,716 ounces of gold, 3.2 million ounces of silver, 3.9 million pounds of zinc and 4.0 million pounds of lead. Full-year 2019 production totaled 359,418 ounces of gold, 11.7 million ounces of silver, 17.1 million pounds of zinc and 16.6 million pounds of lead.
Metal sales for the fourth quarter included 95,532 ounces of gold, 3.2 million ounces of silver, 4.1 million pounds of zinc and 4.2 million pounds of lead. For the full year, metal sales totaled 367,650 ounces of gold, 11.9 million ounces of silver, 18.2 million pounds of zinc and 16.5 million pounds of lead.
The Company expects to issue full-year 2020 production and cost guidance in conjunction with the release of its fourth quarter and full-year 2019 financial results on February 19, 2020.

Quarterly Production Results
a20194qproductioncharta03.jpg
"Coeur's operations delivered solid gold production in 2019, highlighted by a strong second half of the year," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "Palmarejo was our best performing operation last year, while Kensington's gold production increased 12% year-over-year. Wharf's gold production was 58% higher in the second half of 2019 compared to the first half, leading to a 10% year-over-year production increase."
"Rochester's fourth quarter gold production was 35% higher than the prior quarter, but lower crushing rates led to full-year silver and gold production below expectations," continued Mr. Krebs. "Importantly, we continue to see encouraging results that support the investment in high-pressure grinding roll ("HPGR") technology to accelerate silver recovery rates and enhance the mine's overall economics."
"At our Silvertip operation, we continued to execute our plans to improve mill availability and further stabilize the operation during the fourth quarter. Although fourth quarter results were below expectations, we have begun to see tangible results from these efforts and remain confident in the long-term potential of this high-grade and highly prospective deposit."

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"Looking ahead to 2020, our key priorities are to advance our efforts to further expand Rochester, continue to stabilize and begin to optimize our Silvertip operation, invest in exploration at our most prospective sites including the Sterling and Crown projects in southern Nevada, and deliver consistent operating results that generate positive free cash flow and lower overall costs," concluded Mr. Krebs.

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Operations
Fourth quarter and full-year 2019 production and sales highlights for each of Coeur's operations are provided below.
Palmarejo, Mexico
 
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons milled
1,755,957
486,779
442,464
447,727
378,987
1,382,471
378,389
Average gold grade (oz/t)
0.08
0.07
0.09
0.07
0.07
0.10
0.08
Average silver grade (oz/t)
4.85
5.11
4.88
4.74
4.64
6.49
5.96
Average recovery rate – Au
84.3%
84.9%
81.7%
87.7%
83.4%
88.9%
97.6%
Average recovery rate – Ag
79.3%
81.7%
79.6%
81.8%
72.8%
83.8%
84.0%
Ounces Produced
 
 
 
 
 
 

Gold
111,932
28,702
31,779
28,246
23,205
122,722
31,239
Silver (000's)
6,762
2,029
1,720
1,735
1,278
7,516
1,893
Ounces Sold
 
 
 
 
 
 

Gold
116,104
27,952
32,731
28,027
27,394
115,592
23,667
Silver (000's)
6,841
1,980
1,747
1,709
1,405
7,229
1,534
Average realized price per gold ounce
$1,220
$1,238
$1,269
$1,210
$1,154
$1,140
$1,148
Average realized price per silver ounce
$16.23
$17.28
$17.05
$14.86
$15.39
$15.77
$14.57
•
Fourth quarter gold production decreased 10% to 28,702 ounces, while silver production increased 18% to 2.0 million ounces compared to the prior quarter. Full-year gold and silver production decreased by 9% and 10% to 111,932 and 6.8 million ounces, respectively
•
Fourth quarter gold and silver production benefited from higher mill throughput, which increased 10% quarter-over-quarter. Lower average gold grade led to decreased gold production during the quarter, while an improvement in average silver grade resulted in higher silver production. Lower full-year gold and silver production was due to lower average grades, partially offset by a 27% increase in tons milled
•
Production at La Nación, located within the Independencia mine complex, continued to successfully ramp up, averaging approximately 700 tons per day ("tpd") during the fourth quarter, which was well in excess of the 400 tpd target. Production from La Nación is expected to remain at approximately 700 tpd in 2020
•
The recently installed thickener is delivering positive results for the operation by reducing reagent consumption and improving metallurgical recoveries. The project is anticipated to have a one-year payback
•
Approximately 39% of gold sales in the fourth quarter, or 10,949 ounces, were sold under Palmarejo's gold stream agreement at a price of $800 per ounce. For the full year, a total of 36,727 ounces of gold (32% of Palmarejo's gold sales) were sold under the stream agreement



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Rochester, Nevada
 
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons placed
10,582,518
2,612,319

2,516,353
2,786,287
2,667,559
16,169,807
3,674,566
Average silver grade (oz/t)
0.46
0.47
0.43
0.45
0.46
0.52
0.46
Average gold grade (oz/t)
0.003
0.003
0.004
0.003
0.003
0.004
0.004
Ounces Produced
 
 
 
 
 
 

Silver (000's)
3,761
848
982
971
960
5,038
1,466
Gold
35,400
10,634
7,901
8,609
8,256
54,388
15,926
Ounces Sold
 
 
 
 
 
 

Silver (000's)
3,845
932
951
962
1,000
4,855
1,391
Gold
36,052
11,248
7,651
8,642
8,511
52,789
15,339
Average realized price per silver ounce
$16.07
$17.22
$17.02
$14.83
$15.31
$15.50
$14.53
Average realized price per gold ounce
$1,393
$1,484
$1,476
$1,295
$1,299
$1,261
$1,234
•
Silver production decreased 14% quarter-over-quarter to approximately 0.8 million ounces, while gold production increased 35% to 10,634 ounces. For the full year, silver and gold production decreased 25% and 35% to 3.8 million and 35,400 ounces, respectively
•
Silver production in the fourth quarter was impacted by lower than anticipated throughput rates from the secondary crusher, which reduced metal inventory on the Stage III and Stage IV leach pads. Gold production increased largely due to the placement of higher-grade material close to the liner of the Stage IV leach pad early in the fourth quarter
•
The secondary crusher, which was installed in the beginning of the third quarter to replace a failed larger unit, has delivered lower than expected overall crushing and placement rates. Coeur now expects to process approximately 34,000 tpd through the current crusher configuration in 2020, down from initial expectations of 37,000 tpd. The Company is pursuing opportunities to increase throughput rates to achieve its original target
•
Importantly, initial HPGR cells on the Stage IV leach pad indicate silver recovery rates in-line with original expectations. The Company has isolated approximately 194,000 tons on the north end of the Stage IV leach pad that have exhibited a 60-day silver recovery rate of approximately 60%, substantially higher than traditionally-crushed and run-of-mine material which historically exhibit silver recoveries of 36% and 13%, respectively, over the same time period
•
Coeur expects to receive a Record of Decision from the Bureau of Land Management on Plan of Operations Amendment 11 toward the end of the first quarter. Construction is anticipated to begin around mid-year, including earthworks to support a new leach pad and an upgraded crushing circuit
•
The Company plans to file an updated technical report in accordance with Canadian National Instrument 43-101 in the second half of 2020 further outlining the expansion, including an updated capital estimate as well as additional operational and financial information regarding the expected impacts of HPGR technology


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Kensington, Alaska
 
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons milled
658,378
167,061
166,475
160,510
164,332
661,731
166,310
Average gold grade (oz/t)
0.21
0.20
0.22
0.23
0.20
0.19
0.23
Average recovery rate
91.0%
87.2%
93.2%
93.0%
90.2%
93.0%
93.0%
Gold ounces produced
127,914
29,736
34,156
34,049
29,973
113,778
35,335
Gold ounces sold
130,495
29,293
35,452
34,415
31,335
114,778
33,202
Average realized price per gold ounce
$1,388
$1,469
$1,485
$1,312
$1,286
$1,247
$1,246
•
Commercial production at Jualin was declared on December 1, 2018. The figures shown in the table above include pre-commercial production
•
Gold production decreased 13% quarter-over-quarter to 29,736 ounces, while full-year gold production increased 12% to 127,914 ounces
•
Gold production in the fourth quarter was primarily driven by lower average grade as a result of a change in mine sequencing. Lower recoveries during the quarter reflect the settlement of gold shipments made in prior periods. Higher gold production in 2019 was primarily due to an 11% increase in average grade, reflecting a full-year of production from the high-grade Jualin deposit
•
Jualin accounted for approximately 15% and 14% of Kensington’s production during the fourth quarter and full year, respectively

Wharf, South Dakota
 
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons placed
4,613,359
1,100,393
1,503,021
919,435
1,090,510
4,923,774
1,644,168
Average gold grade (oz/t)
0.023
0.023
0.027
0.023
0.020
0.022
0.020
Ounces produced
 
 
 
 
 
 

Gold
84,172
25,644
25,946
15,680
16,902
76,840
16,960
Silver (000's)
63
20
18
12
13
51
13
Ounces sold
 
 
 
 
 
 

Gold
84,999
27,039
24,573
15,301
18,086
75,572
15,306
Silver (000's)
64
21
17
12
14
48
11
Average realized price per gold ounce
$1,416
$1,482
$1,481
$1,311
$1,317
$1,267
$1,247
•
Continued strong gold production totaled 25,644 ounces in the fourth quarter, consistent with the prior period. Full-year gold production increased 10% year-over-year to 84,172 ounces
•
Consistent production during the quarter was primarily driven by strong crusher performance as well as the continued stacking of higher-grade ore. Notably, second half gold production increased 58% from the first half of 2019
•
Tons placed for the full year reached 4.6 million tons, down from 4.9 million tons in 2018 and consistent with 4.6 million tons in 2017

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Silvertip, British Columbia
 
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons milled
236,547
61,662
53,145
59,689
62,051
86,127
38,802
Average silver grade (oz/t)
6.84
6.97
7.54
7.48
5.50
8.04
6.06
Average zinc grade (%)
7.1%
7.5%
7.6%
7.5%
5.9%
6.9%
5.8%
Average lead grade (%)
4.8%
4.9%
5.4%
5.4%
3.7%
5.0%
3.9%
Average recovery rate – Ag
71.8%
65.1%
74.8%
77.0%
69.9%
49.1%
60.5%
Average recovery rate – Zn
50.8%
42.0%
51.7%
59.1%
50.5%
56.7%
69.1%
Average recovery rate – Pb
72.6%
66.4%
78.4%
77.3%
66.8%
45.1%
54.7%
Produced
 
 
 
 
 
 

Silver (000's ounces)
1,162
279
300
344
239
340
142
Zinc (000's lbs)
17,103
3,865
4,197
5,322
3,719
6,781
3,083
Lead (000's lbs)
16,556
4,021
4,478
4,980
3,077
3,913
1,658
Sold
 
 
 
 
 
 

Silver (000's ounces)
1,164
294
290
365
215
268
127
Zinc (000's lbs)
18,155
4,053
4,076
5,303
4,723
4,793
2,552
Lead (000's lbs)
16,488
4,223
4,331
5,186
2,748
3,089
1,444
Average realized price per silver ounce, gross
$16.69
16.61
$19.94
$15.18
$14.98
$15.00
$15.54
Treatment and refining charges per silver ounce
$1.60
$2.34
$1.63
$1.18
$1.24
$0.84
$1.38
Average realized price per silver ounce, net
$15.09
14.27
$18.31
$14.00
$13.74
$14.16
$14.16
Average realized price per zinc pound, gross
$1.06
$1.04
$0.86
$0.83
$1.50
$1.12
$1.07
Treatment and refining charges per zinc pound
$0.35
$0.42
$0.36
$0.34
$0.31
$0.29
$0.24
Average realized price per zinc pound, net
$0.71
$0.62
$0.50
$0.49
$1.19
$0.83
$0.83
Average realized price per lead pound, gross
$0.91
$0.89
$0.98
$0.87
$0.92
$0.90
$0.87
Treatment and refining charges per lead pound
$0.07
$0.11
$0.06
$0.05
$0.06
$0.10
$0.07
Average realized price per lead pound, net
$0.84
$0.78
$0.92
$0.82
$0.86
$0.80
$0.80
•
Commercial production at Silvertip was declared on September 1, 2018. The figures shown in the table above include pre-commercial production
•
Fourth quarter silver, zinc and lead production decreased 7%, 8% and 10% quarter-over-quarter to 0.3 million ounces, 3.9 million pounds and 4.0 million pounds, respectively. Full-year silver, zinc and lead production totaled 1.2 million ounces, 17.1 million pounds and 16.6 million pounds, respectively
•
Fourth quarter production was driven primarily by lower average recovery rates as a result of ongoing mill optimization initiatives
•
Mill throughput increased 16% quarter-over-quarter to 61,662 tons but remained below target primarily due to extended planned downtime, which was implemented to complete key projects targeting improved mill availability
•
Mill stability initiatives throughout 2019 led to improved availability and more consistent operational performance late in the fourth quarter and year-to-date. Mill availability has averaged nearly 90% since mid-December
•
The Company received the permit amendment application to operate at a year-round mining and milling rate of 1,100 tons (1,000 metric tonnes) per day during the fourth quarter

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•
As part of Coeur’s year-end review process, the Company is conducting an impairment test on the carrying value of the operation, which totaled approximately $400.0 million as of December 31, 2019. Matters being considered in this review include: (i) the slower than anticipated ramp up since acquiring Silvertip in the fourth quarter of 2017, (ii) considerably weaker zinc and lead prices, and (iii) significantly higher treatment charges for zinc and lead concentrates. The Company expects to complete its final impairment analysis in connection with filing its 2019 Annual Report on Form 10-K and releasing fourth quarter and full-year 2019 earnings


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2019 Production Results and Guidance
Coeur's 2019 production results, along with its most recent production guidance published on November 4, 2019, are shown below.

2019 Production Results
 
Gold
Silver
Zinc
Lead
 
(oz)
(K oz)
(K lbs)
(K lbs)
Palmarejo
111,932
6,762
—
—
Rochester
35,400
3,761
—
—
Kensington
127,914
—
—
—
Wharf
84,172
63
—
—
Silvertip
—
1,162
17,103
16,556
Total
359,418
11,749
17,103
16,556

2019 Production Guidance
 
Gold
Silver
Zinc
Lead
 
(oz)
(K oz)
(K lbs)
(K lbs)
Palmarejo
95,000 - 105,000
6,500 - 7,200
—
—
Rochester
40,000 - 50,000
4,200 - 5,000
—
—
Kensington
117,000 - 130,000
—
—
—
Wharf
82,000 - 87,000
—
—
—
Silvertip
—
1,500 - 2,500
25,000 - 40,000
20,000 - 35,000
Total
334,000 - 372,000
12,200 - 14,700
25,000 - 40,000
20,000 - 35,000


Financial Results and Conference Call
Coeur will report its fourth quarter and full-year 2019 financial results on February 19, 2020 after the New York Stock Exchange closes for trading. There will be a conference call on February 20, 2020 at 10:00 a.m. Eastern Time.

Dial-In Numbers:        (855) 560-2581 (U.S.)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID:        Coeur Mining

Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Terry F. D. Smith, Senior Vice President of Operations, Hans J. Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through March 5, 2020.

Replay numbers:        (877) 344-7529 (U.S.)

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(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:        101 37 743


About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Cautionary Statement
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding 2019 priorities, anticipated production, recoveries, mining rates, throughput, and operations at Palmarejo, Rochester, Kensington, Wharf and Silvertip, including the impact of the new thickener at Palmarejo, the new crushing circuit, expansion plans and timing of filing (and content of) a technical report at Rochester, and improved operational performance and impairment analysis at Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold, silver, zinc, and lead and a sustained lower price or higher treatment and refining charge environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of mineral reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, the loss or insolvency of any third-party smelter or refiner with whom Coeur does business, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

Christopher Pascoe, Coeur's Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur's mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur's properties as filed on SEDAR at sedar.com.

Average Spot Prices
 
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Average Gold Spot Price Per Ounce
$
1,393

$
1,481

$
1,472

$
1,309

$
1,304

$
1,268

$
1,226

Average Silver Spot Price Per Ounce
$
16.21

$
17.32

$
16.98

$
14.88

$
15.57

$
15.71

$
14.54

Average Zinc Spot Price Per Pound
$
1.16

$
1.08

$
1.07

$
1.25

$
1.23

$
1.33

$
1.19

Average Lead Spot Price Per Pound
$
0.91

$
0.93

$
0.92

$
0.85

$
0.92

$
1.02

$
0.89


For Additional Information
Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, IL 60603

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Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com

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