Fri Jan 18 2013
Coeur d’Alene Mines issued 2013
guidance Thursday estimating it will produce 18 million to 19.5 million ounces
of silver while gold production is expected to significantly increase to
250,000 to 265,000 ounces. The company said it mined 18 million ounces of
silver and an all-time high of 226,491 gold ounces for 2012.
Gold production exceeded company
guidance due to strong fourth-quarter performance from the Coeur Rochester
silver and gold operation in Nevada and its Kensington gold mine in Alaska. Last
year’s silver production reflected significant production growth at Coeur
Rochester, which was offset by lower ore grades in the second half of the year
at Coeur’s Palmarejo silver and gold mine in Mexico and its San Bartolome
silver operation in Bolivia.
This year’s cash operating costs
after by-product credits are expected to be $8 to $9 per silver ounce.
Kensington’s 2013 cash operating costs are expected to decline significantly to
$900-$950 per ounce. Higher silver and gold production and corresponding lower
cash operating costs per ounce of silver and gold are expected in the second
half of 2013 compared to the first half of the year. Coeur plans a significant
expansion of its Rochester operation in 2013 and has budgeted $30 million to
$35 million to expand silver production from 2.8 million ounces in 2012 to
between 4.5 million and 4.9 million ounces in 2013. This year’s gold production
is expected to increase from 38,071 ounces in 2012 to 44,000 to 46,000 ounces.
The company is also considering an additional $10 million expansion at Coeur Rochester, which is expected to provide 40 million tons of additional pad capacity beginning in 2016, to further extend mine life and increase production rates from historic stockpiles. “These planned expansions represent high return investment opportunities and the company believes they will not require any resolution to the existing claims dispute,” said Coeur. The company is currently locked in a battle with Rye Patch Gold over unpatented Rochester Mining District federal mining claims which Coeur inadvertently failed to renew in time.
Source: mineweb.com