Coeur Mining Reported That Gold Production Exceeded Guidance Range

CHICAGO, IL - Coeur Mining, Inc. reported operating and financial highlights for the fourth quarter and full-year 2013, and provided production guidance for 2014.

Fourth quarter production of 4.3 million ounces of silver and 80,780 gold ounces increases of 3% and 27%, respectively, from the third quarter 2013. Full-year production of 17.0 million ounces of silver and a record high 262,217ounces of gold, a decrease of 6% and an increase of 16%, respectively, from 2012. Full-year 2013 cash operating costs expected to be $9.87 per silver ounce1 and $949 per gold ounce. 2014 production guidance range of 17.0 - 18.2 million silver ounces and 220,000 - 238,000 gold ounces.

Mitchell J. Krebs, Coue’s President and Chief Executive Officer, said, Full-year silver production totaling 17.0 million ounces was 5% below the low end of Company guidance, which was mostly a result of slower than expected leach recoveries at our Rochester mine in Nevada. Gold production in 2013 exceeded our guidance range due to a strong fourth quarter at our Kensington mine in Alaska and represented nearly half of the Company’s estimated 2013 metal sales. On a silver equivalent basis, 2013 production of 32.7 million ounces was in-line with the low end of Company guidance and was approximately 8% higher than 2012 production.

"The Company’s ongoing efforts to maximize cash flow in the current lower price environment are reflected in our 2013 results. Full-year cash operating costs for silver are expected to be $9.87 per ounce, which is within the guidance range provided by the Company, and cash operating costs for gold are expected to be $949 per ounce, which is below Company guidance. We reduced planned capital expenditures by approximately 18% during 2013, completed several key internal expansion projects intended to maximize future revenue, eliminated approximately $6 million of early-stage exploration expense, and continued to manage price risk by extending our hedging program using downside put protection. We also created Coeur Capital to add higher-margin free cash flow from a growing portfolio of precious metals royalty and streaming interests.

"Our 2014 production guidance reflects a prioritization of quality of production ounces versus quantity of production ounces. During late 2013, the Company decided to defer development and production from the Guadalupe deposit at the Palmarejo silver and gold mine in Mexico based on this approach. We expect to replace these ounces with higher margin, lower-cost ore sources during the year. At Rochester, 2014 production guidance takes into account an expected slower ramp up in ounces recovered from the recently expanded leach pad. 2014 capital expenditures are expected to be below $80 million, representing a significant reduction from the 2013 level."