Speaking with International Business Times, Mitchell Krebs, CEO of Coeur Mining Inc. (TSX:CDM,NYSE:CDE), explained, among other things, what his company has been doing to adapt to last year’s dramatic silver price decline.
As quoted in the market news:
‘There’s nothing like a good price decline to instill some urgency in people,’ Krebs said. They cut back capital expenditure budgets for 2014, and ended up spending $100 million in capex in 2013, down from an initially projected $125 million. Exploration expenses were also slimmed down.
‘You’ve got to find ways to grow the business that can provide an adequate rate of return even at lower prices,’ continued Krebs. ‘That really shortens the list in terms of opportunities out there in a lower price environment,’ he said, referring to new mine projects or acquisitions.
Krebs also gave his outlook for silver in 2014:
‘I think we’re going to see continued choppiness and a fairly sideways silver price,’ said Krebs. ‘Silver is a very volatile metal and will probably see a range of $18 up to $23 per ounce, throughout the year … Investors are trying to get a sense of global economy, whether there is or isn’t any hint of inflation, or the X-factor of some crisis, a political crisis or otherwise.’