Coeur Mining remains on track to meet its 2018 production guidance despite reporting lower silver equivalent output in Q3.
Precious metals miner Coeur Mining (NYSE:CDE) reported lower third-quarter output results, producing 8.5-million ounces of silver equivalent but maintaining its production guidance for the year despite the decline, the company announced on Monday (October 9).
These numbers are comparable to the 9.1-million ounces of silver equivalent the company achieved in Q2 of 2018 and the 8.6-million ounces of silver equivalent it produced this time last year.
Despite the output results, the miner still expects to meet its 2018 production guidance.
The company expects to produce 36.1-39.5 million silver equivalent ounces in 2018, consisting of 13.0-14.3-million silver ounces, 363,000-382,000 gold ounces, 13.0-23.0-million pounds of zinc and 11.0-18.0-million pounds of lead.
Silvertip, which is located in BC, produced 286,000 ounces of silver equivalent in the third quarter, which comprised 96,000 ounces of silver, 2.2-million pounds of zinc and 1.2-million pounds of lead.
When addressing the newly commercial mine, Mitchell J. Krebs, president and CEO stated, “[o]ptimization efforts at Silvertip will continue over the next several quarters, with processing rates on track to average 750 tonnes per day by year-end and reach 1,000 tonnes per day in early 2019.”
In total, metal sales from the mines during Q3 came to 3-million ounces of silver, 89,609 ounces of gold, 1.8-million pounds of zinc and 1.6-million pounds of lead.
Raymond James (NYSE:RJF) analysts are positive on the company, stating, “[Coeur] has a flexible balance sheet and an aggressive exploration budget to improve its reserve life. In addition, the Rochester HPGR project could extend its mine life. We believe the shares offer good liquidity for investors.”
As of 12:02 p.m. EST on Wednesday (October 10), Coeur was down 4.03 percent, trading at C$5.12.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.