TORONTO (miningweekly.com) – On the back of stronger precious metals prices so far this year, as well as improved first-quarter financials, the NYSE-listed stock of Coeur Mining has risen to a new 12-month high at $7.68 apiece.
In the period ended March 31, the miner reported fourth-quarter headline earnings – excluding special items – of $6.6-million, or $0.04 a share, compared with an adjusted net loss of $38.6-million, or $0.27 a share, and $19.2-million, or $0.19 a share, in the first quarter 2015.
Silver sales totalled 3.5-million ounces and gold sales were 79 091 oz, or 8.3-million silver equivalent ounces, marginally higher than in the same period a year earlier. The company realised average silver sales prices of $15.16/oz and $1 178 for gold during the period, which were 10% and 2% lower, respectively, compared with last year's first quarter.
Adjusted all-in sustaining costs (AISC) per realised silver equivalent ounce of $13.73/oz were 14% lower when compared with the same quarter last year.
The miner, with operations in the US, Australia, Bolivia and Mexico, had benefited from a 24% rise in the spot silver price so far this year at $17.61/oz, as well as the rallying gold price, which was up 18.5% at $1 265.20/oz on Thursday.
Revenue at $148.38-million decreased 10% over the fourth quarter and 3% compared with the first quarter of 2015, mainly owing to fewer silver and gold ounces sold from Palmarejo, in Mexico, owing to reduced mining rates as the operation transitioned from predominantly openpit mining to entirely higher-grade underground mining.
Meanwhile, production had started from the Independencia deposit in late January and mining rates were expected to climb during each remaining quarter of the year. Silver comprised 36% of metal sales, while gold contributed 64% during the first quarter.
The company reiterated its company-wide production and cost guidance to produce between 14.6-million and 16-million ounces of silver and 320 000 oz to 347 000 oz of gold, or 33.8-million to 36.8-million silver equivalent ounces, at AISC ranging between $16/oz and $17.25/oz silver equivalent.