Coeur Mining Defer Projects

July 17, 2013 at 08:17

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Lower silver and gold prices have prompted Coeur Mining, the US’ largest silver producer, to defer several capital projects and reduce staff, though production will continue at previously announced levels, the company said.

“Since May, the management team has been pursuing other initiatives in response to lower silver and gold prices,” Coeur President and CEO Mitchell Krebs said in a statement.

“We have eliminated 40 current or open positions from the organization, several capital projects have been deferred, a review of all general and administrative costs is underway, nearly 15% of our 2013 generative exploration budget has been reallocated to nearer-term, higher-grade targets, and our mine plans at each operation are currently being reviewed and optimized,” Krebs added.

Formerly known as Coeur d’Alene Mines Corp., the company said it produced 4.6 million oz of silver and 60,757 oz of gold during the second quarter, ended June 30, at its Palmerejo (Mexico), San Bartolome (Bolivia), Rochester (US-Nevada), Kensington (US-Alaska), and Endeavor (Australia) mines.

That represents a 21% increase in silver production and a 7% increase in gold production from year-ago levels.

The company also reaffirmed its full-year 2013 consolidated production guidance of 18.0-19.5 million oz of silver and 250,000-265,000 oz of gold.

Coeur said it anticipated higher-than-planned silver production from San Bartolome and higher-than-planned gold production from Palmarejo to offset lower-than-planned silver and gold production from Rochester.