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Coeur Mining drops gold production 10% in Palmarejo

Coeur Mining produced 46,801 ounces of gold at its Palmarejo, Mexico mine in the first half of 2020, a year-on-year drop of 9 percent.

The company‘s silver production fell 10% to 2,702,025 ounces at that mine in the same period.

Both results were due to the temporary suspension of active mining and processing activities in accordance with a decree from the Mexican government issued in the second quarter.

Coeur Mining owns 100% of Coeur Mexicana S.A. de C.V. (Coeur Mexicana), which has operated the Palmarejo complex in the state of Chihuahua in northern Mexico since 2009.

The processing facility at the Palmarejo complex is fed by the Guadalupe, Independencia and La Nación underground mines.

Coeur Mining

After receiving guidance from the Mexican government in May that the suspension decree did not apply to precious metal mining, the company’s output began to rise again in June, increasing steadily throughout the month.

Coeur Mining’s staffing levels are currently limited to approximately 85% due to compliance with Covid-19 related restrictions.

Coeur Mining expects staffing to remain at similar levels for the rest of 2020.

The mine’s metal sales were $ 112.3 million, or 34% of Coeur’s metal sales, compared to $ 112.5 million, or 36% of company metal sales.

Favorable exchange rates and lower consumption costs led to a 10 and 12% decrease in costs applicable to sales per ounce of gold and silver, respectively.

Amortization decreased to $ 20.4 million due to lower ounces sold. Capital expenditures decreased to 11.6 million from 16.2 million due to the impact of the temporary suspension on underground development and landfill drilling activities and lower purchases of mining equipment.

 

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