Mexican mine boosts Coeur in Q1

Solid performances at the Palmarejo complex in Mexico’s Chihuahua state and Wharf in South Dakota boosted US-based Coeur Mining in Q1. 

Palmarejo consists of the Palmarejo processing facility, three underground mines and exploration targets, and represented 64% of Coeur's silver production and 32% of its gold production in 2023. 

“Solid performances at Palmarejo and Wharf led to total production of 80,744oz of gold and 2.6Moz of silver compared to 69,039oz of gold and 2.5Moz of silver in the first quarter of 2023,” the company said in its first quarter results. “Production levels are expected to increase over the balance of 2024, driven primarily by the ramp-up at Rochester [in Nevada]”

Palmarejo produced 33,160oz of gold in Q1, up 32% on Q123, and 1.82Moz of silver, 4% up. 

According to the miner, Palmarejo achieved its highest quarterly production in several years thanks to strong contributions from the Guadalupe and Independencia underground operations, while Wharf delivered a stronger-than-planned quarter after achieving a record performance in 2023.

Full-year 2024 production for the Mexican unit is expected to be 95,000-103,000oz of gold and 5.9-6.7Moz of silver. The company expects capital expenditures at Palmarejo to be US$32-42mn, consisting primarily of sustaining capital and underground development. 

“Coeur began 2024 with solid first quarter production in a catalyst-rich year for the company,” said CEO Mitchell Krebs. “This strong start, highlighted by the achievement of commercial production at Rochester at the end of the first quarter, puts us in a great position to achieve full-year 2024 guidance and begin generating positive free cash flow in the second half of the year.”