Announcing its preliminary second quarter earnings, Coeur Mining reported a second quarter production of 4.5 million oz of silver and 61,025 oz of gold, or 8.1 million silver equivalent oz, an increase of 7% compared to the first quarter. Lower processing rates, higher recoveries and higher grades in the second quarter are all consistent with the company’s expectations for transitioning the Palmarejo mine in Mexico to a higher-margin, underground operation. Further increases in recovery rates are expected in the second half of the year due to improved management of the sources of ore.
Silver production increased 48% and gold production increased 13% compared to the first quarter at the Rochester mine in Idaho resulting in the highest quarterly silver equivalent production since the third quarter in 2007. Further production growth is expected in the second half of 2014 due to the continued ramp up of production from the Stage III leach pad.
Mill throughput at the Kensington mine in Alaska averaged approximately 1,800 tons per day during the second quarter, consistent with the first quarter. Higher average gold grade drove a 10% sequential increase in gold production in the second quarter, which included an average gold grade of 0.22 during the month of June.