Coeur Mining significantly increases silver and gold reserves
Coeur Mining (NYSE:CDE) is joining the ranks of the few precious metals miners that have increased their mineral reserves for 2014 following a rough year in the sector.
The US-based miner has raised its proven and probable silver and gold reserves by 16% and 12% respectively.
The calculations are based on price of $25 per ounce of silver and $1,450 per ounce of gold. Not many major precious metal miners have used such high price forecasts for their 2014 reserve calculations.
Coeur's share price jumped nearly 7% to $11.92 per share following the announcement.
The company also announced a 27% increase in measured and indicated silver resources and 1.4% for gold.
“For the past several years, our main focus has been to get all four of our mines up and running consistently," CEO Mitchell J. Krebs said in a statement. "2012 was the first year we devoted significant capital to exploration and we are starting to see the fruits of these efforts."
The bulk of the increase comes from the Rochester mine in Nevada and the Kensigonton mine in Alaska.
The company plans to invest up to $28 million this year in exploration and may increase this budget if drill results warrant further work.
"We have spent $74 million in exploration expenditures over the past two years and will continue to fund exploration activities using a success-based approach focused on resource conversion," Krebs said. "We believe a robust exploration program represents a high-return use of our capital based on the results we have achieved."
Coeur is the largest US-based silver producer and has four operating precious metals mines, including two in Latin America and two in the US. The Company also has a non-operating interest in the Endeavor mine in Australia in addition to net smelter royalties on the Cerro Bayo mine in Chile, the El Gallo complex in Mexico, and the Zaruma mine in Ecuador.