Coeur Mining Posts Net Loss $37.2 Million On Lower Metals Prices

Coeur Mining (NYSE: CDE) lost $37.2 million, or 36 cents per share, in the first quarter, as a drop in gold and silver prices hurt the company.

The adjusted net loss was $19.5 million, or 19 cents per share. That compares to net income of $12.3 million, or 14 cents per share, in the first quarter of 2013. The first quarter loss is down from the fourth quarter 2013 loss of $581.5 million, or $5.77 per share.

The average realized silver price of $20.29 per silver ounce and $1,298 per gold ounce during the first quarter, which were 33% and 20% lower, respectively, versus the first quarter 2013.

Cash flow from operating activities fell $9.6 million, versus a $12.9 million gain in the first quarter 2013.

Coeur is maintaining its 2014 production guidance of 17 million to 18.2 million silver ounces and 220,000 to 238,000 gold ounces and is also maintaining its guidance for costs applicable to sales for 2014 of $500 million to $530 million.

Additionally, the firm is keeping its full-year guidance for exploration at $23 million to $28 million, including capitalized drilling, general and administrative expenses, at $43 million to $48 million, and capital expenditures at $65 million to $80 million.

Coeur raised its 2014 amortization to about $190 million. That’s higher than prior guidance due primarily to a revised estimate of the impact of the impairment charge recorded in the fourth quarter 2013.

Silver output was 4.1 million ounces, up 7% versus the year-ago quarter, while gold production was 58,836 ounces, a 3% rise quarter-over-quarter. All-in sustaining costs per silver-ounce equivalent fell 4% versus 2013’s first quarter to $19.12.

"I am pleased with the company's performance through April. Our production levels are on target and our costs are at the low end of guidance, which reflects our organization's improved ability to establish and execute reliable, well-engineered plans," said Mitchell J. Krebs, Coeur's president and chief executive officer in a press release. "As we enter the mid-point of 2014, we look forward to demonstrating Rochester's continuing production growth and declining cost profile and to providing the anticipated longer-term profile of our Palmarejo operation during the second quarter. By the third quarter, we expect to complete the feasibility study for the La Preciosa silver-gold project in Mexico and plan to make a disciplined decision on how to proceed."