\nCoeur Mining, Inc. (\u201cCoeur\u201d or the \u201cCompany\u201d) (NYSE: CDE) today announced details of the expansion of its Rochester silver-gold mine in Nevada, reflecting significant reserve growth and the benefits of a larger-scale expansion project. An updated National Instrument 43-101 Technical Report will be filed on SEDAR at www.sedar.com<\/a> before the close of business today.\n<\/p>\n
\nSummary highlights include:\n<\/p>\n
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- \nAfter-tax NAV5%<\/sub> of $634 million and an expected internal rate of return of 31% based solely on proven and probable mineral reserves\n<\/li>\n
- \n18-year, reserve-based mine life through 2038 with opportunities for extension with continued drilling\n<\/li>\n
- \nExpected average annual free cash flow of $104 million for initial ten years post-expansion\n<\/li>\n
- \n58% and 65% year-over-year increase in silver and gold reserves, respectively1<\/sup><\/li>\n
- \nMore than doubling of planned annual crusher throughput capacity from roughly 14 million tons to over 28 million tons post-expansion\n<\/li>\n
- \nAverage annual silver and gold production expected to total over 8.0 million ounces and approximately 80,000 ounces, respectively, for the initial ten years post-expansion\n<\/li>\n
- \nImprovement in silver recoveries from 61% over 20 years to approximately 68% in two years through use of high-pressure grinding roll (\u201cHPGR\u201d) technology\n<\/li>\n
- \n$397 million of planned construction capital (2021-2023), including $42 million in contingencies and $31 million in engineering, procurement and project management contracting\n<\/li>\n<\/ul>\n
\n\u201cThe expansion of Rochester represents the Company\u2019s single largest organic growth opportunity,\u201d said Mitchell J. Krebs, Coeur\u2019s President and Chief Executive Officer. \u201cThe combination of significant reserve growth, the scope of the expansion project to leverage economies of scale and the benefit of higher and faster silver recoveries from HPGR technology is expected to generate an internal rate of return of over 30%. Importantly, the project is supported by a technically sound foundation with robust economics that helps drive an anticipated step-change in Coeur\u2019s cash flow profile, which we believe will fundamentally reposition the Company and unlock meaningful long-term value for our stockholders. We are all excited about the future of Rochester and look forward to showcasing this pivotal expansion project with you during our virtual investor day tomorrow.\u201d\n<\/p>\n
\nRochester\u2019s planned expansion under Plan of Operations Amendment (\u201cPOA 11\u201d) includes the construction of a new leach pad, a crushing facility equipped with two HPGR units, a Merrill-Crowe process plant, and related infrastructure to support the extension of Rochester\u2019s mine life. The Company plans to fund the project with a combination of cash on hand, internally generated cash flow from its four operating mines and existing debt capacity.\n<\/p>\n
\nCoeur commenced early-stage earthworks and began establishing infrastructure for POA 11 in early August 2020. Major construction is expected to begin in 2021 and be largely completed by late 2022. The project remains on schedule with no changes to key elements of the timeline (highlighted below).\n<\/p>\n
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