Coeur Mining to buy Wharf mine from Goldcorp
TORONTO (miningweekly.com) – The US’s largest primary silver producer Coeur Mining has agreed to buy Goldcorp’s Wharf gold mine, a producing gold mine located near Lead, South Dakota, for $105-million in cash.
Coeur said on Monday that the mine was expected to produce 85 000 oz to 90 000 oz of gold this year at an all-in sustaining cost of $800/oz to $875/oz of gold.
The acquisition was expected to lift the company’s 2015 earnings before interest, taxes, depreciation and amortisation by more than 30% and boost free cash flow while reducing Coeur’s consolidated unit costs.
The thirty-year-old Wharf openpit operation would lift Coeur’s total gold reserves by 24%.
"This divestiture of Wharf will unlock additional value for Goldcorp shareholders and demonstrates our commitment to focusing on the core assets within our portfolio," president and CEO Chuck Jeannes said in Monday's statement.
Coeur president and CEO Mitchell Krebs noted that he believed the transaction would generate an attractive rate of return and was immediately accretive to cash flow and net asset value.
“We are excited to welcome our new team members at Wharf as we look to pursue identified opportunities to optimise the operation, add incremental value and extend the mine life.”
Coeur’s stock rose 4.45% on the NYSE on Monday to $6.10 apiece.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation