The Silvertip silver/zinc/lead project that Coeur Mining bought less than a year ago, entered commercial production on September 1, prompting the NYSE-listed company to revise its full-year guidance.
Coeur bought the mine, located in northern British Columbia, in October 2017 and started production in March, after successfully commissioning the mill. Since then, the company has been focusing on optimising plant performance and on upgrading the mine infrastructure, CEO Mitchell Krebs reported on Tuesday.
“We continue to be excited about the impact Silvertip is expected to have on our production, margins and cash flow beginning next year,” he commented in a news release.
During August, processing rates averaged about 450 t/d, from about 350 t/d during July and 250 t/d during June. Processing rates are forecast to average 750 t/d by the end of the year and reach 1 000 t/d in early 2019.
Meanwhile, the improved visibility of Silvertip’s production and the stronger-than-expected performance at Rochester, in Nevada, led to the company revising its production guidance increase for 2018.
The guidance has been revised to a range of 36.1-million to 39.5-million silver-equivalent ounces, from the July guidance of 36-million to 39.4-million silver-equivalent ounces.
The Silvertip mine is forecast to contribute between 2.03-million and 3.48-million silver-equivalent ounces, compared with the original guidance of 4.03-million to 5.08-million silver-equivalent ounces. The Rochester mine’s forecast has been increased from between 6.9-million and 7.7-million ounces to between 7.68-million and 8.32-million silver-equivalent ounces.