Coeur Mining Inc (CDE) is looking to benefit from its April acquisition of Orko Silver, which included the La Preciosa project in Mexico, as the project has the opportunity to be a cash-flow generator as well as a significant counterweight to the company’s Palmarejo mine, also located in the mining-friendly country of Mexico, says Mitchell J. Krebs, President and CEO of Coeur Mining Inc.
“La Preciosa…is a very unique project in that it is one of the world’s largest undeveloped silver resources and is located in a very favorable jurisdiction in Mexico. It also is well-located in terms of access to infrastructure and the workforce, making it a great place to build a mine,” Krebs said. “For us, it will do three main things once in production. First, it has the opportunity of being a cash-flow generator with average annual silver production of approximately 9 million ounces compared to our company total right now of approximately 18 million. It will clearly move the needle quite significantly for us in terms of production and cash flow.”
FOR MORE INFORMATION ABOUT THIS COMPANY CLICK HERE.
Krebs also points to La Preciosa as being a significant enough asset where it will be a solid counterweight to the company’s largest mine, Palmarejo, which is also in Mexico. Additionally, the La Preciosa project will increase Coeur‘s exposure to Mexico, where Krebs believes is a good area for the company to grow.
“Palmarejo is an extremely large operation. It’s Mexico’s second-largest primary silver mine, and it generates more than 50% of our cash flow currently, which is great, but it’s also a concentration risk on one asset. With La Preciosa, what we want to have is another chunky asset that can help diversify us across a greater number of operating assets,” Krebs said. “Finally, it increases our Mexican exposure. Mexico is one of the most mining-friendly countries. It’s the world’s second-largest silver producing country…over a third of all global silver production ever mined has come out of Mexico. It’s a big part of the culture and economy of Mexico, and it’s a good place for us to grow the business. Because of this, we feel good about having a significant development project in La Preciosa.”
Coeur Mining Inc (NYSE:CDE) in Heavy Investment Phase to Extract Value from Existing Mines
December 23, 2016
ADA-ES, Inc. (ADES) to Generate $5 Million to $6 Million a Year For Each Refined Coal Facility
July 22, 2013
Paul Benson, CEO of SSR Mining Inc., Details the Progress Towards Greater Gold and Silver Production
December 13, 2017
Agnico Eagle Mines Ltd (USA) (AEM) Well-Positioned to Produce 1.6 Million Ounces in 2015
December 23, 2014
Kopernik Portfolio Includes One with 39 Million Ounces of Gold in Reserves
September 30, 2019
