Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Investor Day (May 2018)
136 slides from Coeur Mining's investor day presentation, May 8, 2018
Slide 1: Coeur Mining Investor Day
Coeur Mining Investor Day May 2018 NYSE: CDE NYSE: CDE 1 JC 2016
Slide 2: Cautionary Statements
Cautionary Statements This presentation contains forward‐looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding strategies to deepen organizational capabilities and effectiveness, execute key expansions at Rochester and Silvert
Slide 3: Cautionary Statements (cont.)
Cautionary Statements (cont.) Non‐U.S. GAAP Measures ‐ We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non‐U.S. GAAP financial measures, including adjusted net income (loss), adjusted EBITDA, to
Slide 4: Today's Speakers
Today’s Speakers Mitchell J. Krebs Strategic Overview President & Chief Executive Officer Emilie C. Schouten Organization & Culture Overview Senior Vice President, Human Resources Peter C. Mitchell Financial Overview Senior Vice President & Chief Financial Officer Frank L. Hanagarne, Jr. Operations
Slide 5: Strategic Overview
Strategic Overview Mitchell J. Krebs President & Chief Executive Officer NYSE: CDE 5 JC 2016
Slide 6: Who We Are
Who We Are Based in the U.S., Coeur Mining is one of the world’s largest primary silver producers, a significant producer of gold, and has repositioned its portfolio with a focus on sustainable, high-quality cash flow $1.5B market cap 1 $27M 90-day ADTV 1 K ENSINGTON S ILVERTIP $233M of liquidity 2
Slide 7: Purpose Statement Video
Purpose Statement Video NYSE: CDE 7 JC 2016
Slide 8: Transformation Driven by Multi-Year Strategy
Transformation Driven by Multi-Year Strategy • Organizational and cultural overhaul • Deepen organizational capabilities and effectiveness • Process improvements and operational optimization • Execute key expansions at Rochester and Silvertip • Significant portfolio upgrades through opportunistic M&
Slide 9: What are Coeur's Strategic Objectives?
What are Coeur’s Strategic Objectives? Become “Leader of the Pack” Establish Low Cost Production in • Tremendous progress over the last five years Top Jurisdictions has made Coeur an attractive precious metals company • North America-focused, U.S.-centric • Quality growth, strong returns, operationa
Slide 10: Balanced Portfolio with Improved Risk Profile
Balanced Portfolio with Improved Risk Profile 2010 2018E3 6% 12% Palmarejo Rochester 26% 14% 36% Kensington Asset Mix 26.1M 47% 37.7M Wharf AgEqOz2 AgEqOz2 Silvertip 19% San Bartolomé 10% Other1 10% 19% U.S. 20% Mexico 46% Canada Geographic Mix 12% Bolivia 26% 52% Australia 2% Argentina 36% 6% Metal
Slide 11: High-Quality Growth Generating Positive FCF
High-Quality Growth Generating Positive FCF1 Silver Equivalent2 Production Adjusted EBITDA4 (M oz) ($M) 34% 29% 37.7 35.1 21% 30.1 30.8 11% $203.3 26.3 $194.9 $117.7 $58.9 Adjusted EBITDA4 Silver Gold Lead Zinc Adjusted EBITDA margin4 2014 2015 2016 2017 2018E3 2014 2015 2016 2017 Capital Expenditur
Slide 12: Significant Margin and Cash Flow Growth Expected
Significant Margin and Cash Flow Growth Expected Over the near- to medium-term, strong organic opportunities are expected to drive significant margin and cash flow growth 2017 Target / Potential Silvertip1 0 tpd mining rate 1,000 tpd Ramp-up to steady-state production 0 avg. annual AgEqOz1 productio
Slide 13: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Mining is capital intensive and requires a disciplined approach to capital allocation with a view toward long-term reserve replacement and growth Highest returns Asset Optimization / Quickest impact 25% + Low capital intensity Finite opportunity set Enha
Slide 14: Outlook Conveys Quality Growth
Outlook Conveys Quality Growth Silver Equivalent Production Adjusted EBITDA1 (M oz) ($M) $355 51.3 48.1 $310 42.6 44.0 $315 39.4 45.8 $250 42.6 $240 $280 39.4 40.2 $220 36.0 $225 $205 $210 CAGR2 Total %Δ2 CAGR2 Total %Δ2 2014A - 2022P 8% 85% 2014A - 2022P 24% 469% 2017A - 2022P 7% 38% 2017A - 2022P
Slide 15: A Long History of Corporate Responsibility
A Long History of Corporate Responsibility “We have been doing ESG long before people were talking about ESG.” – Mitchell J. Krebs PROTECT DEVELOP DELIVER OUR PEOPLE, PLACES, PLANET QUALITY RESOURCES, GROWTH, PLANS IMPACTFUL RESULTS THROUGH TEAMWORK • Operating responsibly and protecting our people,
Slide 16: Coeur Mining Is Uniquely Positioned
Coeur Mining Is Uniquely Positioned U.S.-listed, incorporated and based Stockholder-friendly corporate governance policies Balanced North American, U.S.-centric portfolio Attractive size and scale Platform and capabilities for quality growth Strong and flexible balance sheet Discipline
Slide 17: Organization and Culture Overview
Organization and Culture Overview Emilie C. Schouten Senior Vice President, Human Resources NYSE: CDE 17 JC 2016
Slide 18: Coeur Leadership Principles
Define Talent: Coeur Leadership Principles A successful leader at Coeur Mining … PROTECT DEVELOP DELIVER OUR PEOPLE, PLACES, PLANET QUALITY RESOURCES, GROWTH, PLANS IMPACTFUL RESULTS THROUGH TEAMWORK Lives our safety culture Pays attention to details Collaborates with other teams Works with integrit
Slide 19: Identify Talent: External Recruiting
Identify Talent: External Recruiting Local Hiring Focus: Recruit from 12 International Universities: Wharf - 98% from Western SD Canada – UBC, UNBC, Yukon University Rochester - 95% from Central NV Mexico – Universidad Autonoma de Chihuahua, Universidad Tecnologica de Silvertip - 82% from
Slide 20: Identify Talent: Succession Planning
Identify Talent: Succession Planning Coeur Global Talent Review • A comprehensive review of the Company’s talent • Using a ‘bottom-up’ approach to discuss each site and function’s talent in a simple format: • Capture development plans and succession data in our online performance management tool • C
Slide 21: Identify Talent: Pipeline Call
Identify Talent: Pipeline Call QUARTERLY PIPELINE CALL HR Managers from each site on one call Review talent trends such as: KENSINGTON ROCHESTER PALMAREJO o Key open positions SILVERTIP CHICAGO o Repeated turnover WHARF o Site-specific projects requiring tiger-teams with specialized skills Pre
Slide 22: Develop Talent: All Levels
Develop Talent: All Levels Pipeline Programs: Local scholarships and apprentice programs with trade schools Summer Intern Program: 12 schools; avg. 25 interns; 50% female or diverse Coeur Development Program (CDP) 18-month rotational program IMPACT Training Year-long, 3 session training laun
Slide 23: Develop Talent: IMPACT Training
Develop Talent: IMPACT Training Not an “HR program”: co-created with Health & Safety; a site general manager presents at every session Initial focus on Frontline Supervisor population 170 Frontline Supervisors across all sites (67 in MX); ~20 per cohort and Spanish sessions in Chihuahua Succ
Slide 24: Financial Overview
Financial Overview Peter C. Mitchell Senior Vice President & Chief Financial Officer NYSE: CDE 24 JC 2016
Slide 25: Market Summary
Market Summary Capital Structure Research Coverage $M March 31, 2018 5.875% senior notes due 2024 $245.3 BMO Equity Ryan Thompson Revolving credit facility 115.0 Canaccord Genuity Equity Dalton Baretto Capital lease obligations 53.7 CIBC Equity Cosmos Chiu Cormark Equity Richard Gray TOTAL DEBT $414
Slide 26: Strong and Flexible Balance Sheet
Strong and Flexible Balance Sheet Coeur successfully refinanced its 7.875% senior notes due 2021 with 5.875% senior notes due 2024 and established a $200 million revolver Total Debt Leverage Ratios1 ($M) 24% 5.5x $546.0 $414.0 3.4x 2.1x Total debt-to-LTM adjusted EBITDA2 1.3x Net debt-to-LTM adjuste
Slide 27: Coeur's Credit Ratings Continue to Improve
Coeur’s Credit Ratings Continue to Improve • Since 2015, Coeur’s credit ratings have $M March 31, 2018 improved multiple notches 5.875% senior notes due 2024 245.3 Revolving credit facility 115.0 • The Company remains focused on preserving Capital lease obligations 53.7 its peer-leading credit profi
Slide 28: Balance Sheet Outlook
Balance Sheet Outlook Strong growth in EBITDA1 and FCF1 is expected to enable deleveraging, with total debt-to-EBITDA1 expected to be approximately 1.0x at the end of 2022 Assumptions Total Debt ($M) • Metal prices of $1350/oz Au, $17.50/oz Ag, $425 $1.40/lb Zn and $1.13/lb Pb $410 $415 $380 $360 $4
Slide 29: Production Hedging Overview
Production Hedging Overview Primary Commodities (Silver and Gold) • Historical approach of buying put spreads for a portion of primary production was successful in mitigating margin compression • Current price conditions do not support this hedging strategy as it would add costs in a period of alrea
Slide 30: Additional Financial Successes
Additional Financial Successes General & Administrative Expense • Focus since 2013 corporate relocation to Chicago • Transparent disclosure – not “hiding” corporate G&A in large regional offices • Guidance for 2018 of $32 - $34 million, down from $54 million in 2013 Disclosure Philosophy and Reporti
Slide 31: Tax Rates by Jurisdiction
Tax Rates by Jurisdiction As of year-end 2017, Coeur had U.S. NOLs of $370 million Statutory corporate tax rates by country • United States: 21% • Mexico: 30% • Canada: 27% Corporate income and mining taxes by jurisdiction • Nevada – Net Proceeds Tax is 5% • South Dakota – Severance Tax is 10% in ad
Slide 32: Operations Overview
Operations Overview Frank L. Hanagarne, Jr. Senior Vice President & Chief Operating Officer NYSE: CDE 32 JC 2016
Slide 33: Coeur's Operating Philosophy
Coeur’s Operating Philosophy Coeur strives to transform great operators into great businesspeople by understanding the crucial drivers of greater value Revenue Enhancements Cost Reductions • Improve planning • Understand the cost structure • Applied technical expertise • Know cost drivers like the b
Slide 34: Reflections on a Journey of Improvement
Reflections on a Journey of Improvement • Significant improvements in Environmental, Health & Safety (“EHS”) performance • Completed and ramped up two mines at Palmarejo • Acquired the Wharf gold mine and have added significant value • Developing and ramping up the Silvertip mine • Established relia
Slide 35: A Business Improvement Framework for the Future
A Business Improvement Framework for the Future EHS performance Higher production Margin expansion Execution Re-integrated operational Development of 3 capabilities strategic initiatives 4 2 Life of mine Technology and Innovation planning 1 Process Enhancements Mining Efficiency NYSE: CDE 35 JC 2016
Slide 36: Introduction to Coeur's Operations Leadership
Introduction to Coeur’s Operations Leadership K ENSINGTON S ILVERTIP W HARF ROCHESTER PALMAREJO James Clark • Silvertip Vice President, Project Development Alberto Reyes • Palmarejo Vice President, Latin America Operations Terry F. D. Smith • Rochester, Wharf, Kensington Vice President, North Americ
Slide 37: Silvertip
Picture here Silvertip James Clark Vice President, Project Development NYSE: CDE 37 JC 2016
Slide 38: Silvertip: Overview
Silvertip: Overview Ownership 100% Claims 90,156 net acres Type Underground Silvertip British Columbia, Canada Crushing, grinding, flotation Processing processing, concentrate thickening Metals Lead concentrate, zinc concentrate 2018E1 Production Share of 2017 R&R3 2017 Reserves and Resources3 (AgEq
Slide 39: Silvertip: Significant Improvements Since Acquisition
Silvertip: Significant Improvements Since Acquisition Workforce • Mine management upgraded with seasoned Coeur General Manager • Meaningful progress made towards replacing contract employees, which accounted for over 50% of workforce at time of acquisition, with permanent employees Environment, Heal
Slide 40: Silvertip: Significant Improvements Since Acquisition (cont.)
Silvertip: Significant Improvements Since Acquisition (cont.) Infrastructure and Equipment • Construction of key site infrastructure including, core logging facility, mobile shop, warehousing as well as dormitories and office space • The expansion of the Potential Acid Generating (PAG) Stockpile • N
Slide 41: Silvertip: Drill Program
Silvertip: Drill Program NYSE: CDE 41 JC 2016
Slide 42: Silvertip: Looking Ahead
Silvertip: Looking Ahead Since acquisition, Coeur has identified numerous areas of opportunity at Silvertip • Automation / modernization of the mill facility and mining operations • Mill flowsheet optimization • Energy efficiencies • Logistic efficiencies • Environmental, Health, Safety and Corporat
Slide 43: Silvertip: Environmental and Social Highlights
Silvertip: Environmental and Social Highlights Stakeholder Engagement and Community • Positive presence in community with “social license to operate” • Focused attention on local and Kaska First Nations group hiring including internal training programs • Sponsorship of Kaska drilling internships • L
Slide 44: Silvertip: Site Video
Silvertip: Site Video NYSE: CDE 44 JC 2016
Slide 45: Palmarejo
Picture here Palmarejo Alberto Reyes Vice President, Latin America Operations NYSE: CDE 45 JC 2016
Slide 46: Palmarejo: Overview
Palmarejo: Overview Ownership 100% Claims 112,520 net acres Type Underground Crushing, grinding, flotation, CIL, Processing Merrill-Crowe precipitation, refining Metals Silver and gold doré Mine life ~6 years Palmarejo Chihuahua, Northern Mexico 2018E1 Production Share of 2017 R&R3 2017 Reserves and
Slide 47: Palmarejo: Transition
Palmarejo: Transition 2017 represented the culmination of synergistic M&A, development of higher- margin production, and high-return exploration • 2014: Renegotiated FNV Underground Transition and Grades gold stream agreement Silver grade (oz/t) Gold grade (oz/t) 5.62 (took effect in 2016) 0.09 • 20
Slide 48: Palmarejo: Near-Mine Exploration
Palmarejo: Near-Mine Exploration Highlights: • Indicated resources identified in northern portion of Nación-Dana – Preliminary mine planning underway – Total strike length, including the southern portion, extends over 1,200 m (4,000 ft) • Initial resource estimate from La Bavisa included at 2017 yea
Slide 49: Palmarejo: Business Improvement Initiatives
Palmarejo: Business Improvement Initiatives Technology and Innovation • Installation of laser scanner at portal to improve productivity • Enhanced Internet Bandwidth from 4mb/sec to 100mb/sec • Introducing Fiber Optics to the UG, ICA then GPE • Implementation of mine dispatch system to improves mine
Slide 50: Palmarejo: Environmental and Social Highlights
Palmarejo: Environmental and Social Highlights Stakeholder Engagement and Community • Focused on Education, Health and Safety, Economy, Water, Employment, and Alliances • Investments in scholarships and education programs • Medical attention, prevention programs, and awareness • Improving and mainta
Slide 51: Mexico Corporate Social Responsibility Recognition
Mexico Corporate Social Responsibility (“CSR”) Recognition • For 10 consecutive years, Coeur Mexicana has. received the Empresa Socialmente Responsable (Socially Responsible Company) award • Recognizes Coeur for protecting the environment, protecting and developing people, delivering benefits to the
Slide 52: Palmarejo: Site Video
Palmarejo: Site Video NYSE: CDE 52 JC 2016
Slide 53: Rochester
Rochester Picture here Terry F. D. Smith Vice President, North America Operations NYSE: CDE 53 JC 2016
Slide 54: Rochester: Overview
Rochester: Overview Ownership 100% Claims 16,494 net acres Type Open pit and heap leach Crushing, dump heap leaching, Processing Merrill-Crowe precipitation, refining Metals Silver and gold doré Rochester Mine life ~21 years Nevada, U.S. 2018E1 Production Share of 2017 R&R3 2017 Reserves and Resourc
Slide 55: Rochester: Transformation
Rochester: Transformation Transformation Highlights Tons Placed (M tons, excluding waste) • From 2013 to 2016, tons placed were increased at a CAGR of 17%, reaching 19.6 million in 2016, before declining in 2017 primarily due to work on the Stage IV leach pad expansion • From 2013 to 2017, AgEq1 pro
Slide 56: Re-Scoped Mine Plan Doubles Rochester's NAV
Re-Scoped Mine Plan1 Doubles Rochester’s NAV A re-scoped mine plan and PEA incorporates the positive economic impact expected from the potential addition of HPGR technology to Rochester’s crushing circuit beginning in early 2019 2017 TR 2018 PEA Highlights of Expected HPGR Impact Mine Life 2031 2038
Slide 57: What is HPGR?
What is HPGR? High pressure grinding rolls are relatively new to precious metals operations, although the technology has been proven in processing other materials • HPGRs have been used in the aggregates sector for High Pressure Grinding Roll Schematic decades, though early challenges associated wit
Slide 58: What is HPGR? (cont.)
What is HPGR? (cont.) Traditional Cone Crusher Product HPGR Product NYSE: CDE 58 JC 2016
Slide 59: What is HPGR? (cont.)
What is HPGR? (cont.) Before crushing / leaching After HPGR crushing / leaching Head Sample showing silver mineralization Microfractured, leached sample and no visible mineralization NYSE: CDE 59 JC 2016
Slide 60: Rochester: Looking Ahead
Rochester: Looking Ahead Near Term – Upgrade and Enhance XPIT • Placed order for new secondary crusher and HPGR • Shut down the INPIT crushing plant in Q4 • Begin construction of HPGR installation in Q4 • Complete construction of HPGR in Q1 2019 Construct Limerick crusher and Stage VI (POA11) • Comp
Slide 61: Rochester: Plan View of Pit
Rochester: Plan View of Pit NYSE: CDE 61 JC 2016
Slide 62: Rochester: Exploration Plan Views
Rochester: Exploration Plan Views of Rochester Pit and Resource Model1 YE2017 Classification with Proposed Drill Holes Inferred Targeted for Potential Conversion (Blue) M&I (Measured & Indicated) Inferred Inferred Targeted for Conversion Unclassified (1) For additional information regarding Rocheste
Slide 63: Rochester: Exploration Cross Section Views
Rochester: Exploration (cont.) Cross Section Views of Rochester Pit and Resource Model1 YE2017 Classification with Proposed Drill Holes Stage 1 Jan. 1 2018 Topo backfill Inferred Targeted for Potential Conversion if Full Drill Program Completed Stage 1 Jan. 1 2018 Topo backfill M&I (Measured & Indic
Slide 64: Rochester: Business Improvement Initiatives
Rochester: Business Improvement Initiatives Technology and Innovation • High precision Drill GPS to improve blasting / fragmentation • Tire monitoring technology to minimize premature failures • Mine dispatch and equipment tracking to improve mine efficiency Process Enhancements • Reduction in liner
Slide 65: Rochester: Environmental and Social Highlights
Rochester: Environmental and Social Highlights Stakeholder Engagement and Community • Committed to community investment beyond required contributions • Developing a community foundation that will exist beyond mine life • Extensive support to local schools, programs, family and health organizations,
Slide 66: Rochester Recognized as a Safety Leader
Rochester Recognized as a Safety Leader Our Rochester mine was named: #1 safest medium-size surface operation in Nevada by the Nevada Mining Association in 2017, and second safest open pit mine in the U.S. by the Mine Safety and Health Administration in 2017 NYSE: CDE 66 JC 2016
Slide 67: Rochester: Site Video
Rochester: Site Video NYSE: CDE 67 JC 2016
Slide 68: Wharf
Picture here Wharf Terry F. D. Smith Vice President, North America Operations NYSE: CDE 68 JC 2016
Slide 69: Wharf: Overview
Wharf: Overview Ownership 100% Claims 7,852 net acres Type Open pit and heap leach Crushing, “on-off” heap leaching, Processing spent ore neutralization, carbon absorption/desorption Wharf South Dakota, U.S. Metals Electrolytic cathodic sludge Mine life ~7 years 2018E1 Production Share of 2017 R&R3
Slide 70: Wharf: Transformation
Wharf: Transformation Acquired in early 2015, Wharf has already generated a return on investment of approximately 20%1, driven by operational improvements, targeted investments in exploration, and several technical and modeling enhancements $13.9 ($1.7) Free Cash Flow2 $11.9 ($M) $7.3 $7.7 $14.1 $14
Slide 71: Wharf: Plan View
Wharf: Plan View NYSE: CDE 71 JC 2016
Slide 72: Wharf: Business Improvement Initiatives
Wharf: Business Improvement Initiatives Technology and Innovation • Mine dispatch and equipment tracking to improve mine efficiency • High precision Drill GPS to improve blasting / fragmentation • Loader GPS to reduce dilution / improve mining recovery • Fatigue management application / operator mon
Slide 73: Wharf: Environmental and Social Highlights
Wharf: Environmental and Social Highlights Stakeholder Engagement and Community • Giving back to the community through the Wharf Sustainable Prosperity Fund - encourages sustainable development, lasting relationships, and long-term social and economic benefits • Cultivated community development and
Slide 74: Wharf: Site Video
Wharf: Site Video NYSE: CDE 74 JC 2016
Slide 75: Kensington
Picture here Kensington Terry F. D. Smith Vice President, North America Operations NYSE: CDE 75 JC 2016
Slide 76: Kensington: Overview
Kensington: Overview Ownership 100% Claims 12,336 net acres Type Underground Processing Crushing, grinding, flotation Kensington processing Alaska, U.S. Metals Gold concentrate Mine life ~5 years 2018E1 Production Share of 2017 R&R3 2017 Reserves and Resources3 (AgEqOz2) (AgEqOz2) Grade (oz/t) Ounce
Slide 77: Kensington: Transformation
Kensington: Transformation Transformation Highlights Tons Milled • From 2012 to 2017, tons milled increased 69% as 660,464 668,727 mill feed increased from less than 1,300 tpd to 635,960 620,209 approximately 1,900 tpd, exceeding nameplate 553,717 capacity • Over the same period, CAS per AuOz1 decli
Slide 78: Improved Economics Expected at Kensington
Improved Economics Expected at Kensington Kensington’s updated technical report demonstrates the strong potential impact of a relatively small amount of high-grade mill feed on overall mine economics Highlights of Kensington Technical Report Continued Exploration Potential • 13% increase in expected
Slide 79: Kensington: Mine Map with Targets
Kensington: Mine Map with Targets NYSE: CDE 79 JC 2016
Slide 80: Kensington: Isometric View of Planned Drilling
Kensington: Isometric View of Planned Drilling NYSE: CDE 80 JC 2016
Slide 81: Kensington: Long Section of Planned Drilling at Main
Kensington: Long Section of Planned Drilling at Main NYSE: CDE 81 JC 2016
Slide 82: Kensington: Long Section of Planned Drilling at Raven
Kensington: Long Section of Planned Drilling at Raven NYSE: CDE 82 JC 2016
Slide 83: Kensington: Looking Ahead
Kensington: Looking Ahead Near Term - Dewatering and Ramp-up of Jualin / Efforts to Grow Raven Resource • Install dewatering infrastructure Q2 • Being dewatering / recommence underground development Q3 • Complete up dip / southern strike / down dip drilling of Raven • Ramp up narrow vein / high grad
Slide 84: Kensington: Business Improvement Initiatives
Kensington: Business Improvement Initiatives Technology and Innovation • Successful trial of automated underground drills and loaders • Mine dispatch and equipment tracking to improve mine efficiency Process Enhancements • Use of ore sorting technology to increase mill recovery • Increased concentra
Slide 85: Kensington: Environmental and Social Highlights
Kensington: Environmental and Social Highlights Stakeholder Engagement and Community • Deep roots in Southeast Alaska • Major supporter and partner with United Way and local school district, extensive involvement with University of Alaska, local schools, programs, youth recreation, and community eve
Slide 86: Kensington: Site Video
Kensington: Site Video NYSE: CDE 86 JC 2016
Slide 87: Exploration
Exploration Hans Rasmussen Senior Vice President, Exploration NYSE: CDE 87 JC 2016
Slide 88: Exploration: A Balance of Low Risk, High Reward
Exploration: A Balance of Low Risk, High Reward Low risk, Palmarejo Silvertip Kensington Rochester Wharf high reward Add new Grow Add high- Continue Near-mine Brownfield infrastructure, veins resource grade feed to grow grade, grow with mine mine life Leverage Nevada Mexico Yukon-BC Strategic Recogn
Slide 89: Portfolio Further Strengthened During 1Q
Portfolio Further Strengthened During 1Q With Coeur’s portfolio now North America-focused and U.S.-centric, our exploration focus has narrowed. We are now focused on greater exploration potential in mining-friendly jurisdictions with less security and political risk Exited Australia, as well as two
Slide 90: Commitment to Exploration Program
Commitment to Exploration Program Coeur continued to invest in its near-mine exploration program during 1Q 2018, with Palmarejo, Kensington and Silvertip accounting for approximately two-thirds of the companywide total Total Exploration Investment Amortization Per Ounce2 ($M) ($) Expensed Capitalize
Slide 91: Exploration: Balanced Growth Portfolio Summary
Exploration: Balanced Growth Portfolio Summary Greenfield exploration accounts for 15% of companywide total exploration budget Klaza (Rockhaven Resources) Late Stage/PEA • Equity ownership (RK-TSXV) • 2M oz AuEq (6.6 g/t) inferred resource Greenfield • Early-stage exploration project K ENSINGTON S I
Slide 92: Tonopah District Targets
Tonopah District Targets Nevada Total recorded production for the Tonopah Mining District from 1900 to 1961 was 8,798,126 tons yielding: Rochester • 1,8M ounces of gold; • 174M ounces of silver; Tonopah • 18,304 pounds of copper, and Beatty • 292,114 pounds of lead. • The Tonopah Extension Mine was
Slide 93: La Morita, Chihuahua, Vein Targets
La Morita, Chihuahua, Vein Targets La Morita is a carbonate-hosted polymetallic system. Veins have La Morita Ag-Pb-Zn and barite. Currently, the owner is mining and selling a Ag-Pb concentrate as well as barite. We have completed 40 holes – a first geologic resource model is being prepared. Coeur ha
Slide 94: Active Portfolio Management to Enhance Pipeline
Active Portfolio Management to Enhance Pipeline Coeur has invested in 5 companies for a total of $10.9 million. In all cases, Coeur provides advice on advancing and de-risking the applicable projects. In some cases, this includes formalized membership on the Technical Team Cost Ownership Company Bas
Slide 95: Closing Remarks
Closing Remarks Mitchell J. Krebs President & Chief Executive Officer NYSE: CDE 95 JC 2016
Slide 96: Coeur Mining Is Uniquely Positioned
Coeur Mining Is Uniquely Positioned U.S.-listed, incorporated and based Stockholder-friendly corporate governance policies Balanced North American, U.S.-centric portfolio Attractive size and scale Platform and capabilities for quality growth Strong and flexible balance sheet Discipline
Slide 97: Appendix
Appendix NYSE: CDE 97 JC 2016
Slide 98: Our People: Our Most Valuable Asset
Our People: Our Most Valuable Asset In 2017, Coeur achieved the National Mining Association CORESafety certification Since 2012, the Company’s injury frequency rates are significantly below industry averages Lost-Time Injury Frequency Rate Total Reportable Injury Frequency Rate Industry average1 Ind
Slide 99: Community Benefits and Partnerships
Community Benefits and Partnerships Benefited 287 community groups in 2017 Select local partnerships: Silvertip: Kaska First Nations Socio-Economic Participation Agreement Wharf: Wharf Fund Sustainability Program Rochester: Lovelock High School scholarships Kensington: Contracting and em
Slide 100: Proactive Environmental Stewardship
Proactive Environmental Stewardship Since 2012: • 44% Reduction in greenhouse gas emissions per ton processed • 39% Reduction in direct energy consumption per ton processed • 64% Reduction in total energy cost (USD) per ton processed • 50% Reduction in the amount of waste generated • 139% Increase i
Slide 101: Best-in-Class Corporate Governance
Best-in-Class Corporate Governance Governance Practices Board Refreshment and • Two new independent directors added to the Board in February 2018 and Succession Planning five directors – or 50% of the Board – added in last five years • In 2017, the Board engaged a third party to consult on refreshme
Slide 102: Diverse Board Led by Independent Chair
Diverse Board Led by Independent Chair • Nine out of ten Directors are independent (all except CEO); all four main committees comprised of independent directors only • Two new directors appointed in February 2018 having skills and experiences that complement other directors • Balance of newer and lo
Slide 103: 2018 Incentive Plan Aligned with Strategic Objectives
2018 Incentive Plan Aligned with Strategic Objectives TRIFR1 % Reduction (with potential modifier PROTECT for top/bottom quartile performance vs. top tier U.S. metals companies) AIP2 15% % Reduction in Significant Spills DEVELOP Three-Year Growth in Reserves and PSU3 50% Measured & Indicated Resourc
Slide 104: Code of Business Conduct & Ethics Highlights
Code of Business Conduct & Ethics Highlights We Pursue a Higher Standard Health & Safety - We are responsible for our own health & safety, & the health & safety of those around us PROTECT Alcohol & Drugs - We have zero tolerance for working while under the influence of drugs or alcohol Environmental
Slide 105: Overview of Initial Silvertip Mine Plan
Overview of Initial Silvertip Mine Plan1 Operating Parameters2 Costs Assumptions2 Units LOM Units LOM Total ore production M tonnes 2.7 Pre-production capex US$M $25 - $35 Initial mine life Years 7.5 Sustaining capex US$M $55 - $65 Average production rate tpd 1,000 Operating costs Average annual pro
Slide 106: Notes to Initial Silvertip Mine Plan
Notes to Initial Silvertip Mine Plan Notes to the Silvertip summary mine plan: (a) This economic analysis is preliminary in nature and is based upon the current resource estimate as set out in this presentation which includes inferred mineral resources. Inferred resources are considered too speculat
Slide 107: Summary of Rochester PEA
Summary of Rochester PEA1 Highlights 2017 TR 2018 PEA Proven and probable reserves • Re-scoped mine plan and PEA incorporate the Mineralized material tons K tons 244,804 Mineralized material gold grade oz/t 0.003 anticipated economic benefit from: Mineralized material silver grade oz/t 0.46 Measured
Slide 108: Notes to Rochester's Re-Scoped Mine Plan and PEA
Notes to Rochester’s Re-Scoped Mine Plan and PEA (a) 2018 PEA is effective December 31, 2017 and filed March 5, 2018 and the 2017 Technical Report is effective December 31, 2016. (b) Assumed metals prices for estimated Mineral Resources included in the 2018 Technical Report were $20.00 per ounce of
Slide 109: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 109 JC 2016
Slide 110: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Unaudited Adjusted Net Income (Loss) ($ thousands) 1Q 2018 2017 4Q 2017 3Q 2017 2Q 2017 1Q 2017 2016 2015 2014 Net income (loss) $1,241 ($1,319) $7,625 ($16,652) ($10,955) $18,663 $55,352 ($367,183) ($1,186,874) Income (loss) from discont. ops., net of tax (550)
Slide 111: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 1Q 2018 2017 4Q 2017 3Q 2017 2Q 2017 1Q 2017 2016 2015 2014 Net income (loss) $1,241 ($1,319) $7,625 ($16,652) ($10,955) $18,663 $55,352 ($367,183) ($1,186,874) Income (loss) from discont. ops., net of tax (550) 12,
Slide 112: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow Consolidated ($ thousands) 1Q 2018 2017 4Q 2017 3Q 2017 2Q 2017 1Q 2017 2016 2015 2014 Cash flow from operating activities $15,541 $197,160 $91,811 $37,308 $24,103 $43,938 $96,461 $87,412 $15,579 Capital expenditures (42,345) (136
Slide 113: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Leverage Ratios (for Continuing Operations in the Period Noted) LTM Adjusted EBITDA Consolidated Debt ($ thousands) 1Q 2018 3Q 2015 ($ thousands) 1Q 2018 3Q 2015 Net income (loss) ($6,683) ($1,174,213) Cash and cash equivalents $159,643 $205,708
Slide 114: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Amortization per Ounce ($ thousands, except per ounce amounts) 1Q 2018 4Q 2017 3Q 2017 2Q 2017 1Q 2017 Amortization $30,530 $44,471 $32,112 $30,433 $38,368 Consolidated silver equivalent ounces sold (average spot) 10,066,759 13,248,337 9,698,654
Slide 115: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2018 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $47,421 $29,136 $76,
Slide 116: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2017 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $219,920 $13
Slide 117: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2017 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $58,775
Slide 118: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2017 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $49,669
Slide 119: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2017 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $48,325 $29,
Slide 120: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2017 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $63,151 $32
Slide 121: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2016 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $117,419 $11
Slide 122: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2015 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $170,899 $12
Slide 123: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2014 Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Endeavor Total Kensington Total Costs applicable to sales, including amortization (U.S. GAAP) $256,707 $112,252 $8,514
Slide 124: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited All-in Sustaining Costs ($ thousands, except per ounce amounts) 1Q 2018 2017 4Q 2017 3Q 2017 2Q 2017 1Q 2017 2016 2015 2014 Costs applicable to sales $99,340 $440,260 $121,983 $101,557 $102,229 $114,490 $335,375 $403,827 $388,286 Treatment and r
Slide 125: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) All-in Sustaining Costs for 2018 Guidance Unaudited Per 60:1 Silver Equivalent Ounce Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Silvertip Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.
Slide 126: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) All-in Sustaining Costs for 2018 Guidance Unaudited Per Spot Silver Equivalent Ounce Silver Gold ($ thousands, except per ounce amounts) Palmarejo Rochester Silvertip Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.
Slide 127: Average Spot Equivalence
Average Spot Equivalence Average Spot Prices 1Q 2018 2017 4Q 2017 3Q 2017 2Q 2017 1Q 2017 2016 2015 2014 Average silver spot price per ounce $16.77 $17.05 $16.73 $16.84 $17.21 $17.42 $17.14 $15.68 $19.08 Average gold spot price per ounce $1,329 $1,257 $1,275 $1,278 $1,257 $1,219 $1,251 $1,160 $1,266
Slide 128: Reserves and Resources
Reserves and Resources 2017 Proven and Probable Mineral Reserves Grade Contained Location Short tons Silver (oz/t) Gold (oz/t) Lead (%) Zinc (%) Silver (oz) Gold (oz) Lead (lbs) Zinc (lbs) PROVEN RESERVES Palmarejo Mexico 1,571,000 3.81 0.073 5,978,000 115,000 Rochester Nevada, USA 195,724,000 0.45
Slide 129: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Silver (oz/t) Gold (oz/t) Lead (%) Zinc (%) Silver (oz) Gold (oz) Lead (lbs) Zinc (lbs) MEASURED RESOURCES Palmarejo Mexico 629,000 3.07 0.051 1,928,000 32,000 Roches
Slide 130: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 Inferred Mineral Resources Grade Contained Location Short tons Silver (oz/t) Gold (oz/t) Lead (%) Zinc (%) Silver (oz) Gold (oz) Lead (lbs) Zinc (lbs) INFERRED RESOURCES Palmarejo Mexico 7,336,000 4.23 0.050 31,061,000 369,000 Rochester Nevada, USA 131,570,000 0.4
Slide 131: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Proven and Probable Mineral Reserves Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold PROVEN RESERVES Palmarejo Mexico 1,569,000 4.44 0.080 6,971,000 126,000 Rochester Nevada, USA 143,686,000 0.48 0.004 68,369,000 503,000 Kensington Al
Slide 132: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Measured and Indicated Mineral Resources (excluding Reserves) Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold MEASURED RESOURCES Palmarejo Mexico 818,000 3.20 0.061 2,618,000 50,000 Rochester Nevada, USA 39,732,000 0.59 0.003 23,281,0
Slide 133: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold INFERRED RESOURCES Palmarejo Mexico 4,726,000 4.35 0.055 20,540,000 258,000 Rochester Nevada, USA 67,778,000 0.52 0.003 35,554,000 178,000 Kensington Alaska, U
Slide 134: Executive Leadership
Executive Leadership Mitchell J. Krebs – President and Chief Executive Officer. During his twenty-year tenure with Coeur, Mr. Krebs has led nearly $2 billion in capital raising and debt restructuring activities and has facilitated over $2 billion of acquisitions and divestitures. Mr. Krebs was previ
Slide 135: Board of Directors
Board of Directors Robert E. Mellor – Former Chairman, Chief Executive Officer, and President of Building Materials Holding Corporation (distribution, manufacturing, and sales of building materials and component products) from 1997 to January 2010, director from 1991 to January 2010; member of the b
Slide 136: Contact Information
Contact Information Corporate Office Coeur Mining, Inc. 104 S. Michigan Ave., Suite 900 Chicago, IL 60603 Main Telephone +1 (312) 489-5800 Stock Ticker CDE: NYSE Website www.coeur.com Contact Courtney R. B. Lynn VP, Investor Relations & Treasurer investors@coeur.com NYSE: CDE 136 JC 2016