Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — TD Securities Mining Conference 2016
40 slides from Coeur Mining's conference presentation, Jan 27, 2016
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference Mitchell J. Krebs, President, Chief Executive Officer, and Director Toronto, ON January 27, 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 anticipated production, costs, and mining rates, mine plans, grades, recovery rates, mine life, debt levels, explor
Slide 3: Investment Considerations
Investment Considerations Well‐advanced repositioning Diversified which may not be portfolio of silver fully appreciated and gold assets Executing strategy to reduce costs, in improve returns, the market and drive significant future free cash flow Delivering on Significant free cash strategy to redu
Slide 4: Growing Track Record of Successful Execution
Growing Track Record of Successful Execution 2015 production of 35.6 million AgEq ounces, in‐line with guidance and a 10% increase over 2014 Sector‐leading cost reductions with further declines expected Completed two acquisitions in past twelve months that are expected to meaningfully boost cash flo
Slide 5: Leading Producer of Silver and Gold
Leading Producer of Silver and Gold 2015 Silver Equivalent Production by Mine (millions of ounces) Revenue by Metal 0.6 22% 36% 34% 40% 48% 48% 59% 4.7 Palmarejo 9.4 78% Rochester 64% 66% Gold San Bartolomé 60% 7.6 52% 52% Kensington 41% Silver Wharf 7.7 Endeavor 5.4 2009 2010 2011 2012 2013 2014 YT
Slide 6: Diversified Portfolio of Silver and Gold Assets
Diversified Portfolio of Silver and Gold Assets Ticker: Exchange CDE: NYSE Kensington Mine, Alaska Shares Outstanding1 151.3M 2015: 126,266 oz Au 2016E: 115,000 ‐ 125,000 oz Au Avg. Daily Volume1 $4.0M Wharf Mine, South Dakota 2015: 78,132 oz Au 52‐week Low – High1 $1.62 ‐ $7.45 2016E: 90,000 – 95,0
Slide 7: Costs Decline for Third Consecutive Quarter
Costs Decline for Third Consecutive Quarter Companywide Adj. CAS / AgEq oz1 Companywide Adj. CAS / AuEq oz1 $951 $14.18 $ per AuEq oz $13.71 $ per AgEq oz $13.68 $816 $12.56 $12.90 $12.07 $797 $783 $11.75 $11.00 FY'14 1Q'15 2Q'15 3Q'15 FY'14 1Q'15 2Q'15 3Q'15 Companywide Adj. AISC / AgEq oz1 $19.23
Slide 8: Declining G&A; Low Compared with the Peer Group
Declining G&A; Low Compared with the Peer Group 3Q 2015 G&A as % of Revenue Coeur G&A $11 19.2% $10 $9.4 16.0% $9.0 $9 $8.8 $8.5 In Millions $8.5 $8 9.1% 7.4% 7.3% $7 $6.7 5.9% 4.1% 4.1% 4.0% $6 1.0% $5 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Source: G&A and Revenue as reported by each company in their
Slide 9: Coeur is Consistently and Aggressively Reducing Operating Costs
Coeur is Consistently and Aggressively Reducing Operating Costs Coeur is a Leader in Reducing Costs on Both QoQ and YoY as of 3Q15 50% 40% 38% 34% % decline in primary per ounce cost metric 30% 20% 16% 13% 10% 9% 6% 6% 6% 4% 0% 1% 1% 2% 0% 0% ‐4% ‐3% ‐4% ‐5% ‐10% ‐9% ‐20% ‐17% ‐16% ‐20% ‐19% ‐24% ‐3
Slide 10: Leveraged Mining Equities Impacted by Declines in Silver and Gold Prices
Leveraged Mining Equities Have Been More Heavily Impacted by Declines in Silver and Gold Prices LTM Price Performance Stock price performance vs. Net Debt / 2016E EBITDA ‐20% Gold ‐12.3% Silver ‐17.9% ‐25% SSRI ‐30% SSRI ‐25.1% PAAS ‐40.6% ‐35% Stock performance (LTM) HL ‐41.9% ‐40% PAAS TAHO ‐43.2%
Slide 11: Proactively Reducing Debt While Maintaining Liquidity
Proactively Reducing Debt While Maintaining Liquidity Balance Sheet Highlights Net debt / LTM Adj. EBITDA1 $ in millions YE’14 3Q’15 4.2x Cash $270.9 $204.7 4.0x 3.8x Total debt $478.4 $492.0 3.2x Net debt $207.5 $287.3 LTM Adj. EBITDA1 $85.0 $89.6 Total debt/LTM Adj. EBITDA1 5.6x 5.5x Net debt/LTM
Slide 12: Palmarejo: World's 9th Largest Silver Mine
Palmarejo: World’s 9th Largest Silver Mine Today at Palmarejo Palmarejo’s Future Acquisition of Paramount in April 2015 provides Transitioning to underground second source of high‐grade mineralization to mining to maximize margins and supplement rising production from Guadalupe cash flow Developme
Slide 13: Adding Higher-Grade Silver and Gold Reserves at Palmarejo
Quality vs. Quantity: Adding Higher‐Grade Silver and Gold Reserves at Palmarejo Reserves continue to grow at significantly higher grades despite lower reserve prices of $17.50/oz silver and $1,250/oz gold as of 8/31/15 Palmarejo Proven & Probable Reserves Palmarejo Proven & Probable Reserves Contain
Slide 14: Rochester: 2nd Largest Primary Silver Mine in the U.S.
Rochester: 2nd Largest Primary Silver Mine in the U.S. Today at Rochester Rochester’s Future Permitting for 120 million tons of additional leach pad capacity well underway Executing in‐pit crusher expansion and increased Stage III leach pad Majority of related capex deferred until 2017, capacity d
Slide 15: Kensington: 100% Pure Gold Mine
Kensington: 100% Pure Gold Mine Today at Kensington Kensington’s Future Re‐scoped mine plan demonstrates strategy to • 2015 production of 126,266 ounces; Third consecutive year of source ore from higher‐grade areas over the LOM record operating results • New sorting technology implemented to further
Slide 16: Wharf: The Newest Addition to Coeur's Portfolio
Wharf: The Newest Addition to Coeur’s Portfolio Today at Wharf Wharf’s Future • Gold equivalent production Higher production level expected to continue at increased 40% in the third lower unit costs through 4Q due to an increase quarter in production from the high‐grade Golden Reward pit • Free cash
Slide 17: San Bartolomé: One of the World's Largest Pure Silver Mines
San Bartolomé: One of the World’s Largest Pure Silver Mines Today at San Bartolomé San Bartolomé's Future • Straightforward operation due to free‐ Test work underway on processing digging surface mining techniques (no enhancements to improve recoveries drilling or blasting) Potential to lower costs
Slide 18: Why Consider Coeur Mining
Why Consider Coeur Mining Well‐diversified, growing, U.S. precious metals company Significant transition well‐underway leading to positive free cash flow Achieving industry‐leading cost reductions Recent acquisitions beginning to have significant impact Strong liquidity position with several near‐te
Slide 19: Appendix
Appendix
Slide 20: Highlights from Research Analyst Reports on CDE Since 3Q 2015
Highlights from Research Analyst’s Reports on CDE Since 3Q 2015 “We continue to view 2015/16 as a transitional period for CDE, as the company re‐tools its operations to operate more economically in the current low metal price environment.” – Chris Thompson, Raymond James “Coeur posted solid Q3 resul
Slide 21: 2015 Cost Guidance and 2016 Production Guidance
2015 Cost Guidance and 2016 Production Guidance Silver Production Guidance1 Gold Production Guidance1 Ounces in thousands 5,850 126,266 120,000 5,436 5,149 4,631 4,950 92,500 4,050 Ounces 78,132 70,922 69,500 52,588 51,500 629 375 San Bartolomé Rochester Palmarejo Endeavor Kensington Wharf Palmarejo
Slide 22: Palmarejo: Higher-Grade, Higher-Margin Ounces Driving Lower Costs
Palmarejo: Higher‐Grade, Higher‐Margin Ounces Driving Lower Costs; Transition Well‐Underway $15.70 $14.56 $13.21 $14.49 $13.52 $11.40 $22.9 $12.07 $ in millions $10.01 1.4 1.4 1.4 1.2 22,974 1.1 $10.5 $10.9 $9.7 $10.7 $9.2 18,127 ounces 15,237 15,495 14,326 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 ($0.2) ($3.2
Slide 23: Rochester: Lower Mining and Leaching Costs Sustain Low CAS per AgEq oz
Rochester: Lower Mining and Leaching Costs Sustain Low CAS per AgEq oz1 $12.75 $11.91 $12.01 $12.01 $13.82 $16.4 $12.95 $10.94 $10.89 1.3 $ in millions 1.2 1.1 1.1 $10.2 1.1 $8.8 ounces 15,764 16,411 13,721 $5.9 $6.5 $5.3 10,892 11,564 $2.7 $3.3 4Q'14 1Q'15 2Q'15 3Q'15 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Slide 24: Kensington: Development of Decline into High-Grade Jualin Deposit
Kensington: Development of Decline into High‐Grade Jualin Deposit Underway $745 $842 $792 $797 $12.3 $12.0 33,533 33,909 33,714 $8.9 29,845 28,799 $ in millions $5.5 ounces $4.7 $3.9 $4.1 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 ($3.7) 4Q'14 1Q'15 2Q'15 3Q'15 Adj. CAS per gold oz1 Gold production Cash flow fro
Slide 25: Wharf: Increased Production and Grade from Golden Reward
Wharf: Increased Production and Grade from Golden Reward Drives Lower Costs $970 $716 32,231 $12.9 $ in millions 23,427 16,794 $8.2 ounces 6,609 $1.2 $0.7 $0.1 1 1Q'15 2Q'15 3Q'15 4Q'15 ($7.2) 1Q'151 2Q'15 3Q'15 Adj. CAS per AuEq oz 2 Gold Equivalent Production Cash flow from operating activities Ca
Slide 26: San Bartolomé: Addition of Higher-Grade, Lower-Cost Ore
San Bartolomé: Addition of Higher‐Grade, Lower‐Cost Ore Purchased from Local Sources $14.38 $14.41 $14.47 $13.26 $5.4 $5.7 $5.0 1.6 $ in millions 1.5 1.5 1.2 1.2 ounces $2.3 $2.0 $1.8 $0.9 $1.0 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 4Q'14 1Q'15 2Q'15 3Q'15 1 Adj CAS per Ag oz Silver production (millions) Cas
Slide 27: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) LTM Adjusted EBITDA in thousands LTM 9/30/15 LTM 6/30/15 LTM 3/31/15 Net income (loss) ($1,143,221) ($1,125,536) ($1,151,980) Interest expense, net of capitalized interest 44,511 43,680 45,257 Other, net 12,547 4,959 7,124 Income tax provision (benefi
Slide 28: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended September 30, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended September 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver C
Slide 29: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended June 30, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended June 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs appli
Slide 30: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended March 31, 2015 Silver Gold (dollars in thousands except per ounce costs) Total Three months ended March 31, 2015 San Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, includ
Slide 31: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total three months ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales,
Slide 32: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended September 30, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total three months ended September 30, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales
Slide 33: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Full‐year ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total Full‐year ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, includ
Slide 34: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) All‐In Sustaining Costs in thousands except per ounce costs 3Q 2015 2Q 2015 1Q 2015 FY 2014 Costs applicable to sales, including amortization (U.S. GAAP) $155,929 $164,125 $146,742 $635,516 Amortization 35,692 45,028 31,680 157,571 Costs applicable to
Slide 35: Coeur's Mineral Reserves
Coeur’s Mineral Reserves Grade (oz/ton) Ounces (contained) Year‐end 2014 Location Short tons Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 89,077,000 0.56 0.004 49,786,000 346,000 San Bartolomé Bolivia 1,206,000 2.73 ‐ 3,287,000 ‐ Kensington Alaska, USA 417,000 ‐ 0.187 ‐ 78,000 Endea
Slide 36: Coeur's Measured and Indicated Mineral Resources
Coeur’s Measured and Indicated Mineral Resources (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year‐end 2014 Location Short tons Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 72,228,000 0.45 0.003 32,565,000 218,000 Martha Argentina ‐ ‐ ‐ ‐ ‐ San Bartolomé Bolivia ‐ ‐ ‐ ‐
Slide 37: Coeur's Inferred Mineral Resources
Coeur’s Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Year‐end 2014 Location Short tons Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 96,039,000 0.42 0.003 40,789,000 263,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 66,000 1.68 ‐ 111,0
Slide 38: 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 39: 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 boa
Slide 40: Contact Information
Contact Information Corporate Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489‐5800 Stock Ticker: CDE: NYSE Warrant Ticker: CDM.WT: TSX Website: coeur.com Contact: Rebecca Hussey Senior Analyst, Investor Relations rhussey@coeur.com NYSE: CDE 40