Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Coeur d'Alene Mines — Merger or Acquisition (September 2004)
38 slides from Coeur Mining's merger presentation, September 2004
Slide 1: Creating the Premier Precious Metals Growth Platform
Coeur-Wheaton Creating the Premier Precious Metals Growth Platform September 2004 Coeur d’Alene Mines Corporation (NYSE:CDE) Wheaton River Minerals Ltd. (TSX:WRM / AMEX:WHT)
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains numerous forward-looking statements relating to the Company's silver and gold mining business. Such forward-looking statements include the statements below as to the impact of the proposed acquisition on both the combined entity and the Company’s stockhol
Slide 3: The Coeur Offer – Highlights
The Coeur Offer – Highlights Trading TradingLiquidity Liquidityofofaa Senior SeniorProducer Producer + 17% 17%Premium Premium (1) (1) 24% 24%ininCash (1) Cash(1) + Significant SignificantRe-Rating Re-Rating Potential Coeur-Wheaton Coeur-Wheaton = Potential + NYSE NYSEandandTSX TSXlistings listings C
Slide 4: The Coeur Offer has a Significant Cash Component
The Coeur Offer has a Significant Cash Component Offer includes C$570 million of cash Represents a minimum of C$1.00 in cash per share(1) Cash in the Offer(2) $5.00 $4.09 Offer Value - August 30, 2004 (C$) $4.00 $3.51 17% 17% premium premium $3.00 $3.09 $2.00 $1.00 Cash: Cash: 24% 24% $1.00 $0.00 Cu
Slide 5: Offer Timetable
Offer Timetable Process Timing Mail tender offer materials to all Wheaton shareholders (August 23) Mail proxy materials for Coeur Special Shareholder Meeting to Coeur shareholders (September 1) Receive all necessary regulatory approvals By September 26th Coeur Shareholder meeting September 30th Expi
Slide 6: Company Highlights
Coeur-Wheaton Company Highlights
Slide 7: A Fast Growing Intermediate Precious Metals Company
A Fast Growing Intermediate Precious Metals Company … Market Capitalization (US$ billions)(1) Newmont $5.5 $17.8 Producers Senior Barrick $11.1 $4.5 Placer Dome $3.5 $6.5 Coeur-Wheaton Coeur-Wheaton $2.9 Goldcorp $2.3 Intermediate Producers Glamis $2.2 Kinross $2.1 Meridian $1.3 Agnico $1.2 (1) Base
Slide 8: … With the Trading Liquidity of a Senior Producer
… With the Trading Liquidity of a Senior Producer Average daily trading volume of $76 million NYSE and TSX listings Average Daily Trading Liquidity (US$ millions/day)(1) Newmont $291.0 Producers Senior Barrick $95.2 Placer Dome $76.7 Coeur-Wheaton: Coeur-Wheaton Coeur-Wheaton $76.3 $76 million Per D
Slide 9: Significant Re-Rating Potential
Significant Re-Rating Potential Price / NAV Multiples 2.2x 1.6x 1.6x 38% Multiple Increase Coeur Wheaton Average Intermediate Producers Source: CIBC World Markets Research estimates, based on spot commodity prices. 8
Slide 10: Creates a Significant Global Gold Producer
Creates a Significant Global Gold Producer … Existing development projects to increase gold equivalent production by approximately 55% over the next 3 years Global Gold Producers (2004E)(1) Newmont 7.0 AngloGold 6.5 Barrick 4.9 Goldfields 4.2 Harmony 4.0 Kinross 1.7 Buenaventura 1.6 Coeur-Wheaton Ne
Slide 11: … and the #1 Primary Silver Producer in the World
… and the #1 Primary Silver Producer in the World Combined company’s silver production is expected to be approximately 22 million ounces in 2004, reaching an expected 35 million ounces in 2007 50% increase in Coeur’s silver production and a 200% increase for Wheaton Silver Production - 2004E(1) Silv
Slide 12: Strong and Growing Reserve Base
Strong and Growing Reserve Base Leading mineral reserves and resource base among its peers Excellent exploration potential to expand mineral reserves and resources Reported Gold Equivalent Mineral Reserves and Resources(1)(2) Kinross 14.9 6.3 2.4 Newco Coeur-Wheaton 9.8 4.2 8.6 Glamis 6.3 5.3 4.8 Ag
Slide 13: Among the World's Lowest Cost, Unhedged Producers
Among the World’s Lowest Cost, Unhedged Producers Total Cash Costs (2004E)(1)(2) Kinross $230 Cambior $221 Glamis $168 Agnico $160 Goldcorp $106 Newco Coeur-Wheaton $105 Meridian $55 2004E Total Cash Cost/oz Gold Equivalent (US$) (1) Total cash costs as disclosed by individual companies. (2) Coeur-W
Slide 14: Superior Financial Strength
Superior Financial Strength Combined company’s free cash flow provides financial flexibility to fund growth Coeur-Wheaton Net Debt(1) $600 $400 $200 ($ millions) $0 ($200) ($400) ($600) ($800) 2004 2005 2006 2007 2008 (1) Based on a long-term gold price of $400/oz, silver price of $6.00/oz and coppe
Slide 15: Attractive Portfolio of Operations and Development Projects
Attractive Portfolio of Operations and Development Projects … Coeur-Wheaton Coeur-Wheaton KENSINGTON North America Alaska 3 Mines (100%) 2 Development Projects 1 Expansion SILVER VALLEY Idaho (100%) South America ROCHESTER 3 Mines Nevada (100%) LUISMIN 2 Development Projects Mines Mexico 1 Expansion
Slide 16: With Established Operating Expertise to Develop and Operate New Mines
. . . With Established Operating Expertise to Develop and Operate New Mines Coeur has an excellent management team with extensive experience in the exploration, development, and operation of mining properties Coeur intends to create the strongest management team possible by combining the talents fro
Slide 17: The Premier Platform for Growth
The Premier Platform for Growth Balanced 5-year growth strategy Combination of internal and external growth Strong balance sheet and cash flow generation available to fund growth Enhanced access to all capital markets Current Future Internal Growth External Growth Wheaton Wheaton 4 Producing 2 Growt
Slide 18: Coeur-Wheaton: The Precious Metals Stock
Coeur-Wheaton “THE” PRECIOUS METALS STOCK Leading Growth Profile Cash Flow and Liquidity of a Senior Producer Proven Operating Management Superior Financial Strength POSITIONED TO BECOME THE NEXT SENIOR PRODUCER WITH SIGNIFICANT RE-RATING POTENTIAL 17
Slide 19: Operations
Operations
Slide 20: Ray Threlkeld, Don Birak, Al Wilder
Ray Threlkeld Don Birak Al Wilder President Senior Vice President Senior Vice President South America for Coeur Exploration Project Development 30 Years of Mining Experience 26 Years of Mining Experience 33 Years of Mining Experience V.P. Project Development – “Prospector of the Year”, Project Manag
Slide 21: Growing Our Silver Production
Growing Our Silver Production 20,000,000 42% 15,000,000 10,000,000 5,000,000 - 2003 2004E 2004E w /est. annual San Bartolome production* *The San Bartolome project is expected to add six million ounces of silver per year by 2006, an increase of 42% over current levels. 20
Slide 22: Growing Our Gold Production
Growing Our Gold Production 300,000 250,000 % 200,000 70 Up 150,000 100,000 50,000 - 2003 2004E 2004E w /est. annual Kensington production* *The Kensington gold project is expected to add 100,000 ounces of production per year – a 70% increase over 2004 levels – as soon as 2006. 21
Slide 23: San Bartolome Development Project – Bolivia (100%)
San Bartolome Development Project – Bolivia (100%) Surface mine silver project Located adjacent to established industrial infrastructure Updated feasibility work has successfully reduced estimated capital and operating cost parameters San Bartolome Construction of open pit milling Bolivia operation
Slide 24: San Bartolome
San Bartolome Silver contained in large primary and reworked gravel deposits; “Pallacos” Pallacos deposited on flanks of Cerro Rico, a large volcanic dome complex which has been mined continuously since mid-1500’s Reserves; three major Pallacos; Expansion potential 23
Slide 25: Kensington Development Project – Alaska (100%)
Kensington Development Project – Alaska (100%) Underground gold deposit All permits expected to be received in Q4 2004 Updated feasibility study completed – production expected to commence in 2006 Anticipated capital costs of $91.5 million Kensington Alaska Mine production to average 100,000 ounces/
Slide 26: Kensington
Kensington 3-D View (looking Northwest) Lion’s Head Peak 850 Drift Scheduled to Continue to Jualin Main Kensington Zones – Looking NW Gold Hosted in Quartz Veins and Veins Swarms Nine Separate Zones Define Current Mineral Reserves and Resources 25
Slide 27: Cerro Bayo and Martha Mines – Chile/Argentina (100%)
Cerro Bayo and Martha Mines – Chile/Argentina (100%) Cerro Bayo is located in southern Chile and is a high-grade gold and silver mine utilizing both underground and open pit methods Martha is a high-grade, underground silver mine located 270 miles southeast of Cerro Bayo in the Santa Cruz province i
Slide 28: Cerro Bayo/Martha District – Chile/Argentina
Cerro Bayo/Martha District – Chile/Argentina 27
Slide 29: Cerro Bayo District – Chile
Cerro Bayo District – Chile CERRO CERRO BAYO BAYO CAÑADON CAÑADON LAGUNA LAGUNA VERDE VERDE VERDE VERDE MESETA MESETA HORQUETAS HORQUETAS MALLINES MALLINES Reserve Definition Program Resource Discovery Program 28
Slide 30: Cerro Bayo Section (looking North)
Cerro Bayo Section (looking North) WEST WEST EAST EAST AA A’ A’ Reserve Definition Cover Exploration Low Grade Cap Faults Favorable Mineral Horizon Current Reserves 29
Slide 31: Martha Mine - Argentina
Martha Mine - Argentina New, High- grade Discoveries 30
Slide 32: Silver Valley Mine – Idaho (100%)
Silver Valley Mine – Idaho (100%) Located in the Coeur d’Alene Silver Mining District of Idaho One of the world’s most prolific silver producing areas In production since 1955 with historic production of 160 million ounces of silver Currently Galena is the only fully operating mine in the district S
Slide 33: Silver Valley Targets
Coeur Shaft Silver Valley Targets Deep Coeur Exploration Co eur 340 0L Polaris Fault eve l & 288/294 VN 4900 Leve l Polaris Fault 24 00 Galena 72vn Depth Extension Periodicity Target Le ve l Shaft Development Exploration Ga len #3 a3 700 Shaft Lev el Galena #3 N Upper Silver VN Silver Vein 4300-4600
Slide 34: Silver Valley Targets
Silver Valley Targets Ag/Pb Veins Ag/Cu Veins Caladay Shaft #3 Shaft Coeur Shaft Galena Shaft 3400 Level 1200 117 & 215 Upper Silver Vein 4000 Level 400 Polaris Fault 2400 Vein & 288/294 2800 3000 3400 356 483 117 4300-4600 3700 Vein Vein Coeur Silver Vein 3700 4900 Deep Coeur 72 5500 Polaris Fault
Slide 35: Appendix
Appendix
Slide 36: Transaction Details
Transaction Details Summary Transaction: Coeur is offering to acquire 100% of Wheaton for cash or shares Consideration: C$5.47 in cash (subject to proration after a maximum of C$570 million) 0.796 shares of Coeur common stock; or 0.796 Canadian exchangeable shares Implied Premium: 17% premium to cur
Slide 37: Coeur Summary Property Overview
Coeur Summary Property Overview Gold Equivalent Ounces (Au Eq Oz in thousands) Property Proven Probable P+P Measured Indicated M+I Inferred Rochester 515 42 557 430 87 517 2 Cerro Bayo 78 91 170 56 351 407 167 Martha 13 7 20 1 3 4 24 Silver Valley 115 101 216 91 94 185 167 San Bartolome - 1,637 1,63
Slide 38: Gold Equivalent Conversion Assumptions
Gold Equivalent Conversion Assumptions Coeur d'Alene Mines Corporation Gold Equivalent Calculation Summary Assumptions Prices in US$ Mineral Gold Silver Silver Mineral Gold Silver Silver Property Reserves Gold Price Recovery Price Recovery Property Resources Gold Price Recovery Price Recovery Roches
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