Slide 1: Second Quarter and First Six Months 2010
Second Quarter and First Six Months 2010 August 10th, 2010
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, ma
Slide 3: Highlights from Q2 2010
Highlights from Q2 2010 • Record sales and operating cash flow • Early start-up at Kensington – world’s newest pure gold mine - smooth ramp-up underway • Palmarejo ongoing optimization program bolstering operating performance • San Bartolomé achieving consistent production levels at reduced costs •
Slide 4: 100% Precious Metals Asset Base
100% Precious Metals Asset Base Maintaining overall 2010 production outlook of 17.3 million ounces of silver and approximately 170,000 ounces of gold Kensington Gold Mine Silver Gold 2010 start-up Total P&P Reserves: 1,478K oz Au As of December 31, 2009 Ounces (000s) Ounces (000s) M&I Resources: 494
Slide 5: Operational Update
THE PRECIOUS METALS COMPANY Operational Update
Slide 6: Kensington Now in Production
Kensington Now in Production • World’s newest pure gold mine • Early start-up in June; Commercial production July 3rd; smooth ramp-up • Approximately 50,000 ounces of gold production expected this year • 125,000 ounces of estimated annual gold production at average cash operating cost of $490/oz. •
Slide 7: Palmarejo – Implementing Results of Optimization Program
Palmarejo – Implementing Results of Optimization Program • Significant test work completed during 1H • Second quarter milestones: • Merrill Crowe refining plant commissioned • Transition from underground development ore to higher-grade underground production stopes • Improved ore sorting and blendin
Slide 8: San Bartolomé Delivering Consistent Results
San Bartolomé Delivering Consistent Results • Significant improvements due to process handling enhancements and mining of higher-grade ore • 79% production increase compared to 1Q • 22% decrease in 2Q cash operating costs • July silver production of just over 679,000 ounces, highest since September
Slide 9: Increased Production & Reduced Costs
Increased Production & Reduced Costs San Bartolomé 2010 Silver Production 2010 Cash Operating Costs/Oz 700,000 $12 600,000 $9 500,000 $6 400,000 $3 300,000 200,000 $0 Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul 9
Slide 10: Rochester – Progress on '11 Restart of Active Mining
Rochester – Progress on ‘11 Restart of Active Mining • Set to extend mining through 2020 • Major benefit to Nevada economy • Six additional years of production • Expected to average approximately 2.5 million silver ounces and 30,000 gold ounces annually • 2010 production forecast: • 2.0 million silv
Slide 11: Finance Update
THE PRECIOUS METALS COMPANY Finance Update 11
Slide 12: Significant Increases in Production and Prices
Significant Increases in Production and Prices Silver Production Average Realized Silver Prices 5.0 $20.00 4.0 $18.56 4.2 $15.00 3.9 7% 35% (M oz) ($ / oz) 3.0 $13.71 $10.00 2.0 1.0 $5.00 0.0 $0.00 Q2 '09 Q2 '10 Q2 '09 Q2 '10 Gold Production Average Realized Gold Prices 25,000 $1,400 20,000 23,124 $
Slide 13: Significant Growth in Operating Income
Significant Growth in Operating Income Second Quarter Operating Income (Loss) First Half Operating Income (Loss) ($ millions) ($ millions) $1.9 $1.0 ($8.8) ($8.5) Q2 '09 Q2 '10 H1 '09 H1 '10 13
Slide 14: Significant Growth and Record Financial Performance
Significant Growth and Record Financial Performance Sales of Metal Gross Profit Operating Cash Flow ($ millions) ($ millions) ($ millions) $120 $45 $35 $40 $42.4 $30 $32.5 $100 $101.0 $35 49% $25 $80 $30 116% 123% $25 $20 $60 $67.9 $20 $15 $40 $15 $19.0 $15.0 $10 $10 $20 $5 $5 $0 $0 $0 Q2 '09 Q2 '10
Slide 15: Precious Metals Revenue Mix
Precious Metals Revenue Mix Quarterly Silver / Gold Revenue Trend ($ millions) $120 $100 27% 27% $80 24% 14% 32% $60 $40 73% 73% 86% 76% 68% $20 $0 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Note: Excludes smelting and refining charges 15
Slide 16: Exploration Update
THE PRECIOUS METALS COMPANY Exploration Update 16
Slide 17: Exploration Highlights
Exploration Highlights • Over 27,200 meters of core drilled during second quarter • Expand mineral resources and reserves • Test new targets on all projects • Majority devoted to Palmarejo with favorable results from the five main clavos at Palmarejo and Guadalupe Norte • Especially from 108 Clavo,
Slide 18: Exploration Palmarejo
Exploration Palmarejo • Second quarter drilling on the five clavos (Rosario, 76, 108, N 200 m Tucson, Chapotillo) on the La Prieta and La Blanca structure Tucson • Positive results from all clavos: • 18.5 meters true width @ 3.51 g/t Rosario Chapotillo Au and 249 g/t Ag in hole RN-008 (Rosario N) •
Slide 19: Exploration Palmarejo
Exploration Palmarejo • 108 clavo drilling has returned high-grade gold and silver intercepts • Zone still open at depth and to NNW and SSE; Further drilling underway See appendix for assay results received for Q2 2010 drilling 19
Slide 20: Exploration Guadalupe
Exploration Guadalupe • Favorable results extend the limits of Guadalupe Norte at depth and on strike; zone remains open in both directions • Northernmost hole (353) with 5.5 m (true width) @ 3.21 g/t gold and 127 g/t silver; deepest hole (351) with 6.1 m (true width) @ 5.67 g/t gold and 157 g/t sil
Slide 21: Exploration Kensington
Exploration Kensington Second quarter drilling continued on tightly-spaced definition for mine planning and commenced on exploration • +9,900 feet of drilling completed Plan View 850-foot level (Green are 2010 core holes) on Horrible Vein Well, located near major drift and 2,000 feet west of Kensing
Slide 22: Exploration Joaquin
Exploration Joaquin • Fourth drilling phase completed • 4,433 meters in 26 holes • Focused on La Negra Zone • Results confirm multiple trends parallel to main body – up to 7 closely-spaced trends • Detailed surface mapping, sampling, and ground magnetic survey highlight new targets • Cañadon Sur and
Slide 23: Exploration Joaquin
Exploration Joaquin • Main body and seven sub-parallel mineral trends discovered • Main body now 1,000 meters long (NW) with up to 170 meters depth • Open depth • Hydrothermal breccias, veins, veinlets and stringer zones; oxide and sulfide silver and gold • Sub-parallel trends to Main body; largest
Slide 24: Conclusion
COEUR THE PRECIOUS METALS COMPANY Conclusion 24
Slide 25: Positive Silver and Gold Trend
Positive Silver and Gold Trend Annual Average Silver and Gold Prices $20.00 $1,400 $18.00 iShares $1,200 $16.00 Silver ETF launched $14.00 $1,000 Gold Spot Price Silver Spot Price SPDR Gold $12.00 ETF $800 launched $10.00 $600 $8.00 $6.00 $400 $4.00 $200 $2.00 $0.00 $- '00 '01 '02 '03 '04 '05 '06 '0
Slide 26: Robust Precious Metals Markets
Robust Precious Metals Markets • Analysts and traders expressing rising price expectations • Continued hedge against EU risks/dollar • 2011 U.S. deficit projections raised to $1.4 trillion • Gold and silver ETF levels remain strong • China and India buying vibrant; action by People’s Bank of China e
Slide 27: Catalysts During Remainder of 2010
Catalysts During Remainder of 2010 • Production and cash flow contribution from Kensington • Silver recovery increases at Palmarejo • Continued operational consistency at San Bartolomé • Positive exploration results at Palmarejo, Kensington, Joaquin • Progress toward expansion at Rochester, leading
Slide 28: Appendix: Q2 2010 Drill Results
Appendix Q2 2010 Drill results 28
Slide 29: Joaquin Project 2010 Drilling Results
JOAQUIN PROJECT, SANTA CRUZ, ARGENTINA 2010 Drilling Results to June 30, 2010 Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag La Morena (drilled in late 2009) DDJ-63 169.0 175.0 6.0 5.0 0.70 10 202.0 206.0 4.0 4.2 0.75 23 La Negra DDJ-64 59.1 78.6 19.5 15.0 0.05 153 In
Slide 30: Joaquin Project Drilling Results (continued)
JOAQUIN PROJECT - 2010 Drilling Results to June 30, 2010 (continued) Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag DDJ-71 77.0 81.5 4.5 3.6 0.08 30 123.0 135.0 12.0 9.6 0.07 28 Including 127.5 130.5 3.0 2.4 0.21 56 DDJ-72 No significant values DDJ-73 115.0 119.5 4.5
Slide 31: Palmarejo Mine 2010 Drilling Results
PALMAREJO MINE, CHIHUAHUA, MEXICO - 2010 Drilling Results Second Quarter to June 30, 2010 Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag Chapotillo DC3-CH-133 22.00 26.00 4.00 1.50 0.76 24 Rosario Norte DC3-RN-0003 60.00 63.00 3.00 1.80 0.28 31 DC3-RN-0008 199.00 224.
Slide 32: Palmarejo Mine Drilling Results (continued)
PALMAREJO MINE - 2010 Drilling Results Second Quarter to June 30, 2010 (continued) Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag 108 DC3-108C-0007 239.2 245.3 6.10 3.00 0.23 15 DC3-108C-0008 133.4 154.4 21.00 18.3 3.62 177 Including 134.9 154.4 19.5 16.8 3.89 186 DC3
Slide 33: Palmarejo Mine Drilling Results (continued)
PALMAREJO MINE - 2010 Drilling Results Second Quarter to June 30, 2010 (continued) Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag DC3-108C-0036 131.20 156.10 24.90 20.88 3.10 156 DC3-108C-0044 172.00 177.80 5.80 4.44 2.82 190 76 DC3-76C-0018 224.30 240.00 15.70 7.36 0
Slide 34: Guadalupe Project 2010 Drilling Results
GUADALUPE PROJECT, PALMAREJO DISTRICT, CHIHUAHUA, MEXICO 2010 Drilling Results Second Quarter to June 30, 2010 Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag TGDH 336 285.8 291.8 6.0 5.1 1.28 121 TGDH 337 290.9 295.8 4.9 4.7 1.02 96 TGDH 338 324.0 324.5 0.5 0.5 8.04 3
Slide 35: Guadalupe Project Drilling Results (continued)
GUADALUPE PROJECT - 2010 Drilling Results Second Quarter to June 30, 2010 (continued) Mineralized Interval (meters) Assays (g/t) Hole I.D. From To Length True Au Ag TGDH 348 306.6 308.2 1.6 1.3 0.92 142 321.0 322.1 1.1 0.9 2.41 288 337.0 343.9 6.9 5.8 1.80 141 351.0 361.1 10.1 8.5 3.24 100 376.0 378
Slide 36: Kensington Mine 2010 Drilling Results
KENSINGTON MINE, ALASKA, USA 2010 Drilling Results to June 30, 2010 Mineralized Interval (feet) Assays (oz/t) Hole I.D. From To Length True Au H10-001 242.0 246.0 4.0 1.6 0.056 500.0 504.0 4.0 1.6 0.075 H10-002 402.6 410.7 8.1 4.2 0.064 439.0 478.0 39.0 20.1 0.119 Includes 439.0 454.0 15.0 7.7 0.186