Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Corporate Update (September 2023)
51 slides from Coeur Mining's corporate update, Sep 21, 2023
Slide 1: Rochester Site Tour
Rochester Site Tour September 21, 2023 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 involving strategic priorities and company strategies, expectations regarding environmental, social and governance (“ESG”) in
Slide 3: Cautionary Statements (cont.)
Cautionary Statements (cont.) Cautionary Statements Regarding Company Outlook In connection with Coeur’s regular planning process, Coeur’s management prepared certain unaudited financial and operating projections, some portions of which are included in this presentation. These projections were not p
Slide 4: Agenda & Management Participants
Agenda & Management Participants Agenda Management Participants Corporate Team Time Event Michael “Mick” Routledge 7:00 a.m. 9:30 a.m. • Drive: Reno to Rochester Senior Vice President and Chief Operating Officer Thomas Whelan • Site orientation Senior Vice President and Chief Financial Officer 9:30
Slide 5: Company Overview
Company Overview Headquartered in Chicago, IL, Coeur Mining is a growing, multi-asset precious metals producer with a focus on generating sustainable, high-quality cash flow from its North American asset base U.S. organic growth offers unique near-term catalyst Company Snapshot Listing: NYSE: CDE Sh
Slide 6: Coeur Mining Investment Case
Coeur Mining Investment Case • Expected ’23-25 silver production growth driven by Rochester 45% (NV) 35% / 79% • Five-year AuEq.1 reserve and resource growth • Approximate investment in exploration and expansions ~$1B (‘17–23) ~2/3 rds • Portion of revenue derived from three U.S. operations 3
Slide 7: Rochester Summary Highlights
Rochester Summary Highlights Rochester is transitioning into Coeur’s long-lived, transformational cornerstone asset; positioned to generate significant free cash flow for Company following expansion completion and ramp-up • One of the world’s largest open pit heap leach operations post-POA 11 compl
Slide 8: Overview of Rochester
Overview of Rochester The Rochester mine and associated heap leach facilities is an open-pit silver and gold operation located in Pershing County, Nevada approximately 26 miles northeast of the city of Lovelock Regional Map & Claims Boundary Facts & Figures Ownership • Coeur Mining, Inc.1 / 100% Min
Slide 9: Rochester Background and History
Rochester Background and History 1909 • First shipments of silver ore from Nenzel Hill (location of the Rochester pit) 1983 • Coeur acquires Rochester property from ASARCO (subsidiary of Grupo Mexico S.A. de C.V.) 1986 • Coeur begins open-pit mining of the current Rochester pit 1999 • Coeur becomes
Slide 10: World Class Silver Asset – By the Numbers
World Class Silver Asset – By the Numbers #1 • Largest open pit heap leach operation in North America1 #3 • Third-largest open pit heap leach operation in the world 1 #1 • Largest silver reserve asset in the U.S. 2 #3 • Third-largest silver reserve asset in North America 2 #4 • Fourth-largest
Slide 11: Rochester Workforce & Commitment to Nevada
Rochester Workforce & Commitment to Nevada As the largest primary silver mine in Nevada, Coeur strives to be the employer of choice and remains committed to working with its communities to develop a robust pipeline of future leaders Overview Fraser Institute: Investment Attractiveness2 • 366 employe
Slide 12: Rochester Environmental, Social & Governance Profile
Rochester Environmental, Social & Governance Profile Coeur is committed to its purpose statement, We Pursue a Higher Standard, and strives to protect its people, places and planet by operating responsibly People • Nevada Mining Association recognized five Rochester employees for their extraordinary
Slide 13: Strong Commitment to Safety at Rochester
Strong Commitment to Safety at Rochester Rochester has showcased success in health and safety for decades, with safety performance on key metrics better than other mining industry peers Overview of Coeur’s Safety Culture Lost-Time Injury Frequency Rate Foster and enhance strong safety culture and
Slide 14: Expansion Update: Transitioning to Ramp Up
Expansion Update: Transitioning to Ramp Up The Rochester expansion was approximately 99% complete at the end of August 2023 with construction scheduled to be substantially wrapped up in 3Q 2023. First production from new Stage VI leach pad and Merrill-Crowe process plant began mid-September Estimate
Slide 15: Mine Stress Testing
Mine Stress Testing A series of tests have been completed to ensure adequate preparation for step- up of mine production to support increased crusher throughput following the completion of POA 11 Planned Step-Ups 2023 2024 Avg. Mined Tons ~81,000 ~97,000 Crushed and Placed Tons ~35,000 ~83,000 Stres
Slide 16: Aerial View of Expansion
Aerial View of Expansion As shown below, tremendous progress has been made on the Rochester expansion since construction began in August 2020 with the Stage VI Leach Pad and Merrill Crowe now moving into operation 300M Ton Stage VI Leach Pad Merrill Crowe Plant Contingency Ponds Electrical Substatio
Slide 17: New Crushing Corridor Near Completion
New Crushing Corridor Near Completion Highlighted below is the new crusher corridor, including the integration of pre- screens, which is substantially complete and commencing pre-commissioning activities Primary Crusher Primary Stockpile Reclaim Secondary Crusher Secondary Stockpile Reclaim Pre-scre
Slide 18: Transformational Evolution at Rochester
Transformational Evolution at Rochester Rochester has made a tremendous transformation over the past four years with the imminent completion of the POA 11 expansion project September 2019 POA 11 Project Area September 2023 POA 11 Project Area Note: For additional information on the expansion of Roch
Slide 19: Post-Expansion Mining Operations
Post-Expansion Mining Operations Once completed and ramped up, Rochester is expected to become one of the largest open-pit heap leach mines in the world with lower-cost production at more than twice its recent rates Expected Mining Ramp-up 2022 2023 2024 Mining Capacity (kton/day) ~65 ~120 ~155 Haul
Slide 20: New Three-Stage Crushing Circuit
New Three-Stage Crushing Circuit As part of the expansion, Rochester will use a three-stage crushing circuit that incorporates HPGR technology and pre-screens designed to help accelerate the rate of silver recoveries and lower unit costs at a higher throughput rate 1 2 3 Gyratory Crusher MP1000 Crus
Slide 21: Overview of Leach Pads & Process Plant
Overview of Leach Pads & Process Plant Material is placed on leach pads, and cyanide is used to leach metal from mineralized ore. After leaching, silver and gold are extracted from the solution using the Merrill-Crowe zinc precipitation method and sold as doré bars from the refinery Leach Pads Proce
Slide 22: Expected Rochester Operational Performance
Expected Rochester Operational Performance Operating results have been relatively consistent over the past few years; once ramped-up, production levels are expected to be ~2.5x higher with substantially lower costs and materially stronger free cash flow Tons Placed Average Grade (M) (oz/t) ~31.5 - 3
Slide 23: Rochester Cost Pressures
Rochester Cost Pressures Coeur has continued to experience inflationary pressures – particularly compared to 24 months ago – with some recent easing in diesel prices Diesel Cost Per Gallon Materials, Parts and Supplies Cost +15% +57% $9.4 $4.55 $4.07 $4.00 $8.2 $8.0 $7.4 $3.17 $6.0 $2.79 $5.0 $2.42
Slide 24: Business Improvement and Operational Readiness
Business Improvement and Operational Readiness The Company utilized its comprehensive business improvement framework to develop an operational readiness plan to efficiently start and ramp-up the new facilities at Rochester Personnel Logistics– Bussing, Restroom Punch List IT Comms Facilities, Manage
Slide 25: Business Improvement Framework
Business Improvement Framework Once ramped-up and the new operating baseline is established, Coeur will continue to use its Business Improvement program to drive further value-add initiatives 1 2 3 4 Value Concept Business case Planning and documented and developed and Results Generation explored at
Slide 26: Untapped Exploration Potential at Rochester
Untapped Exploration Potential at Rochester The key focus at Rochester in 2023 is to enhance the geologic model at East Rochester (an area of large pit pushback in the future) and use it for exploration ranking and targeting across the district • The largest reserves of any primary silver mine in t
Slide 27: Priority Target Focus
Priority Target Focus East Rochester Rochester Corridor Geology • A new geologic model was completed by re-logging Gold Mountain drillholes and structural pit mapping which delivered a Open Pit Plainview better understanding of the controls to mineralization at Workings deposit and district scales M
Slide 28: District Scale Upside Opportunities
District Scale Upside Opportunities Rochester District Rochester Corridor Exploration Model Summary Geology Map • Silver and gold mineralization is controlled by: Gold Mountain – Weaver / Rochester contact Plainview – High-angle faults (oxide) – Silica alteration and veining • Field mapping shows hi
Slide 29: Five-Year Exploration Plan
Five-Year Exploration Plan Near-term plan (2023 – 2024) . Rochester Pit • Drill test extra potential on oxide structures to the east and south at Each Rochester • Complete new geologic models for Nevada Packard and Lincoln Hill • First pass drilling of two-mile corridor between East Rochester and Ne
Slide 30: Rochester 2022 Year-End Reserve and Resource Summary
Rochester 2022 Year-End Reserve and Resource Summary The Company has invested roughly $25 million in exploration over the past five years, contributing to a ~55% increase in gold and ~53% in silver proven and probable reserves with significant upside potential from the 13-year mine life asset Grade
Slide 31: Appendix
Appendix NYSE: CDE 31 JC 2016
Slide 32: 2023 Guidance
2023 Guidance1 Production Outlook Previous2 Updated Gold (oz) Silver (K oz) Gold (oz) Silver (K oz) Palmarejo 100,000 – 112,500 6,500 – 7,500 100,000 – 112,500 6,500 – 7,500 Rochester 35,000 – 50,000 3,500 – 4,500 35,000 – 50,000 3,500 – 4,500 Kensington 100,000 – 112,500 - 84,000 – 95,000 - Wharf 8
Slide 33: Reserves and Resources
Reserves and Resources 2022 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 4,081,000 0.059 4.21 241,000 17,172,000 Rochester Nevada, USA 425,748,000 0.003 0.39 1,079,000 166,172,000 Kensington
Slide 34: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2022 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 4,030,000 0.066 4.39 267,000 17,689,000 Ro
Slide 35: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2022 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) INFERRED RESOURCES Palmarejo Mexico 5,633,000 0.067 3.19 380,000 17,948,000 Rochester Nevada, USA 77,001,000 0.00
Slide 36: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2022 Mineral Reserves: (1) The Mineral Reserve estimates are current as of December 31, 2022 and are reported using the definitions in Item 1300 of Regulation S–K (17 CFR Part 229) (SK1300) and were prepared by the company’s technical staff. (2) Assumed metal
Slide 37: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2022 Mineral Resources: (1) Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2022, and are reported using definitions in SK1300 on a 100% ownership basis. Mineral Resource estimates were prepared by the Comp
Slide 38: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2022 Mineral Resources (cont.): (9) Open Pit Mineral Resource estimates are reported using an equivalent gold cutoff of 0.20 ounces per ton assuming a silver to gold ratio of 60:1. Resources are reported in-situ and contained withed a conceptual measured, indi
Slide 39: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) PROVEN RESERVES Palmarejo Mexico 3,754,000 0.066 4.39 247,000 16,480,000 Rochester Nevada, USA 386,008,
Slide 40: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 3,696,000 0.053 3.89 195,000 14,373,000 Ro
Slide 41: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) INFERRED RESOURCES Palmarejo Mexico 4,713,000 0.052 3.70 246,000 17,453,000 Rochester Nevada, USA 128,410,000 0.0
Slide 42: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Reserves: (1) The Mineral Reserve estimates are current as of December 31, 2021 and are reported using the definitions in Item 1300 of Regulation S–K (17 CFR Part 229) (SK1300) and were prepared by the company’s technical staff. (2) Assumed metal
Slide 43: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Resources: (1) Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2021, and are reported using definitions in SK1300 on a 100% ownership basis. Mineral Resource estimates were prepared by the Comp
Slide 44: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Resources (cont.): (9) Wilco Open Pit Mineral Resource estimates are reported using an equivalent gold cutoff of 0.20 ounces per ton assuming a silver to gold ratio of 60:1. Resources are reported in-situ and contained withed a conceptual measured
Slide 45: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 1,571,000 0.073 3.81 115,000 5,978,000 Rochester Nevada, USA 195,724,000 0.003 0.45 598,000 87,518,000 Kensing
Slide 46: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 629,000 0.051 3.07 32,000 1,928,000 Roches
Slide 47: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) INFERRED RESOURCES Palmarejo Mexico 7,336,000 0.050 4.23 369,000 31,061,000 Rochester Nevada, USA 131,570,000 0.0
Slide 48: 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 49: Board of Directors
Board of Directors Robert E. Mellor – Independent Chairman of the board of Monro, Inc. (auto service provider) since June 2017, and appointed Interim Chief Executive Officer from August 2020 to April 2021. Previously Mr. Mellor was lead independent director from April 2011 to June 2017 and a member
Slide 50: Board of Directors (cont.)
Board of Directors (cont.) Jeane L. Hull – Ms. Hull has over 35 years of mining operational leadership and engineering experience, most notably holding the positions of Chief Operating Officer for Rio Tinto plc at the Kennecott Utah Copper Mine and Executive Vice President and Chief Technical Office
Slide 51: Contact Information
Contact Information Corporate Office Coeur Mining, Inc. 200 S. Wacker Dr., Suite 2100 Chicago, IL 60606 Main Telephone +1 (312) 489-5800 Stock Ticker NYSE: CDE Website www.coeur.com Contact Jeff Wilhoit Director, Investor Relations investors@coeur.com NYSE: CDE 51 JC 2016