Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q3 2015 Earnings Presentation
34 slides from Coeur Mining's earnings presentation, Nov 3, 2015
Slide 1: Third Quarter 2015 Financial Results
Third Quarter 2015 Financial Results Conference Call and Webcast November 3, 2015
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 the anticipated closing of the exchange transaction, anticipated production, costs, crushing and mining rates, mine
Slide 3: Third Quarter and Recent Highlights
Third Quarter and Recent Highlights Substantial cost reductions yet again; Adj. CAS and Adj. AISC per AgEq oz1 of $12.07 and $15.17, respectively, down 15% and 17%, respectively, Y‐o‐Y Raising full‐year production guidance; Expect to produce 33.7 – 36.4M AgEq oz in 20152 (up from 33.1 – 35.9M Ag
Slide 4: Third Quarter 2015 Highlights
Third Quarter 2015 Highlights Operating Cash Flow Nearly Unchanged Despite Lower Metal Prices Quarter YOY in millions US$ 3Q 2015 2Q 2015 3Q 2014 Variance Variance Revenue $162.6 $166.3 (2%) $170.9 (5%) Costs applicable to sales 120.2 119.1 1% 125.9 (5%) Exploration expense 2.1 3.6 (41%) 6.6 (68%) G
Slide 5: Third Quarter 2015 Highlights (continued)
Third Quarter 2015 Highlights (continued) Adjusted CAS and AISC per silver equivalent ounce1 declined for third consecutive quarter Quarter YOY 3Q 2015 2Q 2015 3Q 2014 Variance Variance Average realized silver price per ounce $14.66 $16.23 (10%) $19.46 (25%) Average realized gold price per ounce $1,
Slide 6: 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 7: Palmarejo LOM Plan in November Technical Report Reflects Three-Fold Increase in Projected NPV
Palmarejo LOM Plan in November Technical Report Reflects Three‐Fold Increase in Projected NPV Reflects progressive silver and gold prices of $15.50 and $1,150, respectively, in first two years and $17.50 and $1,250, respectively, thereafter Independencia to make up approximately one third of the
Slide 8: Palmarejo November Technical Report Reflects Higher-Grade Mine Plan over Seven Year Mine Life
Palmarejo November Technical Report Reflects Higher‐Grade Mine Plan over Seven Year Mine Life Includes over 2.5 million additional tons and results in projected pre‐tax net cash flow increase of ~$230M compared to February technical report 64% higher silver grade expected in 2018‐2022 once Indep
Slide 9: Quality vs. Quantity: 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 10: Proactive Reducing Debt While Maintaining Liquidity
Proactive Reducing Debt While Maintaining Liquidity Transaction Details Net debt / LTM Adj. EBITDA1 Agreed to exchange an estimated 14.4M shares 4.2X of common stock for ~$54 million of our 7.875% 4.0X senior notes due 2021 3.8X Notes eliminated at 24% discount to par 3.2X Expected to reduce t
Slide 11: Palmarejo: Higher-Grade, Higher-Margin Ounces Driving Lower Costs
Palmarejo: Higher‐Grade, Higher‐Margin Ounces Driving Lower Costs; Transition Well‐Underway $15.70 $14.43 $14.56 $13.21 $22.9 $11.40 $20.2 $ in millions 1.5 1.4 1.4 1.4 1.2 22,514 22,974 $10.9 $9.7 $10.7 $10.5 18,127 $9.2 ounces 15,237 15,495 $5.9 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 ($0.2) ($3.2) 3Q'14 4Q
Slide 12: Rochester: Lower Mining and Leaching Costs Sustain Low CAS per AgEq oz
Rochester: Lower Mining and Leaching Costs Sustain Low CAS per AgEq oz1 $12.95 $14.78 $12.01 $13.82 $12.01 $16.4 1.3 1.2 1.2 1.1 1.1 $ in millions 15,764 16,411 $10.2 ounces 13,721 $8.8 11,702 $8.2 10,892 $5.9 $6.5 $5.3 $4.2 $3.3 $2.7 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Adj C
Slide 13: Kensington: Development of Decline into High-Grade Jualin Deposit Underway
Kensington: Development of Decline into High‐Grade Jualin Deposit Underway $889 $797 $842 $17.0 $792 $745 33,533 33,909 $12.3 $12.0 30,773 29,845 28,799 $ in millions $8.9 ounces $5.5 $4.1 $4.7 $3.6 $3.9 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 ($3.7) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Adj. CAS per gold oz1 Gold pr
Slide 14: Wharf: Increased Production and Grade from Golden Reward Drives Lower Costs
Wharf: Increased Production and Grade from Golden Reward Drives Lower Costs $970 $716 23,427 $12.9 $ in millions 16,794 $8.2 ounces 6,609 $1.2 $0.7 $0.1 1Q'151 2Q'15 3Q'15 ($7.2) 1Q'151 2Q'15 3Q'15 Adj. CAS per AuEq oz 2 Gold Equivalent Production Cash flow from operating activities Capital expendit
Slide 15: San Bartolomé: Addition of Higher-Grade, Lower-Cost Ore Purchased from Local Sources
San Bartolomé: Addition of Higher‐Grade, Lower‐Cost Ore Purchased from Local Sources $13.67 $14.38 $14.47 $14.41 $13.26 $12.3 $ in millions 1.5 1.5 1.5 1.2 1.2 ounces $5.7 $5.0 $5.4 $2.8 $2.3 $2.0 $1.8 $0.9 $1.0 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 1 Adj CAS per Ag oz Silver p
Slide 16: 2015 Guidance Improved
2015 Guidance Improved Silver Production Guidance1 Gold Production Guidance1 Ounces in thousands 5,950 120,000 5,400 112,500 4,850 4,850 4,850 4,100 Ounces 76,000 76,000 67,500 60,000 60,000 60,000 500 550 Palmarejo San Bartolomé Rochester Endeavor Kensington Palmarejo Rochester Wharf Initial 2015 G
Slide 17: Anticipated Milestones and Upcoming News Flow
Anticipated Milestones and Upcoming News Flow 4Q 2015 1Q 2016 1Q / 2Q 2016 2Q 2016 Underground Begin drilling Receive permits Accelerate production development reaches Jualin from for next rate at Independencia Independencia underground expansion at Rochester 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2015
Slide 18: Appendix
Appendix
Slide 19: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Net Income (Loss) in thousands 3Q 2015 2Q 2015 1Q 2015 4Q 2014 3Q 2014 Net income (loss) ($14,219) ($16,677) ($33,287) ($1,079,038) $3,466 Fair value adjustments, net (3,384) (2,618) 4,339 (5,622) (13,026) Stock‐based compensation 1,541 2,529
Slide 20: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands 3Q 2015 2Q 2015 1Q 2015 4Q 2014 3Q 2014 Net income (loss) ($14,219) ($16,677) ($33,287) ($1,079,038) $3,466 Interest expense, net of capitalized interest 12,446 10,734 10,765 10,566 11,615 Other, net 8,893 2,852 2,511 (1,7
Slide 21: 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 LTM 12/31/14 LTM 9/30/14 Net income (loss) ($1,143,221) ($1,125,536) ($1,151,980) ($1,155,884) ($658,374) Interest expense, net of capitalized interest 44,511 43,680 45,257 47,546 47
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 4Q 2014 3Q 2014 Costs applicable to sales, including amortization (U.S. GAAP) $155,929 $164,125 $146,742 $163,679 $166,675 Amortization 35,692 45,028 31,680 37,227 40,
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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: Bridget Freas Director, Investor Relations bfreas@coeur.com NYSE: CDE 34