Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Coeur d'Alene Mines — Denver Gold Forum 2007
42 slides from Coeur Mining's conference presentation, Sep 24, 2007
Slide 1: Denver Gold Forum
Denver Gold Forum Dennis E. Wheeler Coeur d’Alene Mines Corporation Chairman, President and Chief Executive Officer September 24, 2007 NYSE: CDE TSX: CDM www.coeur.com
Slide 2: Building the Undisputed Leader in Silver
Building the Undisputed Leader in Silver Three new mines set to accelerate growth San Bartolomé – 9 million ounces of annualized silver production commencing in 2008 Palmarejo – An average of 10 million ounces of silver production and 115,000 ounces of gold production annually commencing in 2009
Slide 3: Building the Undisputed Leader in Silver (continued)
Building the Undisputed Leader in Silver (continued) Increasing cash flow per share Sufficient capital in place to deliver growth Strengthened management team to execute strategic growth Highest worker safety standards and environmental stewardship Capitalizing on a strong silver market with very po
Slide 4: Strategically Positioned Portfolio
Strategically Positioned Portfolio Kensington Project, Alaska Palmarejo Project, Mexico Reserves: 1.4 Moz Gold Reserves: TBA M&I Resources: 0.6 Moz Gold M&I Resources: 88.7 Moz Silver 1.0 Moz Gold Est. Production:1 150 koz Gold Est. Production:1 11.2 Moz Silver 117 koz Gold Rochester Min
Slide 5: New Projects Driving Production Growth
New Projects Driving Production Growth Silver Production Profile 2007-20091 30 25 Palmarejo 20 San Bartolome Rochester 15 Martha Cerro Bayo oz (millions) 10 Endeavour Broken Hill 5 2007 2008 2009 Gold Production (koz) 121 78 199 1 Source: Management estimates and Palmarejo technical reports 5
Slide 6: Creating Largest Primary Silver Producer
Creating Largest Primary Silver Producer Silver Production (20091) 30 28.9 24.7 25 22.1 20 15 10 6.2 5 2009 Silver Production (M oz) 1 0 New Coeur Pan American Silver Wheaton 2 Hecla Gold Production (koz) 199 0 0 124 Note: 1 Analyst estimates, does not include base metals. New Coeur production based
Slide 7: Generating Industry Leading Growth
Generating Industry Leading Growth Silver Production Growth (2007-20091,2,3) 60% 55.4% 50% 40% 30.4% 30% 23.3% 20% (2007E-2009E) 1,2,3 10% 1.7% Primary Silver Production Growth 0% New Coeur Silver Wheaton Pan American Hecla Note: 1 Analyst estimates, does not include base metals. ² Represents compou
Slide 8: Delivering Low-Cost Silver Production
Delivering Low-Cost Silver Production Cash Costs (2009E) 6.0 5.02 5.0 3.98 4.0 3.52 3.0 2.66 US$/oz 2.0 1.73 1.0 0.0 New Coeur 1 Pan American 2 Old Coeur 2 Silver Wheaton 2 Hecla2 Silver Sources: 1 Coeur management estimates, based on Palmarejo mineral resource estimates and all the metallurgical an
Slide 9: Leading Silver Resource Base
Leading Silver Resource Base Silver Mineral Reserves and Mineral Resources 500 404.7 400 310.5 300 200 (M oz)1 109.4 100 0 New Coeur Pan American Hecla Inferred Silver Mineral Resources (M oz) Inferred Resources 111.3 251.2 59.9 Gold Mineral Resources (koz) Inferred 1,141 197.8 228.1 Measured & Indi
Slide 10: Sufficient Funds to Execute Growth Plan
Sufficient Funds to Execute Growth Plan Cash flow profile¹ 450 Capital Expenditure 400 Operating Cashflow 350 $341 Cash 2 300 250 200 $186 $166 $ millions 150 100 $72 50 - 12/31/06 12/31/07 12/31/08 12/31/09 1 Management estimates, based on anticipated startup at San Bartolome in February 2008, at P
Slide 11: Expected to Maintain Market Leading Liquidity
Expected to Maintain Market Leading Liquidity Liquidity – Trading volume Liquidity – Days to turn float 45 60 40 55 35 30 50 25 45 20 Days (one turn of float) 40 15 Average Daily Trading Vol (US$m) 10 35 New Coeur Pan Silver Hecla New Coeur Silver Pan Hecla American Wheaton Wheaton American Silver S
Slide 12: Dynamic Growth Pipeline
Dynamic Growth Pipeline
Slide 13: San Bartolomé Silver Mine
San Bartolomé Silver Mine Largest pure silver mine in the world ¾ Production on schedule for February 2008 startup ¾ Initial annual production of 9 million silver ounces ¾ Estimated mine life of 14 years ¾ Estimated cash costs of $4.00 per ounce ¾ Estimated capex of $130 million in 2007 Safety l
Slide 14: Palmarejo Project Overview
Palmarejo Project Overview Located in Mexico’s premier silver district in Chihuahua and the Sierra Madre belt Land holdings cover more than 12,100 hectares Tremendous exploration potential ¾ Substantial findings to date ¾ Significant potential for future discoveries Current M&I resource ¾ 88
Slide 15: Palmarejo Preliminary Assessment
Palmarejo Preliminary Assessment Mine Life1 9 years Mine Throughput (tonnes per day)1 2,000 tonnes underground 2400 tonnes open pit Initial Capital Costs $203 million Life of Mine Capital Costs $253 million Estimated Average Annual Production1: ¾ Open Pit 5.1 million recovered
Slide 16: Kensington Gold Mine
Kensington Gold Mine Estimated annual production of 150,000 gold ounces in initial years Estimated cash costs of $310 per gold ounce in early years 10-15 year mine life Estimated capital expenditure of $238 million; >90% complete All construction activities all complete except for tailings
Slide 17: Solid Track Record of Exploration Success
Solid Track Record of Exploration Success Outstanding exploration success in past year: ¾ 51% increased in silver mineral reserve ounces at Cerro Bayo ¾ 25% increase in silver mineral reserve ounces at Martha ¾ 29% increase in gold mineral reserve ounces at Kensington ¾ 30 million new contained ou
Slide 18: Palmarejo Offers Significant Additional Exploration Upside
Palmarejo Offers Significant Additional Exploration Upside $40m spent to date Only ~30% of Palmarejo tenements have been explored Palmarejo Trend Long NW-SE structure Dips SW Multiple ores shoots (clavos) Guadalupe Trend Long NW-SE structure Dips NE Multiple clavos La Patria Trend Higher Au:Ag N
Slide 19: Palmarejo Generating Consistent Resource Growth
Palmarejo Generating Consistent Resource Growth Exploration activities continue to deliver consistent increases to the overall mineral resource base 50% compound annual growth rate in resources since 2004 Historical Silver Resources 160 Inferred 140 Measured & Indicated 120 61.4 41.5 100 66.5 80
Slide 20: Palmarejo Acquisition Update
Palmarejo Acquisition Update
Slide 21: Compelling Benefits
Compelling Benefits Transaction positions the New Coeur as the undisputed leader in silver Coeur gains an important strategic position in Mexico – the world’s leading primary silver mining jurisdiction Silver production growth of 142% and gold production growth of 65% between 2007 and 20091
Slide 22: Building The Undisputed Leader In Silver
Building The Undisputed Leader In Silver Three new world-leading mines to accelerate growth Annual production of nearly 30 million silver ounces by 2009 ¾ Industry-leading silver ounces in 2009 Industry-leading low costs Substantial cash flow improvement ¾ Increasing cash flow by ~30% per sh
Slide 23: Appendix A
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Slide 24: Cerro Bayo Underground & Open Pit Mine
Cerro Bayo Underground & Open Pit Mine 2006 production ¾ 2.3 million silver ounces (18% of company total) ¾ 41,000 gold ounces (35% of company total) 2006 cash costs ¾ US$3.04 per silver ounce (net credits) Commenced production in June 2002 (3 yrs mineral reserves) ¾ Maintained consistent mine
Slide 25: Martha Underground Mine
Martha Underground Mine 2006 production ¾ 2.7 million silver ounces (21% of company total) ¾ 3,000 gold ounces (3% of company total) 2006 cash costs ¾ US$4.88 per silver ounce (net credits) Acquired in April 2002 for $2.5 million with mineral resources of 2.5 million silver ounces ¾ Over 11 mi
Slide 26: Rochester Open Pit Mine
Rochester Open Pit Mine 2006 production ¾ 5.1 million silver ounces (40% of company total) ¾ 71,900 gold ounces (62% of company total) Rochester Mine, 2006 cash costs Nevada ¾ US$2.80 per silver ounce (net credits) World’s largest open pit primary silver mine and eighth largest primary silver
Slide 27: Endeavor Underground Mine
Endeavor Underground Mine 2006 production ¾ 0.482 million silver ounces (4% of company total) Acquired silver reserves and production up to 20 million payable silver ounces for US$39 million in May 2005 Endeavour, ¾ Generated over US$9 million of net cash flow to date Australia Acquired for <1
Slide 28: Broken Hill Underground Mine
Broken Hill Underground Mine 2006 production ¾ 2.2 million silver ounces (17% of company total) Acquired silver reserves and production up to 17.2 million payable silver ounces for US$36 million Broken Hill, in September 2005 Australia ¾ Has generated cash flow > 67% of original investment Acq
Slide 29: Appendix B
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Slide 30: Strong Fundamentals Underpin Silver
Strong Fundamentals Underpin Silver Silver has outperformed gold in the current cycle, driven by favorable fundamentals The silver supply/demand balance in in deficit – for the 15th year running Supply ¾ Above ground stocks sharply reduced to only 400Moz, from over 1 Bn oz a decade ago ¾ Futur
Slide 31: Appendix C
Appendix C
Slide 32: Mineral Reserves; Current
Mineral Reserves; Current Proven Mineral Reserves Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 3,720 0.66 0.007 2,436 26 Cerro Bayo Chile 598.5 8.38 0.139 5,017 83 Martha Argentina 33.6 78.70 0.116 2,646 3.9 San Bartolome Bolivia -
Slide 33: Mineral Resources; Current
Mineral Resources; Current Measured Mineral Resource Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 12,304 0.94 0.007 11,598 88 Cerro Bayo Chile 459 8.87 0.151 4,070 70 Martha Argentina 21.5 52.04 0.068 1,125 2 San Bartolome Bolivia -
Slide 34: Mineral Resources; Current
Mineral Resources; Current Inferred Mineral Resource Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA - - - - - Cerro Bayo Chile 1,145 8.40 0.155 9,606 178 Martha Argentina 73.9 107.72 0.050 3,374 1.5 San Bartolome Bolivia 225 1.78 - 40
Slide 35: Mineral Reserves; Year-end 2005
Mineral Reserves; Year-end 2005 Proven Mineral Reserves Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 10,168 0.86 0.011 8,765 113 Cerro Bayo Chile 439 8.58 0.15 3,764 68 Martha Argentina 25 58.69 0.08 1,488 2 San Bartolome Bolivia -
Slide 36: Mineral Resources; Year-end 2005
Mineral Resources; Year-end 2005 Measured Mineral Resource Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 11,734 1.03 0.01 12,051 117 Cerro Bayo Chile 660 6.42 0.13 4,237 85 Martha Argentina 25 38.46 0.05 975 1 San Bartolome Bolivia -
Slide 37: Mineral Resources; Year-end 2005
Mineral Resources; Year-end 2005 Inferred Mineral Resource Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA - - - - - Cerro Bayo Chile 1,895 8.13 0.11 15,414 212 Martha Argentina 93 49.8 0.06 4,611 5 San Bartolome Bolivia 1,096 3.52 - 3
Slide 38: Resources: Palmarejo
Resources: Palmarejo Resources 1 2 3 Palmarejo Guadalupe La Patria Silver (Oz) Gold (Oz) Silver (Oz) Gold (Oz) Silver (Oz) Gold (Oz) Measured 32,520,000 367,000 0 0 0 0 Indicated 52,390,000 571,000 3,790,000 49,000 0 0 Inferred 22,290,000 203,000 35,120,000 345,000 4,030,000 171,000 Note: 1 Source:
Slide 39: Appendix D
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Slide 40: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States and Canada including statements regarding a possible transaction and anticipated operating results. Such statements are subject to numerous assumptions and unc
Slide 41: Cautionary Statement
Cautionary Statement Donald J. Birak, Coeur's Senior Vice President of Exploration, is the qualified person responsible for the preparation or supervision of the scientific and technical information in this document. For a description of the key assumptions, parameters and methods used to estimate m
Slide 42: Additional Information
Additional Information The definitive proxy statement that Coeur plans to file with the United States Securities and Exchange Commission (“SEC”) and Canadian securities regulators and mail to its shareholders will contain information about Coeur, Bolnisi, Palmarejo, the Palmarejo Project, the propos