Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q3 2023 Earnings Presentation
65 slides from Coeur Mining's earnings presentation, Nov 9, 2023
Slide 1: 2023 Third Quarter Earnings
2023 Third Quarter Earnings 11:00 a.m. ET, November 9, 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, growth, anticipated production, costs and expenses, exploration and de
Slide 3: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights • Rochester expansion complete; step-up in production underway • Increased revenue and adj. EBITDA driven by stronger gold production • Full-year guidance updated with stronger expected fourth quarter from Wharf • Balance sheet and hedging initiatives supporting r
Slide 4: Production Summary
Production Summary Full-Year Guidance1 YTD Implied 3Q 2023 (Previous Guidance ) Progress3 2 4Q 2023 Comments Gold Production (oz) • Higher average recoveries and mill throughput quarter-over- 100,000 – 112,500 quarter Palmarejo 26,870 71% 24,796 – 37,296 (100,000 – 112,500) • Lower average grades qu
Slide 5: Investing in Organic Growth Opportunities
Investing in Organic Growth Opportunities Capital Expenditures by Mine Capital Expenditures Composition (% companywide total) (% companywide total) 1% 1% 1% 1%0% 9% 7% 10% 14% 12% 28% 39% 2022 2023E1 2022 2023E1 $352M $378M-$432M $352M $378M-$432M 61% 72% 70% 74% Palmarejo Rochester Kensington Susta
Slide 6: Rochester Expansion: Transitioning to Ramp Up
Rochester Expansion: Transitioning to Ramp Up The Rochester expansion in now complete. First production from new leach pad and process plant began mid-September and the legacy crusher is now being decommissioned in preparation of expected mining activities in that location in 2024 Project Overview M
Slide 7: Rochester Expansion: World Class Asset – By the Numbers
Rochester Expansion: World Class 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 •
Slide 8: Rochester Expansion: Expected Operational Performance
Rochester Expansion: Expected 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
Slide 9: Rochester Expansion: Mine Stress Testing
Rochester Expansion: Mine Stress Testing A series of tests have been completed on adequate preparation for step-up of mine production from increased crusher throughput following the completion of commissioning Planned Step-Ups 2023 2024 Avg. Mined Tons ~81,000 ~97,000 Crushed and Placed Tons ~35,000
Slide 10: Rochester Expansion: Ramp-Up Update
Rochester Expansion: Ramp-Up Update Primary and Secondary Crusher Merrill-Crowe Process Plant Final Load Out First Pour and Doré Bar Note: For additional information on the expansion of Rochester, please refer to the technical report summary for Rochester available at www.sec.gov. NYSE: CDE 10 JC 20
Slide 11: 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 (expected future area of large pit pushback) and use it for exploration ranking and targeting across the district Largest reserve of any primary silver • mine in the U.
Slide 12: Focus on Priority Targets
Focus on Priority Targets East Rochester Rochester Corridor Geology • Brand new geologic model by re-logging of drillholes Gold Mountain and structural pit mapping delivers a better understanding of the controls to mineralization at Open Pit Plainview deposit and district scales Workings Major Fault
Slide 13: Kensington: Upper Kensington Recent Drill Results
Kensington: Upper Kensington Recent Drill Results Recent expansion drilling at Upper Kensington led to the discovery of Zone 30C. The drill program at Upper Kensington continues to trace key mineralized structures to the south and down dip and has outlined a new parallel vein structure that already
Slide 14: Kensington: Lower Kensington Recent Drill Results
Kensington: Lower Kensington Recent Drill Results Drilling along strike at Lower Kensington has intersected some of the best grade thickness ever encountered at Kensington, extending mineralization by over 760 feet as well as defining new hanging-wall splay and a series of mineralized linking struct
Slide 15: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 3Q 2023 2Q 2023 QoQ ∆ 3Q 2022 YoY ∆ Metal Sales Gold ounces sold (oz) 78,015 67,091 16% 81,784 (5%) Silver ounces sold (M oz) 2.2 2.3 (5%) 2.3 (4%) Key Financials Revenue $194.6 $177.2 10% $183.0 6% 1 Exploration in
Slide 16: Inflationary Cost Pressures Remain
Inflationary Cost Pressures Remain Coeur has continued to experience inflationary pressures – particularly compared to 24 months ago – with some recent easing in some areas Diesel Cost Per Gallon Materials, Parts and Supplies Cost +23% +11% $33.5 $34.0 $4.33 $32.5 $31.9 $4.15 $3.62 $3.68 $28.6 $28.4
Slide 17: Balance Sheet and Hedging Summary
Balance Sheet and Hedging Summary Liquidity Profile1,2 Debt and Leverage Summary1,3 ($M) ($M) Dec. 31, Jun. 30, Sept. 30, 2022 2023 2023 5.125% senior notes due 2029 369.2 321.9 303.0 $390 Revolving credit facility 80.0 80.0 140.0 ($30) $7 $280 $10 $290 Capital lease obligations 66.7 66.7 69.2 $53 $
Slide 18: Looking Ahead: Key Deliverables for 2023
Looking Ahead: Key Deliverables for 2023 • Safely and successfully ramp-up Rochester post-expansion • Deliver stronger fourth quarter operational performance at Kensington • Deliver consistent operating and financial results across portfolio while mitigating inflationary cost pressures and achiev
Slide 19: 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 84,000 – 95,000 - 81,000 – 85,000 - Wharf 85,
Slide 20: ESG Highlights
ESG Highlights NYSE: CDE 20 JC 2016
Slide 21: Coeur's Approach to Biodiversity
Coeur’s Approach to Biodiversity Coeur is committed to protecting, restoring, conserving and managing natural capital, biodiversity and ecosystem services through responsible development and achieving environmental stewardship. In line with that commitment, the Board recently approved a formal Biodi
Slide 22: Biodiversity of Sites
Biodiversity of Sites Palmarejo Rochester Kensington Wharf Silvertip • Topography is • Topography in and • Topography in and • Unique location in • Topography is a dominated by around the mine is around the mine is close proximity to mixture of high alpine immense mountain characterized by arid domi
Slide 23: Nature Conservation in Practice
Nature Conservation in Practice Coeur funded the preservation and enhancement of over 3,000 acres of greater sage-grouse habitat through the State of Nevada's sagebrush ecosystem conservation program called the Conservation Credit System (CCS) “This collaborative, science‐based greater sage‐ Mining
Slide 24: Appendix
Appendix NYSE: CDE 24 JC 2016
Slide 25: Palmarejo
Palmarejo The Palmarejo gold-silver complex is located in the state of Chihuahua, Mexico, consisting of a legacy open pit mine, current underground mining and processing operations as well as several other deposits and exploration targets Asset Overview Share of Companywide 2023E2 Production Ownersh
Slide 26: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,027 $1,023 $15.56 $948 $926 Capital expenditures $15.16 $14.23 $13.94 $917 $12.67 $22.6 $18.9 $18.6 1,752 1,612 26 1,489 1,617 27 1,601 25 25 $12.9 23 $10.8 $11.5 $11.9 $10.8 $1
Slide 27: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which completed a significant expansion in November 2023 that is expected to drive a step-change in production and cash flow Asset Overview Share of Companywide 2023E2 Production Ownership 100%
Slide 28: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,899 $1,821 Capital expenditures$92.4 $1,655 $84.4 $1,596 $1,646 $74.0 $23.64 $61.5 $52.0 $20.24 $20.39 $18.46 $17.60 973 745 12 761 683 608 9 8 6 4 ($3.8) ($5.5) ($13.7) ($13.5)
Slide 29: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2023E2 Production Ownership 100% Gold Em
Slide 30: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $2,927 Operating cash flow2 Capital expenditures $15.8 $11.2 $11.7 $1,775 $10.7 $1,455 $1,543 $9.4 $7.1 $7.6 $1,265 $6.3 $5.1 30 28 25 20 13 ($13.6) 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q
Slide 31: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2023E2 Production Ownership 100% Gold Employees1
Slide 32: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $33.8 $1,466 $1,393 Capital expenditures $1,357 $1,267 $1,035 26 $19.5 22 23 20 15 $10.3 $6.9 $1.9 $0.5 $0.8 $0.1 $0.1 $0.7 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q 2022 1Q 2
Slide 33: Silvertip
Silvertip The Silvertip exploration project is one of the highest-grade silver-zinc-lead projects in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 74 Claims 98,834 net acres Type Undergro
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 34 JC 2016
Slide 35: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Updated Costs Applicable to Sales Guidance for 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $232,269 $181,642 $114,698 Amortization (36
Slide 36: Non-GAAP to U.S. GAAP Reconciliation for Guidance (cont.)
Non-GAAP to U.S. GAAP Reconciliation for Guidance (cont.) Unaudited Previous Costs Applicable to Sales Guidance for 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $233,198 $183,769 $118,406 Amortiz
Slide 37: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended September 30, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $57,083 $34,708 $45,18
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $54,608 $29,717 $43
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $57,984 $48,083 $4
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $218,008 $187,
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $55,325 $50,211
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $51,271 $57,68
Slide 43: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 3Q 2023 2Q 2023 1Q 2023 2022 4Q 2022 3Q 2022 Net income (loss) ($21,109) ($32,412) ($24,586) ($78,107) $49,089 ($57,444) Fair value adjustments, net 2,010 3,922 (10,561) 66,668 1,396 13,067 Foreign exchan
Slide 44: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 3Q 2023 2Q 2023 1Q 2023 2022 4Q 2022 3Q 2022 Net income (loss) ($21,109) ($32,412) ($24,586) ($78,107) $49,089 ($57,444) Interest expense, net of capitalized interest 7,402 6,912 7,389 23,861 8,191 5,932 Income tax
Slide 45: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Net income (loss) ($29,018) ($65,353) ($110,375) ($78,107) ($137,956) Interest expense, net of capitalized interest 29,894 28,424 26,682 23,861 18,881 Income tax provision
Slide 46: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 3Q 2023 2Q 2023 1Q 2023 2022 4Q 2022 3Q 2022 Cash flow from operating activities ($2,383) $39,397 ($35,003) $25,616 $28,516 ($19,117) Capital expenditures (112,273) (85,581) (74,048) (352,354) (113,094) (96,602) Free
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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 53: 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 54: 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 55: 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 56: 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 57: 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 58: 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 65 JC 2016