Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — The Silver Summit & Resource Expo 2015
39 slides from Coeur Mining's conference presentation, Nov 23, 2015
Slide 1: The Silver Summit & Resource Expo
The Silver Summit & Resource Expo Peter C. Mitchell, Sr. Vice President and Chief Financial Officer San Francisco, CA November 23 – 24, 2015 Presentation: Monday, November 23 at 2:45 p.m. Booth: 200
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 production, costs, crushing and mining rates, mine plans, grades, recovery rates, mine life, debt l
Slide 3: Investment Considerations
Investment Considerations Well‐advanced repositioning Diversified which may not be portfolio of silver fully appreciated and gold assets Executing strategy to reduce costs, in improve returns, the market and drive significant future free cash flow Delivering on Significant free cash strategy to redu
Slide 4: Leading Producer of Silver and Gold
Leading Producer of Silver and Gold 2014 Silver Equivalent Production by Mine (millions of ounces) Revenue by Metal 0.6 22% 36% 34% 40% 48% 48% 59% 7.1 Palmarejo 78% 11.8 Rochester 64% 66% 60% Gold San Bartolomé 52% 52% 41% Silver 5.9 Kensington Endeavor 6.9 2009 2010 2011 2012 2013 2014 YTD 3Q'15 P
Slide 5: Portfolio Includes 2 of the Top 15 Largest Primary Silver Mines
Portfolio Includes 2 of the Top 15 Largest Primary Silver Mines Ticker: Exchange CDE: NYSE Kensington Mine, Alaska Shares Outstanding1 151.3M 2014: 117,823 oz Au 2015E: 115,000 ‐ 125,000 oz Au Avg. Daily Volume1 $9.0M Wharf Mine, South Dakota 2015E: 74,000 – 78,000 oz Au 52‐week Low – High1 $2.34 –
Slide 6: Coeur's Repositioning is Significant and is Well Underway
Coeur’s Repositioning is Significant and is Well Underway Coeur is now positioned to deliver near‐term, quality growth in production and free cash flow with costs expected to drop to among the lowest in the industry in 2017 Coeur Coeur 2014 2017 Silver Equivalent Production (millions of ounces) 32 4
Slide 7: Three-year Company Outlook
Three‐year Company Outlook AgEq Production Profile All‐in Sustaining Costs1 50.0 25 40.0 – 45.0 35.0 – 37.0 $19.23 40.0 33.7 – 36.4 20 $16.50 ‐ $17.00 $16.50 ‐ $17.50 $ per AgEq ounce 32.2 Million ounces $14.00 ‐ $15.00 30.0 15 20.0 10 10.0 5 0.0 0 2014A 2015E 2016E 2017E 2014A 2015E 2016E 2017E Adj
Slide 8: 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 9: Proactively Reducing Debt While Maintaining Liquidity
Proactively Reducing Debt While Maintaining Liquidity Balance Sheet Highlights Net debt / LTM Adj. EBITDA1 $ in millions YE’14 3Q’15 4.2x Cash $270.9 $204.7 4.0x 3.8x Total debt $478.4 $492.0 3.2x Net debt $207.5 $287.3 LTM Adj. EBITDA1 $85.0 $89.6 Total debt/LTM Adj. EBITDA1 5.6x 5.5x Net debt/LTM
Slide 10: 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 11: 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 12: Palmarejo: World's 9th Largest Silver Mine
Palmarejo: World’s 9th Largest Silver Mine Today at Palmarejo Palmarejo’s Future Acquisition of Paramount in April 2015 provides Transitioning to underground second source of high‐grade mineralization to mining to maximize margins and supplement rising production from Guadalupe cash flow Developme
Slide 13: Rochester: 2nd Largest Primary Silver Mine in the U.S.
Rochester: 2nd Largest Primary Silver Mine in the U.S. Today at Rochester Rochester’s Future Permitting for 120 million tons of additional leach pad capacity well underway Executing in‐pit crusher expansion and increased Stage III leach pad Majority of related capex deferred until 2017, capacity d
Slide 14: Kensington: 100% Pure Gold Mine
Kensington: 100% Pure Gold Mine Today at Kensington Kensington’s Future Re‐scoped mine plan demonstrates strategy to • Recently raised 2015 production guidance and lowered 2015 cost source ore from higher‐grade areas over the LOM guidance by 7% • New sorting technology being implemented to further i
Slide 15: Wharf: The Newest Addition to Coeur's Portfolio
Wharf: The Newest Addition to Coeur’s Portfolio Today at Wharf Wharf’s Future • Gold equivalent production Higher production level expected to continue at increased 40% in the third lower unit costs through 4Q due to an increase quarter in production from the high‐grade Golden Reward pit • Free cash
Slide 16: San Bartolomé: One of the World's Largest Pure Silver Mines
San Bartolomé: One of the World’s Largest Pure Silver Mines Today at San Bartolomé San Bartolomé's Future • Straightforward operation due to free‐ Test work underway on processing digging surface mining techniques (no enhancements to improve recoveries drilling or blasting) Potential to lower costs
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: 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 20: Declining G&A; Low Compared with the Peer Group
Declining G&A; Low Compared with the Peer Group 3Q 2015 G&A as % of Revenue Coeur G&A $11 19.2% $10 $9.4 16.0% $9.0 $9 $8.8 $8.5 In Millions $8.5 $8 9.1% 7.4% 7.3% $7 $6.7 5.9% 4.1% 4.1% 4.0% $6 1.0% $5 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Source: G&A and Revenue as reported by each company in their
Slide 21: 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 $14.49 $13.91 $13.52 $11.40 $22.9 $20.2 $12.07 $ in millions 1.5 $10.01 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
Slide 22: Rochester: Lower Mining and Leaching Costs Sustain Low CAS per AgEq oz
Rochester: Lower Mining and Leaching Costs Sustain Low CAS per AgEq oz1 $14.39 $12.75 $12.95 $14.78 $12.01 $12.01 $13.82 $16.4 $11.91 $10.94 $10.89 1.3 $ in millions 1.2 1.2 1.1 $10.2 1.1 $8.8 $8.2 ounces 15,764 16,411 $5.9 $6.5 13,721 $5.3 11,702 $4.2 10,892 $3.3 $2.7 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15
Slide 23: 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 24: 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 25: 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 26: 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 Net income (loss) ($1,143,221) ($1,125,536) ($1,151,980) Interest expense, net of capitalized interest 44,511 43,680 45,257 Other, net 12,547 4,959 7,124 Income tax provision (benefi
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 FY 2014 Costs applicable to sales, including amortization (U.S. GAAP) $155,929 $164,125 $146,742 $635,516 Amortization 35,692 45,028 31,680 157,571 Costs applicable to
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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: Rebecca Hussey Senior Analyst, Investor Relations rhussey@coeur.com NYSE: CDE 39
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