Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Investor Presentation (July 2013)
52 slides from Coeur Mining's investor presentation, Jul 8, 2013
Slide 1: Toronto and New York Presentations Featuring La Preciosa Project PEA Update
Toronto and New York Presentations ‐ Featuring La Preciosa Project PEA Update Peter Mitchell, SVP and Chief Financial Officer Joe Phillips, SVP and Chief Development Officer NYSE: CDE | TSX: CDM July 8‐12, 2013
Slide 2: Cautionary Statements
Cautionary Statements This presentation contains numerous forward‐looking statements relating to Coeur’s business, including expectations as to the La Preciosa PEA, future mineral production, reserve potential, capital expenditures, exploration drilling, potential quality and/or grade of material, e
Slide 3: Moving Forward and Leading at the Next Level
Moving Forward and Leading at the Next Level 1. Largest primary silver mines in the world. 2. Source: Thomson Reuters GFMS NYSE: CDE NYSE: | TSX: CDE | CDM TSX: CDM 3 3
Slide 4: 2011 – YTD 2013 Accomplishments
2011 – YTD 2013 Accomplishments 1H 2013 2H 2012 • Completed $300M/7.875% 1H 2012 • Completed $20M senior notes 2H 2011 • Strong increase of $100M share financing in Rochester’s buyback program 1H 2011 • New Pres & CEO • Significant expansion estimated • Purchased at Rochester • Transformational • Re
Slide 5: Update on Silver and Gold Fundamentals
Update on Silver and Gold Fundamentals ▪ Silver ▪ Diversified base of industrial uses (electronics, solar, ethylene oxide, brazing, soldering and medical) ▪ Positive supply outlook given shutdowns, postponements and junior companies lack of access to capital ▪ Little change in ETF holdings ▪ Percept
Slide 6: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 Continued Increased Value creating Rebalancing Attractive reserves and growth including geopolitical mix strong valuation resources = share buy with production increased and large back enhances exploration value per share U.S.‐based operating production cash flow
Slide 7: Snapshot
Snapshot CDE: NYSE Ticker: Exchange CDM: TSX Shares Outstanding1 101.5M Avg. Daily Volume2 $24.7M $11.48 ‐ $31.97 52‐week Low – High2 C$12.01 ‐ C$31.82 Market Capitalization2 $1.3B Last 12 Months EBITDA3 $336.9M Cash, Equiv., and S‐T Investments4 $332.8M S&P/Moody’s Ratings BB‐/B3 1. As of 5/8/13. 2
Slide 8: 2013 Goals and Strategic Priorities
2013 Goals and Strategic Priorities • 18.0 – 19.5 M oz Ag and 250,000 – 265,000 oz Au1 Hit Production and • Cash operating costs2: $9.50 ‐ $10.50/Ag oz; $900 ‐ $950/Au oz1 Performance Targets at Kensington • Increase reserves/resources YOY through $40.0M in exploration • Improve planning, maintenanc
Slide 9: Expanding Portfolio of Precious Metals Assets
Expanding Portfolio of Precious Metals Assets Total1, 2 Silver Gold Ounces (000s) Ounces (000s) Proven & Probable Reserves 220,439 1,988 Kensington Mine, Alaska 2012: 82,125 oz Au Measured & Indicated 2013E: 108,000 ‐ 114,000 oz Au Resources* 451,202 2,705 Pershing Gold Huldra Silver Nevada, USA Inf
Slide 10: Substantial and Sustainable Annual Production Base
Substantial and Sustainable Annual Production Base 1Q 2013 Silver Production by Mine 1Q 2013 Gold Production by Mine (millions of ounces) 0.2 0.7 Palmarejo Palmarejo 1.6 25,206 22,965 San Bartolomé Rochester Rochester Kensington 1.4 Endeavor 8,742 Silver Production Gold Production 250,000‐ 265,0001
Slide 11: 1Q 2013 Operational Highlights and 2013 Outlook
1Q 2013 Operational Highlights and 2013 Outlook Foundation of Four Significant Silver and Gold Mines ▪ Kensington ▪ 1Q 2013 production down 12% from 4Q 2012; costs constant ▪ Contributed 20% of Coeur’s total operating cash flow1 ▪ Production expected to increase in 2H 2013 from higher grades ▪ Roche
Slide 12: La Preciosa: Attractive New Asset with Many Unique Attributes
La Preciosa : Attractive New Asset with Many Unique Attributes • Construction decision will be made following completion of a Durango feasibility study, expected in Guanacevi mid‐2014 Inde Gomez Palacio/Torreon MEXICO • Acquired through acquisition of Pitarrilla Orko Silver, April 16, 2013 Platosa V
Slide 13: La Preciosa PEA Highlights and Assumptions
La Preciosa PEA Highlights and Assumptions • Average annual production of 9.1 million silver ounces and 15,100 gold ounces over the initial 14 years of mine life. • Estimated capital expenditures of $347.9 million for commercial start‐up and another $84.2 million of sustaining capital over life of m
Slide 14: La Preciosa PEA Highlights and Assumptions
La Preciosa PEA Highlights and Assumptions Preliminary Economic Assessment (Base Case) Silver/gold price assumptions $25/$1,500 Initial capital expenditures $348 million Years 1‐14 strip ratio1 10.6:1 Estimated initial mine life 17 years Average daily processing rate ~11,000 tons per day Years 1‐14
Slide 15: La Preciosa PEA: Estimated Capital Expenditures
La Preciosa PEA: Estimated Capital Expenditures Estimated Capital Expenditures (in millions) Mine capital and pre‐strip $22.1 Process plant $218.4 Other infrastructure $26.4 Contingency $49.0 Coeur (owner’s costs) $32.0 Total start‐up capital expenditures1 $347.9 Total sustaining capital expenditure
Slide 16: La Preciosa PEA: Economic Sensitivity Analysis
La Preciosa PEA: Economic Sensitivity Analysis NPV @ 5% NPV @ 10% Payback Silver Price (in millions) (in millions) IRR % (years) $33 $796.6 $471.4 34.3% 2.5 $31 $672.9 $384.2 29.9% 2.9 $28 $487.2 $253.3 23.2% 3.6 $25 $314.1 $130.1 16.8% 5.3 Base Case $23 $177.1 $32.3 11.7% 9.6 $21 $31.6 ‐$71.4 6.2%
Slide 17: La Preciosa PEA: Expected Silver Production Schedule
La Preciosa PEA: Expected Silver Production Schedule Saleable Silver 12,000 10,000 8,000 Troy Ounces x 1000 6,000 4,000 2,000 0 Prep 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Mine Plan Years NYSE: CDE | TSX: CDM 17
Slide 18: La Preciosa PEA: Production Cost Parameters
La Preciosa PEA: Production Cost Parameters PEA Production Cost Assumptions Average mine costs $1.38/ton material mined Total mining cost $16.25/ton ore processed Equipment lease cost $2.88/ton ore processed Processing costs $13.04/ton ore processed Site G&A $1.59/ton ore processed Treatment, refini
Slide 19: La Preciosa Overall Site Plan
La Preciosa Overall Site Plan WASTE DUMP NYSE: CDE | TSX: CDM 19
Slide 20: La Preciosa Aerial Photo
La Preciosa Aerial Photo Looking South Tailings Plant Mine Area NYSE: CDE | TSX: CDM 20
Slide 21: La Preciosa: Measured, Indicated & Inferred Mineral Resources
La Preciosa: Measured, Indicated & Inferred Mineral Resources Effective June 26, 2013 Short Tons Average Grades (oz/t) Contained Ounces (000) Mineral Resources (000) Silver Gold Silver Gold Measured 12,664 2.78 0.005 35,194 68.3 Indicated 44,576 2.49 0.005 110,979 209.3 Total Measured & 57,240 2.55
Slide 22: La Preciosa: Mineral Resources at Alternate Metal Prices
La Preciosa: Mineral Resources at Alternate Metal Prices Effective: June 26, 2013 Measured & Measured & Indicated Indicated Inferred Resources Inferred Resources Resources Resources Au Ag Au Silver/Gold Tons Ag Au Tons Ag Au Ag Oz Oz Oz Oz Prices per Oz (000) (oz/t) (opt) (000) (oz/t) (oz/t) (M) (00
Slide 23: La Preciosa Long Section – Looking North
La Preciosa Long Section‐ Looking North NYSE: CDE | TSX: CDM 23
Slide 24: Exploration Upside: Multiple Targets Proximal to the Proposed Mine
Exploration Upside: Multiple Targets Proximal to the Proposed Mine NYSE: CDE | TSX: CDM 24
Slide 25: La Preciosa Anticipated Timetable/Next Steps
La Preciosa Anticipated Timetable/Next Steps ▪ 2Q 2013: PEA completed Exploration and development teams established ▪ 3Q 2013: Technical Report of PEA filed Commence exploration drilling ▪ Mid‐2014: Feasibility Study; construction decision ▪ 2015/2016: Construction ▪ 2H 2016: Expected initial produc
Slide 26: Coeur's Strategic Focus
Coeur’s Strategic Focus ▪ Building foundation for improved operational consistency ▪ Reducing costs and improving efficiency at our mines ▪ Reinvesting in our existing assets to increase production and maximize cash flow ▪ Advancing capital projects critical to Company’s growth and sustainability ▪
Slide 27: Appendix
C COEUR MINING
Slide 28: Palmarejo: Rebounding with Expected Improved Quarters to Come
Palmarejo: Rebounding with Expected Improved Quarters to Come First Quarter 2013 Highlights: Quarterly Production and Cash Operating Costs1 ▪ Production of 1.65 million silver ounces $3.75 $7.55 and 22,965 gold ounces ($0.85) ($2.27) $2.20 ▪ Cash operating costs of $2.20/ 2.5 2.4 silver ounce1 1.8 1
Slide 29: San Bartolomé: Stable Production and Mill Expansion on Track
San Bartolomé: Stable Production and Mill Expansion on Track First Quarter 2013 Highlights: Quarterly Production ▪ Production of 1.4 million silver ounces and Cash Operating Costs1 $12.13 $13.97 ▪ Cash operating costs of $13.27/silver $10.21 $11.05 $13.27 ounce1 1.6 1.5 1.5 1.3 1.4 ▪ Metal sales of
Slide 30: Rochester: Accelerated Production During Remainder of 2013
Rochester: Accelerated Production During Remainder of 2013 First Quarter 2013 Highlights: ▪ Production of 648,000 silver ounces Quarterly Production and 8,742 gold ounces and Cash Operating Costs1 $9.83 $13.54 ▪ Cash operating costs of $13.54/silver $23.35 $9.58 $2.17 ounce1 14000 819 828 900 713 12
Slide 31: Kensington: Improving Gold Grade Expected in Second Half
Kensington: Improving Gold Grade Expected in Second Half 2013 First Quarter 2013 Highlights: Quarterly Production ▪ Production of 25,206 gold ounces and Cash Operating Costs1 $2,709 ▪ Cash operating costs of $1,055/gold $1,348 $1,065 $1,055 ounce1 $1,298 28,718 ▪ Metal sales of $39.3 million 24,391
Slide 32: Balance Sheet and EBITDA Detail
Balance Sheet and EBITDA Detail in millions of US$ 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 Cash, Equivalents & Short‐Term $332.8 $126.4 $143.6 $200.3 $153.2 Investments Short‐Term Debt: 3.25% Convertible Senior Notes1 5.3 48.1 47.4 46.8 46.2 Senior Term Notes ‐‐ ‐‐ ‐‐ Kensington Term Facility ‐‐ ‐‐
Slide 33: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Earnings ‐ Quarterly Adjusted Earnings Reconciliation – 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 in thousands of US$ Net income $12,270 $37,550 ($15,821) $22,973 $3,975 Share based compensation 1,096 1,476 3,364 1,033 2,137 Deferred income tax
Slide 34: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA ‐ Quarterly EBITDA Reconciliation ‐ in thousands of US$ 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 Net income $12,270 $37,550 ($15,821) $22,973 $3,975 Income tax provision 10,520 11,839 17,475 23,862 15,436 Interest expense, net of capitalized int
Slide 35: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Operating Cash Flow ‐ Consolidated Operating Cash Flow Reconciliation – Quarterly‐ 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 in thousands of US$ Cash provided by operating activities $12,934 $61,693 $79,735 $113,203 $17,002 Receivables and other current
Slide 36: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Operating Cash Flow ‐ Palmarejo Operating Cash Flow Reconciliation ‐ in millions of US$ 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 Cash provided by operating activities $10.1 $22.9 $58.2 $90.5 $65.3 Receivables and other current assets 6.6 (1.3) (4.1) (1
Slide 37: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Operating Cash Flow – Kensington Operating Cash Flow Reconciliation – in millions of 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 US$ Cash provided by operating activities $11.7 $16.5 $5.0 ($12.5) $1.1 Receivables and other current assets 1.8 (2.6) 2.3 4.6
Slide 38: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs1 (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended March 31, 2013 Bartolomé Total cash operating cost (Non‐U.S. GAAP) $3,245 $18,465 $26,751 $8,798 $33 $2,
Slide 39: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs1 (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended December 31, 2012 Bartolomé Total cash operating cost (Non‐U.S. GAAP) $11,732 $18,765 $30,588 $1,795 ($1
Slide 40: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs1 (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended September 30, 2012 Bartolomé Total cash operating cost (Non‐U.S. GAAP) $6,878 $18,504 $31,660 $7,853 $4,
Slide 41: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs1 (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended June 30, 2012 Bartolomé Total cash operating cost (Non‐U.S. GAAP) ($2,009) $16,249 $29,083 $7,008 $5,942
Slide 42: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs1 (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended March 31, 2012 Bartolomé Total Cash Operating Cost (Non‐U.S. GAAP) ($5,643) $16,253 $20,168 $10,303 $5,7
Slide 43: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Year Ended December 31, 2012 Bartolomé Total cash operating cost (Non‐U.S. GAAP) $10,958 $69,771 $111,499 $26,959 $16,094 $1
Slide 44: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Year Ended December 31, 2011 Bartolomé Total cash operating cost (Non‐U.S. GAAP) ($8,743) $68,277 $96,234 $31,978 $17,367 $1
Slide 45: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Co‐Product Cash Cost1 Per Ounce for Q1 2013 Co‐Product Cash Cost1 Per Ounce for Q1 2012 Palmarejo Rochester Palmarejo Rochester 1 1 Total cash operating costs $40,881 $23,057 Total cash operating costs $46,883 $19,261 Total cash costs1 $40,881 $24,807
Slide 46: External Growth - Strategic Investments
External Growth‐ Strategic Investments ▪ Apogee Silver (Pulacayo‐Paca project, Bolivia and Cachinal project, Chile; 9.7% ownership interest): ▪ Completed first sale of lead and zinc concentrates from Pulacayo ▪ Caracara Silver (Princesa project, Peru; 3.4% ownership interest) ▪ Optioned exploration
Slide 47: Coeur's Mineral Reserves 2012
Coeur’s Mineral Reserves 2012 Grade (oz/ton) Ounces (contained) Year End 2012 Location Short tons Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 56,304,000 0.54 0.004 30,501,000 230,000 Martha Argentina ‐ ‐ ‐ ‐ ‐ San Bartolomé Bolivia 1,187,000 2.92 ‐ 3,460,000 ‐ Kensington Alaska, US
Slide 48: Coeur's Measured and Indicated Mineral Resources 2012
Coeur’s Measured and Indicated Mineral Resources 2012 (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year end 2012 Location Short tons Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 135,558,000 0.47 0.004 63,921,000 498,000 Martha Argentina ‐ ‐ ‐ ‐ ‐ San Bartolomé Bolivia ‐
Slide 49: Coeur's Inferred Mineral Resources 2012
Coeur’s Inferred Mineral Resources 2012 Grade (oz/ton) Ounces Year end 2012 Location Short tons Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 45,643,000 0.60 0.003 27,201,000 123,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 2,826,000 1.17 ‐ 3,319,000
Slide 50: Senior Management
Senior Management Mitchell J. Krebs – President and Chief Executive Officer. Mr. Krebs has been with Coeur for 17 years holding various progressive positions. Mr. Krebs was most recently the Chief Financial Officer, and prior thereto was Senior Vice President of Corporate Development. He is a gradua
Slide 51: Board of Directors
Board of Directors Robert E. Mellor – Chairman of the Board. Former Chairman, Chief Executive Officer and President of Building Materials Holding Corporation. Mr. Mellor brings public company board experience through his service on the boards of The Ryland Group, Inc. and Monro Muffler/Brake, Inc. M
Slide 52: Contact Information
Contact Information Head Office: Coeur Mining, Inc. Chicago Main Tel: (208) 667‐3511 Stock Tickers: CDE: NYSE; CDM: TSX Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: www.coeur.com Bridget Freas Director, Investor Relations bfreas@coeur.com NYSE: CDE | TSX: CDM 52