Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — CIBC Royalties Conference 2014
37 slides from Coeur Mining's conference presentation, Jun 23, 2014
Slide 1: CIBC Royalties Conference
CIBC Royalties Conference Mark D. Kucher, Managing Director, Coeur Capital Toronto, Ontario June 23, 2014
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 anticipated production, costs, expenses, capital and exploration expenditures, amortization, and exploration and de
Slide 3: Key Investment Considerations for Coeur Mining
Key Investment Considerations for Coeur Mining Largest U.S.-based Silver Producer; Significant Gold Production Disciplined Capital Deployment Strategy Growing Pipeline of Well-Capitalized with Value-Creating Assets Strong Liquidity Strong Platform of Assets Provides Diversified Production Base Focus
Slide 4: Leading Producer of Silver and Gold
Leading Producer of Silver and Gold 2013 Silver Production by Mine (millions of ounces) 2013 Gold Production by Mine 0.7 2.8 Palmarejo Palmarejo 7.6 San Bartolomé 114,821 116,536 Rochester Rochester 5.9 Endeavor Kensington 30,860 Silver Production Gold Production 262,217 220,000- 19.1 18.0 238,000 1
Slide 5: Portfolio Includes 2 of the Top 15 Largest Primary Silver Mines
Portfolio Includes 2 of the Top 15 Largest Primary Silver Mines Kensington Mine, Alaska Silver Ounces Gold Ounces 2013: 114,821 oz Au Total1 (000s) (000s) 2014E: 105,000 - 112,000 oz Au Proven & Probable Reserves 255,396 2,152 Measured & Indicated Resources 386,297 2,461 Inferred Resources 96,423 1,
Slide 6: Diverse Base of Cash-Flowing and Development Assets Complemented by Coeur Capital
Diverse Base of Cash-Flowing and Development Assets Complemented by Coeur Capital Robust Operating Long Mine Early-Stage Exploration Mines Life Projects Program Support Enables Facilitates NYSE: CDE 6
Slide 7: Growing Asset Pipeline with Balanced Production Cycle
Growing Asset Pipeline with Balanced Production Cycle Long mine lives within operating asset base balanced by feasibility-stage projects, newly- formed Coeur Capital and recent emphasis on early stage exploration projects Coeur Mining Coeur Capital Development Strategic Royalty/Streaming Operating A
Slide 8: Coeur Capital Offers Complementary Business Model
Coeur Capital Offers Complementary Business Model • Anticipated higher margin, less volatile cash flow Enhances • Scalable business model Coeur’s Cash • Requires no capital expenditures, no exploration expense, and minimal G&A expenses • Provides additional diversification across more assets in more
Slide 9: Coeur Capital Asset Overview
Coeur Capital Asset Overview Endeavor Mine (Australia) Zaruma Mine (Ecuador) Mine Type Underground lead/zinc/silver mine Mine Type Underground gold mine Operator Toho Zinc Operator Dynasty Metals and Mining Status In production since 1983 Status Pre-commercial production Production 669k oz Ag in 201
Slide 10: Strong Market Performance by Operators of Coeur Capital Royalties
Strong Market Performance by Operators of Coeur Capital Royalties 30% GRC Acquisition Closed 12/13/13 20% 10% 0% -10% -20% -30% Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Coeur Capital Asset Operators Gold Silver Global Gold Index Source: Capital IQ. Coeur Ca
Slide 11: Coeur Capital: Driving Returns with Minimal Capital
Coeur Capital: Driving Returns with Minimal Capital ▪ Future growth expected to be largely self-funded and eminently financeable at a relatively low cost of capital ▪ Will seek high-return opportunities expected to improve the quality of Coeur’s cash flow and increase overall margins Competitive Lan
Slide 12: What Differentiates Coeur Capital?
What Differentiates Coeur Capital? Integration with Coeur’s operating business unit provides leverage to Direct Access to technical talent Mining Expertise Targets underserved segment of the royalty space Favorable Access to Positioning Coeur Mining has a Capital strong balance sheet; over $300M in
Slide 13: Appendix
Appendix
Slide 14: Financial Performance Highly Dependent on Metal Price
Financial Performance Highly Dependent on Metal Price Net Metal Sales EBITDA1 $529 $1,021 $895 $ in millions $378 $ in millions $746 $515 $214 $191 $300 $70 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Silver and Gold Price History2 350% 250% 150% 50% -50% Jan-09 May-09 Sep-09 Jan-10 May-10 Sep
Slide 15: 2014 Guidance
2014 Guidance Silver Production Gold Production 7,603 6,950 Ounces in thousands 5,941 5,850 114,821 108,500 116,536 91,000 4,250 Ounces 2,799 30,860 29,500 669 550 Palmarejo San Bartolomé Rochester Endeavor Kensington Palmarejo Rochester 2013 Actual 2014 Guidance Midpoint 2013 Actual 2014 Guidance M
Slide 16: Well-capitalized balance sheet with financial flexibility and low leverage
Well-capitalized balance sheet with financial flexibility and low leverage Liquidity $272.9 $45.6 Net Debt = $145.7 Debt $456.2 $8.1 $0 $100 $200 $300 $400 $500 in millions Cash & Cash Equivalents Short-term Investments Long-term Debt Short-term Debt As of March 31, 2014. Summary balance sheet (in m
Slide 17: Returns-Driven Approach to Capital Deployment and Portfolio Optimization
Returns-Driven Approach to Capital Deployment and Portfolio Optimization Coeur’s Strategy Opportunities Expected IRR > cost of capital Acquisition of operating asset ‾ Adds near-term cash flow Jurisdictions with low political risk ‾ Less execution risk; lower capital needs Diversify asset ba
Slide 18: Key Focal Points for 2014
Key Focal Points for 2014 Palmarejo San Bartolomé Kensington Rochester Transitioning to expected Higher production Mill throughput tracking 2014 silver production higher-grade, higher- expected in remaining significantly higher than expected to increase margin operation quarters of 2014 rece
Slide 19: Palmarejo: Improving Operational Consistency
Palmarejo: Improving Operational Consistency $15.55 $14.97 $12.88 $12.89 $13.73 $13.39 $13.66 $11.51 $13.36 $10.36 $10.90 $9.89 2.7 2.4 2.5 2.4 2.3 2.0 1.9 2.0 1.8 1.8 33,389 1.6 1.6 35,486 ounces 34,108 31,258 29,893 29,815 31,081 28,191 25,216 23,702 19,998 22,965 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'
Slide 20: San Bartolomé: Expect Continued Stable Production and Costs in 2014
San Bartolomé: Expect Continued Stable Production and Costs in 2014 $15.26 $12.43 $13.06 $13.41 $14.14 $13.25 $13.91 $13.93 $10.08 $11.34 $10.65 $10.66 2.1 2.0 1.7 1.6 1.5 1.5 1.4 1.5 1.5 1.5 1.4 1.3 ounces 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 1 Silver production (
Slide 21: Kensington: Higher Throughput Expected to Offset Lower Grade in 2014
Kensington: Higher Throughput Expected to Offset Lower Grade in 2014 $2,587 $1,005 $1,469 $871 $1,126 $1,234 $667 $1,129 $1,002 $890 $856 $676 37,404 28,717 29,049 25,758 25,687 24,391 25,206 25,428 21,572 23,162 ounces 13,299 7,444 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1
Slide 22: Rochester: Higher Silver and Gold Production and Lower Costs Expected in 2014
Rochester: Higher Silver and Gold Production and Lower Costs Expected in 2014 $16.55 $15.74 $22.97 $12.73 $16.38 $15.74 $15.15 $14.95 $16.63 $15.83 $12.67 $11.53 819 828 844 713 12,055 712 750 10,599 648 10,120 9,404 595 ounces 8,742 8,192 441 7,890 333 352 373 5,292 4,824 1,397 1,435 1,993 2Q'11 3Q
Slide 23: External Growth through Strategic Investments
External Growth through Strategic Investments Apogee Silver (Pulacayo-Paca project, Bolivia and Cachinal project, Chile; 7.6% ownership interest): Environmental Impact Assessment approved by Bolivia’s Ministry of Environment and Water Caracara Silver (Princesa project, Peru; 3.2% ownership int
Slide 24: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA EBITDA Reconciliation ($ in thousands) LTM 3/31/14 LTM 9/30/13 LTM 6/30/13 Net income (loss) ($700,024) ($31,485) ($1,041) Interest expense, net of capitalized interest 44,625 34,915 32,604 Interest and other income (19,162) (1,865) (16,925) In
Slide 25: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA EBITDA Reconciliation ($ in thousands) FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 Net income (loss) ($650,563) $48,677 $93,499 ($91,308) ($27,066) (Gain) loss on sale of discontinued operations, -- -- -- 2,095 (25,537) net of income taxes (Income)
Slide 26: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (dollars in thousands except per ounce costs) San Total three months ended March, 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $62,
Slide 27: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended September 30, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $100,314 $22,460 $20,458
Slide 28: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended March 31, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $55,500 $20,318 $22,629 $2,1
Slide 29: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended September 30, 2012 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $82,515 $23,976 $22,150
Slide 30: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended March 31, 2012 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $83,474 $17,709 $10,884 $4,3
Slide 31: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended September 30, 2011 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $105,125 $36,073 $11,367
Slide 32: Coeur's Mineral Reserves 2013
Coeur’s Mineral Reserves 2013 Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 132,188,000 0.53 0.004 69,915,000 551,000 Martha Argentina - - - - - San Bartolomé Bolivia 1,206,000 2.87 - 3,456,000 - Kensington Alaska, U
Slide 33: Coeur's Measured and Indicated Mineral Resources 2013
Coeur’s Measured and Indicated Mineral Resources 2013 (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 66,190,000 0.45 0.003 29,860,000 186,000 Martha Argentina — — — — — San Bartolomé Bolivia —
Slide 34: Coeur's Inferred Mineral Resources 2013
Coeur’s Inferred Mineral Resources 2013 Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 37,365,000 0.62 0.003 23,295,000 101,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 3,683,000 1.26
Slide 35: Leadership
Leadership Mitchell J. Krebs – President and Chief Executive Officer. Mr. Krebs joined Coeur in 1995 after spending several years in the investment banking industry in New York. Mr. Krebs has held various positions in the corporate development department, including Senior Vice President of Corporate
Slide 36: 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 37: Contact Information
Contact Information Head Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489-5800 Stock Ticker: CDE: NYSE Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: www.coeur.com Bridget Freas Donna Mirandola Director, Investor Relations Director, Corporate