Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — BetterInvesting National Convention 2014
38 slides from Coeur Mining's conference presentation, May 15, 2014
Slide 1: BetterInvesting National Convention
BetterInvesting National Convention Bridget Freas, Director, Investor Relations Marriott O’Hare, Chicago May 15-18, 2014 Presentation: May 15 at 12:25 p.m. local time, Ballroom 1,2,3,4
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: Maximizing Opportunities to Drive Returns
Maximizing Opportunities to Drive Returns Largest U.S.-based Silver Producer; Significant Gold Production Disciplined Capital Deployment Strategy Growing Pipeline of Well-Capitalized with Value-Creating Assets Strong Liquidity Current Assets Provide Diversified Production Base & Strong Operating Foc
Slide 4: Company Overview
Company Overview 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 1,058 Rochester Mine, Nevada 2013: 2.8M oz Ag; 30
Slide 5: Substantial and Sustainable Annual Production Base
Substantial and Sustainable Annual Production Base 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
Slide 6: Financial Highlights
Financial Highlights 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-10 Jan-11 May-11 Sep-11 Jan-12 M
Slide 7: Financial Position
Financial Position 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
Slide 8: Capital Spending Significantly Reduced
Capital Spending Significantly Reduced $400 $350 $300 $250 $ in millions $200 $150 $100 $50 $0 2008 2009 2010 2011 2012 2013 2014E 2014E represents the midpoint of capital expenditure guidance published by Coeur on May 7, 2014. NYSE: CDE 8
Slide 9: High Leverage to Macro Environment and Improved Company Performance
High Leverage to Macro Environment and Improved Company Performance Market Cap per 2014E Silver Market Cap per Silver Equivalent P/NAV3 Equivalent Production Ounce1,2 Reserve Ounce1,2 TAHO $168.6 HOC 1.3 FRES $15.1 FRES 1.3 FRES $150.6 EXK $13.2 GPR 1.3 POLY $123.1 POLY $12.7 POLY 1.2 SSRI $85.0 SLW
Slide 10: Key Catalysts During Remainder of 2014
Key Catalysts During Remainder of 2014 Palmarejo operational adjustments, mine life update, and future cash flow profile Rochester expansion progress Cost profile Mid-year decision on La Preciosa feasibility-stage project Capital deployment philosophy NYSE: CDE 10
Slide 11: Palmarejo Costs Trending Down; Open-Pit Rates Declining
Palmarejo Costs Trending Down; Open-Pit Rates Declining 2Q 2013 3Q 2013 4Q 2013 1Q 2014 OP mining costs per OP ton mined $1.75 $1.73 $1.64 $1.47 UG mining costs per UG ton mined $52 $40 $35 $37 Processing costs per ton processed $27 $24 $26 $23 G&A per ton processed $12 $13 $11 $14 Tons milled 570,3
Slide 12: Rochester Ramp Up Continues at Lower Expected Costs
Rochester Ramp Up Continues at Lower Expected Costs Recent Accomplishments ~50% Silver Production Growth Expected in 2014 126% increase in silver reserves in 2013 4,250 Ounces in thousands 121% increase in gold reserves in 2013 2,799 Completed Stage 3 leach pad expansion Upgraded crusher cir
Slide 13: La Preciosa Value Considerations
La Preciosa Value Considerations ▪ Acquired in early 2013 ▪ Feasibility study expected to be completed mid-2014 ▪ Anticipated to be one of the largest silver mines in the world ▪ Long expected mine life ▪ Attractive jurisdiction ▪ Low technical risk ▪ Provides significant upside exposure in a rising
Slide 14: 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 15: Key Investment Highlights
Key Investment Highlights Well-capitalized with strong liquidity Balance Sheet Five operating assets in four Health jurisdictions and growing pipeline Value-Creating Asset Growth Diversity Conservative capital deployment including large exploration program near existing operations Leverage to strong
Slide 16: Appendix
Appendix
Slide 17: Cash Flow Protection Strategy
Cash Flow Protection Strategy Coeur continues to maintain a targeted cash flow protection program with the following objectives: Maintain simplicity Protect downside metal price exposure while retaining the upside potential Purchase put options to protect some of expected production against
Slide 18: 2014 Goals and Strategic Priorities
2014 Goals and Strategic Priorities Attain New Heights in Empower employees to own success through standardized systems and aligned incentives Safety, Environmental & Focus on establishing and maintaining trust through sustained engagement with Community Relations stakeholders Share best pract
Slide 19: Value-Creating Exploration Program
Value-Creating Exploration Program Total Coeur Proven & Probable Reserves Total Coeur Silver Equivalent Reserves & Resources 249 millions of tons 145 millions of ounces 2012 Year End 2013 Year End Total Coeur Measured & Indicated Resources 270 millions of tons 80 2009 2010 2011 2012 2013 Proven & Pr
Slide 20: 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 21: 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 22: 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 23: 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 $11.53 819 828 844 713 12,055 712 750 10,599 648 10,120 9,404 595 ounces 8,742 8,192 441 7,890 333 352 373 5,292 4,824 1,397 1,435 1,993 2Q'11 3Q
Slide 24: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA EBITDA Reconciliation ($ 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: External Growth - Strategic Investments
External Growth - 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 interest)
Slide 33: 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 34: 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 35: 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 36: Executive Leadership
Executive 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
Slide 37: 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 38: 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
Coeur Mining — BetterInvesting National Convention 2014 on 6ix