Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q2 2015 Earnings Presentation
32 slides from Coeur Mining's earnings presentation, Aug 5, 2015
Slide 1: Second Quarter 2015 Financial Results
Second Quarter 2015 Financial Results Conference Call and Webcast August 5, 2015
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, EBITDA, cash flow, capital expenditures, expenses, operations at Palmarejo, approval
Slide 3: Second Quarter 2015 Highlights
Second Quarter 2015 Highlights Silver equivalent production increased 13% from 1Q – raised 2015 production guidance 2% Completed acquisition of Paramount Gold and Silver Corp and announced 89% Adding Higher-Quality increase in silver reserves and 76% increase in gold reserves at Palmarejo Produc
Slide 4: High-Quality Ounces Added to Production Pipeline
High-Quality Ounces Added to Production Pipeline 484.2 437.4 390.7 AgEq oz in millions 292.4 282.8 292.7 136.6 144.6 127.0 Year-end 2014 4/23/15 Independencia update 6/1/15 Wharf update P&P Reserves M&I Resources Inferred Resources Acquisitions of Paramount and Wharf Lead to a 24% Increase in Proven
Slide 5: Wharf LOM Plan Demonstrates High Expected Return
Wharf LOM Plan Demonstrates High Expected Return Attractive Economics Relative to $100M Acquisition Purchase Price LOM Total Tons placed (tons in thousands) 29,103 Grade (oz/ton) 0.027 Recovery rate 81% Production (oz in thousands) 632 Gold price $1,275 Revenue ($ in millions) $806 Operating cash fl
Slide 6: Three-year Company Outlook
Three-year Company Outlook AgEq Production Profile All-in Sustaining Costs1 50.0 25 40.0 – 45.0 $19.23 $17.00 - $18.00 40.0 33.1 – 35.9 35.0 – 37.0 20 $16.50 - $17.50 $ per AgEq ounce 32.2 $14.00 - $15.00 30.0 15 oz million 20.0 10 10.0 5 0.0 0 2014A 2015E 2016E 2017E 2014A 2015E 2016E 2017E Adjuste
Slide 7: Second Quarter 2015 Highlights
Second Quarter 2015 Highlights Quarter YOY in millions US$ 2Q 2015 1Q 2015 2Q 2014 Variance Variance Revenue $166.3 $153.0 9% $164.6 1% Costs applicable to sales 119.1 115.1 3% 118.7 0% Exploration expense 3.6 4.3 (16%) 5.2 (31%) General & administrative 8.5 8.8 (3%) 9.4 (10%) Adjusted EBITDA1 34.7
Slide 8: Second Quarter 2015 Highlights (continued)
Second Quarter 2015 Highlights (continued) Quarter YOY 2Q 2015 1Q 2015 2Q 2014 Variance Variance Average realized silver price per ounce $16.23 $16.77 (3%) $19.60 (17%) Average realized gold price per ounce $1,179 $1,204 (2%) $1,277 (8%) Silver ounces produced (millions) 4.3 3.8 11% 4.5 (4%) Gold ou
Slide 9: Significant Cost Reductions Achieved in 2Q
Significant Cost Reductions Achieved in 2Q 7% - 9% Decrease in Adj. CAS per AgEq oz1 Across All Mines Compared with 1Q 2015 $14.56 $14.47 $797 $13.21 $13.26 $ per AgEq oz $12.95 $ per gold oz $745 $12.01 Palmarejo Rochester San Bartolomé Kensington 1Q'15 2Q'15 Companywide Adj. Costs Applicable to Sa
Slide 10: Second Quarter 2015 Cash Flow Bridge
Second Quarter 2015 Cash Flow Bridge 350 $12.0 $39.0 $1.0 $9.2 300 $9.8 $100.0 $14.5 $16.6 250 $23.7 200 in millions $50.0 $205.9 $179.6 150 100 50 0 Cash balance Term loan Amortization Working Other Paramount Palmarejo Adjusted net Payments on Capital Repayment Cash balance 1 2 1 3/31/15 due 2020 c
Slide 11: Well-Capitalized with Financial Flexibility
Well-Capitalized with Financial Flexibility Debt maturity schedule Amount Maturity (millions) Liquidity $205.9 Net Debt = $341.8 Senior unsecured notes $426.2 2021 Convertible notes $0.7 2028 Term Loan B $94.7 2020 Debt $539.6 $8.1 San Bartolomé letter of credit $0.5 2017 San Bartolomé letter of cre
Slide 12: Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation
Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation $15.70 $14.43 $14.56 $27.4 $13.48 $13.21 $20.2 1.8 $ in millions 1.5 1.4 1.4 1.2 23,706 22,514 $10.9 $9.7 $10.7 $9.2 18,127 ounces 15,237 15,495 $5.6 $5.9 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 ($0.2) ($3.2) 2Q'14 3Q'14 4Q'14 1Q
Slide 13: Rochester: Lower Mining and Leaching Costs Drive Lower CAS per AgEq oz
Rochester: Lower Mining and Leaching Costs Drive Lower CAS per AgEq oz $15.73 $13.82 $14.78 $12.95 $12.01 $16.4 1.3 1.2 1.2 1.1 1.1 $ in millions 15,764 16,411 $10.2 $8.8 ounces 11,702 13,721 $8.2 9,230 $5.9 $4.3 $4.0 $4.2 $2.7 $3.3 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Adj CAS
Slide 14: Kensington: Strong Mill Throughput and Lower Diesel and Mining Costs
Kensington: Strong Mill Throughput and Lower Diesel and Mining Costs $792 $821 $889 $797 $745 $17.0 33,533 33,909 $12.3 $12.0 30,773 29,845 28,089 $ in millions ounces $4.1 $4.7 $4.0 $3.6 $3.9 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 ($0.6) ($3.7) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Adj. CAS per gold oz 1 Gold produ
Slide 15: Wharf: First Full Quarter of Operating Results Since Acquisition
Wharf: First Full Quarter of Operating Results Since Acquisition $970 16,794 $8.2 $ in millions ounces 6,609 $1.2 $0.1 1Q'15 1 2Q'15 ($7.2) 1Q'15 2Q'15 2 Adj. CAS per AuEq oz Gold Equivalent Production Cash flow from operating activities Capital expenditures 2Q 2015 1Q 2015 4Q 2014 3Q 2014 2Q 2014 O
Slide 16: San Bartolomé: Continued Stable Cost Performance
San Bartolomé: Continued Stable Cost Performance $13.85 $14.38 $14.47 $13.67 $13.26 $18.9 $ in millions 1.5 1.5 1.5 1.5 $12.3 1.2 ounces $5.4 $5.0 $2.8 $2.3 $2.0 $1.7 $0.9 $1.0 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Adj CAS per AgEq oz 1 Silver production (millions) Cash flow fr
Slide 17: 2015 Guidance Improved
2015 Guidance Improved Silver Production Gold Production 6,558 114,821 120,000 Ounces in thousands 5,852 5,400 4,450 4,850 4,189 86,673 76,000 Ounces 64,500 60,000 30,860 590 550 Palmarejo San Bartolomé Rochester Endeavor Kensington Palmarejo Rochester Wharf 2014 Actual 2015 Guidance Midpoint 1 2014
Slide 18: Anticipated Milestones and Upcoming News Flow
Anticipated Milestones and Upcoming News Flow 3Q 2015 4Q 2015 1Q 2016 Complete expanded crushing Underground Complete capacity and increased Stage III development reaches underground mining leach pad capacity at Rochester Independencia at legacy Palmarejo mine 3Q 2015 4Q 2015 1Q 2016 3Q 2015 3Q 2015
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Net Income (Loss) in thousands 2Q 2015 1Q 2015 4Q 2014 3Q 2014 2Q 2014 Net income (loss) ($16,677) ($33,287) ($1,079,038) $3,466 ($43,121) Fair value adjustments, net (2,618) 4,339 (5,622) (13,026) 6,498 Stock-based compensation 2,529 2,410 1
Slide 21: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands 2Q 2015 1Q 2015 4Q 2014 3Q 2014 2Q 2014 Net income (loss) ($16,677) ($33,287) ($1,079,038) $3,466 ($43,121) Interest expense, net of capitalized interest 10,734 10,765 10,566 11,615 12,311 Interest income and other, net 2,
Slide 22: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) LTM Adjusted EBITDA in thousands LTM 6/30/15 LTM 3/31/15 LTM 12/31/14 LTM 9/30/14 LTM 6/30/14 Net income (loss) ($1,125,536) ($1,151,980) ($1,155,884) ($658,374) ($708,105) Interest expense, net of capitalized interest 43,680 45,257 47,546 47,959 46,0
Slide 23: 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 Total Three months ended June 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs applicable to sales, including amortiz
Slide 24: 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 December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $6
Slide 25: 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 June 30, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $67,59
Slide 26: 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 2Q 2015 1Q 2015 4Q 2014 3Q 2014 2Q 2014 FY 2014 Costs applicable to sales, including amortization (U.S. GAAP) $164,125 $146,742 $163,679 $166,675 $159,036 $635,516 Amortization 45,028 31,680
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: Contact Information
Contact Information Corporate Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489-5800 Stock Tickers: CDE: NYSE Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: coeur.com Contact: Bridget Freas Donna Mirandola Director, Investor Relations Director