Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Technical Presentation (September 2019)
49 slides from Coeur Mining's technical presentation, Sep 19, 2019
Slide 1: Rochester Site Tour
Rochester Site Tour September 19, 2019 NYSE: CDE NYSE: CDE 1 JC 2016
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 production, costs, expenditures, the Rochester mine, including operations, exploration and development activities,
Slide 3: Agenda & Management Participants
Agenda & Management Participants Agenda Management Participants Time Event Corporate Team 6:30 a.m. 9:00 a.m. • Drive: Reno to Rochester Mitchell Krebs President and Chief Executive Officer • Site orientation 9:00 a.m. 9:30 a.m. Terry Smith • Safety overview Senior Vice President, Operations • Prese
Slide 4: Who We Are
Who We Are Based in the U.S., Coeur Mining (NYSE: CDE) is a significant producer of gold and silver, and has repositioned its portfolio with a focus on sustainable, high- quality growth and cash flow from a North American asset base Key Highlights 5 operating mines 3 top jurisdictions K ENSINGTON S
Slide 5: Corporate Strategy
Corporate Strategy Coeur’s strategy is to safely and responsibly discover, develop and operate a balanced portfolio of quality precious metals assets to maximize cash flow, returns and net asset value By Asset • Maintain a primary precious metals By Jurisdiction revenue mix and North American Balanc
Slide 6: Rochester Summary Highlights
Rochester Summary Highlights • Long-standing operation with proven track record of operational and financial results • Recently commissioned new three-stage crushing circuit, including high-pressure grinding roll (“HPGR”) unit – Completed on-budget with initial results on-track with original expec
Slide 7: Overview of Rochester
Overview of Rochester The Rochester mine and associated heap leach facilities is an open-pit silver and gold operation located in Pershing County, Nevada approximately 26 miles northeast of the city of Lovelock Regional Map & Claims Boundary Facts & Figures Ownership • Coeur Mining, Inc.1 / 100% Min
Slide 8: Rochester Background and History
Rochester Background and History 1909 • First shipments of silver ore from Nenzel Hill (location of the Rochester pit) 1983 • Coeur acquires title to Rochester from ASARCO (subsidiary of Grupo Mexico S.A. de C.V.) 1986 • Coeur begins open-pit mining of the current Rochester pit 1999 • Coeur becomes
Slide 9: Rochester Workforce & Commitment to Nevada
Rochester Workforce & Commitment to Nevada With Rochester being the largest primary silver mine in Nevada, Coeur strives to be the employer of choice and remains committed to working with its communities to develop a robust pipeline of future leaders Overview Fraser Institute: Investment Attractiven
Slide 10: Rochester Environmental, Social & Governance Profile
Rochester Environmental, Social & Governance Profile Coeur is committed to its purpose statement, We Pursue a Higher Standard, and strives to protect its people, places and planet by operating responsibly People • Recipient of multiple safety awards, most recently in 2019: − Third place in Nevada fo
Slide 11: Strong Commitment to Safety at Rochester
Strong Commitment to Safety at Rochester Rochester has showcased success in health and safety for decades, with safety performance on key metrics better than other mining industry peers Overview of Coeur’s Safety Culture Lost-Time Injury Frequency Rate Foster and enhance strong safety culture and
Slide 12: The Rochester Mining Process
The Rochester Mining Process NYSE: CDE 12 JC 2016
Slide 13: Rochester Mining Operations
Rochester Mining Operations Ore is mined using conventional open-pit methods where ore and waste rock are drilled, blasted, crushed, loaded and hauled to either leach pads or rock disposal sites Overview • Since 1986, mining has been by conventional open-pit drill and blast Drill and – In situ and s
Slide 14: Newly Commissioned Crushing System at Rochester
Newly Commissioned Crushing System at Rochester Rochester currently uses a newly enhanced, three-stage crushing circuit, incorporating HPGR technology that is designed to help accelerate the rate of silver recoveries and lower unit costs 1 2 3 Jaw Crusher MP800 Crusher HPGR Unit • 48” x 60” Pennsylv
Slide 15: Review of HPGR Technology
Review of HPGR Technology HPGR technology is relatively new to precious metals mining, although it has been proven in processing other materials. The implementation of HPGR at Rochester is expected to improve silver recoveries and lower operating costs HPGR Schematic1 Selected Commentary Feed • Feed
Slide 16: HPGR Microfracturing & Operation Data
HPGR Microfracturing & Operation Data Traditional Cone Crushing Rochester Expected Silver Recoveries1 • Silver particles encapsulated by silica leads to 66% 68% 63% “traditional” Rochester recovery 61% 54% 47% Silver particles 38% 43% 36% encapsulated by quartz 31% 20% 18% 16% 10% 13% 30 Days 60 Day
Slide 17: Overview of Rochester's Re-Scoped Mine Plan
Overview of Rochester’s Re-Scoped Mine Plan In early 2018, Coeur published a re-scoped mine plan and PEA for Rochester incorporating the positive economic impact expected from the addition of HPGR technology to the operation’s crushing circuit Highlights of Expected HPGR Impact 2017 TR 2018 PEA Δ •
Slide 18: Rochester Leach Pads, Process Plant & Refinery
Rochester Leach Pads, Process Plant & Refinery Material is placed on heap leach pads, and cyanide is used to leach silver and gold from mineralized ore. After leaching, silver and gold are extracted from the solution using the Merrill-Crowe zinc precipitation method and sold as doré bars Process Pla
Slide 19: Review of Rochester Operational Performance
Review of Rochester Operational Performance Operating results have been relatively consistent over the past few years; 2019 marks an important transition as Rochester began utilizing HPGR technology, which is expected to improve both operational and financial results Tons Placed Average Grade (M) (o
Slide 20: Review of Rochester Financial Performance
Review of Rochester Financial Performance Rochester has a long history of stable financial performance, exhibiting strong, positive operating cash flow and high-return capital expenditures leading to improved free cash flow1 Revenues Operating Cash Flow ($M) ($M) $152.7 $143.9 $139.9 $141.8 $123.8 6
Slide 21: Rochester POA 11 Expansion Overview
Rochester POA 11 Expansion Overview Detailed Map of Planned Expansion Proposed Action Items N • Expand existing Rochester and Packard pits W E • Relocate spent ore from the Stage I leach and S a portion of the Stage II leach pad to Stage V leach pad • Construct two new leach pads – Limerick Canyo
Slide 22: Rochester POA 11 Expansion Overview (cont.)
Rochester POA 11 Expansion Overview (cont.) NYSE: CDE 22 JC 2016
Slide 23: Rochester POA 11 Expansion Overview (cont.)
Rochester POA 11 Expansion Overview (cont.) 2018 E Stage IV Leach Pad Start X-Pit N S Expansion W incorporating HPGR Primary Crusher Secondary Crusher Existing 2019 Rochester Pit Commission X-Pit HPGR and advance POA 11 engineering Tertiary Crusher 2020 Start POA 11 Stage VI Leach Pad crushing plant
Slide 24: Overview of Rochester Geology
Overview of Rochester Geology Locally, the main ore bodies are controlled by brecciation and stockworks associated with low angle detachment faults where they intersect high angle normal faults within the favorable host volcanics Rochester Geologic Map Selected Commentary • The low- to intermediate-
Slide 25: Oblique Aerial View And Cross Section of Rochester
Oblique Aerial View And Cross Section of Rochester Oblique Aerial View Cross Section • Cross section A-A’ through the Rochester mine looking north depicting the lack of a well-defined silver supergene enrichment blanket • High grade zones occur at the intersections of faults and near the oxide-sulfi
Slide 26: Directional Drilling Conceptual Section at Rochester
Directional Drilling Conceptual Section at Rochester • In order to confirm a “true thickness” of mineralization in East Rochester, two directional holes are currently being drilled – Both holes are expected to be complete in September • This drilling represents the second core drill hole under the S
Slide 27: Lincoln Hill: Geologic Cross Section Overview
Lincoln Hill: Geologic Cross Section Overview Lincoln Hill mineralization is very similar to the deposit at Rochester, although hosted mainly in Rochester volcanics • Significant quartz-sericite-pyrite alteration, stockwork, silica flooding and brecciation has been mapped at Lincoln Hill • Oxidation
Slide 28: Total Magnetic Intensity at Rochester And Lincoln Hill
Total Magnetic Intensity at Rochester And Lincoln Hill • Rochester’s geologic team has compiled all available geophysical and geochemical data to evaluate the regional exploration potential in the new Lincoln Hill/Rochester claim blocks • Total magnetic intensity over the region maps a large area of
Slide 29: Rochester Reserve and Resource Summary
Rochester Reserve and Resource Summary Grade (oz/ton) Contained Metal (oz) Tons Silver Gold Silver Gold Proven 228,413,000 0.44 0.003 101,058,000 657,000 Probable 13,166,000 0.39 0.002 5,141,000 27,000 Proven + Probable 241,580,000 0.44 0.003 106,200,000 684,000 Measured 164,704,000 0.35 0.002 57,12
Slide 30: Rochester Business Improvement Initiatives
Rochester Business Improvement Initiatives Technology and Innovation • Terrain: high-precision drill GPS to improve blasting / fragmentation / costs • Split Camera: improved crushing particle size, improved quality control • Digitized logs and reporting: Historian, Go-Canvas, Alteryx, Tableau, Rajan
Slide 31: Appendix
Appendix NYSE: CDE 31 JC 2016
Slide 32: 2019 Guidance
2019 Guidance1 Production Outlook Gold (oz) Silver (K oz) Zinc (K lbs) Lead (K lbs) Palmarejo 95,000 – 105,000 6,500 – 7,200 - - Rochester 40,000 – 50,000 4,200 – 5,000 - - Kensington 117,000 – 130,000 - - - Wharf 82,000 – 87,000 - - - Silvertip - 1,500 – 2,500 25,000 – 40,000 20,000 – 35,000 Consol
Slide 33: Summary of Rochester PEA
Summary of Rochester PEA1 PEA Highlights 2017 TR 2018 PEA Re-scoped mine plan and PEA incorporate the • Proven and probable reserves Mineralized material tons K tons 244,804 anticipated economic benefit from: Mineralized material gold grade oz/t 0.003 Mineralized material silver grade oz/t 0.46 –
Slide 34: Notes to Rochester's Re-Scoped Mine Plan and PEA
Notes to Rochester’s Re-Scoped Mine Plan and PEA (a) 2018 PEA is effective December 31, 2017 and filed March 5, 2018, and the 2017 Technical Report is effective December 31, 2016. (b) Assumed metals prices for estimated Mineral Resources included in the 2018 Technical Report were $20.00 per ounce of
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 35 JC 2016
Slide 36: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Costs Applicable to Sales Guidance for 2019 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $196,310 $131,918 $154,285 $90,299 $156,4
Slide 37: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2018 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $180,832 $126,586 $141,872 $78,273
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2017 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Endeavor Total Costs applicable to sales, including amortization (U.S. GAAP) $219,920 $130,226 $152,118 $82,334 $
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2016 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Endeavor Total Costs applicable to sales, including amortization (U.S. GAAP) $117,418 $111,564 $131,517 $87,001 $
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2015 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Endeavor Total Costs applicable to sales, including amortization (U.S. GAAP) $170,899 $127,900 $147,880 $68,575 $
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited Year ended December 31, 2014 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Endeavor Total Costs applicable to sales, including amortization (U.S. GAAP) $256,706 $112,252 $148,961 $8,513 $526,433
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow, Rochester ($ thousands) 2018 2017 2016 2015 2014 Cash flow from operating activities $32,968 $32,328 $28,440 $32,115 $13,673 Capital Expenditures 9,919 40,874 16,446 25,330 11,898 Free cash flow $23,049 $(8,546) $11,994 $6,785 $1
Slide 43: Reserves and Resources
Reserves and Resources 2018 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) PROVEN RESERVES Palmarejo Mexico 1,283,000 0.084 4.97 108,000 6,376,000 Rochester Nevada, USA 228,413,000 0.003
Slide 44: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2018 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 604,000 0.086 4.77 52,000 2,880,000 Roches
Slide 45: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2018 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) INFERRED RESOURCES Palmarejo Mexico 5,875,000 0.065 4.36 384,000 25,609,000 Rochester Nevada, USA 235,062,000 0.0
Slide 46: 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 47: 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 b
Slide 48: Board of Directors (cont.)
Board of Directors (cont.) Jessica L. McDonald – Chair (former Interim CEO) of Canada Post Corporation, Chair of Trevali Mining Corporation and member of Board of Directors of Hydro One Limited. Ms. McDonald is also a Mentor at the Trudeau Foundation, was a visiting fellow at the Steyer-Taylor Cente
Slide 49: Contact Information
Contact Information Corporate Office Coeur Mining, Inc. 104 S. Michigan Ave., Suite 900 Chicago, IL 60603 Main Telephone +1 (312) 489-5800 Stock Ticker CDE: NYSE Website www.coeur.com Contact Paul DePartout Director, Investor Relations investors@coeur.com NYSE: CDE 49 JC 2016
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