Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Raymond James Institutional Investor Conference (March 2015)
44 slides from Coeur Mining's conference presentation, Mar 4, 2015
Slide 1: Raymond James Institutional Investor Conference
Raymond James Institutional Investor Conference Peter C. Mitchell, Senior Vice President & Chief Financial Officer March 4, 2015 Orlando, Florida
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 high- return organic and external growth opportunities, free cash flow, cash conservation, the capacity
Slide 3: Cautionary Statements
Cautionary Statements Non-U.S. GAAP Measures - We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including adjusted EBITDA, adjusted net income (loss), costs appl
Slide 4: Who We Are
Who We Are One of world’s largest silver mining companies with diversified portfolio of five mines in three countries Approximately half of sales derived from gold production Provides superior leverage to both precious metals – share price has increased approximately 20% YTD1 Deploying capit
Slide 5: Coeur's Transition Well Underway
Coeur’s Transition Well Underway Coeur is now positioned to deliver near-term, quality growth in production and free cash flow with costs expected to drop to among the lowest in the industry in 2017 Coeur Coeur 2014 2017 Silver Equivalent Production (millions of ounces) 32 40 - 45 Gold Equivalent Pr
Slide 6: Three-year Company Outlook
Three-year Company Outlook AgEq Production Profile All-in Sustaining Costs 50.0 40.0 – 45.0 $25.00 40.0 32.4 – 35.4 32.0 – 35.0 $20.00 $17.50 - $18.50 $17.00 - $18.00 $ per AgEq ounce $14.00 - $15.00 oz million 30.0 $15.00 20.0 $10.00 10.0 $5.00 0.0 $0.00 2015E 2016E 2017E 2015E 2016E 2017E Operatin
Slide 7: Recent Evidence of Company's Execution of Strategy
Recent Evidence of Company’s Execution of Strategy 2014 production of 32.2 million AgEq ounces, at high end of guidance Achieved significant cost savings YOY including a 26% reduction in G&A, 36% lower capital expenditures, 10% decline in exploration spending, and costs applicable to sales 8% below
Slide 8: Achieved Significant Cost Savings in 2014
Achieved Significant Cost Savings in 2014 10% 26% reduction reduction Reduced Reduced Exploration G&A $3M $14M (2014 vs 2013) (2014 vs 2013) Reduced Reduced CAS Capex $39M $37M (2014 vs initial FY (2014 vs 2013) Guidance) 8% 36% reduction reduction $93 million in total cost reductions in 2014 NYSE:
Slide 9: 2014 Production Results
2014 Production Results Silver Gold Silver Equivalent Silver ounces in thousands 2014 Guidance 2014 Result 2014 Guidance 2014 Result 2014 Guidance 2014 Result Palmarejo 6,700 - 7,000 6,558 84,000 - 90,000 86,673 11,740 - 12,400 11,758 San Bartolomé 5,700 - 6,000 5,852 — — 5,700 - 6,000 5,852 Rochest
Slide 10: Well-Capitalized with Financial Flexibility
Well-Capitalized with Financial Flexibility Debt Maturity Schedule Amount Maturity Liquidity $270.9 (millions) Net Debt = $207.5 Senior unsecured notes $437.5 2021 Convertible notes $5.3 2028 Debt $460.9 $17.5 San Bartolomé letter of credit $10.3 2017 San Bartolomé letter of credit $4.5 2015 $0 $100
Slide 11: Proposed Acquisition of Paramount: What Did We Do?
Proposed Acquisition of Paramount: What Did We Do? On December 16, 2014, Coeur entered into an agreement to acquire Paramount Gold & Silver Corp. by issuing approximately 32.7M shares of Coeur and Paramount stockholders receiving shares in “SpinCo”, in an all-stock transaction valued at $146 milli
Slide 12: Proposed Acquisition of Paramount: What Does it Do for Coeur?
Proposed Acquisition of Paramount: What Does it Do for Coeur? Merger expected to provide synergies between Palmarejo and San Miguel development (capex, operating costs, workforce, equipment, Chihuahua administration) Removes need to develop stand-alone processing plant at San Miguel by processin
Slide 13: Acquisition of Wharf: What Did We Do?
Acquisition of Wharf: What Did We Do? On February 20, 2015, Coeur closed the acquisition of the Wharf gold mine located near Lead, South Dakota from a subsidiary of Goldcorp, Inc. All cash transaction with a purchase price of $105 million Open-pit, heap leach gold mine which has produced more
Slide 14: Acquisition of Wharf: What Does it Do for Coeur?
Acquisition of Wharf: What Does it Do for Coeur? Immediate Boost to ▪ Expected to increase Coeur’s 2015 EBITDA by over 30% and boost free cash flow Cash Flow and ▪ Expected to increase Coeur’s 2015 AgEq production by approximately 15% Production ▪ Provides opportunity to take advantage of existing U
Slide 15: Contribution by Jurisdiction
Contribution by Jurisdiction 2014 AgEq Production 2017E AgEq Production 2% 12% 1% • Production from U.S. 18% operations expected to exceed 50% by 2017 43% 51% 36% • Bolivia production 37% contribution drops significantly by 2017 2014 FCF 2017E FCF 6% 4%1% • Significant increase 16% expected in U.S.-
Slide 16: Near-Term Items to Watch
Near-Term Items to Watch…… Re-scoped mine plan at Kensington in April 2015 Reserve and mineralized material estimate and 43-101 TR for Wharf in 1H 2015 Production growth at Rochester and progress of POA 10 expansion Ramp up at Guadalupe and transition of Palmarejo Closing acquisition of Paramount in
Slide 17: Appendix
Appendix
Slide 18: Footnotes for 2015 – 2017 Company Outlook
Footnotes for 2015 – 2017 Company Outlook 1. Gold and silver equivalence assumes a silver to gold ratio of 60:1. 2. 2014 FCF based on actuals and $1,252/oz gold and $18.87/oz silver; 2017 FCF based on $1,225/oz gold and $17.50/oz silver. Free cash flow is defined as cash flow from operating activiti
Slide 19: Footnotes for 2015 – 2017 Company Outlook
Footnotes for 2015 – 2017 Company Outlook 1. Gold and silver equivalence assumes a silver to gold ratio of 60:1. 2. 2014 FCF based on actuals and $1,252/oz gold and $18.87/oz silver; 2017 FCF based on $1,225/oz gold and $17.50/oz silver. Free cash flow is defined as cash flow from operating activiti
Slide 20: 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 Ticker: Exchange CDE: NYSE 2014: 117,823 oz Au Wharf Mine, South Dakota3 Shares Outstanding1 103.3M 2015E: 110,000 - 115,000 oz Au 2015E: 74,000 – 78,000 oz Au Avg. Daily Volume1 $21.5M 52-week Low – High1 $3.37
Slide 21: Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation
Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation 4Q 2014 Highlights Adjusted CAS per AgEq oz1 was $15.70 in 4Q 2014, 9% higher than 3Q 2014 due to a decline in grade and recovery rates Modifications in the processing facility expected to result in improved recover
Slide 22: Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation
Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation $15.70 $13.48 $14.43 $12.43 $13.13 $11.95 $10.28 $9.74 2.0 1.9 2.0 1.8 1.8 1.6 35,486 1.5 28,191 29,893 1.4 ounces 25,216 22,965 23,706 22,514 15,237 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 Gold production Silve
Slide 23: Rochester: Mining Costs per Ton Declined 30% in 2014
Rochester: Mining Costs per Ton Declined 30% in 2014 4Q 2014 Highlights Silver equivalent production increased 14% from 3Q 2014 CAS per AgEq oz1 were $14.27, down 4% from 3Q 2014 Costs per ton continue to trend lower Free cash flow2 of $7.5 million in 4Q was the highest level since 2012 Cr
Slide 24: Rochester: Higher Silver and Gold Production Drove Highest Cash Flow in Two Years
Rochester: Higher Silver and Gold Production Drove Highest Cash Flow in Two Years $15.83 $16.63 $14.80 $12.67 $15.79 $14.95 $14.27 $15.15 1,112 1,156 1,170 15,764 844 11,702 9,404 9,230 648 8,742 712 750 8,192 ounces 595 7,890 4,824 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1 Gold production S
Slide 25: Kensington: Robust Head-Grade and Strong Throughput Propels Improved Cost Performance
Kensington: Robust Head-Grade and Strong Throughput Propels Improved Cost Performance 4Q 2014 Highlights Gold production of 33,533 ounces, 9% higher than 3Q 2014 CAS per gold ounce1 of $845, down 10% from 3Q 2014 as a result of strong throughput combined with robust grade and recovery performanc
Slide 26: Kensington: Robust Head-Grade and Strong Throughput Propels Improved Cost Performance
Kensington: Robust Head-Grade and Strong Throughput Propels Improved Cost Performance $1,227 $894 $1,008 $900 $1,005 $937 $845 $677 36,469 33,533 30,773 28,323 28,089 25,206 25,428 22,583 ounces 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1 Gold production Costs applicable to sales per gold oz $
Slide 27: San Bartolomé: Stable Production and Cost Performance
San Bartolomé: Stable Production and Cost Performance 4Q 2014 Highlights Silver production, grades, recovery rates, and costs remain relatively stable Unit Costs FY 2014 4Q 2014 3Q 2014 2Q 2014 1Q 2014 FY 2013 Ore tons mined 2,591,181 756,197 745,592 863,879 585,513 2,921,947 Mining costs per ton
Slide 28: San Bartolomé: Stable Production and Cost Performance
San Bartolomé: Stable Production and Cost Performance $15.26 $14.91 $13.91 $13.93 $13.85 $14.22 $13.41 $14.14 $13.25 1.4 1.5 1.5 1.5 1.4 1.5 1.5 1.5 ounces 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 Silver production (millions) Costs applicable to sales per silver equivalent oz 1 $32.8 $ in mil
Slide 29: 2015 Guidance
2015 Guidance Silver Production Gold Production 6,558 114,821 5,852 5,950 112,500 Ounces in thousands 4,850 4,100 4,189 86,673 76,000 Ounces 60,000 60,000 30,860 590 500 Palmarejo San Bartolomé Rochester Endeavor Kensington Palmarejo Rochester Wharf 2 1 1 2014 Actual 2015 Guidance Midpoint 2014 Actu
Slide 30: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands LTM 12/31/14 LTM 9/30/14 LTM 6/30/14 LTM 3/31/14 LTM 12/31/13 Net income (loss) ($1,155,884) ($658,374) ($708,105) ($700,024) ($650,563) Interest expense, net of capitalized interest 47,546 47,959 46,006 44,625 41,303 Inte
Slide 31: 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 Year-ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $256,707 $
Slide 32: 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 September 30, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $
Slide 33: 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 34: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (dollars 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 (U.S. GAAP) $100
Slide 35: 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, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $55,5
Slide 36: 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 FY 2014 4Q 2014 3Q 2014 2Q 2014 1Q 2014 FY 2013 Costs applicable to sales, including amortization (U.S. GAAP) $635,516 $163,679 $166,675 $159,036 $146,125 $691,696 Amortization 157,571 37,227
Slide 37: External Growth - Strategic Investments
External Growth - Strategic Investments Apogee Silver (Cachinal project, Chile; 6.4% ownership interest): Completed sale of Bolivia assets to Prophecy Coal Corp. for $3.9M, including $250,000 cash and 60 million Prophecy common shares Caracara Silver (Princesa project, Peru; 3.2% ownership int
Slide 38: Coeur's Mineral Reserves
Coeur’s Mineral Reserves Grade (oz/ton) Year-end 2014 Location Short tons Silver Gold Proven Reserves Rochester Nevada, USA 89,077,000 0.56 0.004 San Bartolomé Bolivia 1,206,000 2.73 - Kensington Alaska, USA 417,000 - 0.187 Endeavor Australia 1,323,000 1.82 - Palmarejo Mexico 1,089,000 3.37 0.042 La
Slide 39: Coeur's Measured and Indicated Mineralized Material
Coeur’s Measured and Indicated Mineralized Material (Excluding Reserves) Grade (oz/ton) Year-end 2014 Location Short tons Silver Gold Measured Mineralized Material Rochester Nevada, USA 72,228,000 0.45 0.003 Martha Argentina - - - San Bartolomé Bolivia - - - Kensington Alaska, USA 181,000 - 0.260 En
Slide 40: Notes to Coeur's Mineral Reserves and Mineralized Material
Notes to Coeur’s Mineral Reserves and Mineralized Material Notes to the mineral reserves and mineralized material: 1. Effective December 31, 2014 except Endeavor effective June 30, 2014. 2. Assumed metal prices for estimated mineral reserves were $19.00 per ounce of silver and $1,275 per ounce of go
Slide 41: Wharf's Historical Mineral Reserves and Mineralized Material
Wharf’s Historical Mineral Reserves and Mineralized Material Tons Grade (oz/t) (000s) Gold Silver Proven and Probable Reserves Proven Reserves 15,179 0.022 0.078 Probable Reserves 8,245 0.026 0.108 Total Proven and Probable Reserves 23,424 0.024 0.089 Measured and Indicated Mineralized Material Meas
Slide 42: 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 43: 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 44: 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
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