Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Gold Forum Americas 2022
64 slides from Coeur Mining's conference presentation, Sep 19, 2022
Slide 1: Gold Forum Americas Presentation
Gold Forum Americas Presentation September 2022 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 involving strategic priorities and company strategies, expectations regarding environmental, social and governance (“ESG”) in
Slide 3: Company Overview
Company Overview Headquartered in Chicago, IL, Coeur Mining (NYSE: CDE) is a well-diversified, growing precious metals producer with a focus on generating sustainable, high-quality cash flow from its North American asset base Quality Stable Cash Flow & Returns Committed Best-in-class operations & pr
Slide 4: Key Messages
Key Messages Long-Term Positioning for long-term growth and strong returns from its portfolio of Growth North American assets, starting with an anticipated step change in cash Focus flow post-Rochester expansion Transformational Near-term, high-impact organic growth driven by the expansion of the Ex
Slide 5: Balanced, North American Precious Metals Portfolio
Balanced, North American Precious Metals Portfolio Metal Sales 2010 2021 12% Palmarejo 20% Rochester 38% Kensington Asset $516M 45% $833M Wharf 28% San Bartolomé 26% Other1 5% 16% 10% 15% U.S. Mexico 45% Bolivia Geography Australia 28% 62% Argentina 2% 38% 10% Ov er $466 m i llion o f U . S. N e t O
Slide 6: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 2Q 2022 1Q 2022 QoQ ∆ 2Q 2021 YoY ∆ Metal Sales Gold ounces sold (oz) 84,786 75,211 13% 88,501 (4%) Silver ounces sold (M oz) 2.5 2.5 4% 2.6 (2%) Key Financials Revenue $204.1 $188.4 8% $214.9 (5%) 1 Exploration inv
Slide 7: Inflationary Cost Pressures
Inflationary Cost Pressures Consistent with macro pressures and industry trends, Coeur continued to experience inflationary pressures on key consumable costs during the second quarter Diesel Cost Per Gallon/% of CAS1 Cyanide Cost Per Pound/% of CAS1 +45% $1.32 +74% $4.55 $1.24 $3.62 $1.02 $1.05 $3.1
Slide 8: Rochester Expansion to Drive Step Change
Rochester Expansion to Drive Step Change1 The expansion of Rochester is expected to be completed in mid-2023 and drive a step change in Coeur’s production, cash flow, and costs and result in one of the world’s largest primary silver mines Project Hallmarks Capital Overview5 $348 million NAV 5% +2x i
Slide 9: Rochester Expansion to Drive Step Change (cont.)
Rochester Expansion to Drive Step Change (cont.) Significantly higher throughput is expected to materially drive down costs and lead to strong cash flow over a long mine life. Recent installation of pre-screens on the existing crusher is driving improved product size distribution, which is expected
Slide 10: Rochester: Expansion Construction Update
Rochester: Expansion Construction Update1 Major construction for the expansion of Rochester continues to advance with solid ongoing environmental and safety performance Stage VI Heap Leach Pad Merrill-Crowe Processing Facility Contingency Ponds Electrical Substation (1) For additional information on
Slide 11: Rochester: Expansion Construction Update (cont.)
Rochester: Expansion Construction Update (cont.)1 Crusher corridor area Primary Crusher Coarse Ore Stage IV Heap Leach Pad Stockpile Secondary Crusher Secondary Ore Stockpile Prescreen Cut Tertiary Crusher Final Product Stockpile Truck Loadout (1) For additional information on the expansion of Roche
Slide 12: Bolstered Balance Sheet Flexibility to Support Near-Term Growth
Bolstered Balance Sheet Flexibility to Support Near-Term Growth Liquidity Profile1 ($M) $59 $578 $150 $509 $10 $390 $40 ($31) $74 $319 $245 ($115) Crown/Sterling Total Adj. Investments of Credit Revolver Victoria Gold Accordion Equivalents Total Potential Borrowings Liquidity Availability Capacity L
Slide 13: Sale of Southern Nevada Exploration Properties
Sale of Southern Nevada Exploration Properties The Company has announced the sale of its Southern Nevada exploration properties (Crown and Sterling) to a subsidiary of AngloGold Ashanti for $150 million in cash at closing and $50 million of future potential consideration; closing expected early in t
Slide 14: Sustaining a Higher Level of Exploration Investment
Sustaining a Higher Level of Exploration Investment The Company increased its full-year 2022 exploration guidance to $47 - $57 million1. The increase in exploration investment reflects additional planned expansion and infill drilling at Silvertip, Palmarejo and Kensington Total Exploration Investmen
Slide 15: Rochester Exploration Opportunities
Rochester Exploration Opportunities Coeur’s total land package at Rochester comprises a highly prospective exploration district in the heart of one of the world’s top mining jurisdictions1. The Company believes investing in these opportunities will drive long-term value for stockholders 2H 2022 Prio
Slide 16: Recent ESG Accomplishments
Recent ESG Accomplishments Coeur is committed to being an industry leader in its ESG practices, exemplified by the Company’s recent accomplishments Published GHG emissions Mitch Krebs, President & target of 35% reduction in Conducted below 2°C ISS QualityScore of ‘‘1’’ for CEO, served as Chair of Go
Slide 17: Looking Ahead: Key Deliverables for 2022
Looking Ahead: Key Deliverables for 2022 • Continue to bolster Coeur’s best-in-class ESG initiatives • Remain on-track with POA 11 expansion project • Continue incorporating operational and technical enhancements at Rochester into POA 11 • Deliver consistent operating and financial results acros
Slide 18: 2022 Guidance
2022 Guidance1 Production Outlook Gold (oz) Silver (K oz) Palmarejo 100,000 – 110,000 6,000 – 7,000 Rochester 35,000 – 43,000 3,000 – 4,000 Kensington 110,000 – 120,000 - Wharf 70,000 – 80,000 - Consolidated 315,000 – 353,000 9,000 – 11,000 CAS Outlook2 Previous3 Updated Gold ($/oz) Silver ($/oz) Go
Slide 19: ESG Highlights
ESG Highlights NYSE: CDE 19 JC 2016
Slide 20: What Matters to Coeur
What Matters to Coeur Coeur strives to be an industry leader in ESG, integrating factors into each aspect of its operations, activities and strategic decision making as the Company looks to the future. The following list includes material environmental, social and governance issues that matter to Co
Slide 21: ESG Goals and Targets
ESG Goals and Targets Environment: Lessen Coeur’s overall environmental impact and reduce costs over time •GHG emissions: 35% reduction in net intensity by end of 2024 compared to base-year (increase targeted reduction from 25% by 2025) •Permit discharge exceedances: Sustain low incident frequency
Slide 22: Committing to a Higher GHG Reduction Target
Committing to a Higher GHG Reduction Target Several changes to Coeur’s emissions projections are expected to result in a greater reduction in net intensity in 2024 relative to the Company’s 2021 projection. Moving forward, a portion of Coeur’s 2022 long-term incentive program is tied to the achievem
Slide 23: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has been certified in the National Mining Association’s CORESafety program since 2017 and completed its recertification in July 2021 Coeur’s injury frequency rates remain significantly below industry averages and are currently at all-time lows Lost-Time Inju
Slide 24: Precious Metals Are Coeur to Everyday Life
Precious Metals Are Coeur to Everyday Life Coeur is an important part of the supply chains for gold and silver. Due to their unique properties, gold and silver have numerous innovative uses that shape the way we live today and enable a more sustainable, healthier tomorrow Au Coeur’s Palmarejo, Roche
Slide 25: Appendix
Appendix NYSE: CDE 25 JC 2016
Slide 26: Coeur's Capital Allocation Framework
Coeur’s Capital Allocation Framework Mining is capital intensive and requires a disciplined approach to capital allocation with a view toward long-term reserve replacement and growth Illustrative Return Key Benefits Key Considerations Safety/ Reflects the Company’s values Environment/ − Mitigate
Slide 27: Palmarejo
Palmarejo The Palmarejo gold-silver complex is located in the state of Chihuahua, Mexico, consisting of a legacy open pit mine, current underground mining and processing operations as well as several other deposits and exploration targets Asset Overview Share of Companywide 2022E2 Production Ownersh
Slide 28: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $13.34 $12.97 $12.50 $12.43 Capital expenditures $11.25 $855 $33.4 $34.3 $730 $32.9 $704 $662 $653 $23.2 $22.3 1,843 28 1,667 1,708 29 29 1,813 1,795 27 $13.6 24 $9.8 $10.1 $8.5 $8
Slide 29: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which is currently undergoing a significant expansion that is expected to drive a step-change in production and cash flow Asset Overview Share of Companywide 2022E2 Production Ownership 100% Go
Slide 30: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $1,787 $1,763 Operating cash flow $53.9 $1,707 $1,720 $1,665 Capital expenditures $47.0 $26.09 $42.3 $40.1 $22.68 $22.06 $33.1 $21.76 $20.85 $4.0 888 739 757 689 655 7 8 6 7 6 ($9.1) ($9.5) ($12.3) ($
Slide 31: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2022E2 Production Ownership 100% Gold Em
Slide 32: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow2 $1,610 Capital expenditures $1,399 $1,150 $1,111 $1,088 $21.0 $19.4 34 28 29 28 23 $11.5 $10.8 $8.8 $8.0 $7.9 $6.0 $6.3 $0.8 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 2Q 2021 3Q 20
Slide 33: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2022E2 Production Ownership 100% Gold Employees1
Slide 34: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,233 Capital expenditures $1,118 $24.9 $1,104 $963 $971 $17.3 28 24 20 20 $10.3 18 $8.4 $5.5 $4.2 $1.4 $1.0 $1.4 $0.5 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 2Q 2021 3Q 2021 4Q 2021
Slide 35: Silvertip
Silvertip The Silvertip development project was acquired by the Company in late 2017 and is one of the highest-grade silver-zinc-lead operations in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package. Asset Overview Ownership 100% Emp
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 36 JC 2016
Slide 37: Non-GAAP to U.S. GAAP Reconciliation for Updated Guidance
Non-GAAP to U.S. GAAP Reconciliation for Updated Guidance Unaudited Costs Applicable to Sales Guidance for 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $219,862 $165,031 $191,055 $109,1
Slide 38: Non-GAAP to U.S. GAAP Reconciliation for Previous Guidance
Non-GAAP to U.S. GAAP Reconciliation for Previous Guidance Unaudited Costs Applicable to Sales Guidance for 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $211,800 $148,540 $185,494 $106,
Slide 39: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended June 30, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $58,800 $42,914 $48,680 $26
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $52,611 $36,985 $4
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $189,717 $151,
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $48,719 $42,939
Slide 43: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $47,763 $36,34
Slide 44: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $50,189 $44,537 $41
Slide 45: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 2Q 2022 1Q 2022 2021 4Q 2021 3Q 2021 2Q 2021 Net income (loss) ($77,434) $7,682 ($31,322) ($10,760) ($54,768) $32,146 Fair value adjustments, net 62,811 (10,605) 543 7,543 26,440 (37,239) Inventory write-
Slide 46: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 2Q 2022 1Q 2022 2021 4Q 2021 3Q 2021 2Q 2021 Net income (loss) ($77,434) $7,682 ($31,322) ($10,760) ($54,768) $32,146 Interest expense, net of capitalized interest 5,170 4,568 16,451 3,211 3,237 5,093 Income tax pro
Slide 47: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 Net income (loss) ($135,280) ($25,700) ($31,322) ($8,682) $72,942 Interest expense, net of capitalized interest 16,186 16,109 16,451 17,959 19,818 Income tax provision (be
Slide 48: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 2Q 2022 1Q 2022 2021 4Q 2021 3Q 2021 2Q 2021 Cash flow from operating activities $22,644 ($6,427) $110,482 $34,936 $21,846 $58,059 Capital expenditures (73,156) (69,502) (309,781) (100,868) (71,266) (78,223) Free cas
Slide 49: Reserves and Resources
Reserves and Resources 2021 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 3,754,000 0.066 4.39 247,000 16,480,000 Rochester Nevada, USA 386,008,000 0.00
Slide 50: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 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 3,696,000 0.053 3.89 195,000 14,373,000 Ro
Slide 51: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 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 4,713,000 0.052 3.70 246,000 17,453,000 Rochester Nevada, USA 128,410,000 0.0
Slide 52: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Reserves: (1) The Mineral Reserve estimates are current as of December 31, 2021 and are reported using the definitions in Item 1300 of Regulation S–K (17 CFR Part 229) (SK1300) and were prepared by the company’s technical staff. (2) Assumed metal
Slide 53: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Resources: (1) Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2021, and are reported using definitions in SK1300 on a 100% ownership basis. Mineral Resource estimates were prepared by the Comp
Slide 54: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Resources (cont.): (9) Lincoln Hill Open Pit Mineral Resource estimate is reported in-situ and are contained within a confining pit shell and use the following key input parameters: reported above an oxide gold equivalent cutoff of 0.15 ounces per
Slide 55: Reserves and Resources
Reserves and Resources 2020 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 4,040,000 0.067 4.29 270,000 17,344,000 Rochester Nevada, USA 396,867,000 0.00
Slide 56: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 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 1,840,000 0.052 3.67 95,000 6,746,000 Roch
Slide 57: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 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 4,345,000 0.064 3.34 280,000 14,525,000 Rochester Nevada, USA 226,049,000 0.0
Slide 58: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 1,569,000 0.080 4.44 126,000 6,971,000 Rochester Nevada, USA 143,686,000 0.004 0.48 503,000 68,369,000 Kensing
Slide 59: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) MEASURED RESOURCES Palmarejo Mexico 818,000 0.061 3.20 50,000 2,618,000 Rochester Nevada, USA 39,732,000 0.003 0.59 13
Slide 60: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) INFERRED RESOURCES Palmarejo Mexico 4,726,000 0.055 4.35 258,000 20,540,000 Rochester Nevada, USA 67,778,000 0.003 0.52 178,000 35,554,000 Kensington Ala
Slide 61: 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 62: Board of Directors
Board of Directors Robert E. Mellor – Independent Chairman of the board of Monro, Inc. (auto service provider) since June 2017, and appointed Interim Chief Executive Officer from August 2020 to April 2021. Previously Mr. Mellor was lead independent director from April 2011 to June 2017 and a member
Slide 63: Board of Directors (cont.)
Board of Directors (cont.) Eduardo Luna – Chairman of the Board of Rochester Resources Ltd., Mr. Luna has spent over forty years in the precious metals mining industry and has held prior senior executive and board positions at several companies including Industrial Peñoles, Goldcorp Inc., Luismin SA
Slide 64: 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 NYSE: CDE Website www.coeur.com Contact Jeff Wilhoit Director, Investor Relations investors@coeur.com NYSE: CDE 64 JC 2016