Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Merger or Acquisition (October 2024)
51 slides from Coeur Mining's merger presentation, Oct 4, 2024
Slide 1: Coeur Announces Acquisition of SilverCrest
NYSE: CDE October 4, 2024 Coeur Announces Acquisition of SilverCrest
Slide 2: Cautionary Statements
Cautionary Statements NYSE: CDE NYSE: CDE NYSE: CDE 2 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 for each of Coeur and SilverCrest, grow
Slide 3: Today's Presenters
Today’s Presenters Mitchell J. Krebs Coeur – Chairman, President & Chief Executive Officer N. Eric Fier SilverCrest – Chief Executive Officer, Director Creating A Leading Global Silver Company NYSE: CDE NYSE: CDE NYSE: CDE 2
Slide 4: An Unrivaled Silver Investment Vehicle
An Unrivaled Silver Investment Vehicle Creates A Leading Global Silver Company Adds World-Class Las Chispas Operation to Coeur’s Portfolio Dramatically Accelerates Coeur’s Deleveraging Initiatives Significant & Immediate Addition to Rising Free Cash Flow The combined company is expected to generate
Slide 5: Transaction Overview
Transaction Overview NYSE: CDE NYSE: CDE (1) The Transaction requires minority shareholder approval by the SilverCrest shareholders pursuant to MI 61-101. NYSE: CDE 5 Transaction Coeur to acquire all outstanding common shares of SilverCrest by Plan of Arrangement (the “Transaction”) Transaction equi
Slide 6: Transaction Benefits for Shareholders
NYSE: CDE 6 NYSE: CDE NYSE: CDE Transaction Benefits for Shareholders • • Addition of a high grade, low cost, primarily silver producing underground mine Pro forma Coeur would be a leading global silver company, with 2025 production expected to be approximately 21 million ounces of silver and 432,
Slide 7: Pro Forma Coeur Portfolio Overview
NYSE: CDE 7 NYSE: CDE NYSE: CDE Pro Forma Coeur Portfolio Overview Source: FactSet, street research. 44% 56% 38% 62% Palmarejo Rochester Wharf Silvertip Kensington Corporate Office Las Chispas Operating Mine Development Project U.S. Mexico Silver Gold Split by Geography Together with Coeur’s growing
Slide 8: Las Chispas Overview
NYSE: CDE 8 NYSE: CDE NYSE: CDE Las Chispas Overview Source: SilverCrest disclosure. Note: M&I resources are exclusive of mineral reserves. See slides in appendix for additional information related to mineral reserves and resources. As of June 30, 2024. Free cash flow calculated as net cash provided
Slide 9: Las Chispas: Tier 1, High Grade, Silver Producing Mine
NYSE: CDE 9 NYSE: CDE NYSE: CDE $22.47 $16.49 $16.07 $15.93 $15.09 $13.64 $12.51 $12.11 $10.76 $7.73 54% 50% 46% 42% 38% 33% 32% 28% 2% 67% La Colorada Puna Fresnillo Saucito Palmarejo San Julian San Dimas CLG Greens Creek Las Chispas 712 539 407 366 502 442 588 444 192 270 965 574 867 784 380 350 6
Slide 10: Unlocking the Full Potential of Las Chispas
NYSE: CDE NYSE: CDE NYSE: CDE 10 Unlocking the Full Potential of Las Chispas Note: See slides in appendix for additional information related to mineral reserves and resources. (1) As of December 31, 2023. (2) On a gold equivalence basis. Gold equivalence assumes gold-to-silver, -lead, -zinc ratios o
Slide 11: Strong Exploration Potential at Las Chispas
NYSE: CDE NYSE: CDE NYSE: CDE 11 Strong Exploration Potential at Las Chispas • Favorable Geological Setting − Host rocks and structural setting provides scope for continuity of mineralization • Multiple High-Priority Exploration Targets at Las Chispas − Potential extensions of existing veins inclu
Slide 12: Pro Forma Coeur Significantly Enhanced Scale and Financial Capacity
NYSE: CDE NYSE: CDE NYSE: CDE 12 Primary Exchange NYSE NYSE - American / TSX NYSE Producing Asset(s) Rochester / Palmarejo / Wharf / Kensington Las Chispas Rochester / Las Chispas / Palmarejo / Wharf / Kensington Operating Jurisdictions U.S. / Mexico Mexico U.S. / Mexico 15 5 21 375 57 432 2025E EBI
Slide 13: Creating a Leading Global Silver Company
NYSE: CDE NYSE: CDE NYSE: CDE 13 35 36 13 13 9 21 18 18 15 9 8 6 10 5 PF Coeur First Majestic Hecla Coeur MAG Silver SilverCrest Creating a Leading Global Silver Company Source: Coeur disclosure, FactSet, Public disclosures, SilverCrest disclosure. Note: Companies with >30% silver revenue weighting
Slide 14: Peer Leading Cash Flow Profile
NYSE: CDE NYSE: CDE NYSE: CDE 14 2025E EBITDA1 ($M) Peer Leading Cash Flow Profile Source: FactSet, Street research. Note: Companies with >30% silver revenue weighting headquartered in U.S. or Canada. Note: Free cash flow calculated as operating cash flow less capital expenditures. Note: First Majes
Slide 15: Significant Re-Valuation Opportunity
NYSE: CDE NYSE: CDE NYSE: CDE 15 11.8x 8.3x 7.0x Hecla First Majestic Coeur 2.0x 1.3x 1.3x First Majestic Coeur Hecla $4,512 $4,117 $3,038 $2,827 PF Coeur Hecla First Majestic Coeur 55 35 36 45 21 18 18 15 PF Coeur First Majestic $361 $272 $251 $203 Hecla Significant Re-Valuation Opportunity P/2025E
Slide 16: Recent Coeur ESG Accomplishments
NYSE: CDE NYSE: CDE NYSE: CDE 16 Recent Coeur ESG Accomplishments (1) Source(s): U.S. Department of Labor Mine Safety and Health Administration (MSHA): Metal Operators Mine Safety and Health Statistics; Coeur average 0.17 injuries per 200,000 employee-hours worked vs. Industry average 1.31. (2) For
Slide 17: Key ESG Areas of Partnership For Las Chispas
NYSE: CDE NYSE: CDE NYSE: CDE 17 Key ESG Areas of Partnership For Las Chispas Advancing Solar Initiatives Potential to reduce costs and GHG 5 Year Water Infrastructure Plan Repair infrastructure – Protect Livelihoods Supporting Local Community Built Assay Lab Partnering with Over 60 Local Businesses
Slide 18: An Unrivaled Silver Investment Vehicle
NYSE: CDE NYSE: CDE NYSE: CDE 18 An Unrivaled Silver Investment Vehicle Silver equivalence assumes silver-to-gold ratio of 79.51:1. Based on analyst consensus for 2025. Free Cash Flow is a non-GAAP measure. Creates A Leading Global Silver Company Adds World-Class Las Chispas Operation to Coeur’s Por
Slide 19: Appendix
Appendix
Slide 20: Palmarejo
NYSE: CDE NYSE: CDE NYSE: CDE 20 53% 30% Palmarejo (1) As of December 31, 2023. (2) Guidance (or with respect to percentages, midpoint of guidance) as published by Coeur on August 7, 2024. (3) See slides in appendix for additional information related to mineral reserves and resources. 332,500 oz Gol
Slide 21: Palmarejo (cont.)
NYSE: CDE NYSE: CDE NYSE: CDE 21 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 UG tons mined 474,159 514,302 501,813 494,835 426,997 UG mining costs per UG ton mined $54 $52 $54 $58 $63 Processing costs per ton processed2 $31 $29 $27 $29 $29 G&A per ton processed3 $16 $13 $18 $15 $17 Palmarejo (cont.) (1)
Slide 22: Rochester
NYSE: CDE NYSE: CDE NYSE: CDE 22 48% 684 1,238 106.2 192.9 2018 2023 13% Rochester (1) As of December 31, 2023. (2) Guidance (or with respect to percentages, midpoint of guidance) as published by Coeur on August 7, 2024. (3) See slides in appendix for additional information related to mineral reserv
Slide 23: Rochester (cont.)
NYSE: CDE NYSE: CDE NYSE: CDE 23 Rochester (cont.) (1) See applicable non-GAAP reconciliation tables in the appendix to this presentation. (2) Excludes third-party refining charges. (3) Excludes management fee allocated from corporate. Production and Cost Performance Costs Per Ton ($) Operating Cash
Slide 24: Kensington
NYSE: CDE NYSE: CDE NYSE: CDE 24 30% Kensington (1) As of December 31, 2023. (2) Guidance (or with respect to percentages, midpoint of guidance) as published by Coeur on August 7, 2024. (3) See slides in appendix for additional information related to mineral reserves and resources. 552 411 2018 2023
Slide 25: Kensington (cont.)
NYSE: CDE NYSE: CDE NYSE: CDE 25 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Ore tons mined 152,035 166,122 197,456 157,382 181,982 Mining costs per ton mined $88 $70 $68 $76 $67 Processing costs per ton processed3 $57 $50 $50 $56 $51 G&A per ton processed4 $49 $48 $47 $51 $46 Kensington (cont.) (1) See
Slide 26: Wharf
NYSE: CDE NYSE: CDE NYSE: CDE 26 27% Wharf (1) As of December 31, 2023. (2) Guidance (or with respect to percentages, midpoint of guidance) as published by Coeur on August 7, 2024. (3) See slides in appendix for additional information related to mineral reserves and resources. Gold Reserves & Resour
Slide 27: Wharf (cont.)
NYSE: CDE NYSE: CDE NYSE: CDE 27 Wharf (cont.) (1) See applicable non-GAAP reconciliation tables in the appendix to this presentation. (2) Excludes third-party refining charges. (3) Excludes management fee allocated from corporate. Production and Cost Performance Costs Per Ton ($) 2Q 2023 3Q 2023 4Q
Slide 28: Silvertip
NYSE: CDE NYSE: CDE NYSE: CDE 28 Silvertip (1) As of December 31, 2023. (2) See slides in appendix for additional information related to mineral reserves and resources. The Silvertip exploration project is one of the highest-grade polymetallic projects in the world. The site is located in northern B
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 30: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $59,070 $45,225 $47,166 $20,181 $790 $172,432 Amortization
Slide 31: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $66,896 $33,632 $44,885 $26,808 $852 $173,073 Amort
Slide 32: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $230,018 $197,663 $178,564 $121,351 $4,018 $731,614
Slide 33: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $60,345 $85,155 $46,207 $34,150 $858 $226,715 Amort
Slide 34: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $57,083 $34,708 $45,180 $32,614 $919 $170,504 Amort
Slide 35: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $54,608 $29,717 $43,950 $29,634 $1,021 $158,930 Amo
Slide 36: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 ($ thousands) 2Q 2024 1Q 2024 4Q 2023 3Q 2023 Cash flow from operating activities $39,573 ($1,121) $36,096 $43,220 Sustaining capital expenditures (15,253) (10,229) (12,025) (9,836) Free cash flow $24,320 ($11,350) $24,071
Slide 37: 2023 Proven and Probable Mineral Reserves
2023 Proven and Probable Mineral Reserves NYSE: CDE NYSE: CDE NYSE: CDE 30 Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 4,203,000 0.060 4.21 252,000 17,698,000 Rochester Nevada, USA 465,919,000 0.002 0.38 1,135,000 177,472,000 K
Slide 38: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 2023 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 5,674,000
Slide 39: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 2023 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 4,207,000 0.091 4.50 381,000 18,933,000 Roch
Slide 40: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 Notes to 2023 Mineral Reserves: The Mineral Reserve estimates are current as of December 31, 2023 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 techni
Slide 41: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 Notes to 2023 Mineral Resources: Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2023, and are reported using definitions in SK1300 on a 100% ownership basis. Mineral Resource estima
Slide 42: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 Notes to 2023 Mineral Resources (cont.): Wilco Open Pit Mineral Resource estimates are reported using an equivalent gold cutoff of 0.20 ounces per ton assuming a silver to gold ratio of 60:1. Resources are reported in-situ and contained
Slide 43: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 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 6,376,00
Slide 44: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 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
Slide 45: Reserves and Resources (cont.)
Reserves and Resources (cont.) NYSE: CDE NYSE: CDE NYSE: CDE 30 2018 Inferred Mineral Resources Notes to 2018 mineral reserves and resources: Effective December 31, 2018. Assumed metal prices for Mineral Reserves were $17.00 per ounce of silver, $1,250 per ounce of gold, $1.25 per pound zinc, $1.00
Slide 46: SilverCrest Reserves and Resources
SilverCrest Reserves and Resources NYSE: CDE NYSE: CDE (16) For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Technical R
Slide 47: SilverCrest Reserves and Resources (cont.)
SilverCrest Reserves and Resources (cont.) NYSE: CDE NYSE: CDE (10) For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Tec
Slide 48: SilverCrest Reserves and Resources (cont.)
SilverCrest Reserves and Resources (cont.) NYSE: CDE NYSE: CDE should refer to the NI 43-101 Technical Reports for Coeur's properties on file at www.sedarplus.ca. Note: Historic SilverCrest Reserves and Resources are not compliant to current SK-1300 regulations. Coeur has not done sufficient work to
Slide 49: SilverCrest Reserves and Resources (cont.)
SilverCrest Reserves and Resources (cont.) NYSE: CDE NYSE: CDE should refer to the NI 43-101 Technical Reports for Coeur's properties on file at www.sedarplus.ca. Note: Historic SilverCrest Reserves and Resources are not compliant to current SK-1300 regulations. Coeur has not done sufficient work to
Slide 50: No Offer or Solicitation
No Offer or Solicitation Communications in the news release do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed Transaction or otherwise, nor shall there be any sale, issuance
Slide 51: Contact Information
Contact Information Corporate Office Coeur Mining, Inc. 200 S. Wacker Dr., Suite 2100 Chicago, IL 60606 Main Telephone +1 (312) 489-5800 Stock Ticker NYSE: CDE Website www.coeur.com Contact Jeff Wilhoit Senior Director, Investor Relations investors@coeur.com Corporate Office SilverCrest Metals Inc.