Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Denver Gold Forum 2015
33 slides from Coeur Mining's conference presentation, Sep 21, 2015
Slide 1: Denver Gold Forum
Denver Gold Forum Mitchell J. Krebs, President, Chief Executive Officer, and Director Denver, Colorado September 21 – 23, 2015 Presentation: Monday, September 21 at 10:20 am local time, Centennial E
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 repositioning, cash flow, returns, production, costs, crushing and mining rates, mine plans, grades, ma
Slide 3: Investment Considerations
Investment Considerations Well‐advanced repositioning Diversified which may not be portfolio of silver fully appreciated and gold assets Executing strategy to reduce costs, in improve returns, the market and drive significant future free cash flow Delivering on Significant free cash strategy to redu
Slide 4: Coeur and the Chicago Cubs: an Analogous Pair
Coeur and the Chicago Cubs: an Analogous Pair Long‐established team: 1903 Long‐established company: 1928 2009: Ricketts family buys Chicago Cubs 2011: Krebs becomes President & CEO 2010‐2014: Rebuilding process 2012‐2014: Refreshed BOD; significant underway for long‐term talent upgrades to senior le
Slide 5: Innings 1-6: Loading the Bases
Innings 1‐6: Loading the Bases Allocating capital to Developing strengthen portfolio and the Strategy create value irrespective of metals prices DeliveringRevamped Laying the Reconstituted Resultsorganizational Groundwork Board of structure Directors Reducing costs, Significant upgrades improving qu
Slide 6: 7th Inning Stretch - Coeur's Repositioning is Significant and Well Underway
7th Inning Stretch ‐ Coeur’s Repositioning is Significant and Well Underway W COEUR 2014 COEUR 2017 SILVER EQUIVALENT PRODUCTION 32 40 ‐ 45 (MILLIONS OF OUNCES) GOLD EQUIVALENT PRODUCTION 533 670 ‐ 750 (THOUSANDS OF OUNCES) FREE CASH FLOW1 ($67) $110 ‐ $120 (IN MILLIONS) AISC PER AGEQ OUNCE1 $19 $14
Slide 7: The Path Ahead: Complete Repositioning by 2017
The Path Ahead: Complete Repositioning by 2017 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 Million ounces $14.00 ‐ $15.00 30.0 15 20.0 10 10.0 5 0.0 0 2014A 2015E 2016E 2017E 2014A 2
Slide 8: Preemptively Bolstered Liquidity with Non-Dilutive Financing
Preemptively Bolstered Liquidity with Non‐Dilutive Financing Balance Sheet as of June 30, 2015 Net debt / Adj EBITDA1 4.2X Liquidity $205.9 4.0X Net Debt = $341.8 Debt $539.6 $8.1 $0 $100 $200 $300 $400 $500 $600 in millions 3/31/2015 6/30/2015 Cash & cash equivalents Long‐term debt Short‐term debt
Slide 9: Palmarejo: World's 9th Largest Silver Mine
Palmarejo: World’s 9th Largest Silver Mine Today at Palmarejo Palmarejo’s Future Acquisition of Paramount in April 2015 provides Transitioning to underground second source of high‐grade ore to supplement rising mining to maximize margins and production from Guadalupe cash flow Development of twin
Slide 10: Rochester: 2nd Largest Primary Silver Mine in the U.S.
Rochester: 2nd Largest Primary Silver Mine in the U.S. Today at Rochester Rochester’s Future Permitting for 120 million tons of additional leach pad capacity well underway Executing in‐pit crusher expansion and increased Stage III leach pad Majority of related capex deferred until 2017, capacity d
Slide 11: Kensington: 100% Pure Gold Mine
Kensington: 100% Pure Gold Mine Today at Kensington Kensington’s Future Re‐scoped mine plan demonstrates strategy to • Recently raised 2015 production guidance and lowered 2015 cost source ore from higher‐grade areas over the LOM guidance by 7% • New sorting technology being implemented to further i
Slide 12: Wharf: The Newest Addition to Coeur's Portfolio
Wharf: The Newest Addition to Coeur’s Portfolio Today at Wharf Wharf’s Future • 2Q 2015 was the first full quarter of operating results since the Significantly higher production is expected in 2H acquisition closed on February 2015 at lower unit costs 20, 2015 • Announced 39% increase in Wharf’s gol
Slide 13: San Bartolomé: One of the World's Largest Pure Silver Mines
San Bartolomé: One of the World’s Largest Pure Silver Mines Today at San Bartolomé San Bartolomé's Future Test work underway on processing • Straightforward operation due to free‐ digging surface mining techniques (no enhancements to improve recoveries drilling or blasting) Opportunity to source hig
Slide 14: Anticipated Milestones and Upcoming News Flow
Anticipated Milestones and Upcoming News Flow 4Q 2015 1Q 2016 1Q / 2Q 2016 2Q 2016 Complete open‐pit Complete mining at Receive permits Achieve mining rate of mining at Palmarejo; File legacy Palmarejo for next 1,900 tpd at Guadalupe; TR with updated drill underground expansion at accelerate product
Slide 15: Appendix
Appendix
Slide 16: 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 $ in millions 1.8 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 17: Rochester: Lower Mining and Leaching Costs Drive Lower CAS per AgEq oz
Rochester: Lower Mining and Leaching Costs Drive Lower CAS per AgEq oz1 $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 ounces 13,721 $8.2 $8.8 11,702 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 CA
Slide 18: 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 oz1 Gold produc
Slide 19: 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 20: 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 1 Adj CAS per AgEq oz Silver production (millions) Cash flow fr
Slide 21: 2015 Guidance Improved
2015 Guidance Improved Silver Production Gold Production 6,558 Ounces in thousands 5,852 114,821 120,000 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 1 2014 Actual 2015 Guidance Midpoint 2014
Slide 22: Non-GAAP Reconciliations and Other
Non‐GAAP Reconciliations and Other
Slide 23: 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 Net income (loss) ($1,125,536) ($1,155,884) ($1,151,980) Interest expense, net of capitalized interest 43,680 47,546 45,257 Interest income and other, net 343 (1,375) 1,605 Income t
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 Total Three months ended June 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs applicable to sales, including amortiz
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 December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $6
Slide 26: 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 27: 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 Costs applicable to sales, including amortization (U.S. GAAP) $635,516 Amortization 157,571 Costs applicable to sales 477,945 Treatment and refining costs 4,943 Sustaining capital 61,
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: Contact Information
Contact Information Corporate Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489‐5800 Stock Ticker: CDE: NYSE Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: coeur.com Contact: Bridget Freas Director, Investor Relations bfreas@coeur.com NYSE: CD