Slide 1: Third Quarter Earnings
2017 Third Quarter Earnings 11:00am ET, October 26, 2017 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 the anticipated benefits of the Silvertip acquisition as well as anticipated production, costs, grades, margins, ca
Slide 3: Cautionary Statements (cont.)
Cautionary Statements (cont.) Coeur's management prepared certain unaudited financial projections, some portions of which are included in this presentation. These projections were prepared to give effect to the acquisition of the Silvertip project. These projections were not prepared with a view tow
Slide 4: Quarter in Review
Quarter in Review NYSE: CDE 4 JC 2016
Slide 5: Highlights
Highlights • Higher quarterly silver equivalent1 production driven by Palmarejo and Wharf • Lower third quarter costs per ounce driven by 14% decline at Palmarejo • Major milestones achieved at key development projects at Palmarejo, Rochester, and Kensington • Closed acquisition of high-grade Silver
Slide 6: Summary Figures
Summary Figures ($M) 3Q 2017 2Q 2017 QoQ Δ 3Q 2016 YoY Δ Silver ounces sold (M oz) 3.8 4.1 (7%) 3.4 12% Gold ounces sold (oz) 89,972 86,194 4% 83,389 8% Revenue $176.0 $173.4 2% $176.2 -% Costs applicable to sales $118.9 $125.6 (5%) $105.4 13% Exploration expense $9.8 $7.8 26% $3.7 165% General & ad
Slide 7: Increased Production Driven by Palmarejo and Wharf
Increased Production Driven by Palmarejo and Wharf Companywide Silver Equivalent1 Production 10.0 9.5 9.2 8.6 8.9 102,500 93,293 84,871 88,218 82,819 3.9 3.9 4.0 4.0 3.5 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 AgEqOz1 production (M oz) Silver production (M oz) Gold production (oz) Palmarejo Wharf Co
Slide 8: Higher Production Expected in 4Q
Higher Production Expected in 4Q Unit Costs1 3Q Takeaways Looking Ahead • Mining rates expected to be sustained at 3Q • 25% increase in AgEqOz1 production $9.25 levels • 14% decrease in adj. CAS / avg. spot AgEqOz1 • Higher recovery rates anticipated in 4Q due $13.77 $11.80 Palmarejo • Reached 4,500
Slide 9: Companywide AISC Expected to Hold Steady
Companywide AISC Expected to Hold Steady Higher anticipated production and lower unit costs in the fourth quarter are expected to be offset by higher sustaining capital expenditures Companywide Adjusted AISC / AgEqOz2,3 Companywide Capital Expenditures ($) ($M) $50 Development Development (Silvertip
Slide 10: Exploration Program Maintains Accelerated Pace
Exploration Program Maintains Accelerated Pace Coeur continued to aggressively invest in exploration during the quarter, with further expansions to Palmarejo and Kensington’s success-based drill programs based on encouraging drill results Total Exploration Spend Drilling Activity ($M) (ft) Expensed
Slide 11: Expanded Palmarejo's Near-Mine Exploration Program
Expanded Palmarejo’s Near-Mine Exploration Program • Constituted over 40% of companywide Exploration Activity 95,833 drilling activity during the quarter Exploration expense ($M) 89,001 $4.5 Feet drilled • Focus on resource expansion at the 68,591 $3.1 Nación Vein; mine design begins in 2018 $1.3 •
Slide 12: Targeting Jualin and High-Grade Areas at Kensington
Targeting Jualin and High-Grade Areas at Kensington • Drilling at Kensington accounted for over Exploration Activity 51,590 20% of feet drilled during the quarter, Exploration expense ($M) 43,341 $3.0 mainly focused on Raven and lowermost Feet drilled 34,380 Kensington Block L $2.0 • Surface and und
Slide 13: UG Drilling and Development at Silvertip Underway
UG Drilling and Development at Silvertip Underway Following the successful acquisition of Silvertip, Coeur has already initiated an extensive drill program • Potential to become one of Coeur’s cornerstone assets – One of the highest-grade operations – Mining-friendly jurisdiction Road to Camp – Low
Slide 14: ROIC Focus and Capital Allocation Priorities
ROIC Focus and Capital Allocation Priorities Higher Near-mine exploration Returns Organic growth opportunities After-tax hurdle rate 15% Acquisitions Repay debt 5.83% Company WACC1 Retain cash Lower on balance sheet Returns (1) Source(s): Bloomberg, as of October 25, 2017. Current weighted average c
Slide 15: Looking Ahead
Looking Ahead • Strong expected 4Q production and cash flow from Rochester and Kensington • Drill results update to be provided in early December • Mill commissioning and production start-up at Silvertip • Updated technical report for Rochester • Updated technical report for Kensington expected by e
Slide 16: 2017 Guidance Revised
2017 Guidance1 Revised 2017 Production Outlook (AgOz2 and AgEqOz2 in K oz) Silver Gold AgEqOz2 Palmarejo 6,500 – 7,000 110,000 – 120,000 13,100 – 14,200 Rochester 4,200 – 4,700 47,000 – 52,000 7,020 – 7,820 San Bartolomé 4,500 – 4,750 -- 4,500 – 4,750 Endeavor 107 -- 107 Kensington -- 120,000 – 125,
Slide 17: Appendix
Appendix NYSE: CDE 17 JC 2016
Slide 18: Anticipated Financial Impact of Recent Transactions
Anticipated Financial Impact of Recent Transactions Revolving Credit Facility Rationale • Four-year $200 million senior secured revolving credit facility established; $100 million drawn in October to partially fund the acquisition of Silvertip, which closed on October 17, 2017 • Provides flexibility
Slide 19: Overview of Initial Silvertip Mine Plan
Overview of Initial Silvertip Mine Plan1 Operating Parameters2 Costs Assumptions2 Units LOM Units LOM Total ore production M tonnes 2.7 Pre-production capex US$M $25 - $35 Initial mine life Years 7.5 Sustaining capex US$M $55 - $65 Average production rate tpd 1,000 Operating costs Average annual pro
Slide 20: Notes to Initial Silvertip Mine Plan
Notes to Initial Silvertip Mine Plan Notes to the Silvertip summary mine plan: (a) This economic analysis is preliminary in nature and is based upon the current resource estimate as set out in this presentation which includes inferred mineral resources. Inferred resources are considered too speculat
Slide 21: Non-Core Asset Divestitures
Non-Core Asset Divestitures With the closing of the sale of the Endeavor stream and other non-core assets in 3Q, Coeur has opportunistically divested assets for total consideration of $65.1 million since the beginning of 2016 • Strengthens balance sheet • Non-core assets • Attractive valuation envir
Slide 22: Palmarejo
Palmarejo Ownership 100% Claims 112,520 net acres Type Underground Crushing, grinding, flotation, Processing agitation leaching, Merrill-Crowe precipitation, refining Metals Silver and gold doré Palmarejo Mine life ~5 years Chihuahua, Northern Mexico 2016 Share of Revenue 2016 Reserves and Resources
Slide 23: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $50.5 $11.01 $11.21 $10.70 Operating cash flow $9.68 $9.76 Capital expenditures $10.05 $10.11 $10.11 $8.87 $8.68 31 1,908 29 1,531 24 1,457 24 1,269 $18.8 $18.5 933 17 $13.7 $11.2 $10.0 $8.1 $6.2 $5.5
Slide 24: Palmarejo Gold Stream Agreement Driving FCF Growth
Palmarejo Gold Stream Agreement Driving FCF1 Growth • More favorable gold stream agreement with Franco‐Nevada took effect in August 2016 – Applies to 50% of gold production from legacy Palmarejo land package – Franco‐Nevada to pay $800 per ounce vs. $416 per ounce under the old royalty agreement – N
Slide 25: Financial Statement Impacts of FNV Agreement
Financial Statement Impacts of FNV Agreement Previous Royalty Agreement Stream Agreement Income • 100% of gold sales recorded at spot • Gold sales to FNV recorded at $800 Statement prices per ounce plus deferred revenue • Fair value adjustments recorded to reflect changing gold prices on minimum oun
Slide 26: Rochester
Rochester Ownership 100% Claims 16,494 net acres Type Open pit and heap leach Crushing, dump heap leaching, Processing Merrill-Crowe precipitation, refining Rochester Metals Silver and gold doré Nevada, U.S. Mine life ~14 years 2016 Share of Revenue 2016 Reserves and Resources1 Grade (oz/t) Ounces (
Slide 27: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $13.54 $13.69 Operating cash flow $13.8 $12.57 Capital expenditures $11.99 $11.56 $12.56 $12.46 $11.81 $10.6 $11.02 $11.16 $9.5 $9.7 $7.6 1,277 $5.8 $5.7 1,161 1,127 1,156 1,070 14 $3.4 12 10 11 11 $1
Slide 28: Kensington
Kensington Ownership 100% Claims 12,336 net acres Type Underground Kensington Crushing, grinding, flotation Alaska, U.S. Processing processing Metals Gold concentrate Mine life ~5 years 2016 Share of Revenue 2016 Reserves and Resources1 Grade (oz/t) Ounces (contained) Short tons Silver Gold Silver G
Slide 29: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow Capital expenditures $952 $946 $884 $859 $18.0 $801 34 $12.6 26 26 28 $11.4 26 $10.1 $9.3 $8.6 $8.6 $7.0 $5.5 $4.5 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 3Q 2016 4Q 2016 1Q 2017
Slide 30: Wharf
Wharf Ownership 100% Claims 7,551 net acres Type Open pit and heap leach Crushing, “on-off” heap leaching, Processing spent ore neutralization, carbon Wharf South Dakota, U.S. absorption/desorption Metals Electrolytic cathodic sludge Mine life ~5 years 2016 Share of Revenue 2016 Reserves and Resourc
Slide 31: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $737 $719 Operating cash flow $670 Capital expenditures $559 $556 $21.1 30 31 $15.4 $15.0 26 21 21 $8.6 $8.8 $3.1 $1.3 $0.9 $1.5 $0.6 1 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 3Q 2016 4Q 2016 1Q 2017 2Q 2
Slide 32: San Bartolomé
San Bartolomé Wholly-owned (long-term mineral Ownership rights leases with COMIBOL) Claims 4,054 net acres Type Surface mining, free-digging Crushing, washing, grinding, Processing agitation leaching, Merrill-Crowe precipitation, refining Metals Silver doré San Bartolomé Mine life 1-2 years Potosi,
Slide 33: San Bartolomé (cont.)
San Bartolomé (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $17.58 Capital expenditures $15.88 $15.96 $14.40 $11.3 $13.97 $8.6 $5.2 $4.1 1,370 $3.0 1,259 1,285 $1.8 1,215 $0.4 $0.4 $0.5 957 ($7.9) 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017
Slide 34: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Unaudited Adjusted Net Income (Loss) ($ thousands) 3Q 2017 2Q 2017 1Q 2017 2016 4Q 2016 3Q 2016 2015 2014 Net income (loss) ($16,652) ($10,955) $18,663 $55,352 ($8,306) $69,557 ($367,183) ($1,186,874) Fair value adjustments, net - (336) 1,200 11,581 (1,654) 961 (
Slide 35: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 3Q 2017 2Q 2017 1Q 2017 2016 4Q 2016 3Q 2016 2015 2014 Net income (loss) ($16,652) ($10,955) $18,663 $55,352 ($8,306) $69,557 ($367,183) ($1,186,874) Interest expense, net of capitalized interest 3,606 3,749 3,586 3
Slide 36: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 3Q 2017 2Q 2017 1Q 2017 4Q 2016 3Q 2016 2Q 2016 1Q 2016 4Q 2015 Net income (loss) $(17,250) $68,959 $94,411 $55,352 ($239,342) ($323,118) ($354,292) ($367,183) Interest expense, net of capitalized interest 17,79
Slide 37: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Consolidated Free Cash Flow ($ thousands) 3Q 2017 2Q 2017 1Q 2017 2016 4Q 2016 3Q 2016 2015 2014 Cash flow from operating activities $29,432 $29,279 $55,271 $125,817 $25,449 $47,812 $113,542 $53,548 Capital expenditures (29,461) (37,482) (23,979
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 9 months ended September 30, 2017 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S.
Slide 39: 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, 2017 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S.
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 June 30, 2017 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP
Slide 41: 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, 2017 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAA
Slide 42: 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 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP
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 December 31, 2016 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S.
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 September 30, 2016 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S.
Slide 45: 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 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP
Slide 46: 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 Silver Gold San ($ thousands, except per ounce amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Total Costs applicable to sales, including amortization (U.S. GAAP) $256,707 $
Slide 47: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited All-in Sustaining Costs YTD ($ thousands, except per ounce amounts) 3Q 2017 3Q 2017 2Q 2017 1Q 2017 2016 4Q 2016 3Q 2016 2015 2014 Costs applicable to sales $377,255 $118,922 $125,621 $132,712 $409,541 $102,112 $105,408 $479,654 $477,945 Treatme
Slide 48: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited All-in Sustaining Costs per Silver Equivalent Ounce for 2017 Guidance Silver Gold ($ thousands, except per ounce San amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortiza
Slide 49: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited All-in Sustaining Costs per 70:1 Spot Silver Equivalent Ounce for 2017 Guidance Silver Gold ($ thousands, except per ounce San amounts) Palmarejo Rochester Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, includin
Slide 50: Average Spot Equivalence
Average Spot Equivalence Average Spot Prices 3Q 2017 2Q 2017 1Q 2017 2016 4Q 2016 3Q 2016 2015 2014 Average silver spot price per ounce $16.84 $17.21 $17.42 $17.14 $17.19 $19.61 $15.68 $19.08 Average gold spot price per ounce $1,278 $1,257 $1,219 $1,251 $1,222 $1,335 $1,160 $1,266 Average silver-to-
Slide 51: Reserves and Resources
Reserves and Resources 2016 Proven and Probable Mineral Reserves Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold Proven Reserves Palmarejo Mexico 1,569,000 4.44 0.080 6,971,000 126,000 Rochester Nevada, USA 143,686,000 0.48 0.004 68,369,000 503,000 Kensington Alaska, US
Slide 52: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Measured and Indicated Mineral Resources (excluding Reserves) Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold Measured Resources Palmarejo Mexico 818,000 3.20 0.061 2,618,000 50,000 Rochester Nevada, USA 39,732,000 0.59 0.003 23,281,0
Slide 53: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold Inferred Resources Palmarejo Mexico 4,726,000 4.35 0.055 20,540,000 258,000 Rochester Nevada, USA 67,778,000 0.52 0.003 35,554,000 178,000 Kensington Alaska, U
Slide 54: Reserves and Resources (cont.)
Reserves and Resources (cont.) Silvertip Resource Estimates Tonnage Silver Zinc Lead Silver Equivalent tonnes tons g/t oz/t % % g/t oz/t Indicated 2,349,000 2,589,326 352 10.27 9.41 6.73 1,166 34.01 Inferred 460,000 507,063 343 10.00 9.81 6.18 1,155 33.68 Notes to the Silvertip mineral resource esti
Slide 55: 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 56: 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 57: 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 Courtney R. B. Lynn VP, Investor Relations & Treasurer investors@coeur.com NYSE: CDE 57 JC 2016