Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q1 2024 Earnings Presentation
55 slides from Coeur Mining's earnings presentation, May 2, 2024
Slide 1: 2024 First Quarter Earnings
2024 First Quarter Earnings 11:00 a.m. ET, May 2, 2024 NYSE: CDE NYSE: C DE 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, growth, anticipated production, costs and expenses, exploration and de
Slide 3: First Quarter 2024 Highlights
First Quarter 2024 Highlights • Solid quarterly production driven by Palmarejo and Wharf; in-line with 2024 guidance • Revenue and adj. EBITDA increases driven by higher production and lower costs • Commercial production achieved at Rochester; ramp-up on track • Kensington’s multi-year drillin
Slide 4: Production Summary
Production Summary Full-Year Full-Year Guidance Implied 1Q 2024 Guidance1 Progress2 Profile by Quarter3 2Q - 4Q 2024 Comments Gold Production (oz) • Higher average grades quarter-over-quarter Palmarejo 33,160 95,000 – 103,000 33% 26% 61,840 – 69,840 • Increased average recoveries quarter-over- quart
Slide 5: Rochester Expansion: Ramp-Up On Track
Rochester Expansion: Ramp-Up On Track Rochester expansion construction and commissioning is now complete. The crushing circuit has routinely exceeded 70,000 TPD1 since commissioning was completed. Commercial production was achieved as of March 31, 2024 and the ramp-up to sustained nameplate capacity
Slide 6: Rochester Expansion: Ramp-Up Outlook
Rochester Expansion: Ramp-Up Outlook Ramp-up is expected to be completed by the end of the second quarter, leading to significantly higher expected production and lower anticipated CAS per ounce Cost Performance1 (37)% $25.74 $23.57 $23.97 $2,268 $1,922 $1,691 $14.00 - $16.00 (32)% $1,200 - $1,400 2
Slide 7: Rochester Expansion: World Class Asset – By the Numbers
Rochester Expansion: World Class Asset – By the Numbers #1 • Largest open pit heap leach operation in North America1 #3 • Third-largest open pit heap leach operation in the world 1 #1 • Largest silver reserve asset in the U.S. 2 #3 • Third-largest silver reserve asset in North America 2 #4 •
Slide 8: Sustaining a Higher Level of Exploration Investment
Sustaining a Higher Level of Exploration Investment The Company remains focused on delivering results through the drill bit in 2024 with significant investments expected at Palmarejo and Silvertip targeting resource expansion and at Kensington targeting reserve increases Total Exploration Investment
Slide 9: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 1Q 2024 4Q 2023 QoQ ∆ 1Q 2023 YoY ∆ Metal Sales Gold ounces sold (oz) 81,416 99,540 (18%) 70,866 15% Silver ounces sold (M oz) 2.6 3.0 (13%) 2.6 0% Key Financials Revenue $213.1 $262.1 (19%) $187.3 14% Exploration i
Slide 10: Investing in Organic Growth Opportunities
Investing in Organic Growth Opportunities Capital Expenditures by Mine Capital Expenditures Composition (% companywide total) (% companywide total) 1% 1% 3% 1% 4% 15% 14% 11% 23% 35% 2023 31% 2024E1 2023 2024E1 $365M $135M-$184M $365M $135M-$184M 65% 72% 38% 86% Palmarejo Rochester Kensington Sustai
Slide 11: Inflationary Cost Pressures Remain
Inflationary Cost Pressures Remain Coeur has continued to experience inflationary pressures – particularly compared to 24 months ago – with recent easing in some areas Diesel Cost Per Gallon Materials, Parts and Supplies Cost (9%) +38% $36.6 $33.5 $34.0 $33.9 $31.9 $3.62 $3.62 $3.68 $3.49 $3.36 $3.2
Slide 12: Balance Sheet and Hedging Summary
Balance Sheet and Hedging Summary Liquidity Profile1,2 Debt and Leverage Summary1,3 ($M) ($M) M ar. 31, Dec. 31, M ar. 31, 2 0 23 2 0 23 2 0 24 $400 5.125% senior notes due 2029 369.4 295.1 289.5 ($30) $100 $313 Revolving credit facility 60.0 175.0 225.0 $68 $213 Capital lease obligations 64.6 75.2
Slide 13: Looking Ahead: Key Deliverables for 2024
Looking Ahead: Key Deliverables for 2024 • Safely and successfully complete Rochester ramp-up and transition to optimization initiatives • Deliver predictable operating and financial results across portfolio in line with production and cost guidance ranges • Accelerate incremental, high-return ex
Slide 14: 2024 Guidance
2024 Guidance 1 Production Outlook Gold (oz) Silver (K oz) Palmarejo 95,000 – 103,000 5,900 – 6,700 Rochester 37,000 – 50,000 4,800 – 6,600 Kensington 92,000 – 106,000 - Wharf 86,000 – 96,000 - C onsolidated 3 1 0,000 – 355,000 1 0 ,700 – 13,300 CAS Outlook2 Gold ($/oz) Silver ($/oz) Palmarejo (co-p
Slide 15: ESG Highlights
ESG Highlights NYSE: C DE 15 JC 2016
Slide 16: 2023 ESG Report
2023 ESG Report 1 Coeur published its fifth annual ESG Report on April 23, 2024, highlighting its ongoing environmental and social responsibility and leading governance practices Report Highlights • Lowest Total Reportable Injury Frequency Rate (TRIFR) among peers according to MSHA standards, at 0.
Slide 17: Committed to Reaching our GHG Target
Committed to Reaching our GHG Target In 2022, Coeur linked a meaningful amount of management’s long-term compensation to the achievement of its 35% net intensity emission reduction goal. In 2023, the Company took further action to decarbonize and to mitigate climate-related risks Objective: Lessen C
Slide 18: 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 rate remains significantly below industry averages, resulting in the lowest Total Reportable Injury
Slide 19: First Quarter Community Relations Highlights
First Quarter Community Relations Highlights • Members of Coeur’s Community Partnership volunteered time at the Chicago Cradles to Crayons Giving Factory • Held inaugural Coeur Alaska Silent Auction, exceeding $10,000 in employee Kensington bids with a matching donation by Coeur Alaska to the June
Slide 20: 2024 World Silver Survey Highlights
2024 World Silver Survey Highlights • Second consecutive year of record high use of silver in industrial applications in 2023, representing a 11% y/y increase • Continued structural gains from green economy applications • 64% increase in y/y photovoltaic demand and faster adoption of new-generati
Slide 21: Appendix
Appendix NYSE: C DE 21 JC 2016
Slide 22: Palmarejo
Palmarejo The Palmarejo gold-silver complex is located in the state of Chihuahua, Mexico, consisting of a legacy open pit mine, current underground mining and processing operations as well as several other deposits and exploration targets Asset Overview Share of Companywide 2024E2 Production Ownersh
Slide 23: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,023 $15.56 $1,010 $926 Capital expenditures $901 $15.16 $15.26 $13.94 $917 $13.18 $25.6 $24.1 $22.6 33 1,818 $18.6 1,752 1,617 27 1,601 1,621 25 25 23 $11.5 $11.9 $10.8 $10.2 $8
Slide 24: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which completed a significant expansion in November 2023 that is expected to drive a step-change in production and cash flow Asset Overview Share of Companywide 2024E2 Production Ownership 100%
Slide 25: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,899 Capital expenditures $1,655 $1,646 $1,630 $1,564 $84.4 $23.64 $65.6 $61.5 $20.24 $20.39 $19.33 $18.17 $52.0 1,340 20 $21.2 761 699 683 $11.6 608 8 6 6 4 ($3.8) ($13.5) ($17.
Slide 26: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2024E2 Production Ownership 100% Gold Em
Slide 27: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $2,927 Operating cash flow2 Capital expenditures $15.8 $15.1 $13.3 $1,775 $1,840 $11.7 $10.7 $1,543 $1,441 $6.3 $6.1 $5.1 $1.5 27 25 20 21 13 ($13.6) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 2
Slide 28: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2024E2 Production Ownership 100% Gold Employees1
Slide 29: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,466 Capital expenditures $33.8 $1,267 $1,165 $28.8 $1,035 $997 30 $19.5 26 23 20 15 $11.1 $1.9 $1.5 $0.1 $0.1 $0.7 $0.3 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 2Q 2023 3Q 20
Slide 30: Silvertip
Silvertip The Silvertip exploration project is one of the highest-grade polymetallic projects in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 68 Claims 98,834 net acres Type Underground
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: C DE 31 JC 2016
Slide 32: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Costs Applicable to Sales Guidance for 2024 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $258,870 $129,322 $199,980 $108,330 Amort
Slide 33: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended March 31, 2024 ($ 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 $2
Slide 34: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2023 ($ 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 $197,
Slide 35: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2023 ($ 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 $85,155
Slide 36: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2023 ($ 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 $34,70
Slide 37: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2023 ($ 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 $43
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $57,984 $48,083 $4
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 1Q 2023 2022 Net income (loss) ($29,116) ($103,612) ($25,505) ($21,109) ($32,412) ($24,586) ($78,107) Fair value adjustments, net - (3,384) 1,245 2,010 3,922 (10,561)
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 1Q 2023 2022 Net income (loss) ($29,116) ($103,612) ($25,505) ($21,109) ($32,412) ($24,586) ($78,107) Interest expense, net of capitalized interest 12,946 29,099 7,396 7,402 6,91
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 Net income (loss) ($108,142) ($103,612) ($29,018) ($65,353) ($110,375) Interest expense, net of capitalized interest 34,656 29,099 29,894 28,424 26,682 Income tax provisio
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 1Q 2023 2022 Cash flow from operating activities ($15,871) $67,288 $65,277 ($2,383) $39,397 ($35,003) $25,616 Capital expenditures (42,083) (364,617) (92,715) (112,273) (85,581) (
Slide 43: Reserves and Resources
Reserves and Resources 2023 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) P ROVEN 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 Kensington
Slide 44: Reserves and Resources (cont.)
Reserves and Resources (cont.) 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) M E ASURED RESOURCES Palmarejo Mexico 5,674,000 0.070 4.56 396,000 25,875,000
Slide 45: Reserves and Resources (cont.)
Reserves and Resources (cont.) 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 Rochester Nevada, USA 135,104,000 0.0
Slide 46: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2023 Mineral Reserves: (1) 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 technical staff. (2) Assumed metal
Slide 47: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2023 Mineral Resources: (1) 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 estimates were prepared by the Comp
Slide 48: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2023 Mineral Resources (cont.): (9) 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 withed a conceptual measured
Slide 49: Reserves and Resources
Reserves and Resources 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) P ROVEN RESERVES Palmarejo Mexico 1,283,000 0.084 4.97 108,000 6,376,000 Rochester Nevada, USA 228,413,000 0.00
Slide 50: Reserves and Resources (cont.)
Reserves and Resources (cont.) 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) M E ASURED RESOURCES Palmarejo Mexico 604,000 0.086 4.77 52,000 2,880,000 Roch
Slide 51: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2018 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 5,875,000 0.065 4.36 384,000 25,609,000 Rochester Nevada, USA 235,062,000 0.0
Slide 52: 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 53: 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 54: Board of Directors (cont.)
Board of Directors (cont.) Jeane L. Hull – Ms. Hull has over 35 years of mining operational leadership and engineering experience, most notably holding the positions of Chief Operating Officer for Rio Tinto plc at the Kennecott Utah Copper Mine and Executive Vice President and Chief Technical Office
Slide 55: 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 J ef f Wi l hoi t Director, Investor Relations investors@coeur.c om NYSE: C DE 55 JC 2016