Coeur Mining, Inc. · NYSE:CDE

Coeur Mining — Coeur d'Alene Mines — Q1 2012 Earnings Presentation

48 slides from Coeur Mining's earnings presentation, May 7, 2012

  1. Slide 1: Overview of 2012 First Quarter Results

    Overview of 2012 First Quarter Results Conference Call & Webcast May 7, 2012 Coeur d’Alene Mines Corporation NYSE: CDE; TSX: CDM COEUR: (NYSE:CDE; TSX:CDM)

  2. Slide 2: Cautionary Statement

    Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding anticipated operating results, production levels and operating costs. Such statements are subject to num

  3. Slide 3: First Quarter 2012 Results Webcast & Conference Call

    First Quarter 2012 Results Webcast & Conference Call Presenters: Mitchell J. Krebs Frank Hanagarne, Jr. President and Sr. Vice President and Chief Executive Officer Chief Financial Officer K. Leon Hardy Randy Buffington Sr. Vice President and Sr. Vice President, Chief Operating Officer Operations Do

  4. Slide 4: Overview

    Overview Mitchell Krebs COEUR: (NYSE:CDE; TSX:CDM) 4

  5. Slide 5: First Quarter 2012 Highlights

    First Quarter 2012 Highlights  Solid start to 2012:  Consistent performance from Palmarejo and San Bartolomè  Excellent progress at Kensington and Rochester  Successfully containing operating and non-operating costs  On-track for strong second quarter and full-year  Exploration program returni

  6. Slide 6: Financial Overview

    Financial Overview Frank Hanagarne COEUR: (NYSE:CDE; TSX:CDM) 6

  7. Slide 7: First Quarter 2012 Financial Snapshot

    First Quarter 2012 Financial Snapshot All in millions except Metals Prices. 2000 Favorable Metal Prices $60.00 Metal Sales $204.6 $1,702 $50.00 $199.6 1500 $1,374 $40.00 $31.27 $32.61 1000 $30.00 $20.00 500 $10.00 0 $- 1Q '11 1Q '12 1Q'11 1Q '12 Gold Silver Operating Cash Flow1 Adjusted Earnings1 $9

  8. Slide 8: First Quarter 2012 Highlights – Maintaining Guidance

    First Quarter 2012 Highlights – Maintaining Guidance  Unchanged 2012 financial and operational guidance  18.5 – 20.0 million silver production ounces  210,000 – 230,000 gold production ounces  2012 estimated cash operating costs of $6.50 - $7.50 per silver ounce; Kensington’s costs expected to a

  9. Slide 9: Returning Value to Shareholders

    Returning Value to Shareholders 89.3 89.3 89.5 89.5 89.7 89.7 89.9 3Q '10 4Q '10 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12  Shares outstanding remain level  Returning capital to shareholders  Evaluating dividends and share buyback  Goal of achieving consistency at all operations before dividends  Depl

  10. Slide 10: Operational Overview

    Operational Overview Leon Hardy COEUR: (NYSE:CDE; TSX:CDM) 10

  11. Slide 11: Operating Highlights – Solid First Quarter

    Operating Highlights – Solid First Quarter  Palmarejo delivered another strong quarter; sharply lower cash operating costs  San Bartolomé performed consistently  Kensington resumed full production ahead of schedule; transitioning from project mode to production mode  Initial full quarter product

  12. Slide 12: First Quarter 2012 Operational Performance

    First Quarter 2012 Operational Performance Silver Production (millions oz) Gold Production (oz) 4.9 53,130 4.1 43,901 1Q'11 1Q'12 1Q'11 1Q'12 Cash Operating Costs1 Per Silver Oz Cash Operating Costs1 Per Gold Oz (Kensington) $8.36 $2,709 $6.29 $989 1Q'11 1Q'12 1Q'11 1Q'12 1 . Non-GAAP measure. Pleas

  13. Slide 13: Palmarejo – Strong Cash Flow

    Palmarejo – Strong Cash Flow 1Q’12 Highlights Silver Production 2.7 2.5 2.4  33% increase in tons milled 2.3 millions of ounces  Silver production of 2.5m silver ounces – 44% increase 1.7  Gold production of 31,081 ounces – 12% increase  Cash operating costs1 of $(2.27)/silver ounce  Metal sale

  14. Slide 14: San Bartolomé – Consistent Performance

    San Bartolomé – Consistent Performance 1Q’12 Highlights: Silver Production 2.1  Lower grade partially offset by higher recovery 2.0 millions of ounces 1.7 1.7 1.6  Silver production of 1.6 million ounces  Cash operating costs1 of $10.21/silver oz  Metal sales of $41.4 million 1Q '11 2Q '11 3Q '1

  15. Slide 15: Kensington – Resumed Full Production Ahead of Schedule

    Kensington – Resumed Full Production Ahead of Schedule 1Q’12 Highlights: Quarterly Gold Production  Expect full-year production of 82,600 – 86,500 ozs 25,758 25,687 23,676  Production of 7,444 gold ounces  Cash operating costs1 of $2,709/gold oz 13,299  Quarterly metal sales of $10.4 million 7,4

  16. Slide 16: Kensington – Major Project Phase Nearing Completion

    Kensington – Major Project Phase Nearing Completion Underground Dormitory Paste Backfill Plant Warehouse Administrative Building COEUR: (NYSE:CDE; TSX:CDM) 16

  17. Slide 17: Rochester – First Full Quarter of Active Mining

    Rochester – First Full Quarter of Active Mining  1Q ‘12 Highlights:  32% increase in silver production to 441,337 ozs  265% increase in gold production to 5,292 ozs  Cash operating costs1 of $23.35/silver oz  31% increase in metal sales to $18.8 million  Operating cash flow 1 increased to $7.2

  18. Slide 18: Exploration Overview

    Exploration Overview Don Birak COEUR: (NYSE:CDE; TSX:CDM) 18

  19. Slide 19: Exploration Overview – First Quarter 2012

    Exploration Overview – First Quarter 2012  53% increase in full-year 2012 exploration budget to $40 million  Up to 16 drills and trenching crews in operation  Over 71,800 meters of drilling and trenching completed  Palmarejo  Favorable results from Guadalupe, Palmarejo Mine area and La Patria 

  20. Slide 20: First Quarter Exploration Highlights – Palmarejo

    First Quarter Exploration Highlights – Palmarejo  Six drills employed; two underground, four on surface  Over 37,186 meters of drilling completed, which was over half the Company total in Q1  Majority of the drilling was focused on the Palmarejo and Guadalupe areas to expand and upgrade existing

  21. Slide 21: First Quarter 2012 Exploration Highlights – Palmarejo

    First Quarter 2012 Exploration Highlights – Palmarejo  Guadalupe drilling focused on infill of the Norte Zone  Notable results from 22 new core holes Q1 2012 TDGH-449, 2.2 m true, 11.5 g/t Au, 576 g/t Ag TDGH-452, 15.4 m true, 4.7 g/t Au, 338 g/t Ag TDGH-454, 1.1 m true, 3.7 g/t Au, 265 g/t Ag Rem

  22. Slide 22: First Quarter 2012 Exploration Highlights – Kensington

    First Quarter 2012 Exploration Highlights – Kensington  Q1 Kensington drilling focused on:  Exploration of Raven with 1 drill to infill inferred resources  Drilling of Block K of Zone 10 (850 to 400-ft elevation) with 3 drills  Zone 10 forms the basis for the next 3 years of mining  35,000 feet

  23. Slide 23: First Quarter 2012 Exploration Highlights – Joaquin

    First Quarter 2012 Exploration Highlights – Joaquin  Q1 2012 Joaquin drilling consisted of three main components:  Infill inferred mineral resources  Favorable drill results  Expect to complete new mineral resource in Q2  Metallurgical sampling - emphasis on oxide with new drilling and existing

  24. Slide 24: Closing Comments

    Closing Comments Mitchell Krebs COEUR: (NYSE:CDE; TSX:CDM) 24

  25. Slide 25: Looking Ahead

    Looking Ahead  Expect strong second quarter and 2012 results  Continued consistency from Palmarejo and San Bartolomè  Rising production at Kensington and Rochester  Maintain focus on cost containment  Prices expected to remain near current levels  Full-year guidance remains unchanged  Anticip

  26. Slide 26: Appendix

    Appendix COEUR: (NYSE:CDE; TSX:CDM) 26

  27. Slide 27: Balance Sheet and EBITDA Detail

    Balance Sheet and EBITDA Detail in millions of US$ 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Cash, Equivalents & Short-Term Investments $151.9 $175.0 $207.9 $106.8 $64.4 Short-Term Debt: 3.25% Convertible Senior Notes1 46.2 -- -- -- -- Senior Term Notes -- -- 15.0 15.0 15.0 Kensington Term Facility 21

  28. Slide 28: Non-GAAP to U.S. GAAP Reconciliation

    Non-GAAP to U.S. GAAP Reconciliation Adjusted Earnings Adjusted Earnings Reconciliation - in thousands of US$ 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Net income (loss) $3,975 $11,364 $31,060 $38,611 $12,464 Share based compensation 2,137 2,861 457 (3,351) 8,155 Deferred income tax provision 7,677 38

  29. Slide 29: Non-GAAP to U.S. GAAP Reconciliation

    Non-GAAP to U.S. GAAP Reconciliation EBITDA EBITDA Reconciliation -in thousands of US$ 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Net income (loss) $3,975 $11,364 $31,060 $38,611 $12,464 Income tax provision (benefit) 15,436 52,390 27,606 21,402 12,939 Interest expense, net of capitalized interest 6,67

  30. Slide 30: Non-GAAP to U.S. GAAP Reconciliation

    Non-GAAP to U.S. GAAP Reconciliation Operating Cash Flow – Consolidated Operating Cash Flow Reconciliation – in thousands of US$ 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Cash provided by operating activities $17,002 $87,412 $181,911 $111,065 $35,786 Changes in operating assets and liabilities: Receiv

  31. Slide 31: Non-GAAP to U.S. GAAP Reconciliation

    Non-GAAP to U.S. GAAP Reconciliation Operating Cash Flow - Palmarejo Operating Cash Flow Reconciliation - in millions of US$ 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Cash provided by operating activities $63.0 $70.9 $104.7 $62.9 $10.1 Changes in operating assets and liabilities: Receivables and other

  32. Slide 32: Non-GAAP to U.S. GAAP Reconciliation

    Non-GAAP to U.S. GAAP Reconciliation Operating Cash Flow – Kensington Operating Cash Flow Reconciliation – in millions of US$ 1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 Cash provided by operating activities $1.1 $9.3 $8.6 $7.6 $17.0 Changes in operating assets and liabilities: Receivables and other cur

  33. Slide 33: Non-GAAP to U.S. GAAP Reconciliation

    Non-GAAP to U.S. GAAP Reconciliation Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended March 31, 2012 Bartolomé Total Cash Operating Cost (Non-U.S. GAAP) $(5,643) $16,253 $20,168 $10,303 $5,708 $4,127 $50

  34. Slide 34: External Growth – Strategic Investments

    External Growth – Strategic Investments  Invested $25 million to date in five exploration and development companies.  Silver Bull (Mexico; 12.7% ownership interest):  50,000m drill program in 2012  Continued drill success at Centenario Zone  High-grade massive sulphide zone drilled to North of

  35. Slide 35: Metal Sales

    Metal Sales 1Q 2012 Metal Sales Production Contribution 32% Gold Silver 68% $1,021.2 98% $515.5 $ in millions $300.4 $146.9 $129.3 2007 2008 2009 2010 2011 COEUR: (NYSE:CDE; TSX:CDM) 35

  36. Slide 36: Q1 2012 Drill Results Guadalupe, Kensington, Joaquin

    Q1 2012 Drill Results Guadalupe, Kensington, Joaquin COEUR: (NYSE:CDE; TSX:CDM) 36

  37. Slide 37: Q1 2012 Drill Results Guadalupe

    Q1 2012 Drill Results Guadalupe Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag Guadalupe TGDH-412 333.0 336.2 3.1 2.8 6.34 467.2 339.0 360.0 21.0 18.9 5.94 445.4 363.5 364.1 0.6 0.5 9.74 730.0 TGDH-415 387.4 388.0 0.6 0.6 2.29 255.0 402.4 403.3 0.

  38. Slide 38: Q1 2012 Drill Results Guadalupe

    Q1 2012 Drill Results Guadalupe Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag Guadalupe TGDH-443 366.0 368.0 2.0 1.8 0.93 104.5 375.7 376.7 1.1 1.0 1.83 124.0 384.7 385.1 0.5 0.4 0.86 79.0 397.0 401.1 4.1 3.8 0.65 54.1 419.0 426.0 7.0 6.4 2.24 14

  39. Slide 39: Q1 2012 Drill Results Guadalupe

    Q1 2012 Drill Results Guadalupe Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag Guadalupe TGDH-449 316.0 319.6 3.6 3.4 6.09 496.3 323.3 324.1 0.7 0.7 1.26 86.0 331.5 333.0 1.5 1.4 0.94 109.0 344.8 345.3 0.5 0.5 3.17 178.0 350.0 350.4 0.4 0.4 6.13 3

  40. Slide 40: Q1 2012 Drill Results Guadalupe

    Q1 2012 Drill Results Guadalupe Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag Guadalupe TGDH-459 334.1 334.6 0.5 0.5 0.79 132.0 348.0 349.5 1.5 1.4 1.94 269.0 356.3 361.8 5.5 5.3 1.63 236.8 374.4 374.9 0.5 0.5 1.61 127.0 380.4 383.1 2.8 2.7 1.22

  41. Slide 41: Q1 2012 Drill Results Guadalupe

    Q1 2012 Drill Results Guadalupe Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag Guadalupe TGDH-471 446.2 446.8 0.6 0.5 3.93 132.0 476.7 477.1 0.4 0.4 2.59 168.0 487.6 493.8 6.2 5.5 24.95 1,027.0 502.2 503.2 1.0 0.9 1.04 77.0 504.4 504.8 0.4 0.4 2.1

  42. Slide 42: Q1 2012 Drill Results Kensington

    Q1 2012 Drill Results Kensington Assays Mineralized Interval (Feet) Hole I.D. (ounces/short ton) From To Thickness Au Block K K12-003 229.4 247.7 18.3 0.192 266.0 275.0 9.0 0.420 280.0 282.7 2.7 0.104 305.0 309.3 4.3 0.147 K12-004 249.6 253.1 3.5 0.147 260.0 273.0 13.0 0.230 293.0 313.0 15.0 0.705 K

  43. Slide 43: Q1 2012 Drill Results Kensington

    Q1 2012 Drill Results Kensington Assays Mineralized Interval (Feet) Hole I.D. (ounces/short ton) From To Thickness Au Block K K12-016 170.5 175.5 5.0 0.546 219.0 219.8 0.8 0.329 K12-018 178.0 183.5 5.5 0.123 K12-019 111.5 116.0 4.5 0.173 K12-020 206.0 211.0 5.0 0.175 231.0 236.0 5.0 0.274 K12-022 12

  44. Slide 44: Q1 2012 Drill Results Kensington

    Q1 2012 Drill Results Kensington Assays Mineralized Interval (Feet) Hole I.D. (ounces/short ton) From To Thickness Au Block K K12-034 164.4 165.7 1.3 1.532 204.0 207.1 3.1 0.255 239.0 244.0 5.0 0.766 259.0 264.0 5.0 0.189 K12-035 229.0 234.0 5.0 0.179 269.0 274.0 5.0 0.195 K12-037 109.7 117.5 7.8 0.

  45. Slide 45: Q1 2012 Drill Results Kensington

    Q1 2012 Drill Results Kensington Assays Mineralized Interval (Feet) Hole I.D. (ounces/short ton) From To Thickness Au Block K K12-118 0.0 8.0 8.0 0.543 20.0 25.0 5.0 0.723 35.0 45.0 10.0 0.110 55.0 58.0 3.0 0.117 K12-119 3.4 13.7 10.3 4.159 23.0 28.0 5.0 0.476 61.0 65.0 4.0 0.476 K12-120 12.0 17.0 5

  46. Slide 46: Q1 2012 Drill Results Joaquin

    Q1 2012 Drill Results Joaquin Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag La Negra DDJ-193 53.0 59.0 6.0 6.0 0.00 45.0 DDJ-194 32.0 33.0 1.0 1.0 0.00 77.0 65.0 66.0 1.0 1.0 0.00 16.0 DDJ-195 17.0 44.0 27.0 27.0 0.00 42.0 47.0 48.0 1.0 1.0 0.00

  47. Slide 47: Q1 2012 Drill Results Joaquin

    Q1 2012 Drill Results Joaquin Mineralized Interval (meters) Assays (grams/tonne) Hole I.D. From To Thickness Estimated True Au Ag La Negra DDJ-214 49.0 57.0 8.0 7.0 0.00 32.0 65.0 120.0 55.0 45.0 0.00 23.0 DDJ-215 32.0 63.0 31.0 27.0 0.08 97.0 67.0 187.0 120.0 100.0 0.03 31.0 DDJ-216 23.0 83.0 60.0

  48. Slide 48: Contact Information

    Contact Information Head Office: Coeur d’Alene Mines Corporation 505 Front Avenue Coeur d’Alene, Idaho 83816-0316 Main Tel: (208) 667-3511 Tickers: CDE: NYSE; CDM: TSX Website: www.coeur.com Stefany Bales Director of Corporate Communications sbales@coeur.com (208) 659-0974 Tom Angelos Senior Vice Pr

Coeur d'Alene Mines — Q1 2012 Earnings Presentation on 6ix