Slide 1: Building Global Investment Value: First Quarter 2011 Results
COEUR VALUE BUILDING GLOBAL INVESTMENT VALUE First Quarter 2011 Results May 9, 2011 COEUR ǀ THE PRECIOUS METALS COMPANY ǀ NYSE:CDE TSX:CDM 1
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. Such statements are subject to numerous assumptions and uncertainties, ma
Slide 3: New Mines Drive Record 1Q Performance
New Mines Drive Record 1Q Performance Net metal sales of $199.6 million $90.1 million of operating cash flow1 Adjusted earnings1 of $37.5 million, $0.42 per share 4.1 million ounces of silver production 53,130 ounces of gold production Average realized prices: $31.27 per ounce silver
Slide 4: Silver Remains the Top Performing Metal
Silver Remains the Top Performing Metal average price per ounce $37.28 $31.27 $26.83 $18.56 $18.87 $16.84 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Current Spot 4
Slide 5: Silver's Dual Role Driving Demand
Silver’s Dual Role Driving Demand Top performing metal despite recent volatility ETF investment at record levels Industrial demand rebounding Growth in both investment and industrial demand in emerging markets New uses (i.e. photovoltaic) driving additional demand 5
Slide 6: Gold Continues to Set New Highs
Gold Continues to Set New Highs average price per ounce $1,508 $1,357 $1,374 $1,229 $1,176 $1,104 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Current Spot 6
Slide 7: Gold Continues Upward March
Gold Continues Upward March Continued dollar and inflation concerns Low U.S. interest rates expected to continue Middle East, Japan, European shocks Concerns over long-term U.S. debt/deficit situation Greater appetite for holding physical gold by institutional and retail investors Reserv
Slide 8: Financial Results
Financial Results 8
Slide 9: Quarterly Metal Sales
Quarterly Metal Sales In millions 1Q Metal Sales Contribution by Mine 2% Palmarejo 9% San Bartolome 12% 38% $207.6 Kensington $199.6 7% Rochester Martha 32% Endeavor $118.6 $101.0 $98.8 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 9
Slide 10: Quarterly Adjusted Earnings
Quarterly Adjusted Earnings1 in millions $53.2 $37.5 $0.56/share $1.7 58.4% ($4.5) ($8.9) Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 49.1% 33.9% 41.7% 41.9% 1 10 Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation.
Slide 11: Quarterly Operating Cash Flow
Quarterly Operating Cash Flow1 in millions $99.4 $90.1 $34.7 $27.7 $22.0 58.4% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 49.1% 33.9% 41.7% 41.9% 1 11 Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation.
Slide 12: 40% Drop in Quarterly Capital Expenditures
40% Drop in Quarterly Capital Expenditures in millions 1Q Capex by Mine $0.2 Palmarejo $1.7 San Bartolome $5.1 Kensington $5.2 Rochester $3.5 Martha $47.2 $45.5 $36.8 $26.6 58.4% $15.9 49.1% Q1 '10 33.9% Q2 '1041.9% Q3 '10 41.7% Q4 '10 Q1 '11 12
Slide 13: Cash Flow Climbs; Further Debt Reductions
Cash Flow Climbs; Further Debt Reductions in millions In in millions of US$ 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 Cash, Equivalents $56.0 $41.2 $32.8 $66.1 $64.4 & Short-Term Investments Total Short-Term Debt $33.3 $48.8 $54.1 $47.6 $41.0 Total Long-Term Debt $188.1 $138.7 $132.1 $112.0 $131.9 Tot
Slide 14: Shares Outstanding Remain Constant
Shares Outstanding Remain Constant in millions In 89.3 89.3 89.3 89.5 86.1 58.4% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 49.1% 33.9% 41.7% 41.9% 14
Slide 15: Operational Performance
Operational Performance 15
Slide 16: Quarterly Silver Production
Quarterly Silver Production Millions of silver ounces 1Q Silver Production by Mine 0.2 0.1 Palmarejo 0.3 San Bartolome 1.7 Rochester 4.8 Martha 1.7 Endeavor 4.3 4.2 4.1 58.4% 3.4 49.1% 33.9% 41.7% 41.9% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 16
Slide 17: Quarterly Gold Production
Quarterly Gold Production gold ounces 1Q Gold Production by Mine 1,451 244 Palmarejo Kensington 60,640 23,676 27,759 Rochester 53,130 Martha 47,514 58.4% 25,782 23,124 49.1% 33.9% 41.7% 41.9% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 17
Slide 18: Palmarejo Generating Strong Free Cash Flow
Palmarejo Generating Strong Free Cash Flow Quarterly Silver Production • Silver production of 1.7m ounces 2.0 millions of ounces • Gold production of 27,759 ounces 1.5 1.7 1.3 • Average cash operating costs of $4.80/Ag Oz 1.1 • Metal sales of $88.2 million • Operating cash flow of $44.4 million Q1 '
Slide 19: San Bartolomé Continuing to Perform Well
San Bartolomé Continuing to Perform Well • Silver production of 1.7 million ounces Quarterly Silver Production 2.0 • Average cash operating cost of $9.13/oz 1.9 1.8 millions of ounces 1.7 • Quarterly metal sales of $46.3 million 1.0 • Operating cash flow of $32.2 million • Capital expenditures of $3
Slide 20: Kensington Achieving Design Capacity
Kensington Achieving Design Capacity Quarterly Gold Production • 23,676 ounces of gold production 27,988 • Quarterly metal sales of $48.1 million 23,676 • Operating cash flow of $13.9 million 15,155 • Capital expenditures of $5.4 million Q3 '10 Q4 '10 Q1 '11 • Average head grade declined 33% Quarter
Slide 21: Rochester Production Growth on Schedule
Rochester Production Growth on Schedule Construction of new leach pad on-schedule Planning to being stacking ore in July; new silver and gold production beginning in 4Q Produced 333,696 silver ounces and 1,451 gold ounces $1.7 million of capital expenditures and $3.4 million of expensed pre-
Slide 22: Exploration Update
Exploration Update 22
Slide 23: 2011 Q1 Exploration Highlights
2011 Q1 Exploration Highlights • Palmarejo – Drilling largely focused at targets around current Palmarejo surface mine and at Guadalupe (+9,930 meters completed). Positive results from Tucson-Chapotillo corridor. • Kensington – Drilling continued on the Raven structure (+4,690 feet completed). First
Slide 24: Palmarejo Exploration
Palmarejo Exploration Tucson – New High-grade Intercepts Rosario • Over 9,930 meters of core drilling in Q1 (surface and underground) 2011; nearly all in the current mining area • Hole 149 ( ) between Tucson and Chapotillo cut high Au and Ag grades (many assays for Q1 drilling are pending) Mineraliz
Slide 25: Palmarejo Exploration
Palmarejo Exploration Guadalupe – Growing and Still Open SE NW 1600 m 1400 m 1200 m North Portal 1000 m 800 m • Guadalupe continues to grow; Year-end 2010 total mineral resources are +41.3 M Ag ounces and 0.48 M Au ounces of Measured and Indicated and +27.2 M Ag and 0.43 Au ounces of Inferred (incl.
Slide 26: Kensington Exploration
Kensington Exploration Defining new High-grades at Raven Long section (Looking West) • Raven Vein consists of main vein (shown) and 2 footwall splays • Au mineralization defined over 1,200 feet R11-002 R11-001 R11-003 vertically and 1,000 feet horizontally H10-043 H10-050 H10-038 • Open for expansio
Slide 27: 2011 Q1 Exploration Highlights
2011 Q1 Exploration Highlights Initial Mineral Resources at Joaquin • Located 70km north of Martha • Indicated mineral resources of 19.7 million contained silver ounces and 36,000 gold and … • Inferred mineral resources of 48.0 million contained silver ounces and 42,000 gold (see appendix) • Average
Slide 28: Gearing For Record 2011 Performance
Gearing For Record 2011 Performance 2011 production outlook: 20 million ounces of silver 250,000 ounces of gold Actual 1Q results + YTD avg prices for rest of 2011 translate into +$1b of metal sales and +$500m of OCF Metals prices expected to remain volatile & resilient Growth from Roche
Slide 29: Appendices
Appendices 29
Slide 30: Balance Sheet and EBITDA Detail
Balance Sheet and EBITDA Detail in millions of US$ 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 Cash, Equivalents & Short-Term Investments $56.0 $41.2 $32.8 $66.1 $64.4 Short-Term Debt: 1.25% Convertible Senior Notes $0.0 $1.9 $1.9 $1.9 -- Senior Term Notes 33.3 33.3 33.3 15.0 $15.0 Credit Suisse Term Fa
Slide 31: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Adjusted Earnings ADJUSTED EARNINGS RECONCILIATION Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Net income (loss) ($12,858) ($50,743) ($22,628) ($5,079) $12,464 Gain (loss) on sale of net assets of discontinued operations, net of income taxes - 2,978 (883) - - Share b
Slide 32: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation EBITDA EBITDA RECONCILIATION Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Net income (loss) ($12,858) ($50,744) ($22,628) ($5,078) $12,464 Gain (loss) on sale of net assets of discontinued operations, net of income taxes - 2,978 (883) - - Income (loss) from discontinu
Slide 33: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Operating Cash Flow OPERATING CASH FLOW RECONCILIATION Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Cash provided by (used in) operating activities ($9,230) $32,457 $12,939 $129,398 $35,786 Changes in operating assets and liabilities: Receivables and other current ass
Slide 34: Joaquin Mineral Resources
Joaquin Mineral Resources Oxides Tonnes Ave. Grade (grams/tonne) Contained Ounces (000s) Classification (000s) Au Ag Au Ag Indicated 6,785 0.16 77.7 34 16,952 Inferred 11,128 0.09 86.6 32 30,989 Sulfides Indicated 419 0.16 203.5 2 2,741 Inferred 2,667 0.12 197.8 10 16,963 Totals Indicated 7,204 0.16
Slide 35: Raven Q1 2011 Drill Results
Raven Q1 2011 Drill Results Mineralized Intercept (ft) Notes; Q1 2011 Hole Id Au (oz/t) • Drill intercepts from 428 whole-core, HQ-sized From To Length Est. True and NQ-sized core samples analyzed at 121.70 126.00 4.30 3.20 0.06 Inspectorate America Labs in Sparks, Nevada, H10-038 256.60 259.60 3.00