Slide 1: 2020 First Quarter Earnings
2020 First Quarter Earnings 11:00 a.m. ET, April 23, 2020 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 involving strategic priorities and company strategies, expectations regarding environmental, social and governance (“ESG”) in
Slide 3: First Quarter 2020 Highlights
First Quarter 2020 Highlights • Established special cross-functional advisory committee to oversee proactive COVID-19 planning and response • Results reflect Company’s strategy of operating a balanced portfolio of precious metals assets in attractive jurisdictions with a unique revenue mix • Another
Slide 4: COVID-19 Preparedness and Response
COVID-19 Preparedness and Response Coeur has formed a multi-disciplinary internal committee to evaluate and address ongoing concerns, risks and challenges associated with COVID-19. All its operations have also developed site-specific screening, education and modifications to work procedures to limit
Slide 5: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 1Q 2020 4Q 2019 QoQ Δ 1Q 2019 YoY Δ Metal Sales Gold ounces sold (oz) 85,635 95,532 (10%) 85,326 0% Silver ounces sold (M oz) 2.7 3.3 (19%) 2.6 3% Zinc pounds sold (M lbs) 3.2 4.1 (21%) 4.7 (32%) Lead pounds sold (M
Slide 6: Production Summary
Production Summary 1Q 2020 4Q 2019 QoQ Δ 1Q 2019 YoY Δ Gold Production (oz) • Improved gold recoveries in 1Q 2020 Palmarejo 31,578 28,702 10% 23,205 36% • Complying with decree from Federal Government of Mexico • Comparatively lower gold grades in 1Q 2020 Rochester 5,936 10,634 (44%) 8,256 (28%) • S
Slide 7: U.S. Assets & Gold Remain Largest Share of Metal Sales
U.S. Assets & Gold Remain Largest Share of Metal Sales The Company’s sales mix reflects its strategy of operating a balanced portfolio of precious metals operations in attractive jurisdictions. Gold sales and U.S. operations continued to represent the largest share of 1Q 2020 revenue 1Q 2020 Metal S
Slide 8: Rochester: Looking Ahead to the Next Phase of Growth
Rochester: Looking Ahead to the Next Phase of Growth Coeur exceeded its throughput target for the new crushing circuit and achieved a major permitting milestone in 1Q 2020. Planning for the expansion is underway with construction expected to begin in 3Q 2020. Additionally, the Company expects to fil
Slide 9: Coeur's Capital Allocation Framework
Coeur’s Capital Allocation Framework Mining is capital intensive and requires a disciplined approach to capital allocation with a view toward long-term reserve replacement and growth Illustrative Investment Return Key Benefits Key Considerations ✓ Reflects the Company’s values Safety/Environment/ −
Slide 10: Balance Sheet Summary
Balance Sheet Summary 1 Dec. 31, March 31, 2020 Liquidity Profile $M 2019 Reported D Adjusted ($M) 5.875% senior notes due 2024 $226.9 $227.1 $- $227.1 $305.6 Revolving credit facility - 50.0 100.0 150.0 $252.9 $252.9 Capital lease obligations 68.6 66.0 - 66.0 100.0 TOTAL DEBT $295.5 $343.1 $100.0 $
Slide 11: Overview of Hedging Program
Overview of Hedging Program Coeur’s hedging strategy is designed to support cash flow generation and help fund key internal growth projects. The Company has expanded its gold hedging program and implemented a series of foreign currency hedges to further enhance its downside protection Summary of Met
Slide 12: Looking Ahead
Looking Ahead • Safeguard health, safety and well-being of workforce and communities ✓ • Further advance progress on success-based exploration programs ✓ • Increase production and begin executing strategy to expand Rochester ✓ • Evaluate mill upgrade and expansion opportunities at Silvertip ✓ • Safe
Slide 13: ESG Highlights
ESG Highlights NYSE: CDE 13 JC 2016
Slide 14: What Matters to Coeur
What Matters to Coeur Environmental • Training and Development • Climate Change • Health, Safety & Security • Green House Gas Emissions Society • Water Stewardship • Investment in Local Communities • Waste Minimization • Indigenous Rights • Biodiversity • Human Rights • Tailings Management Governanc
Slide 15: Community Support for COVID-19
Community Support for COVID-19 The health and safety of the Company’s workforce, their families and communities remains Coeur’s top priority. Across its footprint, the Company is providing ongoing support to limit the exposure and transmission of COVID-19, and care for those who have been impacted H
Slide 16: Community Support for COVID-19 (cont.)
Community Support for COVID-19 (cont.) • Donated individual-sized hand sanitizers to Project CURE, the world’s largest distributor of medical donations to resource-limited communities across the globe and currently focusing on the USA for COVID-19 response Corporate • Matching employee donations to
Slide 17: Community Support for COVID-19 (cont.)
Community Support for COVID-19 (cont.) • Donating N95 masks and gloves to the Deadwood, Sturgis and Spearfish hospitals as shipments come in • Donated paper goods and feminine products to Youth and Family Services, supporting families below the Wharf poverty line with items in high demand (South Dak
Slide 18: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has held the National Mining Association CORESafety certification since 2017 Coeur’s injury frequency rate remains significantly below industry averages Lost-Time Injury Frequency Rate Total Reportable Injury Frequency Rate Industry average1 Industry average
Slide 19: 2019 International EHS Innovation Award Winner
2019 International EHS Innovation Award Winner Coeur is committed to being an industry leader in environmental, health and safety innovation, exemplified through the Company’s utilization of technology to protect its people, places and planet Technology Implementation at Coeur Global EHS • Real time
Slide 20: Demonstrating Our Commitment
Demonstrating Our Commitment Best-in-Class Governance Practices Board Refreshment and • Three new independent directors added to the Board since early 2018 and six Succession Planning directors – more than 50% of the Board – added in last seven years • Active Board succession planning and refreshmen
Slide 21: Significantly Improved Corporate Governance Profile
Significantly Improved Corporate Governance Profile Corporate Governance Enhancements Since 2010 2010 2020 Independent Board Chairman Entire Board of Directors is independent other than CEO Gender diversity on the Board Majority voting standard for uncontested Director elections Prox
Slide 22: 2019 CEO Compensation Tied to Stockholder Returns
2019 CEO Compensation Tied to Stockholder Returns Base Salary 19% Performance Shares 57% of compensation 34% linked to stock performance AIP 24% Restricted (Based 100% on Stock Company Performance) 23% NYSE: CDE 22 JC 2016
Slide 23: 2019 Incentive Plan Aligned with Strategic Objectives
2019 Incentive Plan Aligned with Strategic Objectives & Purpose Statement TRIFR % reduction PROTECT AIP1 15% % reduction in significant spills DEVELOP Three-Year Growth in Reserves and PSUs2,3 50% Resources from Continuing Operations Costs Applicable to Sales AIP 60% Adjusted EBITDA DELIVER Three-Ye
Slide 24: Diverse Board Led by Independent Chair
Diverse Board Led by Independent Chair • Nine out of ten Directors are independent (all except CEO); all four main committees comprised of independent directors only • One new director elected in March 2019 and two new directors elected in February 2018 having skills and experiences that complement
Slide 25: Diverse Board Led by Independent Chair (cont.)
Diverse Board Led by Independent Chair (cont.) Diversity Tenure Independence NYSE: CDE 25 JC 2016
Slide 26: Appendix
Appendix NYSE: CDE 26 JC 2016
Slide 27: Palmarejo
Palmarejo Ownership 100% Claims 112,520 net acres Type Underground Crushing, grinding, flotation, CIL, Processing Merrill-Crowe precipitation, refining Metals Silver and gold doré Mine life ~7 years Palmarejo Chihuahua, Northern Mexico 2015 & 2019 Reserves & Resources 1 P&P Reserves M&I Resources In
Slide 28: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $741 $713 Operating cash flow $41.4 $660 $645 Capital expenditures $622 $36.3 $9.66 $9.17 $8.95 $8.79 $28.9 $8.37 2,029 32 32 1,835 28 1,735 1,720 29 23 $15.6 1,278 $8.7 $7.6 $7.8 $8.6 $7.1 $5.9 1Q 20
Slide 29: Rochester
Rochester Ownership 100% Claims 16,494 net acres Type Open pit and heap leach Crushing, dump heap leaching, Processing Merrill-Crowe precipitation, refining Metals Silver and gold doré Rochester Mine life ~15 years Nevada, U.S. 2015 & 2019 Reserves & Resources P&P Reserves M&I Resources Inferred Res
Slide 30: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,359 Capital expenditures $1,230 $1,153 $1,142 $10.2 $1,092 $8.3 $14.24 $14.38 $6.9 $12.83 $13.19 $13.25 $5.0 $5.1 $4.6 $2.8 $1.6 960 971 982 848 ($1.0) 11 687 8 9 8 6 ($9.3) 1Q
Slide 31: Review of HPGR Technology
Review of HPGR Technology HPGR technology is relatively new to precious metals mining, although it has been proven in processing other materials. The implementation of HPGR at Rochester is expected to improve silver recoveries and lower operating costs HPGR Schematic 1 Selected Commentary Feed • Fee
Slide 32: Kensington
Kensington Ownership 100% Claims 12,336 net acres Type Underground Processing Crushing, grinding, flotation Kensington processing Alaska, U.S. Metals Gold concentrate Mine life ~3 years 2015 & 2019 Reserves & Resources 1 P&P Reserves M&I Resources Inferred Resources 762 690 518 560 358 366 2015 2019
Slide 33: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures 2 ($M) Operating cash flow $990 $976 Capital expenditures $928 $19.2 $18.9 $842 $822 $16.4 $15.2 34 34 32 30 30 $9.4 $6.2 $4.9 $4.9 $4.3 $4.8 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 1Q 2019 2Q 2019 3Q 201
Slide 34: Wharf
Wharf Ownership 100% Claims 7,852 net acres Type Open pit and heap leach Crushing, “on-off” heap leaching, Processing spent ore neutralization, carbon absorption/desorption Wharf South Dakota, U.S. Metals Electrolytic cathodic sludge Mine life ~7 years 2015 & 2019 Reserves & Resources 1 P&P Reserves
Slide 35: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $1,090 Operating cash flow $1,002 Capital expenditures $949 $17.6 $17.0 $887 $802 26 26 17 16 16 $4.2 $2.6 $0.4 $0.5$0.2 $0.8 $0.8 $0.4 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 1Q 2019 2Q 2019 3Q 2019 4Q 2
Slide 36: Silvertip
Silvertip Ownership 100% Claims 90,156 net acres Type Underground Silvertip British Columbia, Canada Crushing, grinding, flotation Processing processing, concentrate thickening Metals Lead concentrate, zinc concentrate Mine life ~5 years 2018 & 2019 Reserves & Resources 1 P&P Reserves M&I Resources
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 37 JC 2016
Slide 38: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended March 31, 2020 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $49,149 $19,860 $42,429 $20,267 $23,002 $1
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2019 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $201,306 $118,246 $170,194 $92
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2019 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $49,590 $31,100 $41,537 $29,818
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2019 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $53,237 $31,999 $43,085 $25,38
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2019 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $50,708 $28,656 $41,670 $17,691 $36
Slide 43: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2019 ($ thousands, except per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $47,772 $26,491 $43,902 $20,073 $3
Slide 44: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 1Q 2020 2019 4Q 2019 3Q 2019 2Q 2019 1Q 2019 2018 2017 2016 Net income (loss) ($11,900) ($341,203) ($270,961) ($14,277) ($36,764) ($19,201) ($48,405) ($1,319) $55,352 Income (loss) from discont. ops., net
Slide 45: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 1Q 2020 2019 4Q 2019 3Q 2019 2Q 2019 1Q 2019 2018 2017 2016 Net income (loss) ($11,900) ($341,203) ($270,961) ($14,277) ($36,764) ($19,201) ($48,405) ($1,319) $55,352 Income (loss) from discont. ops., net of tax - (
Slide 46: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 1Q 2020 2019 4Q 2019 3Q 2019 2Q 2019 1Q 2019 2018 2017 2016 Cash flow from operating activities ($7,991) $91,880 $39,295 $41,996 $26,435 $(15,846) $20,108 $197,160 $96,461 Capital expenditures (22,208) (99,772) (20,9
Slide 47: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Leverage Ratios LTM Adjusted EBITDA Consolidated Debt ($ thousands) 1Q 2020 4Q 2019 1Q 2020 1Q 2020 ($ thousands) Adjusted Reported 4Q 2019 Net income (loss) ($333,902) ($341,203) Cash and cash equivalents $152,895 $52,895 $55,645 (Income) loss
Slide 48: Reserves and Resources
Reserves and Resources 2019 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) PROVEN RESERVES Palmarejo Mexico 1,093,000 0.093 5.17 102,000 5,649,000 Rochester Nevada, USA 249,815,000 0.003
Slide 49: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2019 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) MEASURED RESOURCES Palmarejo Mexico 870,000 0.055 3.69 48,000 3,210,000 Roches
Slide 50: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2019 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 6,469,000 0.057 4.07 367,000 26,341,000 Rochester Nevada, USA 171,042,000 0.0
Slide 51: Reserves and Resources (cont.)
Reserves and Resources (cont.) 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) PROVEN RESERVES Palmarejo Mexico 1,283,000 0.084 4.97 108,000 6,376,000 Rochester Nevada, USA 228,413,0
Slide 52: 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) MEASURED RESOURCES Palmarejo Mexico 604,000 0.086 4.77 52,000 2,880,000 Roches
Slide 53: 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 54: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2015 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) PROVEN RESERVES Palmarejo Mexico 802,000 0.077 6.29 62,000 5,048,000 Rochester Nevada, USA 96,520,000 0
Slide 55: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2015 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) MEASURED RESOURCES Palmarejo Mexico 134,000 0.052 4.86 7,000 651,000 Rochester
Slide 56: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2015 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 1,721,000 0.085 4.79 147,000 8,240,000 Rochester Nevada, USA 59,597,000 0.003
Slide 57: 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 58: 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 59: Board of Directors (cont.)
Board of Directors (cont.) Jessica L. McDonald – Chair (former Interim CEO) of Canada Post Corporation and member of Board of Directors of Hydro One Limited. Ms. McDonald is also a Mentor at the Trudeau Foundation, was a visiting fellow at the Steyer-Taylor Center for Energy Policy and Finance at St
Slide 60: 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 Paul DePartout Director, Investor Relations investors@coeur.com NYSE: CDE 60 JC 2016