Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Shareholder Meeting (April 2021)
47 slides from Coeur Mining's shareholder meeting presentation, Apr 23, 2021
Slide 1: 2021 Proxy Statement Highlights
2021 Proxy Statement Highlights April – May 2021
Slide 2: Forward-looking statements
This presentation contains forward‐looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding executive compensation program components and environmental, social and governance (“ESG”) initiatives and expectations regarding Coeur’s
Slide 3: Reserves, Resources and Mineralized Material
Reserves, Resources and Mineralized MaterialCoeur is subject to the reporting requirements of the Securities Exchange Act of 1934 and applicable Canadian securities laws, and as a result we report our mineral reserves according to two different standards. Canadian reporting requirements for disclosu
Slide 4: Additional information on proxy solicitation
In connection with the solicitation of proxies, Coeur Mining, Inc. (“Coeur”) filed with the SEC and mailed to stockholders a definitive proxy statement dated March 30, 2021 (the “Proxy Statement”). The Proxy Statement contains important information about Coeur and its 2021 Annual Stockholders’ Meeti
Slide 5: Relevant Terms
Relevant Terms We use the following terms in this presentation and in the Proxy Statement to describe our operations and results, some of which are non-GAAP financial measures. Please see the applicable non-GAAP reconciliation tables in the appendix to this presentation Adjusted EBITDA Earnings befo
Slide 6: 2021 Annual Stockholders' Meeting Voting Matters
2021 Annual Stockholders’ Meeting 6 Voting Matters Proposal Coeur Board Voting Recommendation 1 Election of the 9 directors named in the proxy statement FOR each nominee 2 Ratification of the appointment of Grant Thornton LLP as Coeur’s independent registered public accounting firm for 2021 FOR 3 Ap
Slide 7: Company Overview
Headquartered in Chicago, IL, Coeur Mining (NYSE: CDE) is a well-diversified, growing precious metals producer with a repositioned portfolio, focused on generating sustainable, high-quality cash flow from its North American assets Company Overview Palmarejo Rochester Wharf Silvertip Kensington Corpo
Slide 8: Key Messages
Key Messages RebuiltFoundation Industry Leader in ESG Transformational Expansion at Rochester High-Impact Exploration Growth Silvertip PotentialRestart RobustThree-Year Outlook Coeur has established a healthy culture, developed a solid strategy, and assembled a strong, aligned team to deliver consis
Slide 9: Compelling Strategy Aligned with Stockholder Priorities
Coeur’s strategy is to safely and responsibly discover, develop and operate abalanced portfolio of quality precious metals assets in low-risk jurisdictions to maximize cash flow, returns and net asset value Compelling Strategy Aligned with Stockholder Priorities Free cash flow is defined as cash flo
Slide 10: Human Capital Management
Coeur recognizes that people are the key to achieving our strategic goals:Our culture values ethics, diversity, safety, protection of the environment and achievement of our strategic goalsWe seek to recruit, retain and develop employees at all levels who embody our purpose statement and are aligned
Slide 11: Responsibility
Responsibility Corporate Secretary’s Corporate Governance Awards. We continued to advance our ESG initiatives in 2020, including publishing our inaugural Responsibility Report, building on our commitment to Diversity, Equity and Inclusion, progressing climate change initiatives and protecting critic
Slide 12: Qualified, Diverse Board Nominees
Qualified, Diverse Board Nominees Our Board, which includes a diverse mix of tenures, experiences and skills, is led by an independent chairman, and eight of nine directors are independent
Slide 13: Qualified, Diverse Board Nominees (cont.)
Qualified, Diverse Board Nominees (cont.)
Slide 14: Governance & Executive Comp. Continuous Improvement
Governance & Executive Comp. Continuous Improvement National Association of Corporate Directors
Slide 15: 2020 Performance Highlights
2020 Performance Highlights See non-GAAP reconciliation tables in the appendix to this presentation. In 2020, we navigated the unprecedented challenges created by COVID-19 and delivered strong financial and operating results while advancing key strategic initiatives to unlock long-term value for sto
Slide 16: 2020 Performance Highlights (cont.)
2020 Performance Highlights (cont.) ► Continued Strong Environmental, Health and Safety Results – Coeur’s commitment to Pursue a Higher Standard led to another year of improved safety and environmental performance. We continued a multi-year trend of companywide reduction in employee and contractor T
Slide 17: 2020 Performance Highlights (cont.)
2020 Performance Highlights (cont.) ► Key Milestones in Rochester POA 11 Expansion1 – The Company made significant progress on the POA 11 expansion project at the Rochester mine. During 2020, the Company received key permits for the project, advanced engineering and procurement work, began early-sta
Slide 18: 2020 Executive Compensation Philosophy
2020 Executive Compensation Philosophy The three internal performance share metrics are subject to a relative TSR modifier that adjusts payouts +/- 25% for top or bottom quartile performance compared to peers.Tied to achievement of Rochester and Silvertip expansion projects (split 20% Rochester and
Slide 19: 2020 Executive Compensation Practices
2020 Executive Compensation Practices
Slide 20: 2020 CEO Compensation Tied to Stockholder Returns
2020 CEO Compensation Tied to Stockholder Returns 57% of compensation linked to stock performance (Based 100% on Company Performance)
Slide 21: 2020 Compensation Results Aligned with Performance
2020 Compensation Results Aligned with Performance
Slide 22: 2020 Compensation Results Aligned with Performance (cont.)
2020 Compensation Results Aligned with Performance (cont.)
Slide 23: 2020 Executive Compensation – Actual Pay Compared to Target
2020 Executive Compensation – Actual Pay Compared to Target Coeur’s multiyear performance-linked pay aligned with stockholder returns Our NEO compensation program is structurally designed to be a strong performance-based program. In the case of the CEO, 81% of his target compensation is structured t
Slide 24: Continued Strong Stockholder Engagement in 2020
Continued Strong Stockholder Engagement in 2020
Slide 25: Select Compensation Program Changes for 2020 and 2021
Select Compensation Program Changes for 2020 and 2021 Two new performance share metrics were introduced for the 2020 LTIP award: three-year ROIC and achievement of milestones related to the Rochester and Silvertip expansion projects, which are both strategically critical long-term projects. The 2020
Slide 26: Risk Oversight
Risk Oversight The Board is responsible for overseeing management’s mitigation of major risks facing Coeur, including, but not limited to: In addition, the Board has delegated oversight of certain categories of risk to the Audit Committee, the Environmental, Health, Safety and Corporate Responsibili
Slide 27: ESG Highlights
ESG Highlights
Slide 28: What Matters to Coeur
What Matters to Coeur Environmental Climate ChangeGreenhouse Gas EmissionsWater StewardshipWaste MinimizationBiodiversity Tailings ManagementClosure PlanningSocialHuman Capital ManagementFair Employment Practices and Equal OpportunityTraining and DevelopmentHealth, Safety & SecuritySocietyInvestment
Slide 29: Community Relations & Indigenous Rights
Community Relations & Indigenous Rights The Company has the highest regard for the dignity, well-being and rights of the communities in which it operates, as well as all of its indigenous partners. Coeur is proud of the relationships it has built, the agreements it has in place and looks forward to
Slide 30: Benefits of Community Agreements
Benefits of Community Agreements Coeur’s community agreements lay the foundation for strong partnerships and shared benefits between the Company and its community partners Selected Examples of Key Benefits Preferential Hiring Scholarships Right to Bid for Contracts Direct Payments Business Developme
Slide 31: Precious Metals Are Core to Everyday Life
Coeur is an important part of the supply chains for gold and silver. Due to their unique properties, gold and silver have countless innovative uses that shape the way we live today and enable a more sustainable, healthier tomorrow Precious Metals Are Coeur to Everyday Life Source: Mining Association
Slide 32: Committed to Diversity and Inclusion
Committed to Diversity and Inclusion First and only precious metals mining CEO to sign the CEO ACTION for Diversity & Inclusion pledgeHosted a Day of Understanding in early 2020Created platform for open dialogue and meaningful conversations on diversity and inclusionPlanning second Day of Understand
Slide 33: COVID-19 Response and Decision-Making Approach
Coeur’s principal objective to help combat COVID-19 is to safeguard the health, safety and well-being of its workforce, their families and the communities where the Company operates COVID-19 Response and Decision-Making Approach Guidance from key agencies U.S. Centers for Disease Control and Prevent
Slide 34: Activities to Protect People and Places During COVID-19
Activities to Protect People and Places During COVID-19 People Social distancing and enhanced cleaningMultilayered testing strategyTraditional contact tracing complemented by wearable technologyRemote work for office employeesOnly essential business travelPre-work and on-site health screeningsRegula
Slide 35: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has held the National Mining Association CORESafety certification since 2017 Lost-Time Injury Frequency Rate Source(s): U.S. Department of Labor Mine Safety and Health Administration (MSHA): Metal Operators Mine Safety and Health Statistics. Injuries per 200
Slide 36: Demonstrating Our Commitment: Governance Practices
Demonstrating Our Commitment Governance Practices Stockholder Rights Annual Election of DirectorsAll directors are elected annually for one-year termsMajority Voting for Director ElectionsMajority voting in uncontested director elections with a resignation policyStockholder Right to Call Special Mee
Slide 37: Appendix
Appendix
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Adjusted EBITDA Unaudited ($ thousands) 2020 2019 Net income (loss) $25,627 ($341,203) Income (loss) from discont. ops., net of tax - (5,693) Interest expense, net of capitalized interest 20,708 24,771 Income tax provision (benefit) 37,045 (11,129) Amorti
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) ($ thousands) 2020 2019 Cash flow from operating activities $148,709 $91,880 Capital expenditures (99,279) (99,772) Free cash flow $49,430 ($7,892) Unaudited Free Cash Flow Unaudited Costs Applicable to Sales12 months ended December 31, 2020 ($ thousands,
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Costs Applicable to Sales12 months ended December 31, 2019 ($ thousands, except metal sales,per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $201,
Slide 41: Reserves and Resources
Reserves and Resources 2020 Proven and Probable Mineral Reserves Location Short tons Grade Contained Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) PROVEN RESERVES Palmarejo Mexico 4,040,000 0.067 4.29 270,000 17,344,000 Rochester Nevada, USA 396,867,000 0.00
Slide 42: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 Measured and Indicated Mineral Resources (excluding Reserves) Location Short tons Grade Contained Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 1,840,000 0.052 3.67 95,000 6,746,000 Roch
Slide 43: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 Inferred Mineral Resources Notes to 2020 mineral reserves and resources:Effective December 31, 2020.Assumed metal prices for Mineral Reserves were $17.00 per ounce of silver, $1,400 per ounce of gold, $1.15 per pound zinc, $0.95 per pound lead.Assumed metal prices
Slide 44: 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 45: 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 in August 2020. Previously Mr. Mellor was lead independent director from April 2011 to June 2017 and a member of the board of
Slide 46: Board of Directors (cont.)
Board of Directors (cont.) Jessica L. McDonald – Ms. McDonald has extensive leadership experience in both the public and private sectors and currently serves as a member of the Board of Directors of Hydro One Limited. She served as the President and Chief Executive Officer of BC Hydro and Power Auth
Slide 47: Contact Information
Contact Information Corporate Office Coeur Mining, Inc.104 S. Michigan Ave., Suite 900Chicago, IL 60603 Main Telephone +1 (312) 489-5800 Stock Ticker CDE: NYSE Website www.coeur.com Contact Paul DePartoutDirector, Investor Relationsinvestors@coeur.com