Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q2 2023 Earnings Presentation
61 slides from Coeur Mining's earnings presentation, Aug 10, 2023
Slide 1: 2023 Second Quarter Earnings
2023 Second Quarter Earnings 11:00 a.m. ET, August 10, 2023 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: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights • Rochester expansion near completion: ~97% complete as of July 31 • Solid operating results from Palmarejo, Rochester and Wharf • Reaffirmed silver production guidance; updated gold production guidance • Balance sheet flexibility maintained with $415 million of
Slide 4: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 2Q 2023 1Q 2023 QoQ ∆ 2Q 2022 YoY ∆ Metal Sales Gold ounces sold (oz) 67,090 70,866 (5%) 84,786 (21%) Silver ounces sold (M oz) 2.3 2.6 (10%) 2.5 (8%) Key Financials Revenue $177.2 $187.3 (5%) $204.1 (13%) 1 Explora
Slide 5: Inflationary Cost Pressures
Inflationary Cost Pressures Coeur has continued to experience inflationary pressures with some easing for diesel prices Diesel Cost Per Gallon/% of CAS1 Cyanide Cost Per Pound/% of CAS1 (26%) +10% $4.55 $1.44 $1.43 $1.45 $4.33 $1.37 $4.15 $1.32 $3.62 12% $3.36 11% 11% 10% 4% 4% 9% 4% 4% 3% 2Q 2022 3
Slide 6: Production Summary
Production Summary Full-Year Guidance1 YTD Implied 2Q 2023 (Previous Guidance ) Progress3 2 2H 2023 Comments Gold Production (oz) • Higher average grades quarter-over-quarter 100,000 – 112,500 Palmarejo 23,216 45% 51,666 – 64,166 • Lower mill throughput and average recoveries quarter-over- (100,000
Slide 7: Investing in Organic Growth Opportunities
Investing in Organic Growth Opportunities Capital Expenditures by Mine Capital Expenditures Composition (% companywide total) (% companywide total) 1% 1% 1% 1%0% 9% 7% 10% 14% 12% 28% 39% 2022 2023E1 2022 2023E1 $352M $378M-$432M $352M $378M-$432M 61% 72% 70% 74% Palmarejo Rochester Kensington Susta
Slide 8: Rochester: Expansion Update
Rochester: Expansion Update The Rochester expansion was approximately 97% complete at the end of July 2023 with construction scheduled to be wrapped up in 3Q 2023. First production from new Stage VI leach pad and Merrill-Crowe process plant is expected next month Project Capital Overview Total Estim
Slide 9: Rochester: Expansion Update (cont.)
Rochester: Expansion Update (cont.) Once completed and ramped up, Rochester is expected to become one of the largest open-pit heap leach mines and deliver lower-cost silver and gold ounces at production levels ~2.5x higher than recent rates Expected Mining Ramp-up 2022 2023 2024 Mining Capacity (kto
Slide 10: Rochester: Expansion Construction Update
Rochester: Expansion Construction Update Tremendous progress has been made on POA 11, which is one of the world’s largest open pit/heap leach expansion projects, since construction began in August 2020 300M Ton Stage VI Leach Pad Merrill-Crowe Plant Contingency Ponds Electrical Substation Note: For
Slide 11: Balance Sheet and Hedging Summary
Balance Sheet and Hedging Summary Liquidity Profile1 Debt and Leverage Summary1,2 ($M) ($M) Dec. 31, Mar. 31, Jun. 30, 2022 2023 2023 5.125% senior notes due 2029 369.2 369.4 321.9 $50 $415 $390 Revolving credit facility 80.0 60.0 80.0 $57 $9 $345 $10 $355 $10 ($30) $280 Capital lease obligations 66
Slide 12: Palmarejo Exploration Update
Palmarejo Exploration Update Recent drill results in the Hidalgo deposit at the Company’s Palmarejo gold- silver complex located in Chihuahua, Mexico returned some of the best grade thicknesses in recent years including one assay returning 19 feet at an average gold grade of 1.3 ounces per ton Note:
Slide 13: Looking Ahead: Key Deliverables for 2023
Looking Ahead: Key Deliverables for 2023 • Complete and accelerate ramp-up of the Rochester expansion project • Deliver stronger second-half operational performance at Kensington • Deliver consistent operating and financial results across portfolio while mitigating inflationary cost pressures and
Slide 14: 2023 Guidance
2023 Guidance1 Production Outlook Previous2 Updated Gold (oz) Silver (K oz) Gold (oz) Silver (K oz) Palmarejo 100,000 – 112,500 6,500 – 7,500 100,000 – 112,500 6,500 – 7,500 Rochester 35,000 – 50,000 3,500 – 4,500 35,000 – 50,000 3,500 – 4,500 Kensington 100,000 – 112,500 - 84,000 – 95,000 - Wharf 8
Slide 15: ESG Highlights
ESG Highlights NYSE: CDE 15 JC 2016
Slide 16: What Matters to Coeur
What Matters to Coeur Coeur strives to be an industry leader in ESG, integrating factors into each aspect of its operations, activities and strategic decision-making as the Company looks to the future. The following list includes material environmental, social and governance issues that matter to Co
Slide 17: Recent ESG Accomplishments
Recent ESG Accomplishments Coeur is committed to being an industry leader in its ESG practices Published GHG emissions Tied executive compensation Conducted site-specific target: 35% reduction in net and individual incentive scenario analyses and Committed to compliance intensity by end of 2024 prog
Slide 18: Community Relations: Framework
Community Relations: Framework Coeur's strategic community relations priorities are anchored in the vision of contributing to shared prosperity. This vision sets the tone and direction for each site’s tailored strategy and management plan that align with the company-wide strategy. The Company foster
Slide 19: Community Relations: Second Quarter Highlights
Community Relations: Second Quarter Highlights Each of our sites delivered unique engagement opportunities that resulted in an enhanced knowledge of our industry and operations and meaningfully contributed to local social and environmental community enhancements Hosted legislators for an educational
Slide 20: Appendix
Appendix NYSE: CDE 20 JC 2016
Slide 21: 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 2023E2 Production Ownersh
Slide 22: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,027 $1,023 $948 Capital expenditures $926 $12.97 $15.16 $14.23 $13.94 $855 $12.67 $22.3 $18.9 $18.6 1,795 1,752 27 1,612 26 1,489 1,617 25 25 $12.9 $11.9 23 $10.8 $11.5 $10.1 $1
Slide 23: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which is currently completing a significant expansion that is expected to drive a step-change in production and cash flow Asset Overview Share of Companywide 2023E2 Production Ownership 100% Go
Slide 24: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $1,821 Operating cash flow $1,763 $1,655 $1,646 $92.4 $1,596 Capital expenditures $74.0 $61.5 $20.85 $20.24 $20.39 $18.46 $52.0 $17.60 $47.0 973 745 12 761 689 683 8 9 8 6 ($5.5) ($3.8) ($9.1) ($13.7)
Slide 25: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2023E2 Production Ownership 100% Gold Em
Slide 26: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $2,927 Operating cash flow2 Capital expenditures $11.2 $11.7 $1,775 $10.8 $10.7 $8.8 $9.4 $1,399 $1,455 $7.6 $1,265 $7.1 $5.1 30 28 28 20 13 ($13.6) 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 2Q 2022 3Q
Slide 27: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2023E2 Production Ownership 100% Gold Employees1
Slide 28: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $33.8 $1,466 $1,393 Capital expenditures $1,357 $1,233 $1,035 26 22 20 20 15 $10.3 $10.3 $6.9 $1.9 $0.5 $0.5 $0.8 $0.1 $0.1 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 2Q 2022 3Q 2022 4Q 2
Slide 29: Silvertip
Silvertip The Silvertip exploration project is one of the highest-grade silver-zinc-lead operations in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 74 Claims 98,834 net acres Type Underg
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 30 JC 2016
Slide 31: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Updated Costs Applicable to Sales Guidance for 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $233,198 $183,769 $118,406 Amortization (37
Slide 32: Non-GAAP to U.S. GAAP Reconciliation for Guidance (cont.)
Non-GAAP to U.S. GAAP Reconciliation for Guidance (cont.) Unaudited Previous Costs Applicable to Sales Guidance for 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $240,135 $198,827 $115,365 Amortiz
Slide 33: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended June 30, 2023 ($ 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 $43,950 $29
Slide 34: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2023 ($ 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 $4
Slide 35: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $218,008 $187,
Slide 36: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $55,325 $50,211
Slide 37: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $51,271 $57,68
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2022 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $58,800 $42,914 $48
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 2Q 2023 1Q 2023 2022 4Q 2022 3Q 2022 2Q 2022 Net income (loss) ($32,412) ($24,586) ($78,107) $49,089 ($57,444) ($77,434) Fair value adjustments, net 3,922 (10,561) 66,668 1,396 13,067 62,810 Foreign excha
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 2Q 2023 1Q 2023 2022 4Q 2022 3Q 2022 2Q 2022 Net income (loss) ($32,412) ($24,586) ($78,107) $49,089 ($57,444) ($77,434) Interest expense, net of capitalized interest 6,912 7,389 23,861 8,191 5,932 5,170 Income tax
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 Net income (loss) ($65,353) ($110,375) ($78,107) ($137,956) ($135,280) Interest expense, net of capitalized interest 28,424 26,682 23,861 18,881 16,186 Income tax provisio
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 2Q 2023 1Q 2023 2022 4Q 2022 3Q 2022 2Q 2022 Cash flow from operating activities $39,397 ($35,003) $25,616 $28,516 ($19,117) $22,644 Capital expenditures (85,581) (74,048) (352,354) (113,094) (96,602) (73,156) Free c
Slide 43: Reserves and Resources
Reserves and Resources 2022 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 4,081,000 0.059 4.21 241,000 17,172,000 Rochester Nevada, USA 425,748,000 0.003 0.39 1,079,000 166,172,000 Kensington
Slide 44: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2022 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 4,030,000 0.066 4.39 267,000 17,689,000 Ro
Slide 45: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2022 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 5,633,000 0.067 3.19 380,000 17,948,000 Rochester Nevada, USA 77,001,000 0.00
Slide 46: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2022 Mineral Reserves: (1) The Mineral Reserve estimates are current as of December 31, 2022 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 2022 Mineral Resources: (1) Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2022, 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 2022 Mineral Resources (cont.): (9) 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, indi
Slide 49: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 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 3,754,000 0.066 4.39 247,000 16,480,000 Rochester Nevada, USA 386,008,
Slide 50: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 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 3,696,000 0.053 3.89 195,000 14,373,000 Ro
Slide 51: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2021 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 4,713,000 0.052 3.70 246,000 17,453,000 Rochester Nevada, USA 128,410,000 0.0
Slide 52: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Reserves: (1) The Mineral Reserve estimates are current as of December 31, 2021 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 53: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 Mineral Resources: (1) Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2021, and are reported using definitions in SK1300 on a 100% ownership basis. Mineral Resource estimates were prepared by the Comp
Slide 54: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2021 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 55: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 1,571,000 0.073 3.81 115,000 5,978,000 Rochester Nevada, USA 195,724,000 0.003 0.45 598,000 87,518,000 Kensing
Slide 56: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 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 629,000 0.051 3.07 32,000 1,928,000 Roches
Slide 57: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2017 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 7,336,000 0.050 4.23 369,000 31,061,000 Rochester Nevada, USA 131,570,000 0.0
Slide 58: 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 59: 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 60: 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 61: 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 Jeff Wilhoit Director, Investor Relations investors@coeur.com NYSE: CDE 61 JC 2016