Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Coeur d'Alene Mines — Merger or Acquisition (May 2007)
29 slides from Coeur Mining's merger presentation, May 7, 2007
Slide 1: Creating the World Leader in Silver
Creating the World Leader in Silver May 2007 NYSE: CDE TSX: CDM www.coeur.com 1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States and Canada. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Coeur’s control. Operating, exploration and financ
Slide 3: Cautionary Statement
Cautionary Statement Scientific and technical information in this presentation relating to the Palmarejo project was prepared under the supervision of Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is also a director of Bolnisi Gold NL. Mr. Phillips is a qualified person under NI
Slide 4: Additional Information
Additional Information The proxy statement that Coeur plans to file with the United States Securities and Exchange Commission (“SEC”) and mail to its shareholders will contain information about Coeur, Bolnisi, Palmarejo, the Palmarejo Project, the proposed Transaction and related matters. Shareholde
Slide 5: The Leader in Silver
The Leader in Silver • Leading Primary Silver Production - 31.6 million ounces expected in 2009 (48.6 million ounces silver equivalent)1 • Leading Primary Silver Growth Profile - 47.1% over the next 2 yrs – greater than 3X the growth of nearest peer • Leading Resource Base – 90% larger than nearest
Slide 6: The Leader in Silver
The Leader in Silver • Strong Balance Sheet to Finance Growth without dilution • No Silver Hedging • Assets Located in the Americas and Australia • Experienced Management – exploration, development and open-cut and underground operating expertise • The “Go-To” Silver Stock 6
Slide 7: Leading Silver Production
Leading Silver Production New Coeur will be the World’s largest Primary Silver Producer 50 48.6 45 40 35 30 24.7 25 20.8 20 15.4 15 31.6 23.5 Silver Equivalent 10 20.8 2009 Silver Production (M oz)1 5 6.6 Silver - New Coeur Pan American Silver Wheaton 2 Hecla Gold Production (koz) 288 20 - 153 Note:
Slide 8: Leading Growth Profile
Leading Growth Profile The leading growth company in both Silver and Silver Equivalent 60% 52.3% 50% Silver Equivalent 40% 30% 47.1% Silver 20% 17.2% 10% 14.4% 13.7% Primary Silver Production (2007E-2009E)1,2 0.0% 0% New Coeur New Coeur Pan American Silver Wheaton Hecla 3 Note: 1. Analyst estimates,
Slide 9: Leading Silver Resource Base
Leading Silver Resource Base New Coeur has the largest precious metals resources base of its peer group 800 700 152.6 600 500 249.6 400 M oz Ag Eq 300 564.1 200 73.4 Inferred 294.8 100 Silver Equivalent Resource (M 0z)1 160.0 Measured and Indicated 0 Coeur New Coeur Pan American Hecla Gold Resources
Slide 10: Leading Liquidity
Leading Liquidity New Coeur will be the most liquid silver stock 45 60 Volume (LHS) Days to turn float (RHS) 40 55 35 50 30 45 25 40 20 Days for 1 turn of float 35 15 Average Daily Trading Volume (US$m) 10 30 New Coeur New Coeur Pan American Silver Silver Wheaton Hecla Source: Bloomberg 1. Liquidity
Slide 11: Low Cost Silver Producer
Low Cost Silver Producer New Coeur will have cash costs of less than US$2 per ounce 5.0 4.74 4.5 4.00 4.0 3.85 3.5 3.0 2.5 2.34 2.0 1.79 1.5 1.0 0.5 Silver Cash Cost after credits (2009E) 0.0 1 New Coeur New Coeur Pan American Old Coeur 2 Silver Hecla 2 Silver 2 Wheaton 2 Sources: 1. Coeur managemen
Slide 12: Strong Balance Sheet to Finance Growth
Strong Balance Sheet to Finance Growth New Coeur has the capacity to finance new mines without dilution 400 382 350 119 300 250 78 200 US$m 39 146 150 100 50 0 Pro-forma Cash San Bartolome Kensington Palmarejo Cash Remaining 4 and equivalents Capital 2 Capital 2 Capital 3 as at 31 Dec 2006 1 Notes:
Slide 13: Assets located in the Americas
Assets located in the Americas • Well diversified portfolio generally located in preferred mining jurisdictions primarily the Americas • Merger adds strategic land position in Mexico’s premier silver district Palmarejo, Mexico Kensington Project, Alaska Ag Au Ag Eq Ag Au Ag Eq koz Koz Koz Koz Koz Ko
Slide 14: Transaction Summary
Transaction Summary Consideration Offered1: 271.3 million Coeur shares Total transaction value of approx US$1.1 billion % Ownership 50.6:49.4 Premium of 14% to the 60 day volume weighted average price of Bolnisi shares Premium of 32% to the 60 day volume weighted average price of Palmarejo
Slide 15: Anticipated Transaction Timetable
Anticipated Transaction Timetable Key Milestones Indicative Dates • Mailing of information to Coeur, Bolnisi, and • Mid-late June Palmarejo shareholders • Coeur shareholder meeting • Mid-late July • Bolnisi shareholder meeting • Late July • Palmarejo shareholder meeting • Late July • Anticipated clo
Slide 16: Palmarejo – A World Class Silver Project in Mexico
Palmarejo – A World Class Silver Project in Mexico 16
Slide 17: Palmarejo – A World Class Silver Asset
Palmarejo – A World Class Silver Asset • Expected to be one of the world’s largest and lowest cost primary silver mines • Located in prolific Sierra Madre belt in Mexico – the world’s largest primary silver producing country • Construction fully permitted and underway – substantial capital already s
Slide 18: World Class Asset in a Proven Silver Region
World Class Asset in a Proven Silver Region Sierra Madre Precious Metals Belt Dolores Piños Altos Mulatos Ocampo Palmarejo El Sauzal Alamo Dorado Sisa Luismin Guanacevi Fresnillo Juanicipio 18
Slide 19: Palmarejo – A World Class Silver Asset
Palmarejo – A World Class Silver Asset Current Resources: Measured and Indicated: ¾ 89.3 M oz Ag ¾ 1.0 M oz Au ¾ 146.6 M oz Ag Eq Inferred: ¾ 41.5 M oz Ag ¾ 0.5 M oz Au ¾ 70.7 M oz Ag Eq Estimated Annual Production1: 18.5 M oz Ag Eq (pre-optimization plan) 12 M oz silver 110,000 oz gold Es
Slide 20: Palmarejo – Project Plan
Palmarejo – Project Plan • Plant design and engineering complete for a 2Mtpa open pit operation • Construction underway since September 2006 • US$50.4m committed or spent to date • Long lead time items have been purchased • Optimization plan to be initiated prior to transaction’s closing – Combined
Slide 21: Expanding Quality and Size
Expanding Quality and Size • Silver resources have increased by 47% since September 2005 • Currently over 2/3 of resources are measured and indicated 250 Inferred Measured & Indicated 200 70.7 150 94.6 100 195.4 146.6 50 99.4 Silver equivalent Resource (M oz) 64.5 0 June, 2004 October, 2004 Septembe
Slide 22: Large Land Package With Excellent Potential
Large Land Package With Excellent Potential Current • Historic gold/silver mining Mine Site district • Holdings cover ~12,100 hectares • Mine located on one of 14 silver targets on the property • Since drilling commenced in Nov 2003 Palmarejo has proved up a resource of M&I:146 Moz Ag Eq and Inferre
Slide 23: Benefits of Transaction
Benefits of Transaction • Positions Coeur as the undisputed leader in silver • Coeur gains an important strategic position in Mexico – the world’s leading primary silver mining jurisdiction • Production growth of 47.1% by 2009 • 53% reduction in Coeur’s expected 2009 cash costs after credits1 • Adds
Slide 24: The Leader in Silver
The Leader in Silver • Leading Silver Production • Leading Growth Profile • Leading Resource Base • Leading Liquidity • Substantial Reduction in Cash Costs • Strong Balance Sheet to Finance Growth • 100% Leverage to Silver Prices • THE “GO – TO” SILVER STOCK 24
Slide 25: Reserves: Coeur
Reserves: Coeur Proven Mineral Reserves (Year-end 2006) Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 3,720 0.66 0.007 2,436 26 Cerro Bayo Chile 375 10.41 0.20 3,902 75 Martha Argentina 33 64.05 0.10 2,118 3 San Bartolome Bolivia - -
Slide 26: Resources: Coeur
Resources: Coeur Measured Mineral Resource (Year-end 2006) Short Grade (ounces/ton) Ounces (000s) Property Location Tons (000s) Silver Gold Silver Gold Rochester Nevada, USA 12,304 0.94 0.01 11,598 88 Cerro Bayo Chile 455 9.38 0.17 4,267 75 Martha Argentina 19 39.44 0.06 739 1 San Bartolome Bolivia
Slide 27: Resources: Coeur
Resources: Coeur Inferred Mineral Resource (Year-end 2006) Short Grade (ounces/ton) Ounces (000s) Property Location Tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA - - - - - Cerro Bayo Chile 1,328 9.00 0.16 11,944 208 Martha Argentina 63 45.76 0.05 2,875 3 San Bartolome Bolivia 1,096 3.52
Slide 28: Resources: Palmarejo
Resources: Palmarejo Resources Palmarejo1 Guadalupe2 La Patria3 Silver (Oz) Gold (Oz) Silver (Oz) Gold (Oz) Silver (Oz) Gold (Oz) Measured & Indicated 89,260,000 971,000 Inferred 17,930,000 169,000 19,570,000 155,000 4,030,000 171,000 Total 107,190,000 1,140,000 19,570,000 155,000 4,030,000 171,000
Slide 29: Creating the World Leader in Silver
Creating the World Leader in Silver May 2007 NYSE: CDE TSX: CDM www.coeur.com 29
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