Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Shareholder Meeting (April 2017)
26 slides from Coeur Mining's shareholder meeting presentation, Apr 5, 2017
Slide 1: 2017 Proxy Statement Highlights April – May 2017
2017 Proxy Statement Highlights April – May 2017
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 statements regarding development at the Palmarejo complex, expansion at Rochester, development at Kensington, reserve and measured and in
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: Important Additional Information
Important Additional Information 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 29, 2017 (the “Proxy Statement”). The Proxy Statement contains important information about Coeur and it
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 non-GAAP reconciliation tables in the appendix to this presentation. Term Definition AIP Annual incentive plan A
Slide 6: 2016 Performance Highlights
2016 Performance Highlights 2016 TSR of 267%, the highest in our peer group2016 gold and silver production was a record 36.3 million AgEqOz, an increase of over 2% year-over-yearAISC per average spot AgEqOz(1) of $14.27, representing the third straight year of significant reductions in unit costs an
Slide 7: 2016: Repositioning Demonstrates Successful Results
2016: Repositioning Demonstrates Successful Results See non-GAAP reconciliation tables in the appendix to this presentation. 7 2016 Objectives 2016 Result Strengthen OperationalPerformance ThroughContinued Execution ofRepositioning Strategy Significant internally generated cost reductions since 2013
Slide 8: 2016: Repositioning Demonstrates Successful Results (cntd.)
2016: Repositioning Demonstrates Successful Results (cntd.) Guidance as published by Coeur on February 8, 2017. 8 2016 Objectives 2016 Result Focus on Returns-Driven,High Quality Growth Production at the Palmarejo complex is expected to grow to 13.1-14.2 million AgEqOz in 2017(1), an approximately 5
Slide 9: Executive Compensation: Pay-for-Performance Philosophy
Executive Compensation: Pay-for-Performance Philosophy 9 Performance-based Reward both Companywide results and individual performanceFocus on objectives that are tied to the creation of long-term stockholder value and directly under the control of executives Market-competitive Benchmark compensation
Slide 10: Continued erosion in value of prior-year LTIP grants for NEOs
10 Continued erosion in value of prior-year LTIP grants for NEOs, reflecting prior year TSR underperformance relative to peersNEOs received zero payout for performance shares granted in 2013 that would have been paid out during 2016, representing a loss of approximately $900,000 in potential CEO com
Slide 11: Multiyear CEO Compensation Aligned with Stockholder Returns
Multiyear CEO Compensation Aligned with Stockholder Returns “Cash Incentives” includes an aggregate of $3,000,000 earned under Mr. Krebs’s supplemental incentive opportunity entered into in 2014 and tied to multi-year performance objectives. 11 CEO 3-Year Pay Comparisons Summary compensation table (
Slide 12: Strong Link Between Realized Pay and Stockholder Returns
Strong Link Between Realized Pay and Stockholder Returns 67% decline in realized value of 2014 CEO equity grant due to:Limited payout of performance shares for the 2014-2016 period (overall payout at 23% of target)Significant decline in value of restricted stock in line with TSR 12 * Realized pay va
Slide 13: Continued strong stockholder engagement in 2016
Continued strong stockholder engagement in 2016 Reached out to stockholders representing 45% of outstanding shares (as of June 30, 2016) Engaged with all who responded to our invitation to discuss corporate governance, executive compensation and other mattersOther meaningful 2016 engagement:20 manag
Slide 14: Executive Compensation Changes Resulting from Stockholder Feedback
Executive Compensation Changes Resultingfrom Stockholder Feedback Stockholder Feedback Response Ensure strong pay-for-performance alignment NEOs compensated for achieving both (i) objectives directly tied to creation of long-term stockholder value and (ii) strong relative TSR performance Zero payout
Slide 15: Executive Compensation Changes Resulting from Stockholder Feedback (cntd.)
Executive Compensation Changes Resultingfrom Stockholder Feedback (cntd.) Stockholder Feedback Response Performance goal targets should not be reduced, and positive discretion on performance relative to goals should not be exercised No reduction in targets or exercise of positive discretion in 2016
Slide 16: Leading Executive Compensation Practices
Leading Executive Compensation Practices What We Do What We Do Not Do Pay for performance with strong alignment of realized pay to TSR No excise tax gross-ups, tax gross-ups on perquisites or tax gross-ups applicable to change-in-control and severance payments Proactive stockholder outreach with mea
Slide 17: Governance Highlights
Governance Highlights 17 Governance Practices Board Independence Independent Board chairmanAll directors independent other than CEO Board Refreshment and Succession Planning Three new independent directors elected to the Board in 2013, replacing four longer-tenured directorsIn 2016, the Board engage
Slide 18: Independent Board with Highly Relevant Experience
Leadership Industry Strategic Planning Public Company Board Capital Markets Inter-national Financial/Accounting Operations Talent Manage-ment Government/Regulatory Legal/Compliance Robert E. Mellor ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Linda L. Adamany ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Kevin S. Crutchfield ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Sebastia
Slide 19: Executive Officers
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 $2 billion of acquisitions and divestitures. Mr. Krebs was previously Coeur‘s Chief F
Slide 20: Board of Directors
Board of Directors Robert E. Mellor – Former Chairman, Chief Executive Officer, and President of Building Materials Holding Corporation (distribution, manufacturing, and sales of building materials and component products) from 1997 to January 2010, director from 1991 to January 2010; member of the b
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP to U.S. GAAP Reconciliation: LTM Adjusted EBITDA
Non-GAAP to U.S. GAAP Reconciliation LTM Adjusted EBITDA ($ thousands) 2016 2015 3Q 2015 Net income (loss) $55,352 ($367,183) ($1,174,213) Interest expense, net of capitalized interest 36,920 45,703 44,511 Income tax provision (benefit) (54,239) (26,263) (418,055) Amortization 123,161 143,751 146,16
Slide 23: Non-GAAP to U.S. GAAP Reconciliation (cont.): Consolidated Debt
Non-GAAP to U.S. GAAP Reconciliation (cont.) Consolidated Debt ($ thousands) 4Q 2016 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015 Cash and cash equivalents $162,182 $222,517 $257,591 $171,389 $200,714 $205,708 Total debt 210,896 401,745 511,066 511,101 490,410 545,986 Net debt 48,714 179,228 253,475 339,
Slide 24: Non-GAAP to U.S. GAAP Reconciliation (cont.): Costs Applicable to Sales
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to SalesYear ended December 31, 2016 Silver Gold ($ thousands except per ounce amounts) Palmarejo Rochester San Bartolomé Endeavor Total Kensington Wharf Total Total Costs applicable to sales, including amortization (U.S. GAAP) $117,419 $
Slide 25: Non-GAAP to U.S. GAAP Reconciliation (cont.): All-in Sustaining Costs
Non-GAAP to U.S. GAAP Reconciliation (cont.) All-in Sustaining Costs ($ thousands except per ounce amounts) 2016 2015 2014 2013 Costs applicable to sales $409,541 $479,654 $477,945 $463,663 Treatment and refining costs 4,307 4,801 4,943 6,964 Sustaining capital 77,841 53,362 61,199 88,305 General an
Slide 26: Contact Information
Contact Information 26 Corporate office: Coeur Mining, Inc.104 S. Michigan Ave., Suite 900Chicago, IL 60603 Main telephone: +1 (312) 489-5800 Stock ticker:Warrant Ticker: CDE: NYSECDM.WT: TSX Website: www.coeur.com Contact: Courtney R.B. LynnVice President, Investor Relations & Treasurerclynn@coeur.