Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Gold Forum Americas 2021
66 slides from Coeur Mining's conference presentation, September 2021
Slide 1: Gold Forum Americas Presentation
Gold Forum Americas Presentation September 2021 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: Company Overview
Company Overview Headquartered in Chicago, IL, Coeur Mining (NYSE: CDE) is a well-diversified, growing precious metals producer with a focus on generating sustainable, high-quality cash flow from its North American asset base Five Three Cash Flow & Returns Committed Best-in-class quality operations
Slide 4: Key Messages
Key Messages Coeur has established a healthy culture, developed a solid strategy, and Rebuilt assembled a strong, aligned team to execute the strategy and deliver Foundation consistent results Industr y The Company is an industry leader in environmental, social and Leader in ESG governance practices
Slide 5: Well-Established Leadership Team
Well-Established Leadership Team Executive Team Board of Directors Mitchell J. Krebs Thomas S. Whelan Robert E. Mellor Linda L. Adamany President and Senior Vice President and Independent Chairman Independent Director Chief Executive Officer1 Chief Financial Officer Michael “Mick” Routledge Casey M.
Slide 6: Compelling Strategy Aligned with Stockholder Priorities
Compelling Strategy Aligned with Stockholder Priorities Coeur’s strategy is to safely and responsibly discover, develop and operate a balanced portfolio of quality precious metals assets in low-risk jurisdictions to maximize cash flow, returns and net asset value Priorities • U.S.-based and NYSE-l
Slide 7: Recent ESG Accomplishments
Recent ESG Accomplishments Coeur is committed to being an industry leader in its environmental, social and governance practices, exemplified by the Company’s accomplishments in protecting its people, places and planet Developed TCFD Completed Community Completed Pay Reporting Road Relations Assessme
Slide 8: Balanced, Low-Risk Portfolio of Precious Metals Assets
Balanced, Low-Risk Portfolio of Precious Metals Assets Metal Sales 2010 2020 12% Palmarejo 22% Rochester 36% Kensington Asset $516M 45% $785M Wharf 28% San Bartolomé 28% Other1 5% 14% 10% 15% U.S. Mexico 45% Bolivia Geography Australia 28% 63% Argentina 2% 36% 10% Ov er $430 m i llion o f U . S. N e
Slide 9: Coeur's Capital Allocation Framework
Coeur’s Capital Allocation Framework Mining is capital intensive and requires a disciplined approach to capital allocation with a view toward long-term reserve replacement and growth Illustrative Return Key Benefits Key Considerations Safety/ Reflects the Company’s values Environment/ − Mitigate
Slide 10: Multiple High-Impact Organic Growth Opportunities
Multiple High-Impact Organic Growth Opportunities Coeur has multiple high-impact expansion, exploration and optimization opportunities embedded in its portfolio, which it is prioritizing and pursuing based on the Company’s capital allocation framework Expansion Exploration Optimization Rochester Nea
Slide 11: Improvement in Year-Over-Year Financial Results
Improvement in Year-Over-Year Financial Results LTM Adjusted EBITDA1/Margin1 LTM Free Cash Flow1,2 ($M) ($M) +41% $293 + $ 1 0M $283 $49 $263 $38 $239 34% 35% 34% Increased Production $209 29% 32% $16 + $2 Lower Costs ($7) + 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q
Slide 12: Rochester: Expansion Expected to Unlock Significant Value
Rochester: Expansion Expected to Unlock Significant Value1 The expansion of Rochester is expected to drive an anticipated step change in Coeur’s production and cash flow, helping to fundamentally reposition the Company and unlock meaningful long-term value for our stockholders Project Hallmarks Fund
Slide 13: Rochester: Expansion Construction Update
Rochester: Expansion Construction Update Coeur continues advancing construction on the Rochester expansion with solid ongoing environmental and safety performance. Overall project progress was approximately 31% complete at the end of 2Q 2021, substantially on schedule I I II Crushing circuit, includ
Slide 14: Silvertip: Positive Results Driving Accelerated Investment
Silvertip: Positive Results Driving Accelerated Investment Supported by ongoing, positive exploration results and key learnings from project study work, Coeur has increased its investment at Silvertip in anticipation of an expansion and restart of active mining and processing activities depending on
Slide 15: Investing in Organic Growth Opportunities
Investing in Organic Growth Opportunities Capital Expenditures by Mine Capital Expenditures Composition (% companywide total) (% companywide total) 1% 1% 2% 13% 13% 24% 27% 20% 26% 40% 2020 2021E1 2020 2021E1 $99M 2% $300M-$375M $99M $300M-$375M 8% 60% 53% 73% 38% Palmarejo Rochester Kensington Sust
Slide 16: Sustaining a Higher Level of Exploration Investment
Sustaining a Higher Level of Exploration Investment While executing the largest exploration campaign in its history, Coeur achieved a new quarterly record by drilling roughly 320,400 feet (97,675 meters) during 2Q 2021. Building on this success, the Company increased its full-year 2021 exploration g
Slide 17: Expanded Reserve and Resource Base
Expanded Reserve and Resource Base Coeur has been successfully replacing production and adding a significant amount of reserves and resources, demonstrating the potential for further mine life extensions and organic growth opportunities with continued drilling Gold Reserves & Resources Silver Reserv
Slide 18: Nevada-Based Exploration Investment Opportunities
Nevada-Based Exploration Investment Opportunities Coeur is uniquely positioned to build out its organic growth portfolio in the U.S., specifically in Nevada – the world’s top mining jurisdiction1. The Company believes investing in these opportunities will drive long-term value for stockholders North
Slide 19: Continued Exploration Success at Silvertip
Continued Exploration Success at Silvertip Coeur continues to generate positive exploration results at Silvertip, demonstrating significant near-mine, high-grade resource growth potential with continued drilling Silvertip Long Section – Looking East Silvertip Mountain significantly increased the siz
Slide 20: Balance Sheet and Hedging Summary
Balance Sheet and Hedging Summary Liquidity Profile Debt and Leverage Summary1,2 ($M) ($M) $100 $764 Jun. 30, Mar. 31, Jun. 30 $174 2020 2021 2021 5.875% senior notes due 2024 $227.2 - - $100 $124 $389 5.125% senior notes due 2029 - $367.6 $367.8 $300 Revolving credit facility 60.0 - - $265 ($35) Ca
Slide 21: Looking Ahead: Key Priorities for 2H 2021
Looking Ahead: Key Priorities for 2H 2021 • Maintain focus on rigorous health and safety protocols • Continue increasing production and executing major construction on POA 11 expansion at Rochester • Complete record exploration campaign to continue driving reserve and resource growth • Advance p
Slide 22: 2021 Guidance
2021 Guidance1 Production Outlook Gold (oz) Silver (K oz) Palmarejo 100,000 – 110,000 6,500 – 7,750 Rochester 22,500 – 32,500 3,200 – 4,400 Kensington 115,000 – 130,000 - Wharf 85,000 – 95,000 - Consolidated 322,500 – 367,500 9,700 – 12,150 CAS Outlook2 Gold ($/oz) Silver ($/oz) Palmarejo (co-produc
Slide 23: ESG Highlights
ESG Highlights NYSE: CDE 23 JC 2016
Slide 24: What Matters to Coeur
What Matters to Coeur Environmental • Training and Development • Climate Change • Health, Safety & Security • Greenhouse Gas Emissions Society • Water Stewardship • Investment in Local Communities • Waste Minimization • Indigenous Rights • Biodiversity • Human Rights • Tailings Management Governance
Slide 25: 2021 Goal and Targets
2021 Goal and Targets Our People Goal: Maintain Coeur as an employer of choice • Safety: Zero harm – 7.5% reduction in three-year trailing average total reportable injury frequency rate • Culture: Strengthen culture, employee engagement and retention – ~30% increase in employee culture survey part
Slide 26: Safety is a Foundational Element of Coeur's Culture
Safety is a Foundational Element of Coeur’s Culture Coeur’s vision for safety is to continuously enhance its culture by working free of any uncontrolled exposures. The Company believes that safety does not truly improve unless exposure is controlled, reduced or eliminated • Received certification i
Slide 27: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has been certified in the National Mining Association’s CORESafety program since 2017 and completed its recertification in July 2021 Coeur’s injury frequency rate remains significantly below industry averages Lost-Time Injury Frequency Rate Total Reportable
Slide 28: Key Components of Coeur's Health and Safety Program
Key Components of Coeur’s Health and Safety Program Management of Change Information Management Training Investigation & Controls Management of Change Ensures proper usage and Apply learning techniques, Establish a comprehensive process is utilized to prevent future expansion of current knowledge an
Slide 29: COVID-19 Response and Decision-Making Approach
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 Guidance from k ey agencies U.S. Centers Mexican and Federal, for Disea
Slide 30: Precious Metals Are Coeur to Everyday Life
Precious Metals Are Coeur 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 Au Coeur’s Palmarejo, Roch
Slide 31: Commitment to Diversity, Equity and Inclusion
Commitment to Diversity, Equity and Inclusion “During 2020, the murder of George Floyd and other tragic events were harsh reminders that much work needs to be done to address racism and injustice in our society… Throughout the year, we examined and expanded our existing diversity and inclusion initi
Slide 32: Demonstrating Our Commitment
Demonstrating Our Commitment Governance Practices Board Refreshment and Succession Planning − Two new independent directors added to the Board in February 2018 and four directors – 50% of independent directors – added in last eight years • Also added a new independent director in early 2019, who r
Slide 33: Diverse Board Led by Independent Chair
Diverse Board Led by Independent Chair • Eight out of nine Directors Skill are independent (all except CEO); all four main Current and Former Chief Executive 89% committees comprised of Project Development/Management 78% independent directors only Environmental, Social and Governance / 100% Health
Slide 34: Appendix
Appendix NYSE: CDE 34 JC 2016
Slide 35: 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 2021E2 Production Ownersh
Slide 36: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $13.34 Capital expenditures $686 $10.98 $49.7 $10.06 $9.61 $43.2 $662 $602 $621 $542 $33.4 $8.13 35 29 1,784 1,783 29 1,603 28 1,667 $13.2 $8.9 $10.0 $9.8 15 867 $4.5 $5.0 ($3.5) 2
Slide 37: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which is currently undergoing a significant expansion that is expected to be largely completed by late 2022 Asset Overview Share of Companywide 2021E2 Production Ownership 100% Gold Silver Empl
Slide 38: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $1,787 Operating cash flow $42.3 $1,537 Capital expenditures $1,481 $26.09 $1,300 $30.2 $1,148 $20.18 $19.07 $13.75 $16.8 $14.98 $9.8 1,020 $5.8 888 $4.7 $4.0 728 740 774 $2.1 10 6 7 7 5 ($5.6) ($8.7)
Slide 39: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2021E2 Production Ownership 100% Gold Em
Slide 40: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow2 $1,128 $25.9 $1,088 Capital expenditures $989 $934 $919 $20.8 $18.9 33 33 31 $14.2 28 27 $11.5 $7.2 $5.8 $6.0 $5.3 $3.9 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q
Slide 41: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2021E2 Production Ownership 100% Gold Employees1
Slide 42: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow Capital expenditures $954 $952 $963 $39.1 $804 $804 33 25 24 $19.1 19 19 $17.3 $14.1 $7.8 $0.5 $1.2 $1.5 $1.4 $0.3 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 20
Slide 43: Silvertip
Silvertip The Silvertip underground mine is one of the highest-grade silver-zinc-lead operations in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 93 Claims 98,834 net acres Type Undergrou
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 44 JC 2016
Slide 45: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Costs Applicable to Sales Guidance for 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $200,530 $122,480 $190,150 $102,610 Amort
Slide 46: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended June 30, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $50,189 $44,537 $41,913 $26
Slide 47: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $43,047 $27,610 $4
Slide 48: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2020 ($ thousands, except metal sales, per ounce or per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $170
Slide 49: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2020 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $48,672 $36,828
Slide 50: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2020 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $46,163 $22,38
Slide 51: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2020 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $26,095 $21,348 $43
Slide 52: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 Net income (loss) $72,942 $39,587 $25,627 ($257,214) ($298,347) (Income) loss from discont. ops., net tax - - - - - Interest expense, net of capitalized interest 19,818 20
Slide 53: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Leverage Ratios ($ thousands) 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 Cash and cash equivalents $124,075 $154,066 $92,794 $77,148 $70,924 Total debt 414,246 412,125 275,501 301,138 348,619 Net debt 290,171 258,059 182,707 223,990 277,695 LTM adj
Slide 54: Reserves and Resources
Reserves and Resources 2020 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 4,040,000 0.067 4.29 270,000 17,344,000 Rochester Nevada, USA 396,867,000 0.00
Slide 55: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 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 1,840,000 0.052 3.67 95,000 6,746,000 Roch
Slide 56: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 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 4,345,000 0.064 3.34 280,000 14,525,000 Rochester Nevada, USA 226,049,000 0.0
Slide 57: Reserves and Resources (cont.)
Reserves and Resources (cont.) 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 249,815,0
Slide 58: 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 59: 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 60: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 1,569,000 0.080 4.44 126,000 6,971,000 Rochester Nevada, USA 143,686,000 0.004 0.48 503,000 68,369,000 Kensing
Slide 61: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) MEASURED RESOURCES Palmarejo Mexico 818,000 0.061 3.20 50,000 2,618,000 Rochester Nevada, USA 39,732,000 0.003 0.59 13
Slide 62: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) INFERRED RESOURCES Palmarejo Mexico 4,726,000 0.055 4.35 258,000 20,540,000 Rochester Nevada, USA 67,778,000 0.003 0.52 178,000 35,554,000 Kensington Ala
Slide 63: 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 64: 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 65: 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 66: 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 66 JC 2016