Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q1 2016 Earnings Presentation
36 slides from Coeur Mining's earnings presentation, Apr 28, 2016
Slide 1: First Quarter 2016 Financial Results
First Quarter 2016 Financial Results Conference Call and Webcast April 28, 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 regarding, anticipated production, costs, grades, development and exploration efforts, expectations regarding the Palmarejo C
Slide 3: First Quarter and Year To Date Highlights
First Quarter and Year To Date Highlights z Silver equivalent production of 8.1M AgEq ounces1, including 3.4M silver oz and 78,072 gold oz z Adj. AISC of $13.73 per realized AgEq oz1, a 14% decrease from the same quarter last year Adj. CAS of $11.08 per realized AgEq oz1, a 14% decrease, and Adj. CA
Slide 4: First Quarter 2016 Highlights
First Quarter 2016 Highlights 14% Decline in Adjusted AISC1 Drives 46% Growth in Quarterly Adjusted EBITDA1 to $34.6M Quarter YOY in millions US$ 1Q 2016 4Q 2015 1Q 2015 Variance Variance Revenue $148.4 $164.2 (10%) $153.0 (3%) Costs applicable to sales 101.6 125.3 (19%) 115.1 (12%) Exploration expe
Slide 5: First Quarter 2016 Highlights (continued)
First Quarter 2016 Highlights (continued) Strong Cost Performance Combined with Rising Gold and Silver Prices Contribute to Adj. EBITDA1 of $34.6M Quarter YOY 1Q 2016 4Q 2015 1Q 2015 Variance Variance Average realized silver price per ounce $15.16 $14.27 6% $16.77 (10%) Average realized gold price p
Slide 6: Leader in Cost Reductions
Leader in Cost Reductions Companywide Adj. CAS / AgEq oz1 Companywide Adj. CAS / AuEq oz1 $13.96 $14.13 $951 $907 $ per AuEq oz $ per AgEq oz $13.68 $13.68 $12.75 $12.05 $764 $11.87 $11.08 $721 FY'13 FY'14 FY'15 1Q'16 FY'13 FY'14 FY'15 1Q'16 Companywide Adj. AISC / AgEq oz1 $20.34 $19.23 $19.59 $ pe
Slide 7: Well-Capitalized with Financial Flexibility
Well‐Capitalized with Financial Flexibility Detailed Debt Schedule Net debt / LTM Adj. EBITDA1 As of As of $ in millions 12/31/15 3/31/16 4.2x 4.0x 3.25% Convertible Sr. Notes due 2028 $0.7 $0.7 3.8x 7.875% Sr. Notes due 2021 $373.4 $373.7 2.5x 2.7x Term Loan due 2020 $94.5 $94.5 San Bartolomé Lines
Slide 8: Palmarejo: Rising Production Levels from High-Grade Underground
Palmarejo: Rising Production Levels from High‐Grade Underground $14.56 $13.48 $13.21 $13.52 $11.40 $11.54 $22.9 $12.07 $12.04 $20.3 $ in millions $10.18 $10.01 1.4 1.4 1.2 22,974 1.1 0.9 $9.7 $10.7 $10.5 18,127 $9.2 $8.8 ounces 15,495 14,326 $5.6 14,668 $3.4 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 ($0.2) 1,2
Slide 9: Palmarejo: Successful Transition to Lower-Tonnage, Higher-Grade
Palmarejo: Successful Transition to Lower‐Tonnage, Higher‐Grade Underground Well‐Advanced Tons Mined Average Recovery Rate 300 281 95.4% 258 247 92.1% 250 short tons (000s) 87.9% 200 216 89.1% 190 189 88.8% 150 173 149 102 78.7% 84.7% 78.5% 100 50 35 76.2% 73.9% 0 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15
Slide 10: Rochester: Production Rates Expected to Rise Throughout the Year
Rochester: Production Rates Expected to Rise Throughout the Year $11.91 $12.37 $12.61 $10.94 $12.01 $12.95 $10.89 $11.19 $11.29 $16.4 $12.01 1.3 $ in millions 1.1 1.1 1.1 $10.8 16,411 ounces 0.9 $8.8 13,721 10,892 11,564 10,460 $6.5 $5.9 $5.3 $3.3 $3.3 $2.1 $0.4 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 2
Slide 11: Kensington: Higher Grade Contributes to Strong Production at Lower Costs
Kensington: Higher Grade Contributes to Strong Production at Lower Costs $842 $13.7 $797 $777 $761 $12.3 $12.0 $745 33,909 33,714 $9.5 31,974 $8.9 $ in millions 29,845 28,799 $8.1 ounces $5.5 $4.7 $4.5 $4.1 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Cash flow from operating activiti
Slide 12: Wharf: Improved Plant Recoveries Drive Strong Production
Wharf: Improved Plant Recoveries Drive Strong Production at Dramatically Lower Costs $970 $716 $556 $667 $18.1 $ in millions 32,231 $12.9 $9.7 ounces 23,427 $8.2 21,186 16,794 $1.2 $0.7 $1.2 $1.4 $0.1 6,609 1 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 ($7.2) 1Q'15 1 2Q'15 3Q'15 4Q'15 1Q'16 Adj. CAS per AuEq oz 2
Slide 13: San Bartolomé: Local Ore Purchases Improving Cash Flows and Costs
San Bartolomé: Local Ore Purchases Contributing to Improved Cash Flows and Lower Costs $14.47 $14.41 $13.26 $12.48 $12.56 1.6 $10.0 $ in millions 1.5 1.4 1.2 1.2 ounces $5.4 $5.7 $5.5 $5.0 $2.5 $1.8 $0.9 $1.0 $0.5 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1 Adj CAS per Ag oz Silver
Slide 14: Sales of Non-Core Assets
Sales of Non‐Core Assets Consideration Closing Date Asset Purchaser Total Details Mandalay Resources March 31, 2016 Cerro Bayo 2.0% NSR royalty $5.7M $4.0M cash; 2.5M shares Corporation April 19, 2016 La Cigarra 2.5% NSR royalty Kootenay Silver Inc. $3.6M $500,000 cash; 9.6M shares El Gallo NSR roya
Slide 15: 2016 Guidance: Expect to Produce 37M AgEq oz
2016 Guidance1: Expect to Produce 34 – 37M AgEq oz2 Silver Production Guidance Gold Production Guidance 126,266 120,000 Ounces in thousands 5,900 5,436 5,149 4,631 5,000 92,500 4,138 Ounces 78,132 70,922 69,500 52,588 51,500 629 188 San Bartolomé Rochester Palmarejo Endeavor Kensington Wharf Palmare
Slide 16: Anticipated Milestones and Upcoming News Flow
Anticipated Milestones and Upcoming News Flow 2Q 2016 3Q 2016 4Q 2016 Open‐pit mining Switch from old FNV gold Begin construction at Palmarejo to royalty agreement to for next expansion at cease new gold stream with Rochester significantly better terms 2Q 2016 3Q 2016 4Q 2016 2Q 2016 2Q 2016 3Q 2016
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP to U.S. GAAP Reconciliation: Adjusted Net Income (Loss)
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Net Income (Loss) in thousands 1Q 2016 4Q 2015 1Q 2015 Net income (loss) ($20,396) ($307,290) ($33,287) Fair value adjustments, net 6,980 (2,446) 4,339 Stock‐based compensation 2,846 2,221 2,410 Impairment of marketable securities ‐‐ 318 1,51
Slide 19: Non-GAAP to U.S. GAAP Reconciliation: Adjusted EBITDA
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands 1Q 2016 4Q 2015 3Q 2015 2Q 2015 1Q 2015 Net income (loss) ($20,396) ($303,000) ($14,219) ($16,677) ($33,287) Interest expense, net of capitalized interest 11,120 11,758 12,446 10,734 10,765 Other, net (1,314) (14,240) 8,89
Slide 20: Non-GAAP to U.S. GAAP Reconciliation: LTM Adjusted EBITDA
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) LTM Adjusted EBITDA in thousands LTM 3/31/16 LTM 12/31/2015 LTM 9/30/15 LTM 6/30/15 LTM 3/31/15 Net income (loss) ($354,292) ($367,183) ($1,143,221) ($1,125,536) ($1,151,980) Interest expense, net of capitalized interest 46,058 45,703 44,511 43,680 45
Slide 21: Costs Applicable to Sales: Q1 2016
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended March 31, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended March 31, 2016 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs app
Slide 22: Costs Applicable to Sales: Year 2015
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Year ended December 31, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Year ended December 31, 2015 Palmarejo Rochester Endeavor Total Silver Kensington Wharf Total Gold Bartolomé Costs applicable to
Slide 23: Costs Applicable to Sales: Q4 2015
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended December 31, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended December 31, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Cos
Slide 24: Costs Applicable to Sales: Q3 2015
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended September 30, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended September 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver C
Slide 25: Costs Applicable to Sales: Q2 2015
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended June 30, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended June 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs appli
Slide 26: Costs Applicable to Sales: Q1 2015
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended March 31, 2015 Silver Gold (dollars in thousands except per ounce costs) Total Three months ended March 31, 2015 San Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, includ
Slide 27: Costs Applicable to Sales: Q4 2014
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total three months ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales,
Slide 28: Costs Applicable to Sales: Q3 2014
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended September 30, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total three months ended September 30, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales
Slide 29: Costs Applicable to Sales: Full Year 2014
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Full‐year ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total Full‐year ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, includ
Slide 30: All-In Sustaining Costs
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) All‐In Sustaining Costs in thousands except per ounce costs 1Q 2016 FY 2015 4Q 2015 1Q 2015 4Q 2014 FY 2014 Costs applicable to sales, including amortization (U.S. GAAP) $128,469 $617,938 $160,752 $146,742 $163,679 $635,516 Amortization 26,914 138,284
Slide 31: Coeur's Mineral Reserves
Coeur’s Mineral Reserves Grade (oz/ton) Ounces (contained) Year‐end 2015 Location Short tons Silver Gold Silver Gold Proven Reserves Palmarejo Mexico 802,000 6.29 0.077 5,048,000 62,000 Rochester Nevada, USA 96,520,000 0.53 0.003 51,007,000 316,000 Kensington Alaska, USA 338,000 ‐ 0.20 ‐ 67,000 Whar
Slide 32: Coeur's Measured and Indicated Mineral Resources
Coeur’s Measured and Indicated Mineral Resources (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year‐end 2015 Location Short tons Silver Gold Silver Gold Measured Resources Palmarejo Mexico 134,000 4.86 0.052 651,000 7,000 Rochester Nevada, USA 60,528,000 0.49 0.004 29,709,000 233,000 Kensin
Slide 33: Coeur's Inferred Mineral Resources
Coeur’s Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Year‐end 2015 Location Short tons Silver Gold Silver Gold Inferred Resources Palmarejo Mexico 1,721,000 4.79 0.085 8,240,000 147,000 Rochester Nevada, USA 59,597,000 0.52 0.003 31,195,000 179,000 Kensington Alaska, USA 2,059,000 ‐
Slide 34: 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 35: 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 boa
Slide 36: Contact Information
Contact Information Corporate Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489‐5800 Stock Ticker: CDE: NYSE Warrant Ticker: CDM.WT: TSX Website: coeur.com Contact: Rebecca Hussey Manager, Investor Relations rhussey@coeur.com NYSE: CDE 36