Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Investor Presentation (July 2014)
38 slides from Coeur Mining's investor presentation, July 2014
Slide 1: Investor Presentation
Investor Presentation July 2014
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, expenses, capital and exploration expenditures, amortization, and exploration and de
Slide 3: Company Overview
Company Overview One of world’s largest silver mining companies Approximately half of sales derived from gold production Provides leading leverage to both precious metals Improved results in the wake of investments in new management team and refreshing of Board of Directors Improving lands
Slide 4: Key Investment Considerations
Key Investment Considerations Strategy to Maximize Net Cash Flow, not Production Disciplined Capital Deployment Strategy Trading at Discount Well-Capitalized with to Peer Group Strong Liquidity Multiple Growth Opportunities and Growing Pipeline Declining Cost Structure with Cash Flow Protection Prog
Slide 5: Portfolio Includes 2 of the Top 15 Largest Primary Silver Mines
Portfolio Includes 2 of the Top 15 Largest Primary Silver Mines Kensington Mine, Alaska Silver Ounces Gold Ounces 2013: 114,821 oz Au Total1 (000s) (000s) 2014E: 105,000 - 112,000 oz Au Proven & Probable Reserves 255,396 2,152 Measured & Indicated Resources 386,297 2,461 Inferred Resources 96,423 1,
Slide 6: CDE Provides Superior Leverage to Higher Metal Prices
CDE Provides Superior Leverage to Higher Metal Prices NPV Sensitivity to 10% Higher Silver Price Macro Factors Support Upside Metal Price Potential 53% Inflation concerns; geopolitical tensions Rising Asian demand from growing middle class 38% Emerging uses for silver: 29% 28% - Antimicrobials
Slide 7: Share Price has Increased Nearly 40% in the Last Month
Share Price has Increased Nearly 40% in the Last Month; Relative Performance YTD Suggests Further Upside Potential 40.00% 36% 30.00% 22% 20.00% 12% 10.00% 7% 0.00% Jun-04-14 Jun-06-14 Jun-10-14 Jun-12-14 Jun-16-14 Jun-18-14 Jun-20-14 Jun-24-14 Jun-26-14 Jun-30-14 CDE Peer Group Gold Silver 20.00% 12
Slide 8: Primary Catalysts Expected During 2014
Primary Catalysts Expected During 2014 New Franco-Nevada gold stream agreement Palmarejo operational adjustments, mine life update, and future cash flow profile Rochester expansion progress Improving cost profile Mid-year decision on La Preciosa feasibility-stage project Capital deployme
Slide 9: Business Profile and Strategy
Business Profile and Strategy Seeking to Create Balanced Pipeline of High-Return, Low-Risk Precious Metals Assets to Supplement Existing Asset Portfolio and Maximize Net Cash Flow Internal Pipeline External Pipeline Early Stage Development Acquisition Operating Assets Coeur Capital Exploration Proje
Slide 10: Well-Capitalized with Financial Flexibility and Low Net Debt
Well-Capitalized with Financial Flexibility and Low Net Debt Liquidity $272.9 $45.6 Net Debt = $145.7 Debt $456.2 $8.1 $0 $100 $200 $300 $400 $500 in millions Cash & Cash Equivalents Short-term Investments Long-term Debt Short-term Debt As of March 31, 2014. Summary balance sheet (in millions) Jun 3
Slide 11: Cash Flow Protection Strategy
Cash Flow Protection Strategy Coeur continues to maintain a targeted cash flow protection program with the following objectives: Maintain simplicity Protect downside metal price exposure while retaining the upside potential Purchase put options to protect some of expected production against
Slide 12: Capex Significantly Reduced; G&A Expenses Trending Down
Capex Significantly Reduced; G&A Expenses Trending Down Capital Expenditures General & Administrative Expenses $400 $60 $320 $50 $240 $40 $ in millions $ in millions $160 $30 $80 $20 $0 $10 $0 2011 2012 2013 2014E ▪ No major capital projects in progress; 2014 capex forecast is primarily maintenance
Slide 13: Existing Assets: Operating Performance and Outlook
Existing Assets: Operating Performance and Outlook
Slide 14: Key Focal Points for 2014
Key Focal Points for 2014 Palmarejo San Bartolomé Kensington Rochester Transitioning to expected Higher production Mill throughput tracking 2014 silver production higher-grade, higher- expected in remaining significantly higher than expected to increase margin operation quarters of 2014 rece
Slide 15: Palmarejo: Improving Operational Consistency
Palmarejo: Improving Operational Consistency $15.55 $14.97 $12.88 $12.89 $13.73 $13.39 $13.66 $11.51 $13.36 $10.36 $10.90 $9.89 2.7 2.4 2.5 2.4 2.3 2.0 1.9 2.0 1.8 1.8 33,389 1.6 1.6 35,486 ounces 34,108 31,258 29,893 29,815 31,081 28,191 25,216 23,702 19,998 22,965 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'
Slide 16: New Mine Plan to Rejuvenate Guadalupe
New Mine Plan to Rejuvenate Guadalupe Coeur announced on June 23 plans to complete development of the nearby Guadalupe deposit based on a selective, high-grade mine plan Reflects Coeur’s strategy to transition Palmarejo to a higher-margin, underground operation Guadalupe holds a majority of Pa
Slide 17: Increasing Underground Ore and New Gold Stream Agreement Expected to Unlock Value at Palmarejo
Increasing Underground Ore and New Gold Stream Agreement Expected to Unlock Value at Palmarejo 2014 Expected 2014 Expected Tons Milled Operating Profit Higher proportion of underground ore tons expected to 9% increase margins 35% OP OP UG UG 65% 91% 2013 Cash Flow from Operations Received from 2013
Slide 18: San Bartolomé: Expect Continued Stable Production and Costs in 2014
San Bartolomé: Expect Continued Stable Production and Costs in 2014 $15.26 $12.43 $13.06 $13.41 $14.14 $13.25 $13.91 $13.93 $10.08 $11.34 $10.65 $10.66 2.1 2.0 1.7 1.6 1.5 1.5 1.4 1.5 1.5 1.5 1.4 1.3 ounces 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 1 Silver production (
Slide 19: Kensington: Higher Throughput Expected to Offset Lower Grade in 2014
Kensington: Higher Throughput Expected to Offset Lower Grade in 2014 $2,587 $1,005 $1,469 $871 $1,126 $1,234 $667 $1,129 $1,002 $890 $856 $676 37,404 28,717 29,049 25,758 25,687 24,391 25,206 25,428 21,572 23,162 ounces 13,299 7,444 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1
Slide 20: Rochester: Higher Silver and Gold Production and Lower Costs Expected in 2014
Rochester: Higher Silver and Gold Production and Lower Costs Expected in 2014 $16.55 $15.74 $22.97 $12.73 $16.38 $15.74 $15.15 $14.95 $16.63 $15.83 $12.67 $11.53 819 828 844 713 12,055 712 750 10,599 648 10,120 9,404 595 ounces 8,742 8,192 441 7,890 333 352 373 5,292 4,824 1,397 1,435 1,993 2Q'11 3Q
Slide 21: Rochester Ramp Up Continues at Lower Expected Costs
Rochester Ramp Up Continues at Lower Expected Costs Recent Accomplishments ~50% Silver Production Growth Expected in 2014 126% increase in silver reserves in 2013 4,250 Ounces in thousands 121% increase in gold reserves in 2013 2,799 Completed Stage 3 leach pad expansion Upgraded crusher cir
Slide 22: Rochester LOM Plan Summary
Rochester LOM Plan Summary Significant increase in reserves, upgrades in crushing circuit, and expanded leach pad capacity have extended mine life resulting in a 67% increase in projected total net cash flow1 tons and oz in thousands, $ in millions 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2
Slide 23: Appendix
Appendix
Slide 24: 2014 Guidance
2014 Guidance Silver Production Gold Production 7,603 6,950 Ounces in thousands 5,941 5,850 114,821 108,500 116,536 91,000 4,250 Ounces 2,799 30,860 29,500 669 550 Palmarejo San Bartolomé Rochester Endeavor Kensington Palmarejo Rochester 2013 Actual 2014 Guidance Midpoint 2013 Actual 2014 Guidance M
Slide 25: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA EBITDA Reconciliation ($ in thousands) LTM 3/31/14 LTM 9/30/13 LTM 6/30/13 Net income (loss) ($700,024) ($31,485) ($1,041) Interest expense, net of capitalized interest 44,625 34,915 32,604 Interest and other income (19,162) (1,865) (16,925) In
Slide 26: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA EBITDA Reconciliation ($ in thousands) FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 Net income (loss) ($650,563) $48,677 $93,499 ($91,308) ($27,066) (Gain) loss on sale of discontinued operations, -- -- -- 2,095 (25,537) net of income taxes (Income)
Slide 27: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (dollars in thousands except per ounce costs) San Total three months ended March, 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $62,
Slide 28: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended September 30, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $100,314 $22,460 $20,458
Slide 29: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended March 31, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $55,500 $20,318 $22,629 $2,1
Slide 30: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended September 30, 2012 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $82,515 $23,976 $22,150
Slide 31: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended March 31, 2012 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $83,474 $17,709 $10,884 $4,3
Slide 32: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Three months ended September 30, 2011 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization $105,125 $36,073 $11,367
Slide 33: Coeur's Mineral Reserves 2013
Coeur’s Mineral Reserves 2013 Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 132,188,000 0.53 0.004 69,915,000 551,000 Martha Argentina - - - - - San Bartolomé Bolivia 1,206,000 2.87 - 3,456,000 - Kensington Alaska, U
Slide 34: Coeur's Measured and Indicated Mineral Resources 2013
Coeur’s Measured and Indicated Mineral Resources 2013 (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 66,190,000 0.45 0.003 29,860,000 186,000 Martha Argentina — — — — — San Bartolomé Bolivia —
Slide 35: Coeur's Inferred Mineral Resources 2013
Coeur’s Inferred Mineral Resources 2013 Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 37,365,000 0.62 0.003 23,295,000 101,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 3,683,000 1.26
Slide 36: Executive Leadership
Executive Leadership Mitchell J. Krebs – President and Chief Executive Officer. Mr. Krebs joined Coeur in 1995 after spending several years in the investment banking industry in New York. Mr. Krebs has held various positions in the corporate development department, including Senior Vice President of
Slide 37: 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 38: Contact Information
Contact Information Head Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489-5800 Stock Ticker: CDE: NYSE Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: www.coeur.com Bridget Freas Donna Mirandola Director, Investor Relations Director, Corporate