Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Investor Presentation (November 2010)
27 slides from Coeur Mining's investor presentation, November 2010
Slide 1: Investor Presentation November 2010
Investor Presentation November 2010
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, ma
Slide 3: A Transformed Coeur in Robust Markets
A Transformed Coeur in Robust Markets • 100% precious metals asset base • Three new large, long-life gold and silver mines • Rapidly growing production and cash flow • Exploration upside at existing operations • Large and expanding reserve and resource base • Leading leverage to gold and silver pric
Slide 4: 100% Precious Metals Asset Base
100% Precious Metals Asset Base 2010 production outlook of over 17 million ounces of silver and 170,000 ounces of gold Kensington Gold Mine Silver Gold 2010 start-up Total P&P Reserves: 1,478K oz Au As of December 31, 2009 Ounces (000s) Ounces (000s) M&I Resources: 494K oz Au Inferred Resources: 273
Slide 5: Three Straight Years of Organic Reserve Growth
Three Straight Years of Organic Reserve Growth Proven & Probable Silver Reserves Proven & Probable Gold Reserves (millions of ounces) (thousands of ounces) 269 248 216 2,871 2,275 1,475 2007 2008 2009 2007 2008 2009 5
Slide 6: Third Quarter Exhibited Momentum
Third Quarter Exhibited Momentum • Gold production doubled; silver production rose 4% • Cash operating costs dropped 40% to $4.87/oz • Record metal sales of $118.6 million up 17% • 58% increase in operating cash flow1 • Capital expenditures declined to lowest level in over four years • Expect 17m ou
Slide 7: Overview of Operations
THE PRECIOUS METALS COMPANY Overview of Operations
Slide 8: Kensington Now in Production
Kensington Now in Production • Commercial production began July 3rd with smooth ramp up underway • Produced 15,155 gold ounces during initial quarter of production • 125,000 ounces of average annual gold production at average cash operating cost of $490/oz. • 1.5 million ounces of proven & probable
Slide 9: Palmarejo – Strong 2nd Half Underway
Palmarejo – Strong 2nd Half Underway • 3Q marked mine’s best quarter since April 2009 start-up • Significant production increases and cost reductions • Double digit grade improvement • 2010 production and cost estimates: • 6.1 million ounces of silver • 109,000 ounces of gold • Cash operating cost o
Slide 10: Favorable Production Trend
Favorable Production Trend Quarterly Silver Production Quarterly Gold Production 1,600,000 31,000 1,500,000 29,000 1,400,000 1,300,000 41% 27,000 25,000 49% 1,200,000 23,000 1,100,000 21,000 1,000,000 19,000 900,000 17,000 800,000 15,000 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 3Q '09 4Q '09 1Q '10 2Q '10
Slide 11: San Bartolomé Delivering Consistent Results
San Bartolomé Delivering Consistent Results • Large mineral reserve base of 120 million silver ounces • Grades and recoveries exceeding mine plan • 3Q cash operating costs of $7.09/oz • 12% quarterly improvement in gross margin • 2010 expected production of over 6.5 million silver ounces at average
Slide 12: Production & Costs at San Bartolomé
Production & Costs at San Bartolomé Quarterly Silver Production Quarterly Cash Op. Costs/Oz 2,250,000 $11.00 2,000,000 $10.00 1,750,000 $9.00 1,500,000 $8.00 1,250,000 9% $7.00 1,000,000 750,000 $6.00 500,000 $5.00 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 2010 YTD: 4,697
Slide 13: Rochester – Restart of Active Mining in 2011
Rochester – Restart of Active Mining in 2011 • 25 year operation with promising future • New production to begin in 4Q ’11 • Annual average production to exceed 2.4 million silver ounces and 35,000 gold ounces for several years • Substantial resource provides further production potential • 2010 prod
Slide 14: Mine Life Extension at Martha
Mine Life Extension at Martha • Operations extended through 2011 • Entered 2010 with 1.2 million ounces of proven and probable silver reserves and 1.8 million ounces of measured and indicated silver resources • Produced 1.4 million silver ounces YTD • Active drilling program underway at Martha and o
Slide 15: Finance Update
THE PRECIOUS METALS COMPANY Finance Update
Slide 16: 17% Increase in Metal Sales
17% Increase in Metal Sales Quarterly Net Metal Sales ($ millions) $118.6 $101.0 $97.4 $90.3 $87.5 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 16
Slide 17: Precious Metals Revenue Mix
Precious Metals Revenue Mix Quarterly Silver / Gold Revenue Trend ($ millions) $140 $120 $100 38% 27% 27% $80 24% 14% 32% $60 $40 73% 73% 62% 86% 76% 68% $20 $0 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Note: Excludes smelting and refining charges 17
Slide 18: Significant Growth in Operating Income
Significant Growth in Operating Income Quarterly Operating Income (Loss) ($ millions) $10.5 453% $1.9 ($1.9) ($4.1) ($3.7) Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 18
Slide 19: 58% Increase in Operating Cash Flow
58% Increase in Operating Cash Flow1 Quarterly Operating Cash Flow1 ($ millions) $39.2 58% $34.7 $27.7 $22.0 ($1.0) Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 19 1 Non-GAAP measure. Defined as operating cash flow before changes in operating assets and liabilities
Slide 20: Declining Capital Expenditures
Declining Capital Expenditures Quarterly Capital Expenditures ($ millions) $54.4 $47.2 $44.2 $45.5 19% $36.8 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 20
Slide 21: Significant Production Growth
Significant Production Growth 20 180,000 160,000 18 140,000 Millions of Silver Ounces 16 120,000 Gold Ounces 14 100,000 12 80,000 60,000 10 40,000 8 20,000 6 0 Silver Gold Silver 1 Gold 1 ►29% Average Annual Growth in Silver Production ►96% Average Annual Growth in Gold Production 21
Slide 22: Precious Metals Overview
COEUR THE PRECIOUS METALS Precious Metals Overview 22
Slide 23: Strong Global Precious Metals Demand
Strong Global Precious Metals Demand • Gold and silver prices up 30% and 50% over past year • Worldwide investment demand at record levels • Precious metals remain the preferred safe haven • Weakening U.S. dollar and inflation expectations • Record ETF holdings continue to rise • Silver’s industrial
Slide 24: Conclusion
Preece THE PRECIOL Conclusion 24
Slide 25: Impact of Strategic Plan Demonstrated in 3Q
Impact of Strategic Plan Demonstrated in 3Q • All three new precious metals mines in production • Rochester rebirth to become fourth major contributor • Rapid climb in production, sales and cash flow • Declining operating costs and capex • Growing cash position • Backdrop of continued robust gold an
Slide 26: Current Capitalization Statistics
Current Capitalization Statistics Coeur provides leading liquidity at an attractive valuation Shares Outstanding 89.3 million Current Equity Market Capitalization US$1.9 billion 90-Day Avg. Daily $ Trading Volume US$40 million 26
Slide 27: NYSE: CDE TSX:CDM www.coeur.com
NYSE: CDE TSX:CDM www.coeur.com 27