Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — X International Mining Conference, Chihuahua 2014
47 slides from Coeur Mining's conference presentation, Apr 4, 2014
Slide 1: Mexico: The Cornerstone of Coeur Mining
Mexico: The Cornerstone of Coeur Mining Mitchell J. Krebs, President and Chief Executive Officer X International Mining Conference, Chihuahua 2014 April 4, 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, recoveries, costs, expenses, capital and exploration expenditures, growth, cash flow, rates
Slide 3: Maximizing Opportunities to Drive Returns
Maximizing Opportunities to Drive Returns 2 of the Top 10 Largest Primary Silver Mines Significant Gold Production Largest Well-Capitalized with U.S.-based Strong Liquidity Silver Producer Current Assets Provide Diversified Production Base & Strong Operating Attractive, Value- Cash Flow Creating Gro
Slide 4: Expanding Portfolio of Precious Metals Assets
Expanding Portfolio of Precious Metals Assets Silver Ounces Gold Ounces Total1 Kensington Mine, Alaska (000s) (000s) 2013: 114,821 oz Au Proven & Probable Reserves 255,396 2,233 2014E: 105,000 - 112,000 oz Au Measured & Indicated 386,297 2,461 Resources Inferred Resources 96,423 1,058 Rochester Mine
Slide 5: Substantial and Sustainable Annual Production Base
Substantial and Sustainable Annual Production Base 2013 Silver Production by Mine (millions of ounces) 2013 Gold Production by Mine 0.7 2.8 Palmarejo Palmarejo 7.6 San Bartolomé 114,821 116,536 Rochester Rochester 5.9 Endeavor Kensington 30,860 Silver Production Gold Production 262,217 220,000- 19.1
Slide 6: Substantial Increase in Mineral Reserves and Resources
Substantial Increase in Mineral Reserves and Resources Total Coeur Proven & Probable Reserves Total Coeur Silver Reserves & Resources 249 millions of tons millions of ounces 145 2009 2010 2011 2012 2013 Proven & Probable Reserves Measured & Indicated Resources Inferred Resources 2012 Year End 2013 Y
Slide 7: Financial Highlights
Financial Highlights Net Metal Sales Flexible Balance Sheet1 $1,021 $895 Liquidity $206.7 $ in millions $746 $515 Debt $306.1 $2.5 $300 $0 $50 $100 $150 $200 $250 $300 $ in millions Long-term Debt Short-term Debt 2009 2010 2011 2012 2013 Cash & Cash Equivalents EBITDA2 Reserves per Share Relative to
Slide 8: Investing in Mexico
COEUR Investing in Mexico MINING: NYSE: CDE
Slide 9: Top Silver Producing Countries - 2010-2012
Top Silver Producing Countries - 2010-2012 Ranking Output (Moz) Ranking Output (Moz) 2010 Country 2010 2011 Country 2011 1 Mexico 128.6 1 Mexico 152.8 2 Peru 116.1 2 Peru 109.8 3 China 99.2 3 China 103.9 4 Australia 59.9 4 Australia 55.2 5 Chile 41.0 5 Chile 42.1 Ranking Output (Moz) 2012 Country 20
Slide 10: Mining Investment
Mining Investment 2013 Top 10 Countries for Mining Investment1 1. Australia 2. Canada 3. Chile • Mexico has the highest rating for its tax regime 4. Brazil • In the top five countries for its economic 5. Mexico system and fewest permitting delays 6. United States • Improving in currency stability an
Slide 11: World's Largest Primary Silver Mines
World’s Largest Primary Silver Mines 2011 2012 2013E* Output Output Output Mine Name Country Company (Moz) (Moz) (Moz) Cannington Australia BHP Billiton 32.2 32.2 29.1 Fresnillo Mexico Fresnillo Plc 30.3 26.4 22.8 Dukat Russia JSC Polymetal 13.6 15.5 18.3 Saucito Mexico Fresnillo Plc 5.9 7.1 11.6 Uc
Slide 12: Top Ten Silver Producing Companies - 2012
Top Ten Silver Producing Companies - 2012 Company Name Output (Moz) 2012 KGHM Polska Miedź S.A.1 41.0 BHP Billiton plc. 39.0 Fresnillo plc. 2 36.9 Goldcorp Inc. 3 30.5 Polymetal International plc. 2 26.5 Pan American Silver Corp. 2 25.1 Volcan Cia. Minera S.A.A. 4 22.0 Cia. De Minas Buenaventura S.A
Slide 13: Mexico's Largest Silver Mines
Mexico’s Largest Silver Mines Mine Name 2012 Output (Moz) 2013* Output (Moz) Fresnillo Mine 26.4 22.8 El Saucito 7 11.6 Palmarejo 8.2 7.6 Alamo Dorado 5.4 5.1 La Colorada 4.4 4.6 *2013 numbers are provisional. Source: Thomson Reuters GFMS NYSE: CDE 13
Slide 14: Mexico is Key to Coeur's Growth
Mexico is Key to Coeur’s Growth
Slide 15: Coeur Reserves and Resources by Country Year-End
Coeur Reserves and Resources by Country Year-End 2013 Proven and Probable Reserves Silver Gold 3% United States United States 16% 25% Bolivia Mexico 40% Mexico 41% 75% Australia Measured and Indicated Resources Silver Gold 3% 18% 16% United States Bolivia United States 9% 10% Mexico 41% Mexico Austr
Slide 16: Mexico is Key to Coeur's Growth
Mexico is Key to Coeur’s Growth Palmarejo Mine as a Share of Coeur’s 2013 Year-End Results • 43% of metal sales • 45% of production on a silver equivalent basis1 • 32% of exploration activity • 19% of year-end silver/gold proven & probable reserves 1. Silver equivalent ratio calculated using 60:1. N
Slide 17: Palmarejo Mine, Chihuahua, Mexico
Palmarejo Mine, Chihuahua, Mexico • Located 420 kilometers by road southwest of the capital city of Chihuahua • Commissioned in 2009, mining is conducted both underground and on the surface NYSE: CDE 17
Slide 18: Palmarejo Mine
Palmarejo Mine Operational Outlook and Financial Results • In 2013, Palmarejo produced 7.6 million ounces of silver and 116,536 ounces of gold at cash operating costs1 of $2.23 per silver ounce • Coeur’s 2014 guidance for Palmarejo: 6.7M-7.2M silver ounces and 87,000- 95,000 gold ounces2 • Higher re
Slide 19: Palmarejo: Improving Operational Consistency and Cash Flow
Palmarejo: Improving Operational Consistency and Cash Flow $15.55 $14.97 $13.73 $13.39 $12.88 $12.89 $11.36 $11.51 $9.89 $10.36 $10.90 $13.66 2.7 2.4 2.5 2.4 2.3 2.0 1.9 2.0 1.7 1.8 1.6 1.6 35,486 ounces 33,389 34,108 31,081 31,258 27,759 29,815 28,191 29,893 23,702 22,965 19,998 1Q'11 2Q'11 3Q'11 4
Slide 20: Exploration Investment
Exploration Investment Annual Exploration Investment at Palmarejo $25 $20 $19.9 $ in millions $15 $13.2 $10 $9.7 $7.4 $8.1 $7.1 $5 $0 2009 2010 2011 2012 2013 2014E Guidance as published by Coeur on February 26, 2014. NYSE: CDE 20
Slide 21: Focus on Community, Health & Safety in Mexico
Focus on Community, Health & Safety in Mexico • Since 2009, Coeur has invested over $18 million on community, environment and worker health & safety programs at Palmarejo • Coeur has received the Mexican Centre for Philanthropy’s Socially Responsible Business Distinction Award five years in a row •
Slide 22: La Preciosa: Attractive New Asset with Unique Attributes
La Preciosa: Attractive New Asset with Unique Attributes • Located in the heart of Mexico’s Durango prolific Sierra Madre Mineral Belt, which hosts large silver deposits such Guanacevi Inde as Fresnillo Gomez Palacio/Torreon MEXICO Pitarrilla • Acquired through acquisition of Platosa Orko Silver in
Slide 23: La Preciosa PEA Highlights and Assumptions
La Preciosa PEA Highlights and Assumptions • Average annual production of 9.1 million silver ounces and 15,100 gold ounces over the initial 14 years of mine life • M&I Resource of 57,240,000 tons with 146,173,000 oz Ag and 277,700 oz of Au, with Inferred 19,504,000 tons with 37,726k oz Ag and 60.3k
Slide 24: Coeur's Strategic External Investments
Coeur’s Strategic External Investments Cash flowing royalty/stream Strategic Huldra Silver, Canada Investment Treasure Mountain project, British Columbia; 6.8% ownership interest Pershing Gold, Nevada, USA Investment in Mexico Relief Canyon project; 4.0% ownership interest Commonwealth Silver and Go
Slide 25: Key Investment Highlights
Key Investment Highlights Well-capitalized with strong liquidity and conservative capital deployment Balance Sheet Rebalancing geopolitical Health mix and new source of anticipated stable cash flow through Coeur Asset Capital Value-Creating Growth Diversity Increased reserves and resources; large ex
Slide 26: Appendix
Appendix MINING: NYSE: CDE
Slide 27: 2014 Guidance
2014 Guidance Silver Production Gold Production 7,603 6,950 Ounces in thousands 5,941 5,850 114,821 116,536 108,500 91,000 4,250 Ounces 2,799 30,860 29,500 669 550 Palmarejo San Bartolome Rochester Endeavor Kensington Palmarejo Rochester 2013 Actual 2014 Guidance Midpoint 1 2013 Actual 1 2014 Guidan
Slide 28: San Bartolomé: Expect Continued Stable Production in 2014
San Bartolomé: Expect Continued Stable Production in 2014 $15.26 $14.14 $13.91 $13.06 $13.25 $12.43 $11.34 $10.66 $10.65 $13.41 $9.52 $10.08 2.1 2.0 1.7 1.7 1.6 ounces 1.5 1.5 1.4 1.5 1.5 1.5 1.3 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1 Silver production (millions) C
Slide 29: Kensington: Significant Production Growth and Lower Costs in 2013
Kensington: Significant Production Growth and Lower Costs in 2013 $2,587 $1,469 $1,129 $1,234 $1,126 $1,002 $890 $667 $874 $676 $856 $871 37,404 28,717 29,049 25,758 25,687 24,391 25,206 23,676 23,162 21,572 ounces 13,299 7,444 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13
Slide 30: Rochester: Major Capital Projects Completed; Higher Production Expected in 2014
Rochester: Major Capital Projects Completed; Higher Production Expected in 2014 $23.50 $17.08 $16.87 $15.30 $15.62 $16.41 $15.68 $12.34 $15.76 $15.76 $15.44 $11.83 819 828 844 12,055 712 713 10,120 10,599 648 595 8,742 9,404 ounces 441 7,890 334 333 352 373 5,292 4,824 1,397 1,993 1,451 1,435 1Q'11
Slide 31: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) EBITDA EBITDA Reconciliation 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) loss from discon
Slide 32: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) All-In Sustaining Costs in thousands except per ounce costs FY 2013 4Q 2013 3Q 2013 2Q 2013 1Q 2013 FY 2012 Costs applicable to sales (U.S. GAAP) $463,663 $100,227 $131,728 $142,924 $88,784 $454,562 Treatment and refining costs 10,462 2,815 2,590 2,41
Slide 33: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) Palmarejo Year ended December 31, 2013 Total cash operating cost (Non-U.S. GAAP) $16,919 Royalties -- Production taxes -- Total cash costs (Non-U.S. GAAP) $16,919 Add/Subtract: Thir
Slide 34: 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 Full-year ended December 31, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $322,814 $106,39
Slide 35: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended December 31, 2013 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $75,875,187 $25,621,471 $18,657,839 $
Slide 36: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended June 30, 2013 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $90,776,146 $37,756,460 $25,378,504 $2,90
Slide 37: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended December 31, 2012 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $72,477,667 $19,367,784 $25,228,080 $
Slide 38: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended June 30, 2012 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $105,286,508 $26,842,432 $22,811,578 $4,1
Slide 39: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales thousands except per ounce costs) San Three months ended December 31, 2011 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $89,604,078 $27,368,489 $5,355,775 $1,
Slide 40: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales thousands except per ounce costs) San Three months ended June 30, 2011 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $79,552,920 $19,308,200 $4,692,837 $4,137,
Slide 41: External Growth - Strategic Investments
External Growth - Strategic Investments Apogee Silver (Pulacayo-Paca project, Bolivia and Cachinal project, Chile; 7.6% ownership interest): Environmental Impact Assessment approved by Bolivia’s Ministry of Environment and Water Caracara Silver (Princesa project, Peru; 3.2% ownership interest)
Slide 42: 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 43: 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 44: 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 45: 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 46: 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 47: Contact Information
Contact Information Head Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489-5800 Stock Tickers: CDE: NYSE Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: www.coeur.com Bridget Freas Donna Mirandola Director, Investor Relations Director, Corporat
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