Coeur Mining, Inc. · NYSE:CDE

Coeur Mining — Coeur d'Alene Mines — The New York Society of Security Analysts 7th Annual Metals & Mining Conference (June 2007)

47 slides from Coeur Mining's conference presentation, Jun 6, 2007

  1. Slide 1: NYSSA 7th Annual Metals & Mining Conference

    The New York Society of Security Analysts 7th Annual Metals & Mining Conference Dennis E. Wheeler Coeur d’Alene Mines Corporation Chairman, President and Chief Executive Officer June 6, 2007 NYSE: CDE TSX: CDM www.coeur.com

  2. Slide 2: Cautionary Statement

    Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States and Canada. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Coeur’s control. Operating, exploration and financ

  3. Slide 3: Cautionary Statement

    Cautionary Statement Scientific and technical information in this presentation relating to the Palmarejo project was prepared under the supervision of Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is also a director of Bolnisi Gold NL. Mr. Phillips is a qualified person under NI

  4. Slide 4: Additional Information

    Additional Information The proxy statement that Coeur plans to file with the United States Securities and Exchange Commission (“SEC”) and mail to its shareholders will contain information about Coeur, Bolnisi, Palmarejo, the Palmarejo Project, the proposed Transaction and related matters. Shareholde

  5. Slide 5: Leading Silver Producer

    Leading Silver Producer „ Incorporated in 1928; listed on NYSE since 1990 „ Market capitalization of approximately $1 billion as of April 30, 2007 „ Diversified portfolio of assets: ‰ 5 operating projects ‰ 2 development projects ‰ Advanced exploration activities „ 2006 production of 12.8 million ou

  6. Slide 6: Coeur's Evolution

    Coeur’s Evolution 2000 2006 20092 Operating mines Rochester, Nevada Rochester, Nevada Rochester, Nevada Silver Valley, Idaho Cerro Bayo, Chile Cerro Bayo, Chile Fachinal, Chile Martha, Argentina Martha, Argentina Petorca, Chile Endeavor, Australia Endeavor, Australia Broken Hill, Australia Broken Hi

  7. Slide 7: Adding Value to Acquisitions

    Adding Value to Acquisitions „ Coeur has an excellent track record for delivering added value from its asset base Œ Acquired 1985 Rochester Rochester Œ Total Acquisition and Development Cost: US$50 million Œ Net Cash Flow to Date: US$166 million (1997-date) 1 1 Cerro Cerro Bayo Bayo Œ Acquired 2002

  8. Slide 8: Competitive Advantages

    Competitive Advantages Management Management ΠSenior management possesses over 300 years of combined global mining Depth Depth experience Attractive Attractive ΠCurrent portfolio of five mines are all low cost, high rate of return assets located Portfolio Portfolio in leading mining jurisdictions

  9. Slide 9: Strong Operating Assets

    Strong Operating Assets Broken Hill, Australia ƒ Low-cost silver Rochester Mine, Nevada production ƒ Cash costs below $0.50/oz ƒ 20% increase in silver in 2007 due to cessation of mineral reserves (vs. YE- mining 2005) ƒ Continued metal ƒ Expect 2.3m oz silver production through 2011 production in 2

  10. Slide 10: Significant Mineral Reserves & Resources

    Significant Mineral Reserves & Resources Silver (millions ounces)1 1 Gold (thousand ounces)1 1 Silver (millions ounces) Gold (thousand ounces) 250 1,600 1,509 220 200 1,200 150 800 746 100 454 58 52 400 50 33 164 0 0 Reserves Measured Indicated Inferred Reserves Measured Indicated Inferred Additiona

  11. Slide 11: Production Profile

    Production Profile „ Existing projects should continue to strengthen Coeur’s production profile; expect Bolivia to provide growth momentum Silver production profile 2007-20091 1 Silver production profile 2007-2009 25.0 20.0 oz (millions) (millions) 15.0 10.0 oz 5.0 0.0 2007 2008 2009 Broken Hill End

  12. Slide 12: Strong Portfolio Management

    Strong Portfolio Management „ Replacing older, higher cost mines with lower cost operations 3,000 $9.00 2,500 2,657 2,000 2,060 $6.00 Ounces (000s) 1,500 1,000 $3.00 500 0 $0.00 1 Silver Valley 2005 Australia 2006 Production Cash cost Note: Source: Coeur technical reports, 10-Ks, 10-Qs and other pub

  13. Slide 13: Effective Cost Control

    Effective Cost Control „ In an environment of rising input costs, Coeur has minimized cash cost increases Cash cost increases1,2 Cash cost increases1,2 18 55.2% 52.8% 16 14 12 6.0% 10 $/oz 8 6 4 2 0 Coeur Pan American Hecla Q1 2005 Q1 2007 Note: 1. Based on 10-Q disclosure for each company 2. Repres

  14. Slide 14: Strong Cash Flow Generator

    Strong Cash Flow Generator „ Re-engineered portfolio well positioned to exploit record metals prices 250 200 $ Millions 150 100 50 0 -50 2000 2001 2002 2003 2004 2005 2006 Revenue Gross profit1 Operating cashflow Note: Source: Coeur 10-Q and 10-K disclosure (1) Defined as revenue less direct product

  15. Slide 15: Valuation Metrics

    Valuation Metrics „ Strong fundamentals and historical performance not fully rewarded by the market… Price / NAV1,2 TEV / Production (2007E)1,2 Price / NAV1,2 TEV / Production (2007E)1,2 1.70x $160.00 1.60x 1.50x $140.00 1.40x $120.00 1.30x 1.20x $100.00 1.10x $80.00 1.00x 0.90x $60.00 0.80x 0.70x $

  16. Slide 16: Valuation Metrics

    Valuation Metrics „ …with Coeur recently trading at a discount to its primary peer group on all metrics P/E Ratio (2007E)1,2 Price / Cashflow (2007E)1,2 P/E Ratio (2007E)1,2 Price / Cashflow (2007E)1,2 19.00x 30.00x 17.00x 25.00x 15.00x 20.00x 13.00x 11.00x 15.00x 9.00x 10.00x 7.00x 5.00x 5.00x Coeu

  17. Slide 17: Key Focus Areas

    Key Focus Areas 9 Resolution of delays at key development projects ‰ Taxation proposal expected from Bolivian Government ‰ Dedicated effort to resolve Kensington litigation 9 Successful completion of Bolnisi / Palmarejo transaction 9 Focus on execution to maximize value of sector-leading pipeline ‰

  18. Slide 18: Palmarejo – A World Class Silver Project in Mexico

    Palmarejo – A World Class Silver Project in Mexico

  19. Slide 19: Transaction Summary

    Transaction Summary Transaction Overview: ƒ On May 3, 2007, Coeur announced it had entered into agreements to merge with Bolnisi Gold NL and Palmarejo Silver and Gold Corporation ƒ Transaction has unanimous support of all three boards, as well as Palmarejo’s special committee of independent director

  20. Slide 20: Compelling Transaction Benefits

    Compelling Transaction Benefits „ Positions Coeur as the undisputed leader in silver „ Coeur gains an important strategic position in Mexico – the world’s leading primary silver mining jurisdiction „ Production growth of 47.1% by 2009 „ 53% reduction in Coeur’s expected 2009 cash costs after credits

  21. Slide 21: Palmarejo – Key Features

    Palmarejo – Key Features „ Expected to be one of the world’s largest & lowest cost primary silver mines „ Located in prolific Sierra Madre belt in Mexico – one of the world’s largest primary silver producing country „ Construction fully permitted and underway ‰ Over US$50m of capital already spent „

  22. Slide 22: World Class Asset in a Proven Silver Region

    World Class Asset in a Proven Silver Region Sierra Madre Precious Metals Belt Current Resources 1: Measured and Indicated: ¾ 89.3 M oz Ag ¾ 1.0 M oz Au Dolores Inferred: ¾ 41.5 M oz Ag ¾ 0.5 M oz Au Piños Altos Estimated Annual 12 M oz silver Production2: 110,000 oz gold Mulatos (pre-optimization pl

  23. Slide 23: Expanding Quality and Size

    Expanding Quality and Size „ Silver resources (M&I) have increased by 27% since September 2005 „ Currently over 2/3 of resources are measured and indicated 160 Inferred Measured & Indicated 140 120 M oz Ag (M oz) 41.5 66.5 100 Silver Resource 80 128.3 60 89.3 40 70.2 20 44.7 0 June, 2004 December, 2

  24. Slide 24: Anticipated Transaction Timetable

    Anticipated Transaction Timetable Key Milestones Estimated Dates „ Mailing of information to Coeur, Bolnisi, and „ Early July Palmarejo shareholders „ Coeur shareholder meeting „ Early August „ Bolnisi shareholder meeting „ Mid-August „ Palmarejo shareholder meeting „ Mid-August „ Anticipated closin

  25. Slide 25: Overview of New Coeur

    Overview of New Coeur

  26. Slide 26: New Coeur - The Leader in Silver

    New Coeur - The Leader in Silver „ Leading Primary Silver Production ‰ Over 30 million silver ounces expected in 2009 in addition to 290,000 ounces of expected gold production1 „ Leading Primary Silver Growth Profile ‰ 47% over the next 2 yrs – greater than 3X the growth of nearest peer „ Leading Si

  27. Slide 27: New Coeur - Leading Silver Production

    New Coeur - Leading Silver Production „ New Coeur will be the world’s largest primary silver producer 35 31.6 30 (M oz)1 oz) 25 23.5 Production (M Silver Production 20.8 20 15 2009Silver 10 2009 6.6 5 - 2 New Coeur New Coeur Pan American Silver Wheaton Hecla Gold Production (koz) 288 20 - 153 Note:

  28. Slide 28: New Coeur - Leading Growth Profile

    New Coeur - Leading Growth Profile „ The leading growth company in silver 60% (2007E-2009E) (2007E-2009E) 1,2 50% 47.1% 47.1% 40% Growth Production 30% Production 20% Silver Silver 14.4% 14.4% 13.7% 13.7% Primary 10% Primary 5.0% 0% 3 New New Coeur Coeur Coeur Pan American Silver Wheaton Hecla Note:

  29. Slide 29: New Coeur - Leading Silver Mineral Resource Base

    New Coeur - Leading Silver Mineral Resource Base „ New Coeur will have the largest precious metals resources base of its peer group 400 350 Silver Mineral Reserves and M oz Ag (M 0z) 1 300 250 Mineral Resource 200 399.8 150 294.8 100 50 109.4 0 NewCoeur Coeur Pan American Hecla Inferred Silver Resou

  30. Slide 30: New Coeur - Leading Liquidity

    New Coeur - Leading Liquidity „ New Coeur will be the most liquid silver stock (US$m)Volume (US$m) 45 60 Volume (LHS) Days to turn float (RHS) 40 55 Days for 1 turn of float 35 Days (1 turn of float) 50 Trading 30 45 Volume 25 Average Daily 40 20 35 15 10 30 New New Coeur New Coeur Coeur Pan America

  31. Slide 31: New Coeur - Low Cost Silver Producer

    New Coeur - Low Cost Silver Producer „ New Coeur will have cash costs of less than US$2 per ounce 5.0 4.74 credits (2009E) US$/oz 4.5 4.00 4.0 3.85 (net-credits) 3.5 3.0 Cost after 2.5 2.34 2.0 1.79 Cash Cost 1.5 SilverCash 1.0 Silver 0.5 0.0 1 2 2 New New Coeur NewCoeur Coeur Pan American Old Coeur

  32. Slide 32: New Coeur - Strong Balance Sheet to Finance Growth

    New Coeur - Strong Balance Sheet to Finance Growth 400 382 „ New Coeur has the capacity to finance new mines without dilution 350 119 300 250 78 US$m 200 39 146 150 100 50 0 Pro-forma Cash San Bartolome 2 Kensington 2 Palmarejo 3 Cash Remaining 4 and equivalents Capital Capital Capital as at 31 Dec

  33. Slide 33: Appendix A

    Appendix A

  34. Slide 34: Strong Fundamentals Underpin Silver

    Strong Fundamentals Underpin Silver „ Silver has outperformed gold in the current cycle, driven by favorable fundamentals „ The silver supply/demand balance in deficit – for the 15th year running „ Supply ‰ Above ground stocks sharply reduced to only 400Moz, from over 1 Bn oz a decade ago ‰ Future m

  35. Slide 35: Demand Driven by Industrial Uses

    Demand Driven by Industrial Uses World Silver Consumption by Segment, 2006 World Silver Consumption by Segment, 2006 (Total demand: 912 million ounces) 1 1 (Total demand: 912 million ounces) Implied Investment, Producer De- 7% Hedging, 1% Coins, 4% Photography, 16% Industrial, 47% Jewelry and Silver

  36. Slide 36: Demand Exceeds Primary Supply

    Demand Exceeds Primary Supply Fabrication Fabricationdemand demandvs. vs.mine mineproduction 1 production1 1,000 838.5 853.0 839.4 848.3 840.5 500 Moz 596.5 601.0 620.4 645.7 646.1 0 2002 2003 2004 2005 2006 Mine Production Fabrication Demand Note: 1. World Silver Survey 2007, published by The Silve

  37. Slide 37: Above Ground Silver Stocks Declining

    Above Ground Silver Stocks Declining Identifiable IdentifiableSilver SilverBullion BullionStocks Stocks43% 43%below belowlevels levelsof of10 10years yearsago 1 ago 1 1,400 1,200 millions of ounces 1,000 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Note: 1. World Silver S

  38. Slide 38: Appendix B

    Appendix B

  39. Slide 39: Strong Management Team

    Strong Management Team „ Chairman since 1992, 30 years with company overseeing growth from single Dennis Wheeler asset company to largest primary silver producer in the world, as well as Chairman, President and Chief Executive Officer overseeing listing on NYSE „ Executive Vice President and Chief F

  40. Slide 40: Appendix C

    Appendix C

  41. Slide 41: Mineral Reserves; Current

    Mineral Reserves; Current Proven Mineral Reserves Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 3,720 0.66 0.007 2,436 26 Cerro Bayo Chile 375 10.41 0.20 3,902 75 Martha Argentina 33 64.05 0.10 2,118 3 San Bartolome Bolivia - - - - -

  42. Slide 42: Mineral Resources; Current

    Mineral Resources; Current Measured Mineral Resource Grade (ounces/ton) Ounces (000s) Property Location Short Tons Silver Gold Silver Gold (000s) Rochester Nevada, USA 12,304 0.94 0.01 11,598 88 Cerro Bayo Chile 455 9.38 0.17 4,267 75 Martha Argentina 19 39.44 0.06 739 1 San Bartolome Bolivia - - -

  43. Slide 43: Mineral Resources; Current

    Mineral Resources; Current Inferred Mineral Resource Grade (ounces/ton) Ounces (000s) Property Location Short Tons Silver Gold Silver Gold (000’s) Rochester Nevada, USA - - - - - Cerro Bayo Chile 1,328 9.00 0.16 11,944 208 Martha Argentina 63 45.76 0.05 2,875 3 San Bartolome Bolivia 204 1.96 - 400 -

  44. Slide 44: Mineral Reserves; Year-end 2005

    Mineral Reserves; Year-end 2005 Proven Mineral Reserves Grade (oz/ton) Ounces (000’s) Property Location Short tons (000’s) Silver Gold Silver Gold Rochester Nevada, USA 10,168 0.86 0.011 8,765 113 Cerro Bayo Chile 439 8.58 0.150 3,764 68 Martha Argentina 25 58.69 0.080 1,488 2 San Bartolome Bolivia

  45. Slide 45: Mineral Resources; Year-end 2005

    Mineral Resources; Year-end 2005 Measured Mineral Resource Grade (ounces/ton) Ounces (000s) Property Location Short Tons Silver Gold Silver Gold (000s) Rochester Nevada, USA 11,734 1.03 0.010 12,051 117 Cerro Bayo Chile 660 6.42 0.130 4,237 85 Martha Argentina 25 38.46 0.050 975 1 San Bartolome Boli

  46. Slide 46: Mineral Resources; Year-end 2005

    Mineral Resources; Year-end 2005 Inferred Mineral Resource Grade (ounces/ton) Ounces (000s) Property Location Short Tons Silver Gold Silver Gold (000’s) Rochester Nevada, USA - - - - - Cerro Bayo Chile 1,895 8.13 0.110 15,414 212 Martha Argentina 93 49.80 0.060 4,611 5 San Bartolome Bolivia 1,096 3.

  47. Slide 47: Resources: Palmarejo

    Resources: Palmarejo 4 Measured and Indicated Mineral Resource Grade (g/t) Ounces (000s) Tonnes (000s) Silver Gold Silver Gold Palmarejo (1) 14,500 191 2.08 89,260 971 Guadalupe (2) - - - - - La Patria (3) - - - - - 89,260 971 Inferred Mineral Resource Grade (g/t) Ounces (000s) Tonnes (000’s) Silver

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