Slide 1: Coeur Value: Building Global Investment Value
COEUR VALUE BUILDING GLOBAL INVESTMENT VALUE Investor Presentation May 2011 COEUR ǀ THE PRECIOUS METALS COMPANY ǀ NYSE:CDE TSX:CDM 1
Slide 2: Company Evolution Well Underway
Company Evolution Well Underway First full year with three new precious metals mines in operation Significant operational and financial transformation taking place 100% precious metals profile Large land positions around mines being aggressively explored Backdrop of continued strength in s
Slide 3: New Mines Driving Record Performance
New Mines Driving Record Performance 2011 production outlook of 20 million ounces of silver and 250,000 ounces of gold Kensington Gold Mine Silver Gold 2010 start-up Total P&P Reserves: 1,409K oz Au Ounces (000s) Ounces (000s) M&I Resources: 478K oz Au Inferred Resources: 121K oz Au Proven & Probabl
Slide 4: Market Overview
Market Overview Ticker: CDE:NYSE Firm Recommendation Price Target Exchange CDM: TSX BMO Outperform $43 Shares 89.5m Outstanding CIBC Sector Perform $38 Avg. Daily Deutsche Bank Buy $54 $140m Volume Jefferies Buy $44 Market $2.5b JPMorgan Neutral $33 Capitalization Ag Reserves/ 227.1m/ RBC Sector Per
Slide 5: Financial Overview
Financial Overview 5
Slide 6: Dramatic Increase in Annual Metal Sales
Dramatic Increase in Annual Metal Sales1 in millions +$800.0 $515.5 $300.3 $146.9 $129.3 2007 2008 2009 2010 2011E 2 1 Excludes discontinued operations 2 2011 estimate based on $27.50/oz silver price and $1,250/oz gold price; 20m ounces of silver production and 250,000 ounces of gold production 6
Slide 7: Adjusted Earnings Rising Rapidly
Adjusted Earnings Rising Rapidly1 in millions $41.5 $37.1 $0.56/share 58.4% ($18.6) 2009 2010 1Q 201149.1% 33.9% 41.7% 41.9% 1 Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation. 7
Slide 8: Operating Cash Flow
Operating Cash Flow1 in millions +$400.0 $183.9 $66.7 $61.5 $11.6 58.4% 2007 2008 2009 2010 2011E 49.1% 2 33.9% 41.7% 41.9% 1 Non-GAAP measure. Defined as operating cash flow before changes in operating assets and liabilities. 2 2011 estimate based on $27.50/oz silver price and $1,250/oz gold price;
Slide 9: Capital Expenditures Now in Decline
Capital Expenditures Now in Decline in millions $365.0 $217.0 $218.2 $156.0 ≈$120.0 58.4% 2007 2008 2009 2010 2011E 49.1% 33.9% 41.7% 41.9% 9
Slide 10: Balance Sheet and EBITDA Detail
Balance Sheet and EBITDA Detail in millions of US$ 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 Cash, Equivalents & Short-Term Investments $56.0 $41.2 $32.8 $66.1 $64.4 Short-Term Debt: 1.25% Convertible Senior Notes $0.0 $1.9 $1.9 $1.9 -- Senior Term Notes 33.3 33.3 33.3 15.0 $15.0 Credit Suisse Term Fa
Slide 11: Shares Issued Remain Constant
Shares Issued Remain Constant in millions 89.3 89.3 89.3 89.5 86.1 58.4% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 49.1% 33.9% 41.7% 41.9% 11
Slide 12: Operational Overview
Operational Overview 12
Slide 13: Significant Silver Production Profile
Significant Silver Production Profile in millions ≈20.0 16.9 16.8 12.0 11.5 58.4% 2007 2008 2009 2010 2011E 49.1% 33.9% 41.7% 41.9% 13
Slide 14: Rapidly Growing Gold Profile
Rapidly Growing Gold Profile in millions ≈250,000 157,062 92,014 72,112 58.4% 46,115 2007 2008 2009 2010 49.1% 2011E 33.9% 41.7% 41.9% 14
Slide 15: Palmarejo Generating Strong Free Cash Flow
Palmarejo Generating Strong Free Cash Flow • Began production in 2009 • Silver and gold operation • U/G and O/P mining • Expecting record year in 2011 for production and cash flow • Produced 5.9 million silver 58.4% ounces and 102,440 gold ounces in 2010 49.1% • Control nearly33.9% 47 square 41.9% 4
Slide 16: San Bartolomé Continuing to Perform Well
San Bartolomé Continuing to Perform Well • Began production in 2008 • 100% silver mine; surface operation • Produced 6.7 million silver ounces in 2010 at operating costs per ounce of $7.87 • Very strong local government, 58.4% union and civic support 49.1% 33.9% 41.7% 41.9% 16
Slide 17: Kensington Achieving Design Capacity
Kensington Achieving Design Capacity • Began production in July of 2010 • 100% gold mine; underground • Initial year of operations • Average annual production of 125,000 ounces of 12.5 year initial mine life • Drilling program underway to add 58.4% new reserves and resources 49.1% 33.9% 41.7% 41.9%
Slide 18: Rochester Developing New Production
Rochester Developing New Production In operation since 1986 Construction of new leach pad on- schedule with new silver and gold production beginning in 4Q Produced 333,696 silver ounces and 1,451 gold ounces in 1Q Significant amount of additional material expected to lead to even 58.4% furth
Slide 19: Overview of Precious Metals Markets
Overview of Precious Metals Markets 19
Slide 20: Silver Remains the Top Performing Metal
Silver Remains the Top Performing Metal average price per ounce $36.00 $31.27 $26.83 $18.56 $18.87 $16.84 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Current Spot 20
Slide 21: Silver's Dual Role Driving Demand
Silver’s Dual Role Driving Demand Top performing metal despite recent volatility ETF investment at record levels Industrial demand rebounding Growth in both investment and industrial demand in emerging markets New uses (i.e. photovoltaic) driving additional demand 21
Slide 22: Gold Continues to Set New Highs
Gold Continues to Set New Highs average price per ounce $1,515 $1,357 $1,372 $1,229 $1,176 $1,104 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Current Spot 22
Slide 23: Gold Continues Upward March
Gold Continues Upward March Surpassed $1,500/oz level Dollar and inflation concerns Low U.S. interest rates expected to continue Middle East, Japan, European shocks Concerns over long-term U.S. debt/deficit situation Greater appetite for holding physical gold by institutional and retail
Slide 24: Investment Rationale
Investment Rationale 24
Slide 25: Substantial Upside in CDE
Substantial Upside in CDE -10.0% Silvercorp 49.0% -9.0% Silver Wheaton 93.0% 6.0% Silver Standard 55.0% -18.0% Pan American 37.0% -28.0% Hecla 48.0% 3.0% 58.4% Coeur 68.0% -40% -20% 0% 20% 40% 60% 80% 100% 49.1% 33.9% YTD 41.9% Return One-Year 41.7% Return Through May 4th 25
Slide 26: Substantial Upside in CDE: P/Operating Cash Flow
Substantial Upside in CDE P/2011E Operating Cash Flow 22.0x 18.9x 17.1x 17.2x 13.0x 11.8x 9.0x 9.2x 9.4x 7.0x 4.9x 58.4% Coeur Hochschild Pan Endeavour Hecla First Majestic Fortuna Fresnillo Silver Silver Silvercorp American Silver Silver Wheaton Standard 49.1% 33.9% 41.7% 41.9% Source: BMO Capital
Slide 27: Substantial Upside in CDE: P/NAV
Substantial Upside in CDE P/NAV 1.9x 1.5x 1.3x 1.4x 1.2x 1.0x 1.0x 0.9x 0.7x 58.4% Silver Standard Pan American Coeur Fortuna Silver Silver Wheaton Silvercorp Endeavour Hecla First Majestic Silver 49.1% 33.9% 41.7% 41.9% Source: CIBC World Markets May 2, 2011 27
Slide 28: Gearing For Record 2011 Performance
Gearing For Record 2011 Performance 2011 production outlook: 20 million ounces of silver 250,000 ounces of gold Actual 1Q results + YTD average prices for remainder of 2011 translate into +$1b of sales and +$500m of OCF Metals prices expected to remain robust Organic growth from Rocheste
Slide 29: Appendices
Appendices 29
Slide 30: Investment Demand for Silver
Investment Demand for Silver World Industrial Fabrication 30% CAGR Source: GFMS Ltd. 30
Slide 31: Total Silver ETF Holdings
Total Silver ETF Holdings Source: CIBC World Markets, Bloomberg 31
Slide 32: Industrial Demand for Silver
Industrial Demand for Silver millions of ounces 665.9 8% CAGR 491.1 492.7 487.4 454.2 431.8 387.4 403.8 355.3 368.4 349.7 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015E Source: GFMS Ltd. 32
Slide 33: Industrial Uses of Silver
Industrial Uses of Silver millions of ounces World Industrial Fabrication Silver Demand for New Uses Source: GFMS Ltd. 33
Slide 34: Industrial Uses of Silver
Industrial Uses of Silver millions of ounces Industrial Demand’s Growing Importance Industrial Demand Composition Electronics Consumer electronics (tvs, cell phones, etc.) Household appliances Switches (construction/auto industries) Pastes for PV industry, mirrors, windows Brazing and so
Slide 35: Industrial Uses of Silver
Industrial Uses of Silver millions of ounces Source: GFMS Ltd. 35
Slide 36: Summary of Silver Demand
Summary of Silver Demand Wide and growing range of applications Best electrical and thermal conductor of all metals, making it indispensable in applications including conductors, switches, contacts and fuses Represents small share of total cost of end produce/use Unique properties; lack of a
Slide 37: Annual Production of Silver
Annual Production of Silver millions of ounces 2.5% CAGR 718.3 735.9 665.4 681.9 637.3 641.7 606.2 596.6 613.0 593.9 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: GFMS Ltd. 37
Slide 38: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Adjusted Earnings Twelve Months Ended Three Months December 31, Ended Mar 31, 2010 2009 2011 Reconciliation to U.S. GAAP (In thousands) NET INCOME/(LOSS) (91,308) (27,066) $12,464 Share based compensation 7,217 4,876 8,155 Gain/loss on debt extinguishments 20,300
Slide 39: Mineral Reserves
Mineral Reserves MINERAL RESOURCES (exclusive of reserves) GRADE (Oz/Ton) OUNCES SHORT TONS YEAR END 2010 LOCATION SILVER GOLD SILVER GOLD MEASURED RESOURCES Rochester Nevada, USA 141,025,900 0.45 0.004 63,899,600 499,600 Martha Argentina - - - - - San Bartolome Bolivia - - - - - Kensington Alaska,
Slide 40: Mineral Resources
Mineral Resources MINERAL RESOURCES (exclusive of reserves) GRADE (Oz/Ton) OUNCES SHORT TONS YEAR END 2010 LOCATION SILVER GOLD SILVER GOLD MEASURED RESOURCES Rochester Nevada, USA 141,025,900 0.45 0.004 63,899,600 499,600 Martha Argentina - - - - - San Bartolome Bolivia - - - - - Kensington Alaska,
Slide 41: 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