Slide 1: First Quarter 2010 Results
First Quarter 2010 Results May 10, 2010 1
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: Highlights from Q1 2010
Highlights from Q1 2010 • Significant increase in gold production led to 94% increase in metal sales • Operating cash flow1 increased 308% while capex declined 40% • July start‐up targeted at Kensington • Increased throughput and recovery rates at Palmarejo • Enhanced mining access at San Bartolomé
Slide 4: Operational Update
THE PRECIOUS METALS COMPANY Operational Update
Slide 5: Palmarejo Growing Production
Palmarejo Growing Production • First quarter 2010 silver production up 10% versus prior quarter to 1.3 million silver ounces • Gold production up 9% at 22,577 ounces • Cash operating costs of $5.41 per ounce of silver down 12% • Expect full year 2010 production of 7.9 million oz of silver and 109,00
Slide 6: Increasing Production Levels at Palmarejo
Increasing Production Levels at Palmarejo Quarterly Silver Production Quarterly Gold Production 1.50 30,000 25,000 1.25 Millions of ounces 20,000 1.00 15,000 0.75 10,000 0.50 5,000 2Q '09 3Q '09 4Q '09 1Q '10 2Q '09 3Q '09 4Q '09 1Q '10 6
Slide 7: Increasing Production Levels at Palmarejo
Increasing Production Levels at Palmarejo Quarterly Tons Milled Silver Recovery Rate 500,000 80% 450,000 400,000 70% 350,000 300,000 60% 250,000 200,000 50% 2Q '09 3Q '09 4Q '09 1Q '10 2Q '09 3Q '09 4Q '09 1Q '10 7
Slide 8: Declining Cost Profile at Palmarejo
Declining Cost Profile at Palmarejo Cash Operating Costs per Silver Ounce $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2Q '09 3Q '09 4Q '09 1Q '10 8
Slide 9: San Bartolomé Enjoying Strong Support
San Bartolomé Enjoying Strong Support • First quarter production of 1.0 million ounces at cash operating costs of $9.98 per ounce • March production of 452,000 ounces (highest since October 2009) up 47% from February • Full year 2010 production expected to reach approximately 6.0 million silver ounc
Slide 10: Increasing Production Levels & Reduced Costs
Increasing Production Levels & Reduced Costs ‐ San Bartolomé ‐ Monthly Silver Production Monthly Cash Op Costs/Ounce 700,000 $20.00 600,000 $15.00 500,000 400,000 $10.00 300,000 200,000 $5.00 Oct '09 Nov '09 Dec '09 Jan '10 Feb '10 Mar '10 Oct '09 Nov '09 Dec '09 Jan '10 Feb '10 Mar '10 10
Slide 11: Kensington On Track for July Startup
Kensington On Track for July Startup • 50,000 oz of expected gold production this year • 125,000 gold oz average annual production rate • Year end P&P reserves of 1.5 million gold ounces • Mill commissioning complete • Drilling and blasting of the underground rock in process • Crusher commissioned‐f
Slide 12: Finance Update
THE PRECIOUS METALS COMPANY Finance Update 12
Slide 13: Quarterly Comparison
Quarterly Comparison $’s in US millions Q1 ’09 Q2 ‘09 Q3 ’09 Q4 ’09 Q1 ’10 Silver Production (mm ozs) 3.5 3.9 5.2 4.3 3.4 Gold Production (ozs) 3,791 13,795 28,955 25,571 25,782 Cash Costs/Silver Ounce $5.92 $8.03 $6.93 $6.66 $7.41 Metal Sales $45.1 $67.6 $89.8 $98.2 $87.5 Production Costs $25.9 $48
Slide 14: Solidified Balance Sheet
Solidified Balance Sheet $’s in US millions Q1 ‘09 Q2 ‘09 Q3 ’09 Q4 ’09 Q1 ’10 Cash & Equivalents $38.1 $24.7 $45.6 $22.8 $56.0 Total Debt1 398.6 293.1 249.7 223.9 225.22 Shareholders’ Equity 1,861.2 1,950.8 1,977.5 1,993.2 2,072.4 Total Assets 3,032.3 3,052.3 3,059.8 3,054.0 3,133.5 Debt‐to‐Equity
Slide 15: Sale of Cerro Bayo
Sale of Cerro Bayo • Purchaser: Mandalay Resources Corporation • Consideration: Total estimated consideration of $20m • US$6.0 million in cash • CDN$5.0 million common shares of Mandalay • 125,000 ounces of silver • 2% NSR • VAT in excess of $3.5 million to Coeur’s account • Expected close: end of M
Slide 16: 2010E Key Operating Statistics
2010E Key Operating Statistics Silver Production Gold Production In millions 1Q Actual 2010E 1Q Actual 2010E Palmarejo 1.3 7.9 Palmarejo 22,577 109,000 San Bartolomé 1.0 6.0 Kensington ‐‐ 50,000 Rochester 0.5 1.5 Rochester 2,690 10,000 Martha 0.4 1.2 Martha 515 1,250 Endeavor 0.2 0.7 Consolidated 25
Slide 17: 2010E Key Financial Statistics
2010E Key Financial Statistics Key Assumptions : • OCF based on actual results through 3/31 and forecast performance through end of year based on YTD average realized prices of $16.84/oz for silver and $1,104/oz for gold and production levels shown on previous slide • Financing activities include $1
Slide 18: Current Capitalization Statistics
Current Capitalization Statistics Shares Outstanding 88.3 million Current Equity Market Capitalization US$1.5 billion 90‐Day Avg. Daily $ Trading Volume US$50 million 18
Slide 19: Exploration Update
THE PRECIOUS METALS COMPANY Exploration Update 19
Slide 20: 2009 Mineral Reserves
2009 Mineral Reserves Silver Gold Mine Ozs (mm) Ozs (000) Palmarejo 90.5 1,102 San Bartolomé 120.0 ‐‐ Kensington ‐‐ 1,478 Rochester 25.9 233 Martha 1.2 1 Cerro Bayo 7.6 57 Endeavor 24.0 ‐‐ Consolidated 269.2 2,871 • Significant growth potential from additional mineral resources and new discoveries (
Slide 21: Exploration Palmarejo
Exploration Palmarejo • Favorable YTD results which continue to demonstrate potential to expand all the clavos on strike and depth and upgrade mineral resources to reserves • Surface and underground drilling at Palmarejo • +11,400 meters completed in Q1 to expand and define mineral reserves; Clavos
Slide 22: Exploration Palmarejo
Exploration Palmarejo • Drilling in Q1 on the five clavos Rosario, 76, 108, (shown), Tucson and Chapotillo • Positive results received from Rosario, 76 and Chapotillo All of which extend the size and are expected to add new mineral reserves 22
Slide 23: Exploration Palmarejo
Exploration Palmarejo • Drilling commenced at Guadalupe Norte • Nine holes completed to date (end April) Four holes pending assays • Favorable results extend the resources to the north (Hole 331; 14.9 m @ 1.98 g/t Au, 199 Ag – photo) • The zone is open along strike and depth 23
Slide 24: Exploration Kensington
Exploration Kensington • Drilling in Q1 all related to tightly‐spaced definition for mine planning • 1,721 feet • Completed 300 feet of new drifting for drill access at - 2500 feet N; (Grid is 500 x 500 feet ) Kensington • Two new veins in the hanging wall drift 24
Slide 25: Exploration Joaquin
Exploration Joaquin • Fourth core drilling phase completed; 3,794 m in 27 holes Results confirm trends sub‐parallel to main La Negra mineralized zone, 9 holes pending assays • High‐grade structure defined under cover; 80 m of strike length, 40 m vertical, 5‐7 m average width starting 10‐15 m from su
Slide 26: Conclusion
COEUR THE PRECIOUS METALS COMPANY Conclusion 26
Slide 27: Catalysts During Remainder of 2010
Catalysts During Remainder of 2010 • July startup at Kensington • Continued silver recovery increases at Palmarejo • Expansion into additional high grade areas at San Bartolomé • Positive exploration results at Palmarejo , Kensington, Joaquin • Progress toward expansion at Rochester, leading to new
Slide 28: Appendix
THE PRECIOUS METALS COMPANY Appendix 28
Slide 29: Appendix: Drill results - Palmarejo Mine
Appendix Drill results ‐ Palmarejo Mine 29
Slide 30: Appendix: Drill results - Palmarejo Mine
Appendix Drill results ‐ Palmarejo Mine 30
Slide 31: Appendix: Drill results - Palmarejo Mine
Appendix Drill results ‐ Palmarejo Mine 31
Slide 32: Appendix: Drill results - Guadalupe
Appendix Drill results ‐ Guadalupe • Drill intercepts to end of April 2010, from 304 half, HQ‐sized core prepared at ALS Chemex, Chihuahua, Mexico and analyzed In Vancouver, Canada; 30 g fire assay‐ICP finish for gold under 2 g/t, and 30 g fire assay‐gravimetric finish for gold over 2 g/t and for si