Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Coeur d'Alene Mines — Merger or Acquisition (June 2004)
39 slides from Coeur Mining's merger presentation, Jun 3, 2004
Slide 1: The Leading One Million Ounce Gold Producer and the World's Largest Primary Silver Producer
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Coeur d’Alene Mines Corporation ( NYSE:CDE) Wheaton River Minerals Ltd. (TSX:WRM / AMEX:WHT) REVISED PROPOSAL JUNE 3, 2004
Slide 2: Safe Harbor Statement
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Safe Harbor Statement This document contains numerous forward-lo oking statements relating to the Company's silver and gold mining business. The United States Priv ate Securities Litigation Reform Act of 1995
Slide 3: Immediate Superior Shareholder Value
Coeur’s Proposal Provides Superior Value to Wheaton Shareholders Immediate Superior Shareholder Value C$5.00 per share offer (May 27th) 16% Premium to Wheaton share price (June 2) 26% Premium to Wheaton share price (May 27th) 23% Premium to IAMGold implied transaction value (May 27th) C$0.
Slide 4: Superior Proposal: Implied Value Since IAMGold Offer
Coeur’s Proposal Provides Superior Value to Wheaton Shareholders Superior Proposal The Coeur Proposal has always had a higher implied value than the IAMGold Offer Implied Value of Coeur Proposal(1) Since IAMGold Offer(2) $7.50 IAMGold Offer (C$) $7.00 Coeur Offer (C$) $6.50 $6.00 $5.50 $5.00 $0.94
Slide 5: Long Term Superior Shareholder Value
Coeur’s Proposal Provides Superior Value to Wheaton Shareholders Long Term Superior Shareholder Value: 4th Largest North American Precious Metals Company Top 10 Global Gold Producer 200% Jump in Silver Production – The World’s Leading Primary Silver Producer Superior Financial Strength and L
Slide 6: Superior Proposal
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Proposal Coeur Offer @ 0.731 Current IAMGOLD Offer @ 0.55 Value Superior Value of C$5.00/share1 C$4.06 value1 ♦ 23% higher than IAMGold offer2 Cash in the Offer of C$0.50/share Nil Cash (C$285mm) Not
Slide 7: Superior Cash in the Proposal
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Cash in the Proposal Coeur has injected C$285 million of its own cash into the offer while IAMGold has no cash in its offer Coeur has improved its proposal by C$285 million with an option to shar
Slide 8: Improved Proposal - Highlights
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Improved Proposal - Highlights Coeur has improved its proposal by C$285 million with an option to shareholders of senior subordinated notes or Coeur common stock Coupon of 9% Term – 7 years Callable a
Slide 9: Focus in the Americas
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Focus in the Americas Coeur, as a proven operator, has a focused strategy in the Americas 100% of the mining assets contributed 100% of the mining assets contributed by by Coeur are operated by Coeur IA
Slide 10: 4th largest North American precious metals company
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Combination creates the 4th largest North American precious metals company Market Capitalization(1) Newmont $18.3 Barrick $11.2 Placer $6.4 Newco $2.7 Goldcorp $2.3 Kinros s $2.2 Glamis $2.2 Meridian $1.3 A
Slide 11: Top 10 global gold producer
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Combination creates a Top 10 global gold producer Global Gold Producers (2004E)(1) Newmont 7.0 AngloGold 6.5 Barrick 4.9 Goldfields 4.2 Harmony 4.0 Kinross 1.7 Buenavent ura 1.6 New co 0.9 1.3 Newcrest 0.8
Slide 12: World's largest primary silver producer
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Newco is the world’s largest primary silver producer now and for years to come Wheaton’s silver production increases by 200% to 21 million ounces in 2004 Silver Production - 2004E(1) Silver Production - 2
Slide 13: Superior Trading Liquidity
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Trading Liquidity Newco will be one of the most liquid precious metals stocks Average Daily Trading Liquidity(1) Barrick $5 7.6 $39.5 $97.1 Placer $42.6 $34.9 $77.5 Dome New co $5 3.8 $2 1.5 $75.3
Slide 14: Superior Trading Liquidity: Share Float Traded Daily
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Trading Liquidity Newco will be one of the most liquid precious metals stocks % Share Float Traded Daily(1) Newco 2.6% Agn ico - Eagl e 1.7% G ol dco rp 1.7% Newmon t 1.7% Kinros s 1.4% G lam is 1.
Slide 15: Superior Financial Strength
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Financial Strength Newco’s free cash flow provides superior financial flexibility Newco Free Cash Flow(1) $1,200 Cash from O perations Warrants Capex Net Closing Cash $1,000 $800 Free Cash Flow (US
Slide 16: Superior Organic Growth Profile
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Organic Growth Profile Newco has a strong platform of organic growth projects all focused in the Americas Coeur Growth Wheaton Growth ♦ Development ♦ Development o San Bartolome, Bolivia o Amapari,
Slide 17: Production and Total Cash Cost Estimates
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Superior Organic Growth Profile Newco’s annual production quickly grows to a 1.3 million gold equivalent ounce base at a very low total cash cost Newco Production and Total Cash Cost Estimates(1)(2) 1.6 $14
Slide 18: High Quality Asset Base Focused on the Americas
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer High Quality Asset Base Focused on the Americas KENSI NGTON A laska SILVER VALLEY Mines Idaho Projects ROCHESTER Nevada LUISMIN Mexico LOS FILOS Mexico A MAPA RI SA N BA RTOLOME Brazil Bolivia BA JO DE LA ALU
Slide 19: Strong and Growing Reserves
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Strong and Growing Reserves Newco has 9.1 million ounces of gold equivalent reserves and an additional 11.9 million ounces of gold equivalent resources Reported Gold Reserves and Resources(1)(2) Kinross 14.
Slide 20: Strong Silver Reserve Position
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Strong Silver Reserve Position Newco has 208 million ounces of silver reserves and an additional 217 million ounces of resources Reported Silver Reserves and Resources(1)(2) Pan American 229 569 798 New co
Slide 21: Among the World's Lowest Cost, Unhedged Producers
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Among the World’s Lowest Cost, Unhedged Producers Newco’s total cash costs are amongst the lowest in the industry Total Cash Costs (2004E)(1) Meridian $55 Goldcorp $106 (2) Newco $115 Agnico $160 Glamis $16
Slide 22: Immediate Superior Shareholder Value
Coeur’s Proposal Provides Superior Value to Wheaton Shareholders Immediate Superior Shareholder Value C$5.00 per share offer (May 27th) 16% Premium to Wheaton share price (June 2) 26% Premium to Wheaton share price (May 27th) 23% Premium to IAMGold implied transaction value (May 27th) C$0.
Slide 23: Long Term Superior Shareholder Value
Coeur’s Proposal Provides Superior Value to Wheaton Shareholders Long Term Superior Shareholder Value: 4th Largest North American Precious Metals Company Top 10 Global Gold Producer 200% Jump in Silver Production – The World’s Leading Primary Silver Producer Superior Financial Strength and L
Slide 24: Transaction Details
Transaction Details
Slide 25: Terms of the Transaction
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Terms of the Transaction Trans ac tion: C oeur acqu iri ng 10 0% of W he aton for sha res or c ash by w ay of a plan of arr angem ent Cons ide ra tion: C $5 .00 per W h eaton s har e, payable in : ♦ Coeur com
Slide 26: Road Map to Completion
The Leading One Million Ounce Gold Producer and the World’s Largest Primary Silver Producer Road Map to Completion Process Timing Definitive documentation June 10 TSX listing application for Exchangeable Shares June 10 Regulatory filings June 30 Anticipated date of regulatory approval July 30 Coeur
Slide 27: Appendices
Appendices
Slide 28: Appendix A: Newco Fact Sheet
Appendix A Newco Fact Sheet COEUR WHEATON RIVER NEWCO Principal Stock Exchange NYSE TSX,AMEX NYSE,TSX Share Pri ce (US$) (May 27 th ) $5.06 $2.92 $5.06 Basic Shares Outstanding (mm) 214.3 568.2 542.2 Fully Diluted Shares Outstanding (mm) 216.2 768.8 690.7 Market Capitali zation - Basi c (US$mm) $1,0
Slide 29: Appendix B: Newco Gold Mines and Projects
Appendix B Newco Gold Mines and Projects Strong Diversified Asset Base Focused in the Americas 2004F ATTRIBUTABLE ATTRIBUTABLE OWNERSHIP ATTRIBUTABLE TOTAL CASH MINERALIZED MINE LOCATION RESERVES % PRODUCTION COSTS MATERIAL (MM oz) (MM oz) (US$/oz) (MM oz) Alumbrera 37.5% Argentina 220 ($238) 2.25
Slide 30: Rochester Mine - Nevada
Appendix B (cont’d) Rochester Mine – Nevada (Newco 100%) Silver-gold mine located in Nevada Open pit mine with heap leach processing World’s 7th largest primary silver mine 16 years of continuous, consistent production – produced over 100 million ounces of silver and 1 million ounces of Roch
Slide 31: Silver Valley Mine - Idaho, USA
Appendix B (cont’d) Silver Valley Mine – Idaho, USA (Newco 100%) Located in the Coeur d’Alene Silver Mining District of Idaho One of the world’s most prolific silver producing areas Properties have been in production since Silver Valley 1955 with a total production of 160 million Idaho ounces
Slide 32: Cerro Bayo and Martha Mines - Chile/Argentina
Appendix B (cont’d) Cerro Bayo and Martha Mines – Chile/Argentina (Newco 100%) Cerro Bayo is located in southern Chile and is a high-grade gold and silver mine utilizing both underground and open pit methods Martha is a high-grade underground silver mine located 270 miles southeast of Cerro Bayo
Slide 33: San Bartolome Development Project - Bolivia
Appendix B (cont’d) San Bartolome Development Project – Bolivia (Newco 100%) Located near the city of Potosi, Bolivia Open pit mine silver project Coeur acquired the mineral rights to the project in 1999 Located adjacent to established industrial infrastructure San Bartolome Updated feasib
Slide 34: Kensington Gold Development Project - Alaska
Appendix B (cont’d) Kensington Gold Development Project – Alaska (Newco 100%) Located 45 miles north of Juneau in southeast Alaska Underground deposit Coeur expects all permits to be received Kensington in Q3 2004 Alaska Coeur expects an updated feasibility study on the project during 2004,
Slide 35: Bajo de la Alumbrera Mine - Argentina
Appendix B (cont’d) Bajo de la Alumbrera Mine – Argentina (Newco 37.5%) Located in the northwest of Argentina Wheaton acquired a 37.5% interest in this large open pit gold and copper mine in two separate transactions, both in 2003 Co-ownership of the mine includes Xstrata (operator) at 50% and
Slide 36: Luismin Complex - Mexico
Appendix B (cont’d) Luismin Complex – Mexico (Newco 100%) Located in the San Dimas district, on the border of Durango and Sinaloa states and in the state of Querétaro Acquired by Wheaton in June of 2002 Consists of the Tayoltita, Santa Rita, LUISMIN San Antonio and the San Martin mines Mexico
Slide 37: Peak Mine - Australia
Appendix B (cont’d) Peak Mine – Australia (Newco 100%) Located 600km west of Sydney Acquired by Wheaton in March 2003 and includes 50km of adjacent exploration ground Consists of several underground and open pit ore bodies PEAK Australia Estimated 2004 production of 130,000 ounces of gold at
Slide 38: Amapari Gold Development Project - Brazil
Appendix B (cont’d) Amapari Gold Development Project – Brazil (Newco 100%) Located in Brazil’s Amapa State. Acquired in January, 2004 Consists of an open pitable heap leach oxide deposit and an underground sulphide deposit AMAPARI Construction of the project commenced in Brazil November 2003
Slide 39: Los Filos Gold Deposit - Mexico
Appendix B (cont’d) Los Filos Gold Deposit – Mexico (Newco 100%) Located in Mexico’s Guerrero State Acquired by Wheaton in 2003 LOS FILOS Previous owner Teck Cominco had explored Mexico Los Filos with over 400 drillholes totalling 90,000 metres of drilling Column testwork to date on Los Filo
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