Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Investor Presentation (May 2024)
65 slides from Coeur Mining's investor presentation, May 30, 2024
Slide 1: Corporate Presentation
Corporate Presentation May 2024 NYSE: CDE NYSE: CDE 1 JC 2016
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 involving strategic priorities and company strategies, growth, anticipated production, costs and expenses, exploration and de
Slide 3: Cautionary Statements (cont.)
Cautionary Statements (cont.) Cautionary Statements Regarding Company Outlook In connection with Coeur’s regular planning process, Coeur’s management prepared certain unaudited financial and operating projections, some portions of which are included in this presentation. These projections were not p
Slide 4: Company Overview
Company Overview Headquartered in Chicago, IL, Coeur Mining is a growing, multi-asset precious metals producer with a focus on generating sustainable, high-quality cash flow from its North American asset base U.S. organic growth offers unique near-term catalyst Company Snapshot Listing: NYSE: CDE Sh
Slide 5: Coeur Investment Case
Coeur Investment Case Multiple near-term catalysts converging in 2024 ~45% • Expected ’23-25 Ag production growth driven by Rochester (NV) 18% / 88% • Five-year AuEq.1 reserve and resource growth ~$1B • Investment in exploration and expansions (‘17–23) ~2/3 rd s • U.S. based revenue and silver
Slide 6: Precious Metals Are Coeur to Everyday Life
Precious Metals Are Coeur to Everyday Life Coeur is an important part of the supply chains for gold and silver. Due to their unique properties, gold and silver have numerous innovative uses that shape the way we live today and enable a more sustainable, healthier tomorrow Au Coeur’s Palmarejo, Roche
Slide 7: Silver – Paving the Way for Electrification
Silver – Paving the Way for Electrification1,2,3 As the most conductive metal of electricity, silver is helping to shape the world’s cleaner and greener future. Demand is rising rapidly to all-time highs, especially for solar panels, automobiles, and 5G technology, which is leading to chronic struct
Slide 8: Rochester: World Class Silver Asset – By the Numbers
Rochester: World Class Silver Asset – By the Numbers #1 • Largest open pit heap leach operation in North America1 #3 • Third-largest open pit heap leach operation in the world 1 #1 • Largest silver reserve asset in the U.S. 2 #3 • Third-largest silver reserve asset in North America 2 #4 • Fou
Slide 9: Rochester Expansion: Ramp-Up On Track
Rochester Expansion: Ramp-Up On Track Rochester expansion construction and commissioning is now complete. The crushing circuit has routinely exceeded 70,000 TPD1 since commissioning was completed. Commercial production was achieved as of March 31, 2024 and the ramp-up to sustained nameplate capacity
Slide 10: Rochester Expansion: Ramp-Up Outlook
Rochester Expansion: Ramp-Up Outlook Ramp-up is expected to be completed by the end of the second quarter, leading to significantly higher expected production and lower anticipated CAS per ounce Cost Performance1 ( 3 7 )% $25.74 $23.57 $23.97 $2,268 $1,922 $1,691 $14.00 - $16.00 (32)% $1,200 - $1,40
Slide 11: Untapped Exploration Potential at Rochester
Untapped Exploration Potential at Rochester The key areas of focus in 2024 at Rochester relate to testing of higher-grade targets with the potential to enhance the current life of mine • Largest reserve of any primary silver mine in the U.S. • District land position is 43,441 net acres • Incre
Slide 12: Sustaining a Higher Level of Exploration Investment
Sustaining a Higher Level of Exploration Investment The Company remains focused on delivering results through the drill bit in 2024 with significant investments expected at Palmarejo and Silvertip targeting resource expansion and at Kensington targeting reserve increases Total Exploration Investment
Slide 13: Expanded Reserve and Resource Base
Expanded Reserve and Resource Base Coeur’s 2023 exploration program was successful in growing resources via new discoveries. The Company has invested nearly $245 million in exploration over the past five years, contributing to significant overall reserve and resource growth Proven & Probable Reserve
Slide 14: Kensington: Blueprint for a Longer Mine Life
Kensington: Blueprint for a Longer Mine Life The Company began a multi-year exploration investment program in 2022 aimed at leveraging evolving geologic understanding of Kensington’s primary deposits. 2024 is the last year of this program with expected meaningful increases in the mine life • Early
Slide 15: Silvertip: Critical Minerals in a Top Jurisdiction
Silvertip: Critical Minerals in a Top Jurisdiction Coeur remains optimistic about the long-term opportunity for Silvertip as a transformative cornerstone asset. The Company is focused on targeted exploration and prudent cost management to further grow this high-grade resource and advance a robust bu
Slide 16: Wharf: A Case Study for Successful M&A
Wharf: A Case Study for Successful M&A Acquired in early 2015 for $99.5 million, Wharf has generated cumulative FCF1 of more than 4x its original investment, driven by operational improvements, targeted investments in exploration, and several technical and modeling enhancements Free Cash Flow2 W h a
Slide 17: Inflationary Cost Pressures Remain
Inflationary Cost Pressures Remain Coeur has continued to experience inflationary pressures – particularly compared to 24 months ago – with recent easing in some areas Diesel Cost Per Gallon Materials, Parts and Supplies Cost (9%) +38% $36.6 $33.5 $34.0 $33.9 $31.9 $3.62 $3.62 $3.68 $3.49 $3.36 $3.2
Slide 18: Balance Sheet and Hedging Summary
Balance Sheet and Hedging Summary Liquidity Profile1,2 Debt and Leverage Summary1,3 ($M) ($M) Mar. 31, Dec. 31, Mar. 31, 2023 2023 2024 $400 5.125% senior notes due 2029 369.4 295.1 289.5 ($30) $100 $313 Revolving credit facility 60.0 175.0 225.0 $68 $213 Capital lease obligations 64.6 75.2 71.0 $14
Slide 19: Coeur’s Leverage to Metals Prices
Coeur’s Leverage to Metals Prices Due to a variety of factors, Coeur’s stock price tends to be more sensitive to changes in metals prices, particularly silver, than its peers. With recent spikes in metals prices, Coeur has begun to outperform its peers in the market Beta to Gold1 2.9 2.7 2.5 2.4 2.4
Slide 20: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 1Q 2024 4Q 2023 QoQ ∆ 1Q 2023 YoY ∆ Metal Sales Gold ounces sold (oz) 81,416 99,540 (18%) 70,866 15% Silver ounces sold (M oz) 2.6 3.0 (13%) 2.6 0% Key Financials Revenue $213.1 $262.1 (19%) $187.3 14% 1 Exploration
Slide 21: Recent ESG Accomplishments
Recent ESG Accomplishments Coeur remains committed to being an ESG leader Published GHG emissions Tied executive Published Tailings target: 35% reduction in net compensation and Sourced renewable power for Management Policy with intensity by end of 2024 individual incentive Rochester and Wharf Globa
Slide 22: Looking Ahead: Key Deliverables for 2024
Looking Ahead: Key Deliverables for 2024 • Safely and successfully complete Rochester ramp-up and transition to optimization initiatives • Deliver predictable operating and financial results across portfolio in line with production and cost guidance ranges • Accelerate incremental, high-return ex
Slide 23: 2024 Guidance
2024 Guidance1 Production Outlook Gold (oz) Silver (K oz) Palmarejo 95,000 – 103,000 5,900 – 6,700 Rochester 37,000 – 50,000 4,800 – 6,600 Kensington 92,000 – 106,000 - Wharf 86,000 – 96,000 - Consolidated 310,000 – 355,000 10,700 – 13,300 CAS Outlook2 Gold ($/oz) Silver ($/oz) Palmarejo (co-product
Slide 24: ESG Highlights
ESG Highlights NYSE: CDE 24 JC 2016
Slide 25: What Matters to Coeur
What Matters to Coeur Coeur strives to be an industry leader in ESG, integrating factors into each aspect of its operations, activities and strategic decision-making as the Company looks to the future. The following list includes environmental, social and governance issues that matter most to Coeur
Slide 26: 2023 ESG Report
2023 ESG Report1 Coeur published its fifth annual ESG Report on April 23, 2024, highlighting its ongoing environmental and social responsibility and leading governance practices Report Highlights • Lowest Total Reportable Injury Frequency Rate (TRIFR) among peers according to MSHA standards, at 0.4
Slide 27: Committed to Reaching our GHG Target
Committed to Reaching our GHG Target In 2022, Coeur linked a meaningful amount of management’s long-term compensation to the achievement of its 35% net intensity emission reduction goal. In 2023, the Company took further action to decarbonize and to mitigate climate-related risks Objective: Lessen C
Slide 28: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has been certified in the National Mining Association’s CORESafety program since 2017 and completed its recertification in July 2021 Coeur’s injury frequency rate remains significantly below industry averages, resulting in the lowest Total Reportable Injury
Slide 29: 2024 World Silver Survey Highlights
2024 World Silver Survey Highlights • Second consecutive year of record high use of silver in industrial applications in 2023, representing a 11% year- over-year increase • Continued structural gains from green economy applications • 64% increase in year-over-year photovoltaic demand and faster a
Slide 30: Appendix
Appendix NYSE: CDE 30 JC 2016
Slide 31: Coeur’s Capital Allocation Framework
Coeur’s Capital Allocation Framework Mining is capital intensive and requires a disciplined approach to capital allocation with a view toward long-term reserve replacement and growth Illustrative Return Key Benefits Key Considerations Safety/ Reflects the Company’s values Environment/ − Mitigate
Slide 32: Palmarejo
Palmarejo The Palmarejo gold-silver complex is located in the state of Chihuahua, Mexico, consisting of a legacy open pit mine, current underground mining and processing operations as well as several other deposits and exploration targets Asset Overview Share of Companywide 2024E2 Production Ownersh
Slide 33: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,023 $15.56 $1,010 $926 Capital expenditures $901 $15.16 $15.26 $13.94 $917 $13.18 $25.6 $24.1 $22.6 33 1,818 $18.6 1,752 1,617 27 1,601 1,621 25 25 23 $11.5 $11.9 $10.8 $10.2 $8
Slide 34: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which completed a significant expansion in November 2023 that is expected to drive a step-change in production and cash flow Asset Overview Share of Companywide 2024E2 Production Ownership 100%
Slide 35: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,899 Capital expenditures $1,655 $1,646 $1,630 $1,564 $84.4 $23.64 $65.6 $61.5 $20.24 $20.39 $19.33 $18.17 $52.0 1,340 20 $21.2 761 699 683 $11.6 608 8 6 6 4 ($3.8) ($13.5) ($17.
Slide 36: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2024E2 Production Ownership 100% Gold Em
Slide 37: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $2,927 Operating cash flow2 Capital expenditures $15.8 $15.1 $13.3 $1,775 $11.7 $1,840 $10.7 $1,543 $1,441 $6.3 $6.1 $5.1 $1.5 27 25 20 21 13 ($13.6) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 2
Slide 38: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2024E2 Production Ownership 100% Gold Employees1
Slide 39: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,466 Capital expenditures $33.8 $1,267 $1,165 $28.8 $1,035 $997 30 $19.5 26 23 20 15 $11.1 $1.9 $1.5 $0.1 $0.1 $0.7 $0.3 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 2Q 2023 3Q 20
Slide 40: Silvertip
Silvertip The Silvertip exploration project is one of the highest-grade polymetallic projects in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 68 Claims 98,834 net acres Type Underground
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 41 JC 2016
Slide 42: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Costs Applicable to Sales Guidance for 2024 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $258,870 $129,322 $199,980 $108,330 Amort
Slide 43: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended March 31, 2024 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $66,896 $33,632 $44,885 $2
Slide 44: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $230,018 $197,
Slide 45: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $60,345 $85,155
Slide 46: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $57,083 $34,70
Slide 47: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $54,608 $29,717 $43
Slide 48: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2023 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $57,984 $48,083 $4
Slide 49: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 1Q 2023 2022 Net income (loss) ($29,116) ($103,612) ($25,505) ($21,109) ($32,412) ($24,586) ($78,107) Fair value adjustments, net - (3,384) 1,245 2,010 3,922 (10,561)
Slide 50: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 1Q 2023 2022 Net income (loss) ($29,116) ($103,612) ($25,505) ($21,109) ($32,412) ($24,586) ($78,107) Interest expense, net of capitalized interest 12,946 29,099 7,396 7,402 6,91
Slide 51: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 Net income (loss) ($108,142) ($103,612) ($29,018) ($65,353) ($110,375) Interest expense, net of capitalized interest 34,656 29,099 29,894 28,424 26,682 Income tax provisio
Slide 52: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 1Q 2023 2022 Cash flow from operating activities ($15,871) $67,288 $65,277 ($2,383) $39,397 ($35,003) $25,616 Capital expenditures (42,083) (364,617) (92,715) (112,273) (85,581) (
Slide 53: Reserves and Resources
Reserves and Resources 2023 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 4,203,000 0.060 4.21 252,000 17,698,000 Rochester Nevada, USA 465,919,000 0.002 0.38 1,135,000 177,472,000 Kensington
Slide 54: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2023 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 5,674,000 0.070 4.56 396,000 25,875,000 Ro
Slide 55: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2023 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) INFERRED RESOURCES Palmarejo Mexico 4,207,000 0.091 4.50 381,000 18,933,000 Rochester Nevada, USA 135,104,000 0.0
Slide 56: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2023 Mineral Reserves: (1) The Mineral Reserve estimates are current as of December 31, 2023 and are reported using the definitions in Item 1300 of Regulation S–K (17 CFR Part 229) (SK1300) and were prepared by the company’s technical staff. (2) Assumed metal
Slide 57: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2023 Mineral Resources: (1) Mineral Resource estimates are reported exclusive of Mineral Reserves, are current as of December 31, 2023, and are reported using definitions in SK1300 on a 100% ownership basis. Mineral Resource estimates were prepared by the Comp
Slide 58: Reserves and Resources (cont.)
Reserves and Resources (cont.) Notes to 2023 Mineral Resources (cont.): (9) Wilco Open Pit Mineral Resource estimates are reported using an equivalent gold cutoff of 0.20 ounces per ton assuming a silver to gold ratio of 60:1. Resources are reported in-situ and contained withed a conceptual measured
Slide 59: Reserves and Resources
Reserves and Resources 2018 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) PROVEN RESERVES Palmarejo Mexico 1,283,000 0.084 4.97 108,000 6,376,000 Rochester Nevada, USA 228,413,000 0.003
Slide 60: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2018 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) MEASURED RESOURCES Palmarejo Mexico 604,000 0.086 4.77 52,000 2,880,000 Roches
Slide 61: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2018 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Zinc (%) Lead (%) Gold (oz) Silver (oz) Zinc (lbs) Lead (lbs) INFERRED RESOURCES Palmarejo Mexico 5,875,000 0.065 4.36 384,000 25,609,000 Rochester Nevada, USA 235,062,000 0.0
Slide 62: Executive Leadership
Executive Leadership Mitchell J. Krebs – Chairman, President and Chief Executive Officer. During his twenty-year tenure with Coeur, Mr. Krebs has led nearly $2 billion in capital raising and debt restructuring activities and has facilitated over $2 billion of acquisitions and divestitures. Mr. Krebs
Slide 63: Board of Directors
Board of Directors Mitchell J. Krebs – Chairman, President and Chief Executive Officer. See prior slide. Linda L. Adamany – Member of the board of directors of Jefferies Financial Group (formerly known as Leucadia National Corporation), a diversified holding company engaged in a variety of businesse
Slide 64: Board of Directors (cont.)
Board of Directors (cont.) Rob Krcmarov – Mr. Krcmarov is a geologist and experienced mining executive with approximately 35 years of exploration, operations and corporate leadership experience spanning five continents. Mr. Krcmarov most recently served as a technical advisor to Barrick Gold Corpora
Slide 65: Contact Information
Contact Information Corporate Office Coeur Mining, Inc. 200 S. Wacker Dr., Suite 2100 Chicago, IL 60606 Main Telephone +1 (312) 489-5800 Stock Ticker NYSE: CDE Website www.coeur.com Contact Jeff Wilhoit Director, Investor Relations investors@coeur.com NYSE: CDE 65 JC 2016