Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q3 2021 Earnings Presentation
61 slides from Coeur Mining's earnings presentation, Oct 28, 2021
Slide 1: 2021 Third Quarter Earnings
2021 Third Quarter Earnings 11:00 a.m. ET, October 28, 2021 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, expectations regarding environmental, social and governance (“ESG”) in
Slide 3: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights • Solid production results with stronger expected 4Q • Achieved another new quarterly exploration drilling record • Second highest quarterly cash flow at Wharf since acquisition • POA 11 expansion 42% complete; seeking to mitigate inflationary impacts • Readjust
Slide 4: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 3Q 2021 2Q 2021 QoQ ∆ 3Q 2020 YoY ∆ Metal Sales Gold ounces sold (oz) 89,804 88,501 1% 95,283 (6%) Silver ounces sold (M oz) 2.5 2.6 (4%) 2.6 (4%) Key Financials Revenue $208.0 $214.9 (3%) $229.7 (9%) 1 Exploration
Slide 5: Production Summary
Production Summary Full-Year Implied 3Q 2021 YTD Guidance1 Progress2 4Q 2021 Comments Gold Production (oz) • Sustained higher mill throughput and improved recoveries driven by ongoing blending optimization and business improvement initiatives Palmarejo 24,254 80,454 100,000 – 110,000 77% 19,546 – 29
Slide 6: 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 7: Sustaining a Higher Level of Exploration Investment
Sustaining a Higher Level of Exploration Investment Consistent with the largest exploration campaign in its history, Coeur achieved another new quarterly record by drilling roughly 326,500 feet (99,500 meters) during 3Q 2021. The Company slightly decreased its full-year 2021 exploration guidance to
Slide 8: Continued Exploration Success at Silvertip
Continued Exploration Success at Silvertip Coeur continues to generate positive exploration results at Silvertip, demonstrating significant near-mine, high-grade resource growth potential with continued drilling Silvertip Long Section – Looking East Silvertip Mountain Tour Ridge New Old Lower Mine C
Slide 9: Investing in Organic Growth Opportunities
Investing in Organic Growth Opportunities Capital Expenditures by Mine Capital Expenditures Composition (% companywide total) (% companywide total) 1% 1% 2% 13% 13% 21% 30% 20% 26% 40% 2020 2% 2021E1 2020 2021E1 $99M 8% $280M-$310M $99M $280M-$310M 60% 70% 56% 38% Palmarejo Rochester Kensington Sust
Slide 10: Rochester: Expansion Construction Update
Rochester: Expansion Construction Update Major construction for the expansion of Rochester continues to advance with solid ongoing environmental and safety performance. Overall project progress was approximately 42% complete at the end of 3Q 2021 I I Crushing circuit, including two HPGR units (capac
Slide 11: Rochester: Expansion Construction Update (cont.)
Rochester: Expansion Construction Update (cont.) Coeur completed crushing of over-liner material for the new Stage VI leach pad and commenced foundation work for the process plant and crusher corridor during 3Q 2021 Foundation work for secondary crusher Continued progress on excavation of crusher co
Slide 12: Balance Sheet and Hedging Summary
Balance Sheet and Hedging Summary Liquidity Profile Debt and Leverage Summary1,2 ($M) ($M) $100 $670 Sept. 30, Jun. 30 Sept. 30 $140 2020 2021 2021 5.875% senior notes due 2024 $227.4 - - $100 5.125% senior notes due 2029 - 367.8 368.0 $300 $85 $330 $245 Revolving credit facility 20.0 - 20.0 ($35) (
Slide 13: Looking Ahead
Looking Ahead • Maintain focus on rigorous health and safety protocols • Deliver consistent operating and financial results across portfolio • Successfully complete record exploration campaign to continue driving reserve and resource growth • Continue incorporating operational and technical enha
Slide 14: 2021 Guidance
2021 Guidance Production Outlook Gold (oz) Silver (K oz) Palmarejo 100,000 – 110,000 6,500 – 7,750 Rochester 22,500 – 32,500 3,200 – 4,400 Kensington 115,000 – 130,000 - Wharf 85,000 – 95,000 - Consolidated 322,500 – 367,500 9,700 – 12,150 CAS Outlook1 Previous2 Updated3 Gold ($/oz) Silver ($/oz) Go
Slide 15: ESG Highlights
ESG Highlights NYSE: CDE 15 JC 2016
Slide 16: What Matters to Coeur
What Matters to Coeur Environmental • Training and Development • Climate Change • Health, Safety & Security • Greenhouse Gas Emissions Society • Water Stewardship • Investment in Local Communities • Waste Minimization • Indigenous Rights • Biodiversity • Human Rights • Tailings Management Governance
Slide 17: 2021 Goal and Targets
2021 Goal and Targets Our People Goal: Maintain Coeur as an employer of choice • Safety: Zero harm – 7.5% reduction in three-year trailing average total reportable injury frequency rate • Culture: Strengthen culture, employee engagement and retention – ~30% increase in employee culture survey part
Slide 18: Coeur Diversity Details
Coeur Diversity Details Gender • 11% Female (up from 10% in 2020) Diversity • First and only • 66% Females are Supervisors and above precious metals mining CEO to sign the CEO ACTION for • 20% Promotions YTD have been females Diversity & Inclusion pledge Racial • Day of Diversity Understan
Slide 19: Coeur Culture Survey
Coeur Culture Survey 2021 Coeur Culture Survey with 93% participants who say we are… • SAFE • ETHICAL • ENGAGED • PROUD 92% 91% 87% I feel safe performing my job I feel effectively trained Coeur is committed to minimizing to be safe at work. its impact on the environment 87% 86% I am proud to
Slide 20: Safety is a Foundational Element of Coeur's Culture
Safety is a Foundational Element of Coeur’s Culture Coeur’s vision for safety is to continuously enhance its culture by working free of any uncontrolled exposures. The Company believes that safety does not truly improve unless exposure is controlled, reduced or eliminated • Received certification i
Slide 21: 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 Lost-Time Injury Frequency Rate Total Reportable
Slide 22: Key Components of Coeur's Health and Safety Program
Key Components of Coeur’s Health and Safety Program Management of Change Information Management Training Investigation & Controls Management of Change Ensures proper usage and Apply learning techniques, Establish a comprehensive process is utilized to prevent future expansion of current knowledge an
Slide 23: COVID-19 Response and Decision-Making Approach
COVID-19 Response and Decision-Making Approach Coeur’s principal objective to help combat COVID-19 is to safeguard the health, safety and well-being of its workforce, their families and the communities where the Company operates Guidance from k ey agencies U.S. Centers Mexican and Federal, for Disea
Slide 24: 2021 NIOSH Mine Safety and Health Award Winner
2021 NIOSH Mine Safety and Health Award Winner Coeur is honored to be recognized by The National Institute for Occupational Safety and Health (“NIOSH”) as the recipient of the NIOSH Mine Safety and Health Technology Innovations Award for 2021 • Prestigious award given for Coeur’s cross- functional
Slide 25: 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 countless innovative uses that shape the way we live today and enable a more sustainable, healthier tomorrow Au Coeur’s Palmarejo, Roch
Slide 26: Appendix
Appendix NYSE: CDE 26 JC 2016
Slide 27: 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 2021E2 Production Ownersh
Slide 28: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $13.34 $12.50 Capital expenditures $10.98 $49.7 $10.06 $9.61 $43.2 $704 $662 $602 $621 $542 $33.4 35 29 1,784 1,783 $23.2 29 28 1,667 1,708 1,603 24 $13.2 $8.9 $10.0 $9.8 $8.5 $5.0
Slide 29: Rochester
Rochester The Rochester mine is an open pit, heap leach silver-gold operation, located in northern Nevada, which is currently undergoing a significant expansion that is expected to drive a step-change in production and cash flow Asset Overview Share of Companywide 2021E2 Production Ownership 100% Go
Slide 30: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $1,787 Operating cash flow $42.3 $1,665 $40.1 $1,537 Capital expenditures $26.09 $1,300 $30.2 $22.68 $1,148 $20.18 $19.07 $16.8 $14.98 $9.8 1,020 888 $4.7 $4.0 740 774 739 $2.1 10 6 7 7 6 ($8.7) ($9.5
Slide 31: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2021E2 Production Ownership 100% Gold Em
Slide 32: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $1,150 Operating cash flow2 $1,128 $1,088 Capital expenditures $989 $25.9 $919 $21.0 $18.9 33 31 28 29 27 $14.2 $11.5 $7.2 $5.8 $6.0 $6.3 $5.3 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 3Q 2020 4Q 2020
Slide 33: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2021E2 Production Ownership 100% Gold Employees1
Slide 34: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow Capital expenditures $954 $952 $963 $971 $39.1 $804 33 $24.9 28 24 19 19 $17.3 $14.1 $7.8 $0.5 $1.2 $1.5 $1.4 $1.0 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 3Q 2020 4Q 2020 1Q 2021 2Q 20
Slide 35: Silvertip
Silvertip The Silvertip underground mine is one of the highest-grade silver-zinc-lead operations in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 93 Claims 98,834 net acres Type Undergrou
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 36 JC 2016
Slide 37: Non-GAAP to U.S. GAAP Reconciliation for Updated Guidance
Non-GAAP to U.S. GAAP Reconciliation for Updated Guidance Unaudited Costs Applicable to Sales Guidance for 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $195,983 $133,836 $181,100 $106,7
Slide 38: Non-GAAP to U.S. GAAP Reconciliation for Previous Guidance
Non-GAAP to U.S. GAAP Reconciliation for Previous Guidance Unaudited Costs Applicable to Sales Guidance for 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $200,530 $122,480 $190,150 $102,
Slide 39: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended September 30, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $47,763 $36,340 $47,36
Slide 40: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended June 30, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $50,189 $44,537 $41,913 $26
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2021 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $43,047 $27,610 $4
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2020 ($ thousands, except metal sales, per ounce or per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $170
Slide 43: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2020 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $48,672 $36,828
Slide 44: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2020 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $46,163 $22,38
Slide 45: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 3Q 2021 2Q 2021 1Q 2021 2020 4Q 2020 3Q 2020 Net income (loss) ($54,768) $32,146 $2,060 $25,627 $11,880 $26,856 Fair value adjustments, net 26,440 (37,239) 3,799 (7,601) (4,110) (2,243) Inventory write-do
Slide 46: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 3Q 2021 2Q 2021 1Q 2021 2020 4Q 2020 3Q 2020 Net income (loss) ($54,768) $32,146 $2,060 $25,627 $11,880 $26,856 Interest expense, net of capitalized interest 3,237 5,093 4,910 20,708 4,719 5,096 Income tax provision
Slide 47: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 3Q 2021 2Q 2021 1Q 2021 4Q 2020 3Q 2020 Net income (loss) ($8,682) $72,942 $39,587 $25,627 ($257,214) Interest expense, net of capitalized interest 17,959 19,818 20,490 20,708 21,501 Income tax provision (benefi
Slide 48: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 3Q 2021 2Q 2021 1Q 2021 2020 4Q 2020 3Q 2020 Cash flow from operating activities $21,846 $58,059 ($4,359) $148,709 $67,289 $79,464 Capital expenditures (71,266) (78,223) (59,424) (99,279) (37,393) (22,996) Free cash
Slide 49: Reserves and Resources
Reserves and Resources 2020 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 4,040,000 0.067 4.29 270,000 17,344,000 Rochester Nevada, USA 396,867,000 0.00
Slide 50: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 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 1,840,000 0.052 3.67 95,000 6,746,000 Roch
Slide 51: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2020 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 4,345,000 0.064 3.34 280,000 14,525,000 Rochester Nevada, USA 226,049,000 0.0
Slide 52: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2019 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 1,093,000 0.093 5.17 102,000 5,649,000 Rochester Nevada, USA 249,815,0
Slide 53: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2019 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 870,000 0.055 3.69 48,000 3,210,000 Roches
Slide 54: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2019 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 6,469,000 0.057 4.07 367,000 26,341,000 Rochester Nevada, USA 171,042,000 0.0
Slide 55: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Proven and Probable Mineral Reserves Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) PROVEN RESERVES Palmarejo Mexico 1,569,000 0.080 4.44 126,000 6,971,000 Rochester Nevada, USA 143,686,000 0.004 0.48 503,000 68,369,000 Kensing
Slide 56: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Measured and Indicated Mineral Resources (excluding Reserves) Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) MEASURED RESOURCES Palmarejo Mexico 818,000 0.061 3.20 50,000 2,618,000 Rochester Nevada, USA 39,732,000 0.003 0.59 13
Slide 57: Reserves and Resources (cont.)
Reserves and Resources (cont.) 2016 Inferred Mineral Resources Grade Contained Location Short tons Gold (oz/t) Silver (oz/t) Gold (oz) Silver (oz) INFERRED RESOURCES Palmarejo Mexico 4,726,000 0.055 4.35 258,000 20,540,000 Rochester Nevada, USA 67,778,000 0.003 0.52 178,000 35,554,000 Kensington Ala
Slide 58: Executive Leadership
Executive Leadership Mitchell J. Krebs – 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 was previ
Slide 59: Board of Directors
Board of Directors Robert E. Mellor – Independent Chairman of the board of Monro, Inc. (auto service provider) since June 2017, and appointed Interim Chief Executive Officer from August 2020 to April 2021. Previously Mr. Mellor was lead independent director from April 2011 to June 2017 and a member
Slide 60: Board of Directors (cont.)
Board of Directors (cont.) Jessica L. McDonald – Ms. McDonald has extensive leadership experience in both the public and private sectors and currently serves as a member of the Board of Directors of Hydro One Limited. She served as the President and Chief Executive Officer of BC Hydro and Power Auth
Slide 61: Contact Information
Contact Information Corporate Office Coeur Mining, Inc. 104 S. Michigan Ave., Suite 900 Chicago, IL 60603 Main Telephone +1 (312) 489-5800 Stock Ticker CDE: NYSE Website www.coeur.com Contact Paul DePartout Director, Investor Relations investors@coeur.com NYSE: CDE 61 JC 2016