Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Shareholder Meeting (April 2020)
43 slides from Coeur Mining's shareholder meeting presentation, Apr 13, 2020
Slide 1: 2020 Proxy Statement Highlights
2020 Proxy Statement Highlights April – May 2020
Slide 2: Forward-looking statements
This presentation contains forward‐looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding executive compensation program components and environmental, social and governance (“ESG”) initiatives. Such forward‐looking statements i
Slide 3: Reserves, Resources and Mineralized Material
Reserves, Resources and Mineralized MaterialCoeur is subject to the reporting requirements of the Securities Exchange Act of 1934 and applicable Canadian securities laws, and as a result we report our mineral reserves according to two different standards. Canadian reporting requirements for disclosu
Slide 4: Solicitation of proxies notice
In connection with the solicitation of proxies, Coeur Mining, Inc. (“Coeur”) filed with the SEC and mailed to stockholders a definitive proxy statement dated March 30, 2020 (the “Proxy Statement”). The Proxy Statement contains important information about Coeur and its 2020 Annual Stockholders’ Meeti
Slide 5: Relevant Terms
Relevant Terms We use the following terms in this presentation and in the Proxy Statement to describe our operations and results, some of which are non-GAAP financial measures. Please see the applicable non-GAAP reconciliation tables in the appendix to this presentation Adjusted EBITDA Earnings befo
Slide 6: 2020 Annual Stockholders' Meeting Voting Matters
2020 Annual Stockholders’ Meeting 6 Voting Matters Proposal Coeur Board Voting Recommendation 1 Election of the ten directors named in the proxy statement FOR each nominee 2 Ratification of the appointment of Grant Thornton LLP as Coeur’s independent registered public accounting firm for 2020 FOR 3
Slide 7: Company Overview
Headquartered in Chicago, IL, Coeur Mining (NYSE: CDE) is a well-diversified, growing precious metals producer with a repositioned portfolio, focused on generating sustainable, high-quality cash flow from its North American assets Company Overview Palmarejo Rochester Wharf Silvertip Kensington Corpo
Slide 8: Coeur's strategy
Coeur’s strategy is to safely and responsibly discover, develop and operate a balanced portfolio of quality precious metals assets to maximize cash flow, returns and net asset value Maintain a primary precious metals revenue mix and North American operating footprint Develop a well-sequenced pipelin
Slide 9: Human Capital Management
Effective human capital management is critical to achieving our strategic goals. Our leadership principles, Protect, Develop, Deliver, are the foundation we use to navigate employee success Human Capital Management ► Robust Succession Planning conducted annually for all levels of the organization, e
Slide 10: Qualified, Diverse Board Nominees
Qualified, Diverse Board Nominees Our Board, which includes a diverse mix of tenures, experiences and skills, is led by an independent chairman, and nine of ten directors are independent
Slide 11: Qualified, Diverse Board Nominees (cont.)
Qualified, Diverse Board Nominees (cont.)
Slide 12: 2019 Performance Highlights
2019 Performance Highlights From continuing operations. In 2019, the Company delivered solid improvements in annual financial results and continued to invest in our operations with a goal of increasing free cash flow and mine lives while Pursuing a Higher Standard to protect the health, safety and w
Slide 13: 2019 Performance Highlights (cont.)
2019 Performance Highlights (cont.) ► Continued Positive Environmental, Health and Safety Results – The Company’s lost-time injury frequency rate and total reportable injury frequency rate declined by 9% and 11%, respectively, YOY. Coeur also reduced its number of significant spills by 73% in 2019.
Slide 14: 2019 Performance Highlights (cont.)
2019 Performance Highlights (cont.) ► Three Consecutive Quarters of Increasing, Positive Free Cash Flow – Coeur generated $18.4 million of FCF(1) during the fourth quarter of 2019, representing a 63% increase compared to the prior period. The third consecutive quarter of increasing, positive FCF(1)
Slide 15: 2019 Performance Highlights (cont.)
2019 Performance Highlights (cont.) ► Success from 2019 Exploration Campaign Delivers Mineralization Growth – The Company focused its exploration efforts primarily on expansion drilling in 2019. Measured and indicated mineralized material increased across all metals. Proven and probable silver reser
Slide 16: Executive Compensation – Pay-for-Performance Philosophy
Executive Compensation – Pay-for-Performance Philosophy ► Drive performance against critical strategic goals designed to create long-term stockholder value► Pay our executives at a level and in a manner that attracts, motivates and retains top executive talent Direct Compensation Component Objective
Slide 17: Executive Compensation – Pay-for-Performance Philosophy (cont.)
Executive Compensation – Pay-for-Performance Philosophy (cont.) The two internal performance share metrics are subject to a relative TSR modifier that adjusts payouts +/- 25% for top or bottom quartile performance compared to peers. We designed the variable components of our 2019 executive compensat
Slide 18: Our Executive Compensation Practices
Our Executive Compensation Practices
Slide 19: 2019 CEO Compensation Tied to Stockholder Returns
2019 CEO Compensation Tied to Stockholder Returns 57% of compensation linked to stock performance (Based 100% on Company Performance)
Slide 20: 2019 Compensation Results Aligned with Performance
2019 Compensation Results Aligned with Performance Silver equivalent production and CAS includes zinc and lead as silver equivalents and silver equivalency based on average spot prices for the year ended December 31, 2019. See the Appendix to this presentation for average applicable spot prices and
Slide 21: 2019 Executive Compensation – Actual Pay Compared to Target
2019 Executive Compensation – Actual Pay Compared to Target Coeur’s multiyear CEO variable pay demonstrates alignment with stockholder returns Our NEO compensation program is structurally designed to be a strong performance-based program. In the case of the CEO, 81% of his target compensation is str
Slide 22: Continued Strong Stockholder Engagement in 2019
Continued Strong Stockholder Engagement in 2019
Slide 23: Select Compensation Program Changes for 2020
Select Compensation Program Changes for 2020 2019 2020 AIP ► Safety and environmental metrics comprise 15% of total corporate AIP ► Safety and environmental increased to 20% of total corporate AIP, reflecting the Company’s commitment to ESG and alignment with long-term stockholder value LTIP ► Perfo
Slide 24: Risk Oversight
Risk Oversight The Board is responsible for overseeing management’s mitigation of major risks facing Coeur. In addition, the Board has delegated oversight of certain categories of risk to the Audit Committee, the Environmental, Health, Safety and Corporate Responsibility Committee (“EHSCR”), the Com
Slide 25: Continuing Corporate Governance Enhancements
Continuing Corporate Governance Enhancements Corporate Governance Highlights and Best Practices Recent Corporate Governance and Executive Compensation Enhancements
Slide 26: ESG Highlights
ESG Highlights
Slide 27: Gold – Critical Now and for the Future
Gold – Critical Now and for the Future Gold is a vital component used in the technology and health industries as approximately 40% of gold use in the U.S. is for electronics while 10% of global gold use is for producing health-related products Current Gold Uses Source(s): National Mining Association
Slide 28: Silver – In Demand
Silver – In Demand The industrial demand for silver is high, and increasing focus on shifting to electrification is expected to require sustainable and reliable silver production 2018 Global Silver Demand Source(s): World Silver Survey 2019. Industrial Demand
Slide 29: Silver – Paving the Way for Electrification
Silver – Paving the Way for Electrification Silver is helping to shape the world’s cleaner and greener future Source(s): Sprott Media – Sprott Silver Report: Silver’s Critical Role in Electrification May Fuel Its Rise. National Mining Association – Copper, Gold & Silver: Keys to an Advanced Tech Fut
Slide 30: What Matters to Coeur
What Matters to Coeur Environmental Climate ChangeGreen House Gas EmissionsWater StewardshipWaste MinimizationBiodiversity Tailings ManagementClosure PlanningSocialHuman Capital ManagementFair Employment Practices and Equal OpportunityTraining and DevelopmentHealth, Safety & SecuritySocietyInvestmen
Slide 31: Leading Environmental, Social and Governance Initiatives
Leading Environmental, Social and Governance Initiatives Coeur continues to prioritize improving its environmental and social initiatives as well as its best-in-class corporate governance program Key ESG Accomplishments in 2019 Significantly increased external ratings and rankings Integrated ESG fun
Slide 32: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has held the National Mining Association CORESafety certification since 2017 Lost-Time Injury Frequency Rate Source(s): U.S. Department of Labor Mine Safety and Health Administration: Metal Operators Mine Safety and Health Statistics. Injuries per 200,000 em
Slide 33: 2019 International EHS Innovation Award Winner
2019 International EHS Innovation Award Winner Coeur is committed to being an industry leader in environmental, health and safety innovation, exemplified through the Company’s utilization of technology to protect its people, places and planet Technology Implementation at Coeur Global EHS Integrated
Slide 34: Demonstrating Our Commitment: Best-in-Class Governance Practices
Demonstrating Our Commitment Best-in-Class Governance Practices Board Refreshment and Succession Planning Three new independent directors added to the Board since early 2018 and six directors – more than 50% of the Board – added in last seven yearsActive Board succession planning and refreshment Rob
Slide 35: Significantly Improved Corporate Governance Profile
Significantly Improved Corporate Governance Profile Corporate Governance Enhancements Since 2010 2010 2020 Independent Board Chairman Entire Board of Directors is independent other than CEO Gender diversity on the Board Majority voting standard for uncontested Director elections Prox
Slide 36: Appendix
Appendix
Slide 37: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Adjusted EBITDA Unaudited ($ thousands) 2019 2018 Net income (loss) ($341,203) ($48,405) Income (loss) from discont. ops., net of tax - (550) Interest expense, net of capitalized interest 24,771 24,364 Income tax provision (benefit) (11,129) (16,780) Amortization
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) ($ thousands) 4Q 2019 3Q 2019 2Q 2019 Cash flow from operating activities $39,295 $41,996 $26,435 Capital expenditures (20,907) (30,678) (20,749) Gold production royalty payments - - - Free cash flow $18,388 $11,318 $5,686 Unaudited Free Cash Flow, Consol
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Free Cash Flow, Wharf ($ millions) 2019 Cash flow from operating activities $39.3 Capital expenditures (2.2) Free cash flow $37.1 Unaudited
Slide 40: 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 41: Board of Directors
Board of Directors Robert E. Mellor – Former Chairman, Chief Executive Officer, and President of Building Materials Holding Corporation (distribution, manufacturing, and sales of building materials and component products) from 1997 to January 2010, director from 1991 to January 2010; member of the b
Slide 42: Board of Directors (cont.)
Board of Directors (cont.) Jessica L. McDonald – Chair (former Interim CEO) of Canada Post Corporation and member of Board of Directors of Hydro One Limited. From October 2017 to March 2020, she was a member of the Board of Directors of Trevali Mining Corporation and served as Chair from March 2019
Slide 43: Contact Information
Contact Information Corporate Office Coeur Mining, Inc.104 S. Michigan Ave., Suite 900Chicago, IL 60603 Main Telephone +1 (312) 489-5800 Stock Ticker CDE: NYSE Website www.coeur.com Contact Paul DePartoutDirector, Investor Relationsinvestors@coeur.com