Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q2 2024 Earnings Presentation
56 slides from Coeur Mining's earnings presentation, Aug 8, 2024
Slide 1: 2024 Second Quarter Earnings
2024 Second Quarter Earnings 11:00 a.m. ET, August 8, 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: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights • Expanded Rochester achieved mid-year target run rates • Strong revenue and adj. EBITDA driven by higher prices • Continued positive results from Kensington’s multi-year exploration program • Completed the acquisition of key concessions near Palmarejo • Gold and
Slide 4: Production Summary
Production Summary Full-Year Implied 2Q 2024 1H 2024 Guidance1 Progress2 2H 2024 Comments Gold Production (oz) • Production reflects lower throughput and decreased average recoveries quarter-over- Palmarejo 25,467 58,627 95,000 – 103,000 59% 36,373 – 44,373 quarter • Higher average grades quarter-ov
Slide 5: Rochester Expansion: Ramp-Up Complete
Rochester Expansion: Ramp-Up Complete Construction, commissioning and ramp-up of Rochester is now complete with the announcement of achieving throughput rates of over 88,000 tons per day. At full capacity, throughput levels are expected to be ~32 million tons per year, making Rochester one of the wo
Slide 6: Rochester Expansion: World Class Asset – By the Numbers
Rochester Expansion: World Class 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 •
Slide 7: 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 and Wharf targeting reserve increases Total Exploration
Slide 8: Palmarejo: Fresnillo Transaction Adds Exploration Potential
Palmarejo: Fresnillo Transaction Adds Exploration Potential On July 8, 2024, the purchase of two key blocks of mining concessions adjacent to the Palmarejo gold-silver complex closed. The purchase from a subsidiary of Fresnillo unlocks significant near-term and longer-term potential to extend Palmar
Slide 9: Wharf: Increased Investment to Extend Mine Life
Wharf: Increased Investment to Extend Mine Life Two new opportunities were recently identified with the potential to substantially extend Wharf’s mine life near existing mining areas. The two targets, North Foley and Juno, will be drill-tested over the remainder of 2024 and 2025 to demonstrate the s
Slide 10: Financial Summary
Financial Summary ($M, except metal sales, adj. EBITDA margin and per share amounts) 2Q 2024 1Q 2024 QoQ ∆ 2Q 2023 YoY ∆ Metal Sales Gold ounces sold (oz) 76,932 81,416 (6%) 67,090 15% Silver ounces sold (M oz) 2.6 2.6 (0%) 2.3 11% Key Financials Revenue $222.0 $213.1 4% $177.2 25% 1 Exploration inv
Slide 11: Investing in Organic Growth Opportunities
Investing in Organic Growth Opportunities Capital Expenditures by Mine Capital Expenditures Composition (% companywide total) (% companywide total) 1% 1% 1% 3% 3% 15% 18% 22% 11% 35% 2023 36% 2024E1 2023 2024E1 $365M $160M-$200M $365M $160M-$200M 65% 39% 78% 72% Palmarejo Rochester Kensington Sustai
Slide 12: Balance Sheet Update
Balance Sheet Update Liquidity Profile1,2 ($M) $400 ($30) $100 $270 $74 $170 $96 ($275) Revolver Letters Revolver Revolver Cash and Total Revolver Total Potential Capacity of Credit Borrowings Availability Equivalents Liquidity Accordion Liquidity Liquidity Profile Potential Sources of June 30, 2024
Slide 13: Coeur’s Capital Allocation Framework
Coeur’s Capital Allocation Framework Mining is capital intensive and requires a disciplined approach to capital allocation with a view toward long-term reserve replacement and growth Illustrative Return Key Benefits Key Considerations Safety/ Reflects the Company’s values Environment/ − Mitigate
Slide 14: Looking Ahead: Key Deliverables for 2024
Looking Ahead: Key Deliverables for 2024 • Optimize the expanded Rochester operation with a focus on achieving targeted crush size • Deliver predictable operating and financial results across portfolio in line with production and cost guidance ranges • Accelerate incremental, high-return explorat
Slide 15: 2024 Guidance
2024 Guidance Production Outlook1 Gold (oz) Silver (K oz) Palmarejo 95,000 – 103,000 5,900 – 6,700 Rochester 37,000 – 50,000 4,800 – 6,600 Kensington 92,000 – 106,000 - Wharf 86,000 – 96,000 - Consolidated 310,000 – 355,000 10,700 – 13,300 CAS Outlook2 Previous3 Updated1 Gold ($/oz) Silver ($/oz) Go
Slide 16: ESG Highlights
ESG Highlights NYSE: CDE 16 JC 2016
Slide 17: Community Engagement Highlights
Community Engagement Highlights We aim to positively contribute to local communities and economies by prioritizing local hiring and procurement practices, supporting youth and non- profit organizations, increasing our cultural awareness and being an active participant in local community priorities t
Slide 18: Employees Empowering Communities
Employees Empowering Communities Coeur Rochester welcomes northern Nevada educators in Coeur Chicago volunteers at Coeur Silvertip attends the Daylu Dena Council’s Cultural connection with the Nevada Mining Association Teacher’s Cradles to Crayons Center grand opening celebration workshop Coeur Whar
Slide 19: Industry Advocacy and Partnerships
Industry Advocacy and Partnerships Pursuing a Higher Standard by leveraging the power of industry advocacy and partnerships to facilitate knowledge exchange with the aim of driving and achieving industry best-practices and enabling a resilient and innovative industry ecosystem Coeur team members Min
Slide 20: Industry-Leading Safety Performance
Industry-Leading Safety Performance Coeur has been certified in the National Mining Association’s CORESafety program since 2017 and completed its recertification in July 2021 Coeur’s injury frequency rate remains significantly below industry averages, resulting in the lowest Total Reportable Injury
Slide 21: Appendix
Appendix NYSE: CDE 21 JC 2016
Slide 22: Palmarejo
Palmarejo The Palmarejo gold-silver complex is located in the state of Chihuahua, Mexico, consisting of a legacy open pit mine, current underground mining and processing operations as well as several other deposits and exploration targets Asset Overview Share of Companywide 2024E2 Production Ownersh
Slide 23: Palmarejo (cont.)
Palmarejo (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,023 $15.56 $15.26 $1,006 $901 Capital expenditures $15.16 $1,010 $15.24 $917 $13.18 $25.6 $24.1 $23.7 $22.6 33 1,818 $18.6 1,617 27 1,601 1,621 25 25 1,596 23 $11.9 $10.8 $8.9 $
Slide 24: 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 25: Rochester (cont.)
Rochester (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow $1,899 $1,813 Capital expenditures $1,646 $1,564 $1,630 $84.4 $23.64 $21.58 $65.6 $61.5 $20.39 $19.33 $18.17 1,340 20 973 $27.5 $21.2 683 699 $11.6 608 8 6 6 4 ($3.8) ($5.9) ($17.3
Slide 26: Kensington
Kensington The Kensington mine is an underground gold operation located in southeast Alaska, consisting of the Kensington Main deposit, Raven deposit, Jualin deposit, as well as other nearby deposits and exploration targets Asset Overview Share of Companywide 2024E2 Production Ownership 100% Gold Em
Slide 27: Kensington (cont.)
Kensington (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) $2,927 Operating cash flow2 Capital expenditures$15.8 $16.5 $15.1 $13.3 $11.7 $1,840 $1,734 $1,543 $1,441 $6.3 $6.1 $4.6 $1.5 27 25 23 21 13 ($13.6) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 2Q 2023 3Q
Slide 28: Wharf
Wharf The Wharf mine is an open pit, heap leach gold operation located in western South Dakota. The property consists of several areas of adjoining gold mineralization, which have been mined as a series of open pits Asset Overview Share of Companywide 2024E2 Production Ownership 100% Gold Employees1
Slide 29: Wharf (cont.)
Wharf (cont.) Production and Cost Performance Operating Cash Flow and Capital Expenditures ($M) Operating cash flow Capital expenditures $1,267 $33.8 $1,165 $28.8 $1,035 $997 30 $822 $19.5 26 $17.0 23 22 20 $11.1 $0.7 $1.5 $1.2 $0.1 $0.3 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 2Q 2023 3Q 2023 4Q 202
Slide 30: Silvertip
Silvertip The Silvertip exploration project is one of the highest-grade polymetallic projects in the world. The site is located in northern British Columbia, Canada and sits within a highly prospective land package Asset Overview Ownership 100% Employees1 68 Claims 98,834 net acres Type Underground
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations NYSE: CDE 31 JC 2016
Slide 32: Non-GAAP to U.S. GAAP Reconciliation for Guidance
Non-GAAP to U.S. GAAP Reconciliation for Guidance Unaudited Updated Costs Applicable to Sales Guidance for 2024 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S. GAAP) $261,913 $147,456 $195,337 $102,0
Slide 33: Non-GAAP to U.S. GAAP Reconciliation for Guidance (cont.)
Non-GAAP to U.S. GAAP Reconciliation for Guidance (cont.) Unaudited Previous Costs Applicable to Sales Guidance for 2024 ($ 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 $199,9
Slide 34: Non-GAAP to U.S. GAAP Reconciliation
Non-GAAP to U.S. GAAP Reconciliation Costs Applicable to Sales Unaudited 3 months ended June 30, 2024 ($ thousands, except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $59,070 $45,225 $47,166 $20
Slide 35: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended March 31, 2024 ($ 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 $4
Slide 36: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 12 months ended December 31, 2023 ($ 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 $197,
Slide 37: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended December 31, 2023 ($ 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 $85,155
Slide 38: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended September 30, 2023 ($ 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 $34,70
Slide 39: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Costs Applicable to Sales Unaudited 3 months ended June 30, 2023 ($ 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 $43
Slide 40: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted Net Income (Loss) ($ thousands) 2Q 2024 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 Net income (loss) $1,426 ($29,117) ($103,612) ($25,505) ($21,109) ($32,412) Fair value adjustments, net - - (3,384) 1,245 2,010 3,922 Foreign exchange (gain) l
Slide 41: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Adjusted EBITDA ($ thousands) 2Q 2024 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 Net income (loss) $1,426 ($29,117) ($103,612) ($25,505) ($21,109) ($32,412) Interest expense, net of capitalized interest 13,162 12,947 29,099 7,396 7,402 6,912 Income ta
Slide 42: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited LTM Adjusted EBITDA ($ thousands) 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 Net income (loss) ($74,305) ($108,142) ($103,612) ($29,018) ($65,353) Interest expense, net of capitalized interest 40,907 34,656 29,099 29,894 28,424 Income tax provision
Slide 43: Non-GAAP to U.S. GAAP Reconciliation (cont.)
Non-GAAP to U.S. GAAP Reconciliation (cont.) Unaudited Free Cash Flow ($ thousands) 2Q 2024 1Q 2024 2023 4Q 2023 3Q 2023 2Q 2023 Cash flow from operating activities $15,249 ($15,871) $67,288 $65,277 ($2,383) $39,397 Capital expenditures (51,405) (42,083) (364,617) (92,715) (112,273) (85,581) Free ca
Slide 44: 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 45: 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 46: 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 47: 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 48: 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 49: 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 50: Reserves and Resources (cont.)
Reserves and Resources (cont.) 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 228,413,0
Slide 51: 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 52: 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 53: 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 54: Board of Directors
Board of Directors Mitchell J. Krebs – Chairman, President and Chief Executive Officer. See prior slide. J. Kenneth Thompson – Independent Lead Director. Member of the board of directors of Alaska Air Group, Inc. (parent company of Alaska Airlines, Virgin America Airlines and Horizon Air). Former Ch
Slide 55: 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 56: 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 Senior Director, Investor Relations investors@coeur.com NYSE: CDE 56 JC 2016