Coeur Mining, Inc. · NYSE:CDE

Coeur Mining — Deutsche Bank Global Industrials & Materials Summit 2016

42 slides from Coeur Mining's conference presentation, Jun 8, 2016

  1. Slide 1: Deutsche Bank Global Industrials & Materials Summit

    Deutsche Bank Global Industrials & Materials Summit Courtney R. B. Lynn, Vice President, Investor Relations & Treasurer Chicago, IL June 8, 2016

  2. 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 regarding anticipated production, costs, mining rates, mine plans, grades, recovery rates, cash flow, mine life, exploration

  3. Slide 3: Why Coeur Mining

    Why Coeur Mining Well‐diversified, growing U.S. precious metals company Successful execution of Companywide repositioning Industry‐leading cost reductions driving strong cash flow growth Recent acquisitions beginning to have significant impact Strong liquidity position with several near‐term catalys

  4. Slide 4: Diversified Portfolio of Silver and Gold Assets

    Diversified Portfolio of Silver and Gold Assets Ticker: Exchange CDE: NYSE Kensington Mine, Alaska Shares Outstanding1 153.2M 2015: 126,266 oz Au 2016E: 115,000 ‐ 125,000 oz Au Avg. Daily Volume1 $29.9M Wharf Mine, South Dakota 2015: 78,132 oz Au 52‐week Low – High1 $1.62 ‐ $8.73 2016E: 90,000 – 95,

  5. Slide 5: Catalysts Driving Near- to Medium-Term Value

    Catalysts Driving Near‐ to Medium‐Term Value Palmarejo Rochester • Transitioning to UG‐only operation to • Completed $60M+ of investments to nearly maximize grade, margins and cash flow double mining rates, leading to 67% AgEq1 production growth between 2013 and 2015 • Accelerating mining rates from

  6. Slide 6: Leading Producer of Silver and Gold

    Leading Producer of Silver and Gold 2015 Silver Equivalent Production by Mine (millions of ounces) Revenue by Metal 0.6 22% 36% 34% 40% 48% 48% 60% 4.7 Palmarejo 9.4 Rochester 78% San Bartolomé 64% 66% Gold 7.6 60% Kensington 52% 52% Silver Wharf 40% 7.7 Endeavor 5.4 2009 2010 2011 2012 2013 2014 20

  7. Slide 7: Industry-Leading Cost Reductions Drive Strong Cash Flow Growth

    Industry‐Leading Cost Reductions Drive Strong Cash Flow Growth Companywide Adj. CAS / AgEq oz1 Companywide Adj. CAS / AuEq oz1 $13.96 $14.13 $951 $907 $ per AuEq oz $ per AgEq oz $13.68 $13.68 $12.75 $12.05 $764 $11.87 $11.08 $721 FY'13 FY'14 FY'15 1Q'16 FY'13 FY'14 FY'15 1Q'16 60:1 AgEq Realized Ag

  8. Slide 8: Industry-Leading Cost Reductions Drive Strong Cash Flow Growth

    Industry‐Leading Cost Reductions Drive Strong Cash Flow Growth % Decline 1Q 2016 vs 1Q 2015 % Decline FY 2015 vs FY 2014 % Decline FY 2015 vs FY 2013 PPP 35% NGD 42% NGD 18% HL HL 35% GG 10% 23% YRI 16% OGC 8% OCG OGC 10% PPP MND 1% 6% MND 1% NEM ‐2% ABX 5% ABX 0% IAG ‐3% IAG 4% IAG ‐2% GG ‐6% MND 2

  9. Slide 9: Declining G&A; Low Compared with Peer Group

    Declining G&A; Low Compared with Peer Group G&A as a % of Revenue Coeur G&A Expense 12.2% $60 $55.3 10.3% $55 8.7% $50 7.8% 7.7% 7.4% 7.2% 6.5% $45 5.9% $40.8 In Millions 5.3% 5.1% 4.8% $40 4.3% 2.7% 2.4% $35 $32.8 2.3% $30.0 $30 $25 NGD NEM PPP PAAS AG CDE ‐ 2013 GG CDE ‐ 2015 IAG HOC OGC YRI SSRI

  10. Slide 10: Well-Capitalized with Financial Flexibility

    Well‐Capitalized with Financial Flexibility Total debt / LTM Adj. EBITDA1  Debt used to fund high‐return, high‐impact investments  95% of total debt matures in 2020 or later  Flexibility and simplicity 6.5x 6.5x 6.2x  “Liquidity first; de‐levering second” philosophy 4.3x 4.1x  Provide basis for

  11. Slide 11: Sales of Non-Core Assets

    Sales of Non‐Core Assets Consideration Closing Date Asset Purchaser Total Details Mandalay Resources March 31, 2016 Cerro Bayo 2.0% NSR royalty $5.7M $4.0M cash; 2.5M shares Corporation April 19, 2016 La Cigarra 2.5% NSR royalty Kootenay Silver Inc. $3.6M $500,000 cash; 9.6M shares El Gallo NSR roya

  12. Slide 12: 2016 Guidance: Expect to Produce 37M AgEq oz

    2016 Guidance: Expect to Produce 34 – 37M AgEq oz2 Silver Production Gold Production 126,266 120,000 Ounces in thousands 5,900 5,436 5,149 4,631 5,000 92,500 4,138 Ounces 78,132 70,922 69,500 52,588 51,500 629 188 San Bartolomé Rochester Palmarejo Endeavor Kensington Wharf Palmarejo Rochester 1 2015

  13. Slide 13: Well-Positioned for Long-Term Success

    Well‐Positioned for Long‐Term Success Transitioning to strong, sustainable free cash flow Maintaining focus on liquidity and flexible balance sheet Extending and upgrading future production via near‐mine exploration Establishing Establishing pipeline pipeline ofof future, future, high‐quality high‐q

  14. Slide 14: Appendix

    Appendix

  15. Slide 15: Palmarejo: Among the World's Top Primary Silver Mines

    Palmarejo: Among the World’s Top 15 Primary Silver Mines Location: Chihuahua State, Northern Mexico Ownership: 100% Underground (open pit expected to Mining: be complete in 2Q 2016) Land Position: 135,131 acres Product: Silver and gold doré 2015 Production 2015 Adj. CAS1 P&P Reserves: 44.9M oz Ag, 6

  16. Slide 16: Palmarejo: Rising Production Levels from High-Grade Underground

    Palmarejo: Rising Production Levels from High‐Grade Underground Highlights $14.56 $13.48  Transitioning to underground mining to maximize $13.21 $11.40 $11.54 $13.52 margins and cash flow $12.07 $12.04 $10.18  Averaged over 1,800 tpd at Guadalupe in 1Q 2016 1.4 $10.01 1.4 1.2 22,974 1.1  Reached

  17. Slide 17: Palmarejo: Successful Transition to Lower-Tonnage, Higher-Grade

    Palmarejo: Successful Transition to Lower‐Tonnage, Higher‐Grade Underground Mine Well‐Advanced Tons Mined Average Recovery Rate 300 281 95.4% 258 247 92.1% 250 short tons (000s) 87.9% 200 216 89.1% 190 189 88.8% 150 173 149 102 78.7% 84.7% 78.5% 100 50 35 76.2% 73.9% 0 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16

  18. Slide 18: Rochester: Second Largest Primary Silver Mine in U.S.

    Rochester: Second Largest Primary Silver Mine in U.S. Location: Near Lovelock, Nevada Ownership: 100% Mining: Open pit, heap leach Land Position: 10,800 acres Product: Silver and gold doré P&P Reserves: 79.3M oz Ag, 477,000 oz Au 2015 Production 2015 Adj. CAS1 $12.36 / AgEq oz M&I Resources: 67.5M o

  19. Slide 19: Rochester: Production Rates Expected to Rise Throughout the Year

    Rochester: Production Rates Expected to Rise Throughout the Year Highlights $12.95 $12.37 $12.61 $12.01 $12.01  2015 production of 7.8M AgEq oz1 – second year of double‐digit percent production growth $11.91 $10.94 $10.89 $11.19 $11.29 1.3  2015 Adj. CAS / realized AgEq oz1 of $11.27, 18% 1.1 1.1

  20. Slide 20: Kensington: Higher-Grade Mine Plan Underway

    Kensington: Higher‐Grade Mine Plan Underway Location: Near Juneau, Alaska Ownership: 100% Mining: Underground Land Position: 12,400 acres Product: Gold concentrate P&P Reserves: 560,000 oz Au 2015 Production 2015 Adj. CAS1 M&I Resources: 518,000 oz Au 126,266 oz Au $798 / Au oz Inferred Resources: 6

  21. Slide 21: Kensington: Higher Grade Contributes to Strong Production at Lower Costs

    Kensington: Higher Grade Contributes to Strong Production at Lower Costs $842 Highlights $745 $777 $761  2015 production of 126,266 ounces – 3rd straight $797 year of record operating results 33,909 33,713 31,974 29,845 28,799  Re‐scoped mine plan demonstrates strategy to ounces source ore from hi

  22. Slide 22: Wharf: The Newest Addition to Coeur's Portfolio

    Wharf: The Newest Addition to Coeur’s Portfolio Location: Lead, South Dakota Ownership: 100% Mining: Open pit, heap leach Land Position: 5,212 acres Product: Electrolytic cathodic sludge P&P Reserves: 712,000 oz Au 2015 Production 2015 Adj. CAS1,2 M&I Resources: 167,000 oz Au 79,061 oz AuEq $706 / A

  23. Slide 23: Wharf: Coeur's Lowest Cost Mine and Largest Contributor to FCF

    Wharf: Coeur’s Lowest Cost Mine and Largest Contributor to FCF Highlights $970 $716 $556  Acquired in 2015 for $99 million from Goldcorp $667 32,231  Coeur’s lowest cost operation and largest source of 23,427 FCF, generating $28M in the 10‐months of 21,186 ounces 16,794 ownership in 2015 6,609  I

  24. Slide 24: San Bartolomé: One of the World's Largest Pure Silver Mines

    San Bartolomé: One of the World’s Largest Pure Silver Mines Location: Potosi, Bolivia Ownership: 100% Mining: Surface mining Land Position: 30,471 acres Product: Silver doré P&P Reserves: 27.9M oz Ag 2015 Production 2015 Adj. CAS1 M&I Resources: 16.9M oz Ag 5.4 M oz Ag $13.63 / Ag oz Inferred Resour

  25. Slide 25: San Bartolomé: Addition of Higher-Grade, Lower-Cost Ore from Local Sources

    San Bartolomé: Addition of Higher‐Grade, Lower‐Cost Ore from Local Sources Highlights $14.47 $14.41 $13.26  Straightforward operation due to free‐digging $12.48 $12.56 surface mining techniques (no drilling or blasting) 1.6 1.5 1.4  Sourcing higher‐grade, lower‐cost ore from local 1.2 1.2 sources

  26. Slide 26: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands 1Q 2016 4Q 2015 3Q 2015 2Q 2015 1Q 2015 Net income (loss) ($20,396) ($303,000) ($14,219) ($16,677) ($33,287) Interest expense, net of capitalized interest 11,120 11,758 12,446 10,734 10,765 Other, net (1,314) (14,240) 8,89

  27. Slide 27: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) LTM Adjusted EBITDA in thousands LTM 3/31/16 LTM 12/31/15 LTM 9/30/15 LTM 6/30/15 LTM 3/31/15 Net income (loss) ($354,292) ($367,183) ($1,143,221) ($1,125,536) ($1,151,980) Interest expense, net of capitalized interest 46,058 45,703 44,511 43,680 45,2

  28. Slide 28: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended March 31, 2016 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended March 31, 2016 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs app

  29. Slide 29: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Year ended December 31, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Year ended December 31, 2015 Palmarejo Rochester Endeavor Total Silver Kensington Wharf Total Gold Bartolomé Costs applicable to

  30. Slide 30: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended December 31, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended December 31, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Cos

  31. Slide 31: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended September 30, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended September 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver C

  32. Slide 32: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended June 30, 2015 Silver Gold (dollars in thousands except per ounce costs) San Total Total Three months ended June 30, 2015 Palmarejo Rochester Endeavor Kensington Wharf Total Gold Bartolomé Silver Costs appli

  33. Slide 33: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended March 31, 2015 Silver Gold (dollars in thousands except per ounce costs) Total Three months ended March 31, 2015 San Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, includ

  34. Slide 34: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Year ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total Year ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amorti

  35. Slide 35: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Year ended December 31, 2013 Silver Gold (dollars in thousands except per ounce costs) San Total Full‐year ended December 31, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including a

  36. Slide 36: Non-GAAP to U.S. GAAP Reconciliation

    Non‐GAAP to U.S. GAAP Reconciliation (unaudited) All‐In Sustaining Costs in thousands except per ounce costs 1Q 2016 FY 2015 FY 2014 FY 2013 Costs applicable to sales, including amortization (U.S. GAAP) $128,469 $617,938 $635,516 $691,696 Amortization 26,914 138,284 157,571 228,033 Costs applicable

  37. Slide 37: Coeur's Mineral Reserves

    Coeur’s Mineral Reserves Grade (oz/ton) Ounces (contained) Year‐end 2015 Location Short tons Silver Gold Silver Gold Proven Reserves Palmarejo Mexico 802,000 6.29 0.077 5,048,000 62,000 Rochester Nevada, USA 96,520,000 0.53 0.003 51,007,000 316,000 Kensington Alaska, USA 338,000 ‐ 0.20 ‐ 67,000 Whar

  38. Slide 38: Coeur's Measured and Indicated Mineral Resources

    Coeur’s Measured and Indicated Mineral Resources (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year‐end 2015 Location Short tons Silver Gold Silver Gold Measured Resources Palmarejo Mexico 134,000 4.84 0.051 651,000 7,000 Rochester Nevada, USA 60,528,000 0.49 0.004 29,709,000 233,000 Kensin

  39. Slide 39: Coeur's Inferred Mineral Resources

    Coeur’s Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Year‐end 2015 Location Short tons Silver Gold Silver Gold Inferred Resources Palmarejo Mexico 1,721,000 4.79 0.085 8,240,000 147,000 Rochester Nevada, USA 59,597,000 0.52 0.003 31,195,000 179,000 Kensington Alaska, USA 2,059,000 ‐

  40. 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

  41. 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 boa

  42. Slide 42: Contact Information

    Contact Information Corporate Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489‐5800 Stock Ticker: CDE: NYSE Warrant Ticker: CDM.WT: TSX Website: coeur.com Contact: Courtney Lynn Vice President, Investor Relations & Treasurer [email protected] Rebecc

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