Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q4 2013 Earnings Presentation
50 slides from Coeur Mining's earnings presentation, Feb 20, 2014
Slide 1: Fourth Quarter and Year-End 2013 Financial Results
Fourth Quarter and Year-End 2013 Financial Results Conference Call and Webcast February 20, 2014
Slide 2: Cautionary Statements
Cautionary Statements This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated production, costs, expenses, capital and exploration expenditures, exploration and development efforts,
Slide 3: 2013 Full-Year Highlights
2013 Full-Year Highlights First Quarter Second Quarter Third Quarter Fourth Quarter Completed $300 million ▪ Acquired Orko Silver Corp, ▪ Implemented downside ▪ Completed revenue senior unsecured notes adding the La Preciosa metal price protection enhancement projects at financing project to Compa
Slide 4: Fourth Quarter 2013 Highlights
Fourth Quarter 2013 Highlights Silver production up 3% and gold production up 27% from 3Q 2013 Kensington gold production increased 29%; cash operating costs1 per gold ounce of $747 declined 24% from 3Q 2013 Companywide cash operating costs per silver ounce1 of $10.39, down 9% versus 3Q 2013
Slide 5: Results from 2013 Strategy to Maximize Cash Flow
Results from 2013 Strategy to Maximize Cash Flow • Completed expansion projects at San Bartolomé and Rochester to increase production Revenue • Successfully re-sequenced higher-grade stopes at Kensington to boost grades, leading to Enhancement higher production levels and lower unit costs • Expect t
Slide 6: Financial and Operational Highlights
Financial and Operational Highlights
Slide 7: Fourth Quarter and Full-Year Highlights
Fourth Quarter and Full-Year Highlights Quarter Full-Year Full-Year YOY in millions US$ 4Q 2013 3Q 2013 Variance 2013 2012 Variance Sales of metal $168.8 $200.8 (16%) $746.0 $895.5 17% Production costs 100.2 131.7 (23%) 464.7 456.8 2% Exploration expense 5.4 3.3 64% 22.4 26.3 (15%) General & adminis
Slide 8: Fourth Quarter and Full Year Highlights (continued)
Fourth Quarter and Full Year Highlights (continued) Quarter Full-Year Full-Year YOY 4Q 2013 3Q 2013 Variance 2013 2012 Variance Average realized silver price per ounce $20.54 $21.06 (2%) $23.14 $30.92 (25%) Average realized gold price per ounce $1,249 $1,329 (6%) $1,387 $1,665 (17%) Silver ounces pr
Slide 9: Financial Position
Financial Position Well-capitalized balance sheet with financial flexibility and low leverage Summary balance sheet (in millions) Dec 31, 2013 Cash & cash equivalents $206.7 Revolving credit facility (undrawn) $100.0 Total debt $308.6 Net debt $101.9 Common shares outstanding 102.8 NYSE: CDE | TSX:
Slide 10: Cash Flow Protection Strategy
Cash Flow Protection Strategy Coeur has implemented a targeted cash flow protection program with the following objectives: Maintain simplicity Protect downside metal price exposure but maintain upside exposure Purchase put options to protect some of expected production against a sharp drop i
Slide 11: 4Q 2013 Operational Highlights and 2014 Outlook
4Q 2013 Operational Highlights and 2014 Outlook Palmarejo, Mexico San Bartolomé, Bolivia Rochester, Nevada Kensington, Alaska •Silver production increased 4% •4Q production and cash •Silver production 20% higher •4Q production increased 29% from 3Q operating costs1 in-line with 3Q than 3Q and gold p
Slide 12: Palmarejo: Improving Operational Consistency and Cash Flow
Palmarejo: Improving Operational Consistency and Cash Flow $15.55 $13.39 $14.97 $12.88 $12.89 $13.73 $11.36 $10.36 $11.51 $9.89 $10.90 $7.55 $13.66 $4.80 $3.75 $2.20 $3.25 $2.79 $0.65 $(1.16) $(0.85) $(2.13) $(2.27) $(3.68) 2.7 2.4 2.5 2.4 2.3 2.0 1.9 2.0 1.7 1.8 1.6 1.6 35,486 ounces 33,389 34,108
Slide 13: San Bartolomé: Expect Continued Stable Production in 2014
San Bartolomé: Expect Continued Stable Production in 2014 $15.26 $14.14 $13.97 $13.91 $13.06 $13.25 $12.43 $11.34 $10.66 $10.65 $13.41 $13.27 $12.89 $13.11 $9.52 $10.08 $12.80 $12.13 $11.05 $9.32 $9.18 $10.21 $9.13 $8.73 2.1 2.0 1.7 1.7 1.6 ounces 1.5 1.5 1.4 1.5 1.5 1.5 1.3 1Q'11 2Q'11 3Q'11 4Q'11
Slide 14: Kensington: Significant Production Growth and Lower Costs in 2013
Kensington: Significant Production Growth and Lower Costs in 2013 $2,709 $1,807 $1,348 $1,298 $1,065 $989 $924 $973 $2,587 $1,055 $1,115 $988 $747 $1,469 $1,129 $1,234 $1,126 $1,002 $890 $667 $874 $676 $856 $871 37,404 28,717 29,049 25,758 25,687 24,391 25,206 23,676 23,162 21,572 ounces 13,299 7,44
Slide 15: Rochester: Major Capital Projects Completed; Higher Production Expected
Rochester: Major Capital Projects Completed; Higher Production Expected in 2014 $36.71 $37.99 $23.35 $23.50 $35.83 $17.08 $16.87 $15.30 $31.71 $15.62 $12.34 $16.41 $15.68 $15.76 $13.54 $14.75 $15.76 $15.44 $11.83 $9.83 $9.58 $10.28 $4.34 $2.17 819 828 844 12,055 712 713 10,120 10,599 648 595 8,742 9
Slide 16: Exploration Overview
Exploration Overview COEUR MINING” NYSE: CDE | TSX: CDM
Slide 17: Substantial Increase in Mineral Reserves and Resources
Substantial Increase in Mineral Reserves and Resources Total Coeur Proven & Probable Reserves Total Coeur Silver Reserves & Resources 249 millions of tons millions of ounces 145 2009 2010 2011 2012 2013 Proven & Probable Reserves Measured & Indicated Resources Inferred Resources 2012 Year End 2013 Y
Slide 18: 2013 Exploration Expenditures of $34 Million
2013 Exploration Expenditures of $34 Million Operation Kensington Mine, Alaska: $7.1M Feasibility stage project Drilled: 149,651 feet (45,614 meters) Highlights: Main, Jualin Vein #4 Rochester Mine, Nevada: $4.1M Drilled: 175,315 feet (53,436 meters) Highlights: Limerick, Sunflower Ridge San Bartolo
Slide 19: Looking Ahead
Looking Ahead CORUR NYSE: CDE | TSX: CDM
Slide 20: 2014 Guidance
2014 Guidance Silver Production Gold Production 7,603 6,950 Ounces in thousands 5,941 5,850 114,821 108,500 116,536 91,000 4,250 Ounces 2,799 30,860 29,500 669 550 Palmarejo San Bartolome Rochester Endeavor Kensington Palmarejo Rochester 2013 Actual 2014 Guidance Midpoint 2013 Actual 2014 Guidance M
Slide 21: Capital Spending Significantly Reduced
Capital Spending Significantly Reduced $400 $350 $300 $250 $ in millions $200 $150 $100 $50 $0 2008 2009 2010 2011 2012 2013 2014E 2014E represents the midpoint of capital expenditure guidance published by Coeur on February 19, 2014. NYSE: CDE | TSX: CDM 21
Slide 22: Strategic Focus - Maximize Net Cash Flow
Strategic Focus - Maximize Net Cash Flow 2014 Goals: • Achieve and sustain further operational consistency • Reduce costs and improve process efficiency • Maximize returns on every dollar spent on capital projects, exploration, and other growth initiatives • Reinvest in existing assets to grow reser
Slide 23: Appendix
, COEUR Appendix MINING” NYSE: CDE | TSX: CDM
Slide 24: Non-GAAP to U.S. GAAP Reconciliation: Adjusted Earnings
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Earnings - Quarterly in thousands of US$ 4Q 2013 3Q 2013 2Q 2013 1Q 2013 4Q 2012 Net income ($581,528) ($46,265) ($35,040) $12,270 $37,550 Share based compensation 1,672 373 1,617 1,096 1,476 Deferred income tax provision (194,857) (1,869) 12
Slide 25: Non-GAAP Reconciliation: All-In Sustaining Costs
Non-GAAP to U.S. GAAP Reconciliation (unaudited) All-In Sustaining Costs in thousands except per ounce costs FY 2013 4Q 2013 3Q 2013 2Q 2013 1Q 2013 FY 2012 Costs applicable to sales (U.S. GAAP) $463,663 $100,227 $131,728 $142,924 $88,784 $454,562 Treatment and refining costs 10,462 2,815 2,590 1,95
Slide 26: Non-GAAP Reconciliation: Cash Operating Costs, FY 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Year ended December 31, 2013 Bartolomé Total cash operating cost (Non-U.S. GAAP) $16,919 $77,308 $109,055 $65,132 $-- $8,077
Slide 27: Non-GAAP Reconciliation: Cash Operating Costs, Q4 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended December 31, 2013 Bartolomé Total cash operating cost (Non-U.S. GAAP) $1,300 $19,647 $27,947 $22,584 $--
Slide 28: Non-GAAP Reconciliation: Cash Operating Costs, Q3 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended September 30, 2013 Bartolomé Total cash operating cost (Non-U.S. GAAP) $5,354 $19,559 $28,707 $21,329 $--
Slide 29: Non-GAAP Reconciliation: Cash Operating Costs, Q2 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended June 30, 2013 Bartolomé Total cash operating cost (Non-U.S. GAAP) $6,639 $19,636 $25,819 $12,450 ($16) $2
Slide 30: Non-GAAP Reconciliation: Cash Operating Costs, Q1 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended March 31, 2013 Bartolomé Total cash operating cost (Non-U.S. GAAP) $3,618 $18,465 $26,582 $8,769 $33 $2,5
Slide 31: Non-GAAP Reconciliation: Cash Operating Costs, FY 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Year Ended December 31, 2012 Bartolomé Total cash operating cost (Non-U.S. GAAP) $10,958 $69,771 $111,499 $26,959 $16,094 $1
Slide 32: Non-GAAP Reconciliation: Cash Operating Costs, Q4 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended December 31, 2012 Bartolomé Total cash operating cost (Non-U.S. GAAP) $11,732 $18,765 $30,588 $1,795 ($16
Slide 33: Non-GAAP Reconciliation: Cash Operating Costs, Q3 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended September 30, 2012 Bartolomé Total cash operating cost (Non-U.S. GAAP) $6,878 $18,504 $31,660 $7,853 $4,4
Slide 34: Non-GAAP Reconciliation: Cash Operating Costs, Q2 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended June 30, 2012 Bartolomé Total cash operating cost (Non-U.S. GAAP) ($2,009) $16,249 $29,083 $7,008 $5,942
Slide 35: Non-GAAP Reconciliation: Cash Operating Costs, Q1 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Cash Operating Costs (In thousands except ounces and per ounce costs) San Palmarejo Kensington Rochester Martha Endeavor Total Three months ended March 31, 2012 Bartolomé Total Cash Operating Cost (Non-U.S. GAAP) ($5,643) $16,253 $20,168 $10,303 $5,70
Slide 36: Non-GAAP Reconciliation: Costs Applicable to Sales, Full Year
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (thousands except per ounce costs) San Total Full-year ended December 31, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $322,814 $106,39
Slide 37: Non-GAAP Reconciliation: Costs Applicable to Sales, Q4/Q3 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended December 31, 2013 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $75,875,187 $25,621,471 $18,657,839 $
Slide 38: Non-GAAP Reconciliation: Costs Applicable to Sales, Q2/Q1 2013
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended June 30, 2013 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $90,776,146 $37,756,460 $25,378,504 $2,90
Slide 39: Non-GAAP Reconciliation: Costs Applicable to Sales, Q4/Q3 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended December 31, 2012 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $72,477,667 $19,367,784 $25,228,080 $
Slide 40: Non-GAAP Reconciliation: Costs Applicable to Sales, Q2/Q1 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales (thousands except per ounce costs) San Three months ended June 30, 2012 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $105,286,508 $26,842,432 $22,811,578 $4,1
Slide 41: Non-GAAP Reconciliation: Costs Applicable to Sales, Q4/Q3 2011
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales thousands except per ounce costs) San Three months ended December 31, 2011 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $89,604,078 $27,368,489 $5,355,775 $1,
Slide 42: Non-GAAP Reconciliation: Costs Applicable to Sales, Q2/Q1 2011
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales thousands except per ounce costs) San Three months ended June 30, 2011 Palmarejo Rochester Endeavor Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $79,552,920 $19,308,200 $4,692,837 $4,137,
Slide 43: Co-Product Cash Cost Per Ounce, Full-Year 2013 and 2012
Non-GAAP to U.S. GAAP Reconciliation (unaudited) Co-Product Cash Cost Per Ounce for Full-Year 2013 Co-Product Cash Cost Per Ounce for Full-Year 2012 Palmarejo Rochester Palmarejo Rochester Total cash operating costs (in thousands) $178,965 $109,263 Total cash operating costs (in thousands) $187,195
Slide 44: External Growth - Strategic Investments
External Growth - Strategic Investments Apogee Silver (Pulacayo-Paca project, Bolivia and Cachinal project, Chile; 7.6% ownership interest): Environmental Impact Assessment approved by Bolivia’s Ministry of Environment and Water Caracara Silver (Princesa project, Peru; 3.2% ownership interest)
Slide 45: Coeur's Mineral Reserves 2013
Coeur’s Mineral Reserves 2013 Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 132,188,000 0.53 0.004 69,915,000 551,000 Martha Argentina - - - - - San Bartolomé Bolivia 1,206,000 2.87 - 3,456,000 - Kensington Alaska, U
Slide 46: Coeur's Measured and Indicated Mineral Resources 2013
Coeur’s Measured and Indicated Mineral Resources 2013 (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 66,190,000 0.45 0.003 29,860,000 186,000 Martha Argentina — — — — — San Bartolomé Bolivia —
Slide 47: Coeur's Inferred Mineral Resources 2013
Coeur’s Inferred Mineral Resources 2013 Grade (oz/ton) Ounces (contained) Year-end 2013 Location Short tons Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 37,365,000 0.62 0.003 23,295,000 101,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 3,683,000 1.26
Slide 48: Executive Leadership
Executive Leadership Mitchell J. Krebs – President and Chief Executive Officer. Mr. Krebs joined Coeur in 1995 after spending several years in the investment banking industry in New York. Mr. Krebs has held various positions in the corporate development department, including Senior Vice President of
Slide 49: 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
Slide 50: Contact Information
Contact Information Head Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489-5800 Stock Tickers: CDE: NYSE; CDM: TSX Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: www.coeur.com Bridget Freas Donna Mirandola Director, Investor Relations Director