Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — FY2015 Earnings Presentation
38 slides from Coeur Mining's earnings presentation, Feb 11, 2016
Slide 1: Fourth Quarter and Year-End 2015 Financial Results
Fourth Quarter and Year‐End 2015 Financial Results Conference Call and Webcast February 11, 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 regarding, anticipated production, costs, mine plans, grades, returns, development and exploration efforts, expectations rega
Slide 3: 2015 Highlights and Achievements
2015 Highlights and Achievements z 2015 production of 35.6 million AgEq ounces, at the high‐end of guidance and a 11% increase over 2014 z Adj. AISC of $14.32 per realized AgEq oz1, a 22% decrease from 2014 z Adj. CAS of $11.87 per realized AgEq oz1, a 13% decrease from 2014 z Adjusted EBITDA1 of $1
Slide 4: Financial Highlights
Financial Highlights 2015 OCF of $113.5M More than Double 2014 Quarter YOY Full Year in millions US$ 4Q 2015 3Q 2015 4Q 2014 FY 2015 FY 2014 Variance Variance Variance Revenue $164.2 $162.6 1% $140.6 17% $646.1 $635.7 2% Costs applicable to sales 125.3 120.2 4% 126.5 (1%) 479.7 477.9 0% Exploration
Slide 5: Financial Highlights (continued)
Financial Highlights (continued) 2015 Adjusted AISC per Realized AgEq oz1 Declined 22% Versus 2014 Quarter YOY Full Year Full Year Full Year 4Q 2015 3Q 2015 4Q 2014 Variance Variance 2015 2014 Variance Average realized silver price per ounce1 $14.27 $14.66 (3%) $16.40 (13%) $15.46 $18.87 (18%) Avera
Slide 6: Leader in Cost Reductions
Leader in Cost Reductions All‐in Sustaining Costs per Realized AgEq oz1 Decline 30% Since 2013 Companywide Adj. CAS / AgEq oz1 Companywide Adj. CAS / AuEq oz1 $13.96 $14.13 $940 $907 $ per AuEq oz $ per AgEq oz $13.68 $13.68 $12.75 $764 $11.87 FY'13 FY'14 FY'15 FY'13 FY'14 FY'15 Companywide Adj. AIS
Slide 7: Well-Capitalized with Financial Flexibility
Well‐Capitalized with Financial Flexibility Cash & Equivalents Remain Constant Since June ‘15 Net debt / LTM Adj. EBITDA1 Liquidity $200.7 Net Debt: $289.7 4.2x 4.0x 3.8x Debt $480.0 $10.4 2.5x $0 $100 $200 $300 $400 $500 $600 in millions 3/31/15 6/30/15 9/30/15 12/31/2015 Cash & equivalents Long‐te
Slide 8: Capital Expenditures – 50/50 Split Between Sustaining & Expansion
Capital Expenditures – 50/50 Split Between Sustaining & Expansion 2015 Capex: $95M 2016E1 Capex: $90 ‐ 100M Wharf Wharf San 3% San 8% Bartolomé 7% Bartolomé 6% Palmarejo 37% Palmarejo Kensington 42% 26% Kensington 31% Rochester Rochester 27% 13% 70% of 2016E Capital Expenditures Expected in 1H 1. Gu
Slide 9: Year-End 2015 Reserves Highlights
Year‐End 2015 Reserves Highlights ▪ Evaluated mineral reserves using short and long‐term reserve price assumptions ▪ 2016 – 2017: $15.50 per silver oz and $1,150 per gold oz ▪ 2018 and beyond: $17.50 per silver oz and $1,250 per gold oz ▪ Key changes since year‐end 2014: ▪ Palmarejo silver and gold
Slide 10: Year-End 2015 Reserves Update
Year‐End 2015 Reserves Update Proven & Probable Gold Reserves 33% Increase from 2014 0.7 0.2 0.2 2.4 ounces in millions 1.8 YE 2014 reserves Wharf Palmarejo La Preciosa YE 2015 Reserves Proven & Probable Silver Reserves Decline Primarily Driven by Reclassification of La Preciosa Reserves due to Lowe
Slide 11: Quality vs. Quantity: Adding Higher-Grade Silver and Gold Reserves at Palmarejo
Quality vs. Quantity: Adding Higher‐Grade Silver and Gold Reserves at Palmarejo Complex Reserves Continue to Grow at Significantly Higher Grades Despite Lower Reserve Prices Palmarejo Complex Proven & Probable Reserves Palmarejo Complex Proven & Probable Reserves Contained Ounces Silver Contained Ou
Slide 12: Palmarejo: Transition to High-Grade, High-Margin Underground Operation
Palmarejo: Transition to High‐Grade, High‐Margin, Lower‐ Tonnage Underground Operation Well Underway $15.70 $14.56 $13.48 $13.21 $14.49 $13.52 $11.40 $12.04 $22.9 $12.07 $20.3 $ in millions $10.01 1.4 1.4 1.4 1.2 22,974 1.1 $10.5 $10.9 $9.7 $10.7 $9.2 18,127 ounces 15,237 15,495 $5.6 14,326 4Q'14 1Q
Slide 13: Rochester: Larger Scale Mining Driving Lower Unit Costs
Rochester: Larger Scale Mining Driving Lower Unit Costs $12.75 $11.91 $12.01 $12.01 $12.37 $13.82 $12.95 $16.4 $10.94 $10.89 $11.19 1.3 1.2 $ in millions 1.1 1.1 1.1 $10.8 $10.2 ounces 15,764 16,411 13,721 $8.8 10,892 11,564 $6.5 $5.9 $5.3 $2.7 $3.3 $0.4 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 4Q'14 1Q'15 2Q'
Slide 14: Kensington: Higher Grade and Recoveries Drive Strong Production
Kensington: Higher Grade and Recoveries Drive Strong Production at Lower Costs $745 $842 $792 $797 $777 $12.3 $12.0 33,909 33,714 $9.5 33,533 $8.9 29,845 28,799 $ in millions $5.5 ounces $4.7 $4.5 $3.9 $4.1 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 ($3.7) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Adj. CAS per gold oz 1 Gol
Slide 15: Wharf: Improved Plant Recoveries Drive Strong Production
Wharf: Improved Plant Recoveries Drive Strong Production at Dramatically Lower Costs $970 $716 $556 $16.9 $ in millions 32,231 $12.9 ounces 23,427 $8.2 16,794 $1.2 $0.7 $1.2 $0.1 6,609 1 1Q'15 2Q'15 3Q'15 4Q'15 ($7.2) 1 1Q'15 2Q'15 3Q'15 4Q'15 Adj. CAS per AuEq oz 2 Gold Equivalent Production Cash f
Slide 16: San Bartolomé: Local Ore Purchases Improving Cash Flows and Costs
San Bartolomé: Local Ore Purchases Contributing to Improved Cash Flows and Lower Costs $14.38 $14.47 $14.41 $13.26 $12.48 $10.0 1.6 $ in millions 1.5 1.5 1.2 1.2 ounces $5.0 $5.4 $5.7 $2.3 $2.0 $2.5 $1.8 $0.9 $1.0 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1 Adj CAS per Ag oz Silver
Slide 17: Exploration: Focus on High Grade and High ROI
Exploration: Focus on High Grade and High ROI 2015 Success 2016 Focus ▪ Exploration totaled $17.6M ($11.6M expensed) and ▪ Exploration expense guidance: $11 – 13M1, plus $6.0M (capitalized) estimated for $11 ‐ $13M for capitalized drilling ▪ Palmarejo ($4.7M expensed; $2.1M capitalized) ▪ Palmarejo
Slide 18: 2016 Guidance: Expect to Produce 37M AgEq oz
2016 Guidance: Expect to Produce 34 – 37M AgEq oz Silver Production Guidance1 Gold Production Guidance1 126,266 120,000 Ounces in thousands 5,850 5,436 5,149 4,631 4,920 92,500 4,050 Ounces 78,132 70,922 69,500 52,588 51,500 629 375 San Bartolomé Rochester Palmarejo Endeavor Kensington Wharf Palmare
Slide 19: Anticipated Milestones and Upcoming News Flow
Anticipated Milestones and Upcoming News Flow 1Q 2016 1Q 2016 2Q 2016 3Q 2016 3Q 2016 Open‐pit mining Begin drilling high‐ Accelerate Complete Existing FNV gold royalty at Palmarejo to grade inferred production rate at underground mining agreement ends; new cease resources at Independencia at legacy
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Net Income (Loss) in thousands FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 FY 2014 4Q 2014 Net income (loss) ($367,183) ($303,000) ($14,219) ($16,677) ($33,287) ($1,155,884) ($1,079,038) Fair value adjustments, net (4,109) (2,446) (3,384) (2,618)
Slide 22: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 4Q 2014 FY 2014 Net income (loss) ($367,183) ($303,000) ($14,219) ($16,677) ($33,287) ($1,079,038) ($1,155,884) Interest expense, net of capitalized interest 45,703 11,758 12,446 10,
Slide 23: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) LTM Adjusted EBITDA LTM in thousands LTM 9/30/15 LTM 6/30/15 LTM 3/31/15 LTM 12/31/14 12/31/2015 Net income (loss) ($367,183) ($1,143,221) ($1,125,536) ($1,151,980) ($1,155,884) Interest expense, net of capitalized interest 45,703 44,511 43,680 45,257
Slide 24: 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
Slide 25: 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
Slide 26: 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
Slide 27: 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
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, 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
Slide 29: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total three months ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales,
Slide 30: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Three months ended September 30, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total three months ended September 30, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales
Slide 31: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Full‐year ended December 31, 2014 Silver Gold (dollars in thousands except per ounce costs) San Total Full‐year ended December 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, includ
Slide 32: 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 FY 2015 4Q 2015 3Q 2015 2Q 2015 1Q 2015 FY 2014 4Q 2014 Costs applicable to sales, including amortization (U.S. GAAP) $617,938 $160,304 $155,929 $164,125 $146,742 $635,516 $163,679 Amortizati
Slide 33: 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
Slide 34: 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
Slide 35: 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 ‐
Slide 36: 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 37: 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 38: 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: Rebecca Hussey Senior Analyst, Investor Relations [email protected] NYSE: CDE 38