Coeur Mining, Inc. · NYSE:CDE
Coeur Mining — Q1 2015 Earnings Presentation
36 slides from Coeur Mining's earnings presentation, May 5, 2015
Slide 1: First Quarter 2015 Financial Results
First Quarter 2015 Financial Results Conference Call and Webcast May 5, 2015
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, capital and exploration expenditures, exploration and development efforts, Guadalupe
Slide 3: First Quarter 2015 Highlights
First Quarter 2015 Highlights Quarter YOY in millions US$ 1Q 2015 4Q 2014 1Q 2014 Variance Variance Revenue $153.0 $140.6 9% $159.6 (4%) Costs applicable to sales 115.1 126.5 (8%) 106.9 8% Exploration expense 4.3 5.7 (25%) 4.2 2% General & administrative 8.8 9.0 (2%) 13.9 (37%) Adjusted EBITDA1 21.7
Slide 4: First Quarter 2015 Highlights (continued)
First Quarter 2015 Highlights (continued) Quarter YOY 1Q 2015 4Q 2014 1Q 2014 Variance Variance Average realized silver price per ounce $16.77 $16.40 2% $20.28 (17%) Average realized gold price per ounce $1,204 $1,186 2% $1,279 (6%) Silver ounces produced (millions) 3.8 4.3 (12%) 4.1 (7%) Gold ounce
Slide 5: Costs Tracking at or Below 2014 Results and 2015 Guidance
Costs Tracking at or Below 2014 Results and 2015 Guidance Adjusted Costs Applicable to Sales per AgEq oz1 Adjusted All‐in Sustaining Costs per AgEq oz1 $19.23 $17.66 $14.08 $13.71 $ per ounce $ per ounce 2014 1Q 2015 2014 1Q 2015 General & Administrative Expense Exploration Expense $21.7 $41.0 $37.5
Slide 6: Reserves Nearly Doubled at Palmarejo; Increased Companywide
Reserves Nearly Doubled at Palmarejo; Increased Companywide Reserves 12% Compared to 15 months ago, Palmarejo’s silver reserves have increased 30% and gold reserves have increased 54% 437.4 AgEq reserve oz in millions 389.4 106.6 AgEq oz in millions 58.6 Companywide YE 2014 Companywide Pro‐forma Pal
Slide 7: First Quarter 2015 Cash Flow Bridge
First Quarter 2015 Cash Flow Bridge 300 $33.1 $270.9 $14.4 250 $24.4 $17.6 200 $50.0 $6.6 in millions $10.4 1.0 $179.6 150 $102.0 100 50 0 Cash Balance Adjusted net Amortization Working Capital Acquisition of Short‐term Debt Palmarejo Other Cash Balance 1 12/31/14 loss 2 capital expenditures Wharf c
Slide 8: Well-Capitalized with Financial Flexibility
Well‐Capitalized with Financial Flexibility Debt maturity schedule Amount Maturity Liquidity $179.6 (millions) Net Debt = $333.9 Senior unsecured notes $425.9 2021 Convertible notes $0.7 2028 Debt $447.8 $65.7 San Bartolomé letter of credit $9.8 2017 Short‐term credit agreement $49.8 2016 $0 $100 $2
Slide 9: Anticipated Milestones and Upcoming News Flow
Anticipated Milestones and Upcoming News Flow 2Q 2015 3Q 2015 3Q 2015 4Q 2015 / 1Q 2016 1Q 2016 New reserves, LOM Complete open‐ Begin Jualin Underground Complete plan, and Technical pit mining at decline development underground Report for Wharf Palmarejo reaches mining at Independencia Palmarejo 2Q
Slide 10: Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation
Palmarejo: Transitioning to Lower Tonnage, Higher‐Grade, Higher‐Margin Operation 1Q 2015 Highlights Adjusted CAS per Ag Eq oz1 of $14.56 decreased 7% from 4Q 2014 Palmarejo continues to transition to underground mining at the Guadalupe mine and the Independencia mine (beginning early 2016) while
Slide 11: Palmarejo: Transitioning to Lower Tonnage, Higher-Grade, Higher-Margin Operation
Palmarejo: Transitioning to Lower Tonnage, Higher‐Grade, Higher‐Margin Operation $15.70 $14.43 $14.56 $13.13 $13.48 $12.43 $10.28 $9.74 2.0 1.9 2.0 1.8 1.8 35,486 1.5 28,191 29,893 1.4 1.4 ounces 25,216 23,706 22,514 15,237 15,495 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Gold production Silve
Slide 12: Rochester: Strong Production and Lower Costs Drive Highest Free Cash Flow
Rochester: Strong Production and Lower Costs Drive Highest Free Cash Flow in Over Two Years 1Q 2015 Highlights Adjusted CAS per Ag Eq oz1 were $12.95, down 6% from 4Q 2014 due to lower crushing and leaching costs The average silver grade increased 23% compared to 4Q 2015 and silver equivalent ou
Slide 13: Rochester: Strong Production and Lower Costs Drive Highest Free Cash Flow
Rochester: Strong Production and Lower Costs Drive Highest Free Cash Flow in Over Two Years $16.63 $15.73 $13.82 $12.63 $15.83 $14.78 $14.95 $12.95 1,156 1,170 15,764 1,112 1,144 13,721 844 11,702 9,404 750 9,230 712 8,192 ounces 595 7,890 4,824 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Gold p
Slide 14: Kensington: Robust Head-Grade Enables Sustained Strong Cost Performance
Kensington: Robust Head‐Grade Enables Sustained Strong Cost Performance 1Q 2015 Highlights A 14% increase in average gold grade with adjusted CAS per gold ounce1 below $800 for the second consecutive quarter Free cash flow2 of $8.2 million increased from $(7.6) million in 4Q 2014 due to a 65% in
Slide 15: Kensington: Robust Head-Grade Enables Sustained Strong Cost Performance
Kensington: Robust Head‐Grade Enables Sustained Strong Cost Performance $980 $638 $889 $879 $792 $797 $821 $764 36,469 33,909 33,533 30,773 28,323 28,089 25,428 22,583 ounces 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Gold production Adjusted costs applicable to sales per gold oz1 $17.0 $13.9 $
Slide 16: San Bartolomé: Continued Stable Cost Performance
San Bartolomé: Continued Stable Cost Performance 1Q 2015 Highlights Maintenance downtime and heavy rain resulted in processing a greater proportion of stockpiled ore in the first quarter, which negatively impacted the grade and recovery rates at San Bartolomé Despite this, adjusted costs applica
Slide 17: San Bartolomé: Continued Stable Cost Performance
San Bartolomé: Continued Stable Cost Performance $15.08 $13.85 $14.38 $14.47 $13.91 $13.93 $13.67 $13.25 1.5 1.5 1.5 1.4 1.5 1.5 1.5 1.2 ounces 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Silver production (millions) Adjusted costs applicable to sales per silver equivalent oz1 $32.8 $ in million
Slide 18: 2015 Guidance
2015 Guidance Silver Production Gold Production 6,558 114,821 5,852 5,950 112,500 Ounces in thousands 4,850 4,100 4,189 86,673 76,000 Ounces 60,000 60,000 30,860 590 500 Palmarejo San Bartolomé Rochester Endeavor Kensington Palmarejo Rochester Wharf 1 2014 Actual 2015 Guidance Midpoint 2014 Actual 2
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted Net Income (Loss) in thousands 1Q 2015 4Q 2014 3Q 2014 2Q 2014 1Q 2014 Net income (loss) ($33,287) ($1,079,038) $3,466 ($43,121) ($37,191) Fair value adjustments, net 4,339 (5,622) (13,026) 6,498 7,827 Stock‐based compensation 2,410 1,807 2,4
Slide 21: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Adjusted EBITDA in thousands 1Q 2015 4Q 2014 3Q 2014 2Q 2014 1Q 2014 Net income (loss) ($33,287) ($1,079,038) $3,466 ($43,121) ($37,191) Interest expense, net of capitalized interest 10,765 10,566 11,615 12,311 13,054 Interest income and other, net 99
Slide 22: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) LTM Adjusted EBITDA in thousands LTM 3/31/15 LTM 12/31/14 LTM 9/30/14 LTM 6/30/14 LTM 3/31/14 Net income (loss) ($1,151,980) ($1,155,884) ($658,374) ($708,105) ($700,024) Interest expense, net of capitalized interest 45,257 47,546 47,959 46,006 44,625
Slide 23: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (dollars in thousands except per ounce costs) San Total Three months ended March 31, 2015 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $41,8
Slide 24: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales 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, including amortization (U.S. GAAP) $
Slide 25: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (dollars in thousands except per ounce costs) San Total three months ended March, 31, 2014 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $62,
Slide 26: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales Silver Gold (dollars thousands except per ounce costs) San Total Three months ended September 30, 2013 Palmarejo Rochester Endeavor Total Kensington Bartolomé Costs applicable to sales, including amortization (U.S. GAAP) $100
Slide 27: Non-GAAP to U.S. GAAP Reconciliation
Non‐GAAP to U.S. GAAP Reconciliation (unaudited) Costs Applicable to Sales 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, including amortization (U.S. GAAP) $256,
Slide 28: 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 2015 4Q 2014 3Q 2014 2Q 2014 1Q 2014 FY 2014 Costs applicable to sales, including amortization (U.S. GAAP) $146,742 $163,679 $166,675 $159,036 $146,125 $635,516 Amortization 31,680 37,227
Slide 29: External Growth - Strategic Investments
External Growth ‐ Strategic Investments Apogee Silver (Cachinal project, Chile; 6.4% ownership interest): Completed sale of Bolivia assets to Prophecy Coal Corp. for $3.9M, including $250,000 cash and 60 million Prophecy common shares Caracara Silver (Princesa project, Peru; 3.2% ownership int
Slide 30: Coeur's Mineral Reserves
Coeur’s Mineral Reserves Grade (oz/ton) Ounces (contained) Year‐end 2014 Location Short tons Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 89,077,000 0.56 0.004 49,786,000 346,000 San Bartolomé Bolivia 1,206,000 2.73 ‐ 3,287,000 ‐ Kensington Alaska, USA 417,000 ‐ 0.187 ‐ 78,000 Endea
Slide 31: Coeur's Measured and Indicated Mineral Resources
Coeur’s Measured and Indicated Mineral Resources (Excluding Reserves) Grade (oz/ton) Ounces (contained) Year‐end 2014 Location Short tons Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 72,228,000 0.45 0.003 32,565,000 218,000 Martha Argentina ‐ ‐ ‐ ‐ ‐ San Bartolomé Bolivia ‐ ‐ ‐ ‐
Slide 32: Coeur's Inferred Mineral Resources
Coeur’s Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Year‐end 2014 Location Short tons Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 96,039,000 0.42 0.003 40,789,000 263,000 Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé Bolivia 66,000 1.68 ‐ 111,0
Slide 33: Wharf's Historical Mineral Reserves and Resources
Wharf’s Historical Mineral Reserves and Resources Tons Grade (oz/t) Ounces (000s) (000s) Gold Silver Gold Silver Proven and Probable Reserves Proven Reserves 15,179 0.022 0.078 340 1,190 Probable Reserves 8,245 0.026 0.108 220 890 Total Proven and Probable Reserves 23,424 0.024 0.089 560 2,080 Measu
Slide 34: 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 35: 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 36: Contact Information
Contact Information Corporate Office: Coeur Mining, Inc. 104 S. Michigan Ave, Suite 900 Chicago, Illinois 60603 Main Tel: (312) 489‐5800 Stock Tickers: CDE: NYSE Warrant Tickers: CDE.WS: NYSE; CDM.WT: TSX Website: coeur.com Contact: Bridget Freas Donna Mirandola Director, Investor Relations Director