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Coeur Reports First Quarter 2020 Results

April 22, 2020 4:30 PM

CHICAGO--(BUSINESS WIRE)-- Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported first quarter 2020 financial results, including revenue of $173.2 million, cash flow from operating activities of $(8.0) million and GAAP net loss from continuing operations of $11.9 million, or $0.05 per share. On an adjusted basis1, the Company reported EBITDA of $46.6 million, cash flow from operating activities prior to changes in working capital of $30.1 million and net loss from continuing operations of $0.8 million, or $0.00 per share.

Key Highlights

“Our top priority as we navigate the COVID-19 situation continues to be the health, safety and well-being of our workforce, their families, and the communities where we operate,” said Mitchell J. Krebs, President and Chief Executive Officer. “We have put stringent controls and procedures in place throughout the Company focused on (i) controlling and limiting access to our sites, (ii) screening employees and visitors at entrance points, (iii) reducing exposure risk through a range of social distancing protocols as well as proactive sanitizing and cleaning procedures, and (iv) mandating all office personnel work from home. We have also implemented travel restrictions and reporting requirements for all of our employees.”

“At this time, three of our four active mines remain in operation. Our three U.S. assets continue to operate, while our Palmarejo mine in Mexico has taken steps to suspend active mining and processing activities in accordance with the Mexican government’s decree to suspend non-essential business activities. We safely ramped down mining and processing activities at our Silvertip operation in British Columbia in February and are successfully carrying out site-based activities and advancing our drilling program. Finally, we continue to coordinate with federal, state and local officials, our suppliers, health providers, and other mining companies to share best practices, provide assistance and support to local communities, and ensure we are doing everything possible to mitigate the risks and potential impact of this global health crisis.”

Mr. Krebs continued, “Our first quarter consolidated financial results were in-line with our expectations, led again by strong performance from Palmarejo. We made solid progress on several key 2020 priorities, including (i) advancing our efforts to further expand and reposition Rochester as a long-life asset generating strong, consistent cash flow, (ii) increasing our investment in exploration to drive further reserve and resource growth throughout the Company, and (iii) evaluating a potential expansion of Silvertip. Additionally, we have taken proactive steps to maximize our financial flexibility during this period of unprecedented volatility and uncertainty. We look forward to delivering on our key objectives during the remainder of the year in a constructive gold price environment and to navigating the near-term uncertainty related to COVID-19. We remain enthusiastic about the opportunities we are pursuing to deliver high-return growth over the coming years for our stockholders,” concluded Mr. Krebs.

Financial and Operating Highlights (Unaudited)

(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce/pound metrics)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Gold Sales

$

127.6

$

134.3

$

141.9

$

110.3

$

106.8

Silver Sales

$

44.9

$

54.8

$

51.6

$

45.0

$

40.1

Zinc Sales

$

(0.7

)

$

2.6

$

2.0

$

2.6

$

5.6

Lead Sales

$

1.3

$

3.3

$

4.0

$

4.2

$

2.4

Consolidated Revenue

$

173.2

$

195.0

$

199.5

$

162.1

$

154.9

Costs Applicable to Sales2

$

118.9

$

146.6

$

141.0

$

131.9

$

131.7

General and Administrative Expenses

$

8.9

$

7.6

$

9.6

$

7.8

$

9.5

Net Income (Loss)

$

(11.9

)

$

(270.9

)

$

(14.3

)

$

(36.8

)

$

(24.9

)

Net Income (Loss) Per Share

$

(0.05

)

$

(1.13

)

$

(0.06

)

$

(0.18

)

$

(0.12

)

Adjusted Net Income (Loss)1

$

(0.8

)

$

(3.3

)

$

(5.3

)

$

(23.0

)

$

(23.0

)

Adjusted Net Income (Loss)1 Per Share

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.11

)

$

(0.11

)

Weighted Average Shares Outstanding

240.3

238.7

225.9

207.8

202.4

EBITDA1

$

25.5

$

(214.5

)

$

37.6

$

7.7

$

14.8

Adjusted EBITDA1

$

46.6

$

59.8

$

61.0

$

30.6

$

26.1

Cash Flow from Operating Activities

$

(8.0

)

$

39.3

$

42.0

$

26.4

$

(15.8

)

Capital Expenditures

$

22.2

$

21.0

$

30.7

$

20.7

$

27.4

Free Cash Flow1

$

(30.2

)

$

18.4

$

11.3

$

5.7

$

(43.3

)

Cash, Equivalents & Short-Term Investments

$

52.9

$

55.6

$

65.3

$

37.9

$

69.0

Total Debt3

$

343.1

$

295.5

$

298.7

$

370.0

$

456.8

Average Realized Price Per Ounce – Gold

$

1,490

$

1,407

$

1,413

$

1,277

$

1,251

Average Realized Price Per Ounce – Silver

$

16.63

$

16.99

$

17.17

$

14.75

$

15.22

Average Realized Price Per Pound – Zinc

$

(0.21

)

$

0.62

$

0.50

$

0.49

$

1.19

Average Realized Price Per Pound – Lead

$

0.54

$

0.78

$

0.92

$

0.82

$

0.86

Gold Ounces Produced

85,077

94,716

99,782

86,584

78,336

Silver Ounces Produced

2.7

3.1

3.0

3.1

2.5

Zinc Pounds Produced

2.5

3.9

4.2

5.3

3.7

Lead Pounds Produced

2.2

4.0

4.5

5.0

3.1

Gold Ounces Sold

85,635

95,532

100,407

86,385

85,326

Silver Ounces Sold

2.7

3.3

3.0

3.0

2.6

Zinc Pounds Sold

3.2

4.1

4.1

5.3

4.7

Lead Pounds Sold

2.5

4.3

4.3

5.2

2.7

Financial Results

First quarter 2020 revenue totaled $173.2 million compared to $195.0 million in the prior period and $154.9 million in the first quarter of 2019. During the first quarter, the Company produced 85,077 ounces of gold, 2.7 million ounces of silver, 2.5 million pounds of zinc and 2.2 million pounds of lead. Metal sales for the quarter totaled 85,635 ounces of gold, 2.7 million ounces of silver, 3.2 million pounds of zinc and 2.5 million pounds of lead.

Average realized gold and silver prices for the quarter were $1,490 and $16.63 per ounce, respectively, or 6% higher and 2% lower quarter-over-quarter. Average realized zinc and lead prices, net of treatment and refining charges and including the impact of provisional price and quantity adjustments, for the quarter were $(0.21) and $0.54 per pound, respectively, compared to $0.62 and $0.78 per pound in the prior quarter. The significant decrease in base metals prices, combined with the finalization of the annual zinc and lead benchmark treatment charges at $299.75 and $182.50 per tonne, respectively, further validated the Company’s decision to temporarily suspend active mining and processing activities at Silvertip in mid-February.

Gold and silver sales accounted for 74% and 26% of first quarter revenue, respectively, while combined zinc and lead sales were minimal. The Company’s U.S. operations accounted for approximately 56% of first quarter revenue, down modestly from approximately 59% in the prior period.

Costs applicable to sales of $118.9 million were 19% lower quarter-over-quarter, reflecting the suspension of mining and processing activities at Silvertip as well as lower production from Rochester and Wharf. First quarter general and administrative expenses totaled $8.9 million compared to $7.6 million in the prior period, primarily driven by higher employee-related expenses.

First quarter exploration expense was $6.4 million, or 11% lower quarter-over-quarter. The Company focused on infill and expansion drilling at Palmarejo and Sterling as well as expansion drilling at Kensington, Silvertip and the Crown Block. See the “Operations” section and page 16 for additional details on the Company’s exploration activities.

Coeur recorded an income tax benefit of $3.9 million during the first quarter. Cash income and mining taxes paid during the quarter totaled approximately $10.9 million, including the annual payment of the Mexican Mining Royalty Tax of $4.6 million.

Quarterly operating cash flow totaled $(8.0) million, reflecting lower operating cash flow across most of the Company’s operations and unfavorable changes in working capital during the period. Cash flow prior to changes in working capital totaled $30.1 million. Operating cash flow in the first quarter was impacted by Silvertip, including (i) cash outflow of approximately $10.4 million related to an inventory adjustment prior to the suspension of active mining and processing activities in mid-February and (ii) $6.3 million of costs associated with the ramp down, including $3.7 million in one-time costs primarily related to employee severance and contractual obligations. The Company now expects ongoing carrying costs during the suspension to total approximately $4.5 million per quarter, down from its original estimate of approximately $6.0 million per quarter.

Additionally, first quarter operating cash flow includes approximately $7.0 million of cash outflow associated with the Company’s prepayment agreement at Kensington. Coeur expects the remaining $8.0 million cash outflow under the arrangement will occur in the second quarter.

First quarter capital expenditures remained relatively consistent with the prior period, totaling $22.2 million. Sustaining and development capital expenditures accounted for approximately 77% and 23%, respectively, of the Company’s capital expenditures during the quarter.

COVID-19 Update

Coeur established a special advisory committee to evaluate ongoing concerns, risks and challenges with respect to COVID-19 across its operations and corporate headquarters in early March 2020. The primary goals of the committee include (i) protecting the health, safety and well-being of Coeur’s workforce and communities, and (ii) ensuring the continuity of business operations. The committee meets regularly via video conference and has elevated its level of communications by proactively engaging with various stakeholders, including regulators, government officials, community partners and healthcare providers, among others.

The current status of each of the Company’s operations is highlighted below:

Operation

Location

Status

Commentary

Palmarejo

Chihuahua, Mexico

Temporarily suspended

Precious metals mining not considered essential as part of decree issued by the Federal Government of Mexico on March 31, 2020

Rochester

Nevada, United States

Operating

Mining considered essential as part of State of Nevada regulations issued on March 20, 2020

Kensington

Alaska, United States

Operating

Mining considered essential as part of State of Alaska declaration on March 27, 2020

Wharf

South Dakota, United States

Operating

State of South Dakota issued a public order mandating the closure of all public-facing businesses, which does not include Wharf, on March 23, 2020

Silvertip

British Columbia, Canada

Temporarily suspended

Previously announced temporary suspension of mining and processing activities (unrelated to COVID-19). No actions required at this time to comply with restrictions issued by the Government of British Columbia

Each of the Company’s operations has developed site-specific screening, education and modifications to work procedures to limit and identify COVID-19 exposure and transmission. Operational readiness is routinely being assessed as the situation continues to evolve and each site has scenario plans in place, should the need arise. Coeur is following guidance from the U.S. Centers for Disease Control and Prevention, Mexican and Canadian public health officials, World Health Organization as well as federal, state and local authorities to safeguard the health, safety and well-being of its employees, contractors and communities, and minimize business interruption.

Key initiatives that the Company has undertaken include:

Coeur has also evaluated its supply chain and metal sales risks at each operation and remains in close contact with critical vendors, customers and transportation providers, establishing back-up arrangements to mitigate the impact of any disruptions related to COVID-19. The Company has not experienced any material disruptions and has incurred minimal additional operating costs to date.

Liquidity Update

A key element of the Company’s strategy is prudent balance sheet management. At March 31, 2020, Coeur had $252.9 million of total liquidity, including $52.9 million of cash and cash equivalents and $200.0 million of availability under its RCF that is scheduled to mature in October 2022. The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary).

To provide additional flexibility to respond to potential downside scenarios, Coeur drew an additional $100.0 million from its RCF shortly after the end of the first quarter as a precautionary measure. As of April 22, 2020, the Company had approximately $150.0 million drawn under its RCF. Additionally, as Coeur seeks to proactively maximize its financial flexibility during these unprecedented levels of volatility and uncertainty, the Company intends to take the prudent step of re-establishing an at-the-market equity facility.

Hedging Update

Building on the gold hedging program that commenced in 2019, Coeur continued to execute additional series of ZCC hedges on a portion of its gold production. The ZCC structure allows for downside protection against potential decreases in the price of gold, while enabling participation in the potential upside to a specified ceiling price. An overview of the hedges currently implemented is outlined below:

During the quarter, the Coeur also implemented a series of foreign currency hedges to further enhance its downside protection. The Company has secured rate protection on approximately 50% of its Mexican peso- and Canadian dollar-denominated expenses for 2020 at average rates of roughly 24.09 and 1.44, respectively, and approximately 50% of its Mexican peso-denominated expenses for 2021 at an average rate of roughly 24.99.

Rochester Expansion

With the receipt of the Record of Decision in March 2020, the Company received the key regulatory approval to begin advancing its work on POA 11 at Rochester. The expansion project contemplates the construction of a new leach pad, a new crushing facility equipped with a second high-pressure grinding roll unit and a new Merrill-Crowe process plant as well as additional infrastructure to support the extension of Rochester’s mine life.

The Company is nearing completion of its internal studies to support the expansion with the assistance of SNC-Lavalin who has been selected to provide engineering, procurement and overall project management services. Coeur intends to complete its internal review of the business case supporting the expansion during the second quarter of 2020.

The Company intends to file an updated technical report in accordance with Canadian National Instrument 43-101 in late 2020 further outlining the expansion, including an updated mine plan and proposed capital estimate as well as additional operational and financial information regarding the expected impacts of high-pressure grinding roll technology.

Operations

First quarter 2020 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Tons milled

479,562

486,779

442,464

447,727

378,987

Average gold grade (oz/t)

0.07

0.07

0.09

0.07

0.07

Average silver grade (oz/t)

4.69

5.11

4.88

4.74

4.64

Average recovery rate – Au

91.6%

84.9%

81.7%

87.7%

83.4%

Average recovery rate – Ag

81.5%

81.7%

79.6%

81.8%

72.8%

Gold ounces produced

31,578

28,702

31,779

28,246

23,205

Silver ounces produced (000’s)

1,835

2,029

1,720

1,735

1,278

Gold ounces sold

31,287

27,952

32,731

28,027

27,394

Silver ounces sold (000’s)

1,895

1,980

1,747

1,709

1,405

Average realized price per gold ounce

$1,331

$1,238

$1,269

$1,210

$1,154

Average realized price per silver ounce

$17.25

$17.28

$17.05

$14.86

$15.39

Metal sales

$74.3

$68.9

$71.3

$59.3

$53.2

Costs applicable to sales2

$36.0

$34.8

$37.4

$36.5

$33.2

Adjusted CAS per AuOz1

$645

$622

$660

$741

$713

Adjusted CAS per AgOz1

$8.37

$8.79

$8.95

$9.17

$9.66

Exploration expense

$1.5

$2.0

$1.6

$1.1

$1.0

Cash flow from operating activities

$28.9

$41.4

$36.3

$15.6

$5.9

Sustaining capital expenditures (excludes capital lease payments)

$7.1

$6.2

$4.7

$5.0

$6.0

Development capital expenditures

$—

$2.4

$3.1

$2.6

$2.7

Total capital expenditures

$7.1

$8.6

$7.8

$7.6

$8.7

Free cash flow1

$21.8

$32.8

$28.5

$8.0

$(2.8)

Operational

Financial

Exploration

Other

Rochester, Nevada

(Dollars in millions, except per ounce amounts)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Ore tons placed

3,428,578

2,612,319

2,516,353

2,786,287

2,667,559

Average silver grade (oz/t)

0.57

0.47

0.43

0.45

0.46

Average gold grade (oz/t)

0.002

0.003

0.004

0.003

0.003

Silver ounces produced (000’s)

687

848

982

971

960

Gold ounces produced

5,936

10,634

7,901

8,609

8,256

Silver ounces sold (000’s)

632

932

951

962

1,000

Gold ounces sold

5,473

11,248

7,651

8,642

8,511

Average realized price per silver ounce

$16.99

$17.22

$17.02

$14.83

$15.31

Average realized price per gold ounce

$1,583

$1,484

$1,476

$1,295

$1,299

Metal sales

$19.4

$32.6

$27.5

$25.5

$26.4

Costs applicable to sales2

$17.0

$25.3

$27.7

$24.7

$22.5

Adjusted CAS per AgOz1

$14.38

$13.25

$14.24

$13.19

$12.83

Adjusted CAS per AuOz1

$1,359

$1,142

$1,230

$1,153

$1,092

Exploration expense

$0.2

$0.4

$0.1

$0.1

$0.1

Cash flow from operating activities

$(9.3)

$6.9

$8.3

$1.6

$(1.0)

Sustaining capital expenditures (excludes capital lease payments)

$0.1

$0.9

$(1.0)

$0.4

$1.8

Development capital expenditures

$5.0

$4.1

$11.2

$2.4

$2.8

Total capital expenditures

$5.1

$5.0

$10.2

$2.8

$4.6

Free cash flow1

$(14.4)

$1.9

$(1.9)

$(1.2)

$(5.6)

Operational

Financial

Exploration

Other

Kensington, Alaska

(Dollars in millions, except per ounce amounts)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Tons milled

162,341

167,061

166,475

160,510

164,332

Average gold grade (oz/t)

0.21

0.20

0.22

0.23

0.20

Average recovery rate

93.5%

87.2%

93.2%

93.0%

90.2%

Gold ounces produced

32,022

29,736

34,156

34,049

29,973

Gold ounces sold

32,781

29,293

35,452

34,415

31,335

Average realized price per gold ounce, gross

$1,603

$1,493

$1,505

$1,332

$1,301

Treatment and refining charges per gold ounce

$27

$24

$20

$20

$15

Average realized price per gold ounce, net

$1,576

$1,469

$1,485

$1,312

$1,286

Metal sales

$51.7

$43.0

$52.6

$45.2

$40.3

Costs applicable to sales2

$30.5

$28.8

$29.5

$29.1

$32.2

Adjusted CAS per AuOz1

$928

$976

$822

$842

$990

Prepayment, working capital cash flow

$(7.0)

$4.7

$(14.7)

$25.0

$—

Exploration expense

$1.8

$1.6

$1.5

$2.0

$0.5

Cash flow from operating activities

$11.9

$19.9

$4.5

$41.4

$6.2

Sustaining capital expenditures (excludes capital lease payments)

$4.8

$4.3

$4.9

$4.9

$9.4

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$4.8

$4.3

$4.9

$4.9

$9.4

Free cash flow1

$7.1

$15.6

$(0.4)

$36.5

$(3.2)

Operational

Financial

Exploration

Other

Wharf, South Dakota

(Dollars in millions, except per ounce amounts)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Ore tons placed

946,449

1,100,393

1,503,021

919,435

1,090,510

Average gold grade (oz/t)

0.025

0.023

0.027

0.023

0.020

Gold ounces produced

15,541

25,644

25,946

15,680

16,902

Silver ounces produced (000’s)

15

20

18

12

13

Gold ounces sold

16,094

27,039

24,573

15,301

18,086

Silver ounces sold (000’s)

15

21

17

12

14

Average realized price per gold ounce

$1,592

$1,482

$1,481

$1,311

$1,317

Metal sales

$25.9

$40.5

$36.7

$20.2

$24.0

Costs applicable to sales2

$17.8

$25.7

$22.1

$15.5

$17.4

Adjusted CAS per AuOz1

$1,090

$802

$887

$1,002

$949

Exploration expense

$—

$0.2

$0.1

$—

$—

Cash flow from operating activities

$2.6

$17.0

$17.6

$0.5

$4.2

Sustaining capital expenditures (excludes capital lease payments)

$0.4

$0.8

$0.8

$0.2

$0.4

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$0.4

$0.8

$0.8

$0.2

$0.4

Free cash flow1

$2.2

$16.2

$16.8

$0.3

$3.8

Operational

Financial

Exploration

Other

Silvertip, British Columbia

(Dollars in millions, except per ounce and per pound amounts)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Tons milled

29,240

61,662

53,145

59,689

62,051

Average silver grade (oz/t)

7.03

6.97

7.54

7.48

5.50

Average zinc grade (%)

7.1%

7.5%

7.6%

7.5%

5.9%

Average lead grade (%)

5.2%

4.9%

5.4%

5.4%

3.7%

Average recovery rate – Ag

67.7%

65.1%

74.8%

77.0%

69.9%

Average recovery rate – Zn

59.3%

42.0%

51.7%

59.1%

50.5%

Average recovery rate – Pb

71.2%

66.4%

78.4%

77.3%

66.8%

Silver ounces produced (000's)

139

279

300

344

239

Zinc pounds produced (000's)

2,460

3,865

4,197

5,322

3,719

Lead pounds produced (000's)

2,177

4,021

4,478

4,980

3,077

Silver ounces sold (000's)

159

294

290

365

215

Zinc pounds sold (000's)

3,203

4,053

4,076

5,303

4,723

Lead pounds sold (000's)

2,453

4,223

4,331

5,186

2,748

Average realized price per silver ounce, gross

$10.10

$16.61

$19.94

$15.18

$14.98

Treatment and refining charges per silver ounce

$2.36

$2.34

$1.63

$1.18

$1.24

Average realized price per silver ounce, net

$7.74

$14.27

$18.31

$14.00

$13.74

Average realized price per zinc pound, gross

$0.15

$1.04

$0.86

$0.83

$1.50

Treatment and refining charges per zinc pound

$0.36

$0.42

$0.36

$0.34

$0.31

Average realized price per zinc pound, net

$(0.21)

$0.62

$0.50

$0.49

$1.19

Average realized price per lead pound, gross

$0.65

$0.89

$0.98

$0.87

$0.92

Treatment and refining charges per lead pound

$0.11

$0.11

$0.06

$0.05

$0.06

Average realized price per lead pound, net

$0.54

$0.78

$0.92

$0.82

$0.86

Metal sales

$1.9

$10.2

$11.3

$11.9

$10.9

Costs applicable to sales2

$17.7

$32.0

$24.2

$26.2

$26.4

Adjusted CAS per AgOz1

$11.79

$11.22

$14.14

$13.31

$13.73

Adjusted CAS per ZnLb1

$1.12

$0.69

$0.75

$1.02

$1.18

Adjusted CAS per PbLb1

$0.74

$0.62

$0.71

$0.77

$0.88

Exploration expense

$0.3

$0.9

$0.8

$0.7

$0.1

Cash flow from operating activities

$(27.1)

$(28.6)

$(15.3)

$(11.6)

$(13.9)

Sustaining capital expenditures (excludes capital lease payments)

$4.6

$2.0

$6.4

$5.0

$4.1

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$4.6

$2.0

$6.4

$5.0

$4.1

Free cash flow1

$(31.7)

$(30.6)

$(21.7)

$(16.6)

$(18.0)

Operational

Financial

Exploration

Other

Exploration

During the first quarter, the Company drilled 169,680 feet (51,719 meters) at a total investment of approximately $8.1 million ($6.4 million expensed and $1.7 million), compared to 142,385 feet (43,400 meters) at a total investment of roughly $9.1 million ($7.2 million expensed and $1.9 million capitalized) in the fourth quarter of 2019. Total feet drilled during the first quarter was approximately 19% higher compared to the prior period and 58% higher than the first quarter of 2019. The increase in drilling activity was due primarily to an accelerated ramp up in drill rigs at Palmarejo and the Sterling and Crown exploration properties in southern Nevada.

At Sterling and Crown, up to three reverse circulation rigs and a surface geology mapping program were active during the first quarter. A total of 48,090 feet (14,658 meters) were drilled during the quarter, compared to 35,610 feet (10,854 meters) in the prior period. One smaller, track-mounted rig focused on expansion drilling at the Secret Pass deposit, while a second, larger truck rig focused on testing the new C-Horst geophysical target, located approximately two miles north of the SNA deposit. Both the Secret Pass and SNA deposits are contained within the Crown Block.

At Sterling, a third rig continued drilling both infill and expansion holes in an effort to expand mineralization estimates by the end of the year. The drilling is specifically targeting higher-grade faults that controlled oxide gold mineralization in historical mining areas as well as shallow horizontal mineralized zones.

Both the infill and expansion drilling programs at Sterling and Crown are expected to continue throughout 2020. As part of the infill exploration, a core drilling program is scheduled to begin early in the second quarter with the objective of collecting core samples for density, metallurgy and engineering.

At the La Preciosa project located in Durango, Mexico, work on updating a scoping study progressed using the new geological and resource model. The scoping study is expected to be completed during the second quarter. Geological mapping, sampling and trenching continued during the quarter, while work commenced to independently audit the location of historic drillhole collars.

Financial Results and Conference Call

Coeur will host a conference call to discuss its first quarter 2020 financial results on April 23, 2020 at 11:00 a.m. Eastern Time.

Dial-In Numbers:

(855) 560-2581 (U.S.)

(855) 669-9657 (Canada)

(412) 542-4166 (International)

Conference ID:

Coeur Mining

Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Terry F. D. Smith, Senior Vice President of Operations, Hans J. Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through May 7, 2020.

Replay numbers:

(877) 344-7529 (U.S.)

(855) 669-9658 (Canada)

(412) 317-0088 (International)

Conference ID:

101 40 059

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Cautionary Statements

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding exploration and development efforts and plans, the pre-feasibility study regarding an expansion of the mill at Silvertip, the impact of the new crushing circuit, expansion project and technical report preparation at Rochester, our hedging strategies, priorities, returns, growth, financial flexibility, crushing, anticipated production, COVID-19 mitigation efforts, strategic initiatives and operations at Palmarejo, Rochester, Wharf, Kensington and Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated production levels are not attained, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically-related conditions), changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, the uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and, grade variability, any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), the uncertainties inherent in the estimation of mineral reserves, changes that could result from Coeur’s future acquisition of new mining properties or businesses, the loss of access or insolvency of any third-party refiner or smelter to which Coeur markets its production, the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, the effects of environmental and other governmental regulations and government shut-downs, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities. This does not constitute an offer of any securities for sale.

Christopher Pascoe, Coeur’s Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur’s mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur’s properties as filed on SEDAR at www.sedar.com.

Non-U.S. GAAP Measures

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss) and adjusted costs applicable to sales per ounce (gold and silver) or pound (zinc or lead). We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss) and adjusted costs applicable to sales per ounce (gold and silver) and pound (zinc and lead) are important measures in assessing the Company’s overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2019 and our Form 10-Q for the quarter ended March 31, 2020.

Notes

  1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss) and adjusted costs applicable to sales per ounce (gold and silver) or pound (lead and zinc) are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Free cash flow is defined as cash flow from operating activities less capital expenditures and gold production royalty payments. Please see table in Appendix for the calculation of consolidated free cash flow.
  2. Excludes amortization.
  3. Includes capital leases. Net of debt issuance costs and premium received.

Average Spot Prices

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Average Gold Spot Price Per Ounce

$

1,583

$

1,481

$

1,472

$

1,309

$

1,304

Average Silver Spot Price Per Ounce

$

16.90

$

17.32

$

16.98

$

14.88

$

15.57

Average Zinc Spot Price Per Pound

$

0.96

$

1.08

$

1.07

$

1.25

$

1.23

Average Lead Spot Price Per Pound

$

0.84

$

0.93

$

0.92

$

0.85

$

0.92

CONDENSED COEUR MINING, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2019

December 31, 2019

ASSETS

In thousands, except share data

CURRENT ASSETS

Cash and cash equivalents

$

52,895

$

55,645

Receivables

19,722

18,666

Inventory

51,857

55,886

Ore on leach pads

83,035

66,192

Prepaid expenses and other

14,150

14,047

221,659

210,436

NON-CURRENT ASSETS

Property, plant and equipment, net

242,018

248,789

Mining properties, net

702,960

711,955

Ore on leach pads

66,703

71,539

Restricted assets

8,123

8,752

Equity and debt securities

26,826

35,646

Receivables

23,149

28,709

Other

57,659

62,810

TOTAL ASSETS

$

1,349,097

$

1,378,636

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

$

61,519

$

69,176

Accrued liabilities and other

49,935

95,616

Debt

23,588

22,746

Reclamation

3,094

3,114

138,136

190,652

NON-CURRENT LIABILITIES

Debt

319,521

272,751

Reclamation

135,436

133,417

Deferred tax liabilities

36,472

41,976

Other long-term liabilities

58,888

72,836

550,317

520,980

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY

Common stock, par value $0.01 per share; authorized 300,000,000 shares, 243,586,226 issued and outstanding at March 31, 2020 and 241,529,021 at December 31, 2019

2,436

2,415

Additional paid-in capital

3,603,785

3,598,472

Accumulated other comprehensive income (loss)

70

(136

)

Accumulated deficit

(2,945,647

)

(2,933,747

)

660,644

667,004

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,349,097

$

1,378,636

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

Three Months Ended March 31,

2020

2019

In thousands, except share data

Revenue

$

173,167

$

154,870

COSTS AND EXPENSES

Costs applicable to sales(1)

118,917

131,650

Amortization

36,162

41,876

General and administrative

8,920

9,474

Exploration

6,386

3,714

Pre-development, reclamation, and other

6,555

4,434

Total costs and expenses

176,940

191,148

OTHER INCOME (EXPENSE), NET

Fair value adjustments, net

(8,819

)

9,120

Interest expense, net of capitalized interest

(5,128

)

(6,454

)

Other, net

1,881

60

Total other income (expense), net

(12,066

)

2,726

Income (loss) before income and mining taxes

(15,839

)

(33,552

)

Income and mining tax (expense) benefit

3,939

8,658

Income (loss) from continuing operations

$

(11,900

)

$

(24,894

)

Income (loss) from discontinued operations

—

5,693

NET INCOME (LOSS)

$

(11,900

)

$

(19,201

)

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Unrealized gain (loss) on cash flow hedges, net of tax of $22 for the three months ended March 31, 2020

206

—

Unrealized gain (loss) on debt and equity securities

—

59

Other comprehensive income (loss)

206

59

COMPREHENSIVE INCOME (LOSS)

$

(11,694

)

$

(19,142

)

NET INCOME (LOSS) PER SHARE

Basic income (loss) per share:

Net income (loss) from continuing operations

$

(0.05

)

$

(0.12

)

Net income (loss) from discontinued operations

0.00

0.03

Basic(2)

$

(0.05

)

$

(0.09

)

Diluted income (loss) per share:

Net income (loss) from continuing operations

$

(0.05

)

$

(0.12

)

Net income (loss) from discontinued operations

0.00

0.03

Diluted(2)

$

(0.05

)

$

(0.09

)

(1)

Excludes amortization.

(2)

Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.

.

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

2020

2019

In thousands

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

(11,900

)

$

(19,201

)

(Income) loss from discontinued operations

—

(5,693

)

Adjustments:

Amortization

36,162

41,876

Accretion

2,847

2,943

Deferred taxes

(5,487

)

(8,259

)

Fair value adjustments, net

8,819

(9,120

)

Stock-based compensation

2,013

2,223

Gain on modification of right of use lease

(4,051

)

—

Write-downs

10,381

15,447

Deferred revenue recognition

(7,548

)

(445

)

Other

(1,092

)

1,695

Changes in operating assets and liabilities:

Receivables

(813

)

(9,735

)

Prepaid expenses and other current assets

(346

)

(2,684

)

Inventory and ore on leach pads

(21,925

)

(18,821

)

Accounts payable and accrued liabilities

(15,051

)

(6,072

)

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS

(7,991

)

(15,846

)

CASH PROVIDED BY (USED IN )OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS

—

—

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

(7,991

)

(15,846

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(22,208

)

(27,438

)

Proceeds from the sale of assets

4,506

847

Proceeds from notes receivable

—

5,168

Other

(17

)

1,741

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS

(17,719

)

(19,682

)

CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS

—

—

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

(17,719

)

(19,682

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of notes and bank borrowings, net of issuance costs

50,000

15,000

Payments on debt, finance leases, and associated costs

(5,901

)

(22,356

)

Silvertip contingent consideration

(18,750

)

—

Other

(1,973

)

(3,364

)

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS

23,376

(10,720

)

CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS

—

—

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

23,376

(10,720

)

Effect of exchange rate changes on cash and cash equivalents

(626

)

201

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(2,960

)

(46,047

)

Less net cash used in discontinued operations(1)

—

—

(2,960

)

(46,047

)

Cash, cash equivalents and restricted cash at beginning of period

57,018

118,069

Cash, cash equivalents and restricted cash at end of period

$

54,058

$

72,022

Adjusted EBITDA Reconciliation

(Dollars in thousands except per share amounts)

LTM 1Q
2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Net income (loss)

$

(333,902

)

$

(11,900

)

$

(270,961

)

$

(14,277

)

$

(36,764

)

$

(19,201

)

(Income) loss from discontinued operations, net of tax

—

—

—

—

—

(5,693

)

Interest expense, net of capitalized interest

23,445

5,128

5,512

5,980

6,825

6,454

Income tax provision (benefit)

(6,410

)

(3,939

)

2,857

218

(5,546

)

(8,658

)

Amortization

173,162

36,162

48,118

45,678

43,204

41,876

EBITDA

(143,705

)

25,451

(214,474

)

37,599

7,719

14,778

Fair value adjustments, net

1,909

8,819

(7,829

)

(4,377

)

5,296

(9,120

)

Foreign exchange (gain) loss

3,757

76

268

2,945

468

665

Asset retirement obligation accretion

12,058

2,847

3,124

3,080

3,007

2,943

Inventory adjustments and write-downs

5,747

476

363

5,371

2,193

1,623

(Gain) loss on sale of assets and securities

392

(374

)

594

100

72

(52

)

Impairment of long-lived assets

250,814

—

250,814

—

—

—

Silvertip inventory write-down

59,544

10,381

23,325

13,966

11,872

15,447

Silvertip one-time costs

3,659

3,659

—

—

—

—

Silvertip lease modification

(4,051

)

(4,051

)

—

—

—

—

Silvertip gain on contingent consideration

(955

)

(955

)

—

—

—

—

COVID-19 one-time costs

272

272

—

—

—

—

Wharf inventory write-down

3,596

—

3,596

—

—

—

Loss on debt extinguishment

1,282

—

—

1,282

—

—

Receivable write-down

1,040

—

—

1,040

—

—

Interest income on notes receivables

(18

)

—

—

—

(18

)

(180

)

Adjusted EBITDA

$

195,341

$

46,601

$

59,781

$

61,006

$

30,609

$

26,104

Revenue

$

729,799

$

173,167

$

195,040

$

199,469

$

162,123

$

154,870

Adjusted EBITDA Margin

27

%

27

%

31

%

31

%

19

%

17

%

Adjusted Net Income (Loss) Reconciliation

(Dollars in thousands except per share amounts)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Net income (loss)

$

(11,900

)

$

(270,961

)

$

(14,277

)

$

(36,764

)

$

(19,201

)

Income loss from discontinued operations, net of tax

—

—

—

—

(5,693

)

Fair value adjustments, net

8,819

(7,829

)

(4,377

)

5,296

(9,120

)

Foreign exchange loss (gain)

(6,620

)

1,733

2,022

889

1,256

(Gain) loss on sale of assets and securities

(374

)

594

100

72

(52

)

Impairment of long-lived assets

—

250,814

—

—

—

Silvertip inventory write-down

10,381

23,325

13,966

11,872

15,447

Silvertip one-time costs

3,659

—

—

—

—

Silvertip lease modification

(4,051

)

—

—

—

—

Silvertip gain on contingent consideration

(955

)

—

—

—

—

COVID-19 one-time costs

272

—

—

—

—

Wharf inventory write-down

—

3,596

—

—

—

Loss on debt extinguishment

—

—

1,282

—

—

Receivable write-down

—

—

1,040

—

—

Interest income on notes receivables

—

—

—

(18

)

(180

)

Tax effect of adjustments

—

(4,572

)

(5,096

)

(4,332

)

(5,415

)

Adjusted net income (loss)

$

(769

)

$

(3,300

)

$

(5,340

)

$

(22,985

)

$

(22,958

)

Adjusted net income (loss) per share - Basic

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.11

)

$

(0.11

)

Adjusted net income (loss) per share - Diluted

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.11

)

$

(0.11

)

Consolidated Free Cash Flow Reconciliation

(Dollars in thousands)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Cash flow from continuing operations

$

(7,991

)

$

39,295

$

41,996

$

26,435

$

(15,846

)

Capital expenditures from continuing operations

22,208

20,907

30,678

20,749

27,438

Free cash flow

$

(30,199

)

$

18,388

$

11,318

$

5,686

$

(43,284

)

Consolidated Operating Cash Flow

Before Working Capital Changes Reconciliation

(Dollars in thousands)

1Q 2020

4Q 2019

3Q 2019

2Q 2019

1Q 2019

Cash provided by (used in) continuing operating activities

$

(7,991

)

$

39,295

$

41,996

$

26,435

$

(15,846

)

Changes in operating assets and liabilities:

Receivables

813

(17,970

)

3,350

7,624

9,735

Prepaid expenses and other

346

(2,423

)

(1,375

)

834

2,684

Inventories

21,925

20,397

9,389

14,391

18,821

Accounts payable and accrued liabilities

15,051

18,318

(22,384

)

(25,109

)

6,072

Cash flow before changes in operating assets and liabilities

$

30,144

$

57,617

$

30,976

$

24,175

$

21,466

Reconciliation of Costs Applicable to Sales

for Three Months Ended March 31, 2020

In thousands except per ounce or per pound amounts

Palmarejo

Rochester

Kensington

Wharf

Silvertip

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

49,149

$

19,860

$

42,429

$

20,267

$

23,002

$

154,707

Amortization

(13,175

)

(2,904

)

(11,922

)

(2,444

)

(5,345

)

(35,790

)

Costs applicable to sales

$

35,974

$

16,956

$

30,507

$

17,823

$

17,657

$

118,917

Inventory Adjustments

73

(422

)

(101

)

(25

)

(10,381

)

(10,856

)

By-product credit

—

—

—

(248

)

—

(248

)

Adjusted costs applicable to sales

$

36,047

$

16,534

$

30,406

$

17,550

$

7,276

$

107,813

Metal Sales

Gold ounces

31,287

5,473

32,781

16,094

85,635

Silver ounces

1,894,789

632,237

14,768

158,984

2,700,778

Zinc pounds

3,203,446

3,203,446

Lead pounds

2,453,485

2,453,485

Revenue Split

Gold

56

%

45

%

100

%

100

%

Silver

44

%

55

%

26

%

Zinc

48

%

Lead

26

%

Adjusted costs applicable to sales

Gold ($/oz)

$

645

$

1,359

$

928

$

1,090

Silver ($/oz)

$

8.37

$

14.38

$

11.79

Zinc ($/lb)

$

1.12

Lead ($/lb)

$

0.74

Reconciliation of Costs Applicable to Sales

for Three Months Ended December 31, 2019

In thousands except per ounce or per pound amounts

Palmarejo

Rochester

Kensington

Wharf

Silvertip

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

49,590

$

31,100

$

41,537

$

29,818

$

42,189

$

194,234

Amortization

(14,799

)

(5,791

)

(12,776

)

(4,072

)

(10,166

)

(47,604

)

Costs applicable to sales

$

34,791

$

25,309

$

28,761

$

25,746

$

32,023

$

146,630

Inventory Adjustments

(11

)

(116

)

(176

)

(3,677

)

(23,325

)

(27,305

)

By-product credit

—

—

—

(373

)

—

(373

)

Adjusted costs applicable to sales

$

34,780

$

25,193

$

28,585

$

21,696

$

8,698

$

118,952

Metal Sales

Gold ounces

27,953

11,248

29,293

27,039

—

95,533

Silver ounces

1,979,315

931,326

21,132

294,498

3,226,271

Zinc pounds

4,052,554

4,052,554

Lead pounds

4,223,504

4,223,504

Revenue Split

Gold

50

%

51

%

100

%

100

%

Silver

50

%

49

%

38

%

Zinc

32

%

Lead

30

%

Adjusted costs applicable to sales

Gold ($/oz)

$

622

$

1,142

$

976

$

802

Silver ($/oz)

$

8.79

$

13.25

$

11.22

Zinc ($/lb)

$

0.69

Lead ($/lb)

$

0.62

Reconciliation of Costs Applicable to Sales

for Three Months Ended September 30, 2019

In thousands except per ounce or per pound amounts

Palmarejo

Rochester

Kensington

Wharf

Silvertip

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

53,237

$

31,999

$

43,085

$

25,385

$

32,457

$

186,163

Amortization

(15,840

)

(4,250

)

(13,552

)

(3,301

)

(8,268

)

(45,211

)

Costs applicable to sales

$

37,397

$

27,749

$

29,533

$

22,084

$

24,189

$

140,952

Inventory Adjustments

(175

)

(4,799

)

(405

)

(7

)

(13,966

)

(19,352

)

By-product credit

—

—

—

(293

)

—

(293

)

Adjusted costs applicable to sales

$

37,222

$

22,950

$

29,128

$

21,784

$

10,223

$

121,307

Metal Sales

Gold ounces

32,731

7,651

35,452

24,573

100,407

Silver ounces

1,747,250

951,043

16,612

289,910

3,004,815

Zinc pounds

4,076,390

4,076,390

Lead pounds

4,330,862

4,330,862

Revenue Split

Gold

58

%

41

%

100

%

100

%

Silver

42

%

59

%

39

%

Zinc

29

%

Lead

32

%

Adjusted costs applicable to sales

Gold ($/oz)

$

660

$

1,230

$

822

$

887

Silver ($/oz)

$

8.95

$

14.24

$

14.14

Zinc ($/lb)

$

0.75

Lead ($/lb)

$

0.71

Reconciliation of Costs Applicable to Sales

for Three Months Ended June 30, 2019

In thousands except per ounce or per pound amounts

Palmarejo

Rochester

Kensington

Wharf

Silvertip

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

50,708

$

28,656

$

41,670

$

17,691

$

36,038

$

174,763

Amortization

(14,212

)

(3,963

)

(12,537

)

(2,225

)

(9,878

)

(42,815

)

Costs applicable to sales

$

36,496

$

24,693

$

29,133

$

15,466

$

26,160

$

131,948

Inventory Adjustments

(39

)

(2,045

)

(156

)

48

(11,872

)

(14,064

)

By-product credit

—

—

—

(188

)

—

(188

)

Adjusted costs applicable to sales

$

36,457

$

22,648

$

28,977

$

15,326

$

14,288

$

117,696

Metal Sales

Gold ounces

28,027

8,642

34,415

15,301

—

86,385

Silver ounces

1,709,406

961,634

12,364

364,961

3,048,365

Zinc pounds

5,302,508

5,302,508

Lead pounds

5,185,634

5,185,634

Revenue Split

Gold

57

%

44

%

100

%

100

%

Silver

43

%

56

%

34

%

Zinc

38

%

Lead

28

%

Adjusted costs applicable to sales

Gold ($/oz)

$

741

$

1,153

$

842

$

1,002

Silver ($/oz)

$

9.17

$

13.19

$

13.31

Zinc ($/lb)

$

1.02

Lead ($/lb)

$

0.77

Reconciliation of Costs Applicable to Sales

for Three Months Ended March 31, 2019

In thousands except per ounce or per pound amounts

Palmarejo

Rochester

Kensington

Wharf

Silvertip

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

47,772

$

26,491

$

43,902

$

20,073

$

34,811

$

173,049

Amortization

(14,528

)

(4,037

)

(11,727

)

(2,681

)

(8,426

)

(41,399

)

Costs applicable to sales

$

33,244

$

22,454

$

32,175

$

17,392

$

26,385

$

131,650

Inventory Adjustments

(141

)

(323

)

(1,164

)

(5

)

(15,447

)

(17,080

)

By-product credit

—

—

—

(217

)

—

(217

)

Adjusted costs applicable to sales

$

33,103

$

22,131

$

31,011

$

17,170

$

10,938

$

114,353

Metal Sales

Gold ounces

27,394

8,511

31,335

18,086

85,326

Silver ounces

1,405,409

1,000,453

—

14,052

215,101

2,635,015

Zinc pounds

4,723,069

4,723,069

Lead pounds

2,747,847

2,747,847

Revenue Split

Gold

59

%

42

%

100

%

100

%

Silver

41

%

58

%

27

%

Zinc

51

%

Lead

22

%

Adjusted costs applicable to sales

Gold ($/oz)

$

713

$

1,092

$

990

$

949

Silver ($/oz)

$

9.66

$

12.83

$

13.73

Zinc ($/lb)

$

1.18

Lead ($/lb)

$

0.88

For Additional Information

Coeur Mining, Inc.

104 S. Michigan Avenue, Suite 900

Chicago, IL 60603

Attention: Paul DePartout, Director, Investor Relations

Phone: (312) 489-5800

www.coeur.com

Source: Coeur Mining, Inc.

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