Upgrade to SI Premium - Free Trial

Coeur Reports Second Quarter 2020 Results

July 29, 2020 4:46 PM

Provides Updated Full-Year 2020 Guidance

CHICAGO--(BUSINESS WIRE)-- Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported second quarter 2020 financial results, including revenue of $154.2 million, cash flow from operating activities of $9.9 million and GAAP net loss from continuing operations of $1.2 million, or $0.01 per share. On an adjusted basis1, the Company reported EBITDA of $42.2 million, cash flow from operating activities prior to changes in working capital of $16.4 million and net income from continuing operations of $2.6 million, or $0.01 per share.

Key Highlights

“Like most companies, our second quarter results were negatively impacted by COVID-19. Most notably at Palmarejo, our strongest performing asset in the first quarter, operations were temporarily suspended due to a decree from the Federal government of Mexico. However, with Palmarejo now back in production, our three U.S. operations hitting their strides and the tailwind of higher gold and silver prices, we are anticipating a strong second half of 2020 and expect to continue this momentum into 2021,” said Mitchell J. Krebs, President and Chief Executive Officer. “I would like to thank everyone at Coeur for working tirelessly under challenging circumstances to safely and responsibly deliver critical minerals that are essential to nearly every aspect of modern life. Their ongoing efforts have allowed the Company to be well positioned to benefit from higher gold and silver prices going forward.”

Mr. Krebs continued, “Looking ahead over the coming quarters, we are excited about the direction we are headed as a company. We recently enhanced our team by bringing in Mick Routledge as our new Chief Operating Officer and appointing Terry Smith as our Chief Development Officer, which has provided us greater organizational bandwidth and a leadership structure that is better aligned with our strategy and key priorities. Our top strategic priority is the POA 11 expansion at Rochester, which is expected to generate exponentially higher annual free cash flow and represents a fundamental inflection point for Coeur. Additionally, the success of our exploration programs and acquisitions made at much lower gold and silver prices provides a balanced pipeline of near-, medium- and long-term growth opportunities that we believe will unlock meaningful value for our stockholders.”

“With multiple key catalysts in the coming quarters, we plan to proactively update investors on our capital allocation decisions and their expected impact on the Company’s growth, costs and cash flow. We plan to publish an exploration update in August given the size and importance of our investment in exploration in 2020. We also intend to deliver the results of Rochester’s updated technical report in the fourth quarter that will detail the updated economics of this important expansion project,” concluded Mr. Krebs.

Financial and Operating Highlights (Unaudited)

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

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Gold Sales

$

127.9

$

127.6

$

134.3

$

141.9

$

110.3

Silver Sales

$

26.3

$

44.9

$

54.8

$

51.6

$

45.0

Zinc Sales

$

—

$

(0.7

)

$

2.6

$

2.0

$

2.6

Lead Sales

$

—

$

1.3

$

3.3

$

4.0

$

4.2

Consolidated Revenue

$

154.2

$

173.2

$

195.0

$

199.5

$

162.1

Costs Applicable to Sales4

$

90.0

$

118.9

$

146.6

$

141.0

$

131.9

General and Administrative Expenses

$

8.6

$

8.9

$

7.6

$

9.6

$

7.8

Net Income (Loss)

$

(1.2

)

$

(11.9

)

$

(270.9

)

$

(14.3

)

$

(36.8

)

Net Income (Loss) Per Share

$

(0.01

)

$

(0.05

)

$

(1.13

)

$

(0.06

)

$

(0.18

)

Adjusted Net Income (Loss)1

$

2.6

$

(0.9

)

$

(3.3

)

$

(5.3

)

$

(23.0

)

Adjusted Net Income (Loss)1 Per Share

$

0.01

$

—

$

(0.01

)

$

(0.02

)

$

(0.11

)

Weighted Average Shares Outstanding

240.9

240.3

238.7

225.9

207.8

EBITDA1

$

35.3

$

25.5

$

(214.5

)

$

37.6

$

7.7

Adjusted EBITDA1

$

42.2

$

46.5

$

59.8

$

61.0

$

30.6

Cash Flow from Operating Activities

$

9.9

$

(8.0

)

$

39.3

$

42.0

$

26.4

Capital Expenditures

$

16.7

$

22.2

$

21.0

$

30.7

$

20.7

Free Cash Flow1

$

(6.7

)

$

(30.2

)

$

18.4

$

11.3

$

5.7

Cash, Equivalents & Short-Term Investments

$

70.9

$

52.9

$

55.6

$

65.3

$

37.9

Total Debt5

$

348.6

$

343.1

$

295.5

$

298.7

$

370.0

Average Realized Price Per Ounce – Gold

$

1,641

$

1,490

$

1,407

$

1,413

$

1,277

Average Realized Price Per Ounce – Silver

$

16.25

$

16.63

$

16.99

$

17.17

$

14.75

Average Realized Price Per Pound – Zinc

$

—

$

(0.21

)

$

0.62

$

0.50

$

0.49

Average Realized Price Per Pound – Lead

$

—

$

0.54

$

0.78

$

0.92

$

0.82

Gold Ounces Produced

78,229

85,077

94,716

99,782

86,584

Silver Ounces Produced

1.6

2.7

3.1

3.0

3.1

Zinc Pounds Produced

—

2.5

3.9

4.2

5.3

Lead Pounds Produced

—

2.2

4.0

4.5

5.0

Gold Ounces Sold

77,933

85,635

95,532

100,407

86,385

Silver Ounces Sold

1.6

2.7

3.3

3.0

3.0

Zinc Pounds Sold

—

3.2

4.1

4.1

5.3

Lead Pounds Sold

—

2.5

4.3

4.3

5.2

Financial Results

Second quarter 2020 revenue totaled $154.2 million compared to $173.2 million in the prior period, primarily driven by the temporary suspension at Palmarejo. The Company produced 78,229 ounces of gold and 1.6 million ounces of silver during the second quarter, selling 77,933 ounces of gold and 1.6 million ounces of silver. Average realized gold and silver prices for the quarter were $1,641 and $16.25 per ounce, respectively, or 10% higher and 2% lower quarter-over-quarter.

Gold and silver sales accounted for 83% and 17% of second quarter revenue, respectively. The Company’s U.S. operations accounted for approximately 75% of second quarter revenue, up from approximately 56% in the prior period, due primarily to the temporary suspension at Palmarejo.

Costs applicable to sales4 of $90.0 million were 24% lower quarter-over-quarter, reflecting a full quarter of suspended operations at Silvertip and compliance with the government-mandated temporary suspension at Palmarejo. Second quarter general and administrative expenses decreased modestly to $8.6 million, primarily driven by lower employee-related expenses and outside service fees.

Second quarter exploration expense totaled $11.9 million, or 86% higher quarter-over-quarter, reflecting the ramp-up of seasonal drilling programs at Rochester, Wharf and Silvertip. See the “Operations” section and page 14 for additional details on the Company’s exploration activities.

Operating costs related to COVID-19 totaled $6.1 million during the second quarter, compared to $0.3 million in the prior period, primarily related to higher employee-related expenses incurred at Palmarejo and Kensington. These costs are included in “Pre-development, reclamation, and other expenses” on the Company’s income statement.

Coeur recorded an income tax expense of $2.8 million during the second quarter. Cash income and mining taxes paid during the quarter totaled approximately $5.9 million.

Quarterly operating cash flow improved to $9.9 million, compared to $(8.0) million in the prior period, reflecting improved cash flow from most operations and working capital changes quarter-over-quarter. The Company satisfied the remaining $8.0 million obligation under its prepayment agreement at Kensington and exercised an option to receive an additional $15.0 million prepayment, resulting in a net cash inflow of approximately $7.0 million in the second quarter. Changes in working capital during the quarter totaled $(6.5) million, compared to $(38.1) million in the first quarter of 2020.

Second quarter capital expenditures were $16.7 million, compared to $22.2 million in the prior period, reflecting lower investment across most of the Company’s operations. Sustaining and development capital expenditures accounted for approximately 71% and 29%, respectively, of the Company’s capital expenditures during the quarter.

Liquidity Update

Prudent balance sheet management remains a key element of Coeur’s strategy. The Company used cash on hand to repay $90.0 million of outstanding indebtedness under its RCF, reducing the total amount drawn from $150.0 million in April 2020 to $60.0 million at the end of the second quarter. Coeur also opportunistically monetized a portion of its holding in Metalla Royalty & Streaming Ltd., resulting in net proceeds of approximately $19.4 million.

At June 30, 2020, cash and cash equivalents totaled $70.9 million, while total debt5 outstanding was $348.6 million. Additionally, the Company’s issued and outstanding share count remained consistent at 240.9 million in the second quarter.

Hedging Update

Coeur continued to add to its hedge position by executing additional ZCC hedges on a portion of its expected gold production. The 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.

The Company implemented the program in preparation for POA 11 at Rochester, which it expects to fund with a combination of cash on hand, internally generated cash flow and existing debt capacity. Coeur has completed its gold hedging program for 2021 and will look to continue opportunistically executing ZCC hedges on up to 50% of expected gold production in 2022. The Company’s silver price exposure is currently unhedged. An overview of the hedges currently implemented is outlined below:

3Q 2020

4Q 2020

Total 2H 2020

2021

2022

Gold Ounces Hedged

49,500

55,500

105,000

158,700

126,000

Avg. Ceiling ($/oz)

$1,826

$1,823

$1,825

$1,875

$2,030

Avg. Floor ($/oz)

$1,441

$1,471

$1,457

$1,600

$1,626

Rochester Expansion

Coeur completed its internal review of the business case supporting POA 11 during the second quarter, resulting in the approval to proceed with construction of the expansion project. The Company also received its revised water pollution control permit, authorizing mining, milling and mineral beneficiation for POA 11. The expansion project includes the construction of a new leach pad, crushing facility equipped with two high-pressure grinding roll (“HPGR”) units and Merrill-Crowe process plant as well as related infrastructure to support the extension of Rochester’s mine life.

Together with SNC-Lavalin, the Company’s engineering, procurement and project management contractor for POA 11, Coeur has made significant progress on detailed design work. The Company expects to complete the work necessary to finalize its total capital estimate by the end of the third quarter of 2020. Coeur also plans to file an updated technical report in late 2020 further outlining the details of the expansion, including an updated mine plan and drilling results as well as additional operational and financial information regarding the expected impacts of HPGR technology.

Coeur expects to begin construction activities for POA 11 in early August 2020, including (i) advancing early-stage earthworks and (ii) establishing project-specific infrastructure, providing the Company additional flexibility on the back end of its project schedule. Major construction projects are expected to begin in early 2021 and be largely completed by late 2022. The current timeline for the key elements of the expansion is highlighted below:

Expected Start Date

Target Completion Date

Leach Pad (Incl. Ancillary Facilities)

2H 2020

Mid-2022

Merrill-Crowe Process Plant

1H 2021

YE 2022

Crushing Circuit

1H 2021

YE 2022

Supporting Infrastructure

2H 2020

Mid-2022

Operations

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

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Tons milled

269,641

479,562

486,779

442,464

447,727

Average gold grade (oz/t)

0.07

0.07

0.07

0.09

0.07

Average silver grade (oz/t)

4.46

4.69

5.11

4.88

4.74

Average recovery rate – Au

86.0%

91.6%

84.9%

81.7%

87.7%

Average recovery rate – Ag

72.2%

81.5%

81.7%

79.6%

81.8%

Gold ounces produced

15,223

31,578

28,702

31,779

28,246

Silver ounces produced (000’s)

867

1,835

2,029

1,720

1,735

Gold ounces sold

16,924

31,287

27,952

32,731

28,027

Silver ounces sold (000’s)

875

1,895

1,980

1,747

1,709

Average realized price per gold ounce

$1,399

$1,331

$1,238

$1,269

$1,210

Average realized price per silver ounce

$16.35

$17.25

$17.28

$17.05

$14.86

Metal sales

$38.0

$74.3

$68.9

$71.3

$59.3

Costs applicable to sales4

$18.8

$36.0

$34.8

$37.4

$36.5

Adjusted CAS per AuOz1

$686

$645

$622

$660

$741

Adjusted CAS per AgOz1

$8.13

$8.37

$8.79

$8.95

$9.17

Exploration expense

$0.9

$1.5

$2.0

$1.6

$1.1

Cash flow from operating activities

$(3.5)

$28.9

$41.4

$36.3

$15.6

Sustaining capital expenditures (excludes capital lease payments)

$4.5

$7.1

$6.2

$4.7

$5.0

Development capital expenditures

$—

$—

$2.4

$3.1

$2.6

Total capital expenditures

$4.5

$7.1

$8.6

$7.8

$7.6

Free cash flow1

$(8.0)

$21.8

$32.8

$28.5

$8.0

Operational

Financial

Exploration

Other

Guidance

Rochester, Nevada

(Dollars in millions, except per ounce amounts)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Ore tons placed

3,743,331

3,428,578

2,612,319

2,516,353

2,786,287

Average silver grade (oz/t)

0.51

0.57

0.47

0.43

0.45

Average gold grade (oz/t)

0.002

0.002

0.003

0.004

0.003

Silver ounces produced (000’s)

728

687

848

982

971

Gold ounces produced

5,159

5,936

10,634

7,901

8,609

Silver ounces sold (000’s)

724

632

932

951

962

Gold ounces sold

5,278

5,473

11,248

7,651

8,642

Average realized price per silver ounce

$16.11

$16.99

$17.22

$17.02

$14.83

Average realized price per gold ounce

$1,702

$1,583

$1,484

$1,476

$1,295

Metal sales

$20.6

$19.4

$32.6

$27.5

$25.5

Costs applicable to sales4

$18.3

$17.0

$25.3

$27.7

$24.7

Adjusted CAS per AgOz1

$13.75

$14.38

$13.25

$14.24

$13.19

Adjusted CAS per AuOz1

$1,481

$1,359

$1,142

$1,230

$1,153

Exploration expense

$1.8

$0.2

$0.4

$0.1

$0.1

Cash flow from operating activities

$(5.6)

$(9.3)

$6.9

$8.3

$1.6

Sustaining capital expenditures (excludes capital lease payments)

$1.5

$0.1

$0.9

$(1.0)

$0.4

Development capital expenditures

$4.3

$5.0

$4.1

$11.2

$2.4

Total capital expenditures

$5.8

$5.1

$5.0

$10.2

$2.8

Free cash flow1

$(11.4)

$(14.4)

$1.9

$(1.9)

$(1.2)

Operational

Financial

Exploration

Other

Guidance

Kensington, Alaska

(Dollars in millions, except per ounce amounts)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Tons milled

170,478

162,341

167,061

166,475

160,510

Average gold grade (oz/t)

0.21

0.21

0.20

0.22

0.23

Average recovery rate

92.0%

93.5%

87.2%

93.2%

93.0%

Gold ounces produced

33,058

32,022

29,736

34,156

34,049

Gold ounces sold

32,367

32,781

29,293

35,452

34,415

Average realized price per gold ounce, gross

$1,762

$1,603

$1,493

$1,505

$1,332

Treatment and refining charges per gold ounce

$57

$27

$24

$20

$20

Average realized price per gold ounce, net

$1,705

$1,576

$1,469

$1,485

$1,312

Metal sales

$55.2

$51.7

$43.0

$52.6

$45.2

Costs applicable to sales4

$30.4

$30.5

$28.8

$29.5

$29.1

Adjusted CAS per AuOz1

$934

$928

$976

$822

$842

Prepayment, working capital cash flow

$7.0

$(7.0)

$4.7

$(14.7)

$25.0

Exploration expense

$2.6

$1.8

$1.6

$1.5

$2.0

Cash flow from operating activities

$27.8

$11.9

$19.9

$4.5

$41.4

Sustaining capital expenditures (excludes capital lease payments)

$3.9

$4.8

$4.3

$4.9

$4.9

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$3.9

$4.8

$4.3

$4.9

$4.9

Free cash flow1

$23.9

$7.1

$15.6

$(0.4)

$36.5

Operational

Financial

Exploration

Other

Guidance

Wharf, South Dakota

(Dollars in millions, except per ounce amounts)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Ore tons placed

1,401,237

946,449

1,100,393

1,503,021

919,435

Average gold grade (oz/t)

0.032

0.025

0.023

0.027

0.023

Gold ounces produced

24,789

15,541

25,644

25,946

15,680

Silver ounces produced (000’s)

25

15

20

18

12

Gold ounces sold

23,364

16,094

27,039

24,573

15,301

Silver ounces sold (000’s)

23

15

21

17

12

Average realized price per gold ounce

$1,715

$1,592

$1,482

$1,481

$1,311

Metal sales

$40.5

$25.9

$40.5

$36.7

$20.2

Costs applicable to sales4

$22.5

$17.8

$25.7

$22.1

$15.5

Adjusted CAS per AuOz1

$804

$1,090

$802

$887

$1,002

Exploration expense

$0.1

$—

$0.2

$0.1

$—

Cash flow from operating activities

$19.1

$2.6

$17.0

$17.6

$0.5

Sustaining capital expenditures (excludes capital lease payments)

$0.3

$0.4

$0.8

$0.8

$0.2

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$0.3

$0.4

$0.8

$0.8

$0.2

Free cash flow1

$18.8

$2.2

$16.2

$16.8

$0.3

Operational

Financial

Exploration

Other

Guidance

Silvertip, British Columbia

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

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Silver ounces produced (000's)

—

139

279

300

344

Zinc pounds produced (000's)

—

2,460

3,865

4,197

5,322

Lead pounds produced (000's)

—

2,177

4,021

4,478

4,980

Silver ounces sold (000's)

—

159

294

290

365

Zinc pounds sold (000's)

—

3,203

4,053

4,076

5,303

Lead pounds sold (000's)

—

2,453

4,223

4,331

5,186

Metal sales

$—

$1.9

$10.2

$11.3

$11.9

Costs applicable to sales4

$—

$17.7

$32.0

$24.2

$26.2

Exploration expense

$2.9

$0.3

$0.9

$0.8

$0.7

Cash flow from operating activities

$(14.9)

$(27.1)

$(28.6)

$(15.3)

$(11.6)

Sustaining capital expenditures (excludes capital lease payments)

$1.9

$4.6

$2.0

$6.4

$5.0

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$1.9

$4.6

$2.0

$6.4

$5.0

Free cash flow1

$(16.8)

$(31.7)

$(30.6)

$(21.7)

$(16.6)

Operational

Financial

Exploration

Other

Guidance

Exploration

During the second quarter, the Company drilled 194,043 feet (59,145 meters) at a total investment of approximately $13.0 million ($11.9 million expensed and $1.1 million capitalized), compared to 149,215 feet (45,481 meters) at a total investment of roughly $8.1 million ($6.4 million expensed and $1.7 million capitalized) in the prior period. Total feet drilled in the second quarter was approximately 30% higher compared to the prior quarter and 28% higher than the second quarter of 2019. The increase in drilling activity was due primarily to the ramp up of seasonal drill programs at Rochester, Wharf and Silvertip.

Additionally, up to three drill rigs were active during the second quarter at the Sterling and Crown exploration properties in southern Nevada. The Company drilled a total of 40,347 feet (12,298 meters) during the quarter, compared to 48,090 feet (14,658 meters) in the prior period. During the quarter, one core rig focused on drilling for metallurgical and engineering studies at Sterling, while 25 reverse circulation holes focusing on resource expansion were drilled at both Sterling and Crown. The Company expects to receive its larger 300-acre disturbance permit for the Crown Block in the third quarter and plans to shift its focus for the remainder of the year to both core and reverse circulation drilling in the area.

The Company expects to invest $44 - $54 million in exploration in 2020, including $37 - $43 million and $7 - $11 million of expensed and capitalized exploration, respectively. Coeur plans to publish an exploration update in August 2020, highlighting the progress of its various drilling campaigns through the first half of the year.

2020 Production Guidance

Gold

Silver

(oz)

(K oz)

Palmarejo

95,000 - 105,000

6,000 - 7,000

Rochester

27,000 - 33,000

3,500 - 4,500

Kensington

125,000 - 135,000

—

Wharf

80,000 - 90,000

—

Total

327,000 - 363,000

9,500 - 11,500

2020 Costs Applicable to Sales Guidance

Gold

Silver

($/oz)

($/oz)

Palmarejo (co-product)

$785 - $885

$9.50 - $10.50

Rochester (co-product)

$1,250 - $1,400

$12.75 - $14.00

Kensington

$900 - $1,000

—

Wharf (by-product)

$950 - $1,000

—

2020 Capital, Exploration and G&A Guidance

($M)

Capital Expenditures, Sustaining

$70 - $85

Capital Expenditures, Development

$40 - $45

Exploration, Expensed

$37 - $43

Exploration, Capitalized

$7 - $11

General & Administrative Expenses

$32 - $36

Note: The Company’s guidance figures assume $1,650/oz gold and $16.50/oz silver as well as CAD of 1.36 and MXN of 21.00.

Financial Results and Conference Call

Coeur will host a conference call to discuss its second quarter 2020 financial results on July 30, 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, Michael “Mick” Routledge, Senior Vice President and Chief Operating Officer, and other members of management. A replay of the call will be available through August 13, 2020.

Replay numbers:

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

(855) 669-9658 (Canada)

(412) 317-0088 (International)

Conference ID:

101 44 955

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, POA 11 expansion project and technical report preparation at Rochester, including expected annual free cash flow after completion of POA 11, hedging strategies, priorities, returns, growth, debt repayment plans, staffing levels, permitting, cash flow, cash on hand, catalysts, anticipated production, costs and expenses, 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, cost and expense 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), operating cash flow excluding changes in working capital 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 June 30, 2020.

Notes

  1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow excluding changes in working capital 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. Includes net cash inflow of $7.0 million related to Coeur’s prepayment agreement at Kensington.
  3. Includes net cash outflow of $7.0 million related to Coeur’s prepayment agreement at Kensington.
  4. Excludes amortization.
  5. Includes capital leases. Net of debt issuance costs and premium received.
  6. Calculation excludes six days related to an extended planned shutdown during May 2020.

Average Spot Prices

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Average Gold Spot Price Per Ounce

$

1,711

$

1,583

$

1,481

$

1,472

$

1,309

Average Silver Spot Price Per Ounce

$

16.38

$

16.90

$

17.32

$

16.98

$

14.88

Average Zinc Spot Price Per Pound

$

0.89

$

0.96

$

1.08

$

1.07

$

1.25

Average Lead Spot Price Per Pound

$

0.76

$

0.84

$

0.93

$

0.92

$

0.85

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30, 2020

December 31, 2019

ASSETS

In thousands, except share data

CURRENT ASSETS

Cash and cash equivalents

$

70,924

$

55,645

Receivables

21,986

18,666

Inventory

52,752

55,886

Ore on leach pads

75,111

66,192

Prepaid expenses and other

18,730

14,047

239,503

210,436

NON-CURRENT ASSETS

Property, plant and equipment, net

234,133

248,789

Mining properties, net

704,580

711,955

Ore on leach pads

78,605

71,539

Restricted assets

8,636

8,752

Equity and debt securities

15,086

35,646

Receivables

22,978

28,709

Other

57,559

62,810

TOTAL ASSETS

$

1,361,080

$

1,378,636

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

$

58,241

$

69,176

Accrued liabilities and other

68,457

95,616

Debt

27,176

22,746

Reclamation

3,094

3,114

156,968

190,652

NON-CURRENT LIABILITIES

Debt

321,443

272,751

Reclamation

137,715

133,417

Deferred tax liabilities

35,266

41,976

Other long-term liabilities

55,831

72,836

550,255

520,980

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY

Common stock, par value $0.01 per share; authorized 300,000,000 shares, 243,731,885 issued and outstanding at June 30, 2020 and 241,529,021 at December 31, 2019

2,437

2,415

Additional paid-in capital

3,605,982

3,598,472

Accumulated other comprehensive income (loss)

(7,706

)

(136

)

Accumulated deficit

(2,946,856

)

(2,933,747

)

653,857

667,004

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,361,080

$

1,378,636

COEUR MINING, INC. AND SUBSIDIARIES

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

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Revenue

$

154,249

$

162,123

$

327,416

$

316,993

COSTS AND EXPENSES

Costs applicable to sales(1)

90,015

131,948

208,932

263,598

Amortization

27,876

43,204

64,038

85,080

General and administrative

8,616

7,750

17,536

17,224

Exploration

11,855

5,719

18,241

9,433

Pre-development, reclamation, and other

18,675

4,334

25,230

8,768

Total costs and expenses

157,037

192,955

333,977

384,103

OTHER INCOME (EXPENSE), NET

Fair value adjustments, net

10,067

(5,296

)

1,248

3,824

Interest expense, net of capitalized interest

(5,765

)

(6,825

)

(10,893

)

(13,279

)

Other, net

121

643

2,002

703

Total other income (expense), net

4,423

(11,478

)

(7,643

)

(8,752

)

Income (loss) before income and mining taxes

1,635

(42,310

)

(14,204

)

(75,862

)

Income and mining tax (expense) benefit

(2,844

)

5,546

1,095

14,204

Income (loss) from continuing operations

$

(1,209

)

$

(36,764

)

$

(13,109

)

$

(61,658

)

Income (loss) from discontinued operations

—

—

—

5,693

NET INCOME (LOSS)

$

(1,209

)

$

(36,764

)

$

(13,109

)

$

(55,965

)

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Change in fair value of derivative contracts designated as cash flow hedges

(7,776

)

—

(7,570

)

—

Unrealized gain (loss) on debt and equity securities

—

—

—

59

Other comprehensive income (loss)

(7,776

)

—

(7,570

)

59

COMPREHENSIVE INCOME (LOSS)

$

(8,985

)

$

(36,764

)

$

(20,679

)

$

(55,906

)

NET INCOME (LOSS) PER SHARE

Basic income (loss) per share:

Net income (loss) from continuing operations

$

(0.01

)

$

(0.18

)

$

(0.05

)

$

(0.30

)

Net income (loss) from discontinued operations

—

—

—

0.03

Basic(2)

$

(0.01

)

$

(0.18

)

$

(0.05

)

$

(0.27

)

Diluted income (loss) per share:

Net income (loss) from continuing operations

$

(0.01

)

$

(0.18

)

$

(0.05

)

$

(0.30

)

Net income (loss) from discontinued operations

—

—

—

0.03

Diluted(2)

$

(0.01

)

$

(0.18

)

$

(0.05

)

$

(0.27

)

(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 June 30,

Six Months Ended June 30,

2020

2019

2020

2019

In thousands

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

(1,209

)

$

(36,764

)

(13,109

)

(55,965

)

(Income) loss from discontinued operations

—

—

—

(5,693

)

Adjustments:

Amortization

27,876

43,204

64,038

85,080

Accretion

2,908

3,007

5,755

5,950

Deferred taxes

(1,545

)

(9,158

)

(7,032

)

(17,417

)

Fair value adjustments, net

(10,067

)

5,296

(1,248

)

(3,824

)

Stock-based compensation

2,287

1,987

4,300

4,210

Gain on modification of right of use lease

—

—

(4,051

)

—

Write-downs

5,208

11,872

15,589

27,319

Deferred revenue recognition

(8,134

)

—

(15,682

)

—

Other

(913

)

4,731

(2,005

)

5,981

Changes in operating assets and liabilities:

Receivables

(1,536

)

(7,624

)

(2,349

)

(17,359

)

Prepaid expenses and other current assets

1,081

(834

)

735

(3,518

)

Inventory and ore on leach pads

(8,056

)

(14,391

)

(29,981

)

(33,212

)

Accounts payable and accrued liabilities

2,047

25,109

(13,004

)

19,037

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

9,947

26,435

1,956

10,589

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

—

—

—

—

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

9,947

26,435

1,956

10,589

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(16,682

)

(20,749

)

(38,890

)

(48,187

)

Proceeds from the sale of assets

9

57

4,515

904

Sale of investments

19,802

1,102

19,802

1,102

Proceeds from notes receivable

—

2,000

—

7,168

Other

(183

)

277

(200

)

2,018

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

2,946

(17,313

)

(14,773

)

(36,995

)

CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS

—

—

—

—

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

2,946

(17,313

)

(14,773

)

(36,995

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock

—

48,887

—

48,887

Issuance of notes and bank borrowings, net of issuance costs

100,000

—

150,000

15,000

Payments on debt, finance leases, and associated costs

(95,713

)

(90,812

)

(101,614

)

(113,273

)

Silvertip contingent consideration

—

—

(18,750

)

—

Other

141

—

(1,832

)

(3,259

)

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

4,428

(41,925

)

27,804

(52,645

)

CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS

—

—

—

—

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

4,428

(41,925

)

27,804

(52,645

)

Effect of exchange rate changes on cash and cash equivalents

929

56

303

257

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

18,250

(32,747

)

15,290

(78,794

)

Less net cash used in discontinued operations

—

—

—

—

18,250

(32,747

)

15,290

(78,794

)

Cash, cash equivalents and restricted cash at beginning of period

54,058

72,022

57,018

118,069

Cash, cash equivalents and restricted cash at end of period

$

72,308

$

39,275

$

72,308

$

39,275

Adjusted EBITDA Reconciliation

(Dollars in thousands except per share amounts)

LTM 2Q
2020

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Net income (loss)

$

(298,347

)

$

(1,209

)

$

(11,900

)

$

(270,961

)

$

(14,277

)

$

(36,764

)

Interest expense, net of capitalized interest

22,385

5,765

5,128

5,512

5,980

6,825

Income tax provision (benefit)

1,980

2,844

(3,939

)

2,857

218

(5,546

)

Amortization

157,834

27,876

36,162

48,118

45,678

43,204

EBITDA

(116,148

)

35,276

25,451

(214,474

)

37,599

7,719

Fair value adjustments, net

(13,454

)

(10,067

)

8,819

(7,829

)

(4,377

)

5,296

Foreign exchange (gain) loss

3,278

(11

)

76

268

2,945

468

Asset retirement obligation accretion

11,959

2,908

2,847

3,124

3,080

3,007

Inventory adjustments and write-downs

6,157

793

476

363

5,371

2,193

(Gain) loss on sale of assets and securities

311

(9

)

(374

)

594

100

72

Impairment of long-lived assets

250,814

—

—

250,814

—

—

Silvertip inventory write-down

49,776

2,104

10,381

23,325

13,966

11,872

Silvertip one-time costs

5,234

1,725

3,509

—

—

—

Silvertip lease modification

(4,051

)

—

(4,051

)

—

—

—

Silvertip gain on contingent consideration

(955

)

—

(955

)

—

—

—

COVID-19 one-time costs

6,380

6,108

272

—

—

—

Wharf inventory write-down

6,919

3,323

—

3,596

—

—

Loss on debt extinguishment

1,282

—

—

—

1,282

—

Receivable write-down

1,040

—

—

—

1,040

—

Interest income on notes receivables

—

—

—

—

—

(18

)

Adjusted EBITDA

$

208,542

$

42,150

$

46,451

$

59,781

$

61,006

$

30,609

Revenue

$

721,925

$

154,249

$

173,167

$

195,040

$

199,469

$

162,123

Adjusted EBITDA Margin

29

%

27

%

27

%

31

%

31

%

19

%

Adjusted Net Income (Loss) Reconciliation

(Dollars in thousands except per share amounts)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Net income (loss)

$

(1,209

)

$

(11,900

)

$

(270,961

)

$

(14,277

)

$

(36,764

)

Fair value adjustments, net

(10,067

)

8,819

(7,829

)

(4,377

)

5,296

Foreign exchange loss (gain)

626

(6,620

)

1,733

2,022

889

(Gain) loss on sale of assets and securities

(9

)

(374

)

594

100

72

Impairment of long-lived assets

—

—

250,814

—

—

Silvertip inventory write-down

2,104

10,381

23,325

13,966

11,872

Silvertip one-time costs

1,725

3,509

—

—

—

Silvertip lease modification

—

(4,051

)

—

—

—

Silvertip gain on contingent consideration

—

(955

)

—

—

—

COVID-19 one-time costs

6,108

272

—

—

—

Wharf inventory write-down

3,323

—

3,596

—

—

Loss on debt extinguishment

—

—

—

1,282

—

Receivable write-down

—

—

—

1,040

—

Interest income on notes receivables

—

—

—

—

(18

)

Tax effect of adjustments

—

—

(4,572

)

(5,096

)

(4,332

)

Adjusted net income (loss)

$

2,601

$

(919

)

$

(3,300

)

$

(5,340

)

$

(22,985

)

Adjusted net income (loss) per share - Basic

$

0.01

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.11

)

Adjusted net income (loss) per share - Diluted

$

0.01

$

0.00

$

(0.01

)

$

(0.02

)

$

(0.11

)

Consolidated Free Cash Flow Reconciliation

(Dollars in thousands)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Cash flow from continuing operations

$

9,947

$

(7,991

)

$

39,295

$

41,996

$

26,435

Capital expenditures from continuing operations

16,682

22,208

20,907

30,678

20,749

Free cash flow

$

(6,735

)

$

(30,199

)

$

18,388

$

11,318

$

5,686

Consolidated Operating Cash Flow

Before Working Capital Changes Reconciliation

(Dollars in thousands)

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Cash provided by (used in) continuing operating activities

$

9,947

$

(7,991

)

$

39,295

$

41,996

$

26,435

Changes in operating assets and liabilities:

Receivables

1,536

813

(17,970

)

3,350

7,624

Prepaid expenses and other

(1,081

)

346

(2,423

)

(1,375

)

834

Inventories

8,056

21,925

20,397

9,389

14,391

Accounts payable and accrued liabilities

(2,047

)

15,051

18,318

(22,384

)

(25,109

)

Cash flow before changes in operating assets and liabilities

$

16,411

$

30,144

$

57,617

$

30,976

$

24,175

Reconciliation of Costs Applicable to Sales

for Three Months Ended June 30, 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)

$

26,095

$

21,348

$

43,235

$

25,653

$

1,231

$

117,562

Amortization

(7,270

)

(3,012

)

(12,853

)

(3,181

)

(1,231

)

(27,547

)

Costs applicable to sales

$

18,825

$

18,336

$

30,382

$

22,472

$

—

$

90,015

Inventory Adjustments

(106

)

(566

)

(139

)

(3,304

)

—

(4,115

)

By-product credit

—

—

—

(385

)

—

(385

)

Adjusted costs applicable to sales

$

18,719

$

17,770

$

30,243

$

18,783

$

—

$

85,515

Metal Sales

Gold ounces

16,924

5,278

32,367

23,364

77,933

Silver ounces

874,642

723,679

22,707

—

1,621,028

Zinc pounds

—

—

Lead pounds

—

—

Revenue Split

Gold

62

%

44

%

100

%

100

%

Silver

38

%

56

%

—

%

Zinc

—

%

Lead

—

%

Adjusted costs applicable to sales

Gold ($/oz)

$

686

$

1,481

$

934

$

804

Silver ($/oz)

$

8.13

$

13.75

$

—

Zinc ($/lb)

$

—

Lead ($/lb)

$

—

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 2020 Guidance

In thousands except per ounce amounts

Palmarejo

Rochester

Kensington

Wharf

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

$

178,977

$

105,053

$

178,595

$

94,142

Amortization

(42,220

)

(15,177

)

(54,009

)

(11,202

)

Costs applicable to sales

$

136,757

$

89,876

$

124,586

$

82,940

By-product credit

—

—

—

(998

)

Adjusted costs applicable to sales

$

136,757

$

89,876

$

124,586

$

81,942

Metal Sales

Gold ounces

97,800

32,000

132,800

84,900

Silver ounces

6,300,000

3,800,000

60,350

Revenue Split

Gold

56%

46%

100%

100%

Silver

44%

54%

—

—

Adjusted costs applicable to sales

Gold ($/oz)

$785 - $885

$1,250 - $1,400

$900 - $1,000

$950 - $1,000

Silver ($/oz)

$9.50 - $10.50

$12.75 - $14.00

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.

Categories

Business Wire Press Releases

Next Articles