NEWS RELEASE
Coeur Reports
Third Quarter 2015 Results
15% Drop in
Adjusted Costs Applicable to Sales and 17% Decline in All-in
Sustaining Costs per Silver Equivalent Ounce Compared to 3Q
2014
Raising Full-Year
Production Guidance Range and Reducing Full-Year Cost Guidance
Range
Chicago,
Illinois - November 2, 2015 - Coeur Mining, Inc. (the "Company"
or "Coeur") (NYSE: CDE) reported third quarter 2015 revenue of
$162.6 million, adjusted EBITDA1 of $31.4
million, adjusted net loss1 of $0.16 per
share, and cash flow from operating activities of $36.2 million.
The Company sold 9.5 million silver equivalent1 ounces
during the third quarter, comprised of 91,118 ounces of gold and
4.0 million ounces of silver.
Adjusted costs applicable to sales
per silver equivalent ounce1 of $12.07
declined 4% from the second quarter and dropped 15% compared to the
same quarter last year (equivalence calculated based on a 60:1
ratio). Adjusted costs applicable to sales were $11.00 per
silver equivalent ounce using average realized prices to calculate
equivalent ounces.
Adjusted all-in sustaining costs
declined 9% from the second quarter and dropped 17% compared to the
same quarter last year to $15.17 per silver equivalent
ounce1 (equivalence
calculated based on a 60:1 ratio). Adjusted all-in sustaining costs
were $13.14 per silver equivalent ounce1 using average
realized prices to calculate equivalent ounces.
"Our third quarter results provide
further evidence that our strategic initiatives are dramatically
reshaping the Company," said Mitchell J. Krebs, Coeur's President
and Chief Executive Officer.
"At Palmarejo, underground mining
rates from the higher-grade Guadalupe deposit averaged over 1,700
tons per day during the third quarter and the next target is 2,000
tons per day by the end of the year. Efforts to develop the
newly-acquired Independencia underground deposit located
approximately 800 meters from Guadalupe remain on-track to reach
the ore body by the end of 2015. Mining from Independencia is
expected to begin in the first quarter of 2016 and will become a
second source of high-grade ore along with Guadalupe. As expected,
we intersected high-grade mineralization while driving the tunnel
from Guadalupe to Independencia, which has the potential to become
a new source of high-grade ore.
"Along with several
process-related improvements that have been implemented, the
metallurgical characteristics of the ore from Guadalupe are
resulting in significantly higher recovery rates for both silver
and gold. We filed a new NI 43-101 technical report for Palmarejo
today, which reflects the mine's ongoing transition to underground
mining and incorporates Independencia for the first time since
closing the acquisition of Paramount Gold and Silver Corp. in
April. Also included in the technical report are updated reserves
for Palmarejo based on new silver and gold price assumptions, which
provides the basis for a robust mine plan for the next seven years.
The significant amount of resources and the opportunity to add
further reserves and resources through our ongoing drilling
activities makes us optimistic about the potential to further
extend and enhance Palmarejo's operating and financial profile.
"Plans to further expand our
Rochester mine in Nevada remain on-track and recent efforts to
capture the efficiencies of larger scale mining are clearly paying
off. Production levels this year are expected to be 15% - 30%
higher than last year while unit costs are expected to be 10% -15%
lower than 2014. We have now completed work to expand a crusher
facility that is expected to allow us to sustain mining and
crushing rates of over 16 million tons per year and capture
additional volume-related efficiencies. Permitting efforts for the
next leach pad remain on schedule. The public comment period
concluded in early October and we will now complete the final EIS
by year-end and expect to receive the Record of Decision during the
first half of 2016. Construction of the next leach pad is scheduled
for 2017.
"At Kensington, the decline down
to the high-grade Jualin deposit kicked off in early August and has
now advanced approximately 700 feet. Currently, Jualin is estimated
to contain approximately 289,000 tons of inferred resources with an
average grade of 0.62 ounces per ton, which is over triple
Kensington's average reserve grade. Once we gain better access from
underground, we will begin to more efficiently drill Jualin to
better define and hopefully expand this new high-grade discovery
before mining begins in 2017.
"Since closing on the acquisition
of the Wharf gold mine in South Dakota in February for $99.8
million, we announced a 39% increase in the total reserve and are
now seeing production levels rise and costs drop significantly.
During the third quarter, Wharf's costs per ounce dropped 26%
compared to the second quarter to $716 per gold equivalent
ounce1, leading to
over $12 million of free cash flow from our newest operation.
"Since the end of the third
quarter, we took advantage of an opportunity to eliminate 10% of
total outstanding debt at a 24% discount to par value by agreeing
to exchange an estimated 14.4 million shares of common stock for
approximately $54 million of our 7.875% Notes due 2021. Adjusting
for this lower level of debt, our net debt is expected to be $287
million and our net debt to LTM EBITDA ratio is expected to drop
16% to 3.2x. Cash at the end of the third quarter stood at $206
million, virtually unchanged from the end of the second quarter,
despite significantly lower silver and gold prices. We believe that
by meaningfully reducing debt and sustaining our liquidity levels
in the face of lower prices, we are proactively addressing two
areas of perceived risk facing the equity value of the
Company."
Third Quarter 2015
Highlights
-
Silver production was 3.8 million ounces and
gold production was 85,769 ounces, or 9.0 million silver
equivalent1 ounces, as
previously announced on October 6, 2015
-
Silver sales were 4.0 million ounces and gold
production was 91,118 ounces, or 9.5 million silver
equivalent1 ounces, up 5%
from the second quarter
-
Adjusted costs applicable to sales were $12.07
and adjusted all-in sustaining costs were $15.17 per silver
equivalent ounce1, the lowest
levels since Coeur began reporting these metrics in 2013
-
Adjusted costs applicable to sales per silver
equivalent ounce1 at Palmarejo
declined 14% from the second quarter to $11.40
-
Adjusted costs applicable to sales per gold
equivalent ounce1 at Wharf
dropped 26% from the second quarter to $716
-
Cash, cash equivalents, and short-term
investments were $205.7 million at September 30
Full Year 2015
Outlook
For the second time this year, Coeur is raising its 2015 total
production guidance to 33.7 - 36.4 million silver equivalent
ounces, consisting of 15.2 - 16.1 million silver ounces and 309,000
- 338,000 gold ounces due to the strong production performance at
Palmarejo. These ranges compare to 33.1 - 35.9 million silver
equivalent ounces, or 14.7 - 15.8 million silver ounces and 306,000
- 335,000 gold ounces, previously. Coeur is also lowering its
guidance for all-in sustaining costs per silver equivalent
ounce1 from $17.00 -
$18.00 to $16.50 - $17.00.
2015 Production
Outlook
(silver and silver
equivalent ounces in thousands) |
Silver |
Gold |
Total Silver Equivalent |
Palmarejo |
4,700 - 5,000 |
65,000 - 70,000 |
8,600 - 9,200 |
San Bartolomé |
5,300 - 5,500 |
- |
5,300 - 5,500 |
Rochester |
4,700 - 5,000 |
55,000 - 65,000 |
8,000 - 8,900 |
Endeavor |
500 - 600 |
- |
500 - 600 |
Kensington |
- |
115,000 - 125,000 |
6,900 - 7,500 |
Wharf |
- |
74,000 - 78,000 |
4,440 - 4,680 |
Total |
15,200 - 16,100 |
309,000 - 338,000 |
33,740 - 36,380 |
2015 Cost Outlook
(dollars in millions,
except per ounce amounts) |
New 2015 Guidance |
Old 2015 Guidance |
Costs Applicable to Sales per
Silver Equivalent Ounce1 -
Palmarejo |
$14.00 - $14.50 |
$15.00 - $16.00 |
Costs Applicable to Sales per Silver Ounce - San
Bartolomé |
$13.50 - $14.50 |
$13.50 - $15.00 |
Costs Applicable to Sales per
Silver Equivalent Ounce1 -
Rochester |
$12.25 - $12.75 |
$12.50 - $14.00 |
Costs Applicable to Sales per Gold Ounce -
Kensington |
$800 - $850 |
$850 - $900 |
Costs Applicable to Sales per Gold
Equivalent Ounce1 -
Wharf |
$700 - $750 |
$750 - $825 |
Capital Expenditures |
$95 - $105 |
$95 - $105 |
General and Administrative
Expenses |
$33 - $35 |
$36 - $39 |
Exploration Expense |
$13 - $16 |
$13 - $16 |
All-in Sustaining Costs per Silver
Equivalent Ounce1 |
$16.50 - $17.00 |
$17.00 - $18.00 |
Financial Highlights
(Unaudited)
(Amounts in millions, except per
share amounts, gold ounces produced & sold, and per-ounce
metrics) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Revenue |
$ |
162.6 |
|
$ |
166.3 |
|
$ |
153.0 |
|
$ |
140.6 |
|
$ |
170.9 |
|
Costs Applicable to Sales |
$ |
120.2 |
|
$ |
119.1 |
|
$ |
115.1 |
|
$ |
126.5 |
|
$ |
125.9 |
|
General and Administrative
Expenses |
$ |
6.7 |
|
$ |
8.5 |
|
$ |
8.8 |
|
$ |
9.0 |
|
$ |
8.5 |
|
Adjusted EBITDA1 |
$ |
31.4 |
|
$ |
34.7 |
|
$ |
23.7 |
|
$ |
7.8 |
|
$ |
30.7 |
|
Net Income (Loss) |
$ |
(14.2 |
) |
$ |
(16.7 |
) |
$ |
(33.3 |
) |
$ |
(1,079.1 |
) |
$ |
3.5 |
|
Net Income (Loss) Per Share |
$ |
(0.11 |
) |
$ |
(0.12 |
) |
$ |
(0.32 |
) |
$ |
(10.53 |
) |
$ |
0.03 |
|
Adjusted Net Income
(Loss)1 |
$ |
(21.8 |
) |
$ |
(14.5 |
) |
$ |
(22.7 |
) |
$ |
(37.5 |
) |
$ |
(18.5 |
) |
Adjusted Net Income (Loss)1 Per
Share |
$ |
(0.16 |
) |
$ |
(0.11 |
) |
$ |
(0.22 |
) |
$ |
(0.37 |
) |
$ |
(0.18 |
) |
Weighted Average Shares |
135.2 |
|
135.0 |
|
102.6 |
|
102.4 |
|
102.6 |
|
Cash Flow From Operating Activities |
$ |
36.2 |
|
$ |
36.9 |
|
$ |
(4.0 |
) |
$ |
0.7 |
|
$ |
31.3 |
|
Capital Expenditures |
$ |
23.9 |
|
$ |
23.7 |
|
$ |
17.6 |
|
$ |
20.1 |
|
$ |
16.8 |
|
Cash, Equivalents & Short-Term
Investments |
$ |
205.7 |
|
$ |
205.9 |
|
$ |
179.6 |
|
$ |
270.9 |
|
$ |
295.4 |
|
Total Debt2 |
$ |
546.0 |
|
$ |
547.7 |
|
$ |
513.5 |
|
$ |
468.5 |
|
$ |
469.5 |
|
Average Realized Price Per Ounce - Silver |
$ |
14.66 |
|
$ |
16.23 |
|
$ |
16.77 |
|
$ |
16.40 |
|
$ |
19.46 |
|
Average Realized Price Per
Ounce - Gold |
$ |
1,116 |
|
$ |
1,179 |
|
$ |
1,204 |
|
$ |
1,186 |
|
$ |
1,260 |
|
Silver Ounces Produced |
3.8 |
|
4.3 |
|
3.8 |
|
4.3 |
|
4.3 |
|
Gold Ounces Produced |
85,769 |
|
80,855 |
|
69,734 |
|
64,534 |
|
64,989 |
|
Silver Equivalent Ounces Produced1 |
9.0 |
|
9.1 |
|
8.0 |
|
8.3 |
|
8.2 |
|
Silver Ounces Sold |
4.0 |
|
4.0 |
|
4.1 |
|
4.6 |
|
4.3 |
|
Gold Ounces Sold |
91,118 |
|
84,312 |
|
68,420 |
|
52,785 |
|
69,541 |
|
Silver Equivalent Ounces
Sold1 |
9.5 |
9.1 |
|
8.2 |
7.9 |
8.4 |
Silver Equivalent Ounces Sold
(Realized)1 |
10.9 |
|
10.1 |
|
9.0 |
|
8.4 |
|
8.8 |
|
Adjusted Costs Applicable to Sales
per AgEq Oz1 |
$ |
12.07 |
|
$ |
12.56 |
|
$ |
13.71 |
|
$ |
14.43 |
|
$ |
14.19 |
|
Adjusted Costs Applicable to Sales per AgEq Oz
(Realized)1 |
$ |
11.00 |
|
$ |
11.75 |
|
$ |
12.90 |
|
$ |
13.67 |
|
$ |
13.85 |
|
Adjusted Costs Applicable to Sales
per AuEq Oz1 |
$ |
783 |
|
$ |
816 |
|
$ |
797 |
|
$ |
792 |
|
$ |
889 |
|
Adjusted All-in Sustaining Costs per AgEq
Oz1 |
$ |
15.17 |
|
$ |
16.60 |
|
$ |
17.66 |
|
$ |
19.25 |
|
$ |
18.27 |
|
Adjusted All-in Sustaining Costs
per AgEq Oz (Realized)1 |
$ |
13.14 |
|
$ |
14.81 |
|
$ |
16.05 |
|
$ |
18.04 |
|
$ |
17.57 |
|
Financial
Results
The Company realized average
silver and gold prices of $14.66 and $1,116 during the third
quarter, which were lower by 10% and 5%, respectively, compared to
the second quarter and were 25% and 11% lower, respectively,
compared to last year's third quarter.
Third quarter revenue decreased 2%
compared with the second quarter to $162.6 million due to lower
metal prices, partially offset by a 5% increase in silver
equivalent ounces sold. Silver contributed 37% of the Company's
metal sales and gold contributed 63% during the third quarter.
General and administrative
expenses decreased 21% to $6.7 million in the third quarter due to
further cost reduction measures. Capital expenditures were $23.9
million in the third quarter. For the first nine months of 2015,
general and administrative expenses were $24.0 million and capital
expenditures were $65.2 million. For the full year, general and
administrative expenses are expected to be $33 - $35 million and
capital expenditures are expected to be $95 - $105 million.
Third quarter adjusted
EBITDA1 was $31.4
million, a 10% decrease from the second quarter primarily due to
lower metal prices. Adjusted net loss1 was $21.8
million, or $0.16 per share, compared to a loss of $14.5 million,
or $0.11 per share, in the second quarter. The third quarter
adjusted net loss1 mainly
excludes inventory adjustments to net realizable value, foreign
exchange losses on deferred taxes, and fair value adjustments to
royalty obligations.
Operations
Highlights of third quarter 2015
results for each of the Company's operating segments are provided
below.
Palmarejo,
Mexico
(Dollars in millions, except per
ounce amounts) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Underground
Operations: |
|
|
|
|
|
Tons mined |
190,399 |
172,730 |
149,150 |
187,730 |
169,656 |
Average silver grade
(oz/t) |
4.11 |
3.90 |
4.34 |
4.49 |
4.88 |
Average gold grade (oz/t) |
0.10 |
0.09 |
0.07 |
0.06 |
0.10 |
Surface
Operations: |
|
|
|
|
|
Tons mined |
247,071 |
257,862 |
281,481 |
320,802 |
343,001 |
Average silver grade
(oz/t) |
3.56 |
3.47 |
3.79 |
2.90 |
3.09 |
Average gold grade (oz/t) |
0.03 |
0.03 |
0.04 |
0.03 |
0.03 |
Processing: |
|
|
|
|
|
Total tons milled |
427,635 |
435,841 |
451,918 |
510,813 |
518,212 |
Average recovery rate -
Ag |
87.9% |
78.5% |
78.7% |
80.2% |
82.7% |
Average recovery rate - Au |
84.7% |
76.2% |
73.9% |
78.7% |
86.9% |
Silver ounces produced
(000's) |
1,422 |
1,247 |
1,354 |
1,444 |
1,533 |
Gold ounces produced |
22,974 |
18,127 |
15,495 |
15,237 |
22,514 |
Silver equivalent ounces
produced1
(000's) |
2,800 |
2,335 |
2,284 |
2,358 |
2,884 |
Silver ounces sold (000's) |
1,425 |
1,228 |
1,330 |
1,375 |
1,605 |
Gold ounces sold |
25,000 |
15,706 |
13,793 |
16,255 |
23,600 |
Silver equivalent ounces sold1
(000's) |
2,925 |
2,170 |
2,158 |
2,350 |
3,021 |
Silver equivalent ounces
sold1 (realized)
(000's) |
3,325 |
2,374 |
2,323 |
2,545 |
3,139 |
Revenues |
$49.2 |
$38.9 |
$39.4 |
$42.2 |
$61.4 |
Costs applicable to sales |
$34.1 |
$30.1 |
$34.5 |
$48.1 |
$46.0 |
Adjusted costs applicable to sales per AgEq
ounce1 |
$11.40 |
$13.21 |
$14.56 |
$15.70 |
$14.43 |
Adjusted costs applicable to sales per
AgEq ounce (realized)1 |
$10.01 |
$12.07 |
$13.52 |
$14.49 |
$13.91 |
Exploration expense |
$1.1 |
$1.8 |
$1.1 |
$1.5 |
$2.6 |
Cash flow from operating
activities |
$22.9 |
$9.7 |
$(0.2) |
$(3.2) |
$20.2 |
Sustaining capital expenditures |
$1.1 |
$2.7 |
$3.1 |
$5.5 |
$1.9 |
Development capital
expenditures |
$9.4 |
$8.0 |
$6.1 |
$5.4 |
$4.0 |
Total capital expenditures |
$10.5 |
$10.7 |
$9.2 |
$10.9 |
$5.9 |
Free cash flow (before
royalties) |
$12.4 |
$(1.0) |
$(9.4) |
$(14.1) |
$14.3 |
Royalties paid |
$10.2 |
$9.8 |
$10.4 |
$10.0 |
$11.4 |
Free cash flow3 |
$2.2 |
$(10.8) |
$(19.8) |
$(24.1) |
$2.9 |
-
Adjusted costs applicable to sales per silver
equivalent ounce1 of $11.40
decreased 14% from the second quarter due to higher grades,
stronger recoveries, and a higher proportion of production from
underground. Compared to last year's third quarter, Adjusted costs
applicable to sales per silver equivalent ounce1
declined 21%
-
Free cash flow of $2.2 million reached the
highest level since the third quarter of 2014 when realized silver
and gold prices averaged $19.46 and $1,260, respectively
-
Palmarejo continues the transition to
underground mining at the Guadalupe mine and the Independencia mine
(expected beginning early 2016) while mining activities in the
historic zones gradually decline
-
Daily mining rates at Guadalupe averaged more
than 1,700 tons per day during the quarter, which triggered the
October receipt of the remaining $8 million deposit from an
affiliate of Franco-Nevada Corporation under the gold stream
agreement entered into in October 2014
-
Stronger recovery rates for silver and gold
resulted from reduced tailings losses due to tighter operational
controls around thickening, longer retention time due to lower
processing rates, and higher proportions of Guadalupe ore
-
Development of the twin declines to
Independencia are now approaching 700 meters each (approximately
70% complete) and is expected to reach the Independencia ore body
by the end of 2015
-
On November 2, an updated technical report was
filed reflecting average annual production of approximately six
million ounces of silver and 100,000 ounces of gold over the next
seven years. See press release issued November 2, 2015
-
Coeur is raising 2015 production guidance for
Palmarejo by 7% to 4.7 - 5.0 million ounces of silver and 65,000 -
70,000 ounces of gold. Coeur is also lowering 2015 cost guidance
from $15.00 - $16.00 to $14.00 - $14.50
Rochester,
Nevada
(Dollars in millions,
except per ounce amounts) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Ore tons placed |
4,128,868 |
3,859,965 |
4,013,879 |
3,876,944 |
3,892,421 |
Average silver grade (oz/t) |
0.59 |
0.61 |
0.74 |
0.60 |
0.51 |
Average gold grade (oz/t) |
0.003 |
0.003 |
0.004 |
0.004 |
0.005 |
Silver ounces produced (000's) |
1,086 |
1,294 |
1,144 |
1,170 |
1,156 |
Gold ounces produced |
10,892 |
16,411 |
13,721 |
15,764 |
11,702 |
Silver equivalent ounces
produced1
(000's) |
1,740 |
2,279 |
1,967 |
2,116 |
1,858 |
Silver ounces sold
(000's) |
1,304 |
1,120 |
1,351 |
1,154 |
1,067 |
Gold ounces sold |
13,537 |
15,085 |
17,754 |
14,131 |
8,932 |
Silver equivalent ounces
sold1
(000's) |
2,116 |
2,025 |
2,416 |
2,002 |
1,603 |
Silver equivalent ounces sold1
(realized) (000's) |
2,333 |
2,221 |
2,629 |
2,171 |
1,647 |
Revenues |
$34.6 |
$36.3 |
$44.0 |
$36.0 |
$32.4 |
Costs applicable to sales |
$25.4 |
$24.4 |
$31.4 |
$28.7 |
$23.7 |
Adjusted costs applicable to sales
per AgEq ounce1 |
$12.01 |
$12.01 |
$12.95 |
$13.82 |
$14.78 |
Adjusted costs applicable to sales per AgEq ounce
(realized)1 |
$10.89 |
$10.94 |
$11.91 |
$12.75 |
$14.39 |
Exploration expense |
$- |
$0.5 |
$0.7 |
$0.6 |
$0.1 |
Cash flow from operating activities |
$6.5 |
$8.8 |
$16.4 |
$10.2 |
$8.2 |
Sustaining capital
expenditures |
$1.8 |
$2.4 |
$0.8 |
$2.7 |
$4.2 |
Development capital expenditures |
$3.5 |
$3.5 |
$2.5 |
$- |
$- |
Total capital
expenditures |
$5.3 |
$5.9 |
$3.3 |
$2.7 |
$4.2 |
Free cash flow3 |
$1.2 |
$2.9 |
$13.1 |
$7.5 |
$4.0 |
-
Third quarter adjusted costs applicable to sales
per silver equivalent ounce1 were $12.01
for the second consecutive quarter, prompting Coeur to lower its
2015 guidance to $12.25 - $12.75 from $12.50 - $14.00. This
represents a 10% - 15% reduction from 2014
-
In 2015, Rochester is expected to produce 4.7 -
5.0 million ounces of silver and 55,000 - 65,000 ounces of gold,
representing a 15% - 30% increase from 2014
-
Approval for POA 10 (expansion of Stage IV leach
pad and construction of new Stage V leach pad) is expected in early
2016. Minimal preparatory work for the Stage V leach pad expected
in 2016 with major construction activity planned for 2017
Kensington, Alaska
(Dollars in millions,
except per ounce amounts) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons milled |
165,198 |
170,649 |
164,951 |
167,417 |
145,097 |
Average gold grade (oz/t) |
0.19 |
0.18 |
0.24 |
0.21 |
0.23 |
Average recovery rate |
93.9% |
94.9% |
94.8% |
94.2% |
93% |
Gold ounces produced |
28,799 |
29,845 |
33,909 |
33,533 |
30,773 |
Gold ounces sold |
28,084 |
36,607 |
36,873 |
22,399 |
37,009 |
Revenues |
$30.5 |
$42.5 |
$44.0 |
$26.0 |
$45.9 |
Costs applicable to sales |
$25.0 |
$27.5 |
$29.4 |
$18.9 |
$34.7 |
Adjusted costs applicable to sales per
gold ounce1 |
$842 |
$745 |
$797 |
$792 |
$889 |
Exploration expense |
$0.2 |
$0.4 |
$1.7 |
$2.8 |
$2.6 |
Cash flow from operating activities |
$8.9 |
$12.0 |
$12.3 |
$(3.7) |
$17.0 |
Sustaining capital
expenditures |
$1.0 |
$4.2 |
$4.1 |
$3.3 |
$3.6 |
Development capital expenditures |
$4.5 |
$0.5 |
$- |
$0.6 |
$- |
Total capital
expenditures |
$5.5 |
$4.7 |
$4.1 |
$3.9 |
$3.6 |
Free cash flow3 |
$3.4 |
$7.3 |
$8.2 |
$(7.6) |
$13.4 |
-
Adjusted costs applicable to sales per gold
ounce1 increased 13%
to $842 in the third quarter mainly due to the timing of certain
maintenance costs and a 23% decline in ounces sold
-
Development of the decline into the high-grade
Jualin deposit began in early August. Underground drilling at
Jualin is expected to begin in early 2016
-
In 2015, Kensington is expected to produce
115,000 - 125,000 ounces of gold at costs applicable to sales per
gold ounce of $800 - $850, approximately 6% lower than prior
guidance of $850 - $900
Wharf, South
Dakota
(Dollars in millions,
except per ounce amounts) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Ore tons placed |
1,149,744 |
887,409 |
415,996 |
- |
- |
Average gold grade (oz/t) |
0.035 |
0.025 |
0.020 |
- |
- |
Gold equivalent ounces
produced1 |
23,427 |
16,794 |
6,609 |
- |
- |
Gold equivalent ounces sold1 |
24,815 |
17,131 |
- |
- |
- |
Revenues |
$28.0 |
$20.4 |
- |
- |
- |
Costs applicable to sales |
$17.8 |
$16.6 |
- |
- |
- |
Adjusted costs applicable to sales
per gold equivalent ounce1 |
$716 |
$970 |
- |
- |
- |
Exploration expense |
$- |
$- |
- |
- |
- |
Cash flow from operating
activities |
$12.9 |
$8.2 |
(7.2) |
- |
- |
Sustaining capital expenditures |
$0.7 |
$1.2 |
0.1 |
- |
- |
Development capital
expenditures |
$- |
$- |
- |
- |
- |
Total capital expenditures |
$0.7 |
$1.2 |
0.1 |
- |
- |
Free cash flow3 |
$12.2 |
$7.0 |
(7.3) |
- |
- |
-
Adjusted costs applicable to sales per gold
equivalent ounce1 declined 26%
in the third quarter to $716 due to a significant increase in
production from the higher-grade Golden Reward pit, as well as
higher recoveries from ore placed on the recently relined leach pad
V
-
Free cash flow3 from Wharf
increased to $12.2 million in the quarter, making Wharf the
Company's largest source of cash flow
-
In 2015, Wharf is expected to produce 74,000 -
78,000 ounces of gold at costs applicable to sales per gold
equivalent ounce1 of $700 -
$750, down approximately 8% compared to prior guidance of $750 -
$825
San Bartolomé,
Bolivia
(Dollars in millions,
except per ounce amounts) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons milled |
373,201 |
457,232 |
406,951 |
454,135 |
471,938 |
Average silver grade (oz/t) |
3.76 |
3.73 |
3.65 |
3.77 |
3.70 |
Average recovery rate |
84.0% |
87.6% |
81.6% |
88.0% |
86.5% |
Silver ounces produced (000's) |
1,178 |
1,495 |
1,213 |
1,507 |
1,509 |
Silver ounces sold
(000's) |
1,202 |
1,439 |
1,290 |
1,987 |
1,438 |
Revenues |
$17.4 |
$23.4 |
$21.5 |
$32.6 |
$28.4 |
Costs applicable to sales |
$17.5 |
$19.2 |
$19.1 |
$29.6 |
$20.4 |
Adjusted costs applicable to sales per silver
ounce1 |
$14.41 |
$13.26 |
$14.47 |
$14.38 |
$13.67 |
Exploration expense |
$0.1 |
$- |
$- |
$- |
$- |
Cash flow from operating activities |
$5.7 |
$5.4 |
$5.0 |
$2.3 |
$12.3 |
Sustaining capital
expenditures |
$1.8 |
$1.0 |
$0.9 |
$2.0 |
$2.8 |
Development capital expenditures |
$- |
$- |
$- |
$- |
$- |
Total capital
expenditures |
$1.8 |
$1.0 |
$0.9 |
$2.0 |
$2.8 |
Free cash flow3 |
$3.9 |
$4.4 |
$4.1 |
$0.3 |
$9.5 |
-
Political protests in Potosi, Bolivia prompted a
three-week cessation of mining activity in July, which caused a 21%
decrease in production and a 9% increase in adjusted costs
applicable to sales per silver ounce to $14.41 for the
quarter
-
To supplement tonnage from ongoing mining
activities, Coeur recently began purchasing larger volumes of
higher-grade ore from local sources to feed into the processing
facility. Approximately 17% of third quarter production was
generated by third-party ore purchases
-
In 2015, San Bartolomé is expected to produce
5.3 - 5.5 million ounces of silver at costs applicable to sales of
$13.50 - $14.50 per silver ounce, down from prior guidance of
$13.50 - $15.00
Coeur
Capital
(Dollars in millions,
except per ounce amounts) |
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
Tons milled |
191,913 |
191,175 |
185,299 |
214,180 |
199,757 |
Average silver grade (oz/t) |
1.39 |
2.35 |
1.69 |
1.99 |
1.44 |
Average recovery rate |
45.4% |
45.4% |
42.4% |
44.9% |
49.1% |
Silver ounces produced (000's) |
121 |
204 |
133 |
191 |
141 |
Silver ounces sold
(000's) |
95 |
209 |
118 |
192 |
141 |
Metal sales |
$1.3 |
$3.1 |
$1.9 |
$2.7 |
$2.4 |
Royalty revenue |
$1.6 |
$1.8 |
$2.0 |
$0.7 |
$0.6 |
Costs applicable to sales (Endeavor
silver stream) |
$0.5 |
$1.4 |
$0.6 |
$1.1 |
$1.1 |
Costs applicable to sales per
silver equivalent ounce1 |
$4.99 |
$6.46 |
$5.37 |
$5.69 |
$7.71 |
Cash flow from operating activities |
$3.1 |
$2.1 |
$2.2 |
$1.5 |
$2.4 |
Free cash flow3 |
$3.1 |
$2.1 |
$2.2 |
$1.5 |
$2.4 |
-
Coeur Capital's largest source of cash flow is
the silver stream on the Endeavor mine in New South Wales,
Australia in which the Company owns 100% of the silver up to a
total of 20.0 million payable ounces. At September 30, 2015, the
Company has received 5.9 million ounces, or 30.0% of the
total
-
There are five cash-flowing royalties and
streams, two non-cash-flowing royalties, and several investments in
junior mining companies held in Coeur Capital or its
affiliates
Exploration
Costs associated with exploration
activities for the third quarter of 2015 were $2.1 million
(expensed) for discovery of new silver and gold mineralization and
$1.4 million (capitalized) for definition and expansion of
mineralized material. These amounts compare to exploration costs of
$3.6 million expensed and $2.2 million capitalized in the second
quarter. Coeur's exploration program used 7 drill rigs during the
third quarter: 3 drills at Palmarejo, 1 at Kensington, 2 at
Rochester, 1 at Wharf, and 1 at La Preciosa. This work resulted in
completion of over 57,776 feet (17,610 meters) of combined core and
reverse circulation drilling.
Exploration expenses are expected
to total $13 - $16 million in 2015, with additional capital
allocated to resource conversion. Coeur continues to use a
success-based approach to funding exploration activities, with a
near-term focus on higher grade targets at Palmarejo at and near
the Guadalupe operation, drilling near-surface oxide targets at La
Preciosa, drilling new targets near Wharf, mapping and sampling
around Rochester and Kensington, and the selective acquisition and
maintenance of early-stage projects.
Conference Call
Information
Coeur will conduct a conference
call and webcast at www.coeur.com to discuss the Company's third
quarter results on November 3, 2015 at 11:00 a.m. Eastern time.
Dial-In Numbers: (855)
560-2581 (US)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference
ID:
Coeur Mining, Inc.
A replay of the call will be available on Coeur's
website through November 17, 2015.
Replay Numbers: (877)
344-7529 (US)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference
ID:
100 73 689
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a
significant gold producer with five precious metals mines in the
Americas employing approximately 2,100 people. Coeur produces from
its wholly owned operations: the Palmarejo silver-gold mine in
Mexico, the San Bartolomé silver mine in Bolivia, the Rochester
silver-gold mine in Nevada, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. The Company also has a
non-operating interest in the Endeavor mine in Australia in
addition to royalties on the Cerro Bayo mine in Chile, the El Gallo
complex in Mexico, the Zaruma mine in Ecuador, and the Correnso
mine in New Zealand. In addition, the Company has two silver-gold
exploration projects - the La Preciosa project in Mexico and the
Joaquin project in Argentina. The Company also conducts ongoing
exploration activities in Alaska, Argentina, Bolivia, Mexico, and
Nevada. The Company owns strategic investment positions in several
silver and gold development companies with projects in North and
South America.
Cautionary
Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding the impact of strategic initiatives,
the anticipated closing of the exchange transaction, anticipated
production, costs, capital expenditures, expenses, mining rates,
crushing rates, operations, development and exploration at and
ability to extend and enhance the operating and financial profile
of Palmarejo, approval for POA 10, planned capital and expansion
projects at Rochester, development activity at Kensington, and
exploration efforts. 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 the
exchange transaction does not close on a timely basis or at all,
the risk that anticipated benefits of recent acquisitions are not
realized, 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 and silver and a sustained lower price environment,
the uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting
and regulatory delays, ground conditions, grade variability, any
future labor disputes or work stoppages (including those involving
third parties), the uncertainties inherent in the estimation of
gold and silver reserves and resources, changes that could result
from Coeur's future acquisition of new mining properties or
businesses, the absence of control over and reliance on third
parties to operate mining operations in which Coeur or its
subsidiaries hold royalty or streaming interests and risks related
to these mining operations including results of mining and
exploration activities, environmental, economic and political risks
of the jurisdiction in which the mining operations are located, the
loss of access to any third-party smelter to which Coeur markets
silver and gold, the effects of environmental and other
governmental regulations, 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.
Dana Willis, Coeur's Director,
Resource Geology and a qualified person under Canadian National
Instrument 43-101, supervised the preparation of 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 adjusted EBITDA, adjusted net
income (loss), costs applicable to sales per silver equivalent
ounce (or per gold equivalent ounce), adjusted costs applicable to
sales per silver equivalent ounce, all-in sustaining costs, and
adjusted all-in sustaining costs. 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 adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), adjusted costs applicable to sales per silver
equivalent ounce, all-in sustaining costs, and adjusted all-in
sustaining costs are important measures in assessing the Company's
overall financial performance.
Notes
1. Adjusted EBITDA, adjusted net income (loss),
all-in sustaining costs, adjusted all-in sustaining costs, costs
applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), and adjusted costs applicable to sales per
silver equivalent ounce are non-GAAP measures. Please see tables in
the Appendix for the reconciliation to U.S. GAAP. For purposes of
silver and gold equivalence, a 60:1 silver to gold ratio is assumed
except where noted as average realized prices.
2. Includes capital leases. Net of debt issuance costs and premium
received.
3. Free cash flow is defined as cash flow from operating activities
less capital expenditures and royalty payments.
For Additional
Information:
Bridget Freas, Director, Investor
Relations
(312) 489-5819
www.coeur.com
Coeur Mining, Inc.
and Subsidiaries
Condensed Consolidated Statements of Comprehensive
Income (Loss)
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
In thousands,
except share data |
Revenue |
$ |
162,552 |
|
|
$ |
170,938 |
|
|
$ |
481,770 |
|
|
$ |
495,133 |
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
Costs applicable to sales |
120,237 |
|
|
125,910 |
|
|
354,397 |
|
|
351,492 |
|
Amortization |
35,497 |
|
|
41,985 |
|
|
107,560 |
|
|
123,834 |
|
General and administrative |
6,694 |
|
|
8,515 |
|
|
23,979 |
|
|
31,809 |
|
Exploration |
2,112 |
|
|
6,587 |
|
|
9,957 |
|
|
15,957 |
|
Pre-development, reclamation, and other |
4,938 |
|
|
4,244 |
|
|
13,968 |
|
|
20,019 |
|
Total
costs and expenses |
169,478 |
|
|
187,241 |
|
|
509,861 |
|
|
543,111 |
|
OTHER INCOME (EXPENSE), NET |
|
|
|
|
|
|
|
Fair
value adjustments, net |
5,786 |
|
|
16,105 |
|
|
3,657 |
|
|
(3,611 |
) |
Interest expense, net of capitalized interest |
(12,446 |
) |
|
(11,616 |
) |
|
(33,945 |
) |
|
(36,980 |
) |
Other,
net |
(8,893 |
) |
|
(1,303 |
) |
|
(14,257 |
) |
|
(6,927 |
) |
Total other income (expense), net |
(15,553 |
) |
|
3,186 |
|
|
(44,545 |
) |
|
(47,518 |
) |
Income
(loss) before income and mining taxes |
(22,479 |
) |
|
(13,117 |
) |
|
(72,636 |
) |
|
(95,496 |
) |
Income and mining tax (expense) benefit |
8,260 |
|
|
16,583 |
|
|
8,451 |
|
|
18,650 |
|
NET INCOME (LOSS) |
$ |
(14,219 |
) |
|
$ |
3,466 |
|
|
$ |
(64,185 |
) |
|
$ |
(76,846 |
) |
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: |
|
|
|
|
|
|
|
Unrealized gain (loss) on equity securities, net of tax of $686 and
$939 for the three and nine months ended September 30, 2014,
respectively |
(931 |
) |
|
(1,086 |
) |
|
(3,744 |
) |
|
(1,487 |
) |
Reclassification adjustments for impairment of
equity securities, net of tax of $(423) and $(1,768) for the three
and nine months ended September 30, 2014, respectively |
483 |
|
|
669 |
|
|
2,028 |
|
|
2,828 |
|
Reclassification adjustments for realized loss on sale of equity
securities, net of tax of $(140) and $(150) for the three and nine
months ended September 30, 2014, respectively |
- |
|
|
221 |
|
|
904 |
|
|
238 |
|
Other comprehensive income (loss) |
(448 |
) |
|
(196 |
) |
|
(812 |
) |
|
1,579 |
|
COMPREHENSIVE INCOME (LOSS) |
$ |
(14,667 |
) |
|
$ |
3,270 |
|
|
$ |
(64,997 |
) |
|
$ |
(75,267 |
) |
|
|
|
|
|
|
|
|
NET
INCOME (LOSS) PER SHARE |
|
|
|
|
|
|
|
Basic |
$ |
(0.11 |
) |
|
$ |
0.03 |
|
|
$ |
(0.52 |
) |
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
Diluted |
$ |
(0.11 |
) |
|
$ |
0.03 |
|
|
$ |
(0.52 |
) |
|
$ |
(0.75 |
) |
Coeur Mining, Inc.
and Subsidiaries
Condensed Consolidated Statements of Cash
Flows
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
In
thousands |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net
income (loss) |
$ |
(14,219 |
) |
|
$ |
3,466 |
|
|
$ |
(64,185 |
) |
|
(76,846 |
) |
Adjustments: |
|
|
|
|
|
|
|
Amortization |
35,497 |
|
|
41,985 |
|
|
107,560 |
|
|
123,834 |
|
Accretion |
3,629 |
|
|
3,868 |
|
|
10,305 |
|
|
12,961 |
|
Deferred
income taxes |
(1,233 |
) |
|
(23,437 |
) |
|
(8,470 |
) |
|
(39,142 |
) |
Loss on termination of revolving credit facility |
- |
|
|
- |
|
|
- |
|
|
3,035 |
|
Fair
value adjustments, net |
(5,786 |
) |
|
(16,105 |
) |
|
(3,657 |
) |
|
3,611 |
|
Stock-based compensation |
1,639 |
|
|
2,505 |
|
|
6,393 |
|
|
7,455 |
|
Impairment of equity securities |
483 |
|
|
1,092 |
|
|
2,028 |
|
|
4,614 |
|
Foreign exchange and other |
8,541 |
|
|
1,683 |
|
|
13,845 |
|
|
815 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
Receivables |
11,011 |
|
|
7,446 |
|
|
11,225 |
|
|
18,297 |
|
Prepaid
expenses and other current assets |
(2,055 |
) |
|
3,871 |
|
|
(3,222 |
) |
|
(687 |
) |
Inventory and ore on leach pads |
5,380 |
|
|
9,698 |
|
|
10,713 |
|
|
(5,821 |
) |
Accounts
payable and accrued liabilities |
(6,650 |
) |
|
(4,806 |
) |
|
(13,407 |
) |
|
311 |
|
CASH PROVIDED BY OPERATING ACTIVITIES |
36,237 |
|
|
31,266 |
|
|
69,128 |
|
|
52,437 |
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Capital expenditures |
(23,861 |
) |
|
(16,784 |
) |
|
(65,158 |
) |
|
(44,076 |
) |
Acquisitions, net of cash acquired |
(122 |
) |
|
(13,829 |
) |
|
(111,290 |
) |
|
(16,079 |
) |
Other |
340 |
|
|
74 |
|
|
(1,338 |
) |
|
61 |
|
Purchase
of short-term investments and equity securities |
(3 |
) |
|
(2,089 |
) |
|
(1,876 |
) |
|
(50,423 |
) |
Sales and maturities of short-term investments |
60 |
|
|
2,856 |
|
|
529 |
|
|
3,413 |
|
CASH USED
IN INVESTING ACTIVITIES |
(23,586 |
) |
|
(29,772 |
) |
|
(179,133 |
) |
|
(107,104 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Issuance
of notes and bank borrowings |
- |
|
|
- |
|
|
153,500 |
|
|
153,000 |
|
Payments on debt, capital leases, and associated
costs |
(2,618 |
) |
|
(13,274 |
) |
|
(77,838 |
) |
|
(20,236 |
) |
Gold
production royalty payments |
(10,159 |
) |
|
(11,351 |
) |
|
(30,281 |
) |
|
(38,379 |
) |
Other |
(34 |
) |
|
(77 |
) |
|
(529 |
) |
|
(483 |
) |
CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(12,811 |
) |
|
(24,702 |
) |
|
44,852 |
|
|
93,902 |
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
(160 |
) |
|
(23,208 |
) |
|
(65,153 |
) |
|
39,235 |
|
Cash and
cash equivalents at beginning of period |
205,868 |
|
|
269,133 |
|
|
270,861 |
|
|
206,690 |
|
Cash and cash equivalents at end of period |
$ |
205,708 |
|
|
$ |
245,925 |
|
|
$ |
205,708 |
|
|
$ |
245,925 |
|
Coeur Mining, Inc.
and Subsidiaries
Condensed Consolidated Balance Sheets
|
|
September 30, 2015
(Unaudited) |
|
December 31,
2014 |
ASSETS |
|
In thousands, except share data |
CURRENT ASSETS |
|
|
|
|
Cash and
cash equivalents |
|
$ |
205,708 |
|
|
$ |
270,861 |
|
Receivables |
|
93,599 |
|
|
116,921 |
|
Inventory |
|
98,109 |
|
|
114,931 |
|
Ore on leach pads |
|
68,695 |
|
|
48,204 |
|
Deferred
tax assets |
|
7,197 |
|
|
7,364 |
|
Prepaid expenses and other |
|
18,431 |
|
|
15,523 |
|
|
|
491,739 |
|
|
573,804 |
|
NON-CURRENT ASSETS |
|
|
|
|
Property,
plant and equipment, net |
|
261,043 |
|
|
227,911 |
|
Mining properties, net |
|
851,590 |
|
|
501,192 |
|
Ore on
leach pads |
|
39,685 |
|
|
37,889 |
|
Restricted assets |
|
8,003 |
|
|
7,037 |
|
Equity
securities |
|
3,213 |
|
|
5,982 |
|
Receivables |
|
27,507 |
|
|
21,686 |
|
Deferred
tax assets |
|
64,359 |
|
|
60,151 |
|
Other |
|
11,534 |
|
|
9,915 |
|
TOTAL
ASSETS |
|
$ |
1,758,673 |
|
|
$ |
1,445,567 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
Accounts payable |
|
$ |
49,690 |
|
|
$ |
49,052 |
|
Accrued
liabilities and other |
|
38,329 |
|
|
51,513 |
|
Debt |
|
11,775 |
|
|
17,498 |
|
Royalty
obligations |
|
33,440 |
|
|
43,678 |
|
Reclamation |
|
3,310 |
|
|
3,871 |
|
Deferred
tax liabilities |
|
8,078 |
|
|
8,078 |
|
|
|
144,622 |
|
|
173,690 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
Debt |
|
534,211 |
|
|
451,048 |
|
Royalty
obligations |
|
6,781 |
|
|
27,651 |
|
Reclamation |
|
88,009 |
|
|
66,943 |
|
Deferred
tax liabilities |
|
222,809 |
|
|
111,006 |
|
Other long-term liabilities |
|
47,856 |
|
|
29,911 |
|
|
|
899,666 |
|
|
686,559 |
|
STOCKHOLDERS' EQUITY |
|
|
|
|
Common
stock, par value $0.01 per share; authorized 300,000,000 shares,
issued and outstanding 136,962,174 at September 30, 2015 and
authorized 150,000,000 shares, issued and outstanding 103,384,408
at December 31, 2014 |
|
1,370 |
|
|
1,034 |
|
Additional paid-in capital |
|
2,983,423 |
|
|
2,789,695 |
|
Accumulated other comprehensive income (loss) |
|
(3,620 |
) |
|
(2,808 |
) |
Accumulated deficit |
|
(2,266,788 |
) |
|
(2,202,603 |
) |
|
|
714,385 |
|
|
585,318 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
1,758,673 |
|
|
$ |
1,445,567 |
|
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per
share amounts) |
3Q 2015 |
|
2Q 2015 |
|
1Q 2015 |
|
4Q 2014 |
|
3Q 2014 |
Net
income (loss) |
$ |
(14,219 |
) |
|
$ |
(16,677 |
) |
|
$ |
(33,287 |
) |
|
$ |
(1,079,038 |
) |
|
$ |
3,466 |
|
Interest expense, net of capitalized interest |
12,446 |
|
|
10,734 |
|
|
10,765 |
|
|
10,566 |
|
|
11,615 |
|
Other,
net |
8,893 |
|
|
2,852 |
|
|
2,511 |
|
|
(1,709 |
) |
|
1,305 |
|
Income tax provision (benefit) |
(8,260 |
) |
|
(260 |
) |
|
68 |
|
|
(440,594 |
) |
|
(16,582 |
) |
Amortization |
35,497 |
|
|
38,974 |
|
|
33,090 |
|
|
38,570 |
|
|
41,985 |
|
EBITDA |
34,357 |
|
|
35,623 |
|
|
13,147 |
|
|
(1,472,205 |
) |
|
41,789 |
|
Fair
value adjustments, net |
(5,786 |
) |
|
(2,754 |
) |
|
4,884 |
|
|
(7,229 |
) |
|
(16,106 |
) |
Inventory adjustments |
2,280 |
|
|
1,805 |
|
|
3,684 |
|
|
14,482 |
|
|
4,993 |
|
Corporate reorganization costs |
514 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Transaction-related costs |
- |
|
|
38 |
|
|
1,975 |
|
|
- |
|
|
- |
|
Write-downs |
- |
|
|
- |
|
|
- |
|
|
1,472,721 |
|
|
- |
|
Adjusted EBITDA |
$ |
31,365 |
|
|
$ |
34,712 |
|
|
$ |
23,690 |
|
|
$ |
7,769 |
|
|
$ |
30,676 |
|
Adjusted Net
Income (Loss) Reconciliation
(Dollars in thousands except per
share amounts) |
3Q 2015 |
|
2Q 2015 |
|
1Q 2015 |
|
4Q 2014 |
|
3Q 2014 |
Net
income (loss) |
$ |
(14,219 |
) |
|
$ |
(16,677 |
) |
|
$ |
(33,287 |
) |
|
$ |
(1,079,038 |
) |
|
$ |
3,466 |
|
Fair value adjustments, net |
(3,384 |
) |
|
(2,618 |
) |
|
4,339 |
|
|
(5,622 |
) |
|
(13,026 |
) |
Stock-based compensation |
1,541 |
|
|
2,529 |
|
|
2,410 |
|
|
1,807 |
|
|
2,417 |
|
Impairment of equity securities |
483 |
|
|
31 |
|
|
1,514 |
|
|
1,979 |
|
|
1,092 |
|
Accretion of royalty obligation |
1,063 |
|
|
1,147 |
|
|
1,315 |
|
|
1,992 |
|
|
1,374 |
|
Write-downs |
- |
|
|
- |
|
|
- |
|
|
1,021,756 |
|
|
- |
|
(Gain)
loss on debt extinguishments |
- |
|
|
524 |
|
|
(253 |
) |
|
(426 |
) |
|
- |
|
Inventory adjustments |
2,280 |
|
|
1,805 |
|
|
3,684 |
|
|
14,482 |
|
|
4,993 |
|
Corporate reorganization costs |
514 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Transaction-related costs |
- |
|
|
38 |
|
|
1,975 |
|
|
- |
|
|
- |
|
Deferred tax asset valuation allowance |
- |
|
|
76 |
|
|
(3,464 |
) |
|
- |
|
|
- |
|
Foreign exchange (gain) loss on deferred taxes |
(10,092 |
) |
|
(1,305 |
) |
|
(929 |
) |
|
5,615 |
|
|
(18,801 |
) |
Adjusted net income (loss) |
$ |
(21,814 |
) |
|
$ |
(14,450 |
) |
|
$ |
(22,696 |
) |
|
$ |
(37,455 |
) |
|
$ |
(18,485 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per share |
$ |
(0.16 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.18 |
) |
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended September 30, 2015
|
|
Silver |
|
Gold |
|
Total |
In thousands
except per ounce
amounts |
|
Pal-
marejo |
|
Ro-
chester |
|
San
Bartolomé |
|
Endea-
vor |
|
Total |
|
Kensing-
ton |
|
Wharf |
|
Total |
|
Costs applicable
to sales,
including
amortization
(U.S. GAAP) |
|
$ |
42,
710 |
|
|
$ |
33,
935 |
|
|
$ |
20,
665 |
|
|
$ |
1,384 |
|
|
$ |
99,
038 |
|
|
$ |
33,
472 |
|
|
$ |
23,
419 |
|
|
$ |
56,
891 |
|
|
$ |
155,
929 |
|
Amor-
tization |
|
8,617 |
|
|
8,499 |
|
|
3,526 |
|
|
909 |
|
|
21,551 |
|
|
8,499 |
|
|
5,642 |
|
|
14,141 |
|
|
35,692 |
|
Costs applicable
to sales |
|
$ |
34,
093 |
|
|
$ |
25,
436 |
|
|
$ |
17,
483 |
|
|
$ |
475 |
|
|
$ |
77,
487 |
|
|
$ |
24,
973 |
|
|
$ |
17,
777 |
|
|
$ |
42,
750 |
|
|
$ |
120,
237 |
|
Silver equivalent
ounces sold |
|
2,924,
947 |
|
|
2,116,
353 |
|
|
1,201,
959 |
|
|
95,
260 |
|
|
6,338,
519 |
|
|
|
|
|
|
|
|
9,512,
459 |
|
Gold equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
28,
084 |
|
|
24,
815 |
|
|
52,
899 |
|
|
|
Costs applicable
to sales per ounce |
|
$ |
11.66 |
|
|
$ |
12.02 |
|
|
$ |
14.55 |
|
|
$ |
4.99 |
|
|
$ |
12.22 |
|
|
$ |
889 |
|
|
$ |
716 |
|
|
$ |
808 |
|
|
$ |
12.64 |
|
Inventory adjustments |
|
(0.26 |
) |
|
(0.01 |
) |
|
(0.14 |
) |
|
- |
|
|
(0.15 |
) |
|
(47 |
) |
|
- |
|
|
(25 |
) |
|
(0.24 |
) |
Adjusted costs
applicable to sales per ounce |
|
$ |
11.40 |
|
|
$ |
12.01 |
|
|
$ |
14.41 |
|
|
$ |
4.99 |
|
|
$ |
12.07 |
|
|
$ |
842 |
|
|
$ |
716 |
|
|
$ |
783 |
|
|
$ |
12.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales
per ounce (realized) |
|
$ |
10.25 |
|
|
$ |
10.90 |
|
|
|
|
|
|
$ |
11.14 |
|
|
|
|
|
|
|
|
$ |
10.95 |
|
Inventory adjustments |
|
(0.24 |
) |
|
(0.01 |
) |
|
|
|
|
|
(0.14 |
) |
|
|
|
|
|
|
|
(0.21 |
) |
Adjusted costs applicable to sales per ounce
(realized) |
|
$ |
10.01 |
|
|
$ |
10.89 |
|
|
|
|
|
|
$ |
11.00 |
|
|
|
|
|
|
|
|
$ |
10.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
120,
237 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
820 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,565 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,694 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,112 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,493 |
|
Project/pre-
Development
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,648 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
146,
569 |
|
Silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,338,
519 |
|
Kensington
and Wharf
silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,173,
940 |
|
Consolidated silver
equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,512,
459 |
|
All-in
sustaining
costs per
silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15.41 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.24 |
) |
Adjusted
all-in sustaining
costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-in
sustaining
costs per silver equivalent ounce (realized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
13.35 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.21 |
) |
Adjusted
all-in sustaining
costs per silver equivalent ounce (realized) |
|
|
|
|
|
|
|
|
|
|
|
$ |
13.14 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended June 30, 2015
|
|
Silver |
|
Gold |
|
|
In thousands
except per
ounce amounts |
|
Pal-
marejo |
|
Ro-
chester |
|
San
Bartolomé |
|
Endea-
vor |
|
Total
Silver |
|
Kensing-
ton |
|
Wharf |
|
Total
Gold |
|
Total
Com-
bined |
Costs applicable
to sales,
including
amortization
(U.S. GAAP) |
|
$ |
39,
158 |
|
|
$ |
37,
076 |
|
|
$ |
24,
428 |
|
|
$ |
3,
204 |
|
|
$ |
103,
866 |
|
|
$ |
40,
136 |
|
|
$ |
20,
123 |
|
|
$ |
60,
259 |
|
|
$ |
164,
125 |
|
Amortization |
|
9,046 |
|
|
12,684 |
|
|
5,271 |
|
|
1,852 |
|
|
28,853 |
|
|
12,684 |
|
|
3,491 |
|
|
16,175 |
|
|
45,028 |
|
Costs applicable
to sales |
|
$ |
30,
112 |
|
|
$ |
24,
392 |
|
|
$ |
19,
157 |
|
|
$ |
1,
352 |
|
|
$ |
75,
013 |
|
|
$ |
27,
452 |
|
|
$ |
16,
632 |
|
|
$ |
44,
084 |
|
|
$ |
119,
097 |
|
Silver equivalent
ounces sold |
|
2,169,
960 |
|
|
2,024,
856 |
|
|
1,439,
388 |
|
|
209,
130 |
|
|
5,843,
334 |
|
|
|
|
|
|
|
|
9,067,
614 |
|
Gold equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
36,607 |
|
|
17,131 |
|
|
53,738 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
13.88 |
|
|
$ |
12.05 |
|
|
$ |
13.31 |
|
|
$ |
6.46 |
|
|
$ |
12.84 |
|
|
$ |
750 |
|
|
$ |
971 |
|
|
$ |
820 |
|
|
$ |
13.13 |
|
Inventory adjustments |
|
(0.67 |
) |
|
(0.04 |
) |
|
(0.05 |
) |
|
- |
|
|
(0.28 |
) |
|
(5 |
) |
|
(1 |
) |
|
(4 |
) |
|
(0.20 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
13.21 |
|
|
$ |
12.01 |
|
|
$ |
13.26 |
|
|
$ |
6.46 |
|
|
$ |
12.56 |
|
|
$ |
745 |
|
|
$ |
970 |
|
|
$ |
816 |
|
|
$ |
12.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales per ounce
(realized) |
|
$ |
12.68 |
|
|
10.98 |
|
|
|
|
|
|
12.01 |
|
|
|
|
|
|
|
|
$ |
11.72 |
|
Inventory adjustments |
|
(0.61 |
) |
|
(0.04 |
) |
|
|
|
|
|
(0.26 |
) |
|
|
|
|
|
|
|
(0.18 |
) |
Adjusted costs applicable to sales
per ounce (realized) |
|
$ |
12.07 |
|
|
$ |
10.94 |
|
|
|
|
|
|
$ |
11.75 |
|
|
|
|
|
|
|
|
$ |
11.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
119,
097 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,526 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,625 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,451 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,579 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,036 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,030 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
152,
344 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,843,
334 |
|
Kensington
and Wharf silver
equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
3,224,
280 |
|
Consolidated silver
equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,067,
614 |
|
All-in
sustaining costs per silver
equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
16.80 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.20 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
16.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-in
sustaining costs per silver equivalent ounce (realized) |
|
|
|
|
|
|
|
|
|
|
|
$ |
14.99 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.18 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce
(realized) |
|
|
|
|
|
|
|
|
|
|
$ |
14.81 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended March 31, 2015
|
|
Silver |
|
Gold |
|
|
In thousands except per ounce amounts |
|
Palmarejo |
|
Rochester |
|
San Bartolomé |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
41,824 |
|
|
$ |
38,235 |
|
|
$ |
23,818 |
|
|
$ |
1,892 |
|
|
$ |
105,769 |
|
|
$ |
40,973 |
|
|
$ |
146,742 |
|
Amortization |
|
7,333 |
|
|
6,843 |
|
|
4,691 |
|
|
1,259 |
|
|
20,126 |
|
|
11,554 |
|
|
31,680 |
|
Costs applicable to sales |
|
$ |
34,491 |
|
|
$ |
31,392 |
|
|
$ |
19,127 |
|
|
$ |
633 |
|
|
$ |
85,643 |
|
|
$ |
29,419 |
|
|
$ |
115,062 |
|
Silver equivalent ounces sold |
|
2,157,612 |
|
|
2,416,103 |
|
|
1,289,867 |
|
|
117,863 |
|
|
5,981,445 |
|
|
|
|
8,193,825 |
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
36,873 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
15.99 |
|
|
$ |
12.99 |
|
|
$ |
14.83 |
|
|
$ |
5.37 |
|
|
$ |
14.32 |
|
|
$ |
798 |
|
|
$ |
14.04 |
|
Inventory adjustments |
|
(1.43 |
) |
|
(0.04 |
) |
|
(0.36 |
) |
|
- |
|
|
(0.61 |
) |
|
(1 |
) |
|
(0.45 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
14.56 |
|
|
$ |
12.95 |
|
|
$ |
14.47 |
|
|
$ |
5.37 |
|
|
$ |
13.71 |
|
|
$ |
797 |
|
|
$ |
13.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales per ounce
(realized) |
|
$ |
14.85 |
|
|
$ |
11.94 |
|
|
|
|
|
|
$ |
13.47 |
|
|
|
|
$ |
12.76 |
|
Inventory adjustments |
|
(1.33 |
) |
|
(0.03 |
) |
|
|
|
|
|
(0.57 |
) |
|
|
|
$ |
- |
|
Adjusted costs applicable to sales per ounce
(realized) |
|
$ |
13.52 |
|
|
$ |
11.91 |
|
|
|
|
|
|
$ |
12.90 |
|
|
|
|
$ |
12.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
115,062 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,490 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,909 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,834 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,266 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,924 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,873 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
148,358 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,981,445 |
|
Kensington silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,212,380 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,193,825 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
18.11 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.45 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
17.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-in
sustaining costs per silver equivalent ounce (realized) |
|
|
|
|
|
|
|
$ |
16.46 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.41 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce
(realized) |
|
|
|
|
|
|
|
$ |
16.05 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended December 31, 2014
|
|
Silver |
|
Gold |
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
Rochester |
|
San Bartolomé |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
64,397 |
|
|
$ |
34,611 |
|
|
$ |
34,610 |
|
|
$ |
2,678 |
|
|
$ |
136,296 |
|
|
$ |
27,383 |
|
|
$ |
163,679 |
|
Amortization |
|
16,235 |
|
|
5,955 |
|
|
4,993 |
|
|
1,586 |
|
|
28,769 |
|
|
8,458 |
|
|
37,227 |
|
Costs applicable to sales |
|
$ |
48,162 |
|
|
$ |
28,656 |
|
|
$ |
29,617 |
|
|
$ |
1,092 |
|
|
$ |
107,527 |
|
|
$ |
18,925 |
|
|
$ |
126,452 |
|
Silver equivalent ounces sold |
|
2,350,080 |
|
|
2,001,976 |
|
|
1,985,952 |
|
|
191,983 |
|
|
6,529,991 |
|
|
|
|
7,873,931 |
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
22,399 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
20.49 |
|
|
$ |
14.31 |
|
|
$ |
14.91 |
|
|
$ |
5.69 |
|
|
$ |
16.47 |
|
|
$ |
845 |
|
|
$ |
16.06 |
|
Inventory adjustments |
|
(4.79 |
) |
|
(0.49 |
) |
|
(0.53 |
) |
|
- |
|
|
(2.04 |
) |
|
(53 |
) |
|
(1.84 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
15.70 |
|
|
$ |
13.82 |
|
|
$ |
14.38 |
|
|
$ |
5.69 |
|
|
$ |
14.43 |
|
|
$ |
792 |
|
|
$ |
14.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales per ounce
(realized) |
|
$ |
18.92 |
|
|
$ |
13.20 |
|
|
|
|
|
|
$ |
15.60 |
|
|
|
|
$ |
15.05 |
|
Inventory adjustments |
|
(4.43 |
) |
|
(0.45 |
) |
|
|
|
|
|
(1.93 |
) |
|
|
|
$ |
(1.72 |
) |
Adjusted costs applicable to sales per ounce
(realized) |
|
$ |
14.49 |
|
|
$ |
12.75 |
|
|
|
|
|
|
$ |
13.67 |
|
|
|
|
$ |
13.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
126,452 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
994 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
18,492 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,036 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,783 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,549 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,721 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
166,027 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,529,991 |
|
Kensington silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,343,940 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,873,931 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
21.09 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(1.84 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
19.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-in
sustaining costs per silver equivalent ounce (realized) |
|
|
|
|
|
|
|
$ |
19.76 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(1.72 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce
(realized) |
|
|
|
|
|
|
$ |
18.04 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended September 30, 2014
|
|
Silver |
|
Gold |
|
|
In thousands except per ounce amounts |
|
Palmarejo |
|
Rochester |
|
San Bartolomé |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
62,481 |
|
|
$ |
29,077 |
|
|
$ |
25,564 |
|
|
$ |
1,998 |
|
|
$ |
119,120 |
|
|
$ |
47,555 |
|
|
$ |
166,675 |
|
Amortization |
|
16,493 |
|
|
5,359 |
|
|
5,117 |
|
|
909 |
|
|
27,878 |
|
|
12,887 |
|
|
40,765 |
|
Costs applicable to sales |
|
$ |
45,988 |
|
|
$ |
23,718 |
|
|
$ |
20,447 |
|
|
$ |
1,089 |
|
|
$ |
91,242 |
|
|
$ |
34,668 |
|
|
$ |
125,910 |
|
Silver equivalent ounces sold |
|
3,021,448 |
|
|
1,602,676 |
|
|
1,438,409 |
|
|
141,291 |
|
|
6,203,824 |
|
|
|
|
8,424,364 |
|
Gold equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
37,009 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
15.22 |
|
|
$ |
14.80 |
|
|
$ |
14.22 |
|
|
$ |
7.71 |
|
|
$ |
14.71 |
|
|
$ |
937 |
|
|
$ |
14.95 |
|
Inventory adjustments |
|
(0.79 |
) |
|
(0.02 |
) |
|
(0.55 |
) |
|
- |
|
|
(0.52 |
) |
|
(48 |
) |
|
(0.59 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
14.43 |
|
|
$ |
14.78 |
|
|
$ |
13.67 |
|
|
$ |
7.71 |
|
|
$ |
14.19 |
|
|
$ |
889 |
|
|
$ |
14.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales per ounce
(realized) |
|
$ |
14.67 |
|
|
$ |
14.41 |
|
|
|
|
|
|
$ |
14.35 |
|
|
|
|
$ |
14.38 |
|
Inventory adjustments |
|
(0.76 |
) |
|
(0.02 |
) |
|
|
|
|
|
(0.50 |
) |
|
|
|
(0.57 |
) |
Adjusted costs applicable to sales per ounce
(realized) |
|
$ |
13.91 |
|
|
$ |
14.39 |
|
|
|
|
|
|
$ |
13.85 |
|
|
|
|
$ |
13.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
125,910 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,425 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,239 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,515 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,587 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,041 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,154 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
158,871 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,203,824 |
|
Kensington
and Wharf silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
2,220,540 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
8,424,364 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
$ |
18.86 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.59 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
$ |
18.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-in
sustaining costs per silver equivalent ounce (realized) |
|
|
|
|
|
|
|
|
|
$ |
18.14 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.57 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce
(realized) |
|
|
|
|
|
|
|
|
|
$ |
17.57 |
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Coeur Mining, Inc. via Globenewswire
HUG#1963403
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Apr 2023 to Apr 2024