$14.32 Adjusted AISC per Realized Silver
Equivalent Ounce1 in 2015 Represents 22% Decline
Full-Year Gold Production up 31% to 328,000
Ounces at 19% Lower Costs
Cash & Equivalents Remained Constant at
$200 Million at Year-End
Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE)
reported 2015 revenue of $646.1 million, adjusted EBITDA1 of $101.2
million, adjusted net loss1 of $0.75 per share, and cash flow from
operating activities of $113.5 million. The Company sold 335,882
ounces of gold and 16.5 million ounces of silver during 2015, a 38%
increase and a 5% decrease compared to 2014, respectively. Adjusted
all-in sustaining costs per realized silver equivalent ounce1 of
$14.32 for 2015 declined 22% compared to 2014 levels (16% decline
assuming a constant 60:1 ratio).
Fourth quarter revenue was $164.2 million, adjusted EBITDA1 was
$13.9 million, adjusted net loss1 was $0.27 per share, and cash
flow from operating activities was $44.4 million. The Company sold
92,032 ounces of gold and 4.4 million ounces of silver during the
fourth quarter. Fourth quarter all-in sustaining costs per realized
silver equivalent ounce1 of $13.55 dropped 25% compared to the same
quarter last year (18% decline assuming a constant 60:1 ratio).
Fourth Quarter 2015
Highlights
- Silver equivalent1 production totaled
9.5 million ounces. Silver production was 4.0 million ounces and
gold production was 91,551 ounces as previously announced on
January 11, 2016
- Adjusted all-in sustaining costs were
$13.55 per realized silver equivalent ounce1. Using a 60:1
equivalence, adjusted all-in sustaining costs were $15.66 per
silver equivalent ounce1
- Adjusted costs applicable to sales were
$11.71 per realized silver equivalent ounce1. Using a 60:1
equivalence, adjusted costs applicable to sales per silver
equivalent ounce1 were $12.65
- Adjusted EBITDA1 was $13.9 million
- Capital expenditures totaled $30.0
million, driven by development of the Jualin deposit at Kensington
and development of the Guadalupe and Independencia underground
deposits at Palmarejo
- Wharf's gold equivalent production
increased 38% to 32,231 ounces, leading to a 22% decline in costs
applicable to sales per gold equivalent ounce1 to $556 and
quarterly free cash flow3 of $16.9 million
- Reduced total debt by approximately $54
million, or approximately 10%, at significant discount to par,
resulting in a $16 million gain
- Cash and equivalents of $200.7 million
at December 31, 2015
- Non-cash impairment charge of $313.3
million ($276.5 million net of tax) was recorded to reduce the
carrying values of the Palmarejo and San Bartolomé mines, the
Endeavor silver stream, and certain royalty assets to reflect lower
gold and silver prices
Full-Year 2015
Highlights
- Silver equivalent1 production totaled
35.6 million ounces, at the high-end of Company guidance and 11%
higher than 2014. Silver production was 15.9 million ounces, at the
high-end of Company guidance. Gold production was 327,908 ounces,
in-line with Company guidance and 31% higher than 2014
- Adjusted all-in sustaining costs were
$14.32 per realized silver equivalent ounce1, a 22% reduction from
2014. Using a 60:1 equivalence, adjusted all-in sustaining costs
were $16.16 per silver equivalent ounce1, a 16% reduction from
2014
- Adjusted costs applicable to sales were
$11.87 per realized silver equivalent ounce1, a 13% reduction from
2014. Using a 60:1 equivalence, adjusted costs applicable to sales
per silver equivalent ounce1 were $12.75, a 10% reduction from
2014
- Adjusted costs applicable to sales per
gold ounce1 at Kensington were $798, 16% lower than 2014 and the
lowest since production began in 2010
- General and administrative expenses
were $32.8 million, below Company guidance and down 20% compared to
2014
- Adjusted EBITDA1 was $101.2 million, a
19% increase over 2014 despite 18% and 9% lower average realized
prices for silver and gold, respectively
- Capital expenditures were $95.2
million, at the low-end of Company guidance, and consisted
primarily of underground development at the Guadalupe and
Independencia deposits at Palmarejo, development of the Jualin
deposit at Kensington, and expansion of the crushing facility at
Rochester
“Our fourth quarter capped a very solid year for the Company,
driven by strong performance from our Palmarejo and Wharf mines. We
met or exceeded all of the operating and financial guidance we
provided for 2015. With all-in sustaining costs per silver
equivalent ounce1 in the mid $13 level in the fourth quarter and
expected to decline further, we can no longer be considered a
high-cost producer. In fact, the rate at which we are reducing our
costs and the extent of these reductions make us a clear industry
leader. Despite further declines in silver and gold prices during
the fourth quarter, our cash and equivalents remained consistent at
over $200 million,” said Mitchell J. Krebs, Coeur's President and
Chief Executive Officer. "We expect this exciting transition to
lead to strong, sustainable free cash flow as we begin mining
higher grade material at Palmarejo and Kensington and as we realize
the benefit of larger scale, more efficient mining at Rochester due
to the significant investments we have made over the past three
years.
"Our 2016 guidance is shown at the end of this release. It
reflects the ongoing trend of quality production growth at lower
costs from our diverse portfolio of five operating mines. Our
overall liquidity remains strong and more than sufficient to
complete the investments necessary to drive our transition to
positive free cash flow later this year. It is also notable that
our net debt-to-LTM-EBITDA has declined from 3.8x at the end of the
third quarter of 2015 to 2.9x at the end of the fourth quarter due
to lower total debt, a stable cash balance, and higher adjusted
EBITDA at year-end 2015.
"Recent successful acquisitions have augmented the strong
performance from our existing mines. The Wharf gold mine in South
Dakota generated nearly $30 million in free cash flow during the
ten months we owned it in 2015. At Palmarejo, we have now begun
mining the high-grade Independencia silver and gold deposit we
consolidated by acquiring Paramount Gold and Silver in April of
last year. Together with the Guadalupe deposit located 800 meters
away and significant exploration potential, the future of Palmarejo
now appears to be very long, bright, and profitable.”
Financial
Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold
ounces produced & sold, and
per-ounce metrics)
2015 4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Revenue
$ 646.1 $ 164.2 $ 162.6 $ 166.3 $ 153.0 $ 635.7 $
140.6
Costs Applicable to Sales $ 479.7 $
125.3 $ 120.2 $ 119.1 $ 115.1 $ 477.9 $ 126.5
General and
Administrative Expenses $ 32.8 $ 8.8 $ 6.7 $ 8.5
$ 8.8 $ 40.8 $ 9.0
Adjusted EBITDA1 $
101.2 $ 13.9 $ 31.4 $ 34.7 $ 23.7 $ 85.0 $ 7.8
Net Income
(Loss) $ (367.2 ) $ (303.0 ) $ (14.2 ) $
(16.7 ) $ (33.3 ) $ (1,186.9 ) $ (1,079.1 )
Net Income (Loss)
Per Share $ (2.83 ) $ (2.28 ) $ (0.11 ) $
(0.12 ) $ (0.32 ) $ (11.59 ) $ (10.53 )
Adjusted Net Income
(Loss)1 $ (96.6 ) $
(38.6
) $ (21.8 ) $ (14.5 ) $ (19.2 ) $ (110.7 ) $ (37.5 )
Adjusted
Net Income (Loss)1 Per Share $
(0.75 ) $ (0.27 ) $ (0.16 ) $ (0.11 ) $ (0.19 ) $
(1.08 ) $ (0.37 )
Weighted Average Shares 129.6 145.0
135.5 135.0 102.6 102.4 102.4
Cash Flow From Operating
Activities $ 113.5 $ 44.4 $ 36.2 $ 36.9 $ (4.0 )
$ 53.5 $ 0.7
Capital Expenditures $ 95.2 $
30.0 $ 23.9 $ 23.7 $ 17.6 $ 64.2 $ 20.1
Cash, Equivalents &
Short-Term Investments $ 200.7 $ 200.7 $ 205.7 $
205.9 $ 179.6 $ 270.9 $ 270.9
Total Debt2 $
490.4 $ 490.4 $ 546.0 $ 547.7 $ 513.5 $ 468.5 $ 468.5
Average Realized Price Per Ounce -
Silver $
15.46 $ 14.27 $ 14.66 $ 16.23 $ 16.77 $ 18.87 $ 16.40
Average Realized Price Per Ounce -
Gold $
1,143 $ 1,093 $ 1,116 $ 1,179 $ 1,204 $ 1,252 $ 1,186
Silver Ounces Produced 15.9 4.0 3.8 4.3 3.8 17.2 4.3
Gold Ounces Produced 327,908 91,551 85,769 80,855
69,734 249,384 64,534
Silver Equivalent Ounces
Produced1 35.6 9.5 9.0 9.1 8.0 32.2 8.3
Silver
Ounces Sold 16.5 4.4 4.0 4.0 4.1 17.4 4.6
Gold Ounces
Sold 335,882 92,032 91,118 84,312 68,420 242,655 52,785
Silver Equivalent Ounces Sold1 36.7 9.9 9.5
9.1 8.2 32.0 7.9
Silver Equivalent Ounces Sold
(Realized)1 41.3 11.3 10.9 10.1 9.0 33.5 8.4
Adjusted Costs Applicable to Sales per AgEq Ounce1
$ 12.75 $ 12.65 $ 12.07 $ 12.56 $ 13.71 $ 14.13 $
14.43
Adjusted Costs Applicable to Sales per Realized AgEq
Ounce1 $ 11.87 $ 11.71 $ 11.00 $ 11.75 $
12.90 $ 13.68 $ 13.67
Adjusted Costs Applicable to Sales per
AuEq Ounce1 $ 764 $ 663 $ 783 $ 816 $ 797
$ 940 $ 792
Adjusted All-in Sustaining Costs per AgEq
Ounce1 $ 16.16 $ 15.66 $ 15.17 $ 16.60 $
17.66 $ 19.23 $ 19.25
Adjusted Costs Applicable to Sales per
Realized AgEq Ounce 1 $ 14.32 $
13.55 $ 13.14 $ 14.81 $ 16.05 $ 18.34 $ 18.04
Financial Results
The Company realized average silver and gold prices of $14.27
and $1,093 during the fourth quarter, which were 3% and 2% lower,
respectively, compared with the third quarter and 13% and 8% lower,
respectively, compared to last year's fourth quarter. For the full
year, the Company realized average prices of $15.46 per ounce of
silver and $1,143 per ounce of gold, representing declines of 18%
and 9%, respectively, compared to 2014.
Fourth quarter revenue increased 1% compared with the third
quarter to $164.2 million. Silver contributed 38% of metal sales
and gold contributed 62% during the fourth quarter. For the full
year, revenue rose 2% to $646.1 million. Silver contributed 40% of
metal sales and gold contributed 60% during 2015.
Fourth quarter general and administrative expenses were $8.8
million, 31% higher compared to the third quarter due to timing of
professional services and corporate reorganization costs. For the
full-year 2015, general and administrative expenses totaled $32.8
million, a 20% decline compared to 2014.
Fourth quarter exploration totaled $2.3 million, including $1.7
million (expensed) for discovery of new silver and gold
mineralization and $0.6 million (capitalized) for definition and
expansion of mineralized material. These amounts compare to
exploration of $2.1 million (expensed) and $1.4 million
(capitalized) in the third quarter of 2015. For the full-year 2015
exploration totaled $17.6 million ($11.6 million expensed and $6.0
million capitalized), a 42% reduction from 2014. Highlights from
the 2015 program include the expansion of the Guadalupe inferred
resource and new discoveries at the Los Bancos and Nación veins at
Palmarejo, the initial resource estimate at the Jualin deposit at
Kensington, and the definition of new high-grade mineralization at
East Rochester.
Fourth quarter net loss was $303.0 million, or $2.28 per share,
which included an after-tax non-cash impairment charge of $276.5
million to reduce the carrying values of the Palmarejo and San
Bartolomé mines, the Endeavor silver stream, and certain royalties
due to lower silver and gold prices. Adjusted net loss1 was $38.6
million, or $0.27 per share, in the fourth quarter. Full-year 2015
net loss was $367.2 million, or $2.83 per share. Adjusted net loss1
was $96.6 million, or $0.75 per share.
Fourth quarter cash flow from operating activities was $44.4
million, 23% higher than the third quarter of 2015, and up
significantly compared to last year's fourth quarter of $0.7
million. Full-year 2015 cash flow from operating activities totaled
$113.5 million, 112% higher than 2014, driven by improved
operational efficiencies, cost reductions, and favorable changes in
working capital.
Fourth quarter capital expenditures of $30.0 million were 26%
higher compared to the third quarter due primarily to higher
spending at Kensington for the development of the high-grade Jualin
deposit. Full-year capital expenditures were $95.2 million, driven
by development of the high-grade Guadalupe and Independencia
deposits at Palmarejo, development of the Jualin deposit at
Kensington, and the Rochester crusher expansion.
Operations
Highlights of the fourth quarter and full-year 2015 results for
each of the Company's operating segments are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts) 2015
4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Underground Operations: Tons mined 701,662
189,383 190,399 172,730 149,150 744,599 187,730
Average silver
grade (oz/t) 4.06 3.96 4.11 3.90 4.34 5.40 4.49
Average gold grade (oz/t) 0.08 0.06 0.10 0.09 0.07
0.10 0.06
Surface Operations: Tons mined
888,432 102,018 247,071 257,862 281,481 1,342,608 320,802
Average silver grade (oz/t) 3.64 3.86 3.56 3.47 3.79
3.30 2.90
Average gold grade (oz/t) 0.03 0.03 0.03
0.03 0.04 0.03 0.03
Processing: Total tons milled
1,616,668 301,274 427,635 435,841 451,918 2,135,088 510,813
Average recovery rate – Ag 84.3% 95.4% 87.9% 78.5%
78.7% 77.5% 80.2%
Average recovery rate – Au 80.6%
88.8% 84.7% 76.2% 73.9% 80.5% 78.7%
Silver ounces produced
(000's) 5,149 1,126 1,422 1,247 1,354 6,558 1,444
Gold ounces produced 70,922 14,326 22,974 18,127
15,495 86,673 15,237
Silver equivalent ounces
produced1 (000's)
9,404 1,985 2,800 2,335 2,284 11,758 2,358
Silver ounces
sold (000's) 5,448 1,465 1,425 1,228 1,330 6,640 1,375
Gold ounces sold 73,218 18,719 25,000 15,706 13,793
92,030 16,255
Silver equivalent ounces sold1
(000's) 9,841 2,588 2,925 2,170 2,158 12,162 2,350
Silver equivalent ounces sold1 (realized)
(000's) 10,862 2,840 3,325 2,374 2,323 12,746 2,545
Revenues $169.1 $41.6 $49.2 $38.9 $39.4 $244.0 $42.2
Costs applicable to sales $138.5 $39.8 $34.1 $30.1
$34.5 $187.3 $48.1
Adjusted costs applicable to sales per
AgEq ounce1 $13.03 $13.48 $11.40 $13.21 $14.56
$15.26 $15.70
Adjusted costs applicable to sales per realized
AgEq ounce 1 $11.81 $12.04 $10.01 $12.07 $13.52
$13.77 $14.49
Exploration expense $4.5 $0.5 $1.1 $1.8
$1.1 $6.7 $1.5
Cash flow from operating activities
$52.7 $20.3 $22.9 $9.7 $(0.2) $54.6 $(3.2)
Sustaining
capital expenditures $5.5 $(1.4) $1.1 $2.7 $3.1 $16.4
$5.5
Development capital expenditures $30.5
$7.0 $9.4 $8.0 $6.1 $9.7 $5.4
Total capital expenditures $36.0 $5.6 $10.5 $10.7
$9.2 $26.1 $10.9
Free cash flow (before royalties)
$16.7 $14.7 $12.4 $(1.0) $(9.4) $28.5 $(14.1)
Royalties
paid $39.2 $8.8 $10.2 $9.8 $10.4 $48.4 $10.0
Free
cash flow3 $(22.5) $5.9 $2.2 $(10.8) $(19.8)
$(19.9) $(24.1)
- Fourth quarter adjusted costs
applicable to sales per realized silver equivalent ounce1 were
$12.04. Using a 60:1 equivalence, adjusted costs applicable to
sales per silver equivalent ounce1 were $13.48 in the fourth
quarter 2015
- Full-year 2015 adjusted costs
applicable to sales per realized silver equivalent ounce1 were
$11.81. Using a 60:1 equivalence, adjusted costs applicable to
sales per silver equivalent ounce1 were $13.03, 15% lower than
2014
- Fourth quarter free cash flow before
royalties of $14.7 million reached the highest level since the
third quarter of 2014 when silver and gold prices averaged $19.46
and $1,260 per ounce. Full-year free cash flow before royalties
totaled $16.7 million, despite $36.0 million in capital
expenditures during the year
- Recent modifications to the processing
plant have significantly improved recovery rates. Fourth quarter
recovery rates were 95.4% for silver and 88.8% for gold compared to
80.2% and 78.5%, respectively, during last year's fourth
quarter
- Mining and processing of ore from the
Independencia deposit has now begun after reaching this new ore
body in early January as planned. Mining rates are expected to
climb throughout 2016 to 1,000 tons per day by year-end
- With active open pit mining operations
to be completed during the first quarter of 2016, underground
production levels are expected to increase throughout the year as
mining rates from Independencia accelerate. By mid-2017, the
Company expects daily underground mining rates to reach a combined
4,000 tons per day from the higher-grade, higher-margin Guadalupe
and Independencia deposits
- In 2016, Palmarejo is expected to
produce 3.8 - 4.3 million ounces of silver and 67,000 - 72,000
ounces of gold at costs applicable to sales per silver equivalent
ounce1 of $12.50 - $13.50
- 2016 capital expenditures are expected
to be approximately $40 million and consist mostly of underground
development at Guadalupe and Independencia as well as capitalized
exploration drilling intended to convert mineralized material to
reserves
- Employee headcount is down 17% to 765
employees compared to the beginning of 2014 when operations began
the transition to higher-grade underground mining activities
Rochester, Nevada
(Dollars in millions, except per ounce amounts) 2015
4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Ore tons placed 16,414,302 4,411,590 4,128,868
3,859,965 4,013,879 14,739,808 3,876,944
Average silver grade
(oz/t) 0.63 0.60 0.59 0.61 0.74 0.57 0.60
Average
gold grade (oz/t) 0.003 0.003 0.003 0.003 0.004 0.004
0.004
Silver ounces produced (000's) 4,631 1,107
1,086 1,294 1,144 4,189 1,170
Gold ounces produced
52,588 11,564 10,892 16,411 13,721 44,888 15,764
Silver
equivalent ounces produced1 (000's) 7,786
1,800 1,740 2,279 1,967 6,882 2,116
Silver ounces sold
(000's) 4,900 1,125 1,304 1,120 1,351 3,922 1,154
Gold ounces sold 57,963 11,587 13,537 15,085 17,754
39,803 14,131
Silver equivalent ounces sold1
(000's) 8,378 1,821 2,116 2,025 2,416 6,310 2,002
Silver equivalent ounces sold1 (realized)
(000's) 9,187 2,004 2,333 2,221 2,629 6,563 2,171
Revenues $143.9 $29.0 $34.6 $36.3 $44.0 $123.8 $36.0
Costs applicable to sales $104.0 $22.8 $25.4 $24.4
$31.4 $91.5 $28.7
Adjusted costs applicable to sales per AgEq
ounce1 $12.36 $12.37 $12.01 $12.01 $12.95 $14.49
$13.82
Adjusted costs applicable to sales per realized AgEq
ounce 1 $11.27 $11.19 $10.89 $10.94 $11.91 $13.77
$12.75
Exploration expense $1.3 $0.1 $— $0.5 $0.7
$2.6 $0.6
Cash flow from operating activities $32.1
$0.4 $6.5 $8.8 $16.4 $13.7 $10.2
Sustaining capital
expenditures $10.3 $5.3 $1.8 $2.4 $0.8 $11.9 $2.7
Development capital expenditures $15.0 $5.5
$3.5 $3.5 $2.5 $— $—
Total
capital expenditures $25.3 $10.8 $5.3 $5.9 $3.3 $11.9
$2.7
Free cash flow3 $6.8 $(10.4) $1.2 $2.9
$13.1 $1.8 $7.5
- Full-year silver equivalent production
of 7.8 million ounces increased 13% from 2014, reflecting the
second consecutive year of double-digit growth
- Fourth quarter adjusted costs
applicable to sales per realized silver equivalent ounce1 were
$11.19, a 3% increase versus the third quarter of 2015 and a 12%
decline from last year's fourth quarter. Using a 60:1 equivalence,
adjusted costs applicable to sales per silver equivalent ounce1
were $12.37, up 3% from the third quarter, but down 10% from the
fourth quarter of 2014
- Full-year 2015 adjusted costs
applicable to sales per realized silver equivalent ounce1 were
$11.27, 18% lower than 2014. Using a 60:1 equivalence, adjusted
costs applicable to sales per silver equivalent ounce1 were $12.36,
down 15% compared to 2014 as a result of a greater number of tons
placed
- Placed 16.4 million tons under leach
during 2015, representing an increase of 11% compared to 2014 and
33% compared to 2013. Anticipate placing nearly 20 million tons
under leach in 2016. This increase is due to recent investments
made to expand the crushing facility, increase capacity of the
existing Stage III leach pad, and upgrade the mining fleet,
including the transition from loaders to a hydraulic shovel and the
commissioning of a new fleet of 150 ton haul trucks during the
first half of 2016
- Approval for POA 10, which will allow
for the expansion of the Stage IV leach pad and construction of new
Stage V leach pad, is expected in the first half of 2016. Minimal
preparatory work for the Stage V leach pad is expected later this
year with major construction activity planned for 2017
- In 2016, Rochester is expected to
produce 4.7 - 5.2 million ounces of silver and 48,000 - 55,000
ounces of gold at costs applicable to sales per silver equivalent
ounce1 of $11.25 - $12.25
- Capital expenditures in 2016 are
expected to be approximately $12 million and will consist mostly
preparatory work for the Stage V leach pad as well as capitalized
exploration
Kensington, Alaska
(Dollars in millions, except per ounce amounts) 2015
4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Tons milled 660,464 159,666 165,198 170,649 164,951
635,960 167,417
Average gold grade (oz/t) 0.20 0.22
0.19 0.18 0.24 0.20 0.21
Average recovery rate 94.9%
96.0% 93.9% 94.9% 94.8% 94.0% 94.2%
Gold ounces produced
126,266 33,713 28,799 29,845 33,909 117,823 33,533
Gold
ounces sold 131,553 29,989 28,084 36,607 36,873 110,822
22,399
Revenues $148.7 $31.7 $30.5 $42.5 $44.0 $137.0
$26.0
Costs applicable to sales $105.6 $23.7 $25.0
$27.5 $29.4 $105.3 $18.9
Adjusted costs applicable to sales
per gold ounce1 $798 $777 $842 $745 $797 $951
$792
Exploration expense $2.6 $0.3 $0.2 $0.4 $1.7
$8.0 $2.8
Cash flow from operating activities $37.7
$4.5 $8.9 $12.0 $12.3 $26.6 $(3.7)
Sustaining capital
expenditures $14.8 $5.5 $1.0 $4.2 $4.1 $15.6 $3.3
Development capital expenditures $9.0 $4.0
$4.5 $0.5 $— $0.6 $0.6
Total
capital expenditures $23.8 $9.5 $5.5 $4.7 $4.1 $16.2
$3.9
Free cash flow3 $13.9 $(5.0) $3.4 $7.3
$8.2 $10.4 $(7.6)
- All-time high gold production of
126,266 ounces in 2015 at adjusted costs applicable to sale per
ounce1 of $798, the lowest since operations began in 2010
- Fourth quarter adjusted costs
applicable to sales per gold ounce1 of $777 declined 8% compared to
the third quarter due to higher grade and a higher recovery
rate
- Development the high-grade Jualin
deposit remains on-schedule. The decline has now advanced over
2,000 feet, representing nearly 30% of the total required
development to reach the ore body
- Underground drilling to increase
confidence levels of existing Jualin resource and expand the size
of the ore body is expected to begin in the first quarter of
2016
- Implemented ore sorting technology to
the mill flow sheet in November to improve recovery rates going
forward. Capital investment was $1.8 million and payback expected
to be achieved in the second quarter of this year
- In 2016, Kensington is expected to
produce 115,000 - 125,000 ounces of gold at costs applicable to
sales per gold ounce1 of $825 - $875
- Capital expenditures in 2016 are
estimated to be approximately $30 million and consist mostly of
underground development of the Jualin deposit, further development
of the Kensington and Raven ore bodies, as well as capitalized
exploration
Wharf, South Dakota
(Dollars in millions, except per ounce amounts) 2015
4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Ore tons placed 3,600,279 1,147,130 1,149,744 887,409
415,996 — —
Average silver grade (oz/t) 0.23 0.21
0.21 0.30 — — —
Average gold grade (oz/t) 0.030 0.032
0.035 0.025 0.020 — —
Average plant recovery rate - Au
90.2% 97.3% 92.8% 76.7% 85.9% — —
Silver ounces produced
(000's) 56 18 19 19 — — —
Gold ounces produced
78,132 31,947 23,104 16,472 6,609 — —
Gold equivalent
ounces produced1 79,061 32,231 23,427 16,794
6,609 — —
Silver ounces sold (000's) 49 17 19 13 — —
—
Gold ounces sold 73,148 31,202 24,815 17,131 — — —
Gold equivalent ounces sold1 73,965 31,485
25,132 17,348 — — —
Revenues $84.1 $35.7 $28.0 $20.4
$— — —
Costs applicable to sales $52.2 $17.8 $17.8
$16.6 $— — —
Adjusted costs applicable to sales per gold
equivalent ounce1 $706 $556 $716 $970 $— — —
Exploration expense $0.1 $0.1 $— $— $— — —
Cash
flow from operating activities $32.0 $18.1 $12.9 $8.2
$(7.2) — —
Sustaining capital expenditures $3.2 $1.2
$0.7 $1.2 $0.1 — —
Development capital expenditures
$— $— $— $— $— — —
Total capital expenditures $3.2 $1.2 $0.7 $1.2 $0.1 —
—
Free cash flow3 $28.8 $16.9 $12.2 $7.0
$(7.3) — —
- Fourth quarter production up 38%
compared to third quarter of 2015, leading to lower unit costs and
a 39% increase in free cash flow to $16.9 million
- Adjusted costs applicable to sales per
gold equivalent ounce1 were $556 in the fourth quarter, a 22% drop
compared to the prior quarter, as a result of strong crushing rates
and improved process plant efficiencies, which have led to
significantly higher plant recovery rates
- Free cash flow3 totaled $28.8 million
in 2015 (since acquisition closed in February), making Wharf the
Company's largest source of free cash flow
- Gold equivalent production during the
ten months of ownership in 2015 totaled 79,061 ounces at average
adjusted costs applicable to sales per gold equivalent ounce1 of
$706
- In 2016, Wharf is expected to produce
90,000 - 95,000 ounces of gold at costs applicable to sales per
gold equivalent ounce1 of $650 - $750
- Capital expenditures are expected to be
approximately $8 million in 2016, consisting primarily of equipment
purchases and capitalized exploration
San Bartolomé, Bolivia
(Dollars in millions, except per ounce amounts) 2015
4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Tons milled 1,713,079 475,695 373,201 457,232 406,951
1,749,423 454,135
Average silver grade (oz/t) 3.75
3.84 3.76 3.73 3.65 3.80 3.77
Average recovery rate
84.6% 84.9% 84.0% 87.6% 81.6% 88.1% 88.0%
Silver ounces
produced (000's) 5,436 1,550 1,178 1,495 1,213 5,852
1,507
Silver ounces sold (000's) 5,495 1,564 1,202
1,439 1,290 6,276 1,987
Revenues $84.7 $22.4 $17.4
$23.4 $21.5 $117.7 $32.6
Costs applicable to sales
$75.8 $20.0 $17.5 $19.2 $19.1 $89.7 $29.6
Adjusted costs
applicable to sales per silver ounce1
$13.63 $12.48 $14.41 $13.26 $14.47 $14.29 $14.38
Exploration expense $0.1 $— $0.1 $— $— $0.1 $—
Cash flow from operating activities $26.1 $10.0 $5.7
$5.4 $5.0 $38.0 $2.3
Sustaining capital expenditures
$6.2 $2.5 $1.8 $1.0 $0.9 $7.9 $2.0
Development capital
expenditures $— $— $— $— $—
$— $—
Total capital expenditures $6.2
$2.5 $1.8 $1.0 $0.9 $7.9 $2.0
Free cash flow3
$19.9 $7.5 $3.9 $4.4 $4.1 $30.1 $0.3
- Adjusted costs applicable to sales per
silver ounce1 were $12.48 in the fourth quarter, a 13% decline
compared to the prior quarter. Full-year 2015 costs applicable to
sales per silver equivalent ounce1 were $13.63, 5% lower than
2014
- Free cash flow3 of $7.5 million in the
fourth quarter almost doubled from the third quarter
- Coeur recently increased its purchases
of higher-grade, lower-cost ore from local sources to supplement
tonnage from ongoing mining activities. Approximately 30% of fourth
quarter silver production was derived from third-party ore
purchases, and Coeur expects the proportion to remain around 25 -
30% in 2016
- Full-year 2015 silver production
totaled 5.4 million ounces at adjusted costs applicable to sales of
$13.63 per ounce1
- In 2016, San Bartolomé is expected to
produce 5.7 - 6.0 million ounces of silver at costs applicable to
sales per silver ounce1 of $13.50 - $14.25
- Capital expenditures in 2016 are
expected to be approximately $6 million mostly for ongoing tailings
impoundment expansion activities
Coeur Capital
(Dollars in millions, except per ounce amounts) 2015
4Q 2015 3Q 2015 2Q 2015
1Q 2015 2014 4Q 2014
Tons milled 767,314 198,927 191,913 191,175 185,299
792,694 214,180
Average silver grade (oz/t) 1.87 2.05
1.39 2.35 1.69 1.62 1.99
Average recovery rate 43.8%
42.1% 45.4% 45.4% 42.4% 45.6% 44.9%
Silver ounces produced
(000's) 629 171 121 204 133 590 191
Silver ounces
sold (000's) 615 193 95 209 118 586 192
Metal
sales $8.7 $2.4 $1.3 $3.1 $1.9 $10.0 $2.7
Royalty
revenue $6.9 $1.5 $1.6 $1.8 $2.0 $3.2 $0.7
Costs
applicable to sales (Endeavor silver stream) $3.5 $1.0
$0.5 $1.4 $0.6 $4.2 $1.1
Costs applicable to sales per
silver equivalent ounce1 $5.72 $5.50 $4.99 $6.46
$5.37 $7.17 $5.69
Cash flow from operating activities
$8.2 $0.8 $3.1 $2.1 $2.2 $6.5 $1.5
Free cash
flow3 $8.2 $0.8 $3.1 $2.1 $2.2 $6.5 $1.5
- 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
- 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 December 31, 2015, the
Company has received 6.1 million ounces
Exploration
Fourth quarter exploration totaled $2.3 million and resulted in
the completion of 8,986 feet (2,739 meters) of combined core and
reverse circular drilling. Exploration expense was $1.7 million and
capitalized drilling was $0.6 million.
For the full-year 2015, exploration totaled $17.6 million, 42%
lower than 2014, and resulted in 273,824 feet (83,483 meters) of
drilling. Exploration expense was $11.6 million and capitalized
drilling was $6.0 million.
Exploration continues to be driven by the focus on the discovery
of high-grade deposits located near existing operations. Highlights
from 2015 exploration activities include:
- Palmarejo exploration included $4.7
million of expensed exploration and $2.1 million capitalized. The
2015 surface drilling program discovered the thickest,
highest-grade silver-gold mineralization recorded to date in the
deeper portions of the Guadalupe resource. With the construction of
the twin declines from Guadalupe to Independencia, new discoveries
at the Los Bancos and Nación veins were drilled
- Expensed exploration at Rochester was
$1.3 million for testing areas east of the Packard Pit and East
Rochester. A new zone of high-grade silver and gold mineralization
was discovered at East Rochester, the economic implications of
which are expected to be evaluated in 2016. Capitalized exploration
totaled $1.6 million for infill drilling within the Rochester
pit
- Expensed exploration at Kensington
totaled $2.6 million and resulted in an initial resource estimate
at the Jualin deposit, which was disclosed in a preliminary
economic assessment in April 2015. The discovery and subsequent
analysis demonstrates the robust nature of the grades at this
deposit, which are three times that of the average reserve gold
grades. On the back of the Jualin discovery, Raven and other veins
in the district have been prioritized for future exploration.
Capitalized drilling totaled $1.4 million to further define and
expand the Raven vein and deeper portions of the main Kensington
ore body
Exploration expense is expected to total $11 - $13 million in
2016, with an additional $11 - $13 million of capital allocated to
resource conversion. Priorities for 2016 include:
- Expanding resources in the
Guadalupe-Independencia corridor, including the recently identified
Los Bancos and Nación veins, as well as drilling at the nearby La
Bavisa and Dana veins
- Infill and expansion drilling of high
grade East Rochester discovery, which will be the focus of a
revised economic analysis in 2016
- Infill and expansion underground
drilling of the Jualin Vein #4 deposit at Kensington following
encouraging drill results. Additionally, underground drilling will
further test a new vein, Vein #5, located beneath Vein #4 at Jualin
where gold grades and thickness are believed to be very similar to
Vein #4
The Company will continue to use a success-based approach to
evaluate exploration priorities on an ongoing basis.
Full-Year 2016 Outlook
- Production is expected to be 14.6 -
16.0 million ounces of silver and 320,000 - 347,000 ounces of gold,
or 33.8 - 36.8 million silver equivalent ounces1
- Costs applicable to sales per silver
equivalent ounce1 are expected to be $12.50 - $13.50 at Palmarejo,
$11.25 - $12.25 at Rochester, and $13.50 - $14.25 at San
Bartolomé
- Costs applicable to sales per gold
ounce are expected to be $825 - $875 at Kensington and $650 - $750
per gold equivalent ounce1 at Wharf
- All-in sustaining costs are expected to
be $16.00 - $17.25 per silver equivalent ounce1
- Capital expenditures are expected to be
$90 - $100 million, including $58 - $64 million of sustaining
capital. Capital investment will be higher in the first half of
2016, mostly due to the development of the Guadalupe and
Independencia deposits at Palmarejo and development of the Jualin
deposit at Kensington
- General and administrative expenses are
expected to be $28 - $32 million, a further reduction from
2015
- Expensed exploration is expected to be
$11 - $13 million for the discovery of new mineralization. An
additional $11 - $13 million is planned for capitalized exploration
for the definition and expansion of mineralized material
2016 Production Outlook
(silver and silver equivalent ounces in thousands)
Silver Gold
Silver Equivalent1 Palmarejo
3,800 - 4,300 67,000 - 72,000 7,820 -
8,620
Rochester 4,700 - 5,200 48,000 - 55,000 7,580 - 8,500
San Bartolomé 5,700 - 6,000 — 5,700 - 6,000
Endeavor
350 - 400 — 350 - 400
Kensington — 115,000 - 125,000 6,900 -
7,500
Wharf 80 - 100 90,000 -
95,000 5,480 - 5,800
Total
14,630 - 16,000 320,000 - 347,000
33,830 - 36,820
2016 Cost Outlook
(dollars in millions, except per ounce amounts)
2016 Guidance
2015 Result Costs Applicable to Sales per Silver
Equivalent Ounce1 - Palmarejo
$12.50 - $13.50 $13.03
Costs
Applicable to Sales per Silver Ounce1 - San
Bartolomé $13.50 - $14.25 $13.63
Costs Applicable to Sales
per Silver Equivalent Ounce1 - Rochester $11.25 -
$12.25 $12.36
Costs Applicable to Sales per Gold
Ounce1 - Kensington $825 - $875 $798
Costs
Applicable to Sales per Gold Equivalent Ounce1 -
Wharf $650 - $750 $712
Capital Expenditures $90 - $100
$95.2
General and Administrative Expenses $28 - $32 $32.8
Exploration Expense $11 - $13 $11.6
All-in Sustaining
Costs per Silver Equivalent Ounce1 $16.00 - $17.25
$16.16
Conference Call
Information
Coeur will conduct a conference call and webcast at
www.coeur.com to discuss the Company's fourth quarter and full-year
2015 results on February 11, 2016 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
A replay of the call will be available on Coeur's website
through February 25, 2016.
Replay Numbers:
(877) 344-7529 (U.S.)
(855) 699-9658 (Canada)
(412) 317-0088 (International)
Conference ID: 100 77 791
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 2,000 people. Coeur produces from
its wholly owned operations: the Palmarejo silver-gold mine in
Mexico, the Rochester silver-gold mine in Nevada, the Kensington
gold mine in Alaska, the Wharf gold mine in South Dakota, and the
San Bartolomé silver mine in Bolivia. 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
to transition to higher-quality, lower-cost production, cash flow
liquidity levels, debt levels, returns, anticipated production,
costs, capital expenditures, expenses, mining rates, crushing
rates, grades, development activity at Palmarejo and Kensington,
planned capital and expansion projects at Rochester, equipment
commissioning, plans for future ore purchases at San Bartolomé, 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
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 report on Form
10-K. 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.
Coeur Mining, Inc. and Subsidiaries Condensed
Consolidated Statements of Comprehensive Income (Loss)
Year ended December 31, 2015
2014 2013 In thousands,
except share data Revenue $ 646,086 $ 635,742 $ 745,994 COSTS
AND EXPENSES Costs applicable to sales(1) 479,654 477,945 463,663
Amortization 143,751 162,436 229,564 General and administrative
32,834 40,845 55,343 Exploration 11,647 21,740 22,360 Litigation
settlement — — 32,046 Write-downs 313,337 1,472,721 772,993
Pre-development, reclamation, and other 17,793 26,037
15,184 Total costs and expenses 999,016 2,201,724 1,591,153
OTHER INCOME (EXPENSE), NET Fair value adjustments, net 5,202 3,618
82,768 Interest expense, net of capitalized interest (45,703 )
(47,546 ) (41,303 ) Other, net (15 ) (5,218 ) (4,985 ) Total other
income (expense), net (40,516 ) (49,146 ) 36,480 Income
(loss) before income and mining taxes (393,446 ) (1,615,128 )
(808,679 ) Income and mining tax (expense) benefit 26,263
428,254 158,116 NET INCOME (LOSS) $ (367,183 ) $
(1,186,874 ) $ (650,563 ) OTHER COMPREHENSIVE INCOME (LOSS), net of
tax: Unrealized gain (loss) on equity securities, net of tax of
$1,446 and $5,362 for the years ended December 31, 2014 and 2013,
respectively (4,154 ) (2,290 ) (8,489 ) Reclassification
adjustments for impairment of equity securities, net of tax of
$(2,552) and $(7,087) for the years ended December 31, 2014 and
2013, respectively 2,346 4,042 11,221 Reclassification adjustments
for realized loss on sale of equity securities, net of tax of
$(219) and $(53) for the years ended December 31, 2014 and 2013
respectively 894 346 83 Other comprehensive
income (loss) (914 ) 2,098 2,815 COMPREHENSIVE INCOME
(LOSS) $ (368,097 ) $ (1,184,776 ) $ (647,748 ) NET INCOME
(LOSS) PER SHARE Basic $ (2.83 ) $ (11.59 ) $ (6.65 )
Diluted $ (2.83 ) $ (11.59 ) $ (6.65 )
Coeur Mining, Inc.
and Subsidiaries Condensed Consolidated Statements of Cash
Flows Year ended December 31,
2015 2014 2013
In thousands CASH FLOWS FROM OPERATING ACTIVITIES: Net
income (loss) $ (367,183 ) (1,186,874 ) (650,563 ) Adjustments:
Amortization 143,751 162,436 229,564 Accretion 14,149 16,246 20,810
Deferred income taxes (40,838 ) (448,905 ) (177,178 ) Loss on
termination of revolving credit facility — 3,035 — Gain on
extinguishment of senior notes (16,187 ) — — Fair value
adjustments, net (5,202 ) (3,618 ) (80,399 ) Litigation settlement
— — 22,046 Stock-based compensation 9,272 9,288 4,812 (Gain) loss
on sale of assets — — (9,801 ) Impairment of equity securities
2,346 6,593 18,308 Write-downs 313,337 1,472,721 772,993 Foreign
exchange and other 16,574 124 (244 ) Changes in operating assets
and liabilities: Receivables 17,560 (11,611 ) 663 Prepaid expenses
and other current assets (3,063 ) 5,635 (15,165 ) Inventory and ore
on leach pads 19,573 12,971 4,031 Accounts payable and accrued
liabilities 9,453 15,507 (25,910 ) CASH PROVIDED BY
OPERATING ACTIVITIES 113,542 53,548 113,967
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (95,193
) (64,244 ) (100,813 ) Acquisitions, net (110,846 ) (21,329 )
(116,898 ) Other (3,979 ) 8 4,478 Purchase of short-term
investments and equity securities (1,880 ) (50,513 ) (8,052 ) Sales
and maturities of short-term investments 605 54,344
34,796 CASH USED IN INVESTING ACTIVITIES (211,293 ) (81,734
) (186,489 ) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of
notes and bank borrowings 153,500 167,784 300,000 Payments on debt,
capital leases, and associated costs (84,715 ) (25,902 ) (60,628 )
Gold production royalty payments (39,235 ) (48,395 ) (57,034 )
Share repurchases — — (27,552 ) Other (542 ) (509 ) (514 ) CASH
PROVIDED BY FINANCING ACTIVITIES 29,008 92,978
154,272 Effect of exchange rate changes on cash and cash
equivalents (1,404 ) (621 ) (500 ) INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (70,147 ) 64,171 81,250 Cash and cash equivalents
at beginning of period 270,861 206,690 125,440
Cash and cash equivalents at end of period $ 200,714 $
270,861 $ 206,690
Coeur Mining, Inc. and
Subsidiaries Condensed Consolidated Balance Sheets
December 31, December
31, 2015 2014 ASSETS In thousands,
except share data CURRENT ASSETS Cash and cash equivalents $
200,714 $ 270,861 Receivables 85,992 107,923 Inventory 81,711
114,931 Ore on leach pads 67,329 48,204 Prepaid expenses and other
10,942 15,523 446,688 557,442 NON-CURRENT ASSETS
Property, plant and equipment, net 195,999 227,911 Mining
properties, net 589,219 501,192 Ore on leach pads 44,582 37,889
Restricted assets 11,633 7,037 Equity securities 2,766 5,982
Receivables 24,768 21,686 Deferred tax assets 1,942 67,515 Other
14,892 9,915 TOTAL ASSETS $ 1,332,489 $
1,436,569
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES Accounts payable $ 48,732 $ 49,052 Accrued
liabilities and other 53,953 51,513 Debt 10,431 17,498 Royalty
obligations 24,893 43,678 Reclamation 2,071 3,871 140,080 165,612
NON-CURRENT LIABILITIES Debt 479,979 451,048 Royalty obligations
4,864 27,651 Reclamation 83,197 66,943 Deferred tax liabilities
147,132 141,076 Other long-term liabilities 55,761 29,911
770,933 716,629 STOCKHOLDERS’ EQUITY Common stock, par value
$0.01 per share; authorized 300,000,000 shares, issued and
outstanding 151,339,136 at December 31, 2015 and authorized
150,000,000 shares, issued and outstanding 103,384,408 at December
31, 2014 1,513 1,034 Additional paid-in capital 3,024,461 2,789,695
Accumulated other comprehensive income (loss) (3,722 ) (2,808 )
Accumulated deficit (2,600,776 ) (2,233,593 ) 421,476
554,328 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $
1,332,489 $ 1,436,569
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
2015 4Q 2015 3Q 2015
2Q 2015 1Q 2015 2014
4Q 2014 Net income (loss) $ (367,183 ) $ (303,000 ) $
(14,219 ) $ (16,677 ) $ (33,287 ) $ (1,155,884 ) $ (1,079,038 )
Interest expense, net of capitalized interest 45,703 11,758 12,446
10,734 10,765 47,546 10,566 Other, net 15 (14,241 ) 8,893 2,852
2,511 5,218 (1,709 ) Income tax provision (benefit) (26,263 )
(17,811 ) (8,260 ) (260 ) 68 (459,244 ) (440,594 ) Amortization
143,751 36,190 35,497 38,974 33,090
162,436 38,570
EBITDA
(203,977 ) (287,104 ) 34,357 35,623 13,147 (1,399,928 ) (1,472,205
) Fair value adjustments, net (5,202 ) (1,546 ) (5,786 ) (2,754 )
4,884 (3,618 ) (7,229 ) Corporate reorganization costs 647 133 514
— — — — Transaction-related costs 2,112 99 — 38 1,975 — — Gain on
debt extinguishments (15,916 ) (15,916 ) — — — — — Inventory
adjustments 10,207 4,901 2,280 1,805 3,684 15,823 14,482
Write-downs 313,337 313,337 — — —
1,472,721 1,472,721
Adjusted
EBITDA $ 101,208 $ 13,904 $ 31,365 $
34,712 $ 23,690 $ 84,998 $ 7,769
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share amounts)
2015 4Q 2015 3Q
2015 2Q 2015 1Q 2015
2014 4Q 2014 Net income (loss) $ (367,183 ) $
(303,000 ) $ (14,219 ) $ (16,677 ) $ (33,287 ) $ (1,155,884 ) $
(1,079,038 ) Fair value adjustments, net (4,109 ) (2,446 ) (3,384 )
(2,618 ) 4,339 (4,323 ) (5,622 ) Stock-based compensation 8,701
2,221 1,541 2,529 2,410 8,976 1,807 Impairment of equity securities
2,346 318 483 31 1,514 6,593 1,979 Accretion of royalty obligation
4,252 727 1,063 1,147 1,315 6,976 1,992 Write-downs 276,510 276,510
— — — 1,021,756 1,021,756 (Gain) loss on debt extinguishments
(15,916 ) (16,187 ) — 524 (253 ) (426 ) (426 ) Loss on revolver
termination — — — — — 3,035 — Inventory adjustments 10,207 4,901
2,280 1,805 3,684 15,823 14,482 Corporate reorganization costs 647
133 514 — — — — Transaction-related costs 2,112 99 — 38 1,975 — —
Foreign exchange (gain) loss on deferred taxes (14,170 ) (1,844 )
(10,092 ) (1,305 ) (929 ) (13,180 ) 5,615
Adjusted net income (loss) $ (96,603 ) $ (38,568 ) $ (21,814
) $ (14,526 ) $ (19,232 ) $ (110,654 ) $ (37,455 )
Adjusted net income (loss) per share $ (0.75 ) $
(0.27 ) $ (0.16 ) $ (0.11 ) $ (0.19 ) $ (1.08 ) $
(0.37 )
Reconciliation of All-in Sustaining Costs per
Silver Equivalent Ounce for Year Ended December 31, 2015
Silver Gold
Total In thousands except per ounce amounts
Palmarejo Rochester
San Bartolomé
Endeavor Total Kensington
Wharf Total Costs applicable to sales,
including amortization (U.S. GAAP) $ 170,899 $ 127,900
$ 93,625 $ 9,059 $ 401,483 $ 147,880 $ 68,575
$ 216,455 $ 617,938
Amortization 32,423 23,906
17,798 5,539 79,666 42,240 16,378
58,618 138,284
Costs applicable to
sales $ 138,476 $ 103,994 $ 75,827 $ 3,520 $ 321,817 $ 105,640
$ 52,197 $ 157,837 $ 479,654
Silver equivalent ounces sold
9,840,705 8,377,823 5,495,369 615,022 24,328,919 36,659,759
Gold
equivalent ounces sold
131,553 73,961 205,514
Costs
applicable to sales per ounce $ 14.07 $ 12.41 $ 13.80 $ 5.72 $
13.23 $ 803 $ 706 $ 768 $ 13.08
Inventory adjustments (1.04
) (0.05 ) (0.17 ) — (0.48 ) (5 ) — (4 ) (0.34 )
Adjusted costs applicable to sales per ounce $ 13.03 $ 12.36
$ 13.63 $ 5.72
$ 12.75 $ 798 $ 706
$
764 $ 12.74
Costs applicable to sales per
realized ounce $ 12.75 $ 11.32 $ 12.31 $ 11.60
Inventory
adjustments (0.94 ) (0.05 ) (0.44 ) (0.30 )
Adjusted costs
applicable to sales per realized ounce $ 11.81 $ 11.27
$
11.87 $ 11.30
Costs applicable to
sales $ 479,654
Treatment and refining costs 4,801
Sustaining capital 53,362
General and administrative
32,834
Exploration 11,647
Reclamation 16,769
Project/pre-development costs 5,674
All-in
sustaining costs $ 604,741 Silver equivalent
ounces sold 24,328,919
Kensington and Wharf silver
equivalent ounces sold 12,330,840
Consolidated silver
equivalent ounces sold 36,659,759
All-in sustaining
costs per silver equivalent ounce $ 16.50
Inventory adjustments $ (0.34 )
Adjusted all-in
sustaining costs per silver equivalent ounce $
16.16 All-in sustaining costs per realized
silver equivalent ounce $ 14.62
Inventory adjustments $ (0.30 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
14.32 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
December 31, 2015 Silver
Gold Total In thousands
except per ounce amounts Palmarejo
Rochester San Bartolomé Endeavor
Total Kensington Wharf
Total Costs applicable to sales, including amortization
(U.S. GAAP) $ 47,068 $ 27,716 $ 20,665 $
2,579 $ 101,735 $ 33,298 $ 25,271 $ 58,569 $ 160,304
Amortization 7,287 4,944 4,311 1,519
18,061 9,503 7,484 16,987 35,048
Costs applicable to sales $ 39,781 $ 22,772 $ 20,061
$ 1,060 $ 83,674 $ 23,795 $ 17,787 $ 41,582 $ 125,256
Silver
equivalent ounces sold 2,588,185 1,820,471 1,564,155 192,768
6,165,579 9,885,699
Gold equivalent ounces sold
29,988 32,014 62,002
Costs applicable to sales per ounce $ 15.37 $
12.51 $ 12.83 $ 5.50 $ 13.57 $ 793 $ 556 $ 671 $ 12.67
Inventory
adjustments (1.89 ) (0.14 ) (0.35 ) — (0.92 ) (16 ) —
(8 ) (0.62 )
Adjusted costs applicable to sales per
ounce $ 13.48 $ 12.37 $ 12.48 $ 5.50
$ 12.65
$ 777 $ 556
$ 663 $ 12.05
Costs applicable to sales per realized ounce $ 13.73 $ 11.32
$ 12.56 $ 10.98
Inventory adjustments (1.69 ) (0.13 ) (0.85
) (0.54 )
Adjusted costs applicable to sales per realized
ounce $ 12.04 $ 11.19
$ 11.71 $ 10.44
Costs applicable to sales $ 125,256
Treatment and refining costs 964
Sustaining capital
16,567
General and administrative 8,855
Exploration
1,689
Reclamation 4,963
Project/pre-development costs
2,691
All-in sustaining costs $ 160,985
Silver equivalent ounces sold 6,165,579
Kensington and
Wharf silver equivalent ounces sold 3,720,120
Consolidated silver equivalent ounces sold 9,885,699
All-in sustaining costs per silver equivalent ounce $
16.28 Inventory adjustments $ (0.62 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 15.66 All-in sustaining costs per
realized silver equivalent ounce $ 14.09
Inventory adjustments $ (0.54 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
13.55 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
September 30, 2015 Silver
Gold Total In thousands
except per ounce amounts Palmarejo
Rochester San Bartolomé Endeavor
Total Kensington 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
Amortization 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 realized ounce $ 10.25 $ 10.90
$ 11.14 $ 10.95
Inventory adjustments (0.24 ) (0.01 ) (0.14
) (0.21 )
Adjusted costs applicable to sales per realized
ounce $ 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
realized silver equivalent ounce $ 13.35
Inventory adjustments $ (0.21 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
13.14 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
June 30, 2015 Silver
Gold In thousands except per ounce amounts
Palmarejo Rochester San
Bartolomé Endeavor Total Silver
Kensington Wharf Total Gold
Total Combined 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 realized ounce $ 12.68 10.98
12.01 $ 11.72
Inventory adjustments (0.61 ) (0.04 ) (0.26 )
(0.18 )
Adjusted costs applicable to sales per realized
ounce $ 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
realized silver equivalent ounce $ 14.99
Inventory adjustments $ (0.18 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
14.81 Reconciliation of 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 realized ounce $
14.85 $ 11.94 $ 13.47 $ 12.76
Inventory adjustments (1.33 )
(0.03 ) (0.57 ) $ —
Adjusted costs
applicable to sales per realized ounce $ 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 realized silver equivalent ounce
$ 16.46 Inventory adjustments $ (0.41 )
Adjusted all-in sustaining costs per realized silver equivalent
ounce $ 16.05 Reconciliation of
All-in Sustaining Costs per Silver Equivalent Ounce for Year
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) $
256,707 $ 112,252 $ 109,082 $ 8,514 $
486,555 $ 148,961 $ 635,516
Amortization 69,431
20,790 19,423 4,308 113,952 43,619
157,571
Costs applicable to sales $ 187,276 $
91,462 $ 89,659 $ 4,206 $ 372,603 $ 105,342 $ 477,945
Silver
equivalent ounces sold 12,161,719 6,309,912 6,275,769 586,242
25,333,642 31,982,962
Gold ounces sold
110,822
Costs applicable to sales
per ounce $ 15.40 $ 14.49 $ 14.29 $ 7.17 $ 14.71 $ 951 $ 14.94
Inventory adjustments (0.14 ) (0.18 ) (0.16 ) — (0.58
) (11 ) (0.49 )
Adjusted costs applicable to sales per ounce
$ 15.26 $ 14.31 $ 14.13 $ 7.17
$ 14.13
$ 940 $ 14.45
Costs
applicable to sales per realized ounce $ 14.69 $ 13.94 $ 14.24
$
14.26
Inventory adjustments (0.92 ) (0.17 ) (0.56 )
$ (0.47 )
Adjusted costs applicable to sales per realized
ounce $ 13.77 $ 13.77
$ 13.68 $
13.79
Costs applicable to sales $ 477,945
Treatment and refining costs 4,943
Sustaining capital
61,199
General and administrative 40,845
Exploration
21,740
Reclamation 7,468
Project/pre-development
costs 16,588
All-in sustaining costs $
630,728 Silver equivalent ounces sold 25,333,642
Kensington silver equivalent ounces sold 6,649,320
Consolidated silver equivalent ounces sold 31,982,962
All-in sustaining costs per silver equivalent ounce $
19.72 Inventory adjustments $ (0.49 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 19.23 All-in sustaining costs per
realized silver equivalent ounce $ 18.81
Inventory adjustments $ (0.47 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
18.34 Reconciliation of 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 realized
ounce $ 18.92 $ 13.20 $ 15.60 $ 15.05
Inventory
adjustments (4.43 ) (0.45 ) (1.93 ) $ (1.72 )
Adjusted costs applicable to sales per realized ounce $
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 realized
silver equivalent ounce $ 19.76
Inventory adjustments $ (1.72 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
18.04
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160210006630/en/
Coeur Mining, Inc.Rebecca Hussey, Senior Analyst, Investor
Relations(312) 489-5827www.coeur.com
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