CDE Coeur Mining Inc

Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) reported second quarter 2016 revenue of $182.0 million, net income of $14.5 million, or $0.09 per share, and adjusted net income1 of $17.3 million, or $0.11 per share.

Continued cost reductions resulted in a 16% decline in costs applicable to sales ("CAS") per silver equivalent ounce1 ("AgEqOz"), a 21% decrease in CAS per gold equivalent ounce1 ("AuEqOz"), and an 11% reduction in all-in sustaining costs ("AISC") per AgEqOz1, all compared to the same quarter last year.

Cash flow from operating activities was $45.9 million, almost a $40 million increase quarter-over-quarter. Free cash flow1 totaled $12.2 million in the second quarter, approximately $37 million higher than the first quarter.

Highlights

• Silver production was 4.0 million ounces and gold production was 92,727 ounces, or 9.6 million silver equivalent ounces1, representing a 19% increase over the first quarter
• Silver and gold sales were 4.0 million ounces and 88,543 ounces, respectively, or 9.3 million silver equivalent ounces1, representing a 12% increase over the first quarter
• CAS and adjusted CAS were $10.15 and $10.05 per realized AgEqOz1, representing decreases of 11% and 9%, respectively, compared to the first quarter. Using a 60:1 equivalence ratio, CAS and adjusted CAS were $10.82 and $10.71 per AgEqOz1, representing quarter-over-quarter decreases of 12% and 11%, respectively
• CAS and adjusted CAS per AuEqOz1 were $649 and $644, each representing a decrease of 11% compared to the first quarter
• AISC and adjusted AISC were $13.36 and $13.27 per realized AgEqOz1, representing quarter-over-quarter decreases of 4% and 3%, respectively. Using a 60:1 equivalence ratio, AISC and adjusted AISC were $14.92 and $14.82 per AgEqOz1, each representing a quarter-over-quarter decrease of 8%
• Net income and adjusted net income1 were $14.5 million and $17.3 million, or $0.09 and $0.11 per share, respectively
• EBITDA1 and adjusted EBITDA1 were $62.1 million and $72.4 million, respectively, with EBITDA increasing almost threefold and adjusted EBITDA nearly doubling compared to the first quarter
• Capital expenditures totaled $23.3 million, driven by underground development of Guadalupe and Independencia at Palmarejo and the Jualin deposit at Kensington
• Cash and equivalents were $257.6 million at June 30, 2016, which includes proceeds from a $75.0 million "at-the-market" stock offering completed during the quarter
• Completed sales of non-core assets for total consideration of $12.9 million during the second quarter and $23.8 million year-to-date, including the sale of a 2.5% net smelter returns royalty on the Correnso mine in New Zealand on July 25, 2016
• Received regulatory approval for the construction of an additional 120 million tons of leach pad capacity at Rochester; preliminary construction activities have now begun
• Subsequent to quarter-end, satisfied the minimum ounce obligation on the Franco-Nevada royalty, triggering a shift to improved terms which are expected to result in a significant increase in free cash flow1 at Palmarejo (previously announced June 23, 2014)
• On July 15, 2016, repaid $99 million remaining principal on term loan plus a $4.4 million prepayment premium, for a total of $103.4 million, reducing total debt by nearly 20% and eliminating approximately $9 million of annual interest expense

"In addition to strong production increases, we again delivered industry-leading cost reductions during the second quarter. Combined with higher realized silver and gold prices, our quarterly adjusted EBITDA nearly doubled to $72.4 million, and we generated positive free cash flow of $12.2 million during the quarter," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer.

"Along with our strong operating and financial performance, we achieved two significant milestones subsequent to quarter-end: the satisfaction of the minimum ounce obligation on Palmarejo's Franco-Nevada royalty and the repayment of the $100 million term loan. The transition to the improved Franco-Nevada terms represents a watershed event, positioning Palmarejo to be a significant contributor to free cash flow going forward. Combined with the debt repayment and the commensurate reduction to interest expense, our operations are poised to generate significant free cash flow in the second half of 2016.

"During the second half of the year, we plan to increase our exploration budget by approximately $8 million, primarily to upgrade resources to reserves at Palmarejo, Kensington, and Rochester. Nearly half of the $8 million increase will go toward expensed exploration activities and results in an increase to our full-year expensed exploration guidance range to $14 - $16 million. The other half of the $8 million increase will go toward capitalized exploration, resulting in an increase to our full-year guidance range to $16 - $18 million. In addition to this high-return incremental investment in exploration activities, we anticipate increasing our capital expenditure budget by an additional $10 million during the second half, bringing the total increase to $15 million for full-year guidance of $105 - $115 million. These additional funds will support additional underground development at Guadalupe and Jualin and will allow us to accelerate the construction of incremental leach pad capacity at Rochester now that all permits have been received.” (see "Non-U.S. GAAP Measures")

 

Financial Highlights (Unaudited)

  (Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics)     2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Revenue $ 182.0     $ 148.4     $ 164.2     $ 162.6     $ 166.3 Costs Applicable to Sales $ 100.5 $ 101.6 $ 125.3 $ 120.2 $ 119.1 General and Administrative Expenses $ 7.4 $ 8.3 $ 8.8 $ 6.7 $ 8.5 Net Income (Loss) $ 14.5 $ (20.4 ) $ (303.0 ) $ (14.2 ) $ (16.7 ) Net Income (Loss) Per Share $ 0.09 $ (0.14 ) $ (2.28 ) $ (0.11 ) $ (0.12 ) Adjusted Net Income (Loss)1 $ 17.3 $ (11.0 ) $ (44.0 ) $ (18.1 ) $ (18.1 ) Adjusted Net Income (Loss)1 Per Share $ 0.11 $ (0.07 ) $ (0.31 ) $ (0.13 ) $ (0.13 ) Weighted Average Shares 157.9 150.2 145.0 135.5 135.0 EBITDA1 $ 62.1 $ 20.8 $ (272.9 ) $ 25.5 $ 32.8 Adjusted EBITDA1 $ 72.4 $ 36.8 $ 32.9 $ 33.6 $ 36.4 Cash Flow from Operating Activities $ 45.9 $ 6.6 $ 44.4 $ 36.2 $ 36.9 Capital Expenditures $ 23.3 $ 22.2 $ 30.0 $ 23.9 $ 23.7 Free Cash Flow1 $ 12.2 $ (24.7 ) $ 5.4 $ 2.2 $ 3.4 Cash, Equivalents & Short-Term Investments $ 257.6 $ 173.4 $ 200.7 $ 205.7 $ 205.9 Total Debt2 $ 511.1 $ 511.1 $ 490.4 $ 546.0 $ 547.7 Average Realized Price Per Ounce – Silver $ 17.38 $ 15.16 $ 14.27 $ 14.66 $ 16.23 Average Realized Price Per Ounce – Gold $ 1,255 $ 1,178 $ 1,093 $ 1,116 $ 1,179 Silver Ounces Produced 4.0 3.4 4.0 3.8 4.3 Gold Ounces Produced 92,727 78,072 91,551 85,769 80,855 Silver Equivalent Ounces Produced1 9.6 8.1 9.5 9.0 9.1 Silver Ounces Sold 4.0 3.5 4.4 4.0 4.0 Gold Ounces Sold 88,543 79,091 92,032 91,118 84,312 Silver Equivalent Ounces Sold1 9.3 8.3 9.9 9.5 9.1 Silver Equivalent Ounces Sold (Realized)1 10.4 9.7 11.3 10.9 10.1 Adjusted CAS per AgEqOz1 $ 10.71 $ 12.05 $ 12.65 $ 12.07 $ 12.56 Adjusted CAS per Realized AgEqOz1 $ 10.05 $ 11.08 $ 11.71 $ 11.00 $ 11.75 Adjusted CAS per AuEqOz1 $ 644 $ 721 $ 663 $ 783 $ 816 Adjusted AISC per AgEqOz1 $ 14.82 $ 16.05 $ 15.66 $ 15.17 $ 16.60 Adjusted AISC per Realized AgEqOz1 $ 13.27   $ 13.73 $ 13.55 $ 13.14 $ 14.81  

Financial Results

Second quarter revenue increased 23% quarter-over-quarter and 9% year-over-year to $182.0 million based on average realized silver and gold prices of $17.38 and $1,255, respectively. Silver contributed 38% of metal sales and gold contributed 62% during the second quarter. Costs applicable to sales declined 1% quarter-over-quarter and 16% year-over-year to $100.5 million during the second quarter.

Net income was $14.5 million, or $0.09 per share, in the second quarter, compared to net losses of $20.4 million, or $0.14 per share, in the first quarter, and $16.7 million, or $0.12, in the second quarter 2015. Adjusted net income1 was $17.3 million, or $0.11 per share, compared to adjusted net losses1 of $11.0 million, or $0.07 per share, in the first quarter and $18.1 million, or $0.13 per share, in the second quarter 2015. Adjusted net income for the second quarter primarily excludes foreign exchange losses, fair value adjustments to royalty obligations, and gains on sales of non-core assets. Second quarter cash flow from operating activities was $45.9 million, nearly $40 million higher than the prior quarter, despite a $1.6 million increase in working capital, resulting from higher production and average realized metal prices as well as lower costs applicable to sales on a per ounce basis.

Second quarter adjusted EBITDA1 was $72.4 million, nearly doubling both quarter-over-quarter and year-over-year. At June 30, 2016, LTM adjusted EBITDA1 totaled $170.9 million, a 26% increase over the first quarter and 81% higher than the same period last year.

Second quarter general and administrative expenses were $7.4 million, decreasing 11% quarter-over-quarter and 12% year-over-year. Second quarter capital expenditures of $23.3 million were 5% higher compared to the first quarter, driven by development of the Guadalupe and Independencia deposits at Palmarejo and the Jualin deposit at Kensington, and 2% lower compared to the same period last year. For the first six months of 2016, general and administrative expenses were $15.7 million and capital expenditures totaled $45.5 million.

Operations

Highlights of second quarter 2016 results for each of the Company's operating segments are provided below.

Palmarejo, Mexico

                      (Dollars in millions, except per ounce amounts) 2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Underground Operations: Tons mined 283,971 215,642 189,383 190,399 172,730 Average silver grade (oz/t) 5.40 4.21 3.96 4.11 3.90 Average gold grade (oz/t) 0.08 0.07 0.06 0.10 0.09 Surface Operations: Tons mined 1,695 35,211 102,018 247,071 257,862 Average silver grade (oz/t) 7.77 4.18 3.86 3.56 3.47 Average gold grade (oz/t) 0.07 0.04 0.03 0.03 0.03 Processing: Total tons milled 270,142 246,533 301,274 427,635 435,841 Average recovery rate – Ag 89.5% 89.1% 95.4% 87.9% 78.5% Average recovery rate – Au 86.4% 92.1% 88.8% 84.7% 76.2% Silver ounces produced (000's) 1,307 933 1,126 1,422 1,247 Gold ounces produced 18,731 14,668 14,326 22,974 18,127 Silver equivalent ounces produced1 (000's) 2,431 1,813 1,985 2,800 2,335 Silver ounces sold (000's) 1,350 928 1,465 1,425 1,228 Gold ounces sold 19,214 12,899 18,719 25,000 15,706 Silver equivalent ounces sold1 (000's) 2,502 1,702 2,588 2,925 2,170 Silver equivalent ounces sold1 (realized) (000's) 2,737 1,930 2,840 3,325 2,374 Metal sales $48.3 $29.8 $41.6 $49.2 $38.9 Costs applicable to sales $22.9 $21.0 $39.8 $34.1 $30.1 Adjusted CAS per AgEqOz1 $9.02 $11.54 $13.48 $11.40 $13.21 Adjusted CAS per realized AgEqOz1 $8.24 $10.18 $12.04 $10.01 $12.07 Exploration expense $0.6 $0.8 $0.5 $1.1 $1.8 Cash flow from operating activities $11.3 $3.4 $20.3 $22.9 $9.7 Sustaining capital expenditures $5.5 $6.6 $(1.4) $1.1 $2.7 Development capital expenditures $3.4 $2.2 $7.0 $9.4 $8.0 Total capital expenditures $8.9 $8.8 $5.6 $10.5 $10.7 Gold production royalty payments $10.5 $9.1

$9.0

$10.2 $9.8 Free cash flow1 $(8.1) $(14.5)

$5.7

$2.2 $(10.8)  

• Silver equivalent1 production increased 34% compared to the first quarter as a result of higher grades and a 32% increase in tons mined from underground operations
• Metal sales of $48.3 million increased 62% quarter-over-quarter and 24% year-over-year
• Second quarter adjusted CAS per realized AgEqOz1 were $8.24 and adjusted CAS per AgEqOz1 (60:1 equivalence) were $9.02, representing declines of 19% and 22%, respectively, compared to the first quarter
• Transition to lower-tonnage, higher-grade, higher-margin underground operations at Guadalupe and Independencia remains on track
• Open pit mining operations were completed in mid-April while limited mining of the legacy underground area has extended into the third quarter
• Development and mining activities at Independencia continue on schedule; mining rate of 1,000 tons per day expected to be reached by year-end
• Subsequent to quarter-end, the minimum royalty ounce obligation was met, resulting in the new, more favorable Franco-Nevada stream agreement becoming effective, which is expected to significantly improve Palmarejo's cash flows going forward
• Maintaining full-year 2016 guidance of 3.9 - 4.4 million ounces of silver and 67,000 - 72,000 ounces of gold at CAS per AgEqOz1 of $12.50 - $13.50

 

Rochester, Nevada

                      (Dollars in millions, except per ounce amounts) 2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Ore tons placed 6,402,013 4,374,459 4,411,590 4,128,868 3,859,965 Average silver grade (oz/t) 0.54 0.64 0.60 0.59 0.61 Average gold grade (oz/t) 0.003 0.004 0.003 0.003 0.003 Silver ounces produced (000's) 1,197 929 1,107 1,086 1,294 Gold ounces produced 13,940 10,460 11,564 10,892 16,411 Silver equivalent ounces produced1 (000's) 2,033 1,557 1,800 1,740 2,279 Silver ounces sold (000's) 1,137 1,079 1,125 1,304 1,120 Gold ounces sold 12,909 11,672 11,587 13,537 15,085 Silver equivalent ounces sold1 (000's) 1,912 1,779 1,821 2,116 2,025 Silver equivalent ounces sold1 (realized) (000's) 2,070 1,986 2,004 2,333 2,221 Metal sales $35.8 $30.0 $29.0 $34.6 $36.3 Costs applicable to sales $21.7 $22.5 $22.8 $25.4 $24.4 Adjusted CAS per AgEqOz1 $11.30 $12.61 $12.37 $12.01 $12.01 Adjusted CAS per realized AgEqOz1 $10.43 $11.29 $11.19 $10.89 $10.94 Exploration expense $0.2 $0.1 $0.1 $— $0.5 Cash flow from operating activities $9.2 $2.1 $0.4 $6.5 $8.8 Sustaining capital expenditures $2.6 $2.5 $5.3 $1.8 $2.4 Development capital expenditures $1.3 $0.8 $5.5 $3.5 $3.5 Total capital expenditures $3.9 $3.3 $10.8 $5.3 $5.9 Free cash flow1 $5.3 $(1.2) $(10.4) $1.2 $2.9  

• Silver equivalent production1 increased 31% in the second quarter due mostly to a 46% increase in tons placed quarter-over-quarter. The relatively higher portion of tons placed from run-of-mine led to a temporary decrease in grades for the quarter
• Elevated crushing rates and tons placed in the second quarter are expected to drive further production increases in the second half of the year
• Metal sales of $35.8 million increased 19% quarter-over-quarter and declined 2% year-over-year
• Second quarter adjusted CAS per realized AgEqOz1 were $10.43 and adjusted CAS per AgEqOz1 (60:1 equivalence) were $11.30, representing declines of 8% and 10%, respectively, compared to the prior quarter
• The Record of Decision was received from the Bureau of Land Management on June 30, allowing for the construction of an additional 120 million tons of leach pad capacity to begin in the second half of 2016
• Maintaining full-year 2016 guidance of 4.8 - 5.3 million ounces of silver and 48,000 - 55,000 ounces of gold at CAS per AgEqOz1 of $11.25 - $12.25

 

Kensington, Alaska

                      (Dollars in millions, except per ounce amounts) 2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Tons milled 157,117 159,360 159,666 165,198 170,649 Average gold grade (oz/t) 0.22 0.21 0.22 0.19 0.18 Average recovery rate 94.1% 95.8% 96.0% 93.9% 94.9% Gold ounces produced 32,210 31,974 33,713 28,799 29,845 Gold ounces sold 30,178 31,648 29,989 28,084 36,607 Metal sales $36.5 $35.7 $31.7 $30.5 $42.5 Costs applicable to sales $22.6 $24.4 $23.7 $25.0 $27.5 Adjusted CAS per AuOz1 $740 $761 $777 $842 $745 Exploration expense $1.0 $— $0.3 $0.2 $0.4 Cash flow from operating activities $7.7 $13.7 $4.5 $8.9 $12.0 Sustaining capital expenditures $4.3 $4.4 $5.5 $1.0 $4.2 Development capital expenditures $3.2 $3.7 $4.0 $4.5 $0.5 Total capital expenditures $7.5 $8.1 $9.5 $5.5 $4.7 Free cash flow1 $0.2 $5.6 $(5.0) $3.4 $7.3  

• Consistent production and costs achieved in the second quarter with 32,210 gold ounces produced at an historical low adjusted CAS per AuOz1 of $740
• Metal sales of $36.5 million increased 2% quarter-over-quarter and declined 14% year-over-year due to fewer ounces sold
• Development of the high-grade Jualin deposit is now 50% complete with an initial reserve estimate expected at year-end
• Maintaining full-year 2016 production guidance of 115,000 - 125,000 ounces of gold at CAS per AuOz1 of $825 - $875

 

Wharf, South Dakota

                      (Dollars in millions, except per ounce amounts) 2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Ore tons placed 915,631 974,663 1,147,130 1,149,744 887,409 Average silver grade (oz/t) 0.28 0.30 0.21 0.21 0.30 Average gold grade (oz/t) 0.037 0.031 0.032 0.035 0.025 Average plant recovery rate – Au 89.6% 96.6% 97.3% 92.8% 76.7% Gold ounces produced 27,846 20,970 31,947 23,104 16,472 Silver ounces produced (000's) 35 13 18 19 19 Gold equivalent ounces produced1 28,433 21,186 32,231 23,427 16,794 Silver ounces sold (000's) 33 15 17 19 13 Gold ounces sold 26,242 22,872 31,202 24,815 17,131 Gold equivalent ounces sold1 26,786 23,122 31,485 25,132 17,348 Metal sales $34.0 $27.9 $35.7 $28.0 $20.4 Costs applicable to sales $14.3 $15.5 $17.8 $17.8 $16.6 Adjusted CAS per AuEqOz1 $534 $667 $556 $716 $970 Exploration expense $— $— $0.1 $— $— Cash flow from operating activities $16.2 $9.7 $18.1 $12.9 $8.2 Sustaining capital expenditures $1.5 $1.4 $1.2 $0.7 $1.2 Development capital expenditures $— $— $— $— $— Total capital expenditures $1.5 $1.4 $1.2 $0.7 $1.2 Free cash flow1 $14.7 $8.3 $16.9 $12.2 $7.0  

• Gold equivalent production1 increased 34% compared to the prior quarter due to higher grades and timing of recoveries, driving a 20% decrease quarter-over-quarter in adjusted CAS per AuEqOz1 to $534
• Metal sales of $34.0 million increased 22% quarter-over-quarter and 67% year-over-year
• Higher production levels expected in the second half of 2016 as a result of seasonal mining in the higher-grade Golden Reward pit
• Recovery rates, which were lower in the second quarter as a result of plant maintenance, are expected to return to the high-90% level in the third quarter
• Maintaining full-year 2016 guidance of 90,000 - 95,000 ounces of gold at CAS per AuEqOz1 of $650 - $750

 

San Bartolomé, Bolivia

                      (Dollars in millions, except per ounce amounts) 2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Tons milled 440,441 407,806 475,695 373,201 457,232 Average silver grade (oz/t) 3.79 3.64 3.84 3.76 3.73 Average recovery rate 87.4% 93.1% 84.9% 84.0% 87.6% Silver ounces produced (000's) 1,458 1,382 1,550 1,178 1,495 Silver ounces sold (000's) 1,418 1,384 1,564 1,202 1,439 Metal sales $25.2 $21.3 $22.4 $17.4 $23.4 Costs applicable to sales $18.6 $17.5 $20.0 $17.5 $19.2 Adjusted CAS per AgOz1 $12.97 $12.56 $12.48 $14.41 $13.26 Exploration expense $— $— $— $0.1 $— Cash flow from operating activities $11.2 $5.5 $10.0 $5.7 $5.4 Sustaining capital expenditures $1.3 $0.5 $2.5 $1.8 $1.0 Development capital expenditures $— $— $— $— $— Total capital expenditures $1.3 $0.5 $2.5 $1.8 $1.0 Free cash flow1 $9.9 $5.0 $7.5 $3.9 $4.4  

• Adjusted CAS per AgOz1 were $12.97, 3% higher quarter-over-quarter but down 2% year-over-year
• Metal sales of $25.2 million increased 18% quarter-over-quarter and 8% year-over-year
• Purchases of high grade ore continue to contribute approximately one-third of production, supplementing cash flow generated from mined ore
• Maintaining full-year 2016 guidance of 5.8 - 6.1 million ounces of silver at CAS per AgOz1 of $13.50 - $14.25

 

Coeur Capital

                      (Dollars in millions, except per ounce amounts) 2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Tons milled 37,521 86,863 198,927 191,913 191,175 Average silver grade (oz/t) 1.66 3.17 2.05 1.39 2.35 Average recovery rate 52.5% 41.9% 42.1% 45.4% 45.4% Silver ounces produced (000's) 33 115 171 121 204 Silver ounces sold (000's) 35 123 193 95 209 Metal sales $0.5 $1.9 $2.4 $1.3 $3.1 Royalty revenue $1.8 $1.8 $1.5 $1.6 $1.8 Costs applicable to sales (Endeavor silver stream) $0.3 $1.0 $1.0 $0.5 $1.4 CAS per AgOz1 $7.94 $5.35 $5.50 $4.99 $6.46 Cash flow from operating activities $(3.2) $0.8 $0.8 $3.1 $2.1 Free cash flow1 $(3.2) $0.8 $0.8 $3.1 $2.1  

• Completed the sale of a number of Coeur Capital's assets in the second quarter for total consideration of approximately $9.9 million
• Completed the sale of a 2.5% net smelter returns royalty on the Correnso mine in New Zealand in July 2016 bringing total consideration for non-core asset sales to $23.8 million year-to-date
• Coeur Capital's primary remaining asset is a silver stream on the Endeavor mine in New South Wales, Australia
• Silver production received from the stream on the Endeavor mine continued to decline in the second quarter following a curtailment of production by the operator due to lower lead and zinc prices
• Coeur is maintaining its revised 2016 production guidance for Endeavor of 175,000 - 200,000 silver ounces

Exploration

Costs associated with exploration in the second quarter totaled $6.1 million, including $2.2 million (expensed) for discovery of new silver and gold mineralization and $3.9 million (capitalized) for definition and expansion of mineralized material. Coeur's exploration program ramped up to 11 active drill rigs late in the second quarter: six at Palmarejo, two at Kensington, two at Rochester, and one at Wharf. A total of 139,501 feet (42,520 meters) of combined core and reverse circulation drilling was completed during the quarter.

Coeur's 2016 exploration program gained significant momentum in the second quarter with a continued focus on brownfield exploration as well as a ramp up of greenfield exploration programs. Second quarter priorities included:

• Expanding the Guadalupe-Independencia corridor, including deeper areas of the Guadalupe and Independencia deposits and the Los Bancos and Nación veins
• Underground infill and expansion drilling of the high-grade Jualin deposit at Kensington, as well as four zones within the Kensington Main deposit and the Raven vein
• Infill and expansion drilling of the higher-grade East Rochester deposit, which is expected to be the focus of a revised economic analysis in 2016
• Ramp up of early-stage exploration projects in the U.S. and in north-central Mexico; drilling will commence on two projects in the second half of 2016

In-line with Coeur's success-based exploration strategy, the exploration guidance has been revised higher for 2016 to $14 - 16 million in 2016 (from $11 - $13 million), with an additional $16 - $18 million of capital allocated to resource conversion (from $11 - $13 million).

Full-Year 2016 Outlook

Full-year 2016 production and cost guidance remain unchanged. In light of positive exploration results in the first half of the year as well as an improved metal price environment, Coeur's exploration budget has increased by $8 million, nearly half of which has been added to exploration expense guidance and the balance of which has been earmarked for capitalized exploration and added to capital expenditures guidance. The $15 million increase to capital expenditures guidance also includes additional funds being allotted for development at Guadalupe and Jualin and to accelerate construction of incremental leach pad capacity at Rochester.

 

2016 Production Outlook

  (silver and silver equivalent ounces in thousands)     Silver     Gold     Silver Equivalent1 Palmarejo     3,875 - 4,400     67,000 - 72,000     7,895 - 8,720 Rochester 4,750 - 5,250 48,000 - 55,000 7,630 - 8,550 San Bartolomé 5,750 - 6,050 — 5,750 - 6,050 Endeavor 175 - 200 — 175 - 200 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 CAS per AgEqOz1 – Palmarejo         $12.50 - $13.50         $13.03 CAS per AgEqOz1 – Rochester $11.25 - $12.25 $12.36 CAS per AgOz1 – San Bartolomé $13.50 - $14.25 $13.63 CAS per AuOz1 – Kensington $825 - $875 $798 CAS per AuEqOz1 – Wharf $650 - $750 $706 Capital Expenditures $105 - $115 $95.2 General and Administrative Expenses $28 - $32 $32.8 Exploration Expense $14 - $16 $11.6 AISC per AgEqOz1 $16.00 - $17.25 $16.16  

Conference Call Information

Coeur will report its full operational and financial results for second quarter 2016 on July 27, 2016 after the New York Stock Exchange closes for trading. There will be a conference call on July 28, 2016 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   A replay of the call will be available through August 11, 2016.   Replay numbers: (877) 344-7529 (US) (855) 669-9658 (Canada) (412) 317-0088 (International)   Conference ID: 100 88 894  

About Coeur

Coeur Mining is a well-diversified, growing precious metals 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 complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé silver mine in Bolivia. The Company also has a non-operating interest in the Endeavor mine in Australia as well as royalty interests in Ecuador and New Zealand. In addition, the Company has two silver-gold exploration stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. Coeur conducts ongoing exploration activities in Alaska, Nevada, Mexico, Bolivia and Argentina.

Cautionary Statement

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated cash flow, production, costs, capital expenditures, expenses, mining rates, recovery rates, operations at Palmarejo, development activity at Palmarejo and Kensington, expansion projects at Rochester, 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 reports on Forms 10-K and 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 EBITDA, 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 EBITDA, 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. EBITDA, 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. Free cash flow is defined as cash flow from operating activities less capital expenditures and gold production royalty payments. Please see table in Appendix for the calculation of consolidated free cash flow.

2. Includes capital leases. Net of debt issuance costs and premium received.

  Coeur Mining, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Loss)       Three months ended     Six months ended June 30, June 30, 2016   2015     2016   2015 In thousands, except share data Revenue $ 182,007   $ 166,263 $ 330,394   $ 319,219 COSTS AND EXPENSES Costs applicable to sales(1) 100,465 119,097 202,020 234,160 Amortization 37,505 38,974 65,470 72,064 General and administrative 7,400 8,451 15,676 17,286 Exploration 2,233 3,579 3,963 7,845 Write-downs — — 4,446 — Pre-development, reclamation, and other 4,364   2,267   8,568   9,030   Total costs and expenses 151,967 172,368 300,143 340,385 OTHER INCOME (EXPENSE), NET Fair value adjustments, net (3,579 ) 2,754 (12,274 ) (2,130 ) Interest expense, net of capitalized interest (10,875 ) (10,734 ) (21,995 ) (21,499 ) Other, net (1,857 ) (2,852 ) (543 ) (5,362 ) Total other income (expense), net (16,311 ) (10,832 ) (34,812 ) (28,991 ) Income (loss) before income and mining taxes 13,729 (16,937 ) (4,561 ) (50,157 ) Income and mining tax (expense) benefit 768   260   (1,338 ) 192   NET INCOME (LOSS) $ 14,497   $ (16,677 ) $ (5,899 ) $ (49,965 ) OTHER COMPREHENSIVE INCOME (LOSS), net of tax: Unrealized gain (loss) on equity securities, net of tax of $(1,164) and $(2,174) for the three and six months ended June 30, 2016, respectively, and $7 for the three months June 30, 2015 2,103 (1,312 ) 3,146 (2,813 ) Reclassification adjustments for impairment of equity securities 20 31 20 1,545 Reclassification adjustments for realized (gain) loss on sale of equity securities (314 ) 904   273   904   Other comprehensive income (loss) 1,809   (377 ) 3,439   (364 ) COMPREHENSIVE INCOME (LOSS) $ 16,306   $ (17,054 ) $ (2,460 ) $ (50,329 )   NET INCOME (LOSS) PER SHARE Basic $ 0.09   $ (0.12 ) $ (0.04 ) $ (0.42 )   Diluted $ 0.09   $ (0.12 ) $ (0.04 ) $ (0.42 )   Coeur Mining, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows       Three months ended June 30,     Six months ended June 30, 2016   2015 2016   2015 In thousands CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 14,497 $ (16,677 ) $ (5,899 ) (49,965 ) Adjustments: Amortization 37,505 38,974 65,470 72,064 Accretion 2,848 3,526 6,017 6,676 Deferred income taxes (15,170 ) (5,053 ) (17,275 ) (7,237 ) Fair value adjustments, net 3,579 (2,754 ) 12,274 2,130 Stock-based compensation 2,307 2,604 5,222 4,754 Impairment of equity securities 20 31 20 1,545 Write-downs — — 4,446 — Other 1,910 4,224 474 5,303 Changes in operating assets and liabilities: Receivables (12,402 ) (2,342 ) (8,921 ) 214 Prepaid expenses and other current assets (898 ) 160 381 (1,167 ) Inventory and ore on leach pads (7,686 ) 4,649 (15,508 ) 5,333 Accounts payable and accrued liabilities 19,429   9,662   5,855   (6,095 ) CASH PROVIDED BY OPERATING ACTIVITIES 45,939   37,004   52,556   33,555   CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (23,288 ) (23,677 ) (45,460 ) (41,297 ) Acquisitions, net — (9,152 ) — (111,170 ) Proceeds from the sale assets 7,293 8 11,302 165 Purchase of investments (92 ) (1,597 ) (99 ) (1,873 ) Sales and maturities of investments 648 399 1,645 469

Other

(1,446

)

(111

)

 

(2,919

)

(1,841

)

CASH USED IN INVESTING ACTIVITIES (16,885 ) (34,130 ) (35,531 ) (155,547 ) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock 73,071 — 73,071 — Issuance of notes and bank borrowings — 100,000 — 153,500 Payments on debt, capital leases, and associated costs (6,712 ) (66,626 ) (12,683 ) (75,220 ) Gold production royalty payments (10,461 ) (9,754 ) (19,592 ) (20,122 ) Other (448 ) (72 ) (728 ) (495 ) CASH PROVIDED (USED IN) BY FINANCING ACTIVITIES 55,450   23,548   40,068   57,663   Effect of exchange rate changes on cash and cash equivalents (302 ) (141 ) (216 ) (664 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 84,202 26,281 56,877 (64,993 ) Cash and cash equivalents at beginning of period 173,389   179,587   200,714   270,861   Cash and cash equivalents at end of period $ 257,591   $ 205,868   $ 257,591   $ 205,868     Coeur Mining, Inc. and Subsidiaries Condensed Consolidated Balance Sheets       June 30,     December 31, 2016 2015 ASSETS In thousands, except share data CURRENT ASSETS Cash and cash equivalents $ 257,591 $ 200,714 Receivables 79,932 85,992 Inventory 84,074 81,711 Ore on leach pads 76,335 67,329 Prepaid expenses and other 11,614   10,942   509,546 446,688 NON-CURRENT ASSETS Property, plant and equipment, net 217,345 195,999 Mining properties, net 552,035 589,219 Ore on leach pads 52,885 44,582 Restricted assets 14,792 11,633 Equity securities 11,250 2,766 Receivables 39,739 24,768 Deferred tax assets 1,370 1,942 Other 12,893   14,892   TOTAL ASSETS $ 1,411,855   $ 1,332,489   LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 49,219 $ 48,732 Accrued liabilities and other 50,169 53,953 Debt 108,809 10,431 Royalty obligations 12,915 24,893 Reclamation 1,790   2,071   222,902 140,080 NON-CURRENT LIABILITIES Debt 402,257 479,979 Royalty obligations 7,069 4,864 Reclamation 85,048 83,197 Deferred tax liabilities 131,459 147,132 Other long-term liabilities 66,961   55,761   692,794 770,933 STOCKHOLDERS’ EQUITY Common stock, par value $0.01 per share; authorized 300,000,000 shares, issued and outstanding 162,370,864 at June 30, 2016 and 151,339,136 at December 31, 2015 1,624 1,513 Additional paid-in capital 3,101,493 3,024,461 Accumulated other comprehensive income (loss) (283 ) (3,722 ) Accumulated deficit (2,606,675 ) (2,600,776 ) 496,159   421,476   TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,411,855   $ 1,332,489    

Adjusted EBITDA Reconciliation

      LTM 2Q           (Dollars in thousands except per share amounts) 2016 2Q 2016 1Q 2016   4Q 2015   3Q 2015 2Q 2015 Net income (loss) $ (323,118 ) $ 14,497 $ (20,396 ) $ (303,000 ) $ (14,219 ) $ (16,677 ) Interest expense, net of capitalized interest 46,199 10,875 11,120 11,758 12,446 10,734 Income tax provision (benefit) (24,733 ) (768 ) 2,106 (17,811 ) (8,260 ) (260 ) Amortization 137,156   37,505   27,964     36,190     35,497   38,974   EBITDA (164,496 ) 62,109 20,794 (272,863 ) 25,464 32,771 Fair value adjustments, net 4,942 3,579 8,695 (1,546 ) (5,786 ) (2,754 ) Impairment of equity securities 820 20 — 317 483 31 Foreign exchange loss 17,326 5,655 164 2,597 8,910 2,056 (Gain) loss on sale of assets (4,964 ) (2,812 ) (1,673 ) (146 ) (333 ) (107 ) (Gain) loss on debt extinguishment (16,187 ) — — (16,187 ) — 524 Corporate reorganization costs 647 — — 133 514 — Transaction-related costs 1,271 792 380 99 — 38 Asset retirement obligation accretion 8,530 2,066 2,060 2,288 2,116 2,078 Inventory adjustments 5,208 946 1,944 4,901 2,280 1,805 Write-downs 317,783   —   4,446     313,337     —   —   Adjusted EBITDA $ 170,880   $ 72,355   $ 36,810     $ 32,930     $ 33,648   $ 36,442    

Adjusted Net Income (Loss) Reconciliation

  (Dollars in thousands except per share amounts)         2Q 2016   1Q 2016   4Q 2015   3Q 2015   2Q 2015 Net income (loss) $ 14,497 $ (20,396 ) $ (303,000 ) $ (14,219 ) $ (16,677 ) Fair value adjustments, net 3,579 8,695 (1,546 ) (5,786 ) (2,754 ) Impairment of equity securities 20 — 317 483 31 Write-downs — 4,446 313,337 — — (Gain) loss on sale of assets (2,812 ) (1,673 ) (146 ) (333 ) (107 ) (Gain) loss on debt extinguishments — — (16,187 ) — 524 Corporate reorganization costs — — 133 514 — Transaction-related costs 792 380 99 — 38 Tax effect of adjustments 3,996 (1,375 ) (37,727 ) 2,402 136 Foreign exchange (gain) loss (2,810 ) (1,124 ) 753   (1,182 ) 751   Adjusted net income (loss) $ 17,262   $ (11,047 ) $ (43,967 ) $ (18,121 ) $ (18,058 )   Adjusted net income (loss) per share $ 0.11   $ (0.07 ) $ (0.31 ) $ (0.13 ) $ (0.13 )  

Consolidated Free Cash Flow Reconciliation

  (Dollars in thousands)             2Q 2016     1Q 2016     4Q 2015     3Q 2015     2Q 2015 Cash flow from operating activities $ 45,939 $ 6,617 $ 44,414 $ 36,237 $ 36,863 Capital expenditures (23,288 ) (22,172 ) (30,035 ) (23,861 ) (23,677 ) Gold production royalty payments (10,461 ) (9,131 ) (8,954 ) (10,159 ) (9,754 ) Free cash flow 12,190   (24,686 ) 5,425   2,217   3,432     Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce for Three Months Ended June 30, 2016       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) $ 37,630   $ 27,158   $ 20,498   $ 365   $ 85,651 $ 32,419 $ 19,470 $ 51,889 $ 137,540 Amortization 14,765   5,437   1,853   84   22,139   9,808   5,128   14,936   37,075   Costs applicable to sales $ 22,865 $ 21,721 $ 18,645 $ 281 $ 63,512 $ 22,611 $ 14,342 $ 36,953 $ 100,465 Silver equivalent ounces sold 2,502,442 1,911,885 1,418,455 35,411 5,868,193 9,286,033 Gold equivalent ounces sold           30,178   26,786   56,964     Costs applicable to sales per ounce $ 9.14 $ 11.36 $ 13.14 $ 7.94 $ 10.82 $ 749 $ 535 $ 649 $ 10.82 Inventory adjustments (0.12 ) (0.06 ) (0.17 ) —   (0.11 ) (9 ) (1 ) (5 ) (0.10 ) Adjusted costs applicable to sales per ounce $ 9.02 $ 11.30 $ 12.97 $ 7.94 $ 10.71   $ 740 $ 534 $ 644 $ 10.72     Costs applicable to sales per realized ounce $ 8.35 $ 10.49 $ 10.15 $ 9.69 Inventory adjustments (0.11 ) (0.06 ) (0.10 ) (0.09 ) Adjusted costs applicable to sales per realized ounce $ 8.24 $ 10.43 $ 10.05   $ 9.60     Costs applicable to sales $ 100,465 Treatment and refining costs 1,128 Sustaining capital 21,019 General and administrative 7,400 Exploration 2,233 Reclamation 4,170 Project/pre-development costs 2,098   All-in sustaining costs $ 138,513 Silver equivalent ounces sold 5,868,193 Kensington and Wharf silver equivalent ounces sold 3,417,840   Consolidated silver equivalent ounces sold 9,286,033   All-in sustaining costs per silver equivalent ounce $ 14.92   Inventory adjustments $ (0.10 ) Adjusted all-in sustaining costs per silver equivalent ounce $ 14.82     All-in sustaining costs per realized silver equivalent ounce $ 13.36   Inventory adjustments $ (0.09 ) Adjusted all-in sustaining costs per realized silver equivalent ounce $ 13.27     Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce for Three Months Ended March 31, 2016       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) $ 28,327   $ 27,798   $ 19,251   $ 955   $ 76,331 $ 32,767 $ 19,512 $ 52,279 $ 128,610 Amortization 7,289   5,313   1,754   299   14,655   8,349   4,051   12,400   27,055   Costs applicable to sales $ 21,038 $ 22,485 $ 17,497 $ 656 $ 61,676 $ 24,418 $ 15,461 $ 39,879 $ 101,555 Silver equivalent ounces sold 1,702,290 1,779,377 1,384,391 122,694 4,988,752 8,274,952 Gold equivalent ounces sold           31,648   23,122   54,770     Costs applicable to sales per ounce $ 12.36 $ 12.64 $ 12.64 $ 5.35 $ 12.36 $ 772 $ 669 $ 728 $ 12.27 Inventory adjustments (0.82 ) (0.03 ) (0.08 ) —   (0.31 ) (11 ) (2 ) (7 ) (0.23 ) Adjusted costs applicable to sales per ounce $ 11.54 $ 12.61 $ 12.56 $ 5.35 $ 12.05   $ 761 $ 667 $ 721 $ 12.04     Costs applicable to sales per realized ounce $ 10.90 $ 11.32 $ 11.37 $ 10.50 Inventory adjustments (0.72 ) (0.03 ) (0.29 ) (0.20 ) Adjusted costs applicable to sales per realized ounce $ 10.18 $ 11.29 $ 11.08   $ 10.30     Costs applicable to sales $ 101,555 Treatment and refining costs 1,158 Sustaining capital 16,710 General and administrative 8,276 Exploration 1,731 Reclamation 3,759 Project/pre-development costs 1,558   All-in sustaining costs $ 134,747 Silver equivalent ounces sold 4,988,752 Kensington and Wharf silver equivalent ounces sold 3,286,200   Consolidated silver equivalent ounces sold 8,274,952   All-in sustaining costs per silver equivalent ounce $ 16.28   Inventory adjustments $ (0.23 ) Adjusted all-in sustaining costs per silver equivalent ounce $ 16.05     All-in sustaining costs per realized silver equivalent ounce $ 13.93   Inventory adjustments $ (0.20 ) Adjusted all-in sustaining costs per realized silver equivalent ounce $ 13.73     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) $ 47,207   $ 27,716   $ 24,372   $ 2,579   $ 101,874 $ 33,298 $ 25,033 $ 58,331 $ 160,205 Amortization 7,426   4,944   4,311   1,519   18,200   9,503   7,246   16,749   34,949   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   $ 32,167   $ 21,009   $ 1,384   $ 97,270 $ 33,472 $ 23,419 $ 56,891 $ 154,161 Amortization 8,617   6,731   3,526   909   19,783   8,499   5,642   14,141   33,924   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   $ 29,779   $ 24,428   $ 3,204   $ 96,569 $ 40,136 $ 20,123 $ 60,259 $ 156,828 Amortization 9,046   5,387   5,271   1,852   21,556   12,684   3,491   16,175   37,731   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 2016 Guidance

          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) $ 142,000   $ 122,000   $ 90,000   $ 2,500   $ 356,500     $ 141,000

$

  80,000 $   221,000 $ 577,500 Amortization 37,000     29,000     8,000     1,000     75,000       37,000       18,000         55,000         130,000 Costs applicable to sales $ 105,000 $ 93,000 $ 82,000 $ 1,500 $ 281,500 $ 104,000 $ 62,000 $ 166,000 $ 447,500 Silver equivalent ounces sold 8,301,500 8,090,000 5,900,000 188,000 22,479,500 35,619,500 Gold equivalent ounces sold                       125,000       94,000         219,000           Costs applicable to sales per ounce guidance $12.50-$13.50 $11.25-$12.25 $13.50-$14.25 $825-$875 $650-$750     Costs applicable to sales $ 447,500 Treatment and refining costs 5,000 Sustaining capital, including capital lease payments 75,000 General and administrative 30,000 Exploration 15,000 Reclamation 16,000 Project/pre-development costs 5,000 All-in sustaining costs $ 593,500 Silver equivalent ounces sold 22,479,500 Kensington and Wharf silver equivalent ounces sold 13,140,000 Consolidated silver equivalent ounces sold 35,619,500 All-in sustaining costs per silver equivalent ounce guidance $16.00-$17.25  

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Coeur Mining, Inc.Courtney Lynn, Vice President, Investor Relations and Treasurer(312) 489-5837orRebecca Hussey, Manager, Investor Relations(312) 489-5827www.coeur.com