Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) today
reported first quarter 2017 financial results, achieving $206.1
million of revenue, which represented increases of 29%
quarter-over-quarter and 39% year-over-year. Net income during the
first quarter was $18.7 million, or $0.10 per share, and adjusted
net income1 was $7.0 million, or $0.04 per share.
Quarterly cash flow from operating activities was $55.3 million,
increases of $29.8 million quarter-over-quarter and $48.7 million
year-over-year. First quarter adjusted EBITDA1 totaled $56.6
million, representing a 29% increase quarter-over-quarter and a 51%
increase year-over-year. Last twelve month (LTM) adjusted EBITDA1
was $235.4 million, representing increases of 9%
quarter-over-quarter and 71% year-over-year. Free cash flow1
increased $35.8 million quarter-over-quarter and $56.0 million
year-over-year to $31.3 million.
Balance sheet improvements since the beginning of 2016 resulted
in a $7.5 million, or 68%, year-over-year decline in quarterly
interest expense. Combined with higher LTM adjusted EBITDA1, the
Company's significant debt reductions resulted in total and net
debt-to-LTM adjusted EBITDA1 ratios of 0.9x and 0.04x,
respectively, compared to 3.7x and 2.5x a year earlier.
First Quarter Highlights
- Silver and gold production were 3.9
million ounces and 88,218 ounces, respectively, or 9.2 million
silver equivalent ounces (AgEqOz)1, representing a decline of 8%
quarter-over-quarter and an increase of 14% year-over-year
- Sales of 4.5 million ounces of silver
and 110,874 ounces of gold, or 11.1 million AgEqOz1, increased 29%
quarter-over-quarter and 34% year-over-year
- Companywide all-in sustaining costs
(AISC) and adjusted AISC per average spot AgEqOz1 were $13.65 and
$13.66, respectively, both declining 6% quarter-over-quarter. On a
60:1 price equivalence basis, companywide AISC and adjusted AISC
per AgEqOz1 were $15.01 and $15.02, both representing
quarter-over-quarter decreases of 7%
- Primary silver operations delivered
costs applicable to sales (CAS) and adjusted CAS per average spot
AgEqOz1 of $10.64 and $10.63, respectively, representing
quarter-over-quarter decreases of 7% and 6%
- For primary gold operations, CAS and
adjusted CAS per gold equivalent ounce (AuEqOz)1 were $788 and
$791, respectively, representing 17% increases compared to the
prior quarter
- Cash and equivalents totaled $210.0
million at March 31, 2017, an increase of nearly $50 million
compared to year-end
- The Company completed the sale of the
Joaquin project for consideration of $27.4 million, realizing a
gain of $21.1 million; Coeur also retained a 2.0% NSR royalty on
the Joaquin project
- Quarterly expensed exploration tripled
year-over-year to $5.3 million primarily due to expanded drilling
activities at Palmarejo and Kensington and the near-completion of a
25,000 meter drill program at La Preciosa to support a revised
Preliminary Economic Assessment (PEA) expected later this year
"Coeur delivered a solid first quarter with strong earnings and
cash flows, affirming the steps we have taken to reposition our
portfolio and balance sheet," said Mitchell J. Krebs, Coeur's
President and Chief Executive Officer. "Rising production levels at
our Palmarejo mine and higher metal sales more than offset the
impact of record rainfall at our Rochester mine in Nevada and
persistent drought conditions at our San Bartolomé mine in Bolivia.
Companywide costs also continued to trend lower with first quarter
metrics coming in well below full-year guidance. Combined with
considerable interest savings from recent balance sheet
improvements, we reported significantly higher earnings and cash
flows compared to the same period last year.
"Near-mine and early-stage exploration programs have been
accelerated as planned with 17 drill rigs active at the end of the
quarter compared to three a year earlier. In addition to the
encouraging drill results we have seen at Palmarejo, we are nearing
completion of a 25,000 meter drill program at La Preciosa to
support a revised PEA expected later this year targeting a
potential smaller, higher-grade, lower capital silver-gold
operation.
"Concurrent with our increased exploration activities, our
expansion initiatives at Palmarejo, Rochester and Kensington remain
on schedule and on budget. At Palmarejo, we are on track to achieve
50% production increases this year from higher-grade underground
operations. At Rochester, we are completing the last element of a
multi-year expansion effort to position the mine for strong and
sustainable cash flow. At Kensington, we expect higher-grade ore
from the Jualin deposit to boost production and further reduce unit
costs starting late this year. This strong execution continues to
support our trajectory toward a higher-margin, higher cash flowing
precious metals mining company."
Financial and Operating Highlights
(Unaudited)
(Amounts in millions, except per share amounts, gold
ounces produced & sold, and per-ounce metrics) 1Q
2017 4Q 2016 3Q 2016 2Q
2016 1Q 2016 Revenue $ 206.1
$ 159.2 $ 176.2 $ 182.0 $ 148.4
Costs Applicable to Sales $ 132.7 $ 102.0 $
105.4 $ 100.5 $ 101.6
General and Administrative Expenses
$ 10.1 $ 6.6 $ 7.1 $ 7.4 $ 8.3
Net Income
(Loss) $ 18.7 $ (8.3 ) $ 69.6 $ 14.5 $ (20.4 )
Net Income (Loss) Per Share $ 0.10 $ (0.03 ) $
0.42 $ 0.09 $ (0.14 )
Adjusted Net Income (Loss)1
$ 7.0 $ 2.8 $ 38.6 $ 16.9 $ (10.5 )
Adjusted Net
Income (Loss)1 Per Share $ 0.04 $
0.01 $ 0.23 $ 0.11 $ (0.06 )
Weighted Average Shares
Outstanding 178.9 178.6 161.0 157.9 150.2
EBITDA1 $ 73.4 $ 27.4 $ 50.9 $ 62.1 $
20.8
Adjusted EBITDA1 $ 56.6 $ 44.0 $
62.7 $ 72.0 $ 37.4
Cash Flow from Operating Activities
$ 55.3 $ 25.5 $ 47.8 $ 45.9 $ 6.6
Capital
Expenditures $ 24.0 $ 29.9 $ 25.6 $ 23.3 $ 22.2
Free Cash Flow1 $ 31.3 $ (4.5 ) $ 14.6
$ 12.2 $ (24.7 )
Cash, Equivalents & Short-Term
Investments $ 210.0 $ 162.2 $ 222.5 $ 257.6 $
173.4
Total Debt2 $ 219.1 $ 210.9 $
401.7 $ 511.1 $ 511.1
Average Realized Price Per Ounce –
Silver $ 17.61 $ 16.64 $ 19.61 $ 17.38 $ 15.16
Average Realized Price Per Ounce – Gold $
1,149 $ 1,170 $ 1,317 $ 1,255 $ 1,178
Silver Ounces
Produced 3.9 3.9 3.5 4.0 3.4
Gold Ounces Produced
88,218 102,500 84,871 92,727 78,072
Silver Equivalent
Ounces Produced1 9.2 10.0 8.6 9.6 8.1
Silver
Ounces Sold 4.5 3.4 3.4 4.0 3.5
Gold Ounces Sold
110,874 87,108 83,389 88,543 79,091
Silver Equivalent
Ounces Sold1 11.1 8.6 8.4 9.3 8.3
Silver
Equivalent Ounces Sold (Average Spot)1 12.2 9.6
9.1 10.6 9.8
Adjusted CAS per AgEqOz1 $
11.38 $ 12.05 $ 12.10 $ 10.71 $ 12.05
Adjusted CAS per
Average Spot AgEqOz1 $ 10.63 $ 11.34 $
11.64 $ 9.90 $ 11.00
Adjusted CAS per AuEqOz1
$ 791 $ 676 $ 712 $ 644 $ 721
Adjusted AISC per
AgEqOz1 $ 15.02 $ 16.13 $ 16.46 $ 14.82 $
16.05
Adjusted AISC per Average Spot AgEqOz1 $
13.66 $ 14.52 $ 15.23 $ 12.95 $ 13.51
Financial Results
First quarter revenue increased 29% to $206.1 million primarily
due to a reduction in metal inventory. Silver sales contributed 38%
while gold sales contributed 62%. Average realized silver and gold
prices were $17.61 and $1,149 per ounce, respectively, representing
an increase of 6% and decrease of 2% quarter-over-quarter. The
average realized gold price reflects the sale of 19,300 ounces to
Franco-Nevada at a price of $800 per ounce.
Costs applicable to sales were $132.7 million for the quarter,
increasing 30% as a result of higher silver and gold ounces sold.
General and administrative expenses were $10.1 million, $3.5
million higher than the preceding quarter, largely attributable to
higher outside service fees and increased employee-related costs,
including one-time severance costs.
Net income, EBITDA1 and free cash flow1 were positively impacted
quarter-over-quarter by a reduction in metal inventory, lower
companywide unit costs, and the sale of the Joaquin project in
Argentina for total consideration of $27.4 million.
Operations
Highlights of first quarter 2017 results for each of the
Company's operating segments are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts)
1Q 2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Underground
Operations: Tons mined
355,793 293,706 253,681 283,971 215,642
Average silver
grade (oz/t) 4.84 5.00 3.96 5.40 4.21
Average gold
grade (oz/t) 0.09 0.09 0.08 0.08 0.07
Surface
Operations: Tons mined — — — 1,695 35,211
Average silver grade (oz/t) — — — 7.77 4.18
Average gold grade (oz/t) — — — 0.07 0.04
Processing: Total tons milled 360,383 287,569
274,644 270,142 246,533
Average recovery rate – Ag
86.5% 89.1% 85.5% 89.5% 89.1%
Average recovery rate –
Au 93.7% 90.4% 77.7% 86.4% 92.1%
Silver ounces
produced (000's) 1,531 1,269 933 1,307 933
Gold
ounces produced 30,792 23,906 16,608 18,731 14,668
Silver equivalent ounces produced1 (000's)
3,378 2,703 1,930 2,431 1,813
Silver ounces sold
(000's) 1,965 937 778 1,350 928
Gold ounces sold
41,045 15,558 11,410 19,214 12,899
Silver equivalent
ounces sold1 (000's) 4,427 1,872 1,462
2,502 1,702
Silver equivalent ounces sold1
(average spot) (000's) 4,837 2,042 1,555 2,792 1,955
Metal sales $77.7 $32.5 $30.7 $48.3 $29.8
Costs
applicable to sales $43.0 $20.9 $16.0 $22.9 $21.0
Adjusted CAS per AgEqOz1 $9.68 $11.01
$10.70 $9.02 $11.54
Adjusted CAS per average spot
AgEqOz1 $8.87 $10.11 $10.05 $8.09 $10.03
Exploration expense $1.6 $2.4 $1.3 $0.6 $0.8
Cash
flow from operating activities $50.5 $(1.7) $13.7 $11.3
$3.4
Sustaining capital expenditures $5.0 $3.9 $6.7
$5.5 $6.6
Development capital expenditures $1.2
$4.2 $3.3 $3.4 $2.2
Total capital
expenditures $6.2 $8.1 $10.0 $8.9 $8.8
Free cash flow
(before royalties) $44.3 $(9.8) $3.7 $2.4 $(5.4)
Gold
production royalty payments $— $— $7.6
$10.5 $9.1
Free cash flow1 $44.3
$(9.8) $(3.9) $(8.1) $(14.5)
- Mining rates at Guadalupe and
Independencia averaged 2,700 and 1,225 tons per day, respectively,
during the quarter and remain on-track to reach a year-end combined
target of 4,500 tons per day
- Higher mining rates drove a 25%
quarter-over-quarter and 86% year-over-year increase in silver
equivalent1 production to 3.4 million ounces
- In addition to higher production, metal
sales were also positively impacted by a reduction in metal
inventory, with silver sales more than doubling both
quarter-over-quarter and year-over-year to 2.0 million and gold
sales increasing to 41,045 ounces, up 164% quarter-over-quarter and
218% year-over-year
- Gold sales to Franco-Nevada were 19,300
ounces at a price of $800 per ounce. For the full year, the Company
expects 40% - 45% of Palmarejo's gold sales to be to Franco-Nevada
at $800 per ounce
- First quarter adjusted CAS per average
spot AgEqOz1 was $8.87, declining 12% quarter-over-quarter and 12%
year-over-year and below full-year guidance of $9.00 - $9.50 per
ounce as a result of lower unit costs
- Palmarejo achieved quarterly free cash
flow1 of $44.3 million, its highest in nearly four years
Rochester, Nevada
(Dollars in millions, except per ounce amounts)
1Q 2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Ore tons placed
3,513,708 3,878,487 4,901,039 6,402,013
4,374,459
Average silver grade (oz/t) 0.58
0.57 0.54 0.54 0.64
Average gold grade (oz/t) 0.002
0.002 0.003 0.003 0.004
Silver ounces produced (000's)
1,127 1,277 1,161 1,197 929
Gold ounces produced
10,356 14,231 12,120 13,940 10,460
Silver equivalent
ounces produced1 (000's) 1,749 2,131 1,888
2,033 1,557
Silver ounces sold (000's) 1,289 1,205
1,163 1,137 1,079
Gold ounces sold 13,592 12,988
11,751 12,909 11,672
Silver equivalent ounces sold1
(000's) 2,104 1,984 1,868 1,912 1,779
Silver
equivalent ounces sold1 (average spot) (000's)
2,240 2,128 1,963 2,106 2,009
Metal sales
$39.0 $36.2 $37.9 $35.8 $30.0
Costs applicable to
sales $26.4 $23.7 $21.8 $21.7 $22.5
Adjusted CAS
per AgEqOz1 $12.57 $11.99 $11.56 $11.30 $12.61
Adjusted CAS per average spot AgEqOz1 $11.81
$11.16 $11.02 $10.24 $11.17
Exploration expense $0.1
$0.4 $0.1 $0.2 $0.1
Cash flow from operating activities
$5.7 $7.6 $9.5 $9.2 $2.1
Sustaining capital
expenditures $0.2 $1.5 $1.2 $2.6 $2.5
Development
capital expenditures $10.4 $4.3 $2.2
$1.3 $0.8
Total capital expenditures
$10.6 $5.8 $3.4 $3.9 $3.3
Free cash flow1
$(4.9) $1.8 $6.1 $5.3 $(1.2)
- Record precipitation in the first half
of the quarter negatively impacted crushing and placement rates and
diluted process solutions. While operations normalized in March,
quarter-over-quarter silver equivalent1 production was 18% lower,
although 12% higher year-over-year. Production is expected to
improve in the second quarter and increase modestly following the
anticipated completion of the Stage IV leach pad expansion in the
third quarter
- Silver and gold sales increased 7% and
5%, respectively, quarter-over-quarter to 1.3 million ounces and
13,592 ounces due to a reduction in metal inventory
- Adjusted CAS per average spot AgEqOz1
increased 6% to $11.81 during the quarter and are expected to trend
lower throughout the remainder of the year as production and sales
increase
- Negative quarterly free cash flow1 was
primarily driven by weather-related lower production and higher
capital expenditures, principally related to the Stage IV leach pad
expansion
Kensington, Alaska
(Dollars in millions, except per ounce amounts)
1Q 2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons milled
165,895 163,410 140,322 157,117
159,360
Average gold grade (oz/t) 0.17 0.22 0.20 0.22
0.21
Average recovery rate 94.0% 94.4% 94.8% 94.1%
95.8%
Gold ounces produced 26,197 33,688 26,459
32,210 31,974
Gold ounces sold 32,144 28,864 30,998
30,178 31,648
Metal sales $38.0 $34.2 $40.2 $36.5
$35.7
Costs applicable to sales $28.4 $23.0 $26.7
$22.6 $24.4
Adjusted CAS per AuOz1 $884 $801
$859 $740 $761
Exploration expense $0.8 $1.3 $1.2
$1.0 $—
Cash flow from operating activities $4.5
$11.4 $18.0 $7.7 $13.7
Sustaining capital expenditures
$2.5 $8.9 $5.2 $4.3 $4.4
Development capital
expenditures $3.0 $3.7 $3.4 $3.2
$3.7
Total capital expenditures $5.5 $12.6
$8.6 $7.5 $8.1
Free cash flow1 $(1.0) $(1.2)
$9.4 $0.2 $5.6
- As anticipated, first quarter
production declined 22% quarter-over-quarter to 26,197 ounces as a
result of lower grades. Higher grades and production are expected
in the second half of the year
- Adjusted CAS per gold ounce (AuOz)
increased 10% quarter-over-quarter to $884 due to lower grades;
unit costs are expected to trend lower through the remainder of the
year as grades improve
- Development of the Jualin decline
remains on track for initial production later this year
- The Company is increasing its
exploration program by $6 million largely to expand the size of
Jualin and support sustained mining activities from this high-grade
deposit. This increase in exploration expense will be equally
offset by lower underground capital development
Wharf, South Dakota
(Dollars in millions, except per ounce amounts)
1Q 2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Ore tons placed
1,292,181 1,178,803 1,199,008 915,631
974,663
Average silver grade (oz/t) 0.22 0.29
0.24 0.28 0.30
Average gold grade (oz/t) 0.027 0.027
0.033 0.037 0.031
Average plant recovery rate – Au
97.4% 98.9% 94.4% 88.5% 95.9%
Gold ounces produced
20,873 30,675 29,684 27,846 20,970
Silver ounces produced
(000's) 20 32 25 35 13
Gold equivalent ounces
produced1 21,207 31,202 30,106 28,433 21,186
Silver ounces sold (000's) 33 30 17 33 15
Gold
ounces sold 24,093 29,698 29,230 26,242 22,872
Gold
equivalent ounces sold1 24,636 30,204 29,508
26,786 23,122
Metal sales $30.3 $35.5 $39.3 $34.0
$27.9
Costs applicable to sales $16.3 $16.9 $19.7
$14.3 $15.5
Adjusted CAS per AuEqOz1 $670 $556
$559 $534 $667
Exploration expense $— $— $— $— $—
Cash flow from operating activities $8.6 $15.4 $21.1
$16.2 $9.7
Sustaining capital expenditures $0.9 $1.3
$0.6 $1.5 $1.4
Development capital expenditures $—
$— $— $— $—
Total capital
expenditures $0.9 $1.3 $0.6 $1.5 $1.4
Free cash
flow1 $7.7 $14.1 $20.5 $14.7 $8.3
- Gold production during the first
quarter declined 32% to 20,873 ounces as a result of leach pad
offload timing; production is expected to increase in the second
and third quarters as the remainder of the high-grade Golden Reward
deposit is mined
- Sales of 24,093 ounces of gold
represented a 19% quarter-over-quarter decline due to lower
production, which was partially offset by a reduction of metal
inventory
- As a result of lower production during
the quarter, adjusted CAS per AuEqOz1 increased 21% to $670, well
below full-year guidance of $775 - $825
- During the quarter, Wharf generated
$7.7 million of free cash flow1, bringing cumulative free cash
flow1 since its acquisition in February 2015 for $99 million to
$94.1 million
San Bartolomé, Bolivia
(Dollars in millions, except per ounce amounts)
1Q 2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons milled
384,267 368,131 450,409 440,441
407,806
Average silver grade (oz/t) 3.49 3.96 3.43
3.79 3.64
Average recovery rate 90.7% 86.3% 88.7%
87.4% 93.1%
Silver ounces produced (000's) 1,215
1,259 1,370 1,458 1,382
Silver ounces sold (000's)
1,148 1,218 1,391 1,418 1,384
Metal sales
$20.6 $19.9 $27.5 $25.2 $21.3
Costs applicable to
sales $18.2 $17.3 $20.8 $18.6 $17.5
Adjusted CAS per
AgOz1 $15.88 $13.97 $14.40 $12.97 $12.56
Exploration expense $— $— $— $— $—
Cash flow from
operating activities $11.3 $4.1 $8.6 $11.2 $5.5
Sustaining capital expenditures $0.4 $1.8 $3.0 $1.3
$0.5
Development capital expenditures $— $—
$— $— $—
Total capital expenditures
$0.4 $1.8 $3.0 $1.3 $0.5
Free cash flow1
$10.9 $2.3 $5.6 $9.9 $5.0
- Persistent nationwide drought
conditions resulted in a 3% quarter-over-quarter decline in silver
production to 1.2 million ounces; higher production is expected in
the second quarter as a result of more precipitation and a greater
contribution of higher-grade third party ore purchases
- Adjusted CAS per silver ounce (AgOz)
increased 14% during the quarter due to lower production and sales;
unit costs are expected to decrease during the second quarter as
production and sales increase
- Free cash flow1 for the first quarter
increased almost fourfold to $10.9 million due to the timing of
cash flows related to sales
Endeavor Silver Stream
(Dollars in millions, except per ounce amounts)
1Q 2017 4Q 2016 3Q 2016
2Q 2016 1Q 2016 Tons milled
45,340 52,711 42,335 37,521
86,863
Average silver grade (oz/t) 1.71 2.09 2.28
1.66 3.17
Average recovery rate 51.4% 39.8% 58.2%
52.5% 41.9%
Silver ounces produced (000's) 40 44 56
33 115
Silver ounces sold (000's) 40 58 46 35 123
Metal sales $0.7 $0.9 $0.8 $0.5 $1.9
Royalty
revenue $— $(0.2) $(0.1) $1.8 $1.8
Costs applicable
to sales (Endeavor silver stream) $0.3 $— $0.4 $0.3 $1.0
CAS per AgOz1 $7.22 $7.06 $8.10 $7.94 $5.35
Cash flow from operating activities $0.2 $2.2 $0.4
$(3.2) $0.8
Free cash flow1 $0.2 $2.2 $0.4
$(3.2) $0.8
- Silver production from the Company's
silver stream on the Endeavor mine in Australia was 39,941 ounces
for the quarter, declining 9% quarter-over-quarter
- In response to higher zinc and lead
prices, the operator of the mine has begun to ramp up with higher
production and free cash flow1 expected throughout the remainder of
the year
Exploration
First quarter expensed exploration was $5.3 million, unchanged
from the previous quarter and up from $1.7 million from the same
period in 2016, while capitalized exploration totaled $2.3 million.
At quarter-end, the Company had 17 drill rigs active across its
portfolio compared to just three a year earlier.
Highlights from Coeur's expanded exploration activities
include:
- A 25,000 meter drill program at La
Preciosa is nearing completion with an updated PEA anticipated
later this year
- Since early 2017, four drills have been
active underground at Guadalupe and Independencia focused on both
resource expansion and conversion. Three to four additional drills
have been active on surface, targeting resource expansion at North
Independencia, North Guadalupe, La Nación and La Bavisa.
Preliminary results from the Zapeta vein, located at the north end
of Guadalupe, and the Hidalgo vein, located at the north end of
Independencia, have been encouraging and are expected to be
included in the Company's year-end resource statement
- Exploration efforts at Kensington are
accelerating with an incremental $6 million allocated to the 2017
budget of $4 million. These funds are expected to expand the size
of Jualin and support sustained mining activities from this
high-grade deposit. Resource expansion of veins #4 and #5 remains a
strong priority, while drilling on vein #4 focused on resource
conversion also progresses. As a result, the Company is increasing
its full-year exploration expense guidance to $29 - $31
million
Full-Year 2017 Outlook
Production guidance remains unchanged from guidance originally
published January 5, 2017 and affirmed on April 6, 2017. Cost
guidance per average spot silver equivalent ounce using 69:1
silver-to-gold equivalence was updated by applying 70:1 equivalence
on March 23, 2017.
Exploration expense guidance has been increased by $6 million to
further accelerate the expansion of Kensington's Jualin deposit.
Capital expenditure guidance has been equally reduced due to lower
anticipated underground capital development expenditures at
Kensington.
2017 Production Outlook
(silver and silver equivalent ounces in thousands)
Silver Gold Silver
Equivalent1 Palmarejo 6,500 - 7,000
110,000 - 120,000 13,100 - 14,200
Rochester 4,200 -
4,700 47,000 - 52,000 7,020 - 7,820
San Bartolomé 5,400 -
5,900 — 5,400 - 5,900
Endeavor 300 - 400 — 300 - 400
Kensington — 120,000 - 125,000 7,200 - 7,500
Wharf
— 85,000 - 90,000 5,100 - 5,400
Total
16,400 - 18,000 362,000 - 387,000 38,120 -
41,220
2017 Cost Outlook
Original Guidance (if changed)
Current Guidance (dollars in millions, except per ounce
amounts) 60:1 69:1 Spot
60:1 70:1 Spot CAS per AgEqOz1
– Palmarejo $9.25 - $9.75 $10.00 - $10.50
$9.00 - $9.50
CAS per AgEqOz1 – Rochester
$10.75 - $11.25 $11.50 - $12.00 $10.50 - $11.00
CAS per
AgOz1 – San Bartolomé $14.00 - $14.50
CAS per
AuOz1 – Kensington $800 - $850
CAS per
AuEqOz1 – Wharf $775 - $825
Capital
Expenditures $115 - $135 $109 - $129
General and
Administrative Expenses $28 - $32
Exploration Expense
$23 - $25 $29 - $31
AISC per AgEqOz1 $14.50 - $15.00
$15.75 - $16.25 $14.25 - $14.75
Financial Results and Conference Call
Coeur will report its operational and financial results for
first quarter 2017 on April 26, 2017 after the New York Stock
Exchange closes for trading. There will be a conference call on
April 27, 2017 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
The conference call and presentation will also be webcast on the
Company’s website www.coeur.com.
Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Peter C.
Mitchell, Senior Vice President and Chief Financial Officer, Frank
L. Hanagarne, Jr., Senior Vice President and Chief Operating
Officer, Hans Rasmussen, Senior Vice President of Exploration, and
other members of management. A replay of the call will be available
through May 11, 2017.
Replay numbers: (877) 344-7529 (US) (855) 669-9658 (Canada)
(412) 317-0088 (International) Conference ID:
101 02 991
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. In addition, the
Company owns the La Preciosa project in Mexico, a silver-gold
exploration stage project. Coeur conducts exploration activities 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 anticipated production, costs,
grades, margin, cash flow, expectations regarding the La Preciosa
project and the timing of publication of a PEA, operations at the
Palmarejo complex, expectations regarding the Palmarejo gold stream
agreement, expansion at Rochester, grades and development efforts
at Kensington, operations at Wharf, third party ore purchases at
San Bartolomé, and cash flow and production levels at the Endeavor
mine. 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, the uncertainties inherent in the estimation of
gold and silver reserves, changes that could result from Coeur's
future acquisition of new mining properties or businesses, the loss
of 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, the
political risks and uncertainties associated with operations in
Bolivia, Coeur's ability to raise additional financing necessary to
conduct its business, make payments or refinance its debt, as well
as other uncertainties and risk factors set out in filings made
from time to time with the United States Securities and Exchange
Commission, and the Canadian securities regulators, including,
without limitation, Coeur's most recent reports on Form 10-K or
Form 10-Q. Actual results, developments and timetables could vary
significantly from the estimates presented. Readers are cautioned
not to put undue reliance on forward-looking statements. Coeur
disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of Coeur, its financial or operating
results or its securities.
Christopher Pascoe, Coeur's Director, Technical Services and a
qualified person under Canadian National Instrument 43-101,
approved the scientific and technical information concerning
Coeur's mineral projects in this news release. For a description of
the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification
procedures and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, socio-political, marketing or other
relevant factors, Canadian investors should refer to the Technical
Reports for each of Coeur's properties as filed on SEDAR at
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, net debt, net
debt-to-LTM adjusted EBITDA, total debt-to-LTM adjusted EBITDA,
adjusted net income (loss), costs applicable to sales per silver
equivalent ounce (or per gold equivalent ounce or per average spot
silver equivalent ounce), adjusted costs applicable to sales per
silver equivalent ounce (or per gold equivalent ounce or per
average spot 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, net debt, net
debt-to-LTM adjusted EBITDA, total debt-to-LTM adjusted EBITDA,
adjusted net income (loss), costs applicable to sales per silver
equivalent ounce (or per gold equivalent ounce or per average spot
silver equivalent ounce), adjusted costs applicable to sales per
silver equivalent ounce (or per gold equivalent ounce or per
average spot silver equivalent ounce), all-in sustaining costs, and
adjusted all-in sustaining costs are important measures in
assessing the Company's overall financial performance. For
additional explanation regarding our use of non-U.S. GAAP financial
measures, please refer to our Form 10-K for the year ended December
31, 2016 and our quarterly report on Form 10-Q for the quarter
ended March 31, 2017.
Notes
- EBITDA, adjusted EBITDA, net debt, net
debt-to-LTM adjusted EBITDA, total debt-to-LTM adjusted EBITDA,
adjusted net income (loss), costs applicable to sales per silver
equivalent ounce (or per gold equivalent ounce or per average spot
silver equivalent ounce), adjusted costs applicable to sales per
silver equivalent ounce (or per gold equivalent ounce or per
average spot silver equivalent ounce), all-in sustaining costs, and
adjusted all-in sustaining costs 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 spot prices. Please
see table below for average silver and gold spot prices during the
period and the silver to gold ratio. 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.
- Includes capital leases. Net of debt
issuance costs and premium received.
Average Spot Prices
1Q 2017 4Q 2016 3Q
2016 2Q 2016 1Q 2016 Average
Silver Spot Price Per Ounce $ 17.42 $
17.19 $ 19.61 $ 16.78 $ 14.85
Average Gold
Spot Price Per Ounce $ 1,219 $ 1,222 $ 1,335 $
1,260 $ 1,183
Average Silver to Gold Spot Equivalence
70:1 71:1 68:1 75:1 80:1
Coeur Mining, Inc. and
Subsidiaries
Condensed Consolidated Statements of
Comprehensive Income (Loss)
Three months ended March 31, 2017
2016 In thousands, except share data Revenue $
206,138 $ 148,387 COSTS AND EXPENSES Costs applicable to sales(1)
132,712 101,555 Amortization 40,104 27,964 General and
administrative 10,133 8,276 Exploration 5,252 1,731 Write-downs —
4,446 Pre-development, reclamation, and other 4,581 4,204
Total costs and expenses 192,782 148,176 OTHER INCOME
(EXPENSE), NET Fair value adjustments, net (1,200 ) (8,695 )
Interest expense, net of capitalized interest (3,586 ) (11,120 )
Other, net 21,139 1,314 Total other income (expense),
net 16,353 (18,501 ) Income (loss) before income and mining
taxes 29,709 (18,290 ) Income and mining tax (expense) benefit
(11,046 ) (2,106 ) NET INCOME (LOSS) $ 18,663 $ (20,396 )
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: Unrealized gain
(loss) on equity securities, net of tax of ($1,101) for the three
months ended March 31, 2016 (2,182 ) 1,043 Reclassification
adjustments for impairment of equity securities 121 —
Reclassification adjustments for realized (gain) loss on sale of
equity securities 1,471 588 Other comprehensive
income (loss) (590 ) 1,631 COMPREHENSIVE INCOME (LOSS) $
18,073 $ (18,765 ) NET INCOME (LOSS) PER SHARE Basic
$ 0.10 $ (0.14 ) Diluted $ 0.10 $ (0.14 )
Coeur Mining, Inc. and
Subsidiaries
Condensed Consolidated Statements of
Cash Flows
Three months ended March 31, 2017
2016 In thousands CASH FLOWS FROM OPERATING
ACTIVITIES: Net income (loss) $ 18,663 (20,396 ) Adjustments:
Amortization 40,104 27,964 Accretion 2,514 3,169 Deferred income
taxes 1,375 (2,105 ) Fair value adjustments, net 1,200 8,695
Stock-based compensation 3,307 2,915 Gain on sale of the Joaquin
project (21,138 ) — Write-downs — 4,446 Other (2,198 ) (1,435 )
Changes in operating assets and liabilities: Receivables 13,106
3,481 Prepaid expenses and other current assets (4,299 ) 1,279
Inventory and ore on leach pads 14,292 (7,822 ) Accounts payable
and accrued liabilities (11,655 ) (13,574 ) CASH PROVIDED BY
OPERATING ACTIVITIES 55,271 6,617 CASH FLOWS FROM
INVESTING ACTIVITIES: Capital expenditures (23,979 ) (22,172 )
Proceeds from the sale of assets 15,019 4,009 Purchase of
investments (1,016 ) (7 ) Sale of investments 10,020 997 Other
(1,546 ) (1,473 ) CASH USED IN INVESTING ACTIVITIES (1,502 )
(18,646 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on debt,
capital leases, and associated costs (3,226 ) (5,971 ) Gold
production royalty payments — (9,131 ) Other (3,247 ) (280 ) CASH
USED IN FINANCING ACTIVITIES (6,473 ) (15,382 ) Effect of exchange
rate changes on cash and cash equivalents 555 86
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 47,851 (27,325 )
Cash and cash equivalents at beginning of period 162,182
200,714 Cash and cash equivalents at end of period $ 210,033
$ 173,389
Coeur Mining, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
March 31, 2017 (Unaudited) December
31, 2016 ASSETS In thousands, except share data
CURRENT ASSETS Cash and cash equivalents $ 210,033 $ 162,182
Receivables 67,064 60,431 Inventory 73,760 106,026 Ore on leach
pads 66,585 64,167 Prepaid expenses and other 22,450 17,981
439,892 410,787 NON-CURRENT ASSETS Property, plant and
equipment, net 222,617 216,796 Mining properties, net 549,207
558,455 Ore on leach pads 72,461 67,231 Restricted assets 18,954
17,597 Equity securities 3,796 4,488 Receivables 15,558 30,951
Other 15,265 12,604 TOTAL ASSETS $ 1,337,750 $
1,318,909
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES Accounts payable $ 47,370 $ 53,335 Accrued
liabilities and other 37,999 42,743 Debt 13,451 12,039 Royalty
obligations 4,961 4,995 Reclamation 3,604 3,522
107,385 116,634 NON-CURRENT LIABILITIES Debt 205,625 198,857
Royalty obligations 4,316 4,292 Reclamation 97,595 95,804 Deferred
tax liabilities 76,363 74,798 Other long-term liabilities 59,846
60,037 443,745 433,788 STOCKHOLDERS’ EQUITY Common
stock, par value $0.01 per share; authorized 300,000,000 shares,
issued and outstanding 181,492,911 at March 31, 2017 and
180,933,287 at December 31, 2016 1,815 1,809 Additional paid-in
capital 3,314,644 3,314,590 Accumulated other comprehensive income
(loss) (3,078 ) (2,488 ) Accumulated deficit (2,526,761 )
(2,545,424 ) 786,620 768,487 TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY $ 1,337,750 $ 1,318,909
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
LTM
1Q 2017
1Q 2017 2016 4Q 2016
3Q 2016 2Q 2016 1Q 2016
LTM 1Q 2016 Net income (loss) $ 94,411 $ 18,663 $
55,352 $ (8,306 ) $ 69,557 $ 14,497 $ (20,396 ) $ (354,292 )
Interest expense, net of capitalized interest 29,386 3,586 36,920
6,857 8,068 10,875 11,120 46,058 Income tax provision (benefit)
(45,299 ) 11,046 (54,239 ) (1,122 ) (54,455 ) (768 ) 2,106 (24,225
) Amortization 135,301 40,104 123,161 29,929
27,763 37,505 27,964 138,625
EBITDA 213,799 73,399 161,194 27,358 50,933 62,109 20,794
(193,834 ) Fair value adjustments, net 4,086 1,200 11,581 (1,654 )
961 3,579 8,695 (1,391 ) Impairment of equity securities 824 121
703 683 — 20 — 832 Foreign exchange loss 9,207 (1,349 ) 10,720
3,435 1,466 5,655 164 13,727 Gain on sale of Joaquin project
(21,138 ) (21,138 ) — — — — — — (Gain) loss on sale of assets
(8,183 ) 2,066 (11,334 ) 339 (7,462 ) (3,126 ) (1,085 ) (778 )
(Gain) loss on debt extinguishment 21,365 — 21,365 11,325 10,040 —
— (15,700 ) Corporate reorganization costs — — — — — — — 647
Transaction-related costs 819 — 1,199 1 26 792 380 517 Asset
retirement obligation accretion 8,699 2,390 8,369 2,147 2,096 2,066
2,060 8,542 Inventory adjustments and write-downs 5,896 (104 )
6,917 389 4,665 946 1,944 6,957 Write-downs — — 4,446
— — — 4,446 317,783
Adjusted EBITDA $ 235,374 $ 56,585 $ 215,160
$ 44,023 $ 62,725 $ 72,041 $ 37,398
$ 137,302
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share amounts)
1Q
2017 4Q 2016 3Q 2016 2Q
2016 1Q 2016 Net income (loss) $ 18,663 $ (8,306
) $ 69,557 $ 14,497 $ (20,396 ) Fair value adjustments, net 1,200
(1,654 ) 961 3,579 8,695 Impairment of equity securities 121 683 —
20 — Write-downs — — — — 4,446 Inventory write-downs — — 3,689 — —
Gain on sale of Joaquin project (21,138 ) — — — — (Gain) loss on
sale of assets 2,066 339 (7,462 ) (3,126 ) (1,085 ) (Gain) loss on
debt extinguishments — 11,325 10,040 — — Corporate reorganization
costs — — — — — Transaction-related costs — 1 26 792 380 Deferred
tax on reorganization — — (40,767 ) — — Foreign exchange (gain)
loss 4,268 351 2,549 (2,810 ) (1,124 ) Tax effect of adjustments
1,807 — (38 ) $ 3,996 $ (1,375 )
Adjusted
net income (loss) $ 6,987 $ 2,739 $ 38,555
$ 16,948 $ (10,459 )
Adjusted net income (loss)
per share - Basic $ 0.04 $ 0.01 $ 0.24 $ 0.11 $ (0.06 )
Adjusted net income (loss) per share - Diluted $ 0.04 $ 0.01
$ 0.23 $ 0.11 $ (0.06 )
Consolidated Debt
Reconciliation
(Dollars in thousands)
1Q 2017 2016
1Q 2016 Cash and cash equivalents $ 210,033 $ 162,182
$ 171,389 Total debt 219,076 210,896 511,101 Net debt 9,043 48,714
339,712 LTM adjusted EBITDA 235,374 215,160 137,302
Total debt / LTM adjusted EBITDA 0.9 x 1.0 x 3.7 x Net debt
/ LTM adjusted EBITDA 0.04 x 0.2 x 2.5 x
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
1Q 2017 4Q
2016 3Q 2016 2Q 2016 1Q
2016 Cash flow from operating activities $ 55,271 $ 25,449 $
47,812 $ 45,939 $ 6,617 Capital expenditures (23,979 ) (29,926 )
(25,627 ) (23,288 ) (22,172 ) Gold production royalty payments —
— (7,563 ) (10,461 ) (9,131 ) Free cash flow 31,292
(4,477 ) 14,622 12,190 (24,686 )
Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce
for Three Months Ended March 31,
2017
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) $ 63,151 $ 32,255
$ 19,633 $ 400 $ 115,439 $ 37,621 $
19,431 $ 57,052 $ 172,491
Amortization 20,150
5,816 1,411 113 27,490 9,178
3,111 12,289 39,779
Costs applicable to sales
$ 43,001 $ 26,439 $ 18,222 $ 287 $ 87,949 $ 28,443 $ 16,320 $
44,763 $ 132,712
Silver equivalent ounces sold 4,427,346
2,104,209 1,148,006 39,765 7,719,326 11,126,126
Gold equivalent
ounces sold 32,144
24,636 56,780
Costs applicable to sales per
ounce $ 9.71 $ 12.56 $ 15.87 $ 7.22 $ 11.39 $ 885 $ 662 $ 788 $
11.93
Inventory adjustments (0.03 ) 0.01 0.01
— (0.01 ) (1 ) 8 3 0.01
Adjusted costs
applicable to sales per ounce $ 9.68 $ 12.57 $ 15.88 $ 7.22
$ 11.38 $ 884 $ 670
$ 791 $
11.94
Costs applicable to sales per average spot
ounce $ 8.89 $ 11.80 $ 10.64 $ 10.85
Inventory
adjustments (0.02 ) 0.01 (0.01 ) 0.01
Adjusted costs
applicable to sales per average spot ounce $ 8.87 $ 11.81
$ 10.63 $ 10.86
Costs applicable to
sales $ 132,712
Treatment and refining costs 1,616
Sustaining capital(1) 11,600
General and
administrative 10,133
Exploration 5,252
Reclamation 3,818
Project/pre-development costs 1,889
All-in sustaining costs $ 167,020 Silver
equivalent ounces sold 7,719,326
Kensington and Wharf silver
equivalent ounces sold 3,406,800
Consolidated silver
equivalent ounces sold 11,126,126
All-in sustaining costs
per silver equivalent ounce $ 15.01 Inventory
adjustments $ 0.01
Adjusted all-in sustaining costs per
silver equivalent ounce $ 15.02
Consolidated silver equivalent ounces sold (average spot)
12,235,897
All-in sustaining costs per average spot silver
equivalent ounce $ 13.65 Inventory
adjustments $ 0.01
Adjusted all-in sustaining costs per
average spot silver equivalent ounce $ 13.66
Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce
for Three Months Ended December 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) $ 29,667 $ 29,581
$ 18,514 $ 557 $ 78,319 $ 31,577 $ 21,861 $
53,438 $ 131,757
Amortization 8,784 5,844
1,303 148 16,079 8,584 4,982
13,566 29,645
Costs applicable to sales $
20,883 $ 23,737 $ 17,211 $ 409 $ 62,240 $ 22,993 $ 16,879 $ 39,872
$ 102,112
Silver equivalent ounces sold 1,871,178 1,983,393
1,217,659 57,903 5,130,133 8,674,273
Gold equivalent ounces
sold 28,864 30,205
59,069
Costs applicable to sales per
ounce $ 11.16 $ 11.97 $ 14.13 $ 7.06 $ 12.13 $ 797 $ 559 $ 675
$ 11.77
Inventory adjustments (0.15 ) 0.02 (0.16 ) —
(0.08 ) 4 (3 ) 1 (0.04 )
Adjusted costs
applicable to sales per ounce $ 11.01 $ 11.99 $ 13.97 $ 7.06
$ 12.05 $ 801 $ 556
$ 676 $
11.73
Costs applicable to sales per average spot
ounce $ 10.24 $ 11.14 $ 11.42 $ 10.59
Inventory
adjustments (0.13 ) 0.02 (0.08 ) (0.04 )
Adjusted
costs applicable to sales per average spot ounce $ 10.11 $
11.16
$ 11.34 $ 10.55
Costs
applicable to sales $ 102,112
Treatment and refining
costs 1,261
Sustaining capital 19,850
General and
administrative 6,587
Exploration 5,261
Reclamation 3,537
Project/pre-development costs 1,693
All-in sustaining costs $ 140,301
Silver equivalent ounces sold 5,130,133
Kensington and
Wharf silver equivalent ounces sold 3,544,140
Consolidated silver equivalent ounces sold 8,674,273
All-in sustaining costs per silver equivalent ounce $
16.17 Inventory adjustments $ (0.04 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 16.13 Consolidated silver
equivalent ounces sold (average spot) 9,636,058
All-in sustaining costs per average spot silver equivalent
ounce $ 14.56 Inventory adjustments
$ (0.04 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 14.52
Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce
for Three Months Ended September 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) $ 21,794 $ 27,027
$ 22,536 $ 486 $ 71,843 $ 34,755 $ 26,158 $
60,913 $ 132,756
Amortization 5,761 5,244
1,723 113 12,841 8,046 6,461
14,507 27,348
Costs applicable to sales $
16,033 $ 21,783 $ 20,813 $ 373 $ 59,002 $ 26,709 $ 19,697 $ 46,406
$ 105,408
Silver equivalent ounces sold 1,462,401 1,868,085
1,390,552 46,069 4,767,107 8,397,467
Gold equivalent ounces
sold 30,998 29,508
60,506
Costs applicable to sales per
ounce $ 10.96 $ 11.66 $ 14.97 $ 8.10 $ 12.38 $ 862 $ 668 $ 767
$ 12.55
Inventory adjustments (0.26 ) (0.10 ) (0.57 ) —
(0.28 ) (3 ) (109 ) (55 ) (0.56 )
Adjusted costs
applicable to sales per ounce $ 10.70 $ 11.56 $ 14.40 $ 8.10
$ 12.10 $ 859 $ 559
$ 712 $
11.99
Costs applicable to sales per average spot
ounce $ 10.29 $ 11.11 $ 11.91 $ 11.62
Inventory
adjustments (0.24 ) (0.09 ) (0.27 ) (0.52 )
Adjusted costs
applicable to sales per average spot ounce $ 10.05 $ 11.02
$ 11.64 $ 11.10
Costs
applicable to sales $ 105,408
Treatment and refining
costs 761
Sustaining capital 19,762
General and
administrative 7,113
Exploration 3,706
Reclamation 4,036
Project/pre-development costs 2,133
All-in sustaining costs $ 142,919
Silver equivalent ounces sold 4,767,107
Kensington and
Wharf silver equivalent ounces sold 3,630,360
Consolidated silver equivalent ounces sold 8,397,467
All-in sustaining costs per silver equivalent ounce $
17.02 Inventory adjustments $ (0.56 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 16.46 Consolidated silver
equivalent ounces sold (average spot) 9,074,222
All-in sustaining costs per average spot silver equivalent
ounce $ 15.75 Inventory adjustments
$ (0.52 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 15.23
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 average spot ounce $
8.20 $ 10.30 $ 10.00 $ 9.45
Inventory adjustments (0.11 )
(0.06 ) (0.10 ) (0.09 )
Adjusted costs applicable to sales per
average spot ounce $ 8.09 $ 10.24
$ 9.90 $
9.36
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 Consolidated silver
equivalent ounces sold (average spot) 10,622,163
All-in sustaining costs per average spot silver equivalent
ounce $ 13.04 Inventory adjustments
$ (0.09 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 12.95
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 average spot ounce $
10.74 $ 11.20 $ 11.28 $ 10.34
Inventory adjustments (0.71 )
(0.03 ) (0.28 ) (0.20 )
Adjusted costs applicable to sales per
average spot ounce $ 10.03 $ 11.17
$ 11.00
$ 10.14
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 Consolidated silver
equivalent ounces sold (average spot) 9,828,373
All-in sustaining costs per average spot silver equivalent
ounce $ 13.71 Inventory adjustments
$ (0.20 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 13.51
Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce
for 2017 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) $ 211,000 $ 108,380 $ 102,000 $
3,750 $ 425,130 $ 130,500 $ 83,800 $
214,300 $ 639,430
Amortization 69,200 19,860
18,500 — 107,560 29,100 11,500
40,600 148,160
Costs applicable to sales $ 141,800 $
88,520 $ 83,500 $ 3,750 $ 317,570 $ 101,400 $ 72,300 $ 173,700 $
491,270
Silver equivalent ounces sold 14,000,000 7,680,000
5,900,000 380,000 27,960,000 40,800,000
Gold equivalent ounces
sold
124,000 90,000 214,000
Costs applicable to sales per ounce guidance $10.00 -
$10.50 $11.50 - $12.00 $14.00 - $14.50 $800 -
$850 $775 - $825 Costs applicable to
sales $ 491,270
Treatment and refining costs 4,300
Sustaining capital, including capital lease payments 82,000
General and administrative 30,000
Exploration 30,000
Reclamation 14,000
Project/pre-development costs
5,700
All-in sustaining costs $ 657,270
Silver equivalent
ounces sold 27,960,000
Kensington and Wharf silver
equivalent ounces sold 12,840,000
Consolidated silver
equivalent ounces sold 40,800,000
All-in sustaining costs
per silver equivalent ounce guidance $15.75 - $16.25
Reconciliation of All-in Sustaining
Costs per 70:1 Spot Silver Equivalent Ounce
for 2017 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) $ 211,000 $ 108,380 $ 102,000 $
3,750 $ 425,130 $ 130,500 $ 83,800 $
214,300 $ 639,430
Amortization 69,200 19,860
18,500 — 107,560 29,100 11,500
40,600 148,160
Costs applicable to sales $ 141,800 $
88,520 $ 83,500 $ 3,750 $ 317,570 $ 101,400 $ 72,300 $ 173,700 $
491,270
Silver equivalent ounces sold 15,380,000 8,160,000
5,900,000 380,000 29,820,000 44,800,000
Gold equivalent ounces
sold
124,000 90,000 214,000
Costs applicable to sales per ounce guidance $9.00 -
$9.50 $10.50 - $11.00 $14.00 - $14.50 $800 -
$850 $775 - $825 Costs applicable to
sales $ 491,270
Treatment and refining costs 4,300
Sustaining capital, including capital lease payments 82,000
General and administrative 30,000
Exploration 30,000
Reclamation 14,000
Project/pre-development costs
5,700
All-in sustaining costs $ 657,270
Silver equivalent
ounces sold 29,820,000
Kensington and Wharf silver
equivalent ounces sold 14,980,000
Consolidated silver
equivalent ounces sold 44,800,000
All-in sustaining costs
per silver equivalent ounce guidance $14.25 - $14.75
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170426006703/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5910www.coeur.com
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