Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) today
reported second quarter 2017 financial results, posting revenue of
$173.4 million, net loss of $11.0 million, or $0.06 per share, and
adjusted net loss1 of $2.5 million, or $0.01 per share. Second
quarter cash flow from operating activities was $29.3 million,
adjusted EBITDA1 was $33.4 million, and free cash flow1 was $(8.2)
million. Second quarter results reflect significantly higher levels
of investment in long-term growth through exploration expense and
capital expenditures as well as a $9.3 million one-time expense
from the early retirement of debt.
- Quarterly silver and gold production
down - As reported on July 6, 2017, second quarter silver and
gold production were 4.0 million ounces and 82,819 ounces,
respectively, or 8.9 million silver equivalent ounces (AgEqOz)1,
representing declines of 3% quarter-over-quarter and 7%
year-over-year. Palmarejo’s production increased significantly
year-over-year due to higher underground mining rates. Rochester’s
production declined year-over-year due to fewer tons placed in the
quarter. Kensington’s quarterly production declined year-over-year
due to lower grades, which are expected to increase during the
second half of 2017. Wharf’s production was lower as expected
year-over-year due to lower grades, which is expected to be offset
by higher mining rates during the second half of 2017. San
Bartolomé’s production was lower due to a lack of water and fewer
higher-grade third-party ore purchases during the quarter
- Higher second quarter costs per
ounce driven by lower production - Second quarter companywide
all-in sustaining costs (AISC) and adjusted AISC per average spot
AgEqOz1 were $15.90 and $15.73, respectively. Costs related to
accessing higher-grade material during the second half of 2017
impacted second quarter costs at Rochester (pre-stripping),
Kensington (expensed development and paste backfill) and Palmarejo
(ground support). Lower grades and pad timing and sequencing led to
higher costs per ounce at Wharf. Higher diesel costs and reagent
consumption also contributed to temporarily higher costs, which are
expected to reverse during the second half of 2017
- Significant investments in long-term
growth; key development projects on-schedule - Quarterly
exploration expense increased to $7.8 million, up nearly 50% from
first quarter and 250% compared to the second quarter of 2016.
Second quarter capital expenditures increased by approximately 60%
quarter-over-quarter and year-over-year to $37.5 million.
Rochester's Stage IV leach pad expansion has now been commissioned,
the Jualin deposit at Kensington is on-track to begin production in
late 2017, and mining rates at the Independencia deposit at
Palmarejo are now above 1,400 tons per day after temporarily
declining in the second quarter
- Accomplished key balance sheet
initiatives - The Company successfully refinanced 7.875% senior
notes due 2021 with 5.875% senior notes due 2024. Quarterly
interest expense declined 66%. Balance sheet repositioning has led
to credit ratings upgrades by both agencies. Cash and cash
equivalents were $250.0 million at June 30, 2017, up from $162.2
million at year-end. Additionally, cash flow from operating
activities and free cash flow1 were impacted by the acceleration of
interest on the repurchased senior notes of $5.1 million, which
would have otherwise been paid on August 1, 2017
- Modifications to full-year
guidance - Full-year production guidance was revised on July 6,
2017 by increasing Wharf's expected gold production and decreasing
San Bartolomé's expected silver production. As a result, Wharf's
full-year cost guidance range has been reduced and San Bartolomé's
full-year cost guidance range has been increased. Full-year
companywide cost guidance remains unchanged
- Further portfolio enhancements -
The Company agreed to sell the Endeavor silver stream and other
non-core royalties for total consideration of $13.0 million. The
transaction is expected to close in the third quarter of 2017.
Investments totaling approximately $12 million through mid-July
were made in six earlier-stage silver and gold companies
“We accomplished or advanced several strategic priorities during
the quarter that are critical to achieving our full-year and
longer-term objectives," said Mitchell J. Krebs, Coeur's President
and Chief Executive Officer. “Our stepped-up exploration programs
targeting higher-grade mineralization at Palmarejo and Kensington
are yielding positive results, we significantly strengthened our
balance sheet, the development of Jualin remains on-track to
commence production later in the year, and we have now begun to
stack ore on the new Stage IV leach pad at Rochester.
“Through the first half of the year, we generated $84.6 million
of cash flow from operating activities and $23.1 million of free
cash flow. As we enter the second half of the year, we anticipate
higher production from all five of our operations: Palmarejo due to
the rising mining rates we are now seeing from Independencia,
Kensington due to higher expected gold grades from three separate
areas in the mine, Rochester and Wharf due to higher anticipated
mining and crushing rates, and San Bartolomé due to an expected
increase in third party ore purchases. Based on these production
increases, together with lower expected unit costs, we anticipate
delivering additional free cash flow during the remainder of the
year.
"Upcoming milestones include initial production from Jualin and
the release of an updated Preliminary Economic Assessment (PEA) for
La Preciosa, both expected later this year, as well as updated
technical reports for Kensington and Rochester planned for early
2018. The updated technical report for Rochester is expected to
reflect several operating and capital enhancements, and the updated
technical report for Kensington will incorporate the results of the
Company's ongoing drill program in Alaska, particularly at
Jualin.”
Financial and Operating Highlights
(Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
2Q 2017
1Q 2017
4Q 2016
3Q 2016
2Q 2016
Revenue
$ 173.4 $ 206.1 $ 159.2 $ 176.2 $ 182.0
Costs
Applicable to Sales $ 125.6 $ 132.7 $ 102.0 $
105.4 $ 100.5
General and Administrative Expenses $
7.0 $ 10.1 $ 6.6 $ 7.1 $ 7.4
Net Income (Loss)
$ (11.0 ) $ 18.7 $ (8.3 ) $ 69.6 $ 14.5
Net
Income (Loss) Per Share $ (0.06 ) $ 0.10 $
(0.03 ) $ 0.42 $ 0.09
Adjusted Net Income (Loss)1
$ (2.5 ) $ 7.0 $ 2.8 $ 38.6 $ 16.9
Adjusted
Net Income (Loss)1 Per Share $
(0.01 ) $ 0.04 $ 0.01 $ 0.23 $ 0.11
Weighted
Average Shares Outstanding 179.2 178.9 178.6 161.0 157.9
EBITDA1 $ 23.6 $ 73.4 $ 27.4 $ 50.9 $
62.1
Adjusted EBITDA1 $ 33.4 $ 56.6 $
44.0 $ 62.7 $ 72.0
Cash Flow from Operating Activities
$ 29.3 $ 55.3 $ 25.5 $ 47.8 $ 45.9
Capital
Expenditures $ 37.5 $ 24.0 $ 29.9 $ 25.6 $ 23.3
Free Cash Flow1 $ (8.2 ) $ 31.3
$ (4.5 ) $ 14.6 $ 12.2
Cash, Equivalents & Short-Term
Investments $ 250.0 $ 210.0 $ 162.2 $ 222.5 $
257.6
Total Debt2 $ 284.8 $ 219.1 $
210.9 $ 401.7 $ 511.1
Average Realized Price Per Ounce –
Silver
$ 16.98 $ 17.61 $ 16.64 $ 19.61 $ 17.38
Average
Realized Price Per Ounce – Gold $ 1,206 $ 1,149 $
1,170 $ 1,317 $ 1,255
Silver Ounces Produced 4.0 3.9
3.9 3.5 4.0
Gold Ounces Produced 82,819 88,218
102,500 84,871 92,727
Silver Equivalent Ounces
Produced1 8.9 9.2 10.0 8.6 9.6
Silver Ounces
Sold 4.1 4.5 3.4 3.4 4.0
Gold Ounces Sold
86,194 110,874 87,108 83,389 88,543
Silver Equivalent
Ounces Sold1 9.3 11.1 8.6 8.4 9.3
Silver
Equivalent Ounces Sold (Average Spot)1 10.4 12.2
9.6 9.1 10.6
Adjusted CAS per AgEqOz1 $
12.91 $ 11.38 $ 12.05 $ 12.10 $ 10.71
Adjusted CAS per
Average Spot AgEqOz1 $ 12.00 $ 10.63 $
11.34 $ 11.64 $ 9.90
Adjusted CAS per AuEqOz1
$ 860 $ 791 $ 676 $ 712 $ 644
Adjusted AISC per
AgEqOz1 $ 17.64 $ 15.02 $ 16.13 $ 16.46 $
14.82
Adjusted AISC per Average Spot AgEqOz1 $
15.73 $ 13.66 $ 14.52 $ 15.23 $ 12.95
Financial Results
Second quarter revenue was $173.4 million, 16% lower than the
first quarter, which benefited from metal inventory carried over
from the fourth quarter of 2016. Silver sales contributed 40%,
while gold sales contributed 60%. The Company's U.S. operations
generated 55% of second quarter revenue. Average realized silver
and gold prices were $16.98 and $1,206 per ounce, respectively,
representing a decrease of 4% and an increase of 5%
quarter-over-quarter. The average realized gold price reflects the
sale of 9,683 ounces to Franco-Nevada at a price of $800 per ounce
under the gold stream at Palmarejo.
Costs applicable to sales were $125.6 million for the quarter,
decreasing 5% versus the first quarter due to lower silver and gold
ounces sold, which was partially offset by higher unit costs.
General and administrative expenses were $7.0 million, 31% lower
than in the first quarter due to lower outside services and
employee-related costs. Interest expense, net of capitalized
interest, decreased 66% to $3.7 million compared to $10.9 million
in the second quarter of 2016 primarily due to lower debt levels
and a lower coupon on the new senior notes due 2024.
The successful refinancing of the Company’s senior notes during
the quarter resulted in two notable one-time impacts to financial
results. Net income and EBITDA1 reflected a $9.3 million one-time
expense related to the early redemption of debt, while cash flow
from operating activities and free cash flow1 were impacted by the
acceleration of $5.1 million of interest, which would have
otherwise been paid on August 1, 2017.
Second quarter financial performance was also impacted by higher
year-over-year and quarter-over-quarter exploration expense, while
free cash flow1 specifically was reduced by higher capital
expenditures in the quarter related to key capital projects at
Palmarejo, Rochester, and Kensington that are expected to lead to
higher production, higher grades, and lower unit costs in the
second half of the year.
Operations
Highlights of second quarter 2017 results for each of the
Company's operating segments are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2Q 2017
1Q 2017
4Q 2016
3Q 2016
2Q 2016
Underground Operations: Tons mined 335,856
355,793 293,706 253,681 283,971
Average silver grade (oz/t)
4.98 4.84 5.00 3.96 5.40
Average gold grade (oz/t)
0.08 0.09 0.09 0.08 0.08
Surface Operations: Tons
mined — — — — 1,695
Average silver grade (oz/t)
— — — — 7.77
Average gold grade (oz/t) — — — —
0.07
Processing: Total tons milled 335,428
360,383 287,569 274,644 270,142
Average recovery rate – Ag
87.3% 86.5% 89.1% 85.5% 89.5%
Average recovery rate –
Au 91.1% 93.7% 90.4% 77.7% 86.4%
Silver ounces
produced (000's) 1,457 1,531 1,269 933 1,307
Gold
ounces produced 24,292 30,792 23,906 16,608 18,731
Silver equivalent ounces produced1 (000's)
2,914 3,378 2,703 1,930 2,431
Silver ounces sold
(000's) 1,484 1,965 937 778 1,350
Gold ounces
sold 25,191 41,045 15,558 11,410 19,214
Silver
equivalent ounces sold1 (000's) 2,996
4,427 1,872 1,462 2,502
Silver equivalent ounces
sold1 (average spot) (000's) 3,324 4,837
2,042 1,555 2,792
Metal sales $53.2 $77.7 $32.5 $30.7
$48.3
Costs applicable to sales
$33.9
$43.0 $20.9 $16.0 $22.9
Adjusted CAS per
AgEqOz1 $11.21 $9.68 $11.01 $10.70 $9.02
Adjusted CAS per average spot AgEqOz1 $10.11
$8.87 $10.11 $10.05 $8.09
Exploration expense $3.1
$1.6 $2.4 $1.3 $0.6
Cash flow from operating activities
$18.8 $50.5 $(1.7) $13.7 $11.3
Sustaining capital
expenditures (excludes capital lease payments) $6.1 $5.0
$3.9 $6.7 $5.5
Development capital expenditures $5.1
$1.2 $4.2 $3.3 $3.4
Total capital
expenditures $11.2 $6.2 $8.1 $10.0 $8.9
Free cash
flow (before royalties) $7.6 $44.3 $(9.8) $3.7 $2.4
Gold production royalty payments $— $—
$— $7.6 $10.5
Free cash flow1
$7.6 $44.3 $(9.8) $(3.9) $(8.1)
- Average mining rates at Guadalupe
remained flat quarter-over-quarter at 2,600 tons per day, while
average mining rates at Independencia decreased to approximately
1,000 tons per day in the second quarter from 1,225 tons per day in
the first quarter due to additional ground support measures
required during April and May. Mining rates at Independencia are
expected to accelerate in the second half with mining rates at
Independencia reaching approximately 1,400 tons per day in
July
- Silver equivalent1 production of 2.9
million ounces was 14% lower quarter-over-quarter and 20% higher
year-over-year. Metal sales for the quarter were in-line with
production yet lower than in the first quarter, which benefited
from a reduction in inventory carried over from the fourth quarter
of 2016
- Second quarter adjusted CAS per average
spot AgEqOz1 was $10.11, increasing 14% quarter-over-quarter and
25% year-over-year. The increase in costs was primarily due to
lower mining rates and additional costs at Independencia associated
with areas requiring additional ground support, which led to the
mining of lower grade stopes. Higher mining rates and a return to
the higher grade stopes are expected to drive higher production and
lower unit costs in the second half of 2017
- Quarterly free cash flow1 totaled $7.6
million, bringing year-to-date free cash flow to $51.9 million.
Despite higher anticipated capital expenditures in the third
quarter, free cash flow1 is expected to increase due to higher
production levels and lower unit costs
- Exploration expense nearly doubled
compared to the first quarter to $3.1 million to accelerate
resource expansion and new target definition efforts
- Gold sales to Franco-Nevada under the
gold stream agreement were 9,683 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
- Full-year guidance remains unchanged
with production expected to be 6.5 - 7.0 million ounces of silver
and 110,000 - 120,000 ounces of gold, or 13.1 -14.2 million
AgEqOz1, at CAS per AgEqOz1 of $10.00 - $10.50 on a 60:1 silver
equivalent basis
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2Q 2017 1Q 2017 4Q 2016
3Q 2016 2Q 2016 Ore tons placed
4,493,100 3,513,708 3,878,487 4,901,039 6,402,013
Average
silver grade (oz/t) 0.53 0.58 0.57 0.54 0.54
Average
gold grade (oz/t) 0.003 0.002 0.002 0.003 0.003
Silver ounces produced (000's) 1,156 1,127 1,277
1,161 1,197
Gold ounces produced 10,745 10,356 14,231
12,120 13,940
Silver equivalent ounces produced1
(000's) 1,801 1,749 2,131 1,888 2,033
Silver
ounces sold (000's) 1,135 1,289 1,205 1,163 1,137
Gold ounces sold 10,658 13,592 12,988 11,751 12,909
Silver equivalent ounces sold1 (000's)
1,774 2,104 1,984 1,868 1,912
Silver equivalent ounces
sold1 (average spot) (000's) 1,913 2,240
2,128 1,963 2,106
Metal sales $32.8 $39.0 $36.2 $37.9
$35.8
Costs applicable to sales $24.2 $26.4 $23.7
$21.8 $21.7
Adjusted CAS per AgEqOz1
$13.54 $12.57 $11.99 $11.56 $11.30
Adjusted CAS per
average spot AgEqOz1 $12.56 $11.81 $11.16 $11.02
$10.24
Exploration expense $0.3 $0.1 $0.4 $0.1 $0.2
Cash flow from operating activities $(1.1) $5.7 $7.6
$9.5 $9.2
Sustaining capital expenditures (excludes capital
lease payments) $1.1 $0.2 $1.5 $1.2 $2.6
Development
capital expenditures $12.7 $10.4 $4.3
$2.2 $1.3
Total capital expenditures
$13.8 $10.6 $5.8 $3.4 $3.9
Free cash flow1
$(14.9) $(4.9) $1.8 $6.1 $5.3
- Tons placed increased nearly 30%
quarter-over-quarter as crushing rates recovered from record
rainfall during the first quarter. Silver and gold production
increased 3% and 4%, respectively, to 1.2 million ounces and 10,745
ounces compared to the first quarter. Higher production is expected
in the second half of 2017 due in part to the impact of increased
tons placed in the second quarter
- Adjusted CAS per average spot AgEqOz1
increased 6% quarter-over-quarter and 23% year-over-year to $12.56.
Elevated unit costs during the quarter were related to increased
waste stripping activity to expose higher expected gold grades. The
costs associated with supporting this increased stripping impacted
the second quarter but will be discontinued at the end of July.
Processing costs were also higher in the quarter due to increased
use of cyanide to offset dilution caused by record rainfall in the
first half of the year. Higher production and lower unit costs are
anticipated in the second half of the year following the
commissioning of the Stage IV leach pad expansion, completion of
recent waste stripping, higher expected gold grades, production
ounces resulting from the 30% increase in tons placed in the second
quarter, and normalization of cyanide usage
- Negative quarterly free cash flow1 of
$14.9 million was driven by higher stripping rates and higher
capital expenditures related to the Stage IV leach pad expansion.
Higher production and lower capital expenditures are expected to
drive positive free cash flow1 at Rochester in the second half of
the year
- The Company repurchased the Rochester
net smelter return royalty obligation for $5.0 million in cash,
recording a pre-tax gain of $2.3 million
- Rochester was awarded the top 2017 Mine
Operator Safety Award in the Medium Surface Operations category by
the Nevada Mining Association during the second quarter. Several of
Rochester's employees were also awarded 2017 Individual Safety
Awards for their dedication to safety
- Production guidance for the full year
remains unchanged at 4.2 - 4.7 million ounces of silver and 47,000
- 52,000 ounces of gold, or 7.0 - 7.8 million AgEqOz1, at CAS per
AgEqOz1 of $11.50 - $12.00 on a 60:1 silver equivalent basis
Kensington, Alaska
(Dollars in millions,
except per ounce amounts) 2Q 2017 1Q 2017
4Q 2016 3Q 2016 2Q 2016
Tons milled 163,163 165,895 163,410 140,322 157,117
Average gold grade (oz/t) 0.17 0.17 0.22 0.20 0.22
Average recovery rate 93.2% 94.0% 94.4% 94.8% 94.1%
Gold ounces produced 26,424 26,197 33,688 26,459
32,210
Gold ounces sold 29,031 32,144 28,864 30,998
30,178
Metal sales $35.6 $38.0 $34.2 $40.2 $36.5
Costs applicable to sales $28.0 $28.4 $23.0 $26.7
$22.6
Adjusted CAS per AuOz1 $952 $884 $801
$859 $740
Exploration expense $2.0 $0.8 $1.3 $1.2
$1.0
Cash flow from operating activities $7.0 $4.5
$11.4 $18.0 $7.7
Sustaining capital expenditures (excludes
capital lease payments) $3.7 $2.5 $8.9 $5.2 $4.3
Development capital expenditures $4.9 $3.0
$3.7 $3.4 $3.2
Total capital
expenditures $8.6 $5.5 $12.6 $8.6 $7.5
Free cash
flow1 $(1.6) $(1.0) $(1.2) $9.4 $0.2
- Gold production of 26,424 ounces was
relatively unchanged compared to the first quarter and 18% lower
year-over-year primarily due to lower grades. As previously noted,
higher grades and production are expected in the second half of the
year
- Gold sales decreased 10%
quarter-over-quarter to 29,031 ounces, primarily due to elevated
sales in the first quarter resulting from an inventory carryover
from the fourth quarter of 2016
- Adjusted CAS per gold ounce (AuOz)1
were $952, representing an increase of 8% over the first quarter.
Higher costs in the quarter were due to the mining of lower grade
stopes caused by lower-than-planned paste backfill rates and
expensed underground development to gain access to higher-grade
stopes in the Kensington Main deposit
- The mine plan in the second half of the
year anticipates mining from higher grade areas, which is expected
to lead to increased production and lower unit costs
- Development of the Jualin deposit
remains on track for initial production later this year
- Exploration expense more than doubled
compared to the first quarter to $2.0 million as efforts
accelerated to extend and expand the Jualin deposit and to drill
structures located in the Kensington Main deposit
- Guidance for the full year remains
unchanged at 120,000 - 125,000 ounces of gold at CAS per AuOz1 of
$800 - $850
Wharf, South Dakota
(Dollars in millions,
except per ounce amounts) 2Q 2017 1Q 2017
4Q 2016 3Q 2016 2Q 2016
Ore tons placed 993,167 1,292,181 1,178,803 1,199,008
915,631
Average silver grade (oz/t) 0.19 0.22 0.29
0.24 0.28
Average gold grade (oz/t) 0.024 0.027 0.027
0.033 0.037
Gold ounces produced 21,358 20,873 30,675
29,684 27,846
Silver ounces produced (000's) 13 20 32
25 35
Gold equivalent ounces produced1 21,568
21,207 31,202 30,106 28,433
Silver ounces sold (000's)
11 33 30 17 33
Gold ounces sold 21,314 24,093
29,698 29,230 26,242
Gold equivalent ounces sold1
21,495 24,636 30,204 29,508 26,786
Metal sales
$27.0 $30.3 $35.5 $39.3 $34.0
Costs applicable to
sales $15.8 $16.3 $16.9 $19.7 $14.3
Adjusted CAS per
AuEqOz1 $737 $670 $556 $559 $534
Exploration
expense $— $— $— $— $—
Cash flow from operating
activities $8.8 $8.6 $15.4 $21.1 $16.2
Sustaining
capital expenditures (excludes capital lease payments)
$1.5 $0.9 $1.3 $0.6 $1.5
Development capital
expenditures $— $— $— $— $—
Total capital expenditures $1.5 $0.9 $1.3 $0.6 $1.5
Free cash flow1 $7.3 $7.7 $14.1 $20.5 $14.7
- Gold production increased 2%
quarter-over-quarter to 21,358 ounces. Year-over-year, gold
production decreased 23% due to fewer tons mined from the
higher-grade Golden Reward deposit, the remainder of which is
expected to be mined in the third quarter
- Gold sales of 21,314 ounces were
in-line with production
- Adjusted CAS per AuEqOz1 increased 10%
quarter-over-quarter and 38% year-over-year to $737 due primarily
to a lower gold grade. Lower tons placed and higher unit costs were
also attributable to timing of pad off-loading. Mining rates are
expected to increase during the second half of 2017 as a result of
a larger haul truck fleet and improvements made to the crusher and
processing facility over the past 18 months
- During the quarter, Wharf generated
$7.3 million of free cash flow1, bringing year-to-date free cash
flow1 to $15.0 million. Wharf has generated cumulative free cash
flow1 of $101.4 million since its acquisition in February 2015 for
$99 million
- As published on July 6, 2017, full-year
gold production guidance increased from 85,000 - 90,000 ounces to
90,000 - 95,000 ounces. Wharf's full-year cost guidance has been
revised lower from CAS per AuEqOz1 of $775 - $825 to $700 -
$750
San Bartolomé, Bolivia
(Dollars in millions,
except per ounce amounts) 2Q 2017 1Q 2017
4Q 2016 3Q 2016 2Q 2016
Tons milled 417,784 384,267 368,131 450,409 440,441
Average silver grade (oz/t) 3.31 3.49 3.96 3.43 3.79
Average recovery rate 92.8% 90.7% 86.3% 88.7% 87.4%
Silver ounces produced (000's) 1,285 1,215 1,259
1,370 1,458
Silver ounces sold (000's) 1,398 1,148
1,218 1,391 1,418
Metal sales $23.8 $20.6 $19.9 $27.5
$25.2
Costs applicable to sales $23.4 $18.2 $17.3
$20.8 $18.6
Adjusted CAS per AgOz1 $15.96
$15.88 $13.97 $14.40 $12.97
Exploration expense $— $—
$— $— $—
Cash flow from operating activities $5.2
$11.3 $4.1 $8.6 $11.2
Sustaining capital expenditures (excludes
capital lease payments) $0.4 $0.4 $1.8 $3.0 $1.3
Development capital expenditures $— $—
$— $— $—
Total capital expenditures
$0.4 $0.4 $1.8 $3.0 $1.3
Free cash flow1
$4.8 $10.9 $2.3 $5.6 $9.9
- Second quarter production increased 6%
to 1.3 million silver ounces, primarily due to process enhancements
that improved recovery rates; year-over-year, production declined
12% as a result of lower third-party ore purchases and the
continued effects of drought conditions in the Potosí region of
Bolivia
- Timing of sales lifted silver sales to
1.4 million ounces, 22% higher quarter-over-quarter
- Adjusted CAS per silver ounce (AgOz)1
of $15.96 were flat compared to the first quarter. Increased
high-grade third party ore purchases are expected to result in
lower unit costs in the second half of the year
- Free cash flow1 for the second quarter
was $4.8 million, bringing total year-to-date free cash flow to
$15.7 million
- On July 6, 2017, full-year production
guidance was lowered to 5.0 - 5.4 million ounces of silver from 5.4
- 5.9 million ounces due to challenges associated with persistent
drought conditions. As a result, cost guidance has been revised
from CAS per AgOz1 of $14.00 - $14.50 to $15.75 - $16.25
Exploration
Second quarter expensed exploration increased $2.5 million to
$7.8 million compared to the first quarter, while capitalized
exploration increased from $2.3 million in the first quarter to
$2.9 million. At quarter-end, the Company had 18 drill rigs active
across its portfolio compared to 11 one year earlier.
Second Quarter Exploration Highlights
- Nine drill rigs were active at
Palmarejo targeting resource conversion at Guadalupe and
Independencia as well as discovery and resource expansion at
several locations. During the quarter, 89,001 feet (27,128 meters)
were drilled compared to 50,930 feet (15,523 meters) during the
first quarter. Drill results continue to be encouraging. Of the
nine drill rigs, three are focusing on expanding the Nación - Dana
deposit located between Independencia and Guadalupe. Two additional
rigs are targeting new discoveries in the Guadalupe footwall and
exploring new structures between Guadalupe and Nación from
underground. One drill rig is currently targeting the La Bavisa
structure located north-northeast of Independencia while one
additional drill is focused on two new targets - Hidalgo and
Reforma - located near Independencia North
- Drilling at Kensington accelerated with
an expanded focus on both resource conversion and expansion of the
Jualin deposit. 43,341 feet (13,210 meters) of drilling was
completed during the second quarter compared to 14,654 feet (4,467
meters) in the first quarter. Two surface rigs continue to target
extensions of Jualin Vein #4 to the south and down dip. One
underground rig commenced drilling the Raven South structure while
drilling to upgrade resources in Zone 12 in the Kensington main
deposit continues to show grades well above the average reserve
grade
- Drilling at La Preciosa, which began
late 2016, was completed early in the second quarter. The resulting
geologic model is currently under evaluation and an updated PEA is
expected later this year
- Additional drilling at Rochester and
Wharf remains focused on resource conversion
Full-Year 2017 Outlook
Coeur's 2017 production guidance remains unchanged from the
revised guidance published July 6, 2017. Revised 2017 cost guidance
is shown in the table below.
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 5,000 - 5,400 —
5,000 - 5,400
Endeavor 105 — 105
Kensington — 120,000 - 125,000
7,200 - 7,500
Wharf — 90,000 - 95,000
5,400 - 5,700
Total 15,805 - 17,205 367,000 -
392,000 37,825 - 40,725
2017 Cost Outlook
Previous Guidance (if changed) Current
Guidance (dollars in millions, except per ounce amounts)
60:1 70:1 Spot 60:1
70:1 Spot CAS per AgEqOz1 –
Palmarejo $10.00 - $10.50 $9.00 - $9.50
CAS
per AgEqOz1 – Rochester
$11.50 - $12.00
$10.50 - $11.00
CAS per AgOz1 – San Bartolomé $14.00 - $14.50
$15.75 - $16.25
CAS per AuOz1 – Kensington
$800 - $850
CAS per AuEqOz1 – Wharf $775 -
$825 $700 - $750
Capital Expenditures $109 - $129
General
and Administrative Expenses $28 - $32
Exploration
Expense $29 - $31
AISC per AgEqOz1
$15.75 - $16.25
$14.25 - $14.75
Financial Results and Conference Call
Coeur will report its financial results for second quarter of
2017 on July 26, 2017 after the New York Stock Exchange closes for
trading. There will be a conference call on July 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
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 August 10, 2017.
Replay numbers: (877) 344-7529 (US)
(855) 669-9658 (Canada) (412) 317-0088
(International) Conference ID: 101 07 016
About Coeur
Coeur Mining, Inc. 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. 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, cash flow, expenditures, growth, interest expense, mining
rates, crushing rates, exploration efforts, waste stripping,
cyanide volumes, 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, operations at Rochester and the timing of publication of
a new technical report, development efforts at Kensington and the
timing of publication of a new technical report for, operations at
Wharf, third party ore purchases at San Bartolomé, and expectations
regarding the sale of the Endeavor silver stream and other royalty
assets. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause Coeur's
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, the risk that the sale of the
Endeavor silver stream and other royalty assets does not close on a
timely basis or at all, 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, 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), adjusted costs applicable to sales per silver
ounce (or per gold 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 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), adjusted costs applicable to sales per silver ounce (or per
gold 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
1. EBITDA, 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), adjusted costs applicable to sales per silver ounce (or per
gold 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.
2. Includes capital leases. Net of debt issuance costs and
premium received.
Average Spot Prices
2Q 2017 1Q 2017
4Q 2016 3Q 2016 2Q 2016
Average Silver Spot Price Per Ounce $ 17.21 $
17.42 $ 17.19 $ 19.61 $ 16.78
Average Gold
Spot Price Per Ounce $ 1,257 $ 1,219 $ 1,222 $ 1,335 $ 1,260
Average Silver to Gold Spot Equivalence 73:1 70:1 71:1 68:1
75:1
For Additional Information Coeur Mining, Inc.104 S.
Michigan Avenue, Suite 900Chicago, IL 60603Attention: Courtney
Lynn, Vice President, Investor Relations and TreasurerPhone: (312)
489-5910www.coeur.com
Coeur Mining, Inc. and
Subsidiaries
Condensed Consolidated Statements of
Comprehensive Income (Loss) (Unaudited)
Three months ended June 30,
Six months ended June 30,
2017
2016 2017 2016 In thousands,
except share data Revenue $ 173,354 $ 182,007 $ 379,492 $
330,394 COSTS AND EXPENSES Costs applicable to sales(1) 125,621
100,465 258,333 202,020 Amortization 32,946 37,505 73,050 65,470
General and administrative 7,042 7,400 17,175 15,676 Exploration
7,813 2,233 13,065 3,963 Write-downs — — — 4,446 Pre-development,
reclamation, and other 4,366 4,364 8,947 8,568
Total costs and expenses 177,788 151,967 370,570 300,143
OTHER INCOME (EXPENSE), NET Loss on debt extinguishment (9,342 ) —
(9,342 ) — Fair value adjustments, net 336 (3,579 ) (864 ) (12,274
) Interest expense, net of capitalized interest (3,749 ) (10,875 )
(7,335 ) (21,995 ) Other, net 4,136 (1,857 ) 25,275
(543 ) Total other income (expense), net (8,619 ) (16,311 ) 7,734
(34,812 ) Income (loss) before income and mining taxes
(13,053 ) 13,729 16,656 (4,561 ) Income and mining tax (expense)
benefit 2,098 768 (8,948 ) (1,338 ) NET INCOME (LOSS)
$ (10,955 ) $ 14,497 $ 7,708 $ (5,899 ) 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 June 30, 2016, respectively (18 ) 2,103 (2,200
) 3,146 Reclassification adjustments for impairment of equity
securities 305 20 426 20 Reclassification adjustments for realized
(gain) loss on sale of equity securities (203 ) (314 ) 1,268
273 Other comprehensive income (loss) 84 1,809
(506 ) 3,439 COMPREHENSIVE INCOME (LOSS) $ (10,871 ) $
16,306 $ 7,202 $ (2,460 ) NET INCOME (LOSS)
PER SHARE Basic $ (0.06 ) $ 0.09 $ 0.04 $ (0.04 )
Diluted $ (0.06 ) $ 0.09 $ 0.04 $ (0.04 )
Coeur Mining, Inc. and Subsidiaries Condensed
Consolidated Statements of Cash Flows (Unaudited)
Three months ended June 30, Six months ended June
30, 2017 2016 2017
2016 In thousands CASH FLOWS FROM OPERATING
ACTIVITIES: Net income (loss) $ (10,955 ) $ 14,497
7,708 (5,899 ) Adjustments: Amortization 32,946 37,505 73,050
65,470 Accretion 2,593 2,848 5,107 6,017 Deferred taxes (4,844 )
(15,170 ) (3,469 ) (17,275 ) Loss on debt extinguishment 9,342 —
9,342 — Fair value adjustments, net (336 ) 3,579 864 12,274
Stock-based compensation 2,235 2,307 5,542 5,222 Gain on sale of
the Joaquin project — — (21,138 ) — Write-downs — — — 4,446 Other
(3,624 ) 1,930 (5,822 ) 494 Changes in operating assets and
liabilities: Receivables (1,916 ) (12,402 ) 11,190 (8,921 ) Prepaid
expenses and other current assets 3,612 (898 ) (687 ) 381 Inventory
and ore on leach pads (997 ) (7,686 ) 13,295 (15,508 ) Accounts
payable and accrued liabilities 1,223 19,429 (10,432
) 5,855 CASH PROVIDED BY OPERATING ACTIVITIES 29,279
45,939 84,550 52,556 CASH FLOWS
FROM INVESTING ACTIVITIES: Capital expenditures (37,482 ) (23,288 )
(61,461 ) (45,460 ) Proceeds from the sale of assets 436 7,293
15,455 11,302 Purchase of investments (8,948 ) (92 ) (9,964 ) (99 )
Sale of investments 898 648 10,918 1,645 Other (61 ) (1,446 )
(1,607 ) (2,919 ) CASH USED IN INVESTING ACTIVITIES (45,157
) (16,885 ) (46,659 ) (35,531 ) CASH FLOWS FROM FINANCING
ACTIVITIES: Issuance of common stock — 73,071 — 73,071 Issuance of
notes and bank borrowings 244,958 — 244,958 — Payments on debt,
capital leases, and associated costs (188,931 ) (6,712 ) (192,157 )
(12,683 ) Gold production royalty payments — (10,461 ) — (19,592 )
Other (473 ) (448 ) (3,720 ) (728 ) CASH PROVIDED BY
FINANCING ACTIVITIES 55,554 55,450 49,081
40,068 Effect of exchange rate changes on cash and
cash equivalents 329 (302 ) 884 (216 )
INCREASE IN CASH AND CASH EQUIVALENTS
40,005 84,202 87,856 56,877 Cash and cash equivalents at beginning
of period 210,033 173,389 162,182
200,714 Cash and cash equivalents at end of period $ 250,038
$ 257,591 $ 250,038 $ 257,591
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets June
30, 2017 (Unaudited) December 31, 2016
ASSETS In thousands, except share data CURRENT ASSETS
Cash and cash equivalents $ 250,038 $ 162,182 Receivables 69,656
60,431 Inventory 67,895 106,026 Ore on leach pads 75,699 64,167
Prepaid expenses and other 18,563 17,981 481,851
410,787 NON-CURRENT ASSETS Property, plant and equipment, net
227,738 216,796 Mining properties, net 550,247 558,455 Ore on leach
pads 69,954 67,231 Restricted assets 19,294 17,597 Equity
securities 11,872 4,488 Receivables 15,140 30,951 Other 18,552
12,604 TOTAL ASSETS $ 1,394,648 $ 1,318,909
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES Accounts payable $ 58,800 $ 53,335 Accrued
liabilities and other 41,250 42,743 Debt 13,014 12,039 Royalty
obligations — 4,995 Reclamation 3,599 3,522 116,663
116,634 NON-CURRENT LIABILITIES Debt 271,766 198,857 Royalty
obligations — 4,292 Reclamation 99,541 95,804 Deferred tax
liabilities 75,388 74,798 Other long-term liabilities 53,779
60,037 500,474 433,788 STOCKHOLDERS’ EQUITY Common stock,
par value $0.01 per share; authorized 300,000,000 shares, issued
and outstanding 181,441,769 at June 30, 2017 and 180,933,287 at
December 31, 2016 1,814 1,809 Additional paid-in capital 3,316,407
3,314,590 Accumulated other comprehensive income (loss) (2,994 )
(2,488 ) Accumulated deficit (2,537,716 ) (2,545,424 ) 777,511
768,487 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $
1,394,648 $ 1,318,909
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share
amounts)
LTM
LTM
2Q 2017 2Q 2017 1Q 2017 2016 4Q
2016 3Q 2016 2Q 2016 2Q 2016 Net income
(loss) $ 68,959 $ (10,955 ) $ 18,663 $ 55,352 $ (8,306 ) $ 69,557 $
(323,118 ) $ 14,497 Interest expense, net of capitalized interest
22,260 3,749 3,586 36,920 6,857 8,068 46,199 10,875 Income tax
provision (benefit) (46,629 ) (2,098 ) 11,046 (54,239 ) (1,122 )
(54,455 ) (24,733 ) (768 ) Amortization 130,742 32,946
40,104 123,161 29,929 27,763
137,156 37,505
EBITDA
175,332 23,642 73,399 161,194 27,358 50,933 (164,496 ) 62,109 Fair
value adjustments, net 171 (336 ) 1,200 11,581 (1,654 ) 961 4,942
3,579 Impairment of equity securities 1,109 305 121 703 683 — 820
20 Foreign exchange (gain) loss 2,552 (1,000 ) (1,349 ) 10,720
3,435 1,466 17,326 5,655 Gain on sale of Joaquin project (21,138 )
— (21,138 ) — — — — — (Gain) loss on sale of assets and securities
(5,570 ) (513 ) 2,066 (11,334 ) 339 (7,462 ) (4,701 ) (3,126 ) Gain
on repurchase of Rochester royalty (2,332 ) (2,332 ) — — — — — —
(Gain) loss on debt extinguishment 30,707 9,342 — 21,365 11,325
10,040 (16,187 ) — Corporate reorganization costs — — — — — — 647 —
Transaction-related costs 27 — — 1,199 1 26 1,271 792 Asset
retirement obligation accretion 9,083 2,450 2,390 8,369 2,147 2,096
8,530 2,066 Inventory adjustments and write-downs 6,707 1,796 (104
) 6,917 389 4,665 5,208 946 Write-downs — — —
4,446 — — 317,783 —
Adjusted
EBITDA $ 196,648 $ 33,354 $ 56,585 $
215,160 $ 44,023 $ 62,725 $ 171,143 $
72,041
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2Q 2017 1Q 2017 4Q 2016
3Q 2016 2Q 2016 Net income (loss) $
(10,955 ) $ 18,663 $ (8,306 ) $ 69,557 $ 14,497 Fair value
adjustments, net (336 ) 1,200 (1,654 ) 961 3,579 Impairment of
marketable securities 305 121 683 — 20 Write-downs — — — 3,689 —
Gain on sale of Joaquin project — (21,138 ) — — — (Gain) loss on
sale of assets and securities (513 ) 2,066 339 (7,462 ) (3,126 )
Gain on repurchase of Rochester royalty (2,332 ) — — — — Loss on
debt extinguishment 9,342 — 11,325 10,040 — Transaction costs — — 1
26 792 Deferred tax on reorganization — — — (40,767 ) — Foreign
exchange (gain) loss 1,972 4,268 351 2,549 (2,810 ) Tax effect of
adjustments — 1,807 — (38 ) $ 3,996
Adjusted net income (loss) $ (2,517 ) $ 6,987 $ 2,739
$ 38,555 $ 16,948
Adjusted net income (loss) per share -
Basic
$ (0.01 ) $ 0.04 $ 0.01 $ 0.24 $ 0.11
Adjusted net income (loss) per share -
Diluted
$ (0.01 ) $ 0.04 $ 0.01 $ 0.23 $ 0.11
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2Q 2017 1Q 2017 4Q 2016
3Q 2016 2Q 2016 Cash flow from
operating activities $ 29,279 $ 55,271 $ 25,449 $ 47,812 $ 45,939
Capital expenditures (37,482 ) (23,979 ) (29,926 ) (25,627 )
(23,288 ) Gold production royalty payments — — —
(7,563 ) (10,461 ) Free cash flow (8,203 ) 31,292
(4,477 ) 14,622 12,190
Reconciliation of All-in Sustaining Costs per Silver Equivalent
Ounce for Three Months Ended June 30, 2017
Silver Gold Total In
thousands except per ounce amounts Palmarejo
Rochester
SanBartolomé
Endeavor Total Kensington
Wharf Total Costs applicable to sales,
including amortization (U.S. GAAP) $ 48,325 $ 29,099
$ 25,604 $ 586 $ 103,614 $ 36,335 $
18,317 $ 54,652 $ 158,266
Amortization 14,431
4,938 2,212 168 21,749 8,347
2,549 10,896 32,645
Costs applicable to
sales $ 33,894 $ 24,161 $ 23,392 $ 418 $ 81,865 $ 27,988 $
15,768 $ 43,756 $ 125,621
Silver equivalent ounces sold
2,995,623 1,774,000 1,398,038 59,234 6,226,895 9,258,455
Gold
equivalent ounces sold
29,031 21,495 50,526
Costs
applicable to sales per ounce $ 11.31 $ 13.62 $ 16.73 $ 7.06 $
13.15 $ 964 $ 734 $ 866 $ 13.57
Inventory adjustments (0.10
) (0.08 ) (0.77 ) — (0.24 ) (12 ) 3 (6 ) (0.19 )
Adjusted costs applicable to sales per ounce $ 11.21 $ 13.54
$ 15.96 $ 7.06
$ 12.91 $ 952 $ 737
$
860 $ 13.38
Costs applicable to sales per average
spot ounce $ 10.20 $ 12.63 $ 12.23 $ 12.10
Inventory
adjustments (0.09 ) (0.07 ) (0.23 ) (0.17 )
Adjusted costs
applicable to sales per average spot ounce $ 10.11 $ 12.56
$ 12.00 $ 11.93
Costs applicable to
sales $ 125,621
Treatment and refining costs 1,288
Sustaining capital(1) 17,569
General and
administrative 7,042
Exploration 7,813
Reclamation 4,096
Project/pre-development costs 1,677
All-in sustaining costs $
165,106
Silver equivalent ounces sold 6,226,895
Kensington and
Wharf silver equivalent ounces sold 3,031,560
Consolidated silver equivalent ounces sold 9,258,455
All-in sustaining costs per silver equivalent ounce $
17.83 Inventory adjustments $ (0.19 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 17.64 Consolidated silver equivalent
ounces sold (average spot) 10,384,025
All-in
sustaining costs per average spot silver equivalent ounce
$ 15.90 Inventory adjustments $ (0.17 )
Adjusted all-in sustaining costs per average spot silver
equivalent ounce $ 15.73
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
SanBartolomé
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
SanBartolomé
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
SanBartolomé
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
SanBartolomé
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 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) $ 228,500 $
113,550 $ 92,300 $ 1,038 $ 435,388 $
136,600 $ 82,200 $ 218,800 $ 654,188
Amortization 76,500 22,550 8,300
281 107,631 29,100
13,200 42,300 149,931
Costs
applicable to sales $ 152,000 $ 91,000 $ 84,000 $ 757 $ 327,757
$ 107,500 $ 69,000 $ 176,500 $ 504,257
Silver equivalent ounces
sold 14,900,000 7,800,000 5,200,000 105,000 28,005,000
41,505,000
Gold equivalent ounces sold
130,000
95,000 225,000
Costs
applicable to sales per ounce guidance $10.00 - $10.50
$11.50 - $12.00 $15.75 - $16.25 $800 - $850
$700 - $750 Costs applicable to sales $
504,257
Treatment and refining costs 4,500
Sustaining
capital, including capital lease payments 77,000
General and
administrative 30,000
Exploration 30,000
Reclamation 15,000
Project/pre-development costs
6,000
All-in sustaining costs $ 666,757
Silver equivalent
ounces sold 28,005,000
Kensington and Wharf silver
equivalent ounces sold 13,500,000
Consolidated silver
equivalent ounces sold 41,505,000
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) $ 228,500 $
113,550 $ 92,300 $ 1,038 $ 435,388 $
136,600 $ 82,200 $ 218,800 $ 654,188
Amortization 76,500 22,550 8,300
281 107,631 29,100
13,200 42,300 149,931
Costs
applicable to sales $ 152,000 $ 91,000 $ 84,000 $ 757 $ 327,757
$ 107,500 $ 69,000 $ 176,500 $ 504,257
Silver equivalent ounces
sold 16,100,000 8,300,000 5,200,000 105,000 29,705,000
45,455,000
Gold equivalent ounces sold
130,000
95,000 225,000
Costs
applicable to sales per ounce guidance $9.00 - $9.50
$10.50 - $11.00 $15.75-$16.25 $800-$850
$700-$750 Costs applicable to sales $
504,257
Treatment and refining costs 4,500
Sustaining
capital, including capital lease payments 77,000
General and
administrative 30,000
Exploration 30,000
Reclamation 15,000
Project/pre-development costs
6,000
All-in sustaining costs $ 666,757
Silver equivalent
ounces sold 29,705,000
Kensington and Wharf silver
equivalent ounces sold 15,750,000
Consolidated silver
equivalent ounces sold 45,455,000
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/20170726006440/en/
Coeur Mining, Inc.Courtney Lynn, 312-489-5910Vice President,
Investor Relations and Treasurerwww.coeur.com
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Apr 2024 to May 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From May 2023 to May 2024