NEWS RELEASE
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Coeur Reports
Second Quarter 2015 Results
Raising 2015
Production Guidance and Lowering 2015 Cost Guidance
Adjusted Costs
Applicable to Sales Declined 8% to $12.56 per Silver Equivalent
Ounce
Chicago,
Illinois - August 4, 2015 - Coeur Mining, Inc. (the "Company"
or "Coeur") (NYSE: CDE) reported second quarter 2015 revenue of
$166.3 million, adjusted EBITDA1 of $34.7
million, adjusted net loss1 of $0.11 per
share, and cash flow from operating activities of $36.9 million.
Adjusted costs applicable to sales per silver equivalent
ounce1 of $12.56
declined 8% from the first quarter. Adjusted all-in sustaining
costs declined 6% from the first quarter to $16.60 per silver
equivalent ounce1, the lowest
level in over two years of reporting this metric.
"In the second quarter we achieved
the strongest financial performance in two years despite the
weakest realized silver and gold prices over this time frame," said
Mitchell J. Krebs, Coeur's President and Chief Executive Officer.
"With nearly every mine outperforming initial cost and production
targets, we are raising our production guidance and lowering our
cost guidance for 2015. The notable exception is San Bartolomé,
where July production was impacted by political disruptions in
Bolivia, but is now fully operational.
"I am proud of the progress our
employees are making to lower our costs and add high-quality silver
and gold ounces to our production profile. However, we have our
sights set on higher goals in the coming quarters. In June, we
provided a three-year outlook reflecting further cost reductions,
quality production growth, and rising EBITDA and free cash flow
starting next year. With more than $200 million in liquidity at
quarter end and long-dated debt maturities on our balance sheet, we
are well-positioned to continue executing our strategy even at
current metal prices."
Second Quarter 2015
Highlights
-
Silver production was 4.3 million ounces and
gold production was 80,855 ounces, or 9.1 million silver
equivalent1 ounces, a 13%
increase as previously announced on July 9, 2015
-
Adjusted costs applicable to sales were $12.56
and adjusted all-in sustaining costs were $16.60 per silver
equivalent ounce1, the lowest
level since Coeur began reporting this metric in 2013
-
Adjusted costs applicable to sales per gold
ounce1 at Kensington
of $745 fell 7% from the first quarter
-
Adjusted costs applicable to sales per silver
equivalent ounce1 at Palmarejo
declined 9% from the first quarter to $13.21
-
Adjusted costs applicable to sales per silver
equivalent ounce1 at Rochester
were $12.01, down 7% from the first quarter
-
Adjusted costs applicable to sales per silver
ounce1 at San
Bartolomé dropped 8% from the first quarter to $13.26
-
Completed the acquisition of Paramount Gold and
Silver Corp. and announced an 89% increase in silver reserves and a
76% increase in gold reserves at Palmarejo at a 31% higher average
silver grade
-
On June 24, Coeur announced a 39% increase in
Wharf's gold reserves. The addition of Wharf represents a 35%
increase in Coeur's total gold reserves
-
On June 25, Coeur closed a new $100 million,
five-year, senior secured term loan and repaid a pre-existing $50
million bridge loan due in the first quarter of 2016
-
Cash, cash equivalents, and short-term
investments were $205.9 million at June 30
Full Year 2015
Outlook
Coeur is raising its 2015 total production guidance by
approximately 2% to 33.1 - 35.9 million silver-equivalent ounces,
consisting of 14.7 - 15.8 million silver ounces and 306,000 -
335,000 gold ounces. Coeur is also lowering its guidance for all-in
sustaining costs per silver equivalent ounce1 by
approximately 3% to $17.00 - $18.00. The revised guidance is mainly
due to stronger than planned production at lower than expected
costs at Palmarejo and Kensington, partially offset by lower than
expected production at San Bartolomé, which experienced a temporary
cessation of mining activity in July due to political disruptions
in Bolivia.
2015 Production
Outlook
(silver and silver
equivalent ounces in thousands) |
Silver |
Gold |
Total Silver Equivalent |
Palmarejo |
4,200 - 4,700 |
62,000 - 67,000 |
7,920 - 8,720 |
San Bartolomé |
5,300 - 5,500 |
- |
5,300 - 5,500 |
Rochester |
4,700 - 5,000 |
55,000 - 65,000 |
8,000 - 8,900 |
Endeavor |
500 - 600 |
- |
500 - 600 |
Kensington |
- |
115,000 - 125,000 |
6,900 - 7,500 |
Wharf |
- |
74,000 - 78,000 |
4,440 - 4,680 |
Total |
14,700 - 15,800 |
306,000 - 335,000 |
33,060 - 35,900 |
2015 Cost Outlook
(dollars in millions,
except per ounce amounts) |
New 2015 Guidance |
Old 2015 Guidance |
Costs Applicable to Sales per
Silver Equivalent Ounce1 -
Palmarejo |
$15.00 - $16.00 |
$16.25 - $17.75 |
Costs Applicable to Sales per Silver
Ounce1 - San
Bartolomé |
$13.50 - $15.00 |
$13.50 - $15.00 |
Costs Applicable to Sales per
Silver Equivalent Ounce1 -
Rochester |
$12.50 - $14.00 |
$12.50 - $14.00 |
Costs Applicable to Sales per Gold Ounce -
Kensington |
$850 - $900 |
$900 - $975 |
Costs Applicable to Sales per Gold
Equivalent Ounce1 -
Wharf |
$750 - $825 |
$750 - $825 |
Capital Expenditures |
$95 - $105 |
$95 - $105 |
General and Administrative
Expenses |
$36 - $39 |
$36 - $39 |
Exploration Expense |
$13 - $16 |
$13 - $16 |
All-in Sustaining Costs per Silver
Equivalent Ounce1 |
$17.00 - $18.00 |
$17.50 - $18.50 |
Financial Highlights
(Unaudited)
(Amounts in millions, except per
share amounts, gold ounces produced & sold, and per-ounce
metrics) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Revenue |
$ |
166.3 |
|
$ |
153.0 |
|
$ |
140.6 |
|
$ |
170.9 |
|
$ |
164.6 |
|
Costs Applicable to Sales |
$ |
119.1 |
|
$ |
115.1 |
|
$ |
126.5 |
|
$ |
125.9 |
|
$ |
118.7 |
|
General and Administrative
Expenses |
$ |
8.5 |
|
$ |
8.8 |
|
$ |
9.0 |
|
$ |
8.5 |
|
$ |
9.4 |
|
Adjusted EBITDA1 |
$ |
34.7 |
|
$ |
23.7 |
|
$ |
7.8 |
|
$ |
30.7 |
|
$ |
32.9 |
|
Net Income (Loss) |
$ |
(16.7 |
) |
$ |
(33.3 |
) |
$ |
(1,079.1 |
) |
$ |
3.5 |
|
$ |
(43.1 |
) |
Net Income (Loss) Per Share |
$ |
(0.12 |
) |
$ |
(0.32 |
) |
$ |
(10.53 |
) |
$ |
0.03 |
|
$ |
(0.42 |
) |
Adjusted Net Income
(Loss)1 |
$ |
(14.5 |
) |
$ |
(22.7 |
) |
$ |
(37.5 |
) |
$ |
(18.5 |
) |
$ |
(21.5 |
) |
Adjusted Net Income (Loss)1 Per
Share |
$ |
(0.11 |
) |
$ |
(0.22 |
) |
$ |
(0.37 |
) |
$ |
(0.18 |
) |
$ |
(0.21 |
) |
Weighted Average Shares |
135.0 |
|
102.6 |
|
102.4 |
|
102.6 |
|
102.4 |
|
Cash Flow From Operating Activities |
$ |
36.9 |
|
$ |
(4.0 |
) |
$ |
0.7 |
|
$ |
31.3 |
|
$ |
30.5 |
|
Capital Expenditures |
$ |
23.7 |
|
$ |
17.6 |
|
$ |
20.1 |
|
$ |
16.8 |
|
$ |
15.4 |
|
Cash, Equivalents & Short-Term
Investments |
$ |
205.9 |
|
$ |
179.6 |
|
$ |
270.9 |
|
$ |
295.4 |
|
$ |
316.8 |
|
Total Debt2 |
$ |
547.7 |
|
$ |
513.5 |
|
$ |
468.5 |
|
$ |
469.5 |
|
$ |
480.1 |
|
Average Realized Price Per Ounce - Silver |
$ |
16.23 |
|
$ |
16.77 |
|
$ |
16.40 |
|
$ |
19.46 |
|
$ |
19.60 |
|
Average Realized Price Per Ounce -
Gold |
$ |
1,179 |
|
$ |
1,204 |
|
$ |
1,186 |
|
$ |
1,260 |
|
$ |
1,277 |
|
Silver Ounces Produced |
4.3 |
|
3.8 |
|
4.3 |
|
4.3 |
|
4.5 |
|
Gold Ounces Produced |
80,855 |
|
69,734 |
|
64,534 |
|
64,989 |
|
61,025 |
|
Silver Equivalent Ounces Produced1 |
9.1 |
|
8.0 |
|
8.3 |
|
8.2 |
|
8.1 |
|
Silver Ounces Sold |
4.0 |
|
4.1 |
|
4.6 |
|
4.3 |
|
4.6 |
|
Gold Ounces Sold |
84,312 |
|
68,420 |
|
52,785 |
|
69,541 |
|
57,751 |
|
Silver Equivalent Ounces
Sold1 |
9.1 |
8.2 |
|
7.9 |
8.4 |
8.1 |
Adjusted Costs Applicable to Sales per AgEq
Oz1 |
$ |
12.56 |
|
$ |
13.71 |
|
$ |
14.43 |
|
$ |
14.19 |
|
$ |
14.00 |
|
Adjusted Costs Applicable to Sales
per AuEq Oz1 |
$ |
816 |
|
$ |
797 |
|
$ |
792 |
|
$ |
889 |
|
$ |
821 |
|
Adjusted All-in Sustaining Costs per AgEq
Oz1 |
$ |
16.60 |
|
$ |
17.66 |
|
$ |
19.25 |
|
$ |
18.27 |
|
$ |
19.10 |
|
Financial
Results
Second quarter 2015 revenue
increased $13.3 million, or 9%, compared with the first quarter to
$166.3 million due to a 10% increase in silver equivalent ounces
sold, partially offset by lower metal prices. Average realized
silver and gold prices decreased 3% and 2%, respectively, compared
to the first quarter, to $16.23 per ounce for silver and $1,179 per
ounce for gold. Silver contributed 40% of metal sales and gold
contributed 60% during the second quarter.
General and administrative
expenses decreased 4% from the first quarter to $8.5 million in the
second quarter, and were down 9% compared to the second quarter of
2014. Capital expenditures of $23.7 million in the second quarter
increased $6.1 million, or 34%, compared to the first quarter due
to the inclusion of Wharf for the full quarter as well as higher
spending for underground development at Kensington, Guadalupe mine
development and additional tailings capacity at Palmarejo, and
expanded crushing capacity and increased Stage III leach pad
capacity at Rochester. For the first six months of 2015, general
and administrative expenses were $17.3 million and capital
expenditures were $41.3 million.
Second quarter adjusted
EBITDA1 was $34.7
million and adjusted net loss1 was $14.5
million, or $0.11 per share, a 46% increase in adjusted
EBITDA1 from $23.7
million and an $8.0 million improvement in adjusted net loss from
$22.7 million, or $0.22 per share, in the first quarter mainly due
to higher production and lower unit operating costs.
Coeur obtained a five-year $100
million senior secured term loan and repaid a $50 million
short-term bridge loan during the second quarter, which raised
total debt to $547.7 million at June 30, including $426.2 million
in senior unsecured notes due in 2021. Cash, cash equivalents, and
short-term investments totaled $205.9 million at the end of the
second quarter, yielding a net debt balance of $341.8 million, a 2%
increase compared to March 31.
Operations
Highlights of second quarter 2015
results for each of the Company's operating segments are provided
below.
Palmarejo,
Mexico
(Dollars in millions, except per
ounce amounts) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Underground
Operations: |
|
|
|
|
|
Tons mined |
172,730 |
149,150 |
187,730 |
169,656 |
177,359 |
Average silver grade
(oz/t) |
3.90 |
4.34 |
4.49 |
4.88 |
6.15 |
Average gold grade (oz/t) |
0.09 |
0.07 |
0.06 |
0.10 |
0.11 |
Surface
Operations: |
|
|
|
|
|
Tons mined |
257,862 |
281,481 |
320,802 |
343,001 |
320,583 |
Average silver grade
(oz/t) |
3.47 |
3.79 |
2.90 |
3.09 |
3.72 |
Average gold grade (oz/t) |
0.03 |
0.04 |
0.03 |
0.03 |
0.03 |
Processing: |
|
|
|
|
|
Total tons milled |
435,841 |
451,918 |
510,813 |
518,212 |
534,718 |
Average recovery rate -
Ag |
78.5% |
78.7% |
80.2% |
82.7% |
75.6% |
Average recovery rate - Au |
76.2% |
73.9% |
78.7% |
86.9% |
78.9% |
Silver ounces produced
(000's) |
1,247 |
1,354 |
1,444 |
1,533 |
1,761 |
Gold ounces produced |
18,127 |
15,495 |
15,237 |
22,514 |
23,706 |
Silver equivalent ounces
produced1
(000's) |
2,335 |
2,284 |
2,359 |
2,883 |
3,183 |
Silver ounces sold (000's) |
1,228 |
1,330 |
1,375 |
1,605 |
1,983 |
Gold ounces sold |
15,706 |
13,793 |
16,255 |
23,600 |
25,753 |
Silver equivalent ounces sold1
(000's) |
2,170 |
2,158 |
2,350 |
3,021 |
3,528 |
Revenues |
$38.9 |
$39.4 |
$42.2 |
$61.4 |
$72.4 |
Costs applicable to sales |
$30.1 |
$34.5 |
$48.1 |
$46.0 |
$49.6 |
Adjusted costs applicable to sales
per AgEq ounce1 |
$13.21 |
$14.56 |
$15.70 |
$14.43 |
$13.48 |
Exploration expense |
$1.8 |
$1.1 |
$1.5 |
$2.6 |
$1.6 |
Cash flow from operating
activities |
$9.7 |
$(0.2) |
$(3.2) |
$20.2 |
$27.4 |
Sustaining capital expenditures |
$2.7 |
$3.1 |
$5.5 |
$1.9 |
$5.3 |
Development capital
expenditures |
$8.0 |
$6.1 |
$5.4 |
$4.0 |
$0.3 |
Total capital expenditures |
$10.7 |
$9.2 |
$10.9 |
$5.9 |
$5.6 |
Free cash flow (before
royalties) |
$(1.0) |
$(9.4) |
$(14.1) |
$14.3 |
$21.8 |
Royalties paid |
$9.8 |
$10.4 |
$10.0 |
$11.4 |
$12.3 |
Free cash flow3 |
$(10.8) |
$(19.8) |
$(24.1) |
$2.9 |
$9.5 |
-
Adjusted costs applicable to sales per silver
equivalent ounce1 of $13.21
decreased 9% from the first quarter due to lower underground mining
costs, which also represented a higher proportion of production.
Underground mining costs of $44 per ton quarter declined more than
30% from $64 per ton in the first quarter
-
Palmarejo continues the transition to
underground mining at the Guadalupe mine and the Independencia mine
(expected beginning early 2016) while mining activities in the
historic zones gradually decline. Open-pit mining is expected to
end during the second half of 2015
-
Development of the tunnel to Independencia is on
track and expected to reach the ore body by the end of 2015
-
Raising 2015 production guidance by
approximately 9% to 4.2 - 4.7 million ounces of silver and 62,000 -
67,000 ounces of gold from 3.9 - 4.3 million ounces of silver and
55,000 - 65,000 ounces of gold, while lowering costs applicable to
sales per silver equivalent ounce1 guidance by
approximately 9% to $15.00 - $16.00 from $16.25 - $17.75
Rochester,
Nevada
(Dollars in millions,
except per ounce amounts) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Ore tons placed |
3,859,965 |
4,013,879 |
3,876,944 |
3,892,421 |
3,329,582 |
Average silver grade (oz/t) |
0.61 |
0.74 |
0.60 |
0.51 |
0.58 |
Average gold grade (oz/t) |
0.003 |
0.004 |
0.004 |
0.005 |
0.003 |
Silver ounces produced (000's) |
1,294 |
1,144 |
1,170 |
1,156 |
1,112 |
Gold ounces produced |
16,411 |
13,721 |
15,764 |
11,702 |
9,230 |
Silver equivalent ounces
produced1
(000's) |
2,279 |
1,967 |
2,116 |
1,858 |
1,666 |
Silver ounces sold
(000's) |
1,120 |
1,351 |
1,154 |
1,067 |
1,006 |
Gold ounces sold |
15,085 |
17,754 |
14,131 |
8,932 |
8,970 |
Silver equivalent ounces
sold1
(000's) |
2,025 |
2,416 |
2,002 |
1,603 |
1,544 |
Revenues |
$36.3 |
$44.0 |
$36.0 |
$32.4 |
$31.2 |
Costs applicable to sales |
$24.4 |
$31.4 |
$28.7 |
$23.7 |
$24.4 |
Adjusted costs applicable to sales per silver
equivalent ounce1 |
$12.01 |
$12.95 |
$13.82 |
$14.78 |
$15.73 |
Exploration expense |
$0.5 |
$0.7 |
$0.6 |
$0.1 |
$0.7 |
Cash flow from operating activities |
$8.8 |
$16.4 |
$10.2 |
$8.2 |
$4.3 |
Sustaining capital
expenditures |
$2.4 |
$0.8 |
$2.7 |
$4.2 |
$4.0 |
Development capital expenditures |
$3.5 |
$2.5 |
$- |
$- |
$- |
Total capital
expenditures |
$5.9 |
$3.3 |
$2.7 |
$4.2 |
$4.0 |
Free cash flow3 |
$2.9 |
$13.1 |
$7.5 |
$4.0 |
$0.3 |
-
Second quarter adjusted costs applicable to
sales per silver equivalent ounce1 were $12.01,
down 7% from the first quarter due to lower crushing and leaching
costs. Mining costs per ton of $1.39 declined 9% from $1.53 per ton
in the first quarter
-
Operating cash flow of $8.8 million declined
from the first quarter due to an increase in metal inventory and a
decrease in accounts payable
-
Expected completion of the crushing capacity
expansion and increased Stage III leach pad capacity during the
third quarter
-
Approval for POA 10 (expansion of Stage IV leach
pad and construction of new Stage V leach pad) is expected by early
2016. Minimal preparatory work for the Stage V leach pad expected
in 2016 with major construction activity planned for 2017
-
In 2015, Rochester is expected to produce 4.7 -
5.0 million ounces of silver and 55,000 - 65,000 ounces of gold at
costs applicable to sales per silver equivalent ounce1
of $12.50 - $14.00
Kensington, Alaska
(Dollars in millions,
except per ounce amounts) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Tons milled |
170,649 |
164,951 |
167,417 |
145,097 |
163,749 |
Average gold grade (oz/t) |
0.18 |
0.24 |
0.21 |
0.23 |
0.18 |
Average recovery rate |
94.9% |
94.8% |
94.2% |
93.0% |
94.5% |
Gold ounces produced |
29,845 |
33,909 |
33,533 |
30,773 |
28,089 |
Gold ounces sold |
36,607 |
36,873 |
22,399 |
37,009 |
23,028 |
Revenues |
$42.5 |
$44.0 |
$26.0 |
$45.9 |
$29.0 |
Costs applicable to sales |
$27.5 |
$29.4 |
$18.9 |
$34.7 |
$23.2 |
Adjusted costs applicable to sales per
gold ounce1 |
$745 |
$797 |
$792 |
$889 |
$821 |
Exploration expense |
$0.4 |
$1.7 |
$2.8 |
$2.6 |
$1.6 |
Cash flow from operating activities |
$12.0 |
$12.3 |
$(3.7) |
$17.0 |
$(0.6) |
Sustaining capital
expenditures |
$4.2 |
$4.1 |
$3.3 |
$3.6 |
$4.0 |
Development capital expenditures |
$0.5 |
$- |
$0.6 |
$- |
$- |
Total capital
expenditures |
$4.7 |
$4.1 |
$3.9 |
$3.6 |
$4.0 |
Free cash flow3 |
$7.3 |
$8.2 |
$(7.6) |
$13.4 |
$(4.6) |
-
Strong mill throughput of approximately 1,875
tons per day and lower diesel and mining costs ($51 per ton, down
from $55 per ton in the first quarter) caused a 7% decline in
adjusted costs applicable to sales per gold ounce1 to $745
in the second quarter. Mining costs per ton declined 7% to $51 from
$55 in the first quarter
-
Development of the decline into the high-grade
Jualin deposit is now underway. Underground drilling at Jualin is
expected to begin in early 2016
-
Raising 2015 production guidance and lowering
2015 cost guidance to 115,000 - 125,000 ounces of gold at costs
applicable to sales per gold ounce of $850 - $900, improved
approximately 7% from prior guidance of 110,000 - 115,000 ounces of
gold at costs applicable to sales per gold ounce of $900 -
$975
San Bartolomé,
Bolivia
(Dollars in millions,
except per ounce amounts) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Tons milled |
457,232 |
406,951 |
454,135 |
471,938 |
437,975 |
Average silver grade (oz/t) |
3.73 |
3.65 |
3.77 |
3.70 |
3.87 |
Average recovery rate |
87.6% |
81.6% |
88.0% |
86.5% |
87.5% |
Silver ounces produced (000's) |
1,495 |
1,213 |
1,507 |
1,509 |
1,481 |
Silver ounces sold
(000's) |
1,439 |
1,290 |
1,987 |
1,438 |
1,494 |
Revenues |
$23.4 |
$21.5 |
$32.6 |
$28.4 |
$29.1 |
Costs applicable to sales |
$19.2 |
$19.1 |
$29.6 |
$20.4 |
$20.7 |
Adjusted costs applicable to sales per silver
ounce1 |
$13.26 |
$14.47 |
$14.38 |
$13.67 |
$13.85 |
Exploration expense |
$- |
$- |
$- |
$- |
$0.1 |
Cash flow from operating activities |
$5.4 |
$5.0 |
$2.3 |
$12.3 |
$18.9 |
Sustaining capital
expenditures |
$1.0 |
$0.9 |
$2.0 |
$2.8 |
$1.7 |
Development capital expenditures |
$- |
$- |
$- |
$- |
$- |
Total capital
expenditures |
$1.0 |
$0.9 |
$2.0 |
$2.8 |
$1.7 |
Free cash flow3 |
$4.4 |
$4.1 |
$0.3 |
$9.5 |
$17.2 |
-
Higher throughput, grade and recovery resulted
in higher production and an 8% decline in adjusted costs applicable
to sales per silver ounce to $13.26
-
On July 10, political protests in Potosi,
Bolivia prompted a temporary cessation of mining activity at San
Bartolomé. Processing activities were restarted on July 31 and
mining activities have fully resumed. As a result, 2015 production
guidance has been lowered to 5.3 - 5.5 million ounces of silver,
down from 5.8 - 6.1 million previously while maintaining costs
applicable to sales guidance of $13.50 - $15.00 per silver
equivalent ounce1
Wharf, South
Dakota
(Dollars in millions,
except per ounce amounts) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Ore tons placed |
887,409 |
415,996 |
- |
- |
- |
Average gold grade (oz/t) |
0.025 |
0.020 |
- |
- |
- |
Gold equivalent ounces
produced1 |
16,794 |
6,609 |
- |
- |
- |
Gold equivalent ounces sold1 |
17,131 |
- |
- |
- |
- |
Revenues |
$20.4 |
$- |
- |
- |
- |
Costs applicable to sales |
$16.6 |
$- |
- |
- |
- |
Adjusted costs applicable to sales
per gold equivalent ounce1 |
$970 |
$- |
- |
- |
- |
Exploration expense |
$- |
$- |
- |
- |
- |
Cash flow from operating
activities |
$8.2 |
$(7.2) |
- |
- |
- |
Sustaining capital expenditures |
$1.2 |
$0.1 |
- |
- |
- |
Development capital
expenditures |
$- |
$- |
- |
- |
- |
Total capital expenditures |
$1.2 |
$0.1 |
- |
- |
- |
Free cash flow3 |
$7.0 |
$(7.3) |
- |
- |
- |
-
The second quarter was the first full quarter of
operating results since the acquisition closed on February 20,
2015
-
In June, Coeur announced a 39% increase in
Wharf's gold reserves. A technical report was filed today,
reflecting an after-tax NPV10% of $138
million based on the current mine plan, average annual gold
production of almost 90,000 ounces, and average annual operating
cash flow of more than $30 million
-
Significantly higher production is expected in
the second half of 2015 at lower unit costs mainly due to higher
mining rates. For the full year, Wharf is expected to produce
74,000 - 78,000 ounces of gold at costs applicable to sales per
gold equivalent ounce1 of $750 -
$825. Capital expenditures are expected to be approximately $3.0
million in 2015
Coeur
Capital
(Dollars in millions,
except per ounce amounts) |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
Tons milled |
191,175 |
185,299 |
214,180 |
199,757 |
185,538 |
Average silver grade (oz/t) |
2.35 |
1.69 |
1.99 |
1.44 |
1.41 |
Average recovery rate |
45.4% |
42.4% |
44.9% |
49.1% |
42.4% |
Silver ounces produced (000's) |
204 |
133 |
191 |
141 |
111 |
Silver ounces sold
(000's) |
209 |
118 |
192 |
141 |
106 |
Metal sales |
$3.1 |
$1.9 |
$2.7 |
$2.4 |
$2.0 |
Royalty revenue |
$1.8 |
$2.0 |
$0.7 |
$0.6 |
$0.9 |
Costs applicable to sales (Endeavor
silver stream) |
$1.4 |
$0.6 |
$1.1 |
$1.1 |
$0.8 |
Costs applicable to sales per
silver equivalent ounce1 |
$6.46 |
$5.37 |
$5.69 |
$7.71 |
$7.94 |
Cash flow from operating activities |
$2.1 |
$2.2 |
$1.5 |
$2.4 |
$0.8 |
Free cash flow3 |
$2.1 |
$2.2 |
$1.5 |
$2.4 |
$0.8 |
-
There are five cash-flowing royalties and
streams, four non-cash-flowing royalties, and several investments
in junior mining companies held in Coeur Capital or its
affiliates
-
Coeur Capital's largest source of cash flow is
the silver stream on the Endeavor mine in New South Wales,
Australia in which the Company owns 100% of the silver up to a
total of 20.0 million payable ounces. At June 30, 2015, the Company
has received 5.8 million ounces, or 29.0% of the total
Exploration
Costs associated with exploration
activities for the second quarter of 2015 were $3.6 million
(expensed) for discovery of new silver and gold mineralization and
$2.2 million (capitalized) for definition and expansion of
mineralized material. These amounts compare to exploration costs of
$4.3 million expensed and $4.0 million capitalized in the first
quarter. Coeur's exploration program used 11 drill rigs during the
second quarter: 4 drills at Palmarejo, 3 at Kensington, 3 at
Rochester, and 1 at Wharf. This work resulted in completion of over
120,131 feet (36,616 meters) of combined core and reverse
circulation drilling.
Exploration expenses are expected
to total $13 - $16 million in 2015, with additional capital
allocated to resource conversion. Coeur will continue to use a
success-based approach to funding exploration activities, with a
near-term focus on higher grade targets at Palmarejo at and near
the Guadalupe operation, drilling near-surface oxide targets at La
Preciosa, drilling new targets near Wharf, mapping and sampling
around Rochester and Kensington, and the selective acquisition and
maintenance of early-stage projects.
Conference Call
Information
Coeur will conduct a conference
call and webcast at www.coeur.com to discuss the Company's second
quarter results on August 5, 2015 at 11:00 a.m. Eastern time.
Dial-In Numbers: (855)
560-2581 (US)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference
ID:
Coeur Mining, Inc.
A replay of the call will be available on Coeur's
website through August 19, 2015.
Replay Numbers: (877)
344-7529 (US)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference
ID:
100 68 701
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a
significant gold producer with five precious metals mines in the
Americas employing approximately 2,100 people. Coeur produces from
its wholly owned operations: the Palmarejo silver-gold mine in
Mexico, the San Bartolomé silver mine in Bolivia, the Rochester
silver-gold mine in Nevada, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. The Company also has a
non-operating interest in the Endeavor mine in Australia in
addition to royalties on the Cerro Bayo mine in Chile, the El Gallo
complex in Mexico, the Zaruma mine in Ecuador, and the Correnso
mine in New Zealand. In addition, the Company has two silver-gold
exploration projects - the La Preciosa project in Mexico and the
Joaquin project in Argentina. The Company also conducts ongoing
exploration activities in Alaska, Argentina, Bolivia, Mexico, and
Nevada. The Company owns strategic investment positions in several
silver and gold development companies with projects in North and
South America.
Cautionary
Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated production, costs,
EBITDA, cash flow, capital expenditures, expenses, mining rates,
operations at Palmarejo, approval for POA 10, planned capital and
expansion projects at Rochester, anticipated returns at Wharf,
development activity at Kensington, and exploration efforts. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur's actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the risk that anticipated benefits of recent
acquisitions are not realized, the risk that anticipated
production, EBITDA, cash flow, and cost levels are not attained,
the risks and hazards inherent in the mining business (including
risks inherent in developing large-scale mining projects,
environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold and silver and a sustained lower price environment, the
uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting
and regulatory delays, ground conditions, grade variability, any
future labor disputes or work stoppages (including those involving
third parties), the uncertainties inherent in the estimation of
gold and silver reserves and resources, changes that could result
from Coeur's future acquisition of new mining properties or
businesses, the absence of control over and reliance on third
parties to operate mining operations in which Coeur or its
subsidiaries hold royalty or streaming interests and risks related
to these mining operations including results of mining and
exploration activities, environmental, economic and political risks
of the jurisdiction in which the mining operations are located, the
loss of access to any third-party smelter to which Coeur markets
silver and gold, the effects of environmental and other
governmental regulations, the risks inherent in the ownership or
operation of or investment in mining properties or businesses in
foreign countries, Coeur's ability to raise additional financing
necessary to conduct its business, make payments or refinance its
debt, as well as other uncertainties and risk factors set out in
filings made from time to time with the United States Securities
and Exchange Commission, and the Canadian securities regulators,
including, without limitation, Coeur's most recent reports on Form
10-K and Form 10-Q. Actual results, developments and timetables
could vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements.
Coeur disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of Coeur, its financial or operating
results or its securities.
W. David Tyler, Coeur's Vice
President, Technical Services and a qualified person under Canadian
National Instrument 43-101, supervised the preparation of the
scientific and technical information concerning Coeur's mineral
projects in this news release. For a description of the key
assumptions, parameters and methods used to estimate mineral
reserves and resources, as well as data verification procedures and
a general discussion of the extent to which the estimates may be
affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant factors,
Canadian investors should refer to the Technical Reports for each
of Coeur's properties as filed on SEDAR at www.sedar.com.
Non-U.S. GAAP
Measures
We supplement the reporting of our
financial information determined under United States generally
accepted accounting principles (U.S. GAAP) with certain non-U.S.
GAAP financial measures, including adjusted EBITDA, adjusted net
income (loss), costs applicable to sales per silver equivalent
ounce (or per gold equivalent ounce), adjusted costs applicable to
sales per silver equivalent ounce, all-in sustaining costs, and
adjusted all-in sustaining costs. We believe that these adjusted
measures provide meaningful information to assist management,
investors and analysts in understanding our financial results and
assessing our prospects for future performance. We believe these
adjusted financial measures are important indicators of our
recurring operations because they exclude items that may not be
indicative of, or are unrelated to our core operating results, and
provide a better baseline for analyzing trends in our underlying
businesses. We believe adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), adjusted costs applicable to sales per silver
equivalent ounce, all-in sustaining costs, and adjusted all-in
sustaining costs are important measures in assessing the Company's
overall financial performance.
Notes
1. Adjusted EBITDA, adjusted net income (loss),
all-in sustaining costs, adjusted all-in sustaining costs, costs
applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), and adjusted costs applicable to sales per
silver equivalent ounce are non-GAAP measures. Please see tables in
the Appendix for the reconciliation to U.S. GAAP. For purposes of
silver and gold equivalence, 60:1 silver to gold ratio.
2. Includes capital leases. Net of debt discount.
3. Free cash flow is defined as cash flow from operating activities
less capital expenditures and royalty payments.
For Additional
Information:
Bridget Freas, Director, Investor
Relations
(312) 489-5819
Donna Mirandola, Director, Corporate
Communications
(312) 489-5842
www.coeur.com
Coeur Mining, Inc.
and Subsidiaries
Condensed Consolidated Statements of Comprehensive
Income (Loss)
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
In thousands,
except share data |
Revenue |
$ |
166,263 |
|
|
$ |
164,562 |
|
|
$ |
319,219 |
|
|
$ |
324,195 |
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
Costs applicable to sales |
119,097 |
|
|
118,687 |
|
|
234,160 |
|
|
225,583 |
|
Amortization |
38,974 |
|
|
41,422 |
|
|
72,064 |
|
|
81,849 |
|
General and administrative |
8,451 |
|
|
9,398 |
|
|
17,286 |
|
|
23,294 |
|
Exploration |
3,579 |
|
|
5,153 |
|
|
7,845 |
|
|
9,370 |
|
Pre-development, reclamation, and other |
2,267 |
|
|
8,760 |
|
|
9,030 |
|
|
15,775 |
|
Total
costs and expenses |
172,368 |
|
|
183,420 |
|
|
340,385 |
|
|
355,871 |
|
OTHER INCOME (EXPENSE), NET |
|
|
|
|
|
|
|
Fair
value adjustments, net |
2,754 |
|
|
(8,282 |
) |
|
(2,130 |
) |
|
(19,717 |
) |
Impairment of equity securities |
(31 |
) |
|
(934 |
) |
|
(1,545 |
) |
|
(3,522 |
) |
Interest
income and other, net |
(2,821 |
) |
|
(116 |
) |
|
(3,817 |
) |
|
(2,100 |
) |
Interest expense, net of capitalized interest |
(10,734 |
) |
|
(12,310 |
) |
|
(21,499 |
) |
|
(25,365 |
) |
Total
other income (expense), net |
(10,832 |
) |
|
(21,642 |
) |
|
(28,991 |
) |
|
(50,704 |
) |
Income (loss) before income and mining taxes |
(16,937 |
) |
|
(40,500 |
) |
|
(50,157 |
) |
|
(82,380 |
) |
Income
and mining tax (expense) benefit |
260 |
|
|
(2,621 |
) |
|
192 |
|
|
2,068 |
|
NET
INCOME (LOSS) |
$ |
(16,677 |
) |
|
$ |
(43,121 |
) |
|
$ |
(49,965 |
) |
|
$ |
(80,312 |
) |
OTHER
COMPREHENSIVE INCOME (LOSS), net of tax: |
|
|
|
|
|
|
|
Unrealized gain (loss) on equity securities, net of
tax of $7 for the three months ended June 30, 2015 and $487 and
$253 for the three and six months ended June 30, 2014,
respectively |
(1,312 |
) |
|
(773 |
) |
|
(2,813 |
) |
|
(401 |
) |
Reclassification adjustments for impairment of equity securities,
net of tax of $(362) and $(1,363) for the three and six months
ended June 30, 2014, respectively |
31 |
|
|
572 |
|
|
1,545 |
|
|
2,159 |
|
Reclassification adjustments for realized loss on
sale of equity securities, net of tax of $(10) for the three and
six months ended June 30, 2014, respectively |
904 |
|
|
17 |
|
|
904 |
|
|
17 |
|
Other
comprehensive income (loss) |
(377 |
) |
|
(184 |
) |
|
(364 |
) |
|
1,775 |
|
COMPREHENSIVE INCOME (LOSS) |
$ |
(17,054 |
) |
|
$ |
(43,305 |
) |
|
$ |
(50,329 |
) |
|
$ |
(78,537 |
) |
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER SHARE |
|
|
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.78 |
) |
|
|
|
|
|
|
|
|
Diluted |
$ |
(0.12 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.78 |
) |
Coeur Mining, Inc.
and Subsidiaries
Condensed Consolidated Statements of Cash
Flows
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
In
thousands |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net
income (loss) |
$ |
(16,677 |
) |
|
$ |
(43,121 |
) |
|
$ |
(49,965 |
) |
|
(80,312 |
) |
Adjustments: |
|
|
|
|
|
|
|
Amortization |
38,974 |
|
|
41,422 |
|
|
72,064 |
|
|
81,849 |
|
Accretion |
3,526 |
|
|
4,502 |
|
|
6,676 |
|
|
9,093 |
|
Deferred
income taxes |
(5,053 |
) |
|
(3,844 |
) |
|
(7,237 |
) |
|
(15,705 |
) |
Loss on termination of revolving credit facility |
- |
|
|
- |
|
|
- |
|
|
3,035 |
|
Fair
value adjustments, net |
(2,754 |
) |
|
8,282 |
|
|
2,130 |
|
|
19,717 |
|
Stock-based compensation |
2,604 |
|
|
2,385 |
|
|
4,754 |
|
|
4,950 |
|
Impairment of equity securities |
31 |
|
|
934 |
|
|
1,545 |
|
|
3,522 |
|
Foreign exchange and other |
4,224 |
|
|
(54 |
) |
|
5,303 |
|
|
(869 |
) |
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
Receivables |
(2,342 |
) |
|
4,921 |
|
|
214 |
|
|
10,544 |
|
Prepaid
expenses and other current assets |
160 |
|
|
3,551 |
|
|
(1,167 |
) |
|
(4,558 |
) |
Inventory and ore on leach pads |
4,649 |
|
|
(1,606 |
) |
|
5,333 |
|
|
(15,519 |
) |
Accounts
payable and accrued liabilities |
9,521 |
|
|
13,118 |
|
|
(6,759 |
) |
|
5,117 |
|
CASH PROVIDED BY OPERATING ACTIVITIES |
36,863 |
|
|
30,490 |
|
|
32,891 |
|
|
20,864 |
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Capital expenditures |
(23,677 |
) |
|
(15,356 |
) |
|
(41,297 |
) |
|
(27,292 |
) |
Acquisitions, net of cash acquired |
(9,152 |
) |
|
(2,250 |
) |
|
(111,170 |
) |
|
(2,250 |
) |
Other |
(103 |
) |
|
12 |
|
|
(1,676 |
) |
|
(13 |
) |
Purchase
of short-term investments and equity securities |
(1,597 |
) |
|
(2,139 |
) |
|
(1,873 |
) |
|
(48,360 |
) |
Sales and maturities of short-term investments |
399 |
|
|
800 |
|
|
469 |
|
|
890 |
|
CASH USED
IN INVESTING ACTIVITIES |
(34,130 |
) |
|
(18,933 |
) |
|
(155,547 |
) |
|
(77,025 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Issuance
of notes and bank borrowings |
100,000 |
|
|
- |
|
|
153,500 |
|
|
153,000 |
|
Payments on debt, capital leases, and associated
costs |
(66,626 |
) |
|
(2,851 |
) |
|
(75,220 |
) |
|
(6,962 |
) |
Gold
production royalty payments |
(9,754 |
) |
|
(12,345 |
) |
|
(20,122 |
) |
|
(27,028 |
) |
Other |
(72 |
) |
|
(160 |
) |
|
(495 |
) |
|
(406 |
) |
CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES |
23,548 |
|
|
(15,356 |
) |
|
57,663 |
|
|
118,604 |
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
26,281 |
|
|
(3,799 |
) |
|
(64,993 |
) |
|
62,443 |
|
Cash and
cash equivalents at beginning of period |
179,587 |
|
|
272,932 |
|
|
270,861 |
|
|
206,690 |
|
Cash and cash equivalents at end of period |
$ |
205,868 |
|
|
$ |
269,133 |
|
|
$ |
205,868 |
|
|
$ |
269,133 |
|
Coeur Mining, Inc.
and Subsidiaries
Condensed Consolidated Balance Sheets
|
|
June 30, 2015
(Unaudited) |
|
December 31,
2014 |
ASSETS |
|
In thousands, except share data |
CURRENT ASSETS |
|
|
|
|
Cash and
cash equivalents |
|
$ |
205,868 |
|
|
$ |
270,861 |
|
Receivables |
|
112,159 |
|
|
116,921 |
|
Inventory |
|
109,207 |
|
|
114,931 |
|
Ore on leach pads |
|
67,458 |
|
|
48,204 |
|
Deferred
tax assets |
|
7,262 |
|
|
7,364 |
|
Prepaid expenses and other |
|
17,442 |
|
|
15,523 |
|
|
|
519,396 |
|
|
573,804 |
|
NON-CURRENT ASSETS |
|
|
|
|
Property,
plant and equipment, net |
|
254,574 |
|
|
227,911 |
|
Mining properties, net |
|
864,884 |
|
|
501,192 |
|
Ore on
leach pads |
|
32,663 |
|
|
37,889 |
|
Restricted assets |
|
8,377 |
|
|
7,037 |
|
Equity
securities |
|
4,216 |
|
|
5,982 |
|
Receivables |
|
26,738 |
|
|
21,686 |
|
Deferred
tax assets |
|
64,120 |
|
|
60,151 |
|
Other |
|
11,681 |
|
|
9,915 |
|
TOTAL
ASSETS |
|
$ |
1,786,649 |
|
|
$ |
1,445,567 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
Accounts payable |
|
$ |
42,522 |
|
|
$ |
49,052 |
|
Accrued
liabilities and other |
|
47,590 |
|
|
51,513 |
|
Debt |
|
9,121 |
|
|
17,498 |
|
Royalty
obligations |
|
41,999 |
|
|
43,678 |
|
Reclamation |
|
3,786 |
|
|
3,871 |
|
Deferred
tax liabilities |
|
8,078 |
|
|
8,078 |
|
|
|
153,096 |
|
|
173,690 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
Debt |
|
538,589 |
|
|
451,048 |
|
Royalty
obligations |
|
12,675 |
|
|
27,651 |
|
Reclamation |
|
87,538 |
|
|
66,943 |
|
Deferred
tax liabilities |
|
223,868 |
|
|
111,006 |
|
Other long-term liabilities |
|
43,233 |
|
|
29,911 |
|
|
|
905,903 |
|
|
686,559 |
|
STOCKHOLDERS' EQUITY |
|
|
|
|
Common
stock, par value $0.01 per share; authorized 300,000,000 shares,
issued and outstanding 137,122,762 at June 30, 2015 and authorized
150,000,000 shares, issued and outstanding 103,384,408 at December
31, 2014 |
|
1,371 |
|
|
1,034 |
|
Additional paid-in capital |
|
2,982,019 |
|
|
2,789,695 |
|
Accumulated other comprehensive income (loss) |
|
(3,172 |
) |
|
(2,808 |
) |
Accumulated deficit |
|
(2,252,568 |
) |
|
(2,202,603 |
) |
|
|
727,650 |
|
|
585,318 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
1,786,649 |
|
|
$ |
1,445,567 |
|
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per
share amounts) |
2Q 2015 |
|
1Q 2015 |
|
4Q 2014 |
|
3Q 2014 |
|
2Q 2014 |
Net
income (loss) |
$ |
(16,677 |
) |
|
$ |
(33,287 |
) |
|
$ |
(1,079,038 |
) |
|
$ |
3,466 |
|
|
$ |
(43,121 |
) |
Interest expense, net of capitalized interest |
10,734 |
|
|
10,765 |
|
|
10,566 |
|
|
11,615 |
|
|
12,311 |
|
Interest income and other, net |
2,821 |
|
|
997 |
|
|
(3,688 |
) |
|
213 |
|
|
4,083 |
|
Income tax provision (benefit) |
(260 |
) |
|
68 |
|
|
(440,594 |
) |
|
(16,582 |
) |
|
2,621 |
|
Amortization |
38,974 |
|
|
33,090 |
|
|
38,570 |
|
|
41,985 |
|
|
41,422 |
|
EBITDA |
35,592 |
|
|
11,633 |
|
|
(1,474,184 |
) |
|
40,697 |
|
|
17,316 |
|
Fair
value adjustments, net |
(2,754 |
) |
|
4,884 |
|
|
(7,229 |
) |
|
(16,106 |
) |
|
8,281 |
|
Impairment of equity securities |
31 |
|
|
1,514 |
|
|
1,979 |
|
|
1,092 |
|
|
934 |
|
Inventory adjustments |
1,805 |
|
|
3,684 |
|
|
14,482 |
|
|
4,993 |
|
|
6,353 |
|
Transaction-related costs |
38 |
|
|
1,975 |
|
|
- |
|
|
- |
|
|
- |
|
Write-downs |
- |
|
|
- |
|
|
1,472,721 |
|
|
- |
|
|
- |
|
Adjusted EBITDA |
$ |
34,712 |
|
|
$ |
23,690 |
|
|
$ |
7,769 |
|
|
$ |
30,676 |
|
|
$ |
32,884 |
|
Adjusted Net
Income (Loss) Reconciliation
(Dollars in thousands except per
share amounts) |
2Q 2015 |
|
1Q 2015 |
|
4Q 2014 |
|
3Q 2014 |
|
2Q 2014 |
Net
income (loss) |
$ |
(16,677 |
) |
|
$ |
(33,287 |
) |
|
$ |
(1,079,038 |
) |
|
$ |
3,466 |
|
|
$ |
(43,121 |
) |
Fair value adjustments, net |
(2,618 |
) |
|
4,339 |
|
|
(5,622 |
) |
|
(13,026 |
) |
|
6,498 |
|
Stock-based compensation |
2,529 |
|
|
2,410 |
|
|
1,807 |
|
|
2,417 |
|
|
2,299 |
|
Impairment of equity securities |
31 |
|
|
1,514 |
|
|
1,979 |
|
|
1,092 |
|
|
934 |
|
Accretion of royalty obligation |
1,147 |
|
|
1,315 |
|
|
1,992 |
|
|
1,374 |
|
|
1,789 |
|
Write-downs |
- |
|
|
- |
|
|
1,021,756 |
|
|
- |
|
|
- |
|
(Gain)
loss on debt extinguishments |
524 |
|
|
(253 |
) |
|
(426 |
) |
|
- |
|
|
- |
|
Inventory adjustments |
1,805 |
|
|
3,684 |
|
|
14,482 |
|
|
4,993 |
|
|
6,353 |
|
Transaction-related costs |
38 |
|
|
1,975 |
|
|
- |
|
|
- |
|
|
- |
|
Deferred tax asset valuation allowance |
76 |
|
|
(3,464 |
) |
|
- |
|
|
- |
|
|
- |
|
Foreign exchange (gain) loss on deferred taxes |
(1,305 |
) |
|
(929 |
) |
|
5,615 |
|
|
(18,801 |
) |
|
3,711 |
|
Adjusted net income
(loss) |
$ |
(14,450 |
) |
|
$ |
(22,696 |
) |
|
$ |
(37,455 |
) |
|
$ |
(18,485 |
) |
|
$ |
(21,537 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per
share |
$ |
(0.11 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.21 |
) |
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended June 30, 2015
|
Silver |
|
Gold |
|
In thousands except per ounce amounts |
Palmarejo |
San Bartolomé |
Rochester |
Endeavor |
Total Silver |
|
Kensington |
Wharf |
Total Gold |
Total Combined |
Costs applicable to sales,
including amor-
tization (U.S. GAAP) |
$ |
39,158 |
|
$ |
24,428 |
|
$ |
37,076 |
|
$ |
3,204 |
|
$ |
103,866 |
|
|
$ |
40,136 |
|
$ |
20,123 |
|
$ |
60,259 |
|
$ |
164,125 |
|
Amor-
tization |
9,046 |
|
5,271 |
|
12,684 |
|
1,852 |
|
28,853 |
|
|
12,684 |
|
3,491 |
|
16,175 |
|
45,028 |
|
Costs applicable to sales |
$ |
30,112 |
|
$ |
19,157 |
|
$ |
24,392 |
|
$ |
1,352 |
|
$ |
75,013 |
|
|
$ |
27,452 |
|
$ |
16,632 |
|
$ |
44,084 |
|
$ |
119,097 |
|
Silver equivalent ounces sold |
2,169,960 |
|
1,439,388 |
|
2,024,856 |
|
209,130 |
|
5,843,334 |
|
|
|
|
|
9,067,614 |
|
Gold equivalent ounces
sold |
|
|
|
|
|
|
36,607 |
|
17,131 |
|
53,738 |
|
|
Costs applicable to sales per ounce |
$ |
13.88 |
|
$ |
13.31 |
|
$ |
12.05 |
|
$ |
6.46 |
|
$ |
12.84 |
|
|
$ |
750 |
|
$ |
971 |
|
$ |
820 |
|
$ |
13.13 |
|
Inventory adjustments |
(0.67 |
) |
(0.05 |
) |
(0.04 |
) |
- |
|
(0.28 |
) |
|
(5 |
) |
(1 |
) |
(4 |
) |
(0.20 |
) |
Adjusted costs applicable to sales per
ounce |
$ |
13.21 |
|
$ |
13.26 |
|
$ |
12.01 |
|
$ |
6.46 |
|
$ |
12.56 |
|
|
$ |
745 |
|
$ |
970 |
|
$ |
816 |
|
$ |
12.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
$ |
119,097 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
1,526 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
13,625 |
|
General and
administrative |
|
|
|
|
|
|
|
8,451 |
|
Exploration |
|
|
|
|
|
|
|
|
|
3,579 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
4,036 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
2,030 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
$ |
152,344 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
5,843,334 |
|
Kensington
and Wharf silver equivalent ounces sold |
|
|
|
|
|
|
|
3,224,280 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
9,067,614 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
$ |
16.80 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
$ |
(0.20 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
$ |
16.60 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended March 31, 2015
|
|
Silver |
|
Gold |
|
|
In thousands except per ounce amounts |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
41,824 |
|
|
$ |
23,818 |
|
|
$ |
38,235 |
|
|
$ |
1,892 |
|
|
$ |
105,769 |
|
|
$ |
40,973 |
|
|
$ |
146,742 |
|
Amortization |
|
7,333 |
|
|
4,691 |
|
|
6,843 |
|
|
1,259 |
|
|
20,126 |
|
|
11,554 |
|
|
31,680 |
|
Costs applicable to sales |
|
$ |
34,491 |
|
|
$ |
19,127 |
|
|
$ |
31,392 |
|
|
$ |
633 |
|
|
$ |
85,643 |
|
|
$ |
29,419 |
|
|
$ |
115,062 |
|
Silver equivalent ounces sold |
|
2,157,612 |
|
|
1,289,867 |
|
|
2,416,103 |
|
|
117,863 |
|
|
5,981,445 |
|
|
|
|
8,193,825 |
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
36,873 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
15.99 |
|
|
$ |
14.83 |
|
|
$ |
12.99 |
|
|
$ |
5.37 |
|
|
$ |
14.32 |
|
|
$ |
798 |
|
|
$ |
14.04 |
|
Inventory adjustments |
|
(1.43 |
) |
|
(0.36 |
) |
|
(0.04 |
) |
|
- |
|
|
(0.61 |
) |
|
(1 |
) |
|
(0.45 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
14.56 |
|
|
$ |
14.47 |
|
|
$ |
12.95 |
|
|
$ |
5.37 |
|
|
$ |
13.71 |
|
|
$ |
797 |
|
|
$ |
13.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
115,062 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,490 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,909 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,834 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,266 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,924 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,873 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
148,358 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,981,445 |
|
Kensington silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,212,380 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,193,825 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
18.11 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.45 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
17.66 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended December 31, 2014
|
|
Silver |
|
Gold |
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
64,397 |
|
|
$ |
34,610 |
|
|
$ |
34,611 |
|
|
$ |
2,678 |
|
|
$ |
136,296 |
|
|
$ |
27,383 |
|
|
$ |
163,679 |
|
Amortization |
|
16,235 |
|
|
4,993 |
|
|
5,955 |
|
|
1,586 |
|
|
28,769 |
|
|
8,458 |
|
|
37,227 |
|
Costs applicable to sales |
|
$ |
48,162 |
|
|
$ |
29,617 |
|
|
$ |
28,656 |
|
|
$ |
1,092 |
|
|
$ |
107,527 |
|
|
$ |
18,925 |
|
|
$ |
126,452 |
|
Silver equivalent ounces sold |
|
2,350,080 |
|
|
1,985,952 |
|
|
2,001,976 |
|
|
191,983 |
|
|
6,529,991 |
|
|
|
|
7,873,931 |
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
22,399 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
20.49 |
|
|
$ |
14.91 |
|
|
$ |
14.31 |
|
|
$ |
5.69 |
|
|
$ |
16.47 |
|
|
$ |
845 |
|
|
$ |
16.06 |
|
Inventory adjustments |
|
(4.79 |
) |
|
(0.53 |
) |
|
(0.49 |
) |
|
- |
|
|
(2.04 |
) |
|
(53 |
) |
|
(1.84 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
15.70 |
|
|
$ |
14.38 |
|
|
$ |
13.82 |
|
|
$ |
5.69 |
|
|
$ |
14.43 |
|
|
$ |
792 |
|
|
$ |
14.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
126,452 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
994 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
18,492 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,036 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,783 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,549 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,721 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
166,027 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,529,991 |
|
Kensington silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,343,940 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,873,931 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
21.09 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(1.84 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
19.25 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended September 30, 2014
|
|
Silver |
|
Gold |
|
|
(Dollars in thousands except per ounce
amounts) |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
62,481 |
|
|
$ |
25,564 |
|
|
$ |
29,077 |
|
|
$ |
1,998 |
|
|
$ |
119,120 |
|
|
$ |
47,555 |
|
|
$ |
166,675 |
|
Amortization |
|
16,493 |
|
|
5,117 |
|
|
5,359 |
|
|
909 |
|
|
27,878 |
|
|
12,887 |
|
|
40,765 |
|
Costs applicable to sales |
|
$ |
45,988 |
|
|
$ |
20,447 |
|
|
$ |
23,718 |
|
|
$ |
1,089 |
|
|
$ |
91,242 |
|
|
$ |
34,668 |
|
|
$ |
125,910 |
|
Silver equivalent ounces sold |
|
3,021,448 |
|
|
1,438,409 |
|
|
1,602,676 |
|
|
141,291 |
|
|
6,203,824 |
|
|
|
|
8,424,364 |
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
37,009 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
15.22 |
|
|
$ |
14.22 |
|
|
$ |
14.80 |
|
|
$ |
7.71 |
|
|
$ |
14.71 |
|
|
$ |
937 |
|
|
$ |
14.95 |
|
Inventory adjustments |
|
(0.79 |
) |
|
(0.55 |
) |
|
(0.02 |
) |
|
- |
|
|
(0.52 |
) |
|
(48 |
) |
|
(0.59 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
14.43 |
|
|
$ |
13.67 |
|
|
$ |
14.78 |
|
|
$ |
7.71 |
|
|
$ |
14.19 |
|
|
$ |
889 |
|
|
$ |
14.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
125,910 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,425 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,239 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,515 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,587 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,041 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,154 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
158,871 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,203,824 |
|
Kensington silver equivalent
ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,220,540 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,424,364 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
18.86 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.59 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
18.27 |
|
Reconciliation of
Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended June 30, 2014
|
|
Silver |
|
Gold |
|
|
In thousands except per ounce amounts |
|
Palmarejo |
|
San Bartolomé |
|
Rochester |
|
Endeavor |
|
Total |
|
Kensington |
|
Total |
Costs applicable to sales,
including amortization (U.S. GAAP) |
|
$ |
67,595 |
|
|
$ |
25,550 |
|
|
$ |
29,406 |
|
|
$ |
1,701 |
|
|
$ |
124,252 |
|
|
$ |
34,784 |
|
|
$ |
159,036 |
|
Amortization |
|
18,044 |
|
|
4,855 |
|
|
5,025 |
|
|
859 |
|
|
28,783 |
|
|
11,566 |
|
|
40,349 |
|
Costs applicable to sales |
|
$ |
49,551 |
|
|
$ |
20,695 |
|
|
$ |
24,381 |
|
|
$ |
842 |
|
|
$ |
95,469 |
|
|
$ |
23,218 |
|
|
$ |
118,687 |
|
Silver equivalent ounces sold |
|
3,528,240 |
|
|
1,494,100 |
|
|
1,544,461 |
|
|
106,126 |
|
|
6,672,927 |
|
|
|
|
8,054,607 |
|
Gold ounces sold |
|
|
|
|
|
|
|
|
|
|
|
23,028 |
|
|
|
Costs applicable to sales per ounce |
|
$ |
14.04 |
|
|
$ |
13.85 |
|
|
$ |
15.79 |
|
|
$ |
7.94 |
|
|
$ |
14.31 |
|
|
$ |
1,008 |
|
|
$ |
14.74 |
|
Inventory adjustments |
|
(0.56 |
) |
|
- |
|
|
(0.06 |
) |
|
- |
|
|
(0.31 |
) |
|
(187 |
) |
|
(0.79 |
) |
Adjusted costs applicable to sales per
ounce |
|
$ |
13.48 |
|
|
$ |
13.85 |
|
|
$ |
15.73 |
|
|
$ |
7.94 |
|
|
$ |
14.00 |
|
|
$ |
821 |
|
|
$ |
13.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs applicable to sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
118,687 |
|
Treatment and refining
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
963 |
|
Sustaining capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
17,617 |
|
General and
administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,398 |
|
Exploration |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,153 |
|
Reclamation |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,964 |
|
Project/pre-development costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,388 |
|
All-in sustaining costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
160,170 |
|
Silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,672,927 |
|
Kensington
silver equivalent ounces sold |
|
|
|
|
|
|
|
|
|
|
|
1,381,680 |
|
Consolidated silver equivalent ounces
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,054,607 |
|
All-in
sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
19.89 |
|
Inventory adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.79 |
) |
Adjusted
all-in sustaining costs per silver equivalent ounce |
|
|
|
|
|
|
|
|
|
|
|
$ |
19.10 |
|
![](http://thomsonreuterscorporategroup.122.2o7.net/b/ss/trcgclientrs880/1/H.22.1--NS/0?pageName=Coeur%20Reports%20Second%20Quarter%202015%20Results&c1=1943637&c2=D=Referer)
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Coeur Mining, Inc. via Globenewswire
HUG#1943637
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