Coeur Mining, Inc. (the “Company” or “Coeur”)
(NYSE:CDE) today reported 2016 financial results, posting net
income of $55.4 million, or $0.34 per share, and cash flow from
operating activities of $125.8 million, an increase of $12.3
million, or 11%, over 2015. Adjusted EBITDA1 for the year was
$215.2 million, increasing nearly $90 million, or 68%,
year-over-year. Over the course of 2016, the Company also
meaningfully strengthened its balance sheet, ending the year with
total outstanding debt of $210.9 million, a 57% reduction compared
to a year ago, net debt1 of $48.7 million, and a year-end cash
balance of $162.2 million.
In the fourth quarter, the Company generated a
net loss of $8.3 million, or $0.03 per share, due mostly to lower
metal prices and a one-time loss of $11.3 million related to the
redemption of $190 million in principal of the Company's 7.875%
Senior Notes due 2021. Quarterly cash flow from operating
activities was $25.5 million and adjusted EBITDA1 was $44.0
million.
Highlights
- As announced on January 5, 2017, Coeur
achieved record production of 3.9 million ounces of silver and
102,500 ounces of gold, or 10.0 million silver equivalent ounces
(AgEqOz)1, for the fourth quarter and 14.8 million ounces of silver
and 358,170 ounces of gold, or 36.3 million AgEqOz1 for the full
year
- For Coeur's primary silver operations,
CAS and adjusted CAS per average spot AgEqOz1 were $11.42 and
$11.34, respectively, for the fourth quarter and $11.12 and $10.99
for the full year. The full-year figures represented 10% and 7%
year-over-year declines, respectively
- For Coeur's primary gold operations,
fourth quarter CAS and adjusted CAS per gold equivalent ounce
(AuEqOz)1 were $675 and $676, respectively. Relative to 2015,
full-year CAS and adjusted CAS per AuEqOz1 declined 8% and 10%,
respectively, to $705 and $688
- Companywide AISC and adjusted AISC per
average spot AgEqOz1 were $14.56 and $14.52, respectively, for the
quarter and $14.27 and $14.09 for the full year. Full-year figures
both represent year-over-year decreases of 2%. On a 60:1
equivalence basis, companywide AISC and adjusted AISC per AgEqOz1
were $16.08 and $15.88, respectively, both within the Company
guidance range of $15.75 - $16.25
- General and administrative expenses
were $29.4 million, within Company guidance and representing a
year-over-year decrease of 10%
- Capital expenditures for the quarter
were $29.9 million, driven by the ramp-up of Palmarejo underground
operations at Guadalupe and Independencia, construction of the
Stage IV leach pad expansion at Rochester, and continued
development of the Jualin decline at Kensington. Full-year capital
expenditures were $101.0 million, below Company guidance of $105 -
$115 million
- Total debt decreased $279.5 million, or
57%, year-over-year. Together with rising adjusted EBITDA1, the
Company's total debt to last twelve month (LTM) adjusted EBITDA1
declined to 1.0x, down from 3.8x a year ago and 5.5x fifteen months
ago
- In 2016, Coeur monetized several
non-core assets for a total consideration of $23.8 million,
consistent with its strategy of redeploying capital to
higher-return opportunities. This focus has continued into the new
year, with the pending Joaquin Project sale announced in January
2017 for total consideration of $25 million plus a 2% NSR
"2016 marked a key inflection point for Coeur.
Our silver equivalent production set a new Company record,
operating and non-operating costs continued to decline, adjusted
EBITDA increased materially, and we achieved strong earnings for
the year. In addition, we delivered on our commitment to strengthen
our balance sheet by reducing total debt by $280 million,” said
Mitchell J. Krebs, Coeur's President and Chief Executive
Officer.
“Coeur has entered 2017 well-positioned to
continue delivering high-quality growth through ongoing initiatives
at our Palmarejo, Kensington, and Rochester operations. In
addition, our exploration programs targeting near-mine additions to
reserves and resources have been accelerated and are expected to
further enhance and extend the economics of our existing
operations. Our team has done a terrific job executing our
strategic plan and striving to establish a higher standard in all
areas of the business.”
Financial and Operating Highlights
(Unaudited)
(Amounts in millions, except per share amounts, gold
ounces produced & sold, and per-ounce metrics) 2016
4Q 2016 3Q 2016 2Q 2016
1Q 2016 2015 4Q 2015
Revenue $ 665.8 $ 159.2 $ 176.2
$ 182.0 $ 148.4 $ 646.1 $ 164.2
Costs Applicable to Sales
$ 409.5 $ 102.0 $ 105.4 $ 100.5 $ 101.6
$ 479.7 $ 125.3
General and Administrative Expenses $
29.4 $ 6.6 $ 7.1 $ 7.4 $ 8.3 $ 32.8 $ 8.8
Net Income (Loss) $ 55.4 $ (8.3
) $ 69.6 $ 14.5 $ (20.4 ) $ (367.2 ) $ (303.0 )
Net
Income (Loss) Per Share $ 0.34 $
(0.03 ) $ 0.42 $ 0.09 $ (0.14 ) $ (2.83 ) $ (2.28 )
Adjusted Net Income (Loss)1 $ 47.8
$ 2.8 $ 38.6 $ 16.9 $ (10.5 ) $ (103.6 ) $ (44.0 )
Adjusted Net Income (Loss)1 Per Share $
0.29 $ 0.01 $ 0.23 $ 0.11 $ (0.06 ) $ (0.80 )
$ (0.31 )
Weighted Average Shares 163.5 178.6
161.0 157.9 150.2 129.6 145.0
EBITDA1 $
161.2 $ 27.4 $ 50.9 $ 62.1 $ 20.8 $ (204.0 ) $
(272.9 )
Adjusted EBITDA1 $ 215.2
$ 44.0 $ 62.7 $ 72.0 $ 37.4 $ 127.9 $ 32.9
Cash
Flow from Operating Activities $ 125.8 $
25.5 $ 47.8 $ 45.9 $ 6.6 $ 113.5 $ 43.2
Capital
Expenditures $ 101.0 $ 29.9 $ 25.6
$ 23.3 $ 22.2 $ 95.2 $ 30.0
Free Cash Flow1 $
(2.4 ) $ (4.5 ) $ 14.6 $ 12.2 $
(24.7 ) $ (20.9 ) $ 4.2
Cash, Equivalents & Short-Term
Investments $ 162.2 $ 162.2 $ 222.5
$ 257.6 $ 173.4 $ 200.7 $ 200.7
Total Debt2 $
210.9 $ 210.9 $ 401.7 $ 511.1 $ 511.1 $ 490.4
$ 490.4
Average Realized Price Per Ounce – Silver $
17.18 $ 16.64 $ 19.61 $ 17.38 $ 15.16 $ 15.46
$ 14.27
Average Realized Price Per Ounce – Gold $
1,230 $ 1,170 $ 1,317 $ 1,255 $ 1,178 $ 1,143
$ 1,093
Silver Ounces Produced 14.8 3.9 3.5
4.0 3.4 15.9 4.0
Gold Ounces Produced 358,170
102,500 84,871 92,727 78,072 327,908 91,551
Silver
Equivalent Ounces Produced1 36.3 10.0 8.6
9.6 8.1 35.6 9.5
Silver Ounces Sold 14.3 3.4
3.4 4.0 3.5 16.5 4.4
Gold Ounces Sold 338,131
87,108 83,389 88,543 79,091 335,882 92,032
Silver
Equivalent Ounces Sold1 34.6 8.6 8.4 9.3
8.3 36.7 9.9
Silver Equivalent Ounces Sold (Average
Spot)1 39.0 9.6 9.1 10.6 9.8 41.4 11.3
Adjusted CAS per AgEqOz1 $ 11.73
$ 12.05 $ 12.10 $ 10.71 $ 12.05 $ 12.75 $ 12.65
Adjusted CAS per Average Spot AgEqOz1 $
10.99 $ 11.34 $ 11.64 $ 9.90 $ 11.00 $ 11.87 $
11.79
Adjusted CAS per AuEqOz1 $ 688
$ 676 $ 712 $ 644 $ 721 $ 764 $ 663
Adjusted AISC
per AgEqOz1 $ 15.88 $ 16.13
$ 16.46 $ 14.82 $ 16.05 $ 16.16 $ 15.66
Adjusted AISC per
Average Spot AgEqOz1 $ 14.09
$ 14.52 $ 15.23 $ 12.95 $ 13.51 $ 14.32 $ 13.73
Financial Results
During the quarter, the Company realized
average silver and gold prices of $16.64 and $1,170 per ounce,
representing quarter-over-quarter decreases of 15% and 11%,
respectively. Importantly, the average realized gold price in the
fourth quarter reflected the impact of the new gold stream
agreement with Franco-Nevada, which provides for a payment of $800
per ounce delivered. For the full year, average realized silver and
gold prices were $17.18 and $1,230, 11% and 8% higher,
respectively, year-over-year.
Fourth quarter revenue was $159.2 million, a
decrease of 10% quarter-over-quarter, driven by lower metal prices.
Silver metal sales contributed 33% and gold 67%. For the full year,
revenue increased 3% to $665.8 million, with silver metal sales
contributing 37% and gold 63%.
Costs applicable to sales were $102.0 million
for the fourth quarter. Full-year costs applicable to sales were
$409.5 million, representing a year-over-year decrease of 15%,
primarily driven by lower unit costs. Other contributing factors
include increased operating efficiencies, lower input costs, and
more favorable currency exchange rates.
Free cash flow1 for the quarter was negatively
impacted by an increase in inventory at Palmarejo as well as the
acceleration of cash interest paid in connection with the
redemption of $190 million in principal of the Company's 7.875%
Senior Notes due 2021. The increase in inventory at Palmarejo
resulted from the timing of a quarter-end shipment and gold
retained for purchase by Franco-Nevada in January 2017.
Fourth quarter expensed exploration was $5.3
million, bringing full-year expensed exploration to $12.9 million,
representing a year-over-year increase of 11% due to expanded
exploration drilling activities at Palmarejo, Kensington, and
Rochester.
Net income in 2016 was $55.4 million, or $0.34
per share. This compares to a net loss of $367.2 million, or $2.83
per share in 2015, which included after-tax, non-cash impairment
charges of $313.3 million. Adjusted net income1 in 2016 was $47.8
million, or $0.29 per share, a significant improvement over the
adjusted net loss1 in 2015 of $103.6 million, or $0.80 per
share.
Operations
Highlights of fourth quarter and full-year 2016
results for each of the Company's operating segments are provided
below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts)
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Underground Operations: Tons mined
1,047,000 293,706 253,681 283,971 215,642 701,662 189,383
Average silver grade (oz/t) 4.69 5.00 3.96 5.40 4.21
4.06 3.96
Average gold grade (oz/t) 0.08 0.09 0.08
0.08 0.07 0.08 0.06
Surface Operations: Tons mined
36,906 — — 1,695 35,211 888,432 102,018
Average silver
grade (oz/t) 4.34 — — 7.77 4.18 3.64 3.86
Average
gold grade (oz/t) 0.04 — — 0.07 0.04 0.03 0.03
Processing: Total tons milled 1,078,888
287,569 274,644 270,142 246,533 1,616,668 301,274
Average
recovery rate – Ag 88.4% 89.1% 85.5% 89.5% 89.1% 84.3%
95.4%
Average recovery rate – Au 86.5% 90.4% 77.7%
86.4% 92.1% 80.6% 88.8%
Silver ounces produced (000's)
4,442 1,269 933 1,307 933 5,149 1,126
Gold ounces
produced 73,913 23,906 16,608 18,731 14,668 70,922
14,326
Silver equivalent ounces produced1
(000's) 8,877 2,703 1,930 2,431 1,813 9,404 1,985
Silver ounces sold (000's) 3,993 937 778 1,350 928
5,448 1,465
Gold ounces sold 59,081 15,558 11,410
19,214 12,899 73,218 18,719
Silver equivalent ounces
sold1 (000's) 7,538 1,872 1,462 2,502
1,702 9,841 2,588
Silver equivalent ounces sold1
(average spot) (000's) 8,305 2,042 1,555 2,792 1,955
10,865 2,867
Metal sales $141.3 $32.5 $30.7 $48.3
$29.8 $169.1 $41.6
Costs applicable to sales $80.8
$20.9 $16.0 $22.9 $21.0 $138.5 $39.8
Adjusted CAS per
AgEqOz1 $10.55 $11.01 $10.70 $9.02 $11.54 $13.03
$13.48
Adjusted CAS per average spot AgEqOz1
$9.57 $10.11 $10.05 $8.09 $10.03 $11.80 $12.15
Exploration expense $5.1 $2.4 $1.3 $0.6 $0.8 $4.5
$0.5
Cash flow from operating activities $26.7 $(1.7)
$13.7 $11.3 $3.4 $52.7 $20.3
Sustaining capital expenditures
$22.7 $3.9 $6.7 $5.5 $6.6 $5.5 $(1.4)
Development capital
expenditures $13.1 $4.2 $3.3 $3.4
$2.2 $30.5 $7.0
Total capital
expenditures $35.8 $8.1 $10.0 $8.9 $8.8 $36.0 $5.6
Free cash flow (before royalties) $(9.1) $(9.8) $3.7
$2.4 $(5.4) $16.7 $14.7
Gold production royalty payments
$27.2 $— $7.6 $10.5 $9.1 $39.2 $9.0
Free cash
flow1 $(36.3) $(9.8) $(3.9) $(8.1) $(14.5)
$(22.5) $5.7
- In 2016, legacy open pit and
underground operations at Palmarejo were completed while
underground operations at Guadalupe and Independencia steadily
accelerated, reaching a mining rate of approximately 2,400 and
1,000 tons per day, respectively, as of year-end. The Company is
targeting a combined mining rate of 4,500 tons per day by year-end
2017
- Silver equivalent1 production increased
40% quarter-over-quarter to 2.7 million ounces as a result of
higher mining rates and improved recovery rates. As expected,
full-year silver equivalent1 production declined 6% to 8.9 million
as the mine transitioned from legacy Palmarejo operations to
higher-grade underground operations at Guadalupe and
Independencia
- Fourth quarter adjusted CAS per average
spot AgEqOz1 was $10.11 while full-year adjusted CAS per average
spot AgEqOz1 was $9.57, representing a year-over-year decrease of
19% as a result of higher grade production, lower input costs, and
a more favorable exchange rate
- Exploration expense increased in the
second half of the year as drilling efforts to extend mine life
accelerated
- In July 2016, the 400,000 ounce minimum
royalty obligation with Franco-Nevada under the original agreement
was satisfied and the new, more favorable gold stream agreement
became effective. The first sale under the new stream agreement
occurred in the fourth quarter at a gold price of $800 per
ounce
- In 2017, Palmarejo is expected to
produce 6.5 - 7.0 million ounces of silver and 110,000 - 120,000
ounces of gold, or 13.1 - 14.2 million silver equivalent1 ounces at
CAS per AgEqOz1 of $10.00 - $10.50. Using a 69:1 spot silver to
gold ratio, Palmarejo's 2017 CAS per spot AgEqOz1 is expected to be
$9.25 - $9.75
- Capital expenditures are expected to
increase to $40 - $45 million in 2017 as a result of the ongoing
transition to underground mining operations at Guadalupe and
Independencia
Rochester, Nevada
(Dollars in millions, except per ounce amounts)
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Ore tons placed 19,555,998 3,878,487
4,901,039 6,402,013 4,374,459 16,414,302 4,411,590
Average
silver grade (oz/t) 0.57 0.57 0.54 0.54 0.64 0.63 0.60
Average gold grade (oz/t) 0.003 0.002 0.003 0.003
0.004 0.003 0.003
Silver ounces produced (000's)
4,564 1,277 1,161 1,197 929 4,631 1,107
Gold ounces
produced 50,751 14,231 12,120 13,940 10,460 52,588
11,564
Silver equivalent ounces produced1
(000's) 7,609 2,131 1,888 2,033 1,557 7,786 1,800
Silver ounces sold (000's) 4,584 1,205 1,163 1,137
1,079 4,900 1,125
Gold ounces sold 49,320 12,988
11,751 12,909 11,672 57,963 11,587
Silver equivalent ounces
sold1 (000's) 7,543 1,984 1,868 1,912
1,779 8,378 1,821
Silver equivalent ounces sold1
(average spot) (000's) 8,183 2,128 1,963 2,106 2,009
9,188 1,993
Metal sales $139.9 $36.2 $37.9 $35.8
$30.0 $143.9 $29.0
Costs applicable to sales $89.7
$23.7 $21.8 $21.7 $22.5 $104.0 $22.8
Adjusted CAS per
AgEqOz1 $11.86 $11.99 $11.56 $11.30 $12.61 $12.36
$12.37
Adjusted CAS per average spot AgEqOz1
$10.93 $11.16 $11.02 $10.24 $11.17 $11.28 $11.32
Exploration expense $0.8 $0.4 $0.1 $0.2 $0.1 $1.3
$0.1
Cash flow from operating activities $28.4 $7.6
$9.5 $9.2 $2.1 $32.1 $0.4
Sustaining capital expenditures
$7.8 $1.5 $1.2 $2.6 $2.5 $10.3 $5.3
Development capital
expenditures $8.6 $4.3 $2.2 $1.3
$0.8 $15.0 $5.5
Total capital
expenditures $16.4 $5.8 $3.4 $3.9 $3.3 $25.3 $10.8
Free cash flow1 $12.0 $1.8 $6.1 $5.3 $(1.2)
$6.8 $(10.4)
- Fourth quarter silver equivalent1
production increased 13% quarter-over-quarter to 2.1 million ounces
due to improved Stage III leach pad performance resulting from
strong ore placement rates throughout 2016. Full-year silver
equivalent1 production was 7.6 million ounces
- Tons placed of 19.6 million in 2016 was
approximately 19% higher year-over-year and the highest since
Rochester first began operating in 1986
- Adjusted CAS per average spot AgEqOz1
increased slightly to $11.16 in the fourth quarter and decreased 3%
to $10.93 for the full year
- Full-year free cash flow1 was $12.0
million, representing an increase of $5.2 million, or 76%, over
2015. This was primarily driven by increased production, lower unit
costs, and lower capital expenditures
- Construction of the Stage IV leach pad
expansion remains on-schedule and on-budget, with commissioning
expected in the third quarter of 2017
- Full-year 2017 production expected to
be 4.2 - 4.7 million ounces of silver and 47,000 - 52,000 ounces of
gold, or 7.0 - 7.8 million silver equivalent1 ounces at CAS per
AgEqOz1 of $11.50 - $12.00. Using a 69:1 spot silver to gold ratio,
Rochester's 2017 CAS per spot AgEqOz1 is expected to be $10.75 -
$11.25
- Capital expenditures are expected to
increase to $30 - $35 million in 2017 due to continued construction
of the Stage IV leach pad expansion
Kensington, Alaska
(Dollars in millions, except per ounce amounts)
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Tons milled 620,209 163,410 140,322
157,117 159,360 660,464 159,666
Average gold grade (oz/t)
0.21 0.22 0.20 0.22 0.21 0.20 0.22
Average recovery
rate 94.7% 94.4% 94.8% 94.1% 95.8% 94.9% 96.0%
Gold
ounces produced 124,331 33,688 26,459 32,210 31,974
126,266 33,713
Gold ounces sold 121,688 28,864 30,998
30,178 31,648 131,553 29,989
Metal sales $146.6 $34.2
$40.2 $36.5 $35.7 $148.7 $31.7
Costs applicable to sales
$96.7 $23.0 $26.7 $22.6 $24.4 $105.6 $23.7
Adjusted CAS
per AuOz1 $790 $801 $859 $740 $761 $798 $777
Exploration expense $3.5 $1.3 $1.2 $1.0 $— $2.6 $0.3
Cash flow from operating activities $50.8 $11.4 $18.0
$7.7 $13.7 $37.7 $4.5
Sustaining capital expenditures
$22.8 $8.9 $5.2 $4.3 $4.4 $14.8 $5.5
Development capital
expenditures $14.0 $3.7 $3.4 $3.2
$3.7 $9.0 $4.0
Total capital
expenditures $36.8 $12.6 $8.6 $7.5 $8.1 $23.8 $9.5
Free cash flow1 $14.0 $(1.2) $9.4 $0.2 $5.6
$13.9 $(5.0)
- Fourth quarter gold production was the
highest of the year, increasing 27% quarter-over-quarter to 33,688
ounces due to higher tons milled and higher grades. Full-year
production was near the high end of the Company's guidance range at
124,331 ounces of gold
- Fourth quarter adjusted CAS per gold
ounce (AuOz)1 decreased 7% quarter-over-quarter to $801 due to
higher grades. Full-year adjusted CAS per AuOz1 was within guidance
at $790 and represented a 1% decrease year-over-year
- Despite a year-over-year $13.0 million
increase in capital expenditures, free cash flow1 remained flat in
2016 at $14.0 million
- 2017 production is expected to be
120,000 - 125,000 ounces of gold at CAS per AuOz1 of $800 -
$850
- Capital expenditures are expected to
increase to over $40 million in 2017 primarily as a result of
ongoing development of the Jualin deposit, where production is
expected to begin late in the year
Wharf, South Dakota
(Dollars in millions, except per ounce amounts)
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Ore tons placed 4,268,105 1,178,803
1,199,008 915,631 974,663 3,600,279 1,147,130
Average silver
grade (oz/t) 0.28 0.29 0.24 0.28 0.30 0.23 0.21
Average gold grade (oz/t) 0.032 0.027 0.033 0.037
0.031 0.030 0.032
Average plant recovery rate – Au
94.3% 98.9% 94.4% 88.5% 95.9% 89.5% 96.3%
Gold ounces
produced 109,175 30,675 29,684 27,846 20,970 78,132
31,947
Silver ounces produced (000's) 105 32 25 35 13
56 18
Gold equivalent ounces produced1 110,927
31,202 30,106 28,433 21,186 79,061 32,231
Silver ounces sold
(000's) 95 30 17 33 15 49 17
Gold ounces sold
108,042 29,698 29,230 26,242 22,872 73,148 31,737
Gold
equivalent ounces sold1 109,620 30,204 29,508
26,786 23,122 73,965 32,014
Metal sales $136.7 $35.5
$39.3 $34.0 $27.9 $84.1 $35.7
Costs applicable to sales
$66.4 $16.9 $19.7 $14.3 $15.5 $52.2 $17.8
Adjusted CAS
per AuEqOz1 $575 $556 $559 $534 $667 $706 $556
Exploration expense $— $— $— $— $— $0.1 $0.1
Cash
flow from operating activities $62.4 $15.4 $21.1 $16.2
$9.7 $32.0 $18.1
Sustaining capital expenditures $4.8
$1.3 $0.6 $1.5 $1.4 $3.2 $1.2
Development capital
expenditures $— $— $— $— $—
$— $—
Total capital expenditures $4.8
$1.3 $0.6 $1.5 $1.4 $3.2 $1.2
Free cash flow1
$57.6 $14.1 $20.5 $14.7 $8.3 $28.8 $16.9
- Gold production in the fourth quarter
was 30,675 ounces, the strongest quarter of 2016. The concurrent
decline in average gold grade for the period was anticipated due to
seasonal mine sequencing
- Full-year production of 109,175 ounces
of gold exceeded the high-end of Company guidance by over 9,000
ounces and represented an increase of 40% compared to 2015. This
was largely the result of two additional months of production, as
well as improved grades and plant recovery rates
- Fourth quarter adjusted CAS per AuEqOz1
was relatively flat quarter-over-quarter at $556, while full-year
adjusted CAS per AuEqOz1 beat guidance, decreasing 19% to $575,
primarily due to lower mining and leaching costs
- Full-year free cash flow1 of $57.6
million brings total free cash flow to $86.4 million since the
acquisition of Wharf in February 2015 for $99 million
- Production in 2017 is expected to be
85,000 - 90,000 ounces of gold at CAS per AuEqOz1 of $775 - $825,
both of which reflect the anticipated completion of the
higher-grade Golden Reward deposit by mid-year
San Bartolomé, Bolivia
(Dollars in millions, except per ounce amounts)
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Tons milled 1,666,787 368,131 450,409
440,441 407,806 1,713,079 475,695
Average silver grade
(oz/t) 3.69 3.96 3.43 3.79 3.64 3.75 3.84
Average
recovery rate 88.8% 86.3% 88.7% 87.4% 93.1% 84.6% 84.9%
Silver ounces produced (000's) 5,469 1,259 1,370
1,458 1,382 5,436 1,550
Silver ounces sold (000's)
5,411 1,218 1,391 1,418 1,384 5,495 1,564
Metal sales
$93.9 $19.9 $27.5 $25.2 $21.3 $84.7 $22.4
Costs
applicable to sales $74.2 $17.3 $20.8 $18.6 $17.5 $75.8
$20.0
Adjusted CAS per AgOz1 $13.46 $13.97
$14.40 $12.97 $12.56 $13.63 $12.48
Exploration expense
$— $— $— $— $— $0.1 $—
Cash flow from operating
activities $29.4 $4.1 $8.6 $11.2 $5.5 $26.1 $10.0
Sustaining capital expenditures $6.6 $1.8 $3.0 $1.3
$0.5 $6.2 $2.5
Development capital expenditures $—
$— $— $— $— $— $—
Total capital expenditures $6.6 $1.8 $3.0 $1.3 $0.5
$6.2 $2.5
Free cash flow1 $22.8 $2.3 $5.6 $9.9
$5.0 $19.9 $7.5
- Fourth quarter silver production
decreased 8% quarter-over-quarter to 1.3 million ounces due to an
ongoing water shortage in Bolivia resulting from nationwide drought
conditions
- Full-year silver production was
relatively constant at 5.5 million ounces
- Fourth quarter and full-year adjusted
CAS per silver ounce (AgOz)1 decreased 3% quarter-over-quarter and
1% year-over-year, respectively, to $13.97 and $13.46. Fourth
quarter CAS per AgOz1 benefited from higher grade ore while the
decrease in full-year CAS per AgOz1 was driven by lower consumables
costs
- Cash flow from operating activities and
free cash flow1 for the full year were $29.4 million and $22.8
million, respectively, representing year-over-year increases of 13%
and 15%
- The Company's 2017 production guidance
is 5.4 - 5.9 million silver ounces at CAS per AgOz1 of $14.00 -
$14.50
Coeur Capital
(Dollars in millions, except per ounce amounts)
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Tons milled 219,430 52,711 42,335
37,521 86,863 767,314 198,927
Average silver grade (oz/t)
2.48 2.09 2.28 1.66 3.17 1.87 2.05
Average recovery
rate 45.6% 39.8% 58.2% 52.5% 41.9% 43.8% 42.1%
Silver
ounces produced (000's) 248 44 56 33 115 629 171
Silver ounces sold (000's) 262 58 46 35 123 615 193
Metal sales $4.1 $0.9 $0.8 $0.5 $1.9 $8.7 $2.4
Royalty revenue $3.3 $(0.2) $(0.1) $1.8 $1.8 $6.9
$1.5
Costs applicable to sales (Endeavor silver stream)
$1.7 $— $0.4 $0.3 $1.0 $3.5 $1.0
CAS per AgOz1
$6.56 $7.06 $8.10 $7.94 $5.35 $5.72 $5.50
Cash flow from
operating activities $0.2 $2.2 $0.4 $(3.2) $0.8 $8.2
$0.8
Free cash flow1 $0.2 $2.2 $0.4 $(3.2)
$0.8 $8.2 $0.8
- Fourth quarter and full-year silver
production from the Company's silver stream on the Endeavor mine in
Australia decreased 21% quarter-over-quarter and 61%
year-over-year, respectively, to 43,901 and 247,998 ounces, due to
the operator's decision to reduce mining rates in response to lower
lead and zinc prices
- 2017 production is expected to be
300,000 - 400,000 ounces of silver due to an anticipated increase
in production following recent improvements in zinc and lead
prices
- Royalty revenue decreased compared to
2015 primarily due to non-core asset sales during the year that
totaled $23.8 million
Exploration
Fourth quarter expensed exploration was $5.3
million, bringing full-year expensed exploration to $12.9 million,
an 11% year-over-year increase, due to expanded exploration
drilling activities. Fourth quarter and full-year capitalized
drilling were $2.5 million and $12.9 million, respectively. As of
year-end, the Company had 17 drill rigs active across Palmarejo,
Kensington, Rochester, La Preciosa, and two early-stage exploration
properties and had completed over 400,896 feet (122,195 meters) of
combined core and reverse circulation drilling throughout the
year.
Highlights from Coeur’s expanded exploration
program in 2016 include:
- Increased both surface and underground
drilling at Palmarejo, and specifically at the Guadalupe and
Independencia mines and the Los Bancos and Nación-Dana deposits,
with eight drill rigs active at year-end
- Accelerated surface and underground
exploration at Kensington with a focus on growth at Kensington Main
as well as at Jualin, Raven, and several new veins discovered
through surface sampling programs
- Continued extension and infill of the
East Rochester discovery as well as resource conversion drilling
within the western portions of the main pit
- Development of a new geologic model for
Wharf, which is expected to set the stage for continued resource
growth
In 2017, the expensed exploration budget has
been nearly doubled to $23 - $25 million with a continued focus on
resource growth. Another $11 - $13 million of capital is expected
to be allocated to resource conversion. Priorities for 2017
include:
- Increased step-out drilling at all of
our mine sites, with the largest budget allocation to
Palmarejo
- Continued definition drilling at La
Preciosa
- Early-stage exploration in Mexico, USA,
and Canada focused on developing a long-term pipeline of
high-quality projects
Full-Year 2017
Outlook
Full-year 2017 guidance highlights are provided
below. Production guidance remains unchanged from the guidance
published January 5, 2017.
- Expected silver equivalent1 production
increase driven by ongoing acceleration of Palmarejo underground
operations offset by lower expected production at Wharf
- Higher expected CAS per AuEqOz1 at
Wharf due to anticipated completion of mining of the higher-grade
Golden Reward deposit, higher tons mined compared to 2016, and
one-time plant maintenance expenses
- Anticipated increase in capital
expenditures driven by carryover from 2016, the Stage IV leach pad
expansion at Rochester, and higher underground development levels
at Kensington and Palmarejo
- Higher exploration expense primarily
due to step-out drilling at Palmarejo, definition drilling at La
Preciosa, and early-stage exploration
2017 Production Outlook
(silver and silver equivalent ounces in thousands)
Silver Gold Silver
Equivalent1 Palmarejo 6,500 - 7,000 110,000 -
120,000 13,100 - 14,200
Rochester 4,200 - 4,700 47,000 -
52,000 7,020 - 7,820
San Bartolomé 5,400 - 5,900 — 5,400 -
5,900
Endeavor 300 - 400 — 300 - 400
Kensington —
120,000 - 125,000 7,200 - 7,500
Wharf — 85,000
- 90,000 5,100 - 5,400
Total 16,400 - 18,000
362,000 - 387,000 38,120 - 41,220
2017 Cost Outlook
2017 Guidance Based On 2016 Results3
Based On (dollars in millions, except per ounce
amounts) 60:1 69:1 Spot 60:1
Average Spot CAS per AgEqOz1 –
Palmarejo $10.00 - $10.50 $9.25 - $9.75 $10.55 $9.57
CAS per
AgEqOz1 – Rochester $11.50 - $12.00 $10.75 -
$11.25 $11.86 $10.93
CAS per AgOz1 – San
Bartolomé $14.00 - $14.50 $13.46
CAS per AuOz1
– Kensington $800 - $850 $790
CAS per AuEqOz1
– Wharf $775 - $825 $575
Capital Expenditures $115 -
$135 $101
General and Administrative Expenses $28 - $32 $29
Exploration Expense $23 - $25 $13
AISC per
AgEqOz1 $15.75 - $16.25 $14.50 - $15.00 $15.88 $14.09
Conference Call Information
Coeur will report its full operational and
financial results for fourth quarter and full-year 2016 on February
8, 2017 after the New York Stock Exchange closes for trading. There
will be a conference call on February 9, 2017 at 11:00 a.m. Eastern
time.
Dial-In Numbers: (855) 560-2581 (US) (855)
669-9657 (Canada) (412) 542-4166 (International)
Conference ID: Coeur Mining
The conference call and presentation will also
be webcast on the Company’s website www.coeur.com. Hosting the call
will be Mitchell J. Krebs, President and Chief Executive Officer of
Coeur, who will be joined by Peter C. Mitchell, Senior Vice
President and Chief Financial Officer, Frank L. Hanagarne, Jr.,
Senior Vice President and Chief Operating Officer, Hans Rasmussen,
Senior Vice President of Exploration, and other members of
management. A replay of the call will be available through February
23, 2017.
Replay numbers: (877) 344-7529 (US) (855)
669-9658 (Canada) (412) 317-0088 (International)
Conference ID: 100 98 890
About Coeur
Coeur Mining is a well-diversified, growing
precious metals producer with five precious metals mines in the
Americas employing approximately 2,000 people. Coeur produces from
its wholly owned operations: the Palmarejo silver-gold complex in
Mexico, the Rochester silver-gold mine in Nevada, the Kensington
gold mine in Alaska, the Wharf gold mine in South Dakota, and the
San Bartolomé silver mine in Bolivia. The Company also has a
non-operating interest in the Endeavor mine in Australia. In
addition, the Company owns the La Preciosa project in Mexico, a
silver-gold exploration stage project. Coeur conducts ongoing
exploration activities in Alaska, Nevada, South Dakota, and
Mexico.
Cautionary Statement
This news release contains forward-looking
statements within the meaning of securities legislation in the
United States and Canada, including statements regarding interest
expense, production, costs, capital expenditures, expenses, mining
rates, development activity at Palmarejo and Kensington, expansion
at Rochester, transitioning to a lower-cost, high-quality
profitable precious metals producer, cash flow, mine lives, growth,
operations at Kensington and Wharf, drilling, resource growth and
conversion, development of a pipeline of future projects, and
exploration efforts. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
Coeur's actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the risk that
anticipated production, cost and expense levels are not attained,
the risks and hazards inherent in the mining business (including
risks inherent in developing large-scale mining projects,
environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold and silver and a sustained lower price environment, the
uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting
and regulatory delays, ground conditions, grade variability, any
future labor disputes or work stoppages (including those involving
third parties), the uncertainties inherent in the estimation of
gold and silver reserves and resources, changes that could result
from Coeur's future acquisition of new mining properties or
businesses, the absence of control over and reliance on third
parties to operate mining operations in which Coeur or its
subsidiaries hold royalty or streaming interests and risks related
to these mining operations (including results of mining and
exploration activities, environmental, economic and political risks
of the jurisdiction in which the mining operations are located),
the loss of access to any third-party smelter to whom 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 recent developments 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 report on Form 10-K. Actual results, developments and
timetables could vary significantly from the estimates presented.
Readers are cautioned not to put undue reliance on forward-looking
statements. Coeur disclaims any intent or obligation to update
publicly such forward-looking statements, whether as a result of
new information, future events or otherwise. Additionally, Coeur
undertakes no obligation to comment on analyses, expectations or
statements made by third parties in respect of Coeur, its financial
or operating results or its securities.
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 www.sedar.com.
Non-U.S. GAAP Measures
We supplement the reporting of our financial
information determined under United States generally accepted
accounting principles (U.S. GAAP) with certain non-U.S. GAAP
financial measures, including EBITDA, adjusted EBITDA, net debt,
total debt to LTM adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce or per average spot silver equivalent ounce),
adjusted costs applicable to sales per silver equivalent ounce (or
per gold equivalent ounce or per average spot silver equivalent
ounce), all-in sustaining costs, and adjusted all-in sustaining
costs. We believe that these adjusted measures provide meaningful
information to assist management, investors and analysts in
understanding our financial results and assessing our prospects for
future performance. We believe these adjusted financial measures
are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We believe EBITDA,
adjusted EBITDA, net debt, total debt to LTM adjusted EBITDA,
adjusted net income (loss), costs applicable to sales per silver
equivalent ounce (or per gold equivalent ounce or per average spot
silver equivalent ounce), adjusted costs applicable to sales per
silver equivalent ounce (or per gold equivalent ounce or per
average spot silver equivalent ounce), all-in sustaining costs, and
adjusted all-in sustaining costs are important measures in
assessing the Company's overall financial performance. For
additional explanation regarding our use of non-U.S. GAAP financial
measures, please refer to our Form 10-K for the year ended December
31, 2016.
Notes
- EBITDA, adjusted EBITDA, net debt,
total debt to LTM adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce or per average spot silver equivalent ounce),
adjusted costs applicable to sales per silver equivalent ounce (or
per gold equivalent ounce or per average spot silver equivalent
ounce), all-in sustaining costs, and adjusted all-in sustaining
costs are non-GAAP measures. Please see tables in the Appendix for
the reconciliation to U.S. GAAP. For purposes of silver and gold
equivalence, a 60:1 silver to gold ratio is assumed except where
noted as average spot prices. Please see table below for average
silver and gold spot prices during the period and the silver to
gold ratio. Free cash flow is defined as cash flow from operating
activities less capital expenditures and gold production royalty
payments. Please see table in Appendix for the calculation of
consolidated free cash flow.
- Includes capital leases. Net of debt
issuance costs and premium received.
- 2016 results reflect adjusted CAS and
AISC. Please see reconciliation tables in the Appendix for
additional information.
Average Spot Prices
2016 4Q 2016 3Q 2016
2Q 2016 1Q 2016 2015
4Q 2015 Average Silver Spot Price Per Ounce $
17.14 $ 17.19 $ 19.61 $ 16.78 $ 14.85 $ 15.68 $ 14.77
Average
Gold Spot Price Per Ounce $ 1,251 $ 1,222 $ 1,335 $ 1,260 $
1,183 $ 1,160 $ 1,106
Average Silver to Gold Spot
Equivalence 73:1 71:1 68:1 75:1 80:1 74:1 75:1
Coeur Mining, Inc. and Subsidiaries Condensed
Consolidated Statements of Comprehensive Income (Loss)
Year ended December 31, 2016 2015
2014 In thousands, except share data Revenue $
665,777 $ 646,086 $ 635,742 COSTS AND EXPENSES Costs applicable to
sales(1) 409,541 479,654 477,945 Amortization 123,161 143,751
162,436 General and administrative 29,376 32,834 40,845 Exploration
12,930 11,647 21,740 Write-downs 4,446 313,337 1,472,721
Pre-development, reclamation, and other 17,219 17,793
26,037 Total costs and expenses 596,673 999,016 2,201,724
OTHER INCOME (EXPENSE), NET Gain (loss) on debt extinguishment
(21,365 ) 15,916 — Fair value adjustments, net (11,581 ) 5,202
3,618 Interest expense, net of capitalized interest (36,920 )
(45,703 ) (47,546 ) Other, net 1,875 (15,931 ) (5,218 )
Total other income (expense), net (67,991 ) (40,516 ) (49,146 )
Income (loss) before income and mining taxes 1,113 (393,446 )
(1,615,128 ) Income and mining tax (expense) benefit 54,239
26,263 428,254 NET INCOME (LOSS) $ 55,352 $
(367,183 ) $ (1,186,874 ) OTHER COMPREHENSIVE INCOME (LOSS), net of
tax: Unrealized gain (loss) on equity securities, net of tax of
$(767) and $1,446 for the years ended December 31, 2016, and 2014,
respectively 3,222 (4,154 ) (2,290 ) Reclassification adjustments
for impairment of equity securities, net of tax of $(2,552) for the
year ended December 31, 2014 703 2,346 4,042 Reclassification
adjustments for realized (gain) loss on sale of equity securities,
net of tax of $(219) for the year ended December 31, 2014 (2,691 )
894 346 Other comprehensive income (loss) 1,234
(914 ) 2,098 COMPREHENSIVE INCOME (LOSS) $ 56,586
$ (368,097 ) $ (1,184,776 ) NET INCOME (LOSS) PER
SHARE Basic $ 0.35 $ (2.83 ) $ (11.59 ) Diluted $
0.34 $ (2.83 ) $ (11.59 )
Coeur Mining, Inc. and
Subsidiaries Condensed Consolidated Statements of Cash
Flows Year ended December 31, 2016
2015 2014 In thousands CASH FLOWS FROM
OPERATING ACTIVITIES: Net income (loss) $ 55,352
(367,183 ) (1,186,874 ) Adjustments: Amortization 123,161 143,751
162,436 Accretion 10,248 14,149 16,246 Deferred income taxes
(71,350 ) (40,838 ) (448,905 ) Loss on termination of revolving
credit facility — — 3,035 (Gain) Loss on extinguishment of debt
21,365 (15,916 ) — Fair value adjustments, net 11,581 (5,202 )
(3,618 ) Stock-based compensation 9,715 9,272 9,288 Impairment of
equity securities 703 2,346 6,593 Write-downs 4,446 313,337
1,472,721 Other (1,067 ) 16,303 124 Changes in operating assets and
liabilities: Receivables 9,011 17,560 (11,611 ) Prepaid expenses
and other current assets (826 ) (3,063 ) 5,635 Inventory and ore on
leach pads (35,591 ) 19,573 12,971 Accounts payable and accrued
liabilities (10,931 ) 9,453 15,507 CASH PROVIDED BY
OPERATING ACTIVITIES 125,817 113,542 53,548
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (101,013
) (95,193 ) (64,244 ) Acquisitions, net (1,417 ) (110,846 ) (21,329
) Proceeds from the sale of assets 16,296 607 329 Purchase of
investments (178 ) (1,880 ) (50,513 ) Sales and maturities of
investments 7,077 605 54,344 Other (4,208 ) (4,586 ) (321 ) CASH
USED IN INVESTING ACTIVITIES (83,443 ) (211,293 ) (81,734 ) CASH
FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock 269,556 —
— Issuance of notes and bank borrowings — 153,500 167,784 Payments
on debt, capital leases, and associated costs (322,801 ) (84,715 )
(25,902 ) Gold production royalty payments (27,155 ) (39,235 )
(48,395 ) Other 172 (542 ) (509 ) CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (80,228 ) 29,008 92,978 Effect
of exchange rate changes on cash and cash equivalents (678 ) (1,404
) (621 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (38,532 )
(70,147 ) 64,171 Cash and cash equivalents at beginning of period
200,714 270,861 206,690 Cash and cash
equivalents at end of period $ 162,182 $ 200,714 $
270,861
Coeur Mining, Inc. and
Subsidiaries Condensed Consolidated Balance Sheets
December 31, 2016 December 31, 2015 ASSETS In
thousands, except share data CURRENT ASSETS Cash and cash
equivalents $ 162,182 $ 200,714 Receivables 60,431 85,992 Inventory
106,026 81,711 Ore on leach pads 64,167 67,329 Prepaid expenses and
other 17,981 10,942 410,787 446,688 NON-CURRENT
ASSETS Property, plant and equipment, net 216,796 195,999 Mining
properties, net 558,455 589,219 Ore on leach pads 67,231 44,582
Restricted assets 17,597 11,633 Equity securities 4,488 2,766
Receivables 30,951 24,768 Deferred tax assets 191 1,942 Other
12,413 14,892 TOTAL ASSETS $ 1,318,909 $
1,332,489 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT
LIABILITIES Accounts payable $ 53,335 $ 52,153 Accrued liabilities
and other 42,743 50,532 Debt 12,039 10,431 Royalty obligations
4,995 24,893 Reclamation 3,522 2,071 116,634 140,080
NON-CURRENT LIABILITIES Debt 198,857 479,979 Royalty obligations
4,292 4,864 Reclamation 95,804 83,197 Deferred tax liabilities
74,798 147,132 Other long-term liabilities 60,037 55,761
433,788 770,933 STOCKHOLDERS’ EQUITY Common stock, par value
$0.01 per share; authorized 300,000,000 shares, issued and
outstanding 180,933,287 at December 31, 2016 and 151,339,136 at
December 31, 2015 1,809 1,513 Additional paid-in capital 3,314,590
3,024,461 Accumulated other comprehensive income (loss) (2,488 )
(3,722 ) Accumulated deficit (2,545,424 ) (2,600,776 ) 768,487
421,476 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $
1,318,909 $ 1,332,489
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
2016
4Q 2016 3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Net income (loss) $ 55,352
$ (8,306 ) $ 69,557 $ 14,497 $ (20,396 ) $ (367,183 ) $ (303,000 )
Interest expense, net of capitalized interest 36,920 6,857 8,068
10,875 11,120 45,703 11,758 Income tax provision (benefit) (54,239
) (1,122 ) (54,455 ) (768 ) 2,106 (26,263 ) (17,811 ) Amortization
123,161 29,929 27,763 37,505
27,964 143,751 36,190
EBITDA 161,194 27,358 50,933 62,109 20,794 (203,992 )
(272,863 ) Fair value adjustments, net 11,581 (1,654 ) 961 3,579
8,695 (5,202 ) (1,546 ) Impairment of equity securities 703 683 —
20 — 2,346 317 Foreign exchange loss 10,720 3,435 1,466 5,655 164
15,769 2,597 (Gain) loss on sale of assets (11,334 ) 339 (7,462 )
(3,126 ) (1,085 ) 352 (168 ) (Gain) loss on debt extinguishment
21,365 11,325 10,040 — — (15,916 ) (16,187 ) Corporate
reorganization costs — — — — — 647 133 Transaction-related costs
1,199 1 26 792 380 2,112 99 Asset retirement obligation accretion
8,369 2,147 2,096 2,066 2,060 8,191 2,288 Inventory adjustments and
write-downs 6,917 389 4,665 946 1,944 10,207 4,901 Write-downs
4,446 — — — 4,446
313,337 313,337
Adjusted EBITDA
$ 215,160 $ 44,023 $ 62,725 $ 72,041
$ 37,398 $ 127,851 $
32,908
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share amounts)
2016
4Q 2016 3Q 2016 2Q 2016 1Q 2016
2015 4Q 2015 Net income (loss) $ 55,352 $ (8,306 ) $
69,557 $ 14,497 $ (20,396 ) $ (367,183 ) $ (303,000 ) Fair value
adjustments, net 11,581 (1,654 ) 961 3,579 8,695 (5,202 ) (1,546 )
Impairment of equity securities 703 683 — 20 — 2,346 317
Write-downs 4,446 — — — 4,446 313,337 313,337 Inventory write-downs
3,689 — 3,689 — — — — (Gain) loss on sale of assets (11,334 ) 339
(7,462 ) (3,126 ) (1,085 ) 352 (168 ) (Gain) loss on debt
extinguishments 21,365 11,325 10,040 — — (15,916 ) (16,187 )
Corporate reorganization costs — — — — — 647 133
Transaction-related costs 1,199 1 26 792 380 2,112 99 Deferred tax
on reorganization (40,767 ) — (40,767 ) — — — — Foreign exchange
(gain) loss (1,034 ) 351 2,549 (2,810 ) (1,124 ) 1,599 753 Tax
effect of adjustments 2,583 — (38 ) $ 3,996 $
(1,375 ) (35,734 ) $ (37,727 )
Adjusted net income (loss) $
47,783 $ 2,739 $ 38,555 $ 16,948 $
(10,459 ) $ (103,642 ) $ (43,989 )
Adjusted net income
(loss) per share - Basic $ 0.30 $ 0.01 $ 0.24 $ 0.11 $ (0.06 )
$ (0.80 ) $ (0.31 )
Adjusted net income (loss) per share -
Diluted $ 0.29 $ 0.01 $ 0.23 $ 0.11 $ (0.06 ) $ (0.80 ) $ (0.31
)
Consolidated Debt
Reconciliation
(Dollars in thousands)
2016 2015 LTM 3Q
2015 Cash and cash equivalents $ 162,182 $ 200,714 $ 205,708
Total debt 210,896 490,410 545,986 Net debt 48,714 289,696 340,278
LTM adjusted EBITDA 215,160 127,851 99,713 Total debt / LTM
adjusted EBITDA 1.0 x 3.8 x 5.5x Net debt / LTM adjusted EBITDA 0.2
x 2.3 x 3.4x
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2016 4Q 2016 3Q
2016 2Q 2016 1Q 2016 2015 4Q 2015
Cash flow from operating activities $ 125,817 $ 25,449 $ 47,812 $
45,939 $ 6,617 $ 113,542 $ 43,217 Capital expenditures (101,013 )
(29,926 ) (25,627 ) (23,288 ) (22,172 ) (95,193 ) (30,035 ) Gold
production royalty payments (27,155 ) — (7,563 ) (10,461 )
(9,131 ) (39,235 ) (8,954 ) Free cash flow (2,351 ) (4,477 ) 14,622
12,190 (24,686 ) (20,886 ) 4,228
Reconciliation of All-in Sustaining Costs per Silver
Equivalent Ounce for Year Ended December 31, 2016
Silver Gold Total In thousands except per
ounce amounts Palmarejo Rochester
San Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
117,419 $ 111,564 $ 80,799 $ 2,363 $
312,145 $ 131,518 $ 87,000 $ 218,518 $ 530,663
Amortization 36,599 21,838 6,633 644
65,714 34,787 20,621 55,408
121,122
Costs applicable to sales $ 80,820 $ 89,726 $
74,166 $ 1,719 $ 246,431 $ 96,731 $ 66,379 $ 163,110 $ 409,541
Silver equivalent ounces sold 7,538,311 7,542,740 5,411,057
262,078 20,754,186 34,632,666
Gold equivalent ounces sold
121,688 109,620
231,308
Costs applicable to sales per ounce $
10.72 $ 11.90 $ 13.71 $ 6.56 $ 11.87 $ 795 $ 606 $ 705 $ 11.83
Inventory adjustments (0.17 ) (0.04 ) (0.25 ) — (0.14
) (5 ) (31 ) (17 ) (0.20 )
Adjusted costs applicable to sales
per ounce $ 10.55 $ 11.86 $ 13.46 $ 6.56
$ 11.73
$ 790 $ 575
$ 688 $ 11.63
Costs applicable to sales per average spot ounce $ 9.73 $
10.97 $ 11.12 $ 10.50
Inventory adjustments (0.16 ) (0.04 )
(0.13 ) (0.18 )
Adjusted costs applicable to sales per average
spot ounce $ 9.57 $ 10.93
$ 10.99 $ 10.32
Costs applicable to sales $ 409,541
Treatment and refining costs 4,307
Sustaining
capital(1) 77,841
General and administrative
29,376
Exploration 12,930
Reclamation 15,504
Project/pre-development costs 7,481
All-in
sustaining costs $ 556,980 Silver equivalent
ounces sold 20,754,186
Kensington and Wharf silver
equivalent ounces sold 13,878,480
Consolidated silver
equivalent ounces sold 34,632,666
All-in sustaining
costs per silver equivalent ounce $ 16.08
Inventory adjustments $ (0.20 )
Adjusted all-in
sustaining costs per silver equivalent ounce $
15.88 All-in sustaining costs per average
spot silver equivalent ounce $ 14.27
Inventory adjustments $ (0.18 )
Adjusted all-in
sustaining costs per average spot silver equivalent ounce
$ 14.09 Reconciliation
of All-in Sustaining Costs per Silver Equivalent Ounce for
Three Months Ended December 31, 2016 Silver
Gold Total In thousands except per ounce
amounts Palmarejo Rochester San
Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
29,667 $ 29,581 $ 18,514 $ 557 $ 78,319
$ 31,577 $ 21,861 $ 53,438 $ 131,757
Amortization 8,784
5,844 1,303 148 16,079 8,584
4,982 13,566 29,645
Costs applicable
to sales $ 20,883 $ 23,737 $ 17,211 $ 409 $ 62,240 $ 22,993 $
16,879 $ 39,872 $ 102,112
Silver equivalent ounces sold
1,871,178 1,983,393 1,217,659 57,903 5,130,133 8,674,273
Gold
equivalent ounces sold
28,864 30,205 59,069
Costs
applicable to sales per ounce $ 11.16 $ 11.97 $ 14.13 $ 7.06 $
12.13 $ 797 $ 559 $ 675 $ 11.77
Inventory adjustments (0.15
) 0.02 (0.16 ) — (0.08 ) 4 (3 ) 1 (0.04
)
Adjusted costs applicable to sales per ounce $ 11.01 $
11.99 $ 13.97 $ 7.06
$ 12.05 $ 801 $ 556
$ 676 $ 11.73
Costs applicable to
sales per average spot ounce $ 10.24 $ 11.14 $ 11.42 $ 10.59
Inventory adjustments (0.13 ) 0.02 (0.08 ) (0.04 )
Adjusted costs applicable to sales per average spot ounce $
10.11 $ 11.16
$ 11.34 $ 10.55
Costs applicable to sales $ 102,112
Treatment and
refining costs 1,261
Sustaining capital 19,850
General and administrative 6,587
Exploration 5,261
Reclamation 3,537
Project/pre-development costs 1,693
All-in sustaining costs $ 140,301
Silver equivalent ounces sold 5,130,133
Kensington and
Wharf silver equivalent ounces sold 3,544,140
Consolidated silver equivalent ounces sold 8,674,273
All-in sustaining costs per silver equivalent ounce $
16.17 Inventory adjustments $ (0.04 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 16.13 All-in sustaining costs per
average spot silver equivalent ounce $ 14.56
Inventory adjustments $ (0.04 )
Adjusted all-in
sustaining costs per average spot silver equivalent ounce
$ 14.52 Reconciliation
of All-in Sustaining Costs per Silver Equivalent Ounce for
Three Months Ended September 30, 2016 Silver
Gold Total In thousands except per ounce
amounts Palmarejo Rochester San
Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
21,794 $ 27,027 $ 22,536 $ 486 $ 71,843
$ 34,755 $ 26,158 $ 60,913 $ 132,756
Amortization 5,761
5,244 1,723 113 12,841 8,046
6,461 14,507 27,348
Costs applicable
to sales $ 16,033 $ 21,783 $ 20,813 $ 373 $ 59,002 $ 26,709 $
19,697 $ 46,406 $ 105,408
Silver equivalent ounces sold
1,462,401 1,868,085 1,390,552 46,069 4,767,107 8,397,467
Gold
equivalent ounces sold
30,998 29,508 60,506
Costs
applicable to sales per ounce $ 10.96 $ 11.66 $ 14.97 $ 8.10 $
12.38 $ 862 $ 668 $ 767 $ 12.55
Inventory adjustments (0.26
) (0.10 ) (0.57 ) — (0.28 ) (3 ) (109 ) (55 ) (0.56 )
Adjusted costs applicable to sales per ounce $ 10.70 $ 11.56
$ 14.40 $ 8.10
$ 12.10 $ 859 $ 559
$
712 $ 11.99
Costs applicable to sales per
average spot ounce $ 10.29 $ 11.11 $ 11.91 $ 11.62
Inventory
adjustments (0.24 ) (0.09 ) (0.27 ) (0.52 )
Adjusted costs
applicable to sales per average spot ounce $ 10.05 $ 11.02
$ 11.64 $ 11.10
Costs
applicable to sales $ 105,408
Treatment and refining
costs 761
Sustaining capital 19,762
General and
administrative 7,113
Exploration 3,706
Reclamation 4,036
Project/pre-development costs 2,133
All-in sustaining costs $ 142,919
Silver equivalent ounces sold 4,767,107
Kensington and
Wharf silver equivalent ounces sold 3,630,360
Consolidated silver equivalent ounces sold 8,397,467
All-in sustaining costs per silver equivalent ounce $
17.02 Inventory adjustments $ (0.56 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 16.46 All-in sustaining costs per
average spot silver equivalent ounce $ 15.75
Inventory adjustments $ (0.52 )
Adjusted all-in
sustaining costs per average spot silver equivalent ounce
$ 15.23 Reconciliation
of All-in Sustaining Costs per Silver Equivalent Ounce for
Three Months Ended June 30, 2016 Silver
Gold Total In thousands except per ounce
amounts Palmarejo Rochester San
Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
37,630 $ 27,158 $ 20,498 $ 365 $ 85,651
$ 32,419 $ 19,470 $ 51,889 $ 137,540
Amortization 14,765
5,437 1,853 84 22,139 9,808
5,128 14,936 37,075
Costs applicable
to sales $ 22,865 $ 21,721 $ 18,645 $ 281 $ 63,512 $ 22,611 $
14,342 $ 36,953 $ 100,465
Silver equivalent ounces sold
2,502,442 1,911,885 1,418,455 35,411 5,868,193 9,286,033
Gold
equivalent ounces sold
30,178 26,786 56,964
Costs
applicable to sales per ounce $ 9.14 $ 11.36 $ 13.14 $ 7.94 $
10.82 $ 749 $ 535 $ 649 $ 10.82
Inventory adjustments (0.12
) (0.06 ) (0.17 ) — (0.11 ) (9 ) (1 ) (5 ) (0.10 )
Adjusted costs applicable to sales per ounce $ 9.02 $ 11.30
$ 12.97 $ 7.94
$ 10.71 $ 740 $ 534
$
644 $ 10.72
Costs applicable to sales per
average spot ounce $ 8.20 $ 10.30 $ 10.00 $ 9.45
Inventory
adjustments (0.11 ) (0.06 ) (0.10 ) (0.09 )
Adjusted costs
applicable to sales per average spot ounce $ 8.09 $ 10.24
$ 9.90 $ 9.36
Costs
applicable to sales $ 100,465
Treatment and refining
costs 1,128
Sustaining capital 21,019
General and
administrative 7,400
Exploration 2,233
Reclamation 4,170
Project/pre-development costs 2,098
All-in sustaining costs $ 138,513
Silver equivalent ounces sold 5,868,193
Kensington and
Wharf silver equivalent ounces sold 3,417,840
Consolidated silver equivalent ounces sold 9,286,033
All-in sustaining costs per silver equivalent ounce $
14.92 Inventory adjustments $ (0.10 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 14.82 All-in sustaining costs per
average spot silver equivalent ounce $ 13.04
Inventory adjustments $ (0.09 )
Adjusted all-in
sustaining costs per average spot silver equivalent ounce
$ 12.95 Reconciliation
of All-in Sustaining Costs per Silver Equivalent Ounce for
Three Months Ended March 31, 2016 Silver
Gold Total In thousands except per ounce
amounts Palmarejo Rochester San
Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
28,327 $ 27,798 $ 19,251 $ 955 $ 76,331
$ 32,767 $ 19,512 $ 52,279 $ 128,610
Amortization 7,289
5,313 1,754 299 14,655 8,349
4,051 12,400 27,055
Costs applicable
to sales $ 21,038 $ 22,485 $ 17,497 $ 656 $ 61,676 $ 24,418 $
15,461 $ 39,879 $ 101,555
Silver equivalent ounces sold
1,702,290 1,779,377 1,384,391 122,694 4,988,752 8,274,952
Gold
equivalent ounces sold
31,648 23,122 54,770
Costs
applicable to sales per ounce $ 12.36 $ 12.64 $ 12.64 $ 5.35 $
12.36 $ 772 $ 669 $ 728 $ 12.27
Inventory adjustments (0.82
) (0.03 ) (0.08 ) — (0.31 ) (11 ) (2 ) (7 ) (0.23 )
Adjusted costs applicable to sales per ounce $ 11.54 $ 12.61
$ 12.56 $ 5.35
$ 12.05 $ 761 $ 667
$
721 $ 12.04
Costs applicable to sales per
average spot ounce $ 10.74 $ 11.20 $ 11.28 $ 10.34
Inventory
adjustments (0.71 ) (0.03 ) (0.28 ) (0.20 )
Adjusted costs
applicable to sales per average spot ounce $ 10.03 $ 11.17
$ 11.00 $ 10.14
Costs
applicable to sales $ 101,555
Treatment and refining
costs 1,158
Sustaining capital 16,710
General and
administrative 8,276
Exploration 1,731
Reclamation 3,759
Project/pre-development costs 1,558
All-in sustaining costs $ 134,747
Silver equivalent ounces sold 4,988,752
Kensington and
Wharf silver equivalent ounces sold 3,286,200
Consolidated silver equivalent ounces sold 8,274,952
All-in sustaining costs per silver equivalent ounce $
16.28 Inventory adjustments $ (0.23 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 16.05 All-in sustaining costs per
average spot silver equivalent ounce $ 13.71
Inventory adjustments $ (0.20 )
Adjusted all-in
sustaining costs per average spot silver equivalent ounce
$ 13.51 Reconciliation
of All-in Sustaining Costs per Silver Equivalent Ounce for
Year Ended December 31, 2015 Silver Gold
Total In thousands except per ounce amounts
Palmarejo Rochester San
Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
170,899 $ 127,900 $ 93,625 $ 9,059 $
401,483 $ 147,880 $ 68,575 $ 216,455 $ 617,938
Amortization
32,423 23,906 17,798 5,539 79,666
42,240 16,378 58,618 138,284
Costs applicable to sales $ 138,476 $ 103,994 $ 75,827 $
3,520 $ 321,817 $ 105,640 $ 52,197 $ 157,837 $ 479,654
Silver
equivalent ounces sold 9,840,705 8,377,823 5,495,369 615,022
24,328,919 36,659,759
Gold equivalent ounces sold
131,553 73,961 205,514
Costs applicable to sales per ounce $ 14.07 $
12.41 $ 13.80 $ 5.72 $ 13.23 $ 803 $ 706 $ 768 $ 13.08
Inventory
adjustments (1.04 ) (0.05 ) (0.17 ) — (0.48 ) (5 ) —
(4 ) (0.34 )
Adjusted costs applicable to sales per
ounce $ 13.03 $ 12.36 $ 13.63 $ 5.72
$ 12.75
$ 798 $ 706
$ 764 $ 12.74
Costs applicable to sales per average spot ounce $ 12.75 $
11.32 $ 12.31 $ 11.60
Inventory adjustments (0.95 ) (0.04 )
(0.44 ) (0.30 )
Adjusted costs applicable to sales per average
spot ounce $ 11.80 $ 11.28
$ 11.87 $ 11.30
Costs applicable to sales $ 479,654
Treatment and refining costs 4,801
Sustaining capital
53,362
General and administrative 32,834
Exploration
11,647
Reclamation 16,769
Project/pre-development
costs 5,674
All-in sustaining costs $
604,741 Silver equivalent ounces sold 24,328,919
Kensington and Wharf silver equivalent ounces sold
12,330,840
Consolidated silver equivalent ounces sold
36,659,759
All-in sustaining costs per silver equivalent
ounce $ 16.50 Inventory adjustments
$ (0.34 )
Adjusted all-in sustaining costs per silver equivalent
ounce $ 16.16 All-in sustaining
costs per average spot silver equivalent ounce $
14.62 Inventory adjustments $ (0.30 )
Adjusted all-in sustaining costs per average spot silver
equivalent ounce $ 14.32
Reconciliation of All-in Sustaining Costs per Silver
Equivalent Ounce for Three Months Ended December 31,
2015 Silver Gold Total In
thousands except per ounce amounts Palmarejo
Rochester San Bartolomé Endeavor
Total Kensington Wharf
Total Costs applicable to sales, including amortization
(U.S. GAAP) $ 47,207 $ 27,716 $ 24,372 $
2,579 $ 101,874 $ 33,298 $ 25,033 $ 58,331 $ 160,205
Amortization 7,426 4,944 4,311 1,519
18,200 9,503 7,246 16,749 34,949
Costs applicable to sales $ 39,781 $ 22,772 $ 20,061
$ 1,060 $ 83,674 $ 23,795 $ 17,787 $ 41,582 $ 125,256
Silver
equivalent ounces sold 2,588,185 1,820,471 1,564,155 192,768
6,165,579 9,885,699
Gold equivalent ounces sold
29,988 32,014 62,002
Costs applicable to sales per ounce $ 15.37 $
12.51 $ 12.83 $ 5.50 $ 13.57 $ 793 $ 556 $ 671 $ 12.67
Inventory
adjustments (1.89 ) (0.14 ) (0.35 ) — (0.92 ) (16 ) —
(8 ) (0.62 )
Adjusted costs applicable to sales per
ounce $ 13.48 $ 12.37 $ 12.48 $ 5.50
$ 12.65
$ 777 $ 556
$ 663 $ 12.05
Costs applicable to sales per average spot ounce $ 13.88 $
11.44 $ 12.66 $ 11.14
Inventory adjustments (1.73 ) (0.12 )
(0.87 ) (0.57 )
Adjusted costs applicable to sales per average
spot ounce $ 12.15 $ 11.32
$ 11.79 $ 10.57
Costs applicable to sales $ 125,256
Treatment and refining costs 964
Sustaining capital
16,567
General and administrative 8,855
Exploration
1,689
Reclamation 4,963
Project/pre-development costs
2,691
All-in sustaining costs $ 160,985
Silver equivalent ounces sold 6,165,579
Kensington and
Wharf silver equivalent ounces sold 3,720,120
Consolidated silver equivalent ounces sold 9,885,699
All-in sustaining costs per silver equivalent ounce $
16.28 Inventory adjustments $ (0.62 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 15.66 All-in sustaining costs per
average spot silver equivalent ounce $ 14.30
Inventory adjustments $ (0.57 )
Adjusted all-in
sustaining costs per average spot silver equivalent ounce
$ 13.73 Reconciliation
of All-in Sustaining Costs per Silver Equivalent Ounce for
2017 Guidance Silver Gold In
thousands except per ounce amounts Palmarejo
Rochester San Bartolomé Endeavor
Total Silver Kensington
Wharf Total Gold Total Combined
Costs applicable to sales, including amortization (U.S.
GAAP) $ 211,000 $ 108,380 $ 102,000 $
3,750 $ 425,130 $ 130,500 $ 83,800 $ 214,300 $
639,430
Amortization 69,200 19,860
18,500 — 107,560
29,100 11,500 40,600
148,160
Costs applicable to sales $ 141,800 $ 88,520 $
83,500 $ 3,750 $ 317,570 $ 101,400 $ 72,300 $ 173,700 $ 491,270
Silver equivalent ounces sold 14,000,000 7,680,000 5,900,000
380,000 27,960,000 40,800,000
Gold equivalent ounces sold
124,000 90,000 214,000
Costs applicable to sales per ounce guidance
$10.00 - $10.50 $11.50 - $12.00 $14.00 -
$14.50 $800 - $850 $775 - $825
Costs applicable to sales $ 491,270
Treatment and
refining costs 4,300
Sustaining capital, including capital
lease payments 88,000
General and administrative 30,000
Exploration 24,000
Reclamation 14,000
Project/pre-development costs 5,700
All-in sustaining
costs $ 657,270
Silver equivalent ounces sold 27,960,000
Kensington and Wharf silver equivalent ounces sold
12,840,000
Consolidated silver equivalent ounces sold
40,800,000
All-in sustaining costs per silver equivalent ounce
guidance $15.75 - $16.25
Reconciliation of All-in Sustaining Costs per 69:1 Spot Silver
Equivalent Ounce for 2017 Guidance Silver
Gold In thousands except per ounce amounts
Palmarejo Rochester San
Bartolomé Endeavor Total Silver
Kensington Wharf Total
Gold Total Combined Costs applicable to sales,
including amortization (U.S. GAAP) $ 211,000 $ 108,380
$ 102,000 $ 3,750 $ 425,130 $ 130,500 $
83,800 $ 214,300 $ 639,430
Amortization 69,200
19,860 18,500 —
107,560 29,100 11,500
40,600 148,160
Costs applicable to sales $
141,800 $ 88,520 $ 83,500 $ 3,750 $ 317,570 $ 101,400 $ 72,300 $
173,700 $ 491,270
Silver equivalent ounces sold 15,000,000
8,110,000 5,900,000 380,000 29,390,000 44,156,000
Gold
equivalent ounces sold
124,000 90,000
214,000
Costs applicable to
sales per ounce guidance $9.25 - $9.75 $10.75 -
$11.25 $14.00 - $14.50 $800 - $850 $775 -
$825 Costs applicable to sales $ 491,270
Treatment and refining costs 4,300
Sustaining capital,
including capital lease payments 88,000
General and
administrative 30,000
Exploration 24,000
Reclamation 14,000
Project/pre-development costs
5,700
All-in sustaining costs $ 657,270
Silver equivalent
ounces sold 29,390,000
Kensington and Wharf silver
equivalent ounces sold 14,766,000
Consolidated silver
equivalent ounces sold 44,156,000
All-in sustaining costs
per silver equivalent ounce guidance $14.50 - $15.00
Reconciliation of All-in Sustaining Costs
per Silver Equivalent Ounce for 2016 Guidance
Silver Gold In thousands except per ounce
amounts Palmarejo Rochester San
Bartolomé Endeavor Total Silver
Kensington Wharf Total
Gold Total Combined Costs applicable to sales,
including amortization (U.S. GAAP) $ 130,000 $ 120,000
$ 87,000 $ 2,500 $ 339,500 $ 137,000 $
82,000 $ 219,000 $ 558,500
Amortization 40,000
28,000 7,000 1,000
76,000 37,000 20,000
57,000 133,000
Costs applicable to sales $
90,000 $ 92,000 $ 80,000 $ 1,500 $ 263,500 $ 100,000 $ 62,000 $
162,000 $ 425,500
Silver equivalent ounces sold 9,105,000
8,430,000 5,700,000 220,000 23,455,000 36,955,000
Gold
equivalent ounces sold
125,000 100,000
225,000
Costs applicable to
sales per ounce guidance $9.75-$10.25
$10.40-$11.35 $13.50-$14.25 $775-$825
$600-$650 Costs applicable to sales $
425,500
Treatment and refining costs 4,500
Sustaining
capital, including capital lease payments 75,000
General and
administrative 30,000
Exploration 15,000
Reclamation 16,000
Project/pre-development costs
5,000
All-in sustaining costs $ 571,000
Silver equivalent
ounces sold 23,455,000
Kensington and Wharf silver
equivalent ounces sold 16,085,250
Consolidated silver
equivalent ounces sold 39,540,250
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/20170208006298/en/
Coeur Mining, Inc.Courtney Lynn, Vice
President, Investor Relations and Treasurer(312)
489-5837www.coeur.com
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