Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE: CDE) today
reported first quarter 2018 financial results as well as an
overview of key operating and strategic achievements during the
period.
Financial results for the first quarter included revenue of
$163.3 million and net income of $0.7 million. First quarter cash
flow from operating activities was $15.5 million, adjusted EBITDA1
was $49.5 million, and free cash flow1 was $(26.8) million. These
results reflect strong production and cost performance at the
Company's Palmarejo silver-gold mine in northern Mexico, including
a second consecutive quarter of costs applicable to sales ("CAS")
per average spot silver equivalent ounce ("AgEqOz")1 below $7.00.
Performance was also impacted by (i) a normalization of production
levels at the Rochester mine in Nevada, which benefited from a
temporary boost to production during the prior quarter due to
accelerated recoveries from the newly-expanded Stage IV leach pad
and from the placement of higher-grade gold ore during the second
half of 2017; (ii) planned lower grades during the quarter at the
Wharf and Kensington mines; (iii) and a $17.9 million increase in
working capital compared to year-end 2017. Free cash flow1 during
the quarter was additionally affected by capital expenditures of
$18.6 million related to the commissioning of operations at the
Company's new Silvertip underground mine in British Columbia.
Coeur achieved several important milestones during the first
quarter, which included commencing production slightly ahead of
schedule at the Silvertip mine and announcing the results of a
re-scoped mine plan and preliminary economic assessment ("PEA") for
its Rochester mine in Nevada. The PEA reflects plans to add
high-pressure grinding roll ("HPGR") technology to Rochester's
crushing circuit, potentially improving silver recovery curves and
doubling the mine's expected net asset value ("NAV") to $609
million. The Company also completed the sale of its wholly-owned
Bolivian subsidiary and the San Bartolomé mine, the result of which
is a North America-focused and U.S.-centric platform with a
significantly improved geopolitical risk profile and cost
structure. As a result of this transaction, the San Bartolomé mine
is excluded from consolidated operating statistics and financial
results for all periods presented unless otherwise noted.
Highlights
- Quarterly silver
equivalent1 production higher year-over-year -
First quarter silver equivalent1 production increased 4%
year-over-year to 8.3 million AgEqOz1 due primarily to a 31%
increase in silver production at Palmarejo, partially offset by a
14% decrease in gold production at Wharf over the same period.
Quarter-over-quarter, silver equivalent1 production declined 23%
due to temporarily lower mining rates at Palmarejo, the
normalization of production levels at Rochester and lower planned
grades at Wharf and Kensington
- Higher quarterly unit costs -
Companywide unit costs were up both quarter-over-quarter and
year-over-year despite continued strong cost performance at
Palmarejo, which delivered adjusted CAS per average spot AgEqOz1 of
$6.94 during the quarter. First quarter companywide all-in
sustaining costs ("AISC") per average spot AgEqOz1 were $14.44
compared to $12.33 in the prior quarter and $13.29 in the first
quarter of 2017. The increase was driven by higher sustaining
capital expenditures at Palmarejo and Kensington combined with
fewer silver equivalent1 ounces sold both quarter-over-quarter and
year-over-year
- Production commenced at the
high-grade Silvertip mine - Production commenced at the
high-grade Silvertip mine in early March following the successful
commissioning of mill operations. Silvertip is expected to reach
commercial production mid-year and ramp up to nameplate capacity of
1,000 metric tonnes, or about 1,100 short tons, per day in early
2019. The Company also plans to file a technical report on
Silvertip in the second half of 2018 incorporating results from
current drilling efforts
- Substantial expected impact to
Rochester based on new PEA - The results of Rochester's
re-scoped mine plan and PEA, published February 26, 2018, reflect
the strong positive impact expected from the planned addition of
HPGR technology to Rochester's crushing circuit. The introduction
of HPGR technology has the potential to increase Rochester’s silver
recoveries from 61% over 20 years to 70% in just over two years,
which could significantly improve the mine’s economics. The
expected improvements reflected in the PEA include: (i) more than a
twofold increase in NAV5% to $609 million, (ii) over a 20%
reduction in costs per AgEqOz1 for the first ten years after the
HPGR installation, (iii) a 122% increase in total pre-tax life of
mine cash flows and improved margins, and (iv) an extension of mine
life to 2038
- Continued focus on near-mine
exploration - The Company demonstrated its continued commitment
to near-mine exploration with Palmarejo, Kensington and Silvertip
accounting for approximately 67% of the $11.9 million in expensed
and capitalized exploration during the first quarter. Drilling at
Palmarejo and Kensington emphasized resource expansion at
near-mine, high-grade targets close to existing infrastructure,
while exploration at Silvertip was focused on conversion of
resources to reserves with the goal of declaring an initial reserve
estimate later this year
"We achieved several key strategic objectives in the first
quarter," said Mitchell J. Krebs, Coeur's President and Chief
Executive Officer. "The sale of our San Bartolomé mine in Bolivia
resulted in a meaningful upgrade to our portfolio given the mine's
short remaining life, higher operating costs and future estimated
closure-related costs. Combined with the successful start-up at our
new Silvertip mine in British Columbia and our announced plans to
install new HPGR technology at our Rochester mine in Nevada, which
is expected to more than double the mine's net asset value, we are
entering the second quarter with strong momentum.
"Lower production and higher costs companywide during the
quarter were in-line with our previously disclosed expectations due
to the normalization of production levels at Rochester and lower
planned grades and production at Wharf and Kensington. Our
Palmarejo mine in Mexico continued to be a stand-out performer with
unit costs below $7.00 per ounce for the second consecutive
quarter.
"As we look ahead to the remainder of year, we expect production
and free cash flows1 to rise as Silvertip ramps up and development
capital expenditures decrease. In April, Silvertip's mill
throughput has averaged over 300 metric tonnes (330 short tons) per
day and is tracking towards the Company's year-end target of 750
metric tonnes (825 short tons) per day. Important milestones,
including the completion of dewatering efforts and subsequent
increase in mining rates at Kensington's Jualin deposit as well as
work to complete an NI 43-101 technical report for Silvertip, are
on track for the second half of 2018."
Financial and Operating Highlights (Unaudited)
(Amounts in millions,
except per share amounts, gold ounces produced & sold, and
per-ounce metrics) 1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017
Revenue $ 163.3 $ 214.6 $ 159.9 $ 149.5 $
185.6
Costs Applicable to Sales $ 99.3 $ 122.0
$ 101.6 $ 102.2 $ 114.5
General and Administrative Expenses
$ 8.8 $ 9.2 $ 7.3 $ 7.0 $ 10.1
Net Income
(Loss) $ 0.7 $ 14.3 $ (11.7 ) $ (10.0 ) $ 18.3
Net Income (Loss) Per Share $ 0.00 $ 0.08 $
(0.06 ) $ (0.05 ) $ 0.10
Adjusted Net Income (Loss)1
$ 0.7 $ 14.1 $ (15.3 ) $ (1.3 ) $ 6.8
Adjusted Net
Income (Loss)1 Per Share $ 0.00 $
0.08 $ (0.09 ) $ (0.01 ) $ 0.04
Weighted Average Shares
Outstanding 187.6 187.0 179.3 179.2 183.1
EBITDA1 $ 49.4 $ 69.6 $ 38.6 $ 23.4 $
71.4
Adjusted EBITDA1 $ 49.5 $ 77.0 $
40.2 $ 31.9 $ 54.5
Cash Flow from Operating Activities
$ 15.5 $ 91.8 $ 37.3 $ 24.1 $ 43.9
Capital
Expenditures $ 42.3 $ 47.1 $ 29.0 $ 37.1 $ 23.6
Free Cash Flow1 $ (26.8 ) $ 44.8
$ 8.3 $ (13.0 ) $ 20.3
Cash, Equivalents & Short-Term
Investments $ 159.6 $ 192.0 $ 195.7 $ 201.0 $
160.6
Total Debt2 $ 414.0 $ 411.3 $
288.7 $ 284.6 $ 218.8
Average Realized Price Per Ounce –
Silver $ 16.70 $ 16.57 $ 16.86 $ 16.95 $ 17.49
Average Realized Price Per Ounce – Gold $
1,268 $ 1,224 $ 1,240 $ 1,206 $ 1,149
Silver Ounces
Produced 3.2 3.7 3.0 2.7 2.7
Gold Ounces Produced
85,383 118,756 93,293 82,819 88,218
Silver Equivalent
Ounces Produced1 8.3 10.8 8.6 7.7 8.0
Silver
Ounces Sold 3.2 3.8 2.9 2.7 3.3
Gold Ounces Sold
87,153 123,564 89,972 86,194 110,874
Silver Equivalent
Ounces Sold1 8.4 11.1 8.3 7.9 10.0
Silver
Equivalent Ounces Sold (Average Spot)1 10.1 13.2
9.7 9.0 11.1
Adjusted CAS per AgEqOz1 $
9.69 $ 9.43 $ 11.05 $ 12.02 $ 10.60
Adjusted CAS per
Average Spot AgEqOz1 $ 8.48 $ 8.35 $ 9.90
$ 10.96 $ 9.79
Adjusted CAS per AuEqOz1 $
955 $ 800 $ 843 $ 860 $ 791
Adjusted AISC per
AgEqOz1 $ 17.20 $ 14.45 $ 17.35 $ 17.81 $
14.78
Adjusted AISC per Average Spot AgEqOz1 $
14.33 $ 12.26 $ 14.79 $ 15.58 $ 13.30
Financial Results
Revenue for the first quarter was $163.3 million, down 24%
quarter-over-quarter due to lower planned production and 12%
year-over-year due to elevated sales in the first quarter of 2017
related to inventory carried over from the preceding year. Silver
sales contributed 32% of revenue during the first quarter, and gold
sales contributed 68% based on average realized prices of $16.70
and $1,268 per ounce, respectively. The Company's U.S. operations
accounted for approximately 55% of the Company's revenue during the
quarter.
Average realized gold prices during the first quarter reflect
the sale of 9,906 gold ounces at a price of $800 per ounce,
pursuant to Palmarejo's gold stream agreement.
Costs applicable to sales were $99.3 million for the quarter,
19% and 13% lower quarter-over-quarter and year-over-year,
respectively, due to lower metal sales. General and administrative
expenses were $8.8 million, 4% and 13% lower quarter-over-quarter
and year-over-year, respectively, due primarily to lower
employee-related expenses and professional service costs.
Amortization expense decreased 31% quarter-over-quarter and 21%
year-over-year to $30.5 million due primarily to lower ounces sold
during the quarter as well as higher life of mine reserves.
Quarterly interest expense, net of capitalized interest,
increased 9% from the prior quarter and 67% year-over-year to $6.0
million. This resulted from higher overall debt levels attributable
to the Company's 5.875% senior notes due 2024 as well as amounts
drawn on the Company's $200 million revolving credit facility
established in the fourth quarter of 2017.
First quarter capital expenditures increased nearly 80%
year-over-year to $42.3 million. Development capital expenditures
were largely associated with the commencement of production at
Silvertip, where pre-production operating expenses, conversion
drilling, and underground development totaled $18.6 million for the
quarter. Sustaining capital expenditures also increased as a
percentage of total capital expenditures accounting for
approximately 46% of the total compared to 34% in the prior quarter
and 38% in the first quarter of 2017. The shift was driven by
higher sustaining capital expenditures at Palmarejo and
Kensington.
Operations
Highlights of first quarter 2018 results for each of the
Company's operations are provided below.
Palmarejo, Mexico
(Dollars in millions,
except per ounce amounts) 1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017
Tons milled 359,893 389,524 413,086 335,428 360,383
Average silver grade (oz/t) 6.88 6.92 5.53 4.98 4.91
Average gold grade (oz/t) 0.10 0.10 0.08 0.08 0.09
Average recovery rate – Ag 81.4% 87.0% 83.6% 87.3%
86.5%
Average recovery rate – Au 80.4% 92.0% 83.1%
91.1% 93.7%
Silver ounces produced (000's) 2,013
2,346 1,908 1,457 1,531
Gold ounces produced 29,896
37,537 28,948 24,292 30,792
Silver equivalent ounces
produced1 (000's) 3,807 4,600 3,644 2,914
3,378
Silver ounces sold (000's) 2,031 2,343 1,794
1,484 1,965
Gold ounces sold 30,888 38,953 26,554
25,191 41,045
Silver equivalent ounces sold1
(000's) 3,884 4,681 3,387 2,996 4,427
Silver
equivalent ounces sold1 (average spot) (000's)
4,479 5,331 3,809 3,324 4,837
Metal sales
$70.0 $83.2 $60.7 $53.2 $77.7
Costs applicable to
sales $31.1 $36.0 $33.3 $33.9 $43.0
Adjusted CAS
per AgEqOz1 $8.01 $7.54 $9.76 $11.21 $9.68
Adjusted CAS per average spot AgEqOz1 $6.94
$6.64 $8.68 $10.11 $8.87
Exploration expense $4.0
$2.7 $4.5 $3.1 $1.6
Cash flow from operating activities
$27.3 $52.1 $18.5 $18.8 $50.5
Sustaining capital
expenditures (excludes capital lease payments) $9.3 $4.9
$6.5 $6.1 $5.0
Development capital expenditures $—
$2.1 $(1.0) $5.1 $1.2
Total capital
expenditures $9.3 $7.0 $5.5 $11.2 $6.2
Free
cash flow1 $18.0 $45.1 $13.0 $7.6 $44.3
- First quarter silver equivalent1
production was 3.8 million ounces, up 13% year-over-year due to
higher grades and down 17% quarter-over-quarter due to temporarily
lower mining rates
- Adjusted CAS per average spot AgEqOz1
of $6.94 for the first quarter were 5% higher quarter-over-quarter,
22% lower year-over-year and well below the full-year 2018 guidance
range of $9.25 - $9.75
- Silver and gold grades were 40% and 11%
higher, respectively, year-over-year and flat quarter-over-quarter.
Production benefited from mining of higher grade material over the
past two quarters in a faulted zone within Independencia, which the
Company had conservatively modeled. This was offset by temporarily
lower mining rates as additional ground support was installed along
the fault. Grades are expected to gradually decrease in subsequent
quarters, while mining rates are expected to return to 4,500 tons
per day
- Palmarejo began commissioning an
on-site absorption, desorption, and recovery ("ADR") plant at the
end of the quarter, which resulted in a temporary increase to
in-process inventory and lower recovery rates. The ADR plant is
expected to be fully commissioned by the end of April
- Higher sustaining capital expenditures
during the quarter reflect Palmarejo's completed transition to
underground operations and sustained production rates at
Independencia, $1.2 million spent on the replacement of surface
equipment and $1.2 million in expenditures related to Palmarejo's
new ADR plant
- As a result of the ongoing success of
Palmarejo's exploration program, drilling activity at Palmarejo and
other targets within Mexico increased during the first quarter,
with exploration expense rising 48% quarter-over-quarter to $4.0
million
- During the quarter, 9,906 ounces, or
approximately 32%, of Palmarejo's gold sales were made pursuant to
its gold stream agreement at a price of $800 per ounce. For the
full year, the Company anticipates a similar percentage of
Palmarejo's gold sales to be made under the gold stream
agreement
- Palmarejo generated $18.0 million of
free cash flow1 during the quarter, partially due to the payment of
approximately $17 million in cash income and mining taxes related
to 2017 earnings in early April 2018 rather than during the first
quarter as previously expected. Total cash income and mining tax
payments in Mexico this year, including those related to 2017
earnings, are expected to be $40 - $45 million, $30 - $35 million
of which is expected to be paid during the second quarter
- Full-year production guidance is
unchanged at 6.5 - 7.1 million ounces of silver and 110,000 -
115,000 ounces of gold. Cost guidance of CAS per AgEqOz1 is
similarly unchanged at $10.50 - $11.00 on a 60:1 silver equivalent
basis and $9.25 - $9.75 on an average spot equivalent basis
Rochester, Nevada
(Dollars in millions,
except per ounce amounts) 1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017
Ore tons placed 4,351,131 4,171,451 4,262,011
4,493,100 3,513,708
Average silver grade (oz/t) 0.54
0.50 0.53 0.53 0.58
Average gold grade (oz/t) 0.003
0.003 0.004 0.003 0.002
Silver ounces produced (000's)
1,157 1,361 1,070 1,156 1,127
Gold ounces produced
11,487 18,995 10,955 10,745 10,356
Silver equivalent
ounces produced1 (000's) 1,846 2,500 1,727
1,801 1,749
Silver ounces sold (000's) 1,119 1,457
1,050 1,135 1,289
Gold ounces sold 11,163 20,002
10,390 10,658 13,592
Silver equivalent ounces sold1
(000's) 1,789 2,658 1,674 1,774 2,104
Silver
equivalent ounces sold1 (average spot) (000's)
2,004 2,969 1,839 1,913 2,240
Metal sales
$33.5 $49.7 $31.2 $32.8 $39.0
Costs applicable to
sales $24.3 $34.0 $23.3 $24.2 $26.4
Adjusted CAS
per AgEqOz1 $13.33 $12.77 $13.69 $13.54 $12.57
Adjusted CAS per average spot AgEqOz1 $11.89
$11.37 $12.46 $12.56 $11.81
Exploration expense $—
$0.5 $0.5 $0.3 $0.1
Cash flow from operating activities
$3.4 $26.1 $1.6 $(1.1) $5.7
Sustaining capital
expenditures (excludes capital lease payments) $0.5 $0.9
$0.5 $1.1 $0.2
Development capital expenditures $2.1
$5.9 $9.2 $12.7 $10.4
Total capital
expenditures $2.6 $6.8 $9.7 $13.8 $10.6
Free cash
flow1 $0.8 $19.3 $(8.1) $(14.9) $(4.9)
- Total tons placed increased 4%
quarter-over-quarter and 24% year-over-year
- Production returned to normalized
levels during the first quarter, with silver equivalent1 production
totaling 1.8 million ounces, representing an increase of 6%
year-over-year and a decrease of 26% compared to the prior quarter.
The quarter-over-quarter decline was driven by elevated production
in the fourth quarter of 2017 resulting from accelerated recoveries
from the newly-expanded Stage IV leach pad and from the placement
of higher-grade gold ore during the second half of 2017
- First quarter adjusted CAS per average
spot AgEqOz1 of $11.89 were slightly higher quarter-over-quarter,
relatively flat year-over-year and below the full-year 2018
guidance range of $12.00 - $12.50
- First quarter free cash flow1 of $0.8
million reflected lower production and an increase in leach pad and
metal inventory of $3.7 million, partially offset by lower capital
expenditures relative to the prior quarter. Rochester is expected
to generate higher free cash flow1 during the remaining three
quarters of the year
- The upgrade of Rochester's crushing
circuit with the planned addition of HPGR technology is on-track to
begin in the fourth quarter of 2018. The project envisions the
decommissioning of Rochester's smaller crushing plant later this
year, at the same time the installation of an HPGR unit to
Rochester's larger crushing facility is expected to begin. A
gradual improvement to silver recoveries is anticipated beginning
as early as the second quarter of 2019
- Full-year 2018 production is unchanged
at 4.2 - 4.7 million ounces of silver and 45,000 - 50,000 ounces of
gold. The Company is also maintaining cost guidance of CAS per
AgEqOz1 of $13.25 - $13.75 on a 60:1 silver equivalent basis and
$12.00 - $12.50 on an average spot equivalent basis
Wharf, South Dakota
(Dollars in millions,
except per ounce amounts) 1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017
Ore tons placed 1,076,395 1,124,785 1,150,308 993,167
1,292,181
Average gold grade (oz/t) 0.022 0.029 0.029
0.024 0.027
Gold ounces produced 17,936 27,292 25,849
21,358 20,873
Silver ounces produced (000's) 12 16 15
13 20
Gold equivalent ounces produced1 18,133
27,560 26,096 21,568 21,207
Silver ounces sold (000's)
11 16 14 11 33
Gold ounces sold 17,339 28,975
23,855 21,314 24,093
Gold equivalent ounces sold1
17,522 29,256 24,085 21,495 24,636
Metal sales
$23.4 $37.3 $31.3 $27.0 $30.3
Costs applicable to
sales $15.3 $19.9 $17.3 $15.8 $16.3
Adjusted CAS per
AuEqOz1 $870 $682 $719 $737 $670
Exploration
expense $— $0.1 $0.2 $— $—
Cash flow from operating
activities $(1.4) $17.2 $15.0 $8.8 $8.6
Sustaining
capital expenditures (excludes capital lease payments)
$0.3 $1.6 $1.8 $1.5 $0.9
Development capital
expenditures $— $1.7 $1.3 $—
$—
Total capital expenditures $0.3 $3.3 $3.1 $1.5
$0.9
Free cash flow1 $(1.7) $13.9 $11.9 $7.3
$7.7
- As anticipated, first quarter gold
production declined 34% quarter-over-quarter and 14% year-over-year
to 17,936 ounces primarily due to lower grades
- While production levels are anticipated
to be higher throughout the remainder of the year, 2018 is expected
to be a lower grade year as previously disclosed
- As a result of lower grades and
production, adjusted CAS per AuEqOz1 of $870 increased
quarter-over-quarter and year-over-year to the middle of the
full-year 2018 guidance range of $850 - $900
- Negative free cash flow1 of $1.7
million for the quarter was driven by lower production and higher
unit costs related to lower planned grades as well as a $2.1
million increase in leach pad and metal inventory. For the
remainder of 2018, Wharf is expected to generate positive free cash
flow1 due to higher anticipated production
- For the full year, Coeur continues to
expect gold production of 85,000 - 90,000 ounces at CAS per AuEqOz1
of $850 - $900
Kensington, Alaska
(Dollars in millions,
except per ounce amounts) 1Q 2018 4Q 2017
3Q 2017 2Q 2017 1Q 2017
Tons milled 158,706 167,631 172,038 163,163 165,895
Average gold grade (oz/t) 0.17 0.22 0.17 0.17 0.17
Average recovery rate 94.0% 92.8% 94.1% 93.2% 94.0%
Gold ounces produced 26,064 34,932 27,541 26,424
26,197
Gold ounces sold 27,763 35,634 29,173 29,031
32,144
Metal sales $36.3 $44.3 $36.6 $35.6 $38.0
Costs applicable to sales $28.6 $32.0 $27.7 $28.0
$28.4
Adjusted CAS per AuOz1 $1,010 $896 $946
$952 $884
Exploration expense $1.6 $2.8 $3.0 $2.0
$0.8
Cash flow from operating activities $4.6 $16.8
$9.3 $7.0 $4.5
Sustaining capital expenditures (excludes capital
lease payments) $8.5 $8.0 $6.5 $3.7 $2.5
Development
capital expenditures $2.9 $4.0 $3.6
$4.9 $3.0
Total capital expenditures $11.4
$12.0 $10.1 $8.6 $5.5
Free cash flow1 $(6.8)
$4.8 $(0.8) $(1.6) $(1.0)
- First quarter gold production declined
quarter-over-quarter to 26,064 ounces due to lower planned grades
related to mine sequencing as well as maintenance-related mill
downtime. Production was flat compared to last year's first
quarter
- Development mining continued at Jualin
during the quarter, where production is expected to increase in the
second half of the year following completion of dewatering efforts.
Second quarter production at Kensington is expected to remain
consistent with first quarter levels
- Adjusted CAS per AuOz1 of $1,010
reflected lower production and grades during the quarter. Costs
were additionally impacted by higher diesel and consumables costs.
Higher grades and production levels in the second half of 2018 are
expected to result in lower unit costs
- Total exploration spend during the
quarter was $2.7 million, including $1.6 million in expensed
exploration an $1.1 million in capitalized exploration
- Lower production and higher unit costs
during the quarter resulted in negative free cash flow1 of $6.8
million
- Production and cost guidance for the
full-year remain unchanged at 115,000 - 120,000 ounces of gold at
CAS per AuOz1 of $900 - $950
Exploration
During the first quarter, the Company demonstrated its continued
commitment to its near-mine exploration program. Companywide
exploration expense totaled $6.7 million for the period and
represented a 26% increase compared to first quarter of 2017.
Capitalized exploration of $5.2 million, primarily attributable to
resource conversion efforts at Silvertip, was twice the capitalized
exploration total from the same period in 2017. Up to 19 drill rigs
were active, including seven at Palmarejo, three at Kensington and
six at Silvertip.
At Palmarejo, four drill rigs targeted expansion of the Nación
and Zapata resources throughout the quarter with three drill rigs
focused on conversion drilling at Independencia and Guadalupe.
Underground drilling also targeted definition of the more
recently-discovered Madero vein to the west of Guadalupe. Geologic
work on the Portales and Jacobo veins, east of Guadalupe, is
ongoing with further drilling planned for the second quarter.
During the quarter, exploration at Kensington continued to
target expansion of the Raven vein and lower Kensington Main Block
L. Drilling completed on lower Jualin Vein #4 early in the quarter
is reflected in Kensington's updated technical report filed April
25, 2018.
Exploration at Silvertip remained primarily focused on
conversion drilling and accounted for $3.0 million of the
companywide capitalized exploration total. Preparation of
underground access, which began in the prior quarter, enabled
drilling to quickly ramp up to four rigs in January and six by
quarter-end, with two underground and four active from the surface.
The mine's infill and expansion drill programs are on-schedule, and
results are expected to be included in an updated technical report
anticipated in the second half of 2018.
2018 Production Outlook
Coeur's production guidance remains unchanged from the guidance
originally published January 8, 2018.
Silver Gold
Zinc Lead Silver Equivalent1
(K oz) (oz) (K lbs)
(K lbs) (K oz) Palmarejo 6,500 -
7,100 110,000 - 115,000 — — 13,100 - 14,000
Rochester 4,200
- 4,700 45,000 - 50,000 — — 6,900 - 7,700
Kensington —
115,000 - 120,000 — — 6,900 - 7,200
Wharf — 85,000 - 90,000
— — 5,100 - 5,400
Silvertip 1,500 - 2,000 —
23,000 - 28,000 23,000 - 28,000 4,030 - 5,080
Total 12,200 - 13,800 355,000 - 375,000
23,000 - 28,000 23,000 - 28,000 36,030 - 39,380
Total (including discontinued operations) 12,800 -
14,400 355,000 - 375,000 23,000 - 28,000
23,000 - 28,000 36,630 - 39,980
2017 Cost Performance and 2018 Outlook
The Company's cost guidance is unchanged and spot guidance
remains based on silver-to-gold, -zinc and -lead equivalence ratios
of 75:1, 0.09:1 and 0.07:1, respectively.
Original Guidance (if changed) Current
Guidance (dollars in millions, except per ounce amounts)
60:1 Spot 60:1
Spot CAS per AgEqOz1 – Palmarejo
$10.50 - $11.00 $9.25 -$9.75
CAS per AgEqOz1
– Rochester $13.25 - $13.75 $12.00 - $12.50
CAS per
AuOz1 – Kensington $900 - $950
CAS per
AuEqOz1 – Wharf $850 - $900
CAS per
AgEqOz1 – Silvertip $15.00 - $15.50 $12.00 -
$12.50
Capital Expenditures $120 - $140
General and
Administrative Expenses $32 - $34
Exploration Expense
$20 - $25
AISC per AgEqOz1 from continuing
operations $17.50 - $18.00 $15.00 - $15.50
Financial Results and Conference Call
Coeur will host a conference call to discuss its first quarter
2018 financial results on April 26, 2018 at 11:00 a.m. Eastern
Time.
Dial-In Numbers: (855) 560-2581
(U.S.) (855) 669-9657 (Canada) (412) 542-4166
(International) Conference ID: Coeur Mining
Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Peter C.
Mitchell, Senior Vice President and Chief Financial Officer, Frank
L. Hanagarne, Jr., Senior Vice President and Chief Operating
Officer, Hans Rasmussen, Senior Vice President of Exploration, and
other members of management. A replay of the call will be available
through May 10, 2018.
Replay numbers: (877) 344-7529
(U.S.) (855) 669-9658 (Canada) (412) 317-0088
(International) Conference ID: 101 17 926
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with five mines in North America. Coeur produces
from its wholly-owned operations: the Palmarejo silver-gold complex
in Mexico, the Silvertip silver-zinc-lead mine in British Columbia,
the Rochester silver-gold mine in Nevada, the Kensington gold mine
in Alaska, and the Wharf gold mine in South Dakota. In addition,
the Company has interests in several precious metals exploration
projects throughout North America.
Cautionary Statements
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,
expenses, expectations regarding Silvertip, including but not
limited to, the timing of achieving commercial production,
declaration of mineral reserves and completion of a technical
report, grades, exploration and development efforts, payments under
the Palmarejo gold stream agreement, expectations regarding
dewatering efforts at and production from the Jualin deposit at
Kensington, expected free cash flow, throughput, inventory levels,
mining rates and recovery rates. 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
expectations regarding Silvertip including the timing of commercial
production, obtaining necessary permits, and filing a technical
report do not occur on a timely basis or at all, the risk that
anticipated production, cost, expense, and free cash flow 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, silver, zinc and lead and a sustained lower price
environment, the uncertainties inherent in Coeur's production,
exploratory and developmental activities, including risks relating
to permitting and regulatory delays, ground conditions, grade
variability, any future labor disputes or work stoppages, the
uncertainties inherent in the estimation of gold and silver
reserves, changes that could result from Coeur's future acquisition
of new mining properties or businesses, the loss of any third-party
smelter to which Coeur markets its production, 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.
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. The PEA for the
re-scoped mine plan at Rochester described in this news release is
preliminary in nature and is based in part upon inferred mineral
resources, and does not have as high a level of certainty as a plan
based solely on proven and probable mineral reserves. Inferred
mineral resources are considered too speculative geologically to
have the economic considerations applied to them that would enable
them to be considered for estimation of mineral reserves and there
is no certainty that the results from the preliminary economic
assessment will be realized. For a description of the key
assumptions, parameters and methods used to estimate mineral
reserves and resources, as well as data verification procedures and
a general discussion of the extent to which the estimates may be
affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant factors,
Canadian investors should refer to the Technical Reports for each
of Coeur's properties as filed on SEDAR at www.sedar.com.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information
determined under United States generally accepted accounting
principles (U.S. GAAP) with certain non-U.S. GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted net income
(loss), costs applicable to sales per silver equivalent ounce (or
per gold equivalent ounce or per average spot silver equivalent
ounce), adjusted costs applicable to sales per silver equivalent
ounce (or per gold equivalent ounce or per average spot silver
equivalent ounce), adjusted costs applicable to sales per silver
ounce (or per gold ounce), all-in sustaining costs, and adjusted
all-in sustaining costs. We believe that these adjusted measures
provide meaningful information to assist management, investors and
analysts in understanding our financial results and assessing our
prospects for future performance. We believe these adjusted
financial measures are important indicators of our recurring
operations because they exclude items that may not be indicative
of, or are unrelated to our core operating results, and provide a
better baseline for analyzing trends in our underlying businesses.
We believe EBITDA, adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce or per average spot silver equivalent ounce),
adjusted costs applicable to sales per silver equivalent ounce (or
per gold equivalent ounce or per average spot silver equivalent
ounce), adjusted costs applicable to sales per silver ounce (or per
gold ounce), all-in sustaining costs, and adjusted all-in
sustaining costs are important measures in assessing the Company's
overall financial performance. For additional explanation regarding
our use of non-U.S. GAAP financial measures, please refer to our
Form 10-K for the year ended December 31, 2017.
Notes
1. EBITDA, adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce or per average spot silver equivalent ounce),
adjusted costs applicable to sales per silver equivalent ounce (or
per gold equivalent ounce or per average spot silver equivalent
ounce), adjusted costs applicable to sales per silver ounce (or per
gold ounce), all-in sustaining costs, and adjusted all-in
sustaining costs are non-GAAP measures. Please see tables in the
Appendix for the reconciliation to U.S. GAAP. 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.
Silver and gold equivalence assumes a 60:1 silver-to-gold ratio,
except where noted as average spot prices. Please see the table
below for average applicable spot prices and corresponding ratios.
Silver and zinc equivalence assumes a 0.06:1 silver-to-zinc ratio.
Silver and lead equivalence assumes a 0.05:1 silver-to-lead ratio.
2. Includes capital leases. Net of debt issuance costs and premium
received.
Average Spot Prices
1Q
2018 4Q 2017 3Q 2017 2Q
2017 1Q 2017 Average Silver Spot Price Per
Ounce $ 16.77 $ 16.73 $ 16.84 $ 17.21 $ 17.42
Average Gold Spot Price Per Ounce $ 1,329 $
1,275 $ 1,278 $ 1,257 $ 1,219
Average Silver to Gold Spot
Equivalence 79:1 76:1 76:1 73:1 70:1
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three months ended March 31, 2018
2017 In thousands, except share data Revenue $
163,267 $ 185,554 COSTS AND EXPENSES Costs applicable to sales(1)
99,340 114,490 Amortization 30,777 38,693 General and
administrative 8,804 10,125 Exploration 6,683 5,252
Pre-development, reclamation, and other 4,225 3,837
Total costs and expenses 149,829 172,397 OTHER INCOME (EXPENSE),
NET Fair value adjustments, net 4,987 (1,200 ) Interest expense,
net of capitalized interest (5,965 ) (3,579 ) Other, net 180
20,799 Total other income (expense), net (798 ) 16,020
Income (loss) before income and mining taxes 12,640 29,177
Income and mining tax (expense) benefit (11,949 ) (10,878 ) Income
(loss) from continuing operations $ 691 $ 18,299 Income (loss) from
discontinued operations 550 364 NET INCOME (LOSS) $
1,241 $ 18,663 OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Unrealized gain (loss) on debt and equity securities (278 ) (2,182
) Reclassification adjustments for impairment of equity securities
— 121 Reclassification adjustments for realized (gain) loss on sale
of equity securities — 1,471 Other comprehensive
income (loss) (278 ) (590 ) COMPREHENSIVE INCOME (LOSS) $ 963
$ 18,073 NET INCOME (LOSS) PER SHARE Basic
income (loss) per share: Net income (loss) from continuing
operations $ 0.00 $ 0.10 Net income (loss) from discontinued
operations 0.00 0.00 Basic(2) $ 0.01 $ 0.10
Diluted income (loss) per share: Net income (loss) from
continuing operations $ 0.00 $ 0.10 Net income (loss) from
discontinued operations 0.00 0.00 Diluted(2) $ 0.01
$ 0.10 (1) Excludes amortization.
(2) Due to rounding, the sum of net income
per share from continuing operations and discontinued operations
may not equal net income per share.
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (UNAUDITED)
Three months ended March 31, 2018
2017 In thousands CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)
$ 1,241 $ 18,663 (Income) loss from discontinued operations (550 )
(364 ) Adjustments: Amortization 30,777 38,693 Accretion 3,318
2,240 Deferred taxes 454 2,584 Fair value adjustments, net (4,987 )
1,200 Stock-based compensation 2,786 3,307 Gain on sale of the
Joaquin project — (21,138 ) Other 401 (1,895 ) Changes in operating
assets and liabilities: Receivables (1,691 ) 5,680 Prepaid expenses
and other current assets (5,635 ) (4,906 ) Inventory and ore on
leach pads (8,708 ) 15,171 Accounts payable and accrued liabilities
(1,865 ) (15,299 ) CASH PROVIDED BY OPERATING ACTIVITIES OF
CONTINUING OPERATIONS 15,541 43,936
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES OF DISCONTINUED OPERATIONS
(2,690 ) 11,335 CASH PROVIDED BY OPERATING ACTIVITIES 12,851
55,271 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures
(42,345 ) (23,591 ) Proceeds from the sale of assets 60 15,019
Purchase of investments (361 ) (1,016 ) Sale of investments 1,619
10,020 Other (65 ) (14 ) CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES OF CONTINUING OPERATIONS (41,092 ) 418 CASH
USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS (28,470 )
(388 ) CASH USED IN INVESTING ACTIVITIES (69,562 ) 30 CASH FLOWS
FROM FINANCING ACTIVITIES: Issuance of notes and bank borrowings,
net of issuance costs 15,000 — Payments on debt, capital leases,
and associated costs (18,449 ) (3,206 ) Other (4,606 )
(3,247 ) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF
CONTINUING OPERATIONS (8,055 ) (6,453 ) CASH USED IN FINANCING
ACTIVITIES OF DISCONTINUED OPERATIONS (22 ) (20 ) CASH PROVIDED BY
(USED IN) FINANCING ACTIVITIES (8,077 ) (6,473 ) Effect of exchange
rate changes on cash and cash equivalents 557 555
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED
CASH (64,231 ) 49,383 Less net cash provided by (used in)
discontinued operations(1) (32,930 ) 5,527 (31,301 )
43,856 Cash, cash equivalents and restricted cash at
beginning of period 203,402 126,601 Cash, cash
equivalents and restricted cash at end of period $ 172,101
$ 170,457
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
March 31, 2018 (unaudited) December 31, 2017
ASSETS In thousands, except share data CURRENT ASSETS
Cash and cash equivalents $ 159,643 $ 192,032 Receivables 35,864
19,069 Inventory 61,723 58,230 Ore on leach pads 75,584 73,752
Prepaid expenses and other 18,203 15,053 Assets held for sale —
91,421 351,017 449,557 NON-CURRENT ASSETS Property,
plant and equipment, net 266,157 254,737 Mining properties, net
843,821 829,569 Ore on leach pads 67,430 65,393 Restricted assets
22,116 20,847 Equity and debt securities 37,317 34,837 Receivables
55,428 28,750 Other 18,649 17,485 TOTAL ASSETS $
1,661,935 $ 1,701,175
LIABILITIES AND
STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $
44,864 $ 48,592 Accrued liabilities and other 105,149 94,930 Debt
17,040 30,753 Reclamation 3,777 3,777 Liabilities held for sale —
50,677 170,830 228,729 NON-CURRENT LIABILITIES Debt
396,984 380,569 Reclamation 119,154 117,055 Deferred tax
liabilities 105,224 105,148 Other long-term liabilities 55,432
54,697 676,794 657,469 STOCKHOLDERS’ EQUITY Common
stock, par value $0.01 per share; authorized 300,000,000 shares,
186,176,237 issued and outstanding at March 31, 2018 and
185,637,724 at December 31, 2017 1,862 1,856 Additional paid-in
capital 3,355,710 3,357,345 Accumulated other comprehensive income
(loss) (363 ) 2,519 Accumulated deficit (2,542,898 ) (2,546,743 )
814,311 814,977 TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY $ 1,661,935 $ 1,701,175
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
LTM 1Q
2018 1Q 2018 4Q 2017 3Q 2017 2Q
2017 1Q 2017 LTM 1Q 2017 Net income (loss) $
(18,741 ) $ 1,241 $ 7,625 $ (16,652 ) $ (10,955 ) $ 18,663 $ 94,411
(Income) loss from discontinued operations, net of tax 12,058 (550
) 6,724 4,924 960 (364 ) (32,036 ) Interest expense, net of
capitalized interest 18,826 5,965 5,522 3,595 3,744 3,579 29,358
Income tax provision (benefit) 30,069 11,949 4,957 14,289 (1,126 )
10,878 (23,629 ) Amortization 138,633 30,777 44,722
32,401 30,733 38,693 129,012
EBITDA 180,845 49,382 69,550 38,557 23,356 71,449 197,116
Fair value adjustments, net (5,323 ) (4,987 ) — — (336 ) 1,200
4,086 Impairment of equity and debt securities 305 — — — 305 121
824 Foreign exchange (gain) loss 595 670 672 39 (786 ) (1,206 )
9,936 Gain on sale of Joaquin project — — — — — (21,138 ) (21,138 )
(Gain) loss on sale of assets and securities (1,491 ) 574 499
(2,051 ) (513 ) 2,066 (8,183 ) Gain on repurchase of Rochester
royalty (2,332 ) — — — (2,332 ) — — Loss on debt extinguishment
9,342 — — — 9,342 — 21,365 Transaction costs 3,847 90 2,938 819 — —
819 Asset retirement obligation accretion 9,536 2,669 2,475 2,223
2,169 2,116 7,585 Inventory adjustments and write-downs 3,066
1,126 885 659 715 (94 ) 4,683
Adjusted EBITDA $ 198,390 $ 49,524 $
77,019 $ 40,246 $ 31,920 $
54,514 $ 217,093
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share amounts)
1Q
2018 4Q 2017 3Q 2017 2Q 2017 1Q
2017 Net income (loss) $ 1,241 $ 7,625 $ (16,652 ) $ (10,955 )
$ 18,663 (Income) loss from discontinued operations, net of tax
(550 ) 6,724 4,924 960 (364 ) Fair value adjustments, net (4,987 )
— — (336 ) 1,200 Impairment of equity and debt securities — — — 305
121 Gain on sale of Joaquin project — — — — (21,138 ) (Gain) loss
on sale of assets and securities 574 499 (2,051 ) (513 ) 2,066 Gain
on repurchase of Rochester royalty — — — (2,332 ) — (Gain) loss on
debt extinguishment — — — 9,342 — Transaction costs 90 2,938 819 —
— Foreign exchange loss (gain) 4,312 (3,643 ) (1,392 ) 2,186 4,411
Tax effect of adjustments(1) — — (991 ) —
1,807
Adjusted net income (loss) $ 680 $
14,143 $ (15,343 ) $ (1,343 ) $ 6,766
Adjusted net income (loss) per share - Basic $ 0.00 $ 0.08 $
(0.09 ) $ (0.01 ) $ 0.04
Adjusted net income (loss) per share -
Diluted $ 0.00 $ 0.08 $ (0.09 ) $ (0.01 ) $ 0.04
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
1Q 2018 4Q 2017 3Q
2017 2Q 2017 1Q 2017 Cash flow from continuing
operations $ 15,541 $ 91,811 $ 37,308 $ 24,103 $ 43,938 Capital
expenditures from continuing operations 42,345 47,054
28,982 37,107 23,591 Free cash flow (26,804 ) 44,757
8,326 (13,004 ) 20,347
Reconciliation of All-in Sustaining Costs per Silver Equivalent
Ounce for Three Months Ended March 31, 2018
Silver Gold Total In thousands except per
ounce amounts Palmarejo Rochester
Total Kensington Wharf
Total Costs applicable to sales, including amortization
(U.S. GAAP) $ 47,421 $ 29,136 $ 76,557 $ 35,347
$ 17,966 $ 53,313 $ 129,870
Amortization
16,325 4,831 21,156 6,717 2,657
9,374 30,530
Costs applicable to sales $
31,096 $ 24,305 $ 55,401 $ 28,630 $ 15,309 $ 43,939 $ 99,340
Silver equivalent ounces sold 3,883,983 1,789,007 5,672,990
8,390,090
Gold equivalent ounces sold
27,763 17,522 45,285
Costs
applicable to sales per ounce $ 8.01 $ 13.59 $ 9.77 $ 1,031 $
874 $ 970 $ 11.84
Inventory adjustments — (0.26 )
(0.08 ) (21 ) (4 ) (15 ) (0.13 )
Adjusted costs applicable to
sales per ounce $ 8.01 $ 13.33
$ 9.69 $
1,010 $ 870
$ 955 $ 11.71
Costs
applicable to sales per average spot ounce $ 6.94 $ 12.13 $
8.55 $ 9.87
Inventory adjustments — (0.24 ) (0.07 )
(0.11 )
Adjusted costs applicable to sales per average spot
ounce $ 6.94 $ 11.89
$ 8.48 $ 9.76
Costs applicable to sales $ 99,340
Treatment and
refining costs 1,195
Sustaining capital 23,389
General and administrative 8,804
Exploration 6,683
Reclamation 4,532
Project/pre-development costs 1,421
All-in sustaining costs $ 145,364
Silver equivalent ounces sold 5,672,990
Kensington and
Wharf silver equivalent ounces sold 2,717,100
Consolidated silver equivalent ounces sold 8,390,090
All-in sustaining costs per silver equivalent ounce $
17.33 Inventory adjustments $ (0.13 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 17.20 Consolidated silver
equivalent ounces sold (average spot) 10,066,759
All-in sustaining costs per average spot silver equivalent
ounce $ 14.44 Inventory adjustments
$ (0.11 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 14.33
Reconciliation of All-in Sustaining Costs
per Silver Equivalent Ounce for Three Months Ended December
31, 2017 Silver Gold Total In
thousands except per ounce amounts Palmarejo
Rochester Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
58,775 $ 41,006 $ — $ 99,781 $ 42,640 $ 24,033
$ 66,673 $ 166,454
Amortization 22,749 6,960
— 29,709 10,633 4,129 14,762
44,471
Costs applicable to sales $ 36,026 $
34,046 $ — $ 70,072 $ 32,007 $ 19,904 $ 51,911 $ 121,983
Silver
equivalent ounces sold 4,680,802 2,657,975 — 7,338,777
11,232,057
Gold equivalent ounces sold
35,633 29,255 64,888
Costs
applicable to sales per ounce $ 7.70 $ 12.81 $ — $ 9.55 $ 898 $
680 $ 800 $ 10.86
Inventory adjustments (0.16 ) (0.04 ) —
(0.12 ) (2 ) 2 — (0.08 )
Adjusted costs
applicable to sales per ounce $ 7.54 $ 12.77 $ —
$
9.43 $ 896 $ 682
$ 800 $ 10.78
Costs applicable to sales per average spot ounce $
6.78 $ 11.41 $ 8.45 $ 9.21
Inventory adjustments (0.14 )
(0.04 ) (0.10 ) (0.07 )
Adjusted costs applicable to sales per
average spot ounce $ 6.64 $ 11.37
$ 8.35 $
9.14
Costs applicable to sales $ 121,983
Treatment and refining costs 1,600
Sustaining capital
18,520
General and administrative 9,120
Exploration
7,455
Reclamation 4,075
Project/pre-development costs
578
All-in sustaining costs $ 163,331
Silver equivalent ounces sold 7,338,777
Kensington and
Wharf silver equivalent ounces sold 3,893,280
Consolidated silver equivalent ounces sold 11,232,057
All-in sustaining costs per silver equivalent ounce $
14.53 Inventory adjustments $ (0.08 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 14.45 Consolidated silver
equivalent ounces sold (average spot) 13,246,634
All-in sustaining costs per average spot silver equivalent
ounce $ 12.33 Inventory adjustments
$ (0.07 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 12.26
Reconciliation of All-in Sustaining Costs
per Silver Equivalent Ounce for Three Months Ended September
30, 2017 Silver Gold Total In
thousands except per ounce amounts Palmarejo
Rochester Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
49,669 $ 27,866 $ 59 $ 77,594 $ 35,522 $
20,553 $ 56,075 $ 133,669
Amortization 16,414
4,591 20 21,025 7,864 3,223
11,087 32,112
Costs applicable to sales $
33,255 $ 23,275 $ 39 $ 56,569 $ 27,658 $ 17,330 $ 44,988 $ 101,557
Silver equivalent ounces sold 3,386,963 1,673,704 8,027
5,068,694 8,264,174
Gold equivalent ounces sold
29,173 24,085 53,258
Costs applicable to sales per ounce $ 9.82 $ 13.91 $
4.86 $ 11.16 $ 948 $ 720 $ 845 $ 12.29
Inventory adjustments
(0.06 ) (0.22 ) — (0.11 ) (2 ) (1 ) (2 ) (0.08 )
Adjusted
costs applicable to sales per ounce $ 9.76 $ 13.69 $ 4.86
$ 11.05 $ 946 $ 719
$ 843 $
12.21
Costs applicable to sales per average spot
ounce $ 8.73 $ 12.66 $ 10.00 $ 10.47
Inventory
adjustments (0.05 ) (0.20 ) (0.10 ) (0.07 )
Adjusted costs
applicable to sales per average spot ounce $ 8.68 $ 12.46
$ 9.90 $ 10.40
Costs
applicable to sales $ 101,557
Treatment and refining
costs 1,408
Sustaining capital 18,126
General and
administrative 7,345
Exploration 9,792
Reclamation 3,915
Project/pre-development costs 1,979
All-in sustaining costs $ 144,122
Silver equivalent ounces sold 5,068,694
Kensington and
Wharf silver equivalent ounces sold 3,195,480
Consolidated silver equivalent ounces sold 8,264,174
All-in sustaining costs per silver equivalent ounce $
17.43 Inventory adjustments $ (0.08 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 17.35 Consolidated silver
equivalent ounces sold (average spot) 9,698,654
All-in sustaining costs per average spot silver equivalent
ounce $ 14.86 Inventory adjustments
$ (0.07 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 14.79
Reconciliation of All-in Sustaining Costs
per Silver Equivalent Ounce for Three Months Ended June 30,
2017 Silver Gold Total In
thousands except per ounce amounts Palmarejo
Rochester Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
48,325 $ 29,099 $ 586 $ 78,010 $ 36,335 $
18,317 $ 54,652 $ 132,662
Amortization 14,431
4,938 168 19,537 8,347 2,549
10,896 30,433
Costs applicable to sales $
33,894 $ 24,161 $ 418 $ 58,473 $ 27,988 $ 15,768 $ 43,756 $ 102,229
Silver equivalent ounces sold 2,995,623 1,774,000 59,234
4,828,857 7,860,417
Gold equivalent ounces sold
29,031 21,495 50,526
Costs applicable to sales per ounce $ 11.31 $ 13.62 $
7.06 $ 12.11 $ 964 $ 734 $ 866 $ 13.01
Inventory adjustments
(0.10 ) (0.08 ) — (0.09 ) (12 ) 3 (6 ) (0.09 )
Adjusted costs applicable to sales per ounce $ 11.21 $ 13.54
$ 7.06
$ 12.02 $ 952 $ 737
$ 860
$ 12.92
Costs applicable to sales per average spot
ounce $ 10.20 $ 12.63 $ 11.04 $ 11.38
Inventory
adjustments (0.09 ) (0.07 ) (0.08 ) (0.08 )
Adjusted costs
applicable to sales per average spot ounce $ 10.11 $ 12.56
$ 10.96 $ 11.30
Costs
applicable to sales $ 102,229
Treatment and refining
costs 1,288
Sustaining capital 17,173
General and
administrative 7,025
Exploration 7,813
Reclamation 3,581
Project/pre-development costs 1,677
All-in sustaining costs $ 140,786
Silver equivalent ounces sold 4,828,857
Kensington and
Wharf silver equivalent ounces sold 3,031,560
Consolidated silver equivalent ounces sold 7,860,417
All-in sustaining costs per silver equivalent ounce $
17.90 Inventory adjustments $ (0.09 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 17.81 Consolidated silver
equivalent ounces sold (average spot) 8,990,166
All-in sustaining costs per average spot silver equivalent
ounce $ 15.66 Inventory adjustments
$ (0.08 )
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 15.58
Reconciliation of All-in Sustaining Costs
per Silver Equivalent Ounce for Three Months Ended March 31,
2017 Silver Gold Total In
thousands except per ounce amounts Palmarejo
Rochester Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
63,151 $ 32,255 $ 400 $ 95,806 $ 37,621 $
19,431 $ 57,052 $ 152,858
Amortization 20,150
5,816 113 26,079 9,178 3,111
12,289 38,368
Costs applicable to sales $
43,001 $ 26,439 $ 287 $ 69,727 $ 28,443 $ 16,320 $ 44,763 $ 114,490
Silver equivalent ounces sold 4,427,346 2,104,209 39,765
6,571,320 9,978,120
Gold equivalent ounces sold
32,144 24,636 56,780
Costs applicable to sales per ounce $ 9.71 $ 12.56 $
7.22 $ 10.61 $ 885 $ 662 $ 788 $ 11.47
Inventory adjustments
(0.03 ) 0.01 — (0.01 ) (1 ) 8 3 (0.01 )
Adjusted costs applicable to sales per ounce $ 9.68 $ 12.57
$ 7.22
$ 10.60 $ 884 $ 670
$ 791
$ 11.46
Costs applicable to sales per average spot
ounce $ 8.89 $ 11.80 $ 9.80 $ 10.33
Inventory
adjustments (0.02 ) 0.01 (0.01 ) 0.01
Adjusted
costs applicable to sales per average spot ounce $ 8.87 $ 11.81
$ 9.79 $ 10.34
Costs
applicable to sales $ 114,490
Treatment and refining
costs 1,616
Sustaining capital 11,191
General and
administrative 10,125
Exploration 5,252
Reclamation 3,338
Project/pre-development costs 1,419
All-in sustaining costs $ 147,431
Silver equivalent ounces sold 6,571,320
Kensington and
Wharf silver equivalent ounces sold 3,406,800
Consolidated silver equivalent ounces sold 9,978,120
All-in sustaining costs per silver equivalent ounce $
14.77 Inventory adjustments $ 0.01
Adjusted all-in sustaining costs per silver equivalent ounce
$ 14.78 Consolidated silver
equivalent ounces sold (average spot) 11,093,378
All-in sustaining costs per average spot silver equivalent
ounce $ 13.29 Inventory adjustments
$ 0.01
Adjusted all-in sustaining costs per average spot
silver equivalent ounce $ 13.30
Reconciliation of All-in Sustaining Costs
per 60:1 Silver Equivalent Ounce for 2018 Guidance
Silver Gold In thousands except per
ounce amounts Palmarejo Rochester
Silvertip Total Silver
Kensington Wharf Total Gold
Total Combined Costs applicable to sales,
including amortization (U.S. GAAP) $ 208,000 $ 116,300
$ 88,000 $ 412,300 $ 146,100 $ 89,700 $
235,800 $ 648,100
Amortization 63,300 18,900
20,000 102,200 40,400
12,100 52,500 154,700
Costs applicable to sales $ 144,700 $ 97,400 $ 68,000 $
310,100 $ 105,700 $ 77,600 $ 183,300 $ 493,400
Silver equivalent
ounces sold 13,700,000 7,300,000 4,500,000 25,500,000
37,800,000
Gold equivalent ounces sold
117,500 87,500
205,000
Costs applicable to
sales per ounce $10.50 - $11.00 $13.25 - $13.75
$15.00 - $15.50 $900 - $950 $850 - $900
Costs applicable to sales $ 493,400
Treatment and
refining costs 12,000
Sustaining capital, including capital
lease payments 100,000
General and administrative 33,000
Exploration 22,000
Reclamation 15,700
Project/pre-development costs 2,900
All-in sustaining
costs $ 679,000
Silver equivalent ounces sold 25,500,000
Kensington and Wharf silver equivalent ounces sold
12,300,000
Consolidated silver equivalent ounces sold
37,800,000
All-in sustaining costs per silver equivalent
ounce $17.50 - $18.00
Reconciliation of All-in Sustaining Costs per Spot Silver
Equivalent Ounce for 2018 Guidance Silver
Gold In thousands except per ounce amounts
Palmarejo Rochester Silvertip
Total Silver Kensington
Wharf Total Gold Total Combined
Costs applicable to sales, including amortization (U.S.
GAAP) $ 208,000 $ 116,300 $ 88,000 $
412,300 $ 146,100 $ 89,700 $ 235,800 $ 648,100
Amortization 63,300 18,900
20,000 102,200 40,400
12,100 52,500 154,700
Costs
applicable to sales $ 144,700 $ 97,400 $ 68,000 $ 310,100 $
105,700 $ 77,600 $ 183,300 $ 493,400
Silver equivalent ounces
sold 15,387,500 8,012,500 5,750,000 29,150,000 44,525,000
Gold equivalent ounces sold
117,500 87,500
205,000
Costs applicable to sales
per ounce $9.25 - $9.75 $12.00 - $12.50 $12.00
- $12.50 $900 - $950 $850 - $900 Costs
applicable to sales $ 493,400
Treatment and refining
costs 12,000
Sustaining capital, including capital lease
payments 100,000
General and administrative 33,000
Exploration 22,000
Reclamation 15,700
Project/pre-development costs 2,900
All-in sustaining
costs $ 679,000
Silver equivalent ounces sold 29,150,000
Kensington and Wharf silver equivalent ounces sold
15,375,000
Consolidated silver equivalent ounces sold
44,525,000
All-in sustaining costs per silver equivalent
ounce $15.00 - $15.50
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180425006736/en/
Coeur Mining, Inc.Courtney Lynn, (312) 489-5800Vice President,
Investor Relations and Treasurerwww.coeur.com
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Jul 2023 to Jul 2024