Provides Full-Year 2021 Guidance
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported fourth quarter 2020 financial results, including revenue
of $228.3 million, cash flow from operating activities of $67.3
million and GAAP net income from continuing operations of $11.9
million, or $0.05 per share. On an adjusted basis1, the Company
reported EBITDA of $84.0 million, cash flow from operating
activities prior to changes in working capital of $58.5 million and
net income from continuing operations of $19.1 million, or $0.08
per share.
For the full year, Coeur reported revenue of $785.5 million,
cash flow from operating activities of $148.7 million and GAAP net
income from continuing operations of $25.6 million, or $0.11 per
share. On an adjusted basis1, the Company reported EBITDA of $263.4
million, cash flow from operating activities prior to changes in
working capital of $162.4 million and net income from continuing
operations of $59.0 million, or $0.24 per share.
Key Highlights
- Strong second half drove solid full-year 2020 financial
results - Revenue, operating cash flow and adjusted EBITDA1
increased 10%, 62% and 51%, respectively, in 2020. Additionally,
the Company generated $49.4 million of free cash flow1 during the
year. These notable year-over-year improvements reflect strong
operational performance and the benefit of higher precious metals
prices during the second half of 2020
- Solid production in-line with full-year guidance ranges
- Coeur successfully achieved its consolidated and site-level
production guidance for both gold and silver. Gold production in
the fourth quarter remained strong at 96,377 ounces, bringing the
full-year total to 355,678 ounces. Silver production increased 11%
quarter-over-quarter to approximately 2.8 million ounces, largely
due to a 38% improvement at Rochester, which helped to drive
full-year production to roughly 9.7 million ounces
- Maintained cost and capital discipline - Substantially
all of the Company’s site-level unit costs were below or within
full-year guidance ranges, reflecting prudent cost management
during 2020. Additionally, consolidated figures for capital
expenditures, exploration, and general and administrative expenses
were also below or within full-year guidance ranges
- Rochester expansion project expected to reposition operation
as cornerstone asset - Late in the fourth quarter, Coeur
published an updated technical report for its Rochester mine in
Nevada which reflects significant reserve growth and the benefits
of a larger-scale expansion project. The 18-year, reserve-based
mine plan has an expected after-tax net asset value of $634 million
with an anticipated internal rate of return of 31%
- Largest exploration program in Company history led to strong
reserve and resource growth - The Company completed the largest
exploration program in its history during 2020, increasing its
investment by 68% to $50.6 million and drilling approximately
783,200 feet (238,700 meters). Proven and probable gold and silver
reserves increased 22% and 42%, respectively, while measured and
indicated resources were higher across all metals for the second
consecutive year. Additionally, strong drilling results at
Silvertip helped to significantly expand zinc and lead resources,
marking the largest and most successful exploration program in the
history of the project
- Continued enhancing balance sheet and increasing financial
flexibility - Coeur ended the year with $92.8 million of cash
and cash equivalents, 20% and 67% higher quarter-over-quarter and
year-over-year, respectively. The Company also increased the
aggregate capacity of its senior secured revolving credit facility
(“RCF”) from $250.0 million to $300.0 million, and repaid the
remaining outstanding borrowings under the facility. Total debt2 at
the end of the year was $275.5 million, compared to $295.5 million
at the end of 2019
“I’m extremely proud of how our team responded to the unforeseen
challenges in 2020. Their tireless efforts and collaboration helped
protect the health and safety of our workforce, their families and
the communities where we operate, while also minimizing disruptions
to our business,” said Mitchell J. Krebs, President and Chief
Executive Officer. “Our strong culture allowed us to effectively
navigate COVID-19 while also achieving several important strategic
objectives during the year.”
Mr. Krebs continued, “We generated $49.4 million of free cash
flow1 during 2020 due to a combination of higher gold and silver
prices and strong operational performances at our Palmarejo, Wharf
and Kensington mines. We also kicked off a major expansion of our
Rochester mine in Nevada, which we expect to be largely completed
by late next year and reposition the operation as a strong,
consistent, and long-term source of cash flow.”
“In addition to strong financial and operational performance, we
also successfully delivered on the largest exploration program in
our history, which helped drive 22% and 42% increases in our gold
and silver reserves, respectively. Notably, 2020 represents the
largest level of total reserves in Coeur’s history. We plan to
increase our exploration investment again this year with the goals
of further extending our mine lives, generating more new
discoveries and driving higher returns on invested capital in
coming years.”
“We believe our strategy of safely and responsibly discovering,
developing, and operating a balanced portfolio of North
American-based precious metals assets will create long-term value
for our stockholders. We look forward to delivering on our key
objectives this year that can maximize cash flow, returns and net
asset value, while also continuing to enhance our culture and
peer-leading environmental, social and governance profile,”
concluded Mr. Krebs.
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold/silver ounces produced & sold, and per-ounce
metrics)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Gold Sales
$
584.6
$
162.0
$
167.1
$
127.9
$
127.6
$
493.3
$
134.3
Silver Sales
$
200.2
$
66.4
$
62.6
$
26.3
$
44.9
$
191.5
$
54.8
Consolidated Revenue
$
785.5
$
228.3
$
229.7
$
154.2
$
173.2
$
711.5
$
195.0
Costs Applicable to Sales3
$
440.3
$
118.6
$
112.8
$
90.0
$
118.9
$
551.2
$
146.6
General and Administrative
Expenses
$
33.7
$
8.4
$
7.8
$
8.6
$
8.9
$
34.5
$
7.6
Net Income (Loss)
$
25.6
$
11.9
$
26.9
$
(1.2
)
$
(11.9
)
$
(346.9
)
$
(270.9
)
Net Income (Loss) Per Share
$
0.11
$
0.05
$
0.11
$
(0.01
)
$
(0.05
)
$
(1.59
)
$
(1.13
)
Adjusted Net Income (Loss)1
$
59.0
$
19.1
$
38.2
$
2.6
$
(0.9
)
$
(54.6
)
$
(3.3
)
Adjusted Net Income (Loss)1 Per
Share
$
0.24
$
0.08
$
0.16
$
0.01
$
—
$
(0.25
)
$
(0.01
)
Weighted Average Shares
Outstanding
242.5
244.3
243.8
240.9
240.3
218.8
238.7
EBITDA1
$
214.8
$
76.7
$
77.3
$
35.3
$
25.5
$
(154.4
)
$
(214.5
)
Adjusted EBITDA1
$
263.4
$
84.0
$
90.8
$
42.2
$
46.5
$
173.9
$
59.8
Cash Flow from Operating
Activities
$
148.7
$
67.3
$
79.5
$
9.9
$
(8.0
)
$
91.9
$
39.3
Capital Expenditures
$
99.3
$
37.4
$
23.0
$
16.7
$
22.2
$
99.8
$
21.0
Free Cash Flow1
$
49.4
$
29.8
$
56.5
$
(6.7
)
$
(30.2
)
$
(7.9
)
$
18.4
Cash, Equivalents & Short-Term
Investments
$
92.8
$
92.8
$
77.1
$
70.9
$
52.9
$
55.6
$
55.6
Total Debt2
$
275.5
$
275.5
$
301.1
$
348.6
$
343.1
$
295.5
$
295.5
Average Realized Price Per Ounce –
Gold
$
1,641
$
1,663
$
1,754
$
1,641
$
1,490
$
1,342
$
1,407
Average Realized Price Per Ounce –
Silver
$
20.79
$
24.21
$
24.15
$
16.25
$
16.63
$
16.07
$
16.99
Gold Ounces Produced
355,678
96,377
95,995
78,229
85,077
359,418
94,716
Silver Ounces Produced
9.7
2.8
2.6
1.6
2.7
11.7
3.1
Gold Ounces Sold
356,251
97,400
95,283
77,933
85,635
367,650
95,532
Silver Ounces Sold
9.6
2.7
2.6
1.6
2.7
11.9
3.3
Financial Results
Fourth quarter 2020 revenue totaled $228.3 million compared to
$229.7 million in the prior period and $195.0 million in the fourth
quarter of 2019. The Company’s gold production remained consistent
quarter-over-quarter at 96,377 ounces, while silver production
increased 11% to approximately 2.8 million ounces. Gold and silver
sales during the quarter totaled 97,400 and 2.7 million ounces,
respectively, slightly higher than the prior period.
The Company generated $785.5 million in revenue during 2020,
representing a 10% increase year-over-year. Full-year gold and
silver production totaled 355,678 and approximately 9.7 million
ounces, respectively, compared to 359,418 ounces of gold and
approximately 11.7 million ounces of silver in 2019. Metal sales in
2020 included 356,251 and 9.6 million ounces of gold and silver,
respectively.
Average realized gold and silver prices for the quarter were
$1,663 and $24.21 per ounce, respectively, compared to $1,754 and
$24.15 per ounce in the prior period. Gold and silver sales
accounted for 71% and 29% of fourth quarter revenue, respectively.
The Company’s U.S. operations accounted for approximately 59% of
fourth quarter revenue, down from approximately 64% in the prior
period.
For the full year, average realized gold and silver prices
increased 22% and 29%, respectively, to $1,641 and $20.79 per
ounce. Gold and silver sales contributed to 74% and 25% of revenue
in 2020, respectively. Approximately 63% of metal sales came from
Coeur’s U.S. operations in 2020, up from approximately 58% in
2019.
Costs applicable to sales3 totaled $118.6 million and $440.3
million for the fourth quarter and full year, respectively,
compared to $112.8 million and $551.2 million in the prior periods.
Relatively higher costs during the fourth quarter were largely
attributable to increased production at Rochester. The
year-over-year decrease in costs was primarily driven by the
temporary suspension of mining and processing activities at
Silvertip.
General and administrative expenses increased 8%
quarter-over-quarter to $8.4 million and decreased slightly
year-over-year to $33.7 million, remaining within Coeur’s 2020
guidance range of $32.0 - $36.0 million. Higher general and
administrative expense in the fourth quarter reflects increased
employee-related costs and outside service fees, while the lower
full-year expense was driven by decreased employee-related costs
and legal fees.
Exploration expense for the fourth quarter and full year totaled
$11.6 million and $42.6 million, respectively, compared to $12.8
million in the third quarter and $22.5 million in 2019. The
significant increase in exploration expense during 2020 was driven
by Coeur executing its largest and most successful drilling
campaign in Company history. See the “Operations” and “Exploration”
sections for additional detail on the Company’s exploration
activities.
Operating costs related to COVID-19 mitigation and response
efforts totaled $5.1 million during the fourth quarter, compared to
$4.0 million in the prior period, bringing the full-year expense to
approximately $15.6 million. These costs were primarily driven by
employee-related expenses at Palmarejo and Kensington, and are
included in “Pre-development, reclamation, and other expenses” on
the Company’s income statement.
Coeur recorded an income tax expense of $25.0 million and $37.0
million during the fourth quarter and for the full year,
respectively. Cash income and mining taxes paid during the quarter
totaled approximately $15.4 million, bringing the full-year figure
to $35.5 million. Cash taxes paid in 2020 primarily reflect higher
income and mining tax payments in Mexico. Additionally, the Company
expects to pay approximately $30.0 - $35.0 million in cash taxes
during the first quarter of 2021 primarily as a result of its
annual tax filings in Mexico.
Quarterly operating cash flow totaled $67.3 million compared to
$79.5 million in the prior period, largely driven by lower
operating cash flow from Wharf quarter-over-quarter. The Company
satisfied the remaining $9.9 million obligation under its
prepayment agreement at Kensington and exercised an option to
receive an additional $15.0 million prepayment, resulting in a net
cash inflow of approximately $5.1 million in the fourth quarter.
Changes in working capital during the quarter were $8.8 million,
compared to $22.1 million in the prior period, largely driven by
the timing of payments. For the full year, operating cash flow
increased 62% to $148.7 million. The significant improvement in
operating cash flow year-over-year was largely driven by increased
profitability at Palmarejo, Kensington and Wharf.
Capital expenditures during the fourth quarter were $37.4
million (63% higher quarter-over-quarter) bringing the full-year
total to $99.3 million (consistent year-over-year), slightly below
the low end of Coeur’s 2020 guidance range of $100.0 - $115.0
million. Higher quarterly capital expenditures were driven by
increased investment across the Company’s portfolio, including
$14.8 million related to the expansion of Rochester ($28.6 million
for the full year). Sustaining and development capital expenditures
accounted for approximately 60% and 40%, respectively, of the
Company’s total capital investment in 2020.
Liquidity Update
Coeur continued to prudently manage its balance sheet during the
fourth quarter of 2020 by repaying $25.6 million of total debt2,
including the remaining outstanding borrowings ($20.0 million)
under its RCF. Late in the quarter, Coeur increased the aggregate
size of its RCF from $250.0 million to $300.0 million in
preparation for major construction on the Plan of Operations
Amendment 11 (“POA 11”) expansion project at Rochester.
The Company also opportunistically monetized certain equity
investments during the fourth quarter of 2020, including
substantially all of its holdings in Metalla Royalty &
Streaming Ltd., resulting in net proceeds of approximately $11.0
million.
Coeur ended the year with total debt2 of $275.5 million (9% and
7% lower quarter-over-quarter and year-over-year, respectively) and
cash and cash equivalents of $92.8 million (20% and 67% higher
quarter-over-quarter and year-over-year, respectively).
Hedging Update
The Company did not execute any additional zero-cost collar
(“ZCC”) hedges during the fourth quarter. Coeur’s hedging strategy
remains focused on supporting cash flow generation during the POA
11 expansion project at Rochester, which the Company expects to
fund with a combination of cash on hand, internally generated cash
flow and debt capacity.
Coeur completed its gold hedging program for 2021 last year and
will proactively monitor market conditions to potentially layer in
additional ZCC hedges on up to 50% of expected gold production in
2022. The Company’s silver price exposure remains unhedged. An
overview of the hedges currently implemented is outlined below:
2021
2022
Gold Ounces Hedged
158,700
126,000
Avg. Ceiling ($/oz)
$1,875
$2,030
Avg. Floor ($/oz)
$1,600
$1,626
Rochester Expansion
Coeur announced the details of the expansion of Rochester in an
updated technical report in mid-December 2020, reflecting
significant reserve growth and the benefits of a larger-scale
project. Notably, the 18-year, reserve-based mine life extends
Rochester’s production profile through 2038 with opportunities for
extension with continued drilling. The expansion project includes
the construction of a new leach pad, a crushing facility equipped
with two high-pressure grinding roll (“HPGR”) units, a
Merrill-Crowe process plant, and related infrastructure to support
the extension of Rochester’s mine life.
A planned increase in annual crusher throughput, from
approximately 14 million tons to over 28 million tons, is expected
to drive annual silver and gold production to more than 8 million
and approximately 80,000 ounces, respectively, for the initial ten
years following the expansion. Together with lower expected
operating costs, these improvements are projected to lead to
significantly higher cash flow post-expansion.
Coeur continued to advance the POA 11 expansion project on
schedule during the fourth quarter of 2020 by completing
early-stage earthworks (e.g., site preparation, clearing and
grubbing for the new leach pad) and installing project-specific
infrastructure (e.g., offices, power, communications). In January
2021, Coeur began work on excavating areas for the Merrill-Crowe
process plant and crusher corridor, and expects to begin crushing
over-liner material for the Stage VI leach pad during the second
half of the year.
Key elements of the project timeline are highlighted below:
Expected Start Date
Target Completion Date
Leach Pad (Incl. Ancillary Facilities)
2H 2020 ✓
Mid-2022
Merrill-Crowe Process Plant
1H 2021 ✓
YE 2022
Crushing Circuit
1H 2021 ✓
YE 2022
Supporting Infrastructure
2H 2020 ✓
Mid-2022
Operations
Fourth quarter and full-year 2020 highlights for each of the
Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Tons milled
1,751,525
509,848
492,474
269,641
479,562
1,755,957
486,779
Average gold grade (oz/t)
0.07
0.08
0.07
0.07
0.07
0.08
0.07
Average silver grade (oz/t)
4.45
4.30
4.37
4.46
4.69
4.85
5.11
Average recovery rate – Au
89.9%
88.9%
91.3%
86.0%
91.6%
84.3%
84.9%
Average recovery rate – Ag
80.4%
81.3%
82.8%
72.2%
81.5%
79.3%
81.7%
Gold ounces produced
110,608
34,511
29,296
15,223
31,578
111,932
28,702
Silver ounces produced (000’s)
6,269
1,783
1,784
867
1,835
6,762
2,029
Gold ounces sold
110,822
35,359
27,252
16,924
31,287
116,104
27,952
Silver ounces sold (000’s)
6,302
1,767
1,765
875
1,895
6,841
1,980
Average realized price per gold
ounce
$1,390
$1,395
$1,446
$1,399
$1,331
$1,220
$1,238
Average realized price per silver
ounce
$21.03
$24.45
$23.98
$16.35
$17.25
$16.23
$17.28
Metal sales
$286.6
$92.5
$81.8
$38.0
$74.3
$252.7
$68.9
Costs applicable to sales3
$125.2
$36.1
$34.3
$18.8
$36.0
$141.9
$34.8
Adjusted CAS per AuOz1
$609
$542
$602
$686
$645
$683
$622
Adjusted CAS per AgOz1
$9.13
$9.61
$10.06
$8.13
$8.37
$9.11
$8.79
Exploration expense
$7.0
$2.6
$2.0
$0.9
$1.5
$5.7
$2.0
Cash flow from operating
activities
$118.3
$43.2
$49.7
$(3.5)
$28.9
$99.2
$41.4
Sustaining capital expenditures
(excludes capital lease payments)
$25.5
$9.0
$4.9
$4.5
$7.1
$21.9
$6.2
Development capital
expenditures
$—
$(0.1)
$0.1
$—
$—
$10.8
$2.4
Total capital expenditures
$25.5
$8.9
$5.0
$4.5
$7.1
$32.7
$8.6
Free cash flow1
$92.8
$34.3
$44.7
$(8.0)
$21.8
$66.5
$32.8
Operational
- Fourth quarter gold production increased 18%
quarter-over-quarter to 34,511 ounces, while silver production
remained consistent at 1.8 million ounces compared to the prior
period. Full-year gold and silver production totaled 110,608 and
6.3 million ounces, respectively
- Quarterly gold and silver production benefited from higher mill
throughput, which increased modestly quarter-over-quarter. Higher
average gold grade led to improved gold production during the
quarter, while consistent silver production was driven by slightly
lower average silver grade. Lower recoveries during the quarter
reflect the impact of in-circuit inventory and finalized slag
shipments
- Full-year production results were above or within 2020 guidance
ranges of 100,000 - 110,00 ounces of gold and 6.0 - 7.0 million
ounces of silver, despite active mining and processing activities
being temporarily suspended for approximately 45 days in the second
quarter due to a COVID-19-related government decree
Financial
- Fourth quarter adjusted CAS1 for gold and silver on a
co-product basis decreased 10% and 4% to $542 and $9.61 per ounce,
respectively, compared to the prior quarter. Continued strong cost
performance during the quarter reflects higher throughput rates,
increased gold sales and effective cost management, including
favorable impacts from foreign exchange hedges
- For the full year, adjusted CAS1 for gold on a co-product basis
decreased 11% to $609 per ounce, while co-product adjusted CAS1 for
silver remained mostly unchanged at $9.13 per ounce. Notably, both
cost metrics finished the year below their 2020 guidance ranges of
$650 - $750 and $9.50 - $10.50 per ounce of gold and silver,
respectively
- Capital expenditures increased 78% quarter-over-quarter to $8.9
million, reflecting the acceleration of business improvement
projects and underground development that were impacted by the
government-mandated temporary suspension in the second quarter.
Similarly, full-year capital expenditures decreased 22%
year-over-year to $25.5 million primarily as a result of the
temporary suspension
- Free cash flow1 in the fourth quarter and full year totaled
$34.3 million and $92.8 million, respectively, compared to $44.7
million and $66.5 million in the prior periods. Lower free cash
flow1 in the fourth quarter resulted from decreased operating cash
flow and higher capital expenditures, while positive full-year
results benefited from increased metal sales as well as lower costs
and capital expenditures
Exploration
- Exploration investment increased 16% and 8%
quarter-over-quarter and year-over-year to approximately $3.7
million ($2.6 million expensed and $1.1 million capitalized) and
approximately $11.0 million ($7.0 million expensed and $4.0 million
capitalized), respectively
- Up to seven surface and underground core rigs were active
during the fourth quarter, winding down to five rigs by the end of
the year. A total of approximately 60,600 feet (18,450 meters) were
drilled during the period, including 49,200 feet (15,000 meters)
targeting resource expansion and 11,400 feet (3,450 meters) focused
on infill drilling. A total of approximately 226,000 feet (68,850
meters) were drilled during the year, representing the largest
component of Coeur’s exploration program during 2020
- Infill drilling during the quarter focused on specific zones
within the Independencia and Guadalupe deposits. Surface drill rigs
targeted areas of the Hidalgo and Independencia zones, while
underground drill rigs focused on the southern portion of the
Independencia zone. Surface infill drilling was also completed on
the La Bavisa zone, located within the Independencia deposit
- Additionally, infill drilling at the Guadalupe deposit was
primarily focused on the southern Las Animas zone, the northern
Zapata zone and the La Patria zone (located in the southwestern
most portion of the deposit)
- Resource expansion drilling focused mainly on the Hidalgo zone
in the Independencia deposit. The potential of this area is
particularly encouraging given its proximity to the mill at
Palmarejo. Assays and thickness of mineralization at the Hidalgo
zone represent the best expansion drilling results at Palmarejo
over the past three years. Expansion drilling was also completed at
the La Bavisa zone as well as the north Independencia zone, which
is an extension of the Independencia deposit
- Coeur plans for Palmarejo to receive one of the largest
allocations of exploration investment in 2021. The Company began
2021 with six active rigs on site, and expects to ramp up to ten
rigs over the course of the year
Other
- Precious metals mining is considered an essential business
activity in Mexico. The Company continues to implement and maintain
rigorous health and safety protocols at Palmarejo and in the
surrounding communities aimed at limiting the exposure and
transmission of COVID-19
- Approximately 44% (15,669 ounces) and 39% (43,001 ounces) of
Palmarejo’s gold sales in the fourth quarter and full year,
respectively, were sold under its gold stream agreement at a price
of $800 per ounce
Guidance
- Full-year 2021 production is expected to be 100,000 - 110,000
ounces of gold and 6.5 - 7.8 million ounces of silver
- CAS1 are expected to be $710 - $810 per gold ounce and $11.00 -
$12.00 per silver ounce
- Capital expenditures are expected to be approximately $40 - $45
million
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Ore tons placed
15,696,565
4,000,889
4,523,767
3,743,331
3,428,578
10,582,518
2,612,319
Average silver grade (oz/t)
0.52
0.53
0.49
0.51
0.57
0.46
0.47
Average gold grade (oz/t)
0.002
0.002
0.002
0.002
0.002
0.003
0.003
Silver ounces produced (000’s)
3,175
1,020
740
728
687
3,761
848
Gold ounces produced
27,147
9,590
6,462
5,159
5,936
35,400
10,634
Silver ounces sold (000’s)
3,054
912
786
724
632
3,845
932
Gold ounces sold
26,257
8,672
6,834
5,278
5,473
36,052
11,248
Average realized price per silver
ounce
$20.93
$24.35
$24.49
$16.11
$16.99
$16.07
$17.22
Average realized price per gold
ounce
$1,765
$1,825
$1,882
$1,702
$1,583
$1,393
$1,484
Metal sales
$110.3
$38.2
$32.1
$20.6
$19.4
$112.0
$32.6
Costs applicable to sales3
$86.1
$31.7
$19.1
$18.3
$17.0
$100.2
$25.3
Adjusted CAS per AgOz1
$16.27
$20.18
$14.98
$13.75
$14.38
$13.67
$13.25
Adjusted CAS per AuOz1
$1,370
$1,537
$1,148
$1,481
$1,359
$1,193
$1,142
Exploration expense
$3.3
$0.8
$0.5
$1.8
$0.2
$0.7
$0.4
Cash flow from operating
activities
$(8.1)
$4.7
$2.1
$(5.6)
$(9.3)
$15.8
$6.9
Sustaining capital expenditures
(excludes capital lease payments)
$7.0
$2.9
$2.5
$1.5
$0.1
$2.1
$0.9
Development capital
expenditures
$30.5
$13.9
$7.3
$4.3
$5.0
$20.5
$4.1
Total capital expenditures
$37.5
$16.8
$9.8
$5.8
$5.1
$22.6
$5.0
Free cash flow1
$(45.6)
$(12.1)
$(7.7)
$(11.4)
$(14.4)
$(6.8)
$1.9
Operational
- Silver and gold production increased 38% and 48%
quarter-over-quarter to approximately 1.0 million and 9,590 ounces,
respectively. For the full year, silver and gold production totaled
approximately 3.2 million and 27,147 ounces, respectively, and were
within 2020 guidance ranges of 3.1 - 3.7 million ounces of silver
and 27,000 - 33,000 ounces of gold
- Strong quarterly silver and gold production was largely driven
by the execution of Coeur’s revised stacking plan to maximize the
placement of HPGR-crushed ore on inter-lift liners, decreasing
depths to liner for inventory under leach. Additionally, all
work-in-process inventory from the prior period was recovered
during the fourth quarter
- Coeur processed approximately 34,000 tons per day through the
upgraded crushing circuit, slightly lower than the roughly 36,500
tons per day crushed in the prior period. The Company reduced
throughput during the quarter to target an optimal crush size,
while also managing the amount of fine particles created, aimed at
improving recovery rates on the Stage IV leach pad. Placement rates
were supplemented by stacking just over 877,000 tons of run-of-mine
material during the period
- The Company plans to complete the fourth phase of its inter
lift-liner strategy and swap out the secondary crushing unit during
the second quarter of 2021. Both projects are aimed at de-risking
execution of POA 11 and further improving recovery rates on the
Stage IV leach pad
Financial
- Fourth quarter and full-year 2020 costs applicable to sales3
figures shown in the table above and highlighted below include a
non-cash adjustment of approximately $7.2 million related to a
change in the Company’s recovery rate assumption on the Stage IV
leach pad, in-line with the updated technical report for Rochester
filed in December 2020
- Fourth quarter adjusted CAS1 for silver and gold on a
co-product basis increased 35% and 34% quarter-over-quarter,
respectively, to $20.18 and $1,537 per ounce, reflecting
comparatively higher cyanide consumption and outside service
costs
- Year-over-year adjusted CAS1 for silver and gold on a
co-product basis increased 19% and 15%, respectively, to $16.27 and
$1,370 per ounce. Higher unit costs in 2020 reflect higher
throughput levels and mining rates as well as increased cyanide
consumption and outside service costs
- Fourth quarter capital expenditures increased 71%
quarter-over-quarter to $16.8 million, bringing the full-year total
to $37.5 million compared to $22.6 million in the prior year,
largely due to increased investment in POA 11 and, to a lesser
extent, the installation of inter-lift liners
- Free cash flow1 in the fourth quarter and full year totaled
$(12.1) million and $(45.6) million, respectively, compared to
$(7.7) million and $(6.8) million in the prior periods. Lower free
cash flow in the fourth quarter resulted from higher capital
expenditures, partially offset by improved operating cash flow,
while lower full-year results were driven by decreased operating
cash flow and higher capital expenditures
Exploration
- Exploration investment remained relatively consistent at
approximately $1.2 million ($0.8 million expensed and $0.4 million
capitalized), while full-year exploration investment more than
doubled year-over-year to approximately $5.1 million ($3.3 million
expensed and $1.8 million capitalized)
- One reverse circulation rig began drilling the northern portion
of the East Rochester zone during the middle of the fourth quarter.
A total of approximately 5,500 feet (1,675 meters) were drilled
during the period, primarily focused on resource expansion. For the
full year, a total of approximately 51,600 feet (15,725 meters)
were drilled with roughly equal allocations between expansion and
infill drilling
- As demonstrated in Rochester’s updated technical report, the
Company believes there is significant potential for reserve and
resource growth in the existing open pit and at East Rochester.
Coeur continues to receive assay results that were not included in
the updated technical report, and expects to incorporate these
results in its year-end 2021 reserves and resources
- Additionally, target generation in the district highlighted
priorities for future drilling north of East Rochester and east of
the Packard deposit as well as around the Lincoln Hill, Gold Ridge
and Independence Hill zones, all located immediately west of
Rochester
- Following the success at Rochester in 2020, Coeur plans to
nearly double its exploration investment at the operation and in
the surrounding areas in 2021, with the majority expected to focus
on resource expansion drilling
Other
- Mining remains an essential business in Nevada. The Company
continues to implement and maintain rigorous health and safety
protocols aimed at limiting the exposure and transmission of
COVID-19 at Rochester and in the surrounding communities
Guidance
- Full-year 2021 production is expected to be 3.2 - 4.4 million
ounces of silver and 22,500 - 32,500 ounces of gold
- CAS1 in 2021 are expected to be $15.00 - $17.00 per silver
ounce and $1,180 - $1,330 per gold ounce
- Capital expenditures are expected to be approximately $155 -
$195 million
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Tons milled
675,731
179,636
163,276
170,478
162,341
658,378
167,061
Average gold grade (oz/t)
0.20
0.20
0.18
0.21
0.21
0.21
0.20
Average recovery rate
93.0%
93.0%
93.7%
92.0%
93.5%
91.0%
87.2%
Gold ounces produced
124,867
32,990
26,797
33,058
32,022
127,914
29,736
Gold ounces sold
124,793
31,830
27,815
32,367
32,781
130,495
29,293
Average realized price per gold ounce,
gross
$1,774
$1,837
$1,917
$1,762
$1,603
$1,408
$1,493
Treatment and refining charges per gold
ounce
$39
$37
$35
$57
$27
$20
$24
Average realized price per gold ounce,
net
$1,735
$1,800
$1,882
$1,705
$1,576
$1,388
$1,469
Metal sales
$216.5
$57.2
$52.4
$55.2
$51.7
$181.1
$43.0
Costs applicable to sales3
$121.7
$29.3
$31.5
$30.4
$30.5
$119.6
$28.8
Adjusted CAS per AuOz1
$972
$919
$1,128
$934
$928
$910
$976
Prepayment, working capital cash
flow
$—
$5.1
$(5.1)
$7.0
$(7.0)
$15.0
$4.7
Exploration expense
$8.6
$0.8
$3.4
$2.6
$1.8
$5.6
$1.6
Cash flow from operating
activities
$79.8
$31.0
$9.1
$27.8
$11.9
$72.0
$19.9
Sustaining capital expenditures
(excludes capital lease payments)
$19.8
$5.8
$5.3
$3.9
$4.8
$23.5
$4.3
Development capital
expenditures
$—
$—
$—
$—
$—
$—
$—
Total capital expenditures
$19.8
$5.8
$5.3
$3.9
$4.8
$23.5
$4.3
Free cash flow1
$60.0
$25.2
$3.8
$23.9
$7.1
$48.5
$15.6
Operational
- Gold production in the fourth quarter increased 23% to 32,990
ounces, bringing the full-year total to 124,867 ounces and within
the 2020 production guidance range of 122,500 - 130,000 ounces
- Strong production during the period was driven by a 10%
increase in mill throughput and an 11% improvement in average grade
quarter-over-quarter
- Jualin accounted for approximately 19% of Kensington’s fourth
quarter production, increasing slightly from approximately 18% in
the prior period. For the full year, Jualin accounted for
approximately 15% of Kensington’s total production
Financial
- Adjusted CAS1 decreased 19% quarter-over-quarter to $919 per
ounce, reflecting modestly lower costs and higher production
levels. Full-year adjusted CAS1 increased 7% to $972 per ounce but
remained within the 2020 guidance range of $900 - $1,000 per ounce.
Slightly higher unit cost performance was driven by comparatively
lower average grade and fewer gold ounces sold
- Capital expenditures increased 9% quarter-over-quarter to $5.8
million, largely due to additional infill drilling. For the full
year, capital expenditures decreased 16% to $19.8 million primarily
due to the timing of payments on certain capital projects
- Free cash flow1 in the fourth quarter and full-year totaled
$25.2 million and $60.0 million, respectively, compared to $3.8
million and $48.5 million in the prior periods. Fourth quarter free
cash flow1 benefited from increased metal sales and a favorable
impact of the prepayment arrangement, while positive full-year
results were driven by higher operating cash flow and lower capital
expenditures
Exploration
- Exploration investment decreased 37% quarter-over-quarter to
approximately $2.2 million ($0.8 million expensed and $1.4 million
capitalized), while full-year exploration investment increased 34%
year-over-year to approximately $10.2 million ($8.6 million
expensed and $1.6 million capitalized)
- Two underground core rigs were active during the quarter,
drilling from the new Elmira development drift. A total of
approximately 39,100 feet (11,925 meters) were drilled during the
period, including 9,500 feet (2,900 meters) of expansion drilling
and 29,600 feet (9,025 meters) of infill drilling. For the full
year, a total of approximately 156,100 feet (47,575 meters) were
drilled, including 124,300 feet (37,875 meters) of expansion
drilling and 31,800 feet (9,700 meters) of infill drilling
- Infill drilling during the fourth quarter was primarily focused
on the Elmira vein, while also occasionally testing the Johnson
vein, which is considered to be a resource expansion target
- Kensington’s 2021 exploration program began in early January
with two underground rigs focused on the Elmira and Johnson veins.
The Company plans to add an additional rig during the first
quarter, following the evaluation of its resource models and
mobilizing the rig to the highest priority targets
Other
- Mining continues to be considered an essential business in
Alaska. Rotational schedules remain extended from 14 days to 28
days in response to concerns related to COVID-19. The quarantine
requirement was shortened to three days (previously seven days)
late in the fourth quarter, supported by Coeur’s robust health and
safety protocols aimed at limiting the exposure and transmission of
COVID-19 at Kensington and the surrounding communities
Guidance
- Production in 2021 is expected to be 115,000 - 130,000 ounces
of gold
- CAS1 in 2021 are expected to be $1,010 - $1,110 per gold
ounce
- Capital expenditures are expected to be approximately $23 - $30
million
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Ore tons placed
4,710,875
1,047,647
1,315,542
1,401,237
946,449
4,613,359
1,100,393
Average gold grade (oz/t)
0.027
0.024
0.025
0.032
0.025
0.023
0.023
Gold ounces produced
93,056
19,286
33,440
24,789
15,541
84,172
25,644
Silver ounces produced (000’s)
115
33
42
25
15
63
20
Gold ounces sold
94,379
21,539
33,382
23,364
16,094
84,999
27,039
Silver ounces sold (000’s)
114
35
41
23
15
64
21
Average realized price per gold
ounce
$1,777
$1,835
$1,872
$1,715
$1,592
$1,416
$1,482
Metal sales
$170.2
$40.3
$63.5
$40.5
$25.9
$121.4
$40.5
Costs applicable to sales3
$89.6
$21.4
$27.9
$22.5
$17.8
$80.7
$25.7
Adjusted CAS per AuOz1
$887
$954
$804
$804
$1,090
$894
$802
Exploration expense
$0.9
$0.3
$0.5
$0.1
$—
$0.3
$0.2
Cash flow from operating
activities
$74.9
$14.1
$39.1
$19.1
$2.6
$39.3
$17.0
Sustaining capital expenditures
(excludes capital lease payments)
$2.4
$1.2
$0.5
$0.3
$0.4
$2.2
$0.8
Development capital
expenditures
$—
$—
$—
$—
$—
$—
$—
Total capital expenditures
$2.4
$1.2
$0.5
$0.3
$0.4
$2.2
$0.8
Free cash flow1
$72.5
$12.9
$38.6
$18.8
$2.2
$37.1
$16.2
Operational
- Gold production in the fourth quarter totaled 19,286 ounces
compared to 33,440 ounces in the prior period. Full-year gold
production increased 11% to 93,056 ounces, which was near the upper
end of the 2020 production guidance range of 85,000 - 95,000
ounces
- As anticipated, lower production during the quarter was driven
by planned leach pad sequencing that resulted in fewer tons placed
as well as slightly lower average grades
- Notably, second half gold production increased 31% from the
first half of 2020
Financial
- Adjusted CAS1 on a by-product basis increased 19%
quarter-over-quarter to $954 per ounce, largely driven by lower
production and sales volumes. Full-year adjusted CAS1 remained
relatively consistent at $887 per ounce, nearing the low-end of its
2020 guidance range ($875 - $925 per ounce)
- Capital expenditures more than doubled quarter-over-quarter to
$1.2 million, reflecting the completion of projects prior to the
end of the year. Full-year capital expenditures remained relatively
consistent at $2.4 million
- Fourth quarter and full-year free cash flow1 totaled $12.9
million and $72.5 million, respectively, compared to $38.6 million
and $37.1 million in the prior periods. Lower free cash flow1 in
the fourth quarter resulted from lower metal sales, while positive
full-year results benefited from higher metal sales
Exploration
- Exploration investment for the fourth quarter totaled
approximately $0.3 million (substantially all expensed), following
the completion of the program early in the period and bringing the
total for the full year to approximately $0.9 million
(substantially all expensed)
- Exploration activity in 2020 focused on resource expansion
drilling at Richmond Hill, which is located approximately four
miles north-northeast of Wharf. Coeur has an exclusive option
agreement with two subsidiaries of Barrick Gold Corporation to
acquire the project that expires in September 2021. The Company
plans to evaluate its next steps regarding Richmond Hill during the
first half of 2021
- For the full year, a total of approximately 24,700 feet (7,525
meters) of resource expansion drilling was completed at Richmond
Hill
- For 2021, an aggressive infill program has already begun on the
southern edge of the existing resource at Wharf, called Portland
Ridge. Coeur expects to complete the program during the second half
of the year
Other
- Coeur continues to follow rigorous health and safety protocols
aimed at limiting the exposure and transmission of COVID-19 at
Wharf and in the surrounding communities
Guidance
- Gold production in 2021 is expected to be 85,000 - 95,000
ounces
- CAS1 in 2021 are expected to be $960 - $1,060 per gold
ounce
- Capital expenditures are expected to be approximately $5 - $8
million
Silvertip, British Columbia
(Dollars in millions)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Metal sales
$1.9
$—
$—
$—
$1.9
$44.3
$10.2
Costs applicable to sales3
$17.7
$—
$—
$—
$17.7
$108.8
$32.0
Exploration expense
$12.2
$5.1
$3.9
$2.9
$0.3
$2.5
$0.9
Cash flow from operating
activities
$(58.4)
$(8.2)
$(8.2)
$(14.9)
$(27.1)
$(69.4)
$(28.6)
Sustaining capital expenditures
(excludes capital lease payments)
$4.2
$(0.5)
$(1.8)
$1.9
$4.6
$17.5
$2.0
Development capital
expenditures
$8.9
$5.0
$3.9
$—
$—
$—
$—
Total capital expenditures
$13.1
$4.5
$2.1
$1.9
$4.6
$17.5
$2.0
Free cash flow1
$(71.5)
$(12.7)
$(10.3)
$(16.8)
$(31.7)
$(86.9)
$(30.6)
- Mining and processing activities were temporarily suspended at
Silvertip on February 19, 2020 (unrelated to COVID-19)
Operational
- Coeur highlighted key outcomes of the internal pre-feasibility
study for Silvertip during its virtual investor day in December
2020. Notably, the Company developed a new flowsheet that would
help support a potential expansion to a throughput rate of 1,750
tonnes per day
- To strengthen the confidence in the results of the
pre-feasibility study, third-party technical reviews were completed
during the fourth quarter. The reviews covered key areas of the
pre-feasibility study, including mining, metallurgy, infrastructure
upgrades and capital estimates
- Coeur is now progressing the project through a more
comprehensive front-end engineering and design phase for the
revised flowsheet, while also continuing to build on the momentum
of its exploration program. The Company’s technical work is
expected to focus on (i) advancing engineering and confirmatory
metallurgical testing to de-risk capital estimates, (ii) increasing
confidence regarding the expected concentrate qualities from all of
the existing zones of the ore body, and (iii) enhancing schedule
certainty with respect to a potential restart
- The Company also plans to continue evaluating opportunities to
accelerate certain non-mill-related capital projects in 2021,
including a new water treatment plant, to help mitigate
construction risk should a restart of the project be approved
during the second half of the year
Financial
- Temporary suspension costs related to the ramp-down of active
mining and processing activities were $1.1 million in the fourth
quarter, compared to $0.8 million in the prior period, bringing the
total for the full year to $7.2 million
- Ongoing carrying costs in the fourth quarter were $4.7 million,
compared to $3.9 million in the prior period, bringing the total
for the full year to $16.4 million
- Capital expenditures during the fourth quarter more than
doubled to $4.5 million, reflecting additional work related to the
potential restart and expansion of the project. Full-year capital
expenditures totaled $13.1 million, compared to $17.5 million in
2019
- Free cash flow1 for the quarter and full year totaled $(12.7)
million and $(71.5) million, respectively
Exploration
- Exploration investment increased 31% quarter-over-quarter to
approximately $5.1 million (substantially all expensed), while
full-year exploration investment of roughly $12.2 million
(substantially all expensed) was significantly higher
year-over-year
- The Company had up to six active drill rigs during the fourth
quarter, ramping down to three rigs at the end of the year. A total
of approximately 61,000 feet (18,600 meters) were drilled during
the quarter, largely focused on near-mine resource expansion in
lower elevations. For the full-year, Coeur drilled a total of
approximately 200,800 feet (61,225 meters), representing the
largest and most successful exploration program in the history of
the project
- The focus throughout 2020 was on near-mine resource expansion
and larger step-out drilling to test the edges of the mineralized
system. Coeur executed this strategy to help support a decision to
potentially pursue a mill expansion. Assay results during the year
have demonstrated the potential for significant resource growth
with over two miles (3.5 kilometers) of north-south strike length
now delineated, more than triple the previous resource strike
length
- Results from resource expansion drilling continue to be
encouraging, specifically east and south of the Discovery zone
resource shapes. In addition, two new zones were discovered at Tour
Ridge and Camp Creek, which are located within the south and
southwest extensions of the Silvertip mine area, respectively.
Intercepts in these new zones appear to be open-ended, and the
manto-style massive sulfide mineralization appears to be getting
thicker to the south
- Coeur allocated approximately $1.0 million of additional
capital for underground development in the fourth quarter of 2020,
helping to accelerate the infill drilling program in early 2021.
The Company began the year with six active rigs, one underground
and five on surface. An additional underground rig was mobilized
towards the end of January, with both underground rigs infill
drilling in the Discovery South, 65 and Central zones from the new
development drift
- One of the surface rigs also focused on infill drilling,
specifically on the Discovery North zone. The remaining four
surface rigs are continuing with resource expansion drilling,
initially at lower elevations near the mine camp, then migrating to
higher elevations as weather conditions and access improves
Other
- Mining continues to be considered an essential business in
British Columbia. Rotational schedules remain at 14 days. The
Company continues to implement and maintain rigorous health and
safety protocols at Silvertip aimed at limiting the exposure and
transmission of COVID-19 at the site and in the surrounding
communities
- In January 2021, Coeur announced the signing of a comprehensive
Impact-Benefit Agreement with the Tahltan Nation, providing a
framework for a mutually beneficial, long-term relationship and
supporting the Company’s commitment to socially and environmentally
responsible mining
Guidance
- 2021 capital expenditures are expected to total $35 - $45
million
Exploration
During the fourth quarter, the Company drilled roughly 181,800
feet (55,400 meters) at a total investment of approximately $14.5
million ($11.6 million expensed and $2.9 million capitalized),
compared to roughly 256,300 feet (78,125 meters) at a total
investment of approximately $15.2 million ($12.8 million expensed
and $2.3 million capitalized) in the prior period. The decrease in
drilling activity was largely driven by the completion of drill
programs at Rochester and Wharf as well as the other sites winding
down exploration activities toward the end of the year.
For the full year, Coeur drilled roughly 783,200 feet (238,700
meters) at a total investment of approximately $50.6 million ($42.6
million expensed and $8.0 million capitalized), compared to roughly
524,100 feet (159,775 meters) at a total investment of
approximately $30.1 million ($22.5 million expensed and $7.5
million capitalized) in 2019. Total feet drilled was nearly 50%
higher year-over-year, representing a new annual record for the
Company.
In addition to the Company’s mine sites, up to three drill rigs
were active at the Crown exploration property in southern Nevada
during the fourth quarter. The Company drilled approximately 13,100
feet (4,000 meters) in the quarter, compared to approximately
23,500 feet (7,150 meters) in the prior period. Two reverse
circulation rigs and one core rig were active during the
period.
Both reverse circulation rigs focused on the new discovery of
oxide-gold mineralization at C-Horst. The drilling at C-Horst
continues to look encouraging with over 45 reverse circulation
holes and three core holes now completed from six permitted drill
pads.
The core rig focused on drilling for metallurgical and
engineering studies, specifically at the Daisy and Secret Pass
resources. The Company plans to keep the core rig active during
most of 2021, conducting metallurgical core drilling at the
C-Horst, Secret Pass and SNA deposits.
For 2021, Coeur plans to utilize three reverse circulation rigs
and one core rig to drill within its recently received 300-acre
disturbance permit at Crown as well as from the newly permitted
drill platforms at C-Horst. While Coeur’s primary focus is expected
to target resource growth at C-Horst, the Company has identified
several other expansion targets near the Daisy and SNA
deposits.
2021 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
100,000 - 110,000
6,500 - 7,750
Rochester
22,500 - 32,500
3,200 - 4,400
Kensington
115,000 - 130,000
—
Wharf
85,000 - 95,000
—
Total
322,500 - 367,500
9,700 - 12,150
2021 Costs Applicable to Sales Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$710 - $810
$11.00 - $12.00
Rochester (co-product)
$1,180 - $1,330
$15.00 - $17.00
Kensington
$1,010 - $1,110
—
Wharf (by-product)
$960 - $1,060
—
2021 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures,
Sustaining
$80 - $100
Capital Expenditures,
Development
$180 - $225
Exploration, Expensed
$46 - $51
Exploration, Capitalized
$17 - $21
General & Administrative
Expenses
$37 - $41
Note: The Company’s guidance figures assume $1,850/oz gold and
$24.00/oz silver as well as CAD of 1.27 and MXN of 19.50. Guidance
figures exclude the impact of any metal sales or foreign exchange
hedges.
Financial Results and Conference Call
Coeur will host a conference call to discuss its fourth quarter
and full-year 2020 financial results on February 18, 2021 at 10:00
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 Thomas S. Whelan,
Senior Vice President and Chief Financial Officer, Michael “Mick”
Routledge, Senior Vice President and Chief Operating Officer, and
other members of management. A replay of the call will be available
through February 25, 2021.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088
(International)
Conference ID:
101 50 972
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with five wholly-owned operations: the
Palmarejo gold-silver 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 Silvertip silver-zinc-lead mine in
British Columbia. 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 strategy, value, cash flow, returns,
net asset values, environmental, social and governance (ESG)
initiatives, culture, exploration and development efforts and
plans, expectations regarding the potential expansion and restart
at Silvertip, the impact of the new crushing circuit, POA 11
expansion project and technical report results at Rochester,
hedging strategies, anticipated production, costs and expenses,
COVID-19 mitigation efforts, and operations at Palmarejo,
Rochester, Wharf, Kensington and Silvertip. 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, silver, zinc and lead and a sustained lower price or higher
treatment and refining charge environment, the uncertainties
inherent in Coeur’s production, exploratory and developmental
activities, including risks relating to permitting and regulatory
delays (including the impact of government shutdowns), ground
conditions and, grade variability, any future labor disputes or
work stoppages (involving the Company and its subsidiaries or third
parties), the uncertainties inherent in the estimation of mineral
reserves, changes that could result from Coeur’s future acquisition
of new mining properties or businesses, the loss of access or
insolvency of any third-party refiner or smelter to which Coeur
markets its production, the potential effects of the COVID-19
pandemic, including impacts to the availability of our workforce,
continued access to financing sources, government orders that may
require temporary suspension of operations at one or more of our
sites and effects on our suppliers or the refiners and smelters to
whom the Company markets its production and on the communities
where we operate, the effects of environmental and other
governmental regulations and government shut-downs, 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 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. This does not constitute an
offer of any securities for sale.
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, including the
recently-filed Technical Report for Rochester, 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 EBITDA
margin, free cash flow, adjusted net income (loss), operating cash
flow excluding changes in working capital and adjusted costs
applicable to sales per ounce (gold and silver) or pound (zinc or
lead). 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 EBITDA margin, free cash flow, adjusted
net income (loss) and adjusted costs applicable to sales per ounce
(gold and silver) and pound (zinc and lead) 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, 2020.
Notes
- EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash
flow, adjusted net income (loss), operating cash flow excluding
changes in working capital and adjusted costs applicable to sales
per ounce (gold and silver) or pound (lead and zinc) 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.
- Includes capital leases. Net of debt issuance costs and premium
received.
- Excludes amortization.
Average Spot Prices
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Average Gold Spot Price Per Ounce
$
1,770
$
1,874
$
1,908
$
1,711
$
1,583
$
1,393
$
1,481
Average Silver Spot Price Per Ounce
$
20.55
$
24.39
$
24.26
$
16.38
$
16.90
$
16.21
$
17.32
Average Zinc Spot Price Per Pound
$
1.03
$
1.19
$
1.06
$
0.89
$
0.96
$
1.16
$
1.08
Average Lead Spot Price Per Pound
$
0.83
$
0.86
$
0.85
$
0.76
$
0.84
$
0.91
$
0.93
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
December 31, 2020
December 31, 2019
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
92,794
$
55,645
Receivables
23,484
18,666
Inventory
51,210
55,886
Ore on leach pads
74,866
66,192
Prepaid expenses and other
27,254
14,047
269,608
210,436
NON-CURRENT ASSETS
Property, plant and equipment, net
230,139
248,789
Mining properties, net
716,790
711,955
Ore on leach pads
81,963
71,539
Restricted assets
9,492
8,752
Equity securities
12,943
35,646
Receivables
26,447
28,709
Other
56,595
62,810
TOTAL ASSETS
$
1,403,977
$
1,378,636
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
90,577
$
69,176
Accrued liabilities and other
119,158
95,616
Debt
22,074
22,746
Reclamation
2,299
3,114
234,108
190,652
NON-CURRENT LIABILITIES
Debt
253,427
272,751
Reclamation
136,975
133,417
Deferred tax liabilities
34,202
41,976
Other long-term liabilities
51,786
72,836
476,390
520,980
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 300,000,000 shares, 243,751,283 issued and outstanding
at December 31, 2020 and 241,529,021 at December 31, 2019
2,438
2,415
Additional paid-in capital
3,610,297
3,598,472
Accumulated other comprehensive income
(loss)
(11,136
)
(136
)
Accumulated deficit
(2,908,120
)
(2,933,747
)
693,479
667,004
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,403,977
$
1,378,636
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
Year Ended December
31,
2020
2019
2018
In thousands, except share
data
Revenue
$
785,461
$
711,502
$
625,904
COSTS AND EXPENSES
Costs applicable to sales(1)
440,335
551,181
440,950
Amortization
131,387
178,876
128,473
General and administrative
33,722
34,493
31,345
Exploration
42,643
22,527
25,397
Impairment of long-lived assets
—
250,814
—
Pre-development, reclamation, and
other
55,654
18,421
20,043
Total costs and expenses
703,741
1,056,312
646,208
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment
—
(1,281
)
—
Fair value adjustments, net
7,601
16,030
3,638
Interest expense, net of capitalized
interest
(20,708
)
(24,771
)
(24,364
)
Other, net
(5,941
)
(3,193
)
(24,705
)
Total other income (expense), net
(19,048
)
(13,215
)
(45,431
)
Income (loss) before income and mining
taxes
62,672
(358,025
)
(65,735
)
Income and mining tax (expense)
benefit
(37,045
)
11,129
16,780
Income (loss) from continuing
operations
$
25,627
$
(346,896
)
$
(48,955
)
Income (loss) from discontinued
operations
—
5,693
550
NET INCOME (LOSS)
$
25,627
$
(341,203
)
$
(48,405
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges, net of tax of $0, $365
and $0 for the years ended December 31, 2020, 2019 and 2018,
respectively.
(12,434
)
(136
)
—
Unrealized gain (loss) on debt and equity
securities
—
59
26
Other comprehensive income (loss)
(11,000
)
(77
)
26
COMPREHENSIVE INCOME (LOSS)
$
14,627
$
(341,280
)
$
(48,379
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing
operations
$
0.11
$
(1.59
)
$
(0.26
)
Net income (loss) from discontinued
operations
—
0.03
—
Basic(2)
$
0.11
$
(1.56
)
$
(0.26
)
Diluted income (loss) per share:
Net income (loss) from continuing
operations
$
0.11
$
(1.59
)
$
(0.26
)
Net income (loss) from discontinued
operations
—
0.03
—
Diluted(2)
$
0.11
$
(1.56
)
$
(0.26
)
(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
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended December
31,
2020
2019
2018
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
25,627
$
(341,203
)
$
(48,405
)
(Income) loss from discontinued
operations
—
(5,693
)
(550
)
Adjustments:
Amortization
131,387
178,876
128,473
Accretion
11,984
12,147
13,933
Deferred taxes
(7,283
)
(36,817
)
(48,441
)
Loss on debt extinguishment
—
1,281
—
Fair value adjustments, net
(7,634
)
(16,030
)
(3,638
)
Stock-based compensation
8,548
9,189
8,328
Gain on modification of right of use
lease
(4,051
)
—
—
Impairment of long-lived assets
—
250,814
—
Write-downs
16,821
69,246
55,297
Deferred revenue recognition
(16,702
)
(1,857
)
—
Other
3,737
14,281
7,353
Changes in operating assets and
liabilities:
Receivables
(9,463
)
(2,739
)
(9,260
)
Prepaid expenses and other current
assets
(2,621
)
280
4,876
Inventory and ore on leach pads
(34,538
)
(62,998
)
(44,488
)
Accounts payable and accrued
liabilities
32,897
23,103
(43,370
)
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES OF CONTINUING OPERATIONS
148,709
91,880
20,108
CASH PROVIDED BY (USED IN )OPERATING
ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
(2,690
)
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
148,709
91,880
17,418
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(99,279
)
(99,772
)
(140,787
)
Acquisitions, net
—
—
6,914
Proceeds from the sale of assets
5,529
1,033
577
Purchase of investments
(2,500
)
(5,023
)
(426
)
Sale of investments
30,831
2,109
12,713
Proceeds from notes receivable
—
7,168
19,000
Other
(252
)
1,919
11
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES OF CONTINUING OPERATIONS
(65,671
)
(92,566
)
(101,998
)
CASH USED IN INVESTING ACTIVITIES OF
DISCONTINUED OPERATIONS
—
—
(28,470
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(65,671
)
(92,566
)
(130,468
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
—
123,059
—
Issuance of notes and bank borrowings, net
of issuance costs
150,000
60,000
95,000
Payments on debt, finance leases, and
associated costs
(175,984
)
(221,854
)
(95,059
)
Silvertip contingent consideration
(18,750
)
(18,697
)
—
Other
(1,801
)
(3,404
)
(5,160
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES OF CONTINUING OPERATIONS
(46,535
)
(60,896
)
(5,219
)
CASH USED IN FINANCING ACTIVITIES OF
DISCONTINUED OPERATIONS
—
—
(22
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
(46,535
)
(60,896
)
(5,241
)
Effect of exchange rate changes on cash
and cash equivalents
649
531
28
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
37,152
(61,051
)
(118,263
)
Less net cash used in discontinued
operations
—
—
(32,930
)
37,152
(61,051
)
(85,333
)
Cash, cash equivalents and restricted cash
at beginning of period
57,018
118,069
203,402
Cash, cash equivalents and restricted cash
at end of period
$
94,170
$
57,018
$
118,069
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Net income (loss)
$
25,627
$
11,880
$
26,856
$
(1,209
)
$
(11,900
)
$
(341,203
)
$
(270,961
)
(Income) loss from discontinued
operations, net of tax
—
—
—
—
(5,693
)
—
Interest expense, net of capitalized
interest
20,708
4,719
5,096
5,765
5,128
24,771
5,512
Income tax provision (benefit)
37,045
25,027
13,113
2,844
(3,939
)
(11,129
)
2,857
Amortization
131,387
35,133
32,216
27,876
36,162
178,876
48,118
EBITDA
214,767
76,759
77,281
35,276
25,451
(154,378
)
(214,474
)
Fair value adjustments, net
(7,601
)
(4,110
)
(2,243
)
(10,067
)
8,819
(16,030
)
(7,829
)
Foreign exchange (gain) loss
2,245
1,581
599
(11
)
76
4,346
268
Asset retirement obligation accretion
11,754
3,031
2,968
2,908
2,847
12,154
3,124
Inventory adjustments and write-downs
1,144
105
(230
)
793
476
5,904
363
(Gain) loss on sale of assets and
securities
2,484
391
2,476
(9
)
(374
)
714
594
Impairment of long-lived assets
—
—
—
—
—
250,814
250,814
Silvertip inventory write-down
13,717
—
1,232
2,104
10,381
64,610
23,325
Silvertip temporary suspension costs
7,164
1,092
838
1,725
3,509
—
—
Silvertip lease modification
(4,051
)
—
—
—
(4,051
)
—
—
Silvertip gain on contingent
consideration
(955
)
—
—
—
(955
)
—
—
COVID-19 costs
15,555
5,138
4,037
6,108
272
—
—
Novation
3,819
—
3,819
—
—
—
—
Wharf inventory write-down
3,323
—
—
3,323
—
3,596
3,596
Loss on debt extinguishment
—
—
—
—
—
1,282
—
Receivable write-down
—
—
—
—
—
1,040
—
Interest income on notes receivables
—
—
—
—
—
(198
)
—
Adjusted EBITDA
$
263,365
$
83,987
$
90,777
$
42,150
$
46,451
$
173,854
$
59,781
Revenue
$
785,461
$
228,317
$
229,728
$
154,249
$
173,167
$
711,502
$
195,040
Adjusted EBITDA Margin
34
%
37
%
40
%
27
%
27
%
24
%
31
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Net income (loss)
$
25,627
$
11,880
$
26,856
$
(1,209
)
$
(11,900
)
$
(341,203
)
$
(270,961
)
Income loss from discontinued operations,
net of tax
—
—
—
—
(5,693
)
—
Fair value adjustments, net
(7,601
)
(4,110
)
(2,243
)
(10,067
)
8,819
(16,030
)
(7,829
)
Foreign exchange loss (gain)
(69
)
4,692
1,233
626
(6,620
)
5,900
1,733
(Gain) loss on sale of assets and
securities
2,484
391
2,476
(9
)
(374
)
714
594
Impairment of long-lived assets
—
—
—
—
—
250,814
250,814
Silvertip inventory write-down
13,717
—
1,232
2,104
10,381
64,610
23,325
Silvertip temporary suspension costs
7,164
1,092
838
1,725
3,509
—
Silvertip lease modification
(4,051
)
—
—
—
(4,051
)
—
Silvertip gain on contingent
consideration
(955
)
—
—
—
(955
)
—
COVID-19 costs
15,555
5,138
4,037
6,108
272
—
Novation
3,819
—
3,819
—
—
—
Wharf inventory write-down
3,323
—
—
3,323
—
3,596
3,596
Loss on debt extinguishment
—
—
—
—
—
1,282
—
Receivable write-down
—
—
—
—
—
1,040
—
Interest income on notes receivables
—
—
—
—
—
(198
)
—
Tax effect of adjustments
—
—
—
—
—
(19,415
)
(4,572
)
Adjusted net income (loss)
$
59,013
$
19,083
$
38,248
$
2,601
$
(919
)
$
(54,583
)
$
(3,300
)
Adjusted net income (loss) per share -
Basic
$
0.25
$
0.08
$
0.16
$
0.01
$
0.00
$
(0.25
)
$
(0.01
)
Adjusted net income (loss) per share -
Diluted
$
0.24
$
0.08
$
0.16
$
0.01
$
0.00
$
(0.25
)
$
(0.01
)
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Cash flow from continuing operations
$
148,709
$
67,289
$
79,464
$
9,947
$
(7,991
)
$
91,880
$
39,295
Capital expenditures from continuing
operations
99,279
37,393
22,996
16,682
22,208
99,772
20,907
Free cash flow
$
49,430
$
29,896
$
56,468
$
(6,735)
$
(30,199
)
$
(7,892
)
$
18,388
Consolidated Operating Cash
Flow
Before Working Capital Changes
Reconciliation
(Dollars in thousands)
2020
4Q 2020
3Q 2020
2Q 2020
1Q 2020
2019
4Q 2019
Cash provided by (used in) continuing
operating activities
$
148,709
$
67,289
$
79,464
$
9,947
$
(7,991
)
$
91,880
$
39,295
Changes in operating assets and
liabilities:
Receivables
9,463
5,617
1,497
1,536
813
2,739
(17,970
)
Prepaid expenses and other
2,621
1,435
1,921
(1,081)
346
(280
)
(2,423
)
Inventories
34,538
1,491
3,066
8,056
21,925
62,998
20,397
Accounts payable and accrued
liabilities
(32,897
)
(17,331
)
(28,570
)
(2,047
)
15,051
(23,103
)
18,318
Cash flow before changes in operating
assets and liabilities
$
162,434
$
58,501
$
57,378
$
16,411
$
30,144
$
134,234
$
57,617
Reconciliation of Costs
Applicable to Sales
for Year Ended December 31
2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
170,077
$
100,418
$
171,204
$
102,108
$
26,580
$
570,387
Amortization
(44,873
)
(14,306
)
(49,477
)
(12,473
)
(8,923
)
(130,052
)
Costs applicable to sales
$
125,204
$
86,112
$
121,727
$
89,635
$
17,657
$
440,335
Inventory Adjustments
(158
)
(447
)
(438
)
(3,424
)
—
(4,467
)
By-product credit
—
—
—
(2,503
)
—
(2,503
)
Adjusted costs applicable to
sales
$
125,046
$
85,665
$
121,289
$
83,708
$
17,657
$
433,365
Metal Sales
Gold ounces
110,822
26,257
124,793
94,379
356,251
Silver ounces
6,301,516
3,054,139
113,790
158,984
9,628,429
Zinc pounds
3,203,446
3,203,446
Lead pounds
2,453,485
2,453,485
Revenue Split
Gold
54
%
42
%
100
%
100
%
Silver
46
%
58
%
NM
Zinc
NM
Lead
NM
Adjusted costs applicable to
sales
Gold ($/oz)
$
609
$
1,370
$
972
$
887
Silver ($/oz)
$
9.13
$
16.27
NM
Zinc ($/lb)
NM
Lead ($/lb)
NM
Note: “NM” means not meaningful.
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
48,672
$
36,828
$
42,486
$
24,300
$
—
$
152,286
Amortization
(12,516
)
(5,112
)
(13,179
)
(2,848
)
—
(33,655
)
Costs applicable to sales
$
36,156
$
31,716
$
29,307
$
21,452
$
—
$
118,631
Inventory Adjustments
(24
)
24
(56
)
(49
)
—
(105
)
By-product credit
—
—
—
(864
)
—
(864
)
Adjusted costs applicable to
sales
$
36,132
$
31,740
$
29,251
$
20,539
$
—
$
117,662
Metal Sales
Gold ounces
35,359
8,672
31,830
21,539
97,400
Silver ounces
1,766,714
912,335
35,794
—
2,714,843
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
53
%
42
%
100
%
100
%
Silver
47
%
58
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
542
$
1,537
$
919
$
954
Silver ($/oz)
$
9.61
$
20.18
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
46,163
$
22,382
$
43,053
$
31,887
$
1,185
$
144,670
Amortization
(11,912
)
(3,278
)
(11,523
)
(4,000
)
(1,185
)
(31,898
)
Costs applicable to sales
$
34,251
$
19,104
$
31,530
$
27,887
$
—
$
112,772
Inventory Adjustments
(100
)
517
(141
)
(46
)
—
230
By-product credit
—
—
—
(1,007
)
—
(1,007
)
Adjusted costs applicable to
sales
$
34,151
$
19,621
$
31,389
$
26,834
$
—
$
111,995
Metal Sales
Gold ounces
27,252
6,834
27,815
33,382
95,283
Silver ounces
1,765,371
785,887
40,521
—
2,591,779
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
48
%
40
%
100
%
100
%
Silver
52
%
60
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
602
$
1,148
$
1,128
$
804
Silver ($/oz)
$
10.06
$
14.98
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
26,095
$
21,348
$
43,235
$
25,653
$
1,231
$
117,562
Amortization
(7,270
)
(3,012
)
(12,853
)
(3,181
)
(1,231
)
(27,547
)
Costs applicable to sales
$
18,825
$
18,336
$
30,382
$
22,472
$
—
$
90,015
Inventory Adjustments
(106
)
(566
)
(139
)
(3,304
)
—
(4,115
)
By-product credit
—
—
—
(385
)
—
(385
)
Adjusted costs applicable to
sales
$
18,719
$
17,770
$
30,243
$
18,783
$
—
$
85,515
Metal Sales
Gold ounces
16,924
5,278
32,367
23,364
77,933
Silver ounces
874,642
723,679
22,707
—
1,621,028
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
62
%
44
%
100
%
100
%
Silver
38
%
56
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
686
$
1,481
$
934
$
804
Silver ($/oz)
$
8.13
$
13.75
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
49,149
$
19,860
$
42,429
$
20,267
$
23,002
$
154,707
Amortization
(13,175
)
(2,904
)
(11,922
)
(2,444
)
(5,345
)
(35,790
)
Costs applicable to sales
$
35,974
$
16,956
$
30,507
$
17,823
$
17,657
$
118,917
Inventory Adjustments
73
(422
)
(101
)
(25
)
(10,381
)
(10,856
)
By-product credit
—
—
—
(248
)
—
(248
)
Adjusted costs applicable to
sales
$
36,047
$
16,534
$
30,406
$
17,550
$
7,276
$
107,813
Metal Sales
Gold ounces
31,287
5,473
32,781
16,094
85,635
Silver ounces
1,894,789
632,237
14,768
158,984
2,700,778
Zinc pounds
3,203,446
3,203,446
Lead pounds
2,453,485
2,453,485
Revenue Split
Gold
56
%
45
%
100
%
100
%
Silver
44
%
55
%
26
%
Zinc
48
%
Lead
26
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
645
$
1,359
$
928
$
1,090
Silver ($/oz)
$
8.37
$
14.38
$
11.79
Zinc ($/lb)
$
1.12
Lead ($/lb)
$
0.74
Reconciliation of Costs
Applicable to Sales
for Year Ended December 31
2019
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
201,306
$
118,246
$
170,194
$
92,969
$
145,496
$
728,211
Amortization
(59,379
)
(18,041
)
(50,592
)
(12,280
)
(36,738
)
(177,030
)
Costs applicable to sales
$
141,927
$
100,205
$
119,602
$
80,689
$
108,758
$
551,181
Inventory Adjustments
(344
)
(4,625
)
(913
)
(3,617
)
(64,610
)
(74,109
)
By-product credit
—
—
—
(1,072
)
—
(1,072
)
Adjusted costs applicable to
sales
$
141,583
$
95,580
$
118,689
$
76,000
$
44,148
$
476,000
Metal Sales
Gold ounces
116,104
36,052
130,495
84,999
367,650
Silver ounces
6,841,380
3,844,556
64,161
1,164,470
11,914,567
Zinc pounds
18,154,521
18,154,521
Lead pounds
16,487,847
16,487,847
Revenue Split
Gold
56
%
45
%
100
%
100
%
Silver
44
%
55
%
34
%
Zinc
39
%
Lead
27
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
683
$
1,193
$
910
$
894
Silver ($/oz)
$
9.11
$
13.67
$
12.89
Zinc ($/lb)
$
0.95
Lead ($/lb)
$
0.72
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31, 2019
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
49,590
$
31,100
$
41,537
$
29,818
$
42,189
$
194,234
Amortization
(14,799
)
(5,791
)
(12,776
)
(4,072
)
(10,166
)
(47,604
)
Costs applicable to sales
$
34,791
$
25,309
$
28,761
$
25,746
$
32,023
$
146,630
Inventory Adjustments
(11
)
(116
)
(176
)
(3,677
)
(23,325
)
(27,305
)
By-product credit
—
—
—
(373
)
—
(373
)
Adjusted costs applicable to
sales
$
34,780
$
25,193
$
28,585
$
21,696
$
8,698
$
118,952
Metal Sales
Gold ounces
27,953
11,248
29,293
27,039
—
95,533
Silver ounces
1,979,315
931,326
21,132
294,498
3,226,271
Zinc pounds
4,052,554
4,052,554
Lead pounds
4,223,504
4,223,504
Revenue Split
Gold
50
%
51
%
100
%
100
%
Silver
50
%
49
%
38
%
Zinc
32
%
Lead
30
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
622
$
1,142
$
976
$
802
Silver ($/oz)
$
8.79
$
13.25
$
11.22
Zinc ($/lb)
$
0.69
Lead ($/lb)
$
0.62
Reconciliation of Costs
Applicable to Sales for 2021 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
196,255
$
105,557
$
188,349
$
99,746
Amortization
(39,208
)
(15,899
)
(59,756
)
(11,524
)
Costs applicable to sales
$
157,047
$
89,658
$
128,593
$
88,222
By-product credit
—
—
—
(2,255
)
Adjusted costs applicable to
sales
$
157,047
$
89,658
$
128,593
$
85,967
Metal Sales
Gold ounces
107,900
27,200
127,000
89,000
Silver ounces
7,128,000
3,807,000
93,000
Revenue Split
Gold
49%
36%
100%
100%
Silver
51%
64%
—
—
Adjusted costs applicable to
sales
Gold ($/oz)
$710 - $810
$1,180 - $1,330
$1,010 - $1,110
$960 - $1,060
Silver ($/oz)
$11.00 - $12.00
$15.00 - $17.00
Reconciliation of Costs
Applicable to Sales for 2020 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
179,529
$
102,554
$
175,424
$
94,989
Amortization
(44,409
)
(14,561
)
(52,201
)
(11,600
)
Costs applicable to sales
$
135,120
$
87,993
$
123,223
$
83,389
By-product credit
—
—
—
(2,058
)
Adjusted costs applicable to
sales
$
135,120
$
87,993
$
123,223
$
81,331
Metal Sales
Gold ounces
106,500
31,400
126,700
89,500
Silver ounces
6,400,000
3,600,000
95,000
Revenue Split
Gold
52%
43%
100%
100%
Silver
48%
57%
—
—
Adjusted costs applicable to
sales
Gold ($/oz)
$650 - $750
$1,150 - $1,300
$900 - $1,000
$875 - $925
Silver ($/oz)
$9.50 - $10.50
$13.50 - $14.75
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210217005942/en/
For Additional Information Coeur Mining, Inc. 104 S.
Michigan Avenue, Suite 900 Chicago, IL 60603 Attention: Paul
DePartout, Director, Investor Relations Phone: (312) 489-5800
www.coeur.com
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