Provides Full-Year 2022 Guidance
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported fourth quarter 2021 financial results, including revenue
of $208 million and cash flow from operating activities of $35
million. The Company reported GAAP net loss from continuing
operations of $11 million, or $0.04 per share, which included a
non-cash unrealized loss of $8 million on strategic equity
investments, primarily related to Coeur’s 18% equity ownership of
Victoria Gold Corp. (“Victoria”) during the quarter. On an adjusted
basis1, Coeur reported EBITDA of $49 million, cash flow from
operating activities before changes in working capital of $38
million and net loss from continuing operations of $12 million, or
$0.05 per share.
For the full year, Coeur reported revenue of $833 million, cash
flow from operating activities of $110 million and GAAP net loss
from continuing operations of $31 million, or $0.13 per share. On
an adjusted basis1, the Company reported EBITDA of $211 million,
cash flow from operating activities prior to changes in working
capital of $146 million and net loss from continuing operations of
$1 million, or $0.01 per share.
Key Highlights
- Solid fourth quarter production growth led to full-year
production within guidance ranges – Gold and silver production
increased 2% and 6% quarter-over-quarter, respectively, to 88,946
ounces and 2.6 million ounces. Full-year gold and silver production
totaled 348,529 ounces and 10.1 million ounces, respectively,
within the Company’s consolidated production guidance range for
both metals
- Strong cost performance from primary gold operations –
Full-year adjusted costs applicable to sales2 at Palmarejo,
Kensington and Wharf were within their guidance ranges for 2021
despite inflationary cost headwinds, leading to strong free cash
flow1 at each of these primary gold operations. During 2021, gold
sales represented 70% of the Company’s total revenue
- Largest exploration program in Company history extended mine
lives and drove resource growth – Coeur increased total
exploration investment 41% year-over-year to $71 million in 2021,
bringing its five-year cumulative investment in exploration to
nearly $240 million, which has led to significant increases in
reserves and resources. From the 2021 program, mine life extensions
at Palmarejo and Wharf as well as significant resource additions at
Silvertip and Kensington continue to lay the foundation for future
organic growth
- Updated capital and schedule estimates for Rochester
expansion provide clarity – The Company estimates the total
capital for the Plan of Operations Amendment 11 (“POA 11”) will be
approximately $520 million, which is in-line with recent updates.
Approximately $236 million has been incurred on the project as of
December 31, 2021. In addition, Coeur estimates the cost to
incorporate pre-screens into the new crusher circuit and associated
re-assessment of project contingency to be approximately $70 - $80
million. Construction is expected to be completed mid-2023 with
commissioning to follow. Post-expansion, full-year production is
expected to average roughly 8 million ounces of silver and 76,250
ounces of gold with average free cash flow1 of $90 million from
2024 to 2034
- Silvertip trade-off study underway – The Company
commenced work to assess the economics of a potential larger
expansion and restart of its high-grade Silvertip silver-zinc-lead
property in British Columbia. The review is evaluating the
potential to target a higher throughput to take advantage of the
significant resource growth and on a timetable that would sequence
an expansion and restart following completion and commissioning of
the Rochester expansion. Results from this ongoing work are
expected by the end of the year
- Initial Technical Report Summaries filed under new SEC rules
confirm strength and stability of Coeur’s multi-asset portfolio
– The Company today filed initial Technical Report Summaries
pursuant to Item 1300 of SEC Regulation S-K. Highlights from the
reports include reserve-only based mine lives of 8 years at
Palmarejo, 13 years at Rochester, 3 years at Kensington and 8 years
at Wharf
“Solid contributions from our diversified portfolio led to
Coeur’s strongest annual revenue in nearly a decade,” said Mitchell
J. Krebs, President and Chief Executive Officer. “Achieving our
annual production guidance for both gold and silver was
particularly gratifying in light of the global economic disruptions
that continue to impact our industry.
“Through it all, our focus remained squarely on advancing the
POA 11 expansion project at Rochester in northern Nevada.
Comprehensive development and planning work during the fourth
quarter has provided significant clarity on costs and timing. We
believe the decision to proceed with pre-screens as an expected
accretive scope change to the existing project flowsheet will
contribute further to Rochester’s overall flexibility. The updated
Rochester capital schedule envisions a long-lived linchpin of
sustainable production and free cash flow with compelling
opportunities for further organic growth.
“We also continued our successful multi-year exploration program
by executing the largest drilling campaign in Coeur’s history. Our
commitment to delivering organic growth through the drill bit led
to further extension of mine lives at Wharf and Palmarejo as well
as enhanced understanding of geologic models in all our operating
districts. We also made important new discoveries at our Silvertip
property in northern British Columbia and Crown property in
southern Nevada.
“We have taken advantage of the higher metal prices in recent
years to invest in the attractive returns available from brownfield
expansions and exploration to position the Company as America’s
premier, growing precious metals mining company with a diversified,
North American asset base capable of generating attractive returns
and sustainable cash flow over the long-term.”
Financial and Operating Highlights
(Unaudited)
(Amounts in millions, except per share
amounts, gold/silver ounces produced & sold, and per-ounce
metrics)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Gold Sales
$
578.9
$
146.7
$
147.7
$
146.2
$
138.3
$
584.6
$
162.0
Silver Sales
$
253.9
$
61.2
$
60.2
$
68.7
$
63.8
$
200.2
$
66.4
Consolidated Revenue
$
832.8
$
207.8
$
208.0
$
214.9
$
202.1
$
785.5
$
228.3
Costs Applicable to Sales2
$
511.5
$
136.5
$
134.3
$
132.6
$
108.1
$
440.3
$
118.6
General and Administrative
Expenses
$
40.4
$
9.6
$
8.7
$
10.5
$
11.6
$
33.7
$
8.4
Net Income (Loss)
$
(31.3
)
$
(10.7
)
$
(54.8
)
$
32.1
$
2.1
$
25.6
$
11.9
Net Income (Loss) Per Share
$
(0.13
)
$
(0.04
)
$
(0.21
)
$
0.13
$
0.01
$
0.11
$
0.05
Adjusted Net Income (Loss)1
$
(1.4
)
$
(11.6
)
$
(2.9
)
$
(0.8
)
$
13.9
$
59.0
$
19.1
Adjusted Net Income (Loss)1 Per
Share
$
(0.01
)
$
(0.05
)
$
(0.01
)
$
0.00
$
0.06
$
0.24
$
0.08
Weighted Average Shares
Outstanding
250.0
254.8
254.7
252.1
244.5
242.5
244.3
EBITDA1
$
148.4
$
28.3
$
(14.2
)
$
84.6
$
49.7
$
214.8
$
76.7
Adjusted EBITDA1
$
210.8
$
48.7
$
48.8
$
52.7
$
65.9
$
263.4
$
84.0
Cash Flow from Operating
Activities
$
110.5
$
35.0
$
21.8
$
58.1
$
(4.4
)
$
148.7
$
67.3
Capital Expenditures
$
309.8
$
100.9
$
71.3
$
78.2
$
59.4
$
99.3
$
37.4
Free Cash Flow1
$
(199.3
)
$
(65.9
)
$
(49.4
)
$
(20.2
)
$
(63.8
)
$
49.4
$
29.8
Cash, Equivalents & Short-Term
Investments
$
56.7
$
56.7
$
85.0
$
124.1
$
154.1
$
92.8
$
92.8
Total Debt3
$
487.5
$
487.5
$
442.4
$
414.2
$
412.1
$
275.5
$
275.5
Average Realized Price Per Ounce –
Gold
$
1,652
$
1,652
$
1,645
$
1,651
$
1,664
$
1,641
$
1,663
Average Realized Price Per Ounce –
Silver
$
25.06
$
23.17
$
24.18
$
26.60
$
26.19
$
20.79
$
24.21
Gold Ounces Produced
348,529
88,946
87,083
87,275
85,225
355,678
96,377
Silver Ounces Produced
10.1
2.6
2.5
2.6
2.4
9.7
2.8
Gold Ounces Sold
350,347
88,930
89,804
88,501
83,112
356,251
97,400
Silver Ounces Sold
10.1
2.6
2.5
2.6
2.4
9.6
2.7
Financial Results
Fourth quarter 2021 revenue totaled $208 million compared to
$208 million in the prior period and $228 million in the fourth
quarter of 2020. The Company produced 88,946 and 2.6 million ounces
of gold and silver, respectively, during the quarter. Metal sales
totaled 88,930 ounces of gold and 2.6 million ounces of silver.
Average realized gold and silver prices for the quarter were $1,652
and $23.17 per ounce, respectively, compared to $1,645 and $24.18
per ounce in the prior period and $1,663 and $24.21 per ounce in
the fourth quarter of 2020.
Coeur generated $833 million in revenue during 2021,
representing a 6% increase year-over-year and its highest annual
revenue in nearly ten years. Full-year gold and silver production
totaled 348,529 and 10.1 million ounces, respectively, compared to
355,678 ounces of gold and 9.7 million ounces of silver in 2020.
Metal sales in 2021 included 350,347 and 10.1 million ounces of
gold and silver, respectively. Average realized gold and silver
prices for the year were $1,652 and $25.06 per ounce, respectively,
compared to $1,641 and $20.79 per ounce in 2020.
Gold and silver sales accounted for 71% and 29% of quarterly
revenue, respectively. For the full year, gold and silver sales
accounted for 70% and 30% of revenue. The Company’s U.S. operations
accounted for approximately 61% and 62% of fourth quarter and
full-year revenue, respectively.
Costs applicable to sales2 remained consistent
quarter-over-quarter at $137 million while increasing 16%
year-over-year to $512 million. Higher costs during the year were
due primarily to increased maintenance and consumable costs driven
by inflation.
General and administrative expenses for the fourth quarter and
full-year totaled $10 million and $40 million, respectively,
compared to $9 million and $34 million in the prior periods, and at
the low end of Coeur’s 2021 guidance range of $40 - $45 million.
Higher general and administrative expense in the fourth quarter and
full-year primarily reflects increased employee-related
expenses.
Coeur invested approximately $18 million ($14 million expensed
and $4 million capitalized) in exploration during the quarter,
compared to roughly $20 million ($15 million expensed and $5
million capitalized) in the prior period. For the full year, the
Company invested approximately $71 million ($51 million expensed
and $20 million capitalized), compared to roughly $51 million ($43
million expensed and $8 million capitalized), reflecting completion
of the largest exploration program in Coeur’s history and within
the Company’s 2021 guidance range of $65 - $75 million. 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 remained relatively steady quarter-over-quarter at $1
million, bringing the full-year expense to approximately $7
million. These costs were primarily driven by employee-related
expenses at Kensington and Palmarejo, and are included in
“Pre-development, reclamation, and other expenses” on the Company’s
income statement. Coeur has maintained rigorous health and safety
protocols across its operations aimed at limiting the exposure and
transmission of COVID-19 which has led to minimal business
interruptions.
The Company recorded income tax expense of approximately $1
million and $35 million during the fourth quarter and for the full
year, respectively. Cash income and mining taxes paid during the
period totaled approximately $10 million, bringing the full-year
figure to $57 million. Cash taxes paid in 2021 primarily reflect
income and mining tax payments in Mexico. Additionally, Coeur
expects to pay approximately $20 - $25 million in cash taxes during
the first quarter of 2022 primarily as a result of its annual tax
filings in Mexico.
Quarterly operating cash flow totaled $35 million compared to
$22 million in the prior period, largely driven by favorable
changes in working capital resulting primarily from the timing of
payments. The Company satisfied the remaining $8 million obligation
under its prepayment agreement at Kensington and exercised an
option to receive an additional $15 million prepayment, resulting
in a net cash inflow of approximately $7 million in the fourth
quarter. For the full year, operating cash flow decreased 26% to
$110 million largely driven by lower profitability at Rochester,
Kensington and Wharf.
Capital expenditures increased 42% quarter-over-quarter to $101
million, bringing the full-year total to $310 million and within
Coeur’s 2021 guidance range of $280 - $310 million. Higher
quarterly capital expenditures were driven by increased investment
across the Company’s portfolio. Expenditures related to the POA 11
expansion project at Rochester totaled $47 million and $148 million
during the quarter and full-year, respectively. Sustaining and
development capital expenditures accounted for approximately 32%
and 68%, respectively, of Coeur’s total capital investment in
2021.
Capital Projects Update
Rochester Expansion
As previously disclosed, the Company began seeing inflationary
pressures on bids for remaining unawarded contracts on the POA 11
expansion project at Rochester during the second half of 2021, most
notably on two structural, mechanical, piping, electrical and
instrumentation (“SMPEI”) construction contracts for the
Merrill-Crowe process plant and crushing circuit, respectively.
Coeur recently selected TIC - The Industrial Company, a subsidiary
of Kiewit, as the general SMPEI contractor for construction of the
Merrill-Crowe process plant and crusher corridor based on a revised
commercial approach from the previous lump-sum commercial model to
a single contract. SMPEI work under the initial contract is
beginning to advance.
Coeur has also advanced work related to implementation of
pre-screens as part of the POA 11 expansion project and has elected
to proceed with this scope change enhancement. As previously
disclosed, the Company plans to integrate pre-screens into the
current crushing system at Rochester, which is expected to drive
improved performance while providing valuable operating experience
and knowledge that can be applied to the new crushing circuit as
part of the POA 11 expansion. Coeur has commenced detailed
engineering for pre-screens and intends to align construction of
the pre-screens with the completion of the crusher corridor.
Installation of pre-screens on the existing crusher system is
scheduled for the first half of 2022 with commissioning expected to
begin around mid-year.
In connection with the items discussed above, the Company has
conducted a comprehensive re-baselining of the overall schedule and
costs associated with the original scope of POA 11. Updates to key
elements of the project timeline including commissioning are
highlighted below:
Start Date
Initial Target Completion
Date
Updated Target Completion
Date
Stage VI Leach Pad
2H 2020 ✓
Mid-2022
Mid-2023
Merrill-Crowe Process Plant
1H 2021 ✓
YE 2022
Mid-2023
Crushing Circuit
1H 2021 ✓
YE 2022
3Q-2023
Coeur now estimates the total construction capital for POA 11 to
be approximately $597 million, which includes the 10-15% previously
announced potential cost escalation as well as $70 - $80 million
related to pre-screen implementation and additional project
contingency to reflect ongoing COVID and schedule risk. As of
December 31, 2021, the Company has incurred approximately $236
million in the expansion and 61% of the capital is now committed
(excluding the recently-awarded SMPEI contract, which is expected
to be formalized in the first quarter).
Excluding capital leases, Coeur forecasts capital expenditures
related to POA 11 to be approximately $217 - $257 million and $131
- $171 million in 2022 and 2023, respectively. Additional details
on expected production and capital expenditures for Rochester can
be found in the Technical Report Summary filed by the Company with
the U.S. Securities and Exchange Commission on February 16, 2022
and summarized below.
Average Throughput (tons)4
35 million
Life of Mine based on Reserves
13 years
Strip Ratio
0.53:1
Average Production (ounces) (Ag / Au)4
8 million / 76,250
Average Placed Grade (ounce per ton) (Ag /
Au)
0.39 / 0.003
Recovered Placed Metal (Ag / Au)
(62% / 92%)
Mining Cost Per Ton4
$1.35
Processing Cost Per Ton4
$2.15
G&A Cost Per Ton4
$0.64
Annual Average Free Cash Flow1,4
$90 million
NPV5%
$348 million
IRR
17%
Note: for a description of the key
assumptions, parameters and methods used to estimate the foregoing,
as well as data verification procedures and a general discussion of
the extent to which the estimates may be affected by known
environmental, permitting, legal, title, taxation, sociopolitical,
marketing or other relevant factors, please review the Technical
Report Summary for Rochester which is available at www.sec.gov.
Silvertip Expansion and Restart
As previously disclosed, the Company received preliminary
capital estimates for an accelerated expansion and restart which
were higher than originally anticipated and reflected overall
inflationary pressures as well as supply disruptions and labor
market tightness consistent with broader macroeconomic themes.
Coeur continues to generate positive results from ongoing
exploration as highlighted by the 62% year-over-year increase in
inferred resource tons. The Company continues to evaluate various
opportunities to enhance the economics of a potential expansion and
restart of Silvertip. Exploration investment in the fourth quarter
and full-year totaled approximately $4 million (substantially all
expensed) and $19 million ($15 million expensed and $3 million
capitalized), respectively.
Up to seven core drill rigs were active during the quarter (five
on surface and two underground) focused on expansion drilling at
southern portions and deeper extensions of the Southern Silver,
Discovery South and Camp Creek zones. A total of approximately
337,000 feet (102,725 meters) were drilled during the year,
including roughly 75,100 feet (22,875 meters) drilled during the
fourth quarter.
Recent surface drilling from south of the Southern Silver zone
has cut 11 horizontal manto-style massive sulfide horizons with
greater than 10% sphalerite, further suggesting the mineral system
extends to the south. Similarly, surface drilling at the Camp Creek
zone discovered a new chimney-style massive sulfide zone west of
the Camp Creek fault, an area that remains completely open to
expansion. At the end of 2021, all of the extensions from Discovery
South, Southern Silver and Camp Creek ore bodies remain completely
open for expansion. In 2022, Coeur plans to continue the resource
growth program and follow-up drilling activity on the newly
discovered zones. Additionally, ongoing metallurgical test work is
continuing to validate the Company’s assumptions on potential
recovery rates and concentrate qualities.
Ongoing carrying costs at Silvertip totaled $6 million in the
fourth quarter, compared to $6 million in the prior period. For the
full year, ongoing carrying costs totaled $25 million. Capital
expenditures during the fourth quarter totaled $26 million compared
to $15 million in the prior period as Coeur completed mill
decommissioning and planned early civil works construction during
the quarter. For 2022, capital expenditures are expected to be
approximately $18 - $24 million, primarily focused on underground
development and infill drilling as well as study work to evaluate
additional opportunities to enhance the economics of a potential
expansion and restart.
Liquidity Update
The Company ended the year with total liquidity of approximately
$257 million, including $57 million of cash and $200 million of
available capacity under its $300 million revolving credit facility
(“RCF”)5. The aggregate borrowing capacity under the RCF may be
increased by up to $100 million. Additionally, the Company had $132
million of strategic investments in equity securities and the full
$100 million available under its at-the-market common stock
offering program established in April 2020 (“ATM Program”).
Hedging Update
The Company did not execute any additional hedges during the
fourth quarter. Coeur continues to proactively monitor market
conditions to potentially layer in additional hedges on up to 70%
of expected gold production in 2022 to provide greater assurance of
expected cash flow during this period of elevated capital
expenditures. The Company’s silver price exposure remains unhedged.
An overview of the hedges currently implemented is outlined
below:
2022
Gold Ounces Hedged
132,000
Avg. Ceiling ($/oz)
$2,038
Avg. Floor ($/oz)
$1,630
Mark-to-Market Adjustments
The Company values its strategic investments in equity
securities as of the end of each reporting period. The estimated
fair values of the Company’s equity investments in Victoria Gold
Corp. and Integra Resources Corp. were $124 million and $8 million,
respectively, at December 31, 2021 compared to $131 million and $9
million, respectively, at September 30, 2021, resulting in a
non-cash unrealized loss of $8 million during the fourth quarter of
2021. This figure is included in “Fair value adjustments, net” on
the Company’s income statement.
Rochester LCM Adjustment
Coeur reports the carrying value of metal and leach pad
inventory at the lower of cost or net realizable value, with cost
being determined using a weighted average cost method. At the end
of the fourth quarter, the cost of ore on leach pads at Rochester
exceeded its net realizable value which resulted in a lower of cost
or market (“LCM”) adjustment of $8 million (approximately $7
million in costs applicable to sales2 and $1 million of
amortization).
Operations
Fourth quarter and full-year 2021 highlights for each of the
Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Tons milled
2,106,741
587,615
517,363
517,373
484,390
1,751,525
509,848
Average gold grade (oz/t)
0.056
0.055
0.050
0.058
0.062
0.070
0.076
Average silver grade (oz/t)
3.93
3.86
3.86
3.94
4.07
4.45
4.30
Average recovery rate – Au
92.8
%
89.7
%
93.7
%
92.4
%
95.7
%
89.9
%
88.9
%
Average recovery rate – Ag
82.4
%
81.3
%
85.5
%
81.9
%
81.3
%
80.4
%
81.3
%
Gold ounces produced
109,202
28,748
24,254
27,595
28,605
110,608
34,511
Silver ounces produced (000’s)
6,821
1,843
1,708
1,667
1,603
6,269
1,783
Gold ounces sold
108,806
27,706
24,897
30,516
25,687
110,822
35,359
Silver ounces sold (000’s)
6,806
1,813
1,715
1,640
1,638
6,302
1,767
Average realized price per gold
ounce
$
1,380
$
1,374
$
1,335
$
1,351
$
1,462
$
1,390
$
1,395
Average realized price per silver
ounce
$
25.00
$
23.26
$
24.15
$
26.71
$
26.12
$
21.03
$
24.45
Metal sales
$
320.3
$
80.4
$
74.6
$
85.0
$
80.3
$
286.6
$
92.5
Costs applicable to sales2
$
153.7
$
38.8
$
39.0
$
41.9
$
34.0
$
125.2
$
36.1
Adjusted CAS per AuOz1
$
663
$
653
$
704
$
662
$
621
$
609
$
542
Adjusted CAS per AgOz1
$
11.95
$
11.25
$
12.50
$
13.34
$
10.98
$
9.13
$
9.61
Exploration expense
$
8.6
$
2.3
$
2.8
$
1.8
$
1.7
$
7.0
$
2.6
Cash flow from operating
activities
$
102.7
$
32.9
$
23.2
$
33.4
$
13.2
$
118.3
$
43.2
Sustaining capital expenditures
(excludes capital lease payments)
$
36.5
$
8.3
$
8.4
$
9.8
$
10.0
$
25.5
$
9.0
Development capital
expenditures
$
—
$
(0.1
)
$
0.1
$
—
$
—
$
—
$
(0.1
)
Total capital expenditures
$
36.5
$
8.2
$
8.5
$
9.8
$
10.0
$
25.5
$
8.9
Free cash flow1
$
66.2
$
24.7
$
14.7
$
23.6
$
3.2
$
92.8
$
34.3
Operational
- Fourth quarter gold and silver production totaled 28,748 and
1.8 million ounces, respectively, compared to 24,254 and 1.7
million ounces in the prior period and 34,511 and 1.8 million
ounces in the fourth quarter of 2020. For the full year, gold and
silver production totaled 109,202 and 6.8 million ounces,
respectively, and were within 2021 guidance ranges of 100,000 -
110,000 ounces of gold and 6.5 - 7.8 million ounces of silver
- Production during the quarter benefited from a 14% increase in
mill throughput as well as higher average gold grade, partially
offset by lower gold and silver recoveries due to an increase of
in-circuit inventory
Financial
- Fourth quarter adjusted CAS1 for gold and silver on a
co-product basis decreased 7% and 10% to $653 and $11.25 per ounce,
respectively, reflecting higher metal sales partially offset by
higher cement consumption related to ongoing rehabilitation
efforts
- For the full year, adjusted CAS1 for gold and silver totaled
$663 and $11.95 per ounce, respectively, compared to $609 and $9.13
in the prior period. Both cost metrics finished the year within
their 2021 guidance ranges of $635 - $735 and $11.75 - 12.75 per
ounce of gold and silver, respectively, and benefited from Mexican
Peso hedges
- Capital expenditures remained relatively consistent
quarter-over-quarter at $8 million, reflecting continued investment
in business improvement projects, underground development and
infill drilling. Full-year capital expenditures increased 43% to
$37 million, primarily as a result of increased underground
development and business improvement projects
- Free cash flow1 in the fourth quarter totaled $25 million
compared to $15 million in the prior period, largely driven by
higher metal sales
Exploration
- Exploration investment decreased 17% quarter-over-quarter to
approximately $4 million ($2 million expensed and $1 million
capitalized), while full-year exploration investment increased 31%
year-over-year to roughly $14 million ($9 million expensed and $6
million capitalized)
- Up to seven surface and underground core drill rigs were active
during the quarter. A total of approximately 49,500 feet (15,075
meters) were drilled during the period, including 23,800 feet
(7,250 meters) of expansion and 25,700 feet (7,825 meters) of
infill drilling. For the full year, a total of approximately
243,500 feet (74,200 meters) were drilled, including 104,200 feet
(31,750 meters) of expansion and 139,300 feet (42,450 meters) of
infill drilling
- Infill drilling focused on specific zones within the
Independencia and Guadalupe deposits while surface rigs targeted
areas of the northwest Independencia, Hidalgo (located within the
Independencia deposit) and La Patria (located within the Guadalupe
deposit) zones
- Expansion drilling during the quarter continued to focus on the
Hidalgo and El Ojito (located in the northeastern portion of the
Independencia deposit) zones
- Coeur began greenfield drilling in the La Carmela (located
within the Guazapares district and outside the gold stream area of
influence) zone after receiving surface agreements and
environmental permits early in the quarter
- Coeur plans for six drill rigs to be active at Palmarejo in the
first quarter of 2022, focusing on infill drilling in northwest
Independencia and Hidalgo zones, and expects to maintain this pace
throughout the year
Other
- Approximately 43% of Palmarejo’s gold sales in the fourth
quarter and full-year were sold under its gold stream agreement at
a price of $800 per ounce, totaling 11,970 ounces in the fourth
quarter and 46,506 ounces for the full year. The Company
anticipates approximately 38% - 42% of Palmarejo’s gold sales for
2022 will be sold under the stream agreement
Guidance
- Full-year 2022 production is expected to be 100,000 - 110,000
ounces of gold and 6.0 - 7.0 million ounces of silver. Lower
expected production in 2022 is primarily due to lower planned
mining and throughput rates
- CAS1 in 2022 are expected to be $750 - $850 per gold ounce and
$13.50 - $14.50 per silver ounce. Higher CAS1 in 2022 is a result
of Coeur completing its Mexican Peso hedging program in 2021 and
anticipated continued inflationary pressures
- Capital expenditures are expected to be $50 - $55 million,
primarily aimed at underground development as well as development
of an open pit backfill tailings storage facility
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Ore tons placed
13,687,536
3,823,764
3,427,078
3,195,777
3,240,917
15,696,565
4,000,889
Average silver grade (oz/t)
0.42
0.40
0.43
0.38
0.45
0.52
0.53
Average gold grade (oz/t)
0.002
0.003
0.002
0.003
0.003
0.002
0.002
Silver ounces produced (000’s)
3,158
757
739
888
774
3,175
1,020
Gold ounces produced
27,051
6,864
6,051
7,232
6,904
27,147
9,590
Silver ounces sold (000’s)
3,242
801
758
912
771
3,054
912
Gold ounces sold
27,697
7,386
5,559
7,818
6,934
26,257
8,672
Average realized price per silver
ounce
$
25.04
$
22.98
$
24.27
$
26.38
$
26.34
$
20.93
$
24.35
Average realized price per gold
ounce
$
1,793
$
1,797
$
1,785
$
1,794
$
1,794
$
1,765
$
1,825
Metal sales
$
130.8
$
31.6
$
28.3
$
38.1
$
32.8
$
110.3
$
38.2
Costs applicable to sales2
$
131.2
$
37.5
$
31.7
$
38.0
$
24.0
$
86.1
$
31.7
Adjusted CAS per AgOz1
$
23.57
$
21.76
$
22.68
$
26.09
$
19.07
$
16.27
$
20.18
Adjusted CAS per AuOz1
$
1,691
$
1,707
$
1,665
$
1,787
$
1,300
$
1,370
$
1,537
Exploration expense
$
6.0
$
2.2
$
2.4
$
0.9
$
0.5
$
3.3
$
0.8
Cash flow from operating
activities
$
(26.5
)
$
(12.3
)
$
(9.5
)
$
4.0
$
(8.7
)
$
(8.1
)
$
4.7
Sustaining capital expenditures
(excludes capital lease payments)
$
17.5
$
5.8
$
2.4
$
7.3
$
2.0
$
7.0
$
2.9
Development capital
expenditures
$
149.0
$
48.1
$
37.7
$
35.0
$
28.2
$
30.5
$
13.9
Total capital expenditures
$
166.5
$
53.9
$
40.1
$
42.3
$
30.2
$
37.5
$
16.8
Free cash flow1
$
(193.0
)
$
(66.2
)
$
(49.6
)
$
(38.3
)
$
(38.9
)
$
(45.6
)
$
(12.1
)
Operational
- Silver and gold production in the fourth quarter totaled 0.8
million and 6,864 ounces, respectively, compared to 0.7 million and
6,051 ounces in the prior period and 1.0 million and 9,590 ounces
in the fourth quarter of 2020. For the full year, silver and gold
production totaled 3.2 million and 27,051 ounces, respectively and
were within 2021 guidance ranges of 3.2 - 4.4 million ounces of
silver and 22,500 - 32,500 ounces of gold
- Tons placed increased 12% quarter-over-quarter to 3.8 million,
largely due to improved haul truck availability as well as crusher
throughput. Tonnage placed was impacted by a historic rain event in
October which affected approximately 10 days of production.
Placement rates were supplemented by stacking roughly 1.0 million
tons of run-of-mine material during the quarter
- The Company plans to install pre-screens on the existing
crusher corridor aimed at mitigating the impact of fine ore
material and improving recoveries. The total cost of the
pre-screens is anticipated to be approximately $5 million, with
commissioning expected to begin around mid-year. During
construction, the project is expected to affect the Company’s
ability to crush material for up to 30 days during the second
quarter. The experience and knowledge gained from utilizing
pre-screens will be applied to new screening technology being
integrated into the new crusher system flowsheet for POA 11
Financial
- Fourth quarter and full-year as well as third quarter adjusted
CAS1 exclude the impact of an LCM adjustment totaling approximately
$7 million and $5 million, respectively, related to the net
realizable value of metal and leach pad inventory. Additionally,
full-year adjusted CAS1 figures include a non-cash inventory charge
of approximately $9 million made in the second quarter related to a
change in Coeur’s recovery rate assumption on the Stage IV leach
pad
- Fourth quarter adjusted CAS1 for silver and gold on a
co-product basis totaled $21.76 and $1,707 per ounce, respectively,
compared to $22.68 and $1,665 per ounce in the prior period,
largely driven by increased maintenance and consumable costs,
partially offset by higher metal sales
- Full-year adjusted CAS1 for silver and gold on a co-product
basis totaled $23.57 and $1,691 per ounce, respectively, compared
to $16.27 and $1,370 per ounce in the prior period. Higher unit
costs in 2021 reflect the non-cash inventory charge discussed above
as well as increased maintenance and consumable costs. Excluding
the non-cash charge, full-year adjusted CAS1 for silver and gold on
a co-product basis totaled $21.92 and $1,572 per ounce,
respectively
- Capital expenditures increased 34% quarter-over-quarter to $54
million, bringing the full-year total to $167 million compared to
$38 million in the prior year, reflecting continued investment in
the POA 11 expansion project as well as several sustaining projects
commenced during the period
- Free cash flow1 in the fourth quarter and full-year totaled
$(66) million and $(193) million, respectively, compared to $(50)
million and $(46) million in the prior periods
Exploration
- Quarterly exploration investment decreased 20%
quarter-over-quarter to approximately $3 million ($2 million
expensed and $1 million capitalized), while full-year exploration
investment increased 76% year-over-year to approximately $9 million
($6 million expensed and $3 million capitalized)
- Two reverse circulation drill rigs and two core drill rigs were
active during the quarter. Infill drilling focused within the
Rochester pit while expansion drilling tested Nevada Packard, North
and East Rochester, Lincoln Hill and Gold Ridge. A total of
approximately 32,800 feet (10,000 meters) were drilled during the
period, including 30,000 feet (9,150 meters) focused on expansion
and 2,800 feet (850 meters) focused on infill drilling. For the
full year, a total of approximately 112,200 feet (34,200 meters)
were drilled, including 81,200 feet (24,750 meters) of expansion
and 31,000 feet (9,450 meters) of infill drilling
- Coeur completed its aggressive district-wide greenfield,
gold-focused exploration program during the fourth quarter, which
led to identifying several new expansion targets at Gold Ridge,
Nevada Packard and Northeast Rochester. The Company plans to have
up to two reverse circulation drill rigs active at Rochester during
2022 to focus on greenfield and resource expansion targets in these
areas. Approval of an updated Plan of Operations for West Rochester
(composed of Lincoln Hill, Independence Hill and Gold Ridge) is
expected by the end of March which will allow the Company to
accelerate the exploration program in this area
Guidance
- Full-year 2022 production is expected to be 3.0 - 4.0 million
ounces of silver and 35,000 - 43,000 ounces of gold. Higher
expected production in 2022 is a result of increased average gold
and silver grades, partially offset by fewer planned crushed tons
in the second quarter related to the installation of pre-screens on
the existing crusher
- CAS1 in 2022 are expected to be $20.75 - $22.75 per silver
ounce and $1,490 - $1,590 per gold ounce
- Capital expenditures are expected to be $220 - $260 million
primarily due to investment in the POA 11 expansion project
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Tons milled
667,560
168,295
160,596
168,311
170,358
675,731
179,636
Average gold grade (oz/t)
0.19
0.21
0.19
0.18
0.19
0.20
0.20
Average recovery rate
93.2
%
93.9
%
93.0
%
92.7
%
93.2
%
93.0
%
93.0
%
Gold ounces produced
121,140
33,516
28,621
28,322
30,681
124,867
32,990
Gold ounces sold
122,181
33,888
29,902
26,796
31,595
124,793
31,830
Average realized price per gold ounce,
gross
$
1,785
$
1,790
$
1,764
$
1,851
$
1,754
$
1,774
$
1,837
Treatment and refining charges per gold
ounce
$
28
$
27
$
29
$
30
$
30
$
39
$
37
Average realized price per gold ounce,
net
$
1,757
$
1,763
$
1,735
$
1,821
$
1,724
$
1,735
$
1,800
Metal sales
$
215.0
$
59.8
$
51.9
$
48.8
$
54.5
$
216.5
$
57.2
Costs applicable to sales2
$
133.1
$
37.9
$
34.6
$
29.2
$
31.4
$
121.7
$
29.3
Adjusted CAS per AuOz1
$
1,082
$
1,111
$
1,150
$
1,088
$
989
$
972
$
919
Prepayment, working capital cash
flow
$
—
$
7.4
$
(7.4
)
$
7.9
$
(7.9
)
$
—
$
5.1
Exploration expense
$
6.7
$
1.6
$
2.7
$
1.3
$
1.1
$
8.6
$
0.8
Cash flow from operating
activities
$
70.8
$
26.8
$
13.6
$
19.4
$
11.0
$
79.8
$
31.0
Sustaining capital expenditures
(excludes capital lease payments)
$
27.5
$
8.0
$
6.3
$
6.0
$
7.2
$
19.8
$
5.8
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
27.5
$
8.0
$
6.3
$
6.0
$
7.2
$
19.8
$
5.8
Free cash flow1
$
43.3
$
18.8
$
7.3
$
13.4
$
3.8
$
60.0
$
25.2
Operational
- Gold production in the fourth quarter totaled 33,516 ounces
compared to 28,621 ounces in the prior period and 32,990 ounces in
the fourth quarter of 2020. For the full year, gold production
totaled 121,140 ounces and was within 2021 guidance of 115,000 -
130,000 ounces
- Strong production during the quarter was driven by an 11%
improvement in average gold grade and higher mill throughput
quarter-over-quarter
- The higher-grade Jualin deposit accounted for approximately 19%
of Kensington’s fourth quarter production, higher than roughly 13%
in the prior period, largely due to mine sequencing. For the full
year, Jualin accounted for approximately 18% of Kensington’s total
production
Financial
- Fourth quarter adjusted CAS1 totaled $1,111 per ounce compared
to $1,150 per ounce in the prior period reflecting higher metal
sales, partially offset by higher consumable costs and
employee-related expenses. Full-year adjusted CAS1 increased 11% to
$1,082 per ounce but remained within the 2021 guidance range of
$1,010 - $1,110 per ounce
- Capital expenditures increased 27% quarter-over-quarter to $8
million, largely due to increased investment in underground
development. For the full year, capital expenditures increased 39%
to $28 million primarily due to higher underground development
investment and additional infill drilling
- Free cash flow1 in the fourth quarter and full-year totaled $19
million and $43 million, respectively, compared to $7 million and
$60 million in the prior periods. Fourth quarter free cash flow1
benefited from increased metal sales and a favorable impact
associated with the prepayment agreement, while full-year results
were driven by lower metal sales
Exploration
- Exploration investment in the quarter totaled approximately $3
million ($2 million expensed and $1 million capitalized), compared
to $4 million ($3 million expensed and $1 million capitalized) in
the prior period. For the full year, exploration investment
increased 4% to roughly $11 million ($7 million expensed and $4
million capitalized)
- Three underground and one surface core drill rigs were active
during the quarter. A total of approximately 36,300 feet (11,050
meters) were drilled during the period, including 19,800 feet
(6,025 meters) of expansion and 16,500 feet (5,025 meters) of
infill drilling. For the full year, a total of roughly 156,500 feet
(47,725 meters) were drilled, including 86,800 feet (26,475 meters)
of expansion and 69,700 feet (21,250 meters) of infill
drilling
- Three underground rigs focused on infill drilling at Elmira and
upper Kensington Zone 30 as well as expansion drilling at upper
Kensington Zone 30 and Raven. Additionally, one surface core rig
completed scout drilling late in the period at the
Valentine-Fremming target (southwest of Kensington)
- In the first quarter of 2022, three underground drill rigs are
expected to focus on infill drilling at the Elmira, upper
Kensington Zone 30 and Eureka veins as well as expansion drilling
at the Jennifer vein
Guidance
- Full-year 2022 production is expected to be 110,000 - 120,000
ounces of gold. Lower anticipated production in 2022 is primarily
the result of lower expected grade feed compared to 2021
- CAS1 in 2022 are expected to be $1,150 - $1,250 per gold ounce.
Higher expected CAS1 in 2022 is primarily due to expected continued
inflationary pressures
- Capital expenditures are expected to be $27 - $34 million
focused on underground development and equipment replacements
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Ore tons placed
4,702,882
1,074,189
1,489,169
1,025,481
1,114,043
4,710,875
1,047,647
Average gold grade (oz/t)
0.027
0.022
0.025
0.032
0.030
0.027
0.024
Gold ounces produced
91,136
19,818
28,157
24,126
19,035
93,056
19,286
Silver ounces produced (000’s)
90
15
16
33
26
115
33
Gold ounces sold
91,663
19,950
29,446
23,371
18,896
94,379
21,539
Silver ounces sold (000’s)
86
11
18
31
26
114
35
Average realized price per gold
ounce
$
1,795
$
1,799
$
1,789
$
1,801
$
1,791
$
1,777
$
1,835
Metal sales
$
166.7
$
36.2
$
53.1
$
42.9
$
34.5
$
170.2
$
40.3
Costs applicable to sales2
$
93.6
$
22.4
$
29.1
$
23.4
$
18.7
$
89.6
$
21.4
Adjusted CAS per AuOz1
$
994
$
1,104
$
971
$
963
$
952
$
887
$
954
Exploration expense
$
0.1
$
(0.1
)
$
—
$
0.1
$
0.1
$
0.9
$
0.3
Cash flow from operating
activities
$
58.4
$
8.4
$
24.9
$
17.3
$
7.8
$
74.9
$
14.1
Sustaining capital expenditures
(excludes capital lease payments)
$
4.0
$
3.0
$
0.3
$
0.3
$
0.4
$
2.4
$
1.2
Development capital
expenditures
$
4.1
$
1.2
$
0.7
$
1.1
$
1.1
$
—
$
—
Total capital expenditures
$
8.1
$
4.2
$
1.0
$
1.4
$
1.5
$
2.4
$
1.2
Free cash flow1
$
50.3
$
4.2
$
23.9
$
15.9
$
6.3
$
72.5
$
12.9
Operational
- Gold production in the fourth quarter totaled 19,818 ounces
compared to 28,157 ounces in the prior period and 19,286 ounces in
the fourth quarter of 2020. For the full year, gold production
totaled 91,136 ounces, within 2021 guidance of 85,000 - 95,000
ounces
- Lower production during the quarter was due primarily to lower
grade material placed on the leach pad during the prior period as a
result of planned mine sequencing
Financial
- Adjusted CAS1 on a by-product basis increased 14%
quarter-over-quarter to $1,104 per ounce, largely driven by lower
metal sales. Full-year adjusted CAS1 totaled $994 per ounce and was
within 2021 guidance of $960 - $1,060 per ounce
- Capital expenditures in the fourth quarter totaled $4 million
compared to $1 million in the prior period, primarily related to
new equipment purchases as well as increased investment in infill
drilling. Full-year capital expenditures totaled $8 million
compared to $2 million in 2020, primarily reflecting increased
investment in infill drilling during the year
- Free cash flow1 was $4 million and $50 million in the fourth
quarter and full-year, respectively, compared to $24 million and
$73 million in the prior periods. Lower free cash flow1 in the
fourth quarter and full-year was largely driven by lower metal
sales
Exploration
- Exploration investment in the quarter and year totaled
approximately $1 million (substantially all capitalized) and
approximately $4 million (substantially all capitalized) as the
Company made its largest exploration investment since acquiring the
asset in 2015
- A total of approximately 21,700 feet (6,625 meters) were
drilled during the period using one reverse circulation rig
focusing on infill targets at the Portland Ridge – Boston claim
group (located on the southern edge of the operation), Flossie
(located west of Portland Ridge) and Juno (located north of the
Portland pit) areas. For the full year, a total of roughly 123,400
feet (37,625 meters) were drilled
- The Company plans to have one reverse circulation rig during
the first quarter of 2022 focused on infill drilling at the Flossie
and Portland Ridge areas
Guidance
- Full-year 2022 production is expected to be 70,000 - 80,000
ounces. Lower anticipated production in 2022 is primarily related
to lower expected gold grade due to mine sequencing
- CAS1 in 2022 are expected to be $1,225 - $1,325 per gold ounce.
Higher expected CAS1 in 2022 is due to lower expected metal sales
as well as continued inflationary pressures
- Capital expenditures are expected to be $2 - $5 million
Exploration
The fourth quarter marked the end of a record-breaking
exploration year for Coeur, wrapping up an industry-leading
exploration program. During the fourth quarter, Coeur drilled
roughly 251,300 feet (76,600 meters) for a total investment of
approximately $18 million ($14 million expensed and $4 million
capitalized), compared to roughly 326,700 feet (99,575 meters) for
a total investment of approximately $20 million ($15 million
expensed and $5 million capitalized) in the prior period. The
decrease in drilling activity was largely driven by the seasonal
wind-down of exploration activities across the Company’s portfolio
toward the end of the year.
For the full year, Coeur drilled roughly 1,164,100 feet (354,825
meters) at a total investment of approximately $71 million ($51
million expensed and $20 million capitalized), compared to roughly
783,200 feet (238,725 meters) at a total investment of
approximately $51 million ($43 million expensed and $8 million
capitalized) in 2020. Total feet drilled was 49% higher
year-over-year, representing a new annual record for the
Company.
As a result, measured and indicated resources grew across
several sites, specifically at Silvertip, as silver, zinc and lead
increased roughly 51%, 33% and 44%, respectively. The Company also
saw promising resource growth at Palmarejo with an approximate 71%
increase in gold and a roughly 44% increase in silver as well as an
increase of roughly 18% in gold at Kensington.
Three reverse circulation drill rigs were active at the Crown
exploration property in southern Nevada during the quarter,
primarily focused on the Daisy, Secret Pass and SNA deposits, while
one core rig focused on exploration drilling at C-Horst. The
Company drilled approximately 36,100 feet (11,000 meters) and
191,400 feet (58,325 meters) during the quarter and full-year,
respectively, compared to approximately 50,300 feet (15,325 meters)
and 124,000 feet (37,800 meters) in the prior periods. Results were
encouraging at Daisy, SNA and C-Horst where Coeur believes resource
expansion is expected based on step-out drilling at all three
sites.
The Company plans to continue the same pace of exploration at
Crown during the first quarter of 2022, with one reverse
circulation rig scheduled to conduct resource expansion and scout
drilling on new targets within its 300-acre disturbance permit and
two core rigs focused on infill drilling at C-Horst and SNA for
metallurgy purposes.
Additionally, an amended permit to expand the C-Horst discovery
footprint is expected to be received by the end of the second
quarter of 2022. Coeur has experienced significant delays from the
local federal agencies overseeing the permit process. Despite these
delays, once received, the Company plans to begin testing multiple
targets at the Pipeline Gulch and Tates Wash areas (both located
between C-Horst and SNA) where surface geology, geochemistry and
geophysics all indicate gold mineralization could exist similar to
C-Horst.
2022 Guidance
Gold and silver production is expected to remain roughly
consistent with 2021 levels, characterized by lower planned average
grades at each operation as well as mine sequencing at Wharf and
process enhancements at Rochester. Overall cost guidance has
increased compared to 2021 primarily driven by expected
inflationary pressures on operating costs.
2022 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
100,000 - 110,000
6,000 - 7,000
Rochester
35,000 - 43,000
3,000 - 4,000
Kensington
110,000 - 120,000
—
Wharf
70,000 - 80,000
—
Total
315,000 - 353,000
9,000 - 11,000
2022 Costs Applicable to Sales
Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$750 - $850
$13.50 - $14.50
Rochester (co-product)
$1,490 - $1,590
$20.75 - $22.75
Kensington
$1,150 - $1,250
—
Wharf (by-product)
$1,225 - $1,325
—
2022 Capital, Exploration and G&A
Guidance
($M)
Capital Expenditures,
Sustaining
$115 - $140
Capital Expenditures,
Development
$205 - $250
Exploration, Expensed
$18 - $23
Exploration, Capitalized
$18 - $23
General & Administrative
Expenses
$42 - $46
Note: The Company’s guidance figures
assume estimated prices of $1,800/oz gold and $24.00/oz silver as
well as CAD of 1.25 and MXN of 20.00. 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 2021 financial results on February 17, 2022 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 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 24, 2022.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
986 14 49
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with four wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, 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 wholly-owns the
Silvertip silver-zinc-lead mine in British Columbia and 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 cash flow, capital allocation and
investment, liquidity, exploration and development efforts and
plans, resource growth, expectations regarding the potential
expansion and restart at Silvertip, expectations and plans
regarding the Rochester POA 11 expansion project (including
post-completion results) and Silvertip, hedging strategies, the
impact of inflation, anticipated production, costs and expenses,
health and safety practices and operations at Palmarejo, Rochester,
Wharf and Kensington. 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, grade and recovery 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 workforce,
materials and equipment availability, inflationary pressures,
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.
The scientific and technical information concerning our mineral
projects in this news release have been reviewed and approved by a
“qualified person” under S-K 1300, namely our Director, Technical
Services, Christopher Pascoe. For a description of the key
assumptions, parameters and methods used to estimate mineral
reserves and mineral resources included in this news release, 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, sociopolitical,
marketing or other relevant factors, please review the Technical
Report Summaries for each of the Company’s material properties
which are available at www.sec.gov.
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 before 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, 2021.
Notes
- EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash
flow, adjusted net income (loss), operating cash flow before
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. Please see table in Appendix
for the calculation of consolidated free cash flow.
- Excludes amortization.
- Includes capital leases. Net of debt issuance costs and premium
received.
- Reflects annual average for 2024 - 2034.
- As of December 31, 2021, Coeur had $35 million in outstanding
letters of credit and $65 million in borrowings under its RCF.
Average Spot Prices
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Average Gold Spot Price Per Ounce
$
1,799
$
1,795
$
1,781
$
1,816
$
1,794
$
1,770
$
1,874
Average Silver Spot Price Per Ounce
$
25.14
$
23.33
$
23.65
$
26.69
$
26.26
$
20.55
$
24.39
Average Zinc Spot Price Per Pound
$
1.36
$
1.52
$
1.37
$
1.32
$
1.25
$
1.03
$
1.19
Average Lead Spot Price Per Pound
$
1.00
$
1.05
$
1.06
$
0.97
$
0.91
$
0.83
$
0.86
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
December 31, 2021
December 31, 2020
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
56,664
$
92,794
Receivables
32,417
23,484
Inventory
51,281
51,210
Ore on leach pads
81,128
74,866
Prepaid expenses and other
13,847
27,254
Assets held for sale
54,240
—
289,577
269,608
NON-CURRENT ASSETS
Property, plant and equipment, net
319,967
230,139
Mining properties, net
852,799
716,790
Ore on leach pads
73,495
81,963
Restricted assets
9,138
9,492
Equity securities
132,197
12,943
Receivables
—
26,447
Other
57,249
56,595
TOTAL ASSETS
$
1,734,422
$
1,403,977
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
103,901
$
90,577
Accrued liabilities and other
87,946
119,158
Debt
29,821
22,074
Reclamation
2,931
2,299
Liabilities held for sale
11,269
—
235,868
234,108
NON-CURRENT LIABILITIES
Debt
457,680
253,427
Reclamation
178,957
136,975
Deferred tax liabilities
21,969
34,202
Other long-term liabilities
39,686
51,786
698,292
476,390
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 300,000,000 shares, 256,919,803 issued and outstanding
at December 31, 2021 and 243,751,283 at December 31, 2020
2,569
2,438
Additional paid-in capital
3,738,347
3,610,297
Accumulated other comprehensive income
(loss)
(1,212
)
(11,136
)
Accumulated deficit
(2,939,442
)
(2,908,120
)
800,262
693,479
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,734,422
$
1,403,977
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
Year Ended December
31,
2021
2020
2019
In thousands, except share
data
Revenue
$
832,828
$
785,461
$
711,502
COSTS AND EXPENSES
Costs applicable to sales(1)
511,539
440,335
551,181
Amortization
128,315
131,387
178,876
General and administrative
40,399
33,722
34,493
Exploration
51,169
42,643
22,527
Impairment of long-lived assets
—
—
250,814
Pre-development, reclamation, and
other
48,678
55,654
18,421
Total costs and expenses
780,100
703,741
1,056,312
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment
(9,173
)
—
(1,281
)
Fair value adjustments, net
(543
)
7,601
16,030
Interest expense, net of capitalized
interest
(16,451
)
(20,708
)
(24,771
)
Other, net
(22,925
)
(5,941
)
(3,193
)
Total other income (expense), net
(49,092
)
(19,048
)
(13,215
)
Income (loss) before income and mining
taxes
3,636
62,672
(358,025
)
Income and mining tax (expense)
benefit
(34,958
)
(37,045
)
11,129
Income (loss) from continuing
operations
$
(31,322
)
$
25,627
$
(346,896
)
Income (loss) from discontinued
operations
—
—
5,693
NET INCOME (LOSS)
$
(31,322
)
$
25,627
$
(341,203
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges
22,783
(12,434
)
(136
)
Reclassification adjustments for realized
(gain) loss on cash flow hedges
(12,859
)
1,434
—
Unrealized gain (loss) on debt and equity
securities
—
—
59
Other comprehensive income (loss)
9,924
(11,000
)
(77
)
COMPREHENSIVE INCOME (LOSS)
$
(21,398
)
$
14,627
$
(341,280
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing
operations
$
(0.13
)
$
0.11
$
(1.59
)
Net income (loss) from discontinued
operations
—
—
0.03
Basic
$
(0.13
)
$
0.11
$
(1.56
)
Diluted income (loss) per share:
Net income (loss) from continuing
operations
$
(0.13
)
$
0.11
$
(1.59
)
Net income (loss) from discontinued
operations
—
—
0.03
Diluted
$
(0.13
)
$
0.11
$
(1.56
)
(1) Excludes amortization.
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended December
31,
2021
2020
2019
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(31,322
)
$
25,627
$
(341,203
)
(Income) loss from discontinued
operations
—
—
(5,693
)
Adjustments:
Amortization
128,315
131,387
178,876
Accretion
12,897
11,984
12,147
Deferred taxes
(10,932
)
(7,283
)
(36,817
)
Loss on debt extinguishment
9,173
—
1,281
Fair value adjustments, net
543
(7,634
)
(16,030
)
Stock-based compensation
13,660
8,548
9,189
Gain on modification of right of use
lease
—
(4,051
)
—
Impairment of long-lived assets
—
—
250,814
Write-downs
38,596
16,821
69,246
Deferred revenue recognition
(16,226
)
(16,702
)
(1,857
)
Other
911
3,737
14,281
Changes in operating assets and
liabilities:
Receivables
(983
)
(9,463
)
(2,739
)
Prepaid expenses and other current
assets
489
(2,621
)
280
Inventory and ore on leach pads
(27,628
)
(34,538
)
(62,998
)
Accounts payable and accrued
liabilities
(7,011
)
32,897
23,103
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
110,482
148,709
91,880
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(309,781
)
(99,279
)
(99,772
)
Proceeds from the sale of assets
6,824
5,529
1,033
Purchase of investments
(1,955
)
(2,500
)
(5,023
)
Sale of investments
935
30,831
2,109
Proceeds from notes receivable
—
—
7,168
Other
(99
)
(252
)
1,919
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(304,076
)
(65,671
)
(92,566
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
—
—
123,059
Issuance of notes and bank borrowings, net
of issuance costs
592,493
150,000
60,000
Payments on debt, finance leases, and
associated costs
(430,101
)
(175,984
)
(221,854
)
Silvertip contingent consideration
—
(18,750
)
(18,697
)
Other
(4,256
)
(1,801
)
(3,404
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
158,136
(46,535
)
(60,896
)
Effect of exchange rate changes on cash
and cash equivalents
(423
)
649
531
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
(35,881
)
37,152
(61,051
)
Cash, cash equivalents and restricted cash
at beginning of period
94,170
57,018
118,069
Cash, cash equivalents and restricted cash
at end of period
$
58,289
$
94,170
$
57,018
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Net income (loss)
$
(31,322
)
$
(10,760
)
$
(54,768
)
$
32,146
$
2,060
$
25,627
$
11,880
Interest expense, net of capitalized
interest
16,451
3,211
3,237
5,093
4,910
20,708
4,719
Income tax provision (benefit)
34,958
432
6,400
15,340
12,786
37,045
25,027
Amortization
128,315
35,443
30,962
31,973
29,937
131,387
35,133
EBITDA
148,402
28,326
(14,169
)
84,552
49,693
214,767
76,759
Fair value adjustments, net
543
7,543
26,440
(37,239
)
3,799
(7,601
)
(4,110
)
Foreign exchange (gain) loss
2,779
479
1,028
499
773
2,245
1,581
Asset retirement obligation accretion
11,988
3,091
3,027
2,965
2,905
11,754
3,031
Inventory adjustments and write-downs
9,471
8,109
5,790
267
572
1,144
105
(Gain) loss on sale of assets and
securities
(4,111
)
471
92
(621
)
(4,053
)
2,484
391
Value-added tax write-off
25,982
—
25,982
—
—
—
Loss on debt extinguishment
9,173
—
—
—
9,173
—
Silvertip inventory write-down
—
—
—
—
—
13,717
—
Silvertip suspension costs
—
—
—
—
—
7,164
1,092
Silvertip lease modification
—
—
—
—
—
(4,051
)
—
Silvertip gain on contingent
consideration
—
—
—
—
—
(955
)
—
COVID-19 costs
6,618
681
617
2,315
3,005
15,555
5,138
Novation
—
—
—
—
—
3,819
—
Wharf inventory write-down
—
—
—
—
—
3,323
—
Adjusted EBITDA
$
210,845
$
48,700
$
48,807
$
52,738
$
65,867
$
263,365
$
83,987
Revenue
$
832,828
$
207,884
$
207,969
$
214,858
$
202,117
$
785,461
$
228,317
Adjusted EBITDA Margin
25
%
23
%
23
%
25
%
33
%
34
%
37
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Net income (loss)
$
(31,322
)
$
(10,760
)
$
(54,768
)
$
32,146
$
2,060
$
25,627
$
11,880
Fair value adjustments, net
543
7,543
26,440
(37,239
)
3,799
(7,601
)
(4,110
)
Foreign exchange loss (gain)
1,994
146
388
1,503
(43
)
(69
)
4,692
(Gain) loss on sale of assets and
securities
(4,111
)
471
92
(621
)
(4,053
)
2,484
391
Value-added tax write-off
25,982
—
25,982
—
—
—
Loss on debt extinguishment
9,173
—
—
—
9,173
—
Silvertip inventory write-down
—
—
—
—
—
13,717
—
Silvertip suspension costs
—
—
—
—
—
7,164
1,092
Silvertip lease modification
—
—
—
—
—
(4,051
)
—
Silvertip gain on contingent
consideration
—
—
—
—
—
(955
)
—
COVID-19 costs
6,618
681
617
2,315
3,005
15,555
5,138
Novation
—
—
—
—
—
3,819
—
Wharf inventory write-down
—
—
—
—
—
3,323
—
Tax effect of adjustments
(10,270
)
(9,696
)
(1,630
)
1,056
—
—
—
Adjusted net income (loss)
$
(1,393
)
$
(11,615
)
$
(2,879
)
$
(840
)
$
13,941
$
59,013
$
19,083
Adjusted net income (loss) per share -
Basic
$
(0.01
)
$
(0.05
)
$
(0.01
)
$
0.00
$
0.06
$
0.25
$
0.08
Adjusted net income (loss) per share -
Diluted
$
(0.01
)
$
(0.05
)
$
(0.01
)
$
0.00
$
0.06
$
0.24
$
0.08
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Cash flow from operations
$
110,482
$
34,936
$
21,846
$
58,059
$
(4,359
)
$
148,709
$
67,289
Capital expenditures
309,781
100,868
71,266
78,223
59,424
99,279
37,393
Free cash flow
$
(199,299
)
$
(65,932
)
$
(49,420
)
$
(20,164
)
$
(63,783
)
$
49,430
$
29,896
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
2021
4Q 2021
3Q 2021
2Q 2021
1Q 2021
2020
4Q 2020
Cash provided by (used in) operating
activities
$
110,482
$
34,936
$
21,846
$
58,059
$
(4,359
)
$
148,709
$
67,289
Changes in operating assets and
liabilities:
Receivables
983
1,999
944
(961
)
(999
)
9,463
5,617
Prepaid expenses and other
(489
)
104
80
(1,328
)
655
2,621
1,435
Inventories
27,628
9,581
3,820
(3,259
)
17,486
34,538
1,491
Accounts payable and accrued
liabilities
7,011
(8,831
)
8,114
(21,069
)
28,797
(32,897
)
(17,331
)
Operating cash flow before changes in
working capital
$
145,615
$
37,789
$
34,804
$
31,442
$
41,580
$
162,434
$
58,501
Reconciliation of Costs
Applicable to Sales
for Year Ended December 31,
2021
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)
$
189,717
$
151,427
$
187,998
$
104,617
$
4,797
$
638,556
Amortization
(36,062
)
(20,187
)
(54,933
)
(11,038
)
(4,797
)
(127,017
)
Costs applicable to sales
$
153,655
$
131,240
$
133,065
$
93,579
$
—
$
511,539
Inventory Adjustments
(203
)
(8,015
)
(512
)
(256
)
—
(8,986
)
By-product credit
—
—
(370
)
(2,208
)
—
(2,578
)
Adjusted costs applicable to
sales
$
153,452
$
123,225
$
132,183
$
91,115
$
—
$
499,975
Metal Sales
Gold ounces
108,806
27,697
122,181
91,663
350,347
Silver ounces
6,805,816
3,241,624
—
86,397
—
10,133,837
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
38
%
100
%
100
%
Silver
53
%
62
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
663
$
1,691
$
1,082
$
994
Silver ($/oz)
$
11.95
$
23.57
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31, 2021
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)
$
48,719
$
42,939
$
53,884
$
24,735
$
1,268
$
171,545
Amortization
(9,985
)
(5,433
)
(15,992
)
(2,411
)
(1,268
)
(35,089
)
Costs applicable to sales
$
38,734
$
37,506
$
37,892
$
22,324
$
—
$
136,456
Inventory Adjustments
(242
)
(7,483
)
(118
)
(53
)
—
(7,896
)
By-product credit
—
—
(123
)
(241
)
—
(364
)
Adjusted costs applicable to
sales
$
38,492
$
30,023
$
37,651
$
22,030
$
—
$
128,196
Metal Sales
Gold ounces
27,706
7,385
33,889
19,950
—
88,930
Silver ounces
1,813,884
800,195
—
2,614,079
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
42
%
100
%
100
%
Silver
53
%
58
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
653
$
1,707
$
1,111
$
1,104
Silver ($/oz)
$
11.25
$
21.76
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2021
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)
$
47,763
$
36,340
$
47,362
$
32,237
$
1,258
$
164,960
Amortization
(8,747
)
(4,671
)
(12,786
)
(3,158
)
(1,258
)
(30,620
)
Costs applicable to sales
$
39,016
$
31,669
$
34,576
$
29,079
$
—
$
134,340
Inventory Adjustments
(57
)
(5,217
)
(186
)
(61
)
—
(5,521
)
By-product credit
—
—
—
(428
)
—
(428
)
Adjusted costs applicable to
sales
$
38,959
$
26,452
$
34,390
$
28,590
$
—
$
128,391
Metal Sales
Gold ounces
24,897
5,559
29,902
29,446
—
89,804
Silver ounces
1,714,617
758,214
—
18,172
—
2,491,003
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
45
%
35
%
100
%
100
%
Silver
55
%
65
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
704
$
1,665
$
1,150
$
971
Silver ($/oz)
$
12.50
$
22.68
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2021
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)
$
50,189
$
44,537
$
41,913
$
26,437
$
1,185
$
164,261
Amortization
(8,271
)
(6,506
)
(12,710
)
(2,994
)
(1,185
)
(31,666
)
Costs applicable to sales
$
41,918
$
38,031
$
29,203
$
23,443
$
—
$
132,595
Inventory Adjustments
155
(272
)
(57
)
(91
)
—
(265
)
By-product credit
—
—
—
(839
)
—
(839
)
Adjusted costs applicable to
sales
$
42,073
$
37,759
$
29,146
$
22,513
$
—
$
131,491
Metal Sales
Gold ounces
30,516
7,818
26,796
23,371
—
88,501
Silver ounces
1,639,620
911,861
—
31,421
—
2,582,902
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
48
%
37
%
100
%
100
%
Silver
52
%
63
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
662
$
1,787
$
1,088
$
963
Silver ($/oz)
$
13.34
$
26.09
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2021
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)
$
43,047
$
27,610
$
44,839
$
21,207
$
1,086
$
137,789
Amortization
(9,059
)
(3,577
)
(13,445
)
(2,475
)
(1,086
)
(29,642
)
Costs applicable to sales
$
33,988
$
24,033
$
31,394
$
18,732
$
—
$
108,147
Inventory Adjustments
(57
)
(313
)
(151
)
(52
)
—
(573
)
By-product credit
—
—
—
(700
)
—
(700
)
Adjusted costs applicable to
sales
$
33,931
$
23,720
$
31,243
$
17,980
$
—
$
106,874
Metal Sales
Gold ounces
25,687
6,934
31,595
18,896
83,112
Silver ounces
1,637,695
771,354
—
26,455
—
2,435,504
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
38
%
100
%
100
%
Silver
53
%
62
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
621
$
1,300
$
989
$
952
Silver ($/oz)
$
10.98
$
19.07
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
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 Adjusted for Recovery Rate Adjustment
for Year Ended December 31,
2021
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)
$
189,717
$
151,427
$
187,998
$
104,617
$
4,797
$
638,556
Amortization
(36,062
)
(20,187
)
(54,933
)
(11,038
)
(4,797
)
(127,017
)
Costs applicable to sales
$
153,655
$
131,240
$
133,065
$
93,579
$
—
$
511,539
Inventory Adjustments
(203
)
(8,015
)
(512
)
(256
)
—
(8,986
)
Rochester recovery rate
adjustment
—
(8,628
)
—
—
—
(8,628
)
By-product credit
—
—
(370
)
(2,208
)
—
(2,578
)
Adjusted costs applicable to
sales
$
153,452
$
114,597
$
132,183
$
91,115
$
—
$
491,347
Metal Sales
Gold ounces
108,806
27,697
122,181
91,663
350,347
Silver ounces
6,805,816
3,241,624
—
86,397
—
10,133,837
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
38
%
100
%
100
%
Silver
53
%
62
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
663
$
1,572
$
1,082
$
994
Silver ($/oz)
$
11.95
$
21.92
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales for 2022 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)
$
211,800
$
148,540
$
185,494
$
106,175
Amortization
(34,183
)
(20,094
)
(48,763
)
(8,378
)
Costs applicable to sales
$
177,617
$
128,446
$
136,731
$
97,797
By-product credit
—
—
—
(1,802
)
Adjusted costs applicable to
sales
$
177,617
$
128,446
$
136,731
$
95,995
Metal Sales
Gold ounces
105,255
38,912
116,502
75,261
Silver ounces
6,501,289
3,405,155
75,093
Revenue Split
Gold
49%
46%
100%
100%
Silver
51%
54%
Adjusted costs applicable to
sales
Gold ($/oz)
$750 - $850
$1,490 - $1,590
$1,150 - $1,250
$1,225 - $1,325
Silver ($/oz)
$13.50 - $14.50
$20.75 - $22.75
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)
$
195,983
$
133,836
$
181,100
$
106,710
Amortization
(36,400
)
(17,560
)
(55,930
)
(11,550
)
Costs applicable to sales
$
159,583
$
116,276
$
125,170
$
95,160
By-product credit
—
—
—
(2,635
)
Adjusted costs applicable to
sales
$
159,583
$
116,276
$
125,170
$
92,525
Metal Sales
Gold ounces
107,500
29,800
123,500
91,400
Silver ounces
6,765,200
3,260,600
102,100
Revenue Split
Gold
46%
39%
100%
100%
Silver
54%
61%
—
—
Adjusted costs applicable to
sales
Gold ($/oz)
$635 - $735
$1,450 - $1,550
$1,010 - $1,110
$960 - $1,060
Silver ($/oz)
$11.75 - $12.75
$21.00 - $23.00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220216005402/en/
Coeur Mining, Inc. 104 S. Michigan Avenue, Suite 900 Chicago, IL
60603 Attention: Jeff Wilhoit, Director, Investor Relations Phone:
(312) 489-5800 www.coeur.com
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