Provides Full-Year 2020 Production and Cost
Guidance
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported fourth quarter 2019 financial results, including revenue
of $195.0 million and cash flow from operating activities of $39.3
million. Including non-cash write downs of $277.7 million taken in
the quarter, the Company reported GAAP net loss from continuing
operations of $270.9 million, or $1.13 per share. On an adjusted
basis1, the Company reported EBITDA of $59.8 million and net loss
from continuing operations of $3.3 million, or $0.01 per share.
For the full year, Coeur reported revenue of $711.5 million and
cash flow from operating activities of $91.9 million. Including
non-cash write downs totaling $320.0 million, the Company reported
GAAP net loss from continuing operations of $346.9 million, or
$1.59 per share. On an adjusted basis1, the Company reported EBITDA
of $173.9 million and net loss from continuing operations of $54.6
million, or $0.25 per share.
Key Highlights
- Solid improvement in annual financial results - Revenue,
operating cash flow and adjusted EBITDA1 increased 14%, 357% and
11%, respectively, in 2019. The year-over-year improvement in
financial results reflects solid performance from the Company’s
primary gold operations as well as higher precious metals prices in
2019
- Strong cost performance from primary gold operations -
Full-year adjusted costs applicable to sales (“CAS”)1 at Palmarejo,
Kensington and Wharf were below or within their guidance ranges for
2019, leading to strong free cash flow1 at each of these primary
gold operations. During 2019, gold sales represented 69% of the
Company’s total revenue
- Third consecutive quarter of increasing, positive free cash
flow1 - Coeur generated $18.4 million of free cash flow1 during
the fourth quarter, representing a 63% increase compared to the
prior period and a $36.1 million improvement compared to the fourth
quarter of 2018. This third consecutive quarter of increasing,
positive free cash flow1 was primarily driven by strong performance
from the Company’s Palmarejo, Kensington and Wharf operations
- Positive results from high-pressure grinding roll (“HPGR”)
unit at Rochester - 60-day silver recovery rates from
HPGR-crushed ore are in-line with prior test work and are
significantly better than recoveries from traditionally-crushed
material. Permitting and planning for Plan of Operations Amendment
11 (“POA 11”) expansion advancing on-schedule
- $250.8 million impairment, and temporarily suspending mining
and processing activities at Silvertip - Reduction in carrying
value to $150.0 million and temporary suspension of mining and
processing activities driven by further deterioration in zinc and
lead market conditions as well as processing facility-related
challenges. The Company plans to (i) double its exploration
investment in 2020 to potentially further expand the resource and
extend the mine life, and (ii) pursue a mill expansion to improve
the asset’s cost structure and its ability to deliver sustainable
cash flow
- Success from 2019 investment in exploration delivered
resource growth - The Company focused its exploration efforts
primarily on resource expansion drilling in 2019. Measured and
indicated resources increased across all metals, and inferred gold,
zinc and lead resources were higher year-over-year. Proven and
probable silver reserves also increased, while zinc and lead
reserves were consistent year-over-year
- Over $160.0 million reduction in total debt2 achieved during
2019 - The Company ended the year with $295.5 million in total
debt2, compared to $458.8 million at the end of 2018. This 36%
reduction reflects the results of Coeur’s deleveraging initiatives
and improved financial performance during 2019
“Higher precious metals prices and strong performance from our
primary gold operations drove a 14% increase in revenue, an 11%
increase in adjusted EBITDA1, and a four-fold increase in operating
cash flow,” said Mitchell J. Krebs, President and Chief Executive
Officer. “Our 2019 results reflect our strategy to discover,
develop, and operate a balanced portfolio of North American-based
precious metals assets. Palmarejo delivered over $65.0 million of
free cash flow1 last year while Wharf generated over $37.0 million
of free cash flow, bringing its cumulative free cash flow1 to over
$170.0 million since we acquired the operation in 2015 for $99.5
million. We were also pleased to see Kensington deliver record free
cash flow1 after a multi-year effort to discover and develop
higher-grade mineralization.”
“Despite a weaker than anticipated fourth quarter due to lower
crushing rates, our Rochester open-pit, silver-gold mine in Nevada
remains our top growth opportunity. We began processing ore through
a new crushing circuit during the second half of the year utilizing
HPGR technology. Early indications suggest that HPGR is having its
intended impact by increasing and accelerating silver recovery
rates. HPGR forms the basis of a larger expansion during the next
two years that is expected to position Rochester as a long-life,
strong cash flow generator for the Company.”
Mr. Krebs continued, “The decision to temporarily suspend
operating activities at Silvertip, which represented approximately
6% of the Company’s 2019 revenue, was driven by our goal of
maximizing the long-term value of the operation. While we have been
successful in executing key projects and improving mill
availability, the further deterioration in the zinc and lead
markets - particularly for spot concentrate treatment charges -
represents significant headwinds to our ability to generate
positive cash flow. While mining and processing activities are
paused, we plan to more than double our investment in drilling to
further expand Silvertip’s high-grade deposit and extend its mine
life. During 2019, we were able to grow Silvertip’s inferred
resources by over 70% and its measured and indicated resources by
nearly 40%. In addition, we have commenced a pre-feasibility study
to evaluate a mill expansion, which we believe will significantly
enhance Silvertip’s economics.”
“Looking ahead, our top priorities for 2020 are to (i) advance
and execute our strategy to further expand Rochester, (ii) increase
our level of investment in exploration, particularly at our most
prospective sites, (iii) evaluate and pursue a successful
repositioning of Silvertip, (iv) deliver consistent results from
our operations, leading to positive free cash flow1 and lower
overall costs, and (v) continue to enhance our leading
environmental, social and governance profile,” concluded Mr.
Krebs.
Financial and Operating Highlights
(Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce/pound
metrics)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Gold Sales
$
493.3
$
134.3
$
141.9
$
110.3
$
106.8
$
427.0
$
96.3
Silver Sales
$
191.5
$
54.8
$
51.6
$
45.0
$
40.1
$
193.2
$
44.6
Zinc Sales
$
12.8
$
2.6
$
2.0
$
2.6
$
5.6
$
3.6
$
1.9
Lead Sales
$
13.9
$
3.3
$
4.0
$
4.2
$
2.4
$
2.1
$
1.0
Consolidated Revenue
$
711.5
$
195.0
$
199.5
$
162.1
$
154.9
$
625.9
$
143.8
Costs Applicable to Sales3
$
551.2
$
146.6
$
141.0
$
131.9
$
131.7
$
441.0
$
116.6
General and Administrative
Expenses
$
34.5
$
7.6
$
9.6
$
7.8
$
9.5
$
31.3
$
7.1
Net Income (Loss)
$
(346.9
)
$
(270.9
)
$
(14.3
)
$
(36.8
)
$
(24.9
)
$
(49.0
)
$
0.4
Net Income (Loss) Per Share
$
(1.59
)
$
(1.13
)
$
(0.06
)
$
(0.18
)
$
(0.12
)
$
(0.26
)
$
0.00
Adjusted Net Income (Loss)1
$
(54.6
)
$
(3.3
)
$
(5.3
)
$
(23.0
)
$
(23.0
)
$
(2.2
)
$
16.1
Adjusted Net Income (Loss)1 Per
Share
$
(0.25
)
$
(0.01
)
$
(0.02
)
$
(0.11
)
$
(0.11
)
$
(0.01
)
$
0.08
Weighted Average Shares
Outstanding
218.8
238.7
225.9
207.8
202.4
188.6
199.5
EBITDA1
$
(154.4
)
$
(214.5
)
$
37.6
$
7.7
$
14.8
$
87.1
$
7.9
Adjusted EBITDA1
$
173.9
$
59.8
$
61.0
$
30.6
$
26.1
$
157.3
$
36.2
Cash Flow from Operating
Activities
$
91.9
$
39.3
$
42.0
$
26.4
$
(15.8
)
$
20.1
$
0.1
Capital Expenditures
$
99.8
$
21.0
$
30.7
$
20.7
$
27.4
$
140.8
$
17.8
Free Cash Flow1
$
(7.9
)
$
18.4
$
11.3
$
5.7
$
(43.3
)
$
(120.7
)
$
(17.7
)
Cash, Equivalents & Short-Term
Investments
$
55.6
$
55.6
$
65.3
$
37.9
$
69.0
$
115.1
$
115.1
Total Debt2
$
295.5
$
295.5
$
298.7
$
370.0
$
456.8
$
458.8
$
458.8
Average Realized Price Per Ounce –
Gold
$
1,342
$
1,407
$
1,413
$
1,277
$
1,251
$
1,218
$
1,214
Average Realized Price Per Ounce –
Silver
$
16.07
$
16.99
$
17.17
$
14.75
$
15.22
$
15.65
$
14.59
Average Realized Price Per Pound –
Zinc
$
0.71
$
0.62
$
0.50
$
0.49
$
1.19
$
0.83
$
0.83
Average Realized Price Per Pound –
Lead
$
0.84
$
0.78
$
0.92
$
0.82
$
0.86
$
0.80
$
0.80
Gold Ounces Produced
359,418
94,716
99,782
86,584
78,336
359,520
92,546
Silver Ounces Produced
11.7
3.1
3.0
3.1
2.5
12.8
3.5
Zinc Pounds Produced
17.1
3.9
4.2
5.3
3.7
4.2
3.1
Lead Pounds Produced
16.6
4.0
4.5
5.0
3.1
2.1
1.7
Gold Ounces Sold
367,650
95,532
100,407
86,385
85,326
350,508
79,291
Silver Ounces Sold
11.9
3.3
3.0
3.0
2.6
12.4
3.1
Zinc Pounds Sold
18.2
4.1
4.1
5.3
4.7
4.4
2.6
Lead Pounds Sold
16.5
4.3
4.3
5.2
2.7
2.6
1.4
Financial Results
Fourth quarter 2019 revenue of $195.0 million was slightly lower
compared to the prior period and 36% higher compared to the fourth
quarter of 2018. During the fourth quarter, the Company sold 95,532
ounces of gold, 3.3 million ounces of silver, 4.1 million pounds of
zinc and 4.3 million pounds of lead.
For the full year, the Company generated $711.5 million of
revenue, representing a 14% increase year-over-year. Full-year 2019
metal sales totaled 367,650 ounces of gold, 11.9 million ounces of
silver, 18.2 million pounds of zinc and 16.5 million pounds of
lead, compared to 350,508 ounces of gold, 12.4 million ounces of
silver, 4.4 million pounds of zinc and 2.6 million pounds of lead
in 2018.
Average realized gold and silver prices were slightly lower
quarter-over-quarter, totaling $1,407 and $16.99 per ounce,
respectively, and were both approximately 16% higher compared to
the fourth quarter of 2018. The average realized zinc price
increased 24% to $0.62 per pound during the quarter, while the
average realized lead price decreased 15% to $0.78 per pound.
For the full year, average realized gold and silver prices
increased 10% and 3%, respectively, to $1,342 and $16.07 per ounce.
The average realized zinc price decreased 14% year-over-year to
$0.71 per pound, while the average realized lead price increased 5%
to $0.84 per pound.
The average realized gold prices for the fourth quarter and full
year include the sale of 10,949 and 36,727 ounces of gold,
respectively, at a price of $800 per ounce pursuant to Palmarejo's
stream agreement. The average zinc and lead prices are presented
net of treatment and refining charges and reflect the impact of
provisional price and quantity adjustments.
Gold and silver sales accounted for 69% and 28% of fourth
quarter revenue, respectively, while zinc and lead accounted for
the remaining 3%. The Company’s U.S. operations accounted for
approximately 59% of fourth quarter revenue, relatively consistent
with the prior period.
During 2019, gold and silver sales contributed 69% and 27% of
full-year revenue, respectively, while zinc and lead sales
comprised the remaining 4%. For the full year, Coeur’s U.S.
operations contributed approximately 58% of metal sales, relatively
consistent year-over-year.
Costs applicable to sales totaled $146.6 million and $551.2
million for the fourth quarter and full year, respectively,
compared to $141.0 million and $441.0 million in the prior periods.
Higher costs during the fourth quarter were largely attributable to
an inventory adjustment at Wharf and elevated expense levels at
Silvertip compared to the fourth quarter of 2018. The
year-over-year increase in costs was largely attributable to a full
year of commercial production at the Jualin deposit (Kensington)
and Silvertip operation.
General and administrative expenses decreased 21%
quarter-over-quarter to $7.6 million and increased 10%
year-over-year to $34.5 million. Lower general and administrative
expense in the fourth quarter reflect lower employee-related
expenses and legal fees, while increased general and administrative
expense in 2019 reflect higher employee-related expenses and legal
fees.
Exploration expense for the fourth quarter and full year was
$7.2 million and $22.5 million, respectively, compared to $5.9
million in the third quarter and $25.4 million in 2018. The
majority of the Company’s expensed exploration investment in 2019
was focused on resource expansion targets at Palmarejo, Kensington,
Silvertip, and Sterling and Crown. See the “Operations” section and
page 16 for additional details on the Company’s exploration
activities in 2019.
Coeur recorded an income tax expense of $2.9 million during the
fourth quarter and an income tax benefit of $11.1 million for the
full year. Cash income and mining taxes paid during the quarter
were $2.1 million, bringing the full-year total to $33.7 million.
Cash taxes paid in 2019 primarily reflect income and mining tax
payments in Mexico and cash taxes related to the Company’s
acquisition of Northern Empire Resources Corp.
Fourth quarter operating cash flow totaled $39.3 million, a 6%
decrease quarter-over-quarter, reflecting higher cash outflow at
Silvertip, partially offset by higher cash flow at Kensington. The
improvement at Kensington was related to cash flows from its
prepayment arrangement under the existing off-take agreement. Coeur
delivered 7,038 gold ounces from Kensington during the fourth
quarter to fulfill its original $25.0 million prepayment
obligation. At the end of the quarter, the Company exercised its
option to receive an additional $15.0 million under the terms of
the original prepayment arrangement. Together, these transactions
contributed a net cash inflow of $4.7 million in the fourth
quarter.
Full-year 2019 operating cash flow totaled $91.9 million, over
four-times higher than in 2018. Significantly higher year-over-year
operating cash flow was largely driven by (i) solid operational
results from Palmarejo, Kensington and Wharf, (ii) higher gold and
silver prices, and (iii) favorable impacts from changes in working
capital.
Capital expenditures during the fourth quarter were $21.0
million (32% lower quarter-over-quarter and 18% higher than the
fourth quarter of 2018), bringing the full-year total to $99.8
million (29% lower year-over-year). Investment in capitalized
infill drilling, included in capital expenditures, totaled $1.9
million and $7.5 million for the fourth quarter and full year,
respectively. The majority of the Company’s capitalized exploration
investment in 2019 focused on infill targets at Palmarejo,
Rochester and Kensington. The decrease in total capital
expenditures during the year was largely attributable to lower
capital spending at Kensington and Silvertip, partially off-set by
increased investment at Rochester related to the new crusher
configuration. Sustaining and development capital expenditures
accounted for approximately 68% and 32%, respectively, of the
Company’s total capital investment in 2019.
Update on Hedging Strategy
Shortly after the end of the fourth quarter, Coeur implemented
an additional series of zero-cost collar hedges on a portion of its
gold production. Similar to the Company’s previous hedging program,
the structure allows for downside protection against potential
decreases in the price of gold, while enabling participation in the
potential upside to a specified ceiling price. An overview of the
2020 hedges implemented so far is outlined below:
- First quarter: 38,000 ounces of gold at an average floor of
$1,411 per ounce and an average ceiling of $1,806 per ounce;
- Second quarter: 42,000 ounces of gold at an average floor of
$1,417 per ounce and an average ceiling of $1,813 per ounce;
- Third quarter: 45,000 ounces of gold at an average floor of
$1,437 per ounce and an average ceiling of $1,814 per ounce;
and
- Fourth quarter: 54,000 ounces of gold at an average floor of
$1,471 per ounce and an average ceiling of $1,818 per ounce
Non-Cash Write Downs
Fourth quarter non-cash write downs of $277.7 million reflect
(i) an impairment on the carrying value of Silvertip’s long-lived
assets, (ii) an inventory adjustment related to concentrate at
Silvertip, and (iii) an inventory adjustment related to ore stacked
on a leach pad at Wharf. Full-year non-cash write downs of $320.0
million also include (i) inventory adjustments at Silvertip during
the first three quarters of 2019 and (ii) an adjustment with
respect to the partial settlement of a receivable associated with
the bankruptcy filing of Republic Metals Corp., which occurred in
2018.
Silvertip Update
The Company has elected to temporarily suspend mining and
processing activities at the Silvertip silver-zinc-lead mine in
British Columbia, Canada, which represented approximately 6% of the
Company’s revenue in 2019. Coeur has been focused on stabilizing
mill performance, which has shown signs of improvement, and
implementing cost optimization initiatives. Despite these efforts,
prevailing market conditions for lead and zinc concentrates remain
significant headwinds for the operation. During the temporary
suspension, the Company intends to significantly increase its
investment in exploration as well as pursue a mill expansion for a
modest capital investment estimated to be $50.0 - $75.0 million to
improve the asset’s cost structure and its ability to deliver
sustainable cash flow.
Coeur believes this approach will allow the Company to (i)
preserve and maximize the value of Silvertip’s orebody, (ii) reduce
near-term downside risk to cash flow, (iii) better determine the
economics of a mill expansion by completing a pre-feasibility study
around mid-year, (iv) build upon the successful drilling program in
2019, seeking to further expand the resource and extend Silvertip’s
mine life, and (v) potentially re-start the operation with an
improved cost structure in a more stable operating environment and
a longer mine life better capable of withstanding market downturns,
while generating more robust cash flow during stronger market
conditions.
The Company expects quarterly care and maintenance costs to
total approximately $6.0 million, excluding one-time costs of
approximately $5.0 - $10.0 million primarily related to employee
severance and contractual obligations, which are expected to be
incurred during the first half of 2020. In addition, Coeur expects
to commence an $8.0 - $10.0 million resource expansion drilling
program in March and to spend approximately $2.0 million on the
pre-feasibility study.
Operations
Fourth quarter and full-year 2019 highlights for each of the
Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons milled
1,755,957
486,779
442,464
447,727
378,987
1,382,471
378,389
Average gold grade (oz/t)
0.08
0.07
0.09
0.07
0.07
0.10
0.08
Average silver grade (oz/t)
4.85
5.11
4.88
4.74
4.64
6.49
5.96
Average recovery rate – Au
84.3%
84.9%
81.7%
87.7%
83.4%
88.9%
97.6%
Average recovery rate – Ag
79.3%
81.7%
79.6%
81.8%
72.8%
83.8%
84.0%
Gold ounces produced
111,932
28,702
31,779
28,246
23,205
122,722
31,239
Silver ounces produced (000’s)
6,762
2,029
1,720
1,735
1,278
7,516
1,893
Gold ounces sold
116,104
27,952
32,731
28,027
27,394
115,592
23,667
Silver ounces sold (000’s)
6,841
1,980
1,747
1,709
1,405
7,229
1,534
Average realized price per gold
ounce
$1,220
$1,238
$1,269
$1,210
$1,154
$1,140
$1,148
Average realized price per silver
ounce
$16.23
$17.28
$17.05
$14.86
$15.39
$15.77
$14.57
Metal sales
$252.7
$68.9
$71.3
$59.3
$53.2
$245.8
$49.6
Costs applicable to sales3
$141.9
$34.8
$37.4
$36.5
$33.2
$120.1
$27.1
Adjusted CAS per AuOz1
$683
$622
$660
$741
$713
$556
$624
Adjusted CAS per AgOz1
$9.11
$8.79
$8.95
$9.17
$9.66
$7.69
$7.92
Exploration expense
$5.7
$2.0
$1.6
$1.1
$1.0
$10.5
$0.1
Cash flow from operating
activities
$99.2
$41.4
$36.3
$15.6
$5.9
$50.5
$13.3
Sustaining capital expenditures
(excludes capital lease payments)
$21.9
$6.2
$4.7
$5.0
$6.0
$24.4
$3.6
Development capital
expenditures
$10.8
$2.4
$3.1
$2.6
$2.7
$5.0
$2.3
Total capital expenditures
$32.7
$8.6
$7.8
$7.6
$8.7
$29.4
$5.9
Free cash flow1
$66.5
$32.8
$28.5
$8.0
$(2.8)
$21.1
$7.4
Operational
- Fourth quarter gold production decreased 10% to 28,702 ounces,
while silver production increased 18% to 2.0 million ounces
compared to the prior quarter. Full-year gold and silver production
decreased by 9% and 10% to 111,932 and 6.8 million ounces,
respectively
- Fourth quarter gold and silver production benefited from higher
mill throughput, which increased 10% quarter-over-quarter. Lower
average gold grade led to decreased gold production during the
quarter, while an improvement in average silver grade resulted in
higher silver production. Lower full-year gold and silver
production was due to lower average grades, partially offset by a
27% increase in tons milled
- Production at La Nación, located within the Independencia mine
complex, continued to successfully ramp up, averaging approximately
700 tons per day ("tpd") during the fourth quarter, which was well
in excess of the 400 tpd target. Production from La Nación is
expected to remain at approximately 700 tpd in 2020
Financial
- Fourth quarter adjusted CAS1 for gold and silver on a
co-product basis decreased 6% and 2% to $622 and $8.79 per ounce,
respectively, compared to the prior quarter. Continued strong cost
performance during the quarter reflects higher average silver grade
and effective cost management
- For the full year, adjusted CAS1 for gold and silver increased
23% and 18%, respectively, to $683 and $9.11 per ounce, but
finished within full-year 2019 guidance ranges of $650 - $750 per
gold ounce and $9.00 - $10.00 per silver ounce. The year-over-year
increases were largely attributable to lower average grades, cost
pressures from exchange rates and inflation, mining through a
geotechnically-challenging environment and the increased reliance
on longitudinal stopes
- Fourth quarter and full-year capital expenditures increased 10%
and 11%, respectively, to $8.6 million and $32.7 million,
reflecting ongoing investment in mine development and
infrastructure projects
- Free cash flow1 in the fourth quarter increased 15% to $32.8
million, while free cash flow1 for the full year totaled $66.5
million and was over-three times higher compared to 2018. Improved
free cash flow1 for both periods reflects higher operating cash
flow, partially offset by increased investment
Exploration
- Exploration investment for the fourth quarter and full year
totaled approximately $2.9 million ($2.0 million expensed and $1.0
million capitalized) and $10.1 million ($5.7 million expensed and
$4.5 million capitalized), respectively
- Up to seven surface and underground core rigs were active
during the fourth quarter, focusing largely on resource expansion
drilling near the two underground mine complexes, Independencia and
Guadalupe
- For the full year, exploration activity was initially focused
on infill and resource expansion drilling around the Guadalupe mine
complex. As the year progressed, rigs were gradually migrated to
the Independencia mine complex where they focused on testing the
extension of veins to the north
- A total of 63 resource expansion holes and 85 infill holes were
completed in 2019
Guidance
- Full-year 2020 production is expected to be 95,000 - 110,000
ounces of gold and 6.3 - 7.8 million ounces of silver
- CAS are expected to be $785 - $885 per gold ounce and $10.35 -
$11.35 per silver ounce
- Capital expenditures are expected to be approximately $35 - $40
million
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Ore tons placed
10,582,518
2,612,319
2,516,353
2,786,287
2,667,559
16,169,807
3,674,566
Average silver grade (oz/t)
0.46
0.47
0.43
0.45
0.46
0.52
0.46
Average gold grade (oz/t)
0.003
0.003
0.004
0.003
0.003
0.004
0.004
Silver ounces produced (000’s)
3,761
848
982
971
960
5,038
1,466
Gold ounces produced
35,400
10,634
7,901
8,609
8,256
54,388
15,926
Silver ounces sold (000’s)
3,845
932
951
962
1,000
4,855
1,391
Gold ounces sold
36,052
11,248
7,651
8,642
8,511
52,789
15,339
Average realized price per silver
ounce
$16.07
$17.22
$17.02
$14.83
$15.31
$15.50
$14.53
Average realized price per gold
ounce
$1,393
$1,484
$1,476
$1,295
$1,299
$1,261
$1,234
Metal sales
$112.0
$32.6
$27.5
$25.5
$26.4
$141.8
$39.1
Costs applicable to sales3
$100.2
$25.3
$27.7
$24.7
$22.5
$105.7
$29.4
Adjusted CAS per AgOz1
$13.67
$13.25
$14.24
$13.19
$12.83
$11.44
$10.79
Adjusted CAS per AuOz1
$1,193
$1,142
$1,230
$1,153
$1,092
$930
$917
Exploration expense
$0.7
$0.4
$0.1
$0.1
$0.1
$0.3
$—
Cash flow from operating
activities
$15.8
$6.9
$8.3
$1.6
$(1.0)
$33.0
$17.9
Sustaining capital expenditures
(excludes capital lease payments)
$2.1
$0.9
$(1.0)
$0.4
$1.8
$10.7
$7.1
Development capital
expenditures
$20.5
$4.1
$11.2
$2.4
$2.8
$(0.8)
$(4.1)
Total capital expenditures
$22.6
$5.0
$10.2
$2.8
$4.6
$9.9
$3.0
Free cash flow1
$(6.8)
$1.9
$(1.9)
$(1.2)
$(5.6)
$23.1
$14.9
Operational
- Silver production decreased 14% quarter-over-quarter to
approximately 0.8 million ounces, while gold production increased
35% to 10,634 ounces. For the full year, silver and gold production
decreased 25% and 35% to 3.8 million and 35,400 ounces,
respectively
- Silver production in the fourth quarter was impacted by lower
than anticipated throughput rates related to the secondary crusher,
which reduced metal inventory on the Stage III and Stage IV leach
pads. Gold production increased largely due to the placement of
higher-grade material close to the liner of the Stage IV leach pad
early in the fourth quarter
Financial
- Fourth quarter adjusted CAS1 for silver and gold on a
co-product basis both decreased by approximately 7%
quarter-over-quarter, totaling $13.25 and $1,142 per ounce,
respectively, reflecting higher gold ounces sold
- Year-over-year adjusted CAS1 for silver and gold increased 19%
and 28%, respectively, to $13.67 and $1,193 per ounce. Higher unit
costs in 2019 reflect lower production levels and fewer ounces
sold, primarily due to the commissioning and ramp up of the new
crushing circuit
- Fourth quarter capital expenditures decreased 51% to $5.0
million, bringing the full-year total to $22.6 million (over double
the investment in 2018). Capital expenditures during the year were
focused on the new crushing circuit, further development of the
Stage IV leach pad and initial work on Plan of Operations Amendment
11
- Free cash flow1 totaled $1.9 million and $(6.8) million for the
fourth quarter and full year, respectively. Higher free cash flow1
in the fourth quarter resulted from increased metal sales and lower
capital expenditures, while full-year results were impacted by the
integration of the new crushing circuit
Exploration
- Exploration investment for the fourth quarter and full year
totaled approximately $1.0 million ($0.4 million expensed and $0.7
million capitalized) and $1.9 million ($0.7 million expensed and
$1.2 million capitalized), respectively
- An infill diamond drilling program was completed in the fourth
quarter. A portion of the program drilled four holes in the center
of the Rochester pit, while the other portion utilized directional
drilling techniques to test areas of potential mineralization under
the Stage I leach pad at East Rochester
- Drilling at the Lincoln Hill project, which was acquired from
Alio Gold Inc. in October 2018 for approximately $19.0 million and
is located approximately four miles west of Rochester, was also
completed during the fourth quarter. Exploration activity was
primarily focused on infill drilling to validate the previous
owner’s resource model and collect additional information regarding
mineralization and host rock
Other
- Overall crushing and placement rates were lower as a result of
the secondary crusher, which was installed in the beginning of the
third quarter to replace a failed larger unit. Coeur expects to
process approximately 34,000 tpd through the current crusher
configuration during 2020, down from initial expectations of 37,000
tpd. The Company is pursuing opportunities to increase throughput
rates to achieve this initial target
- Initial HPGR cells on the Stage IV leach pad indicate silver
recovery rates in-line with original expectations. The Company has
isolated approximately 194,000 tons on the north end of the Stage
IV leach pad that have exhibited a 60-day silver recovery rate of
approximately 60%, in-line with third-party test work and
substantially higher than traditionally-crushed and run-of-mine
material which historically exhibit silver recoveries of 36% and
13%, respectively, over the same time period
- The final Environmental Impact Statement has been published and
Coeur expects to receive the Record of Decision from the Bureau of
Land Management for POA11 towards the end of the first quarter. The
Company is completing engineering, procurement and construction
planning, and expects to request formal approval from its Board of
Directors to advance the project in mid-2020
- The Company plans to file an updated technical report in
accordance with Canadian National Instrument 43-101 in late 2020
further outlining the expansion, including an updated capital
estimate as well as additional operational and financial
information regarding the expected impacts of HPGR technology
Guidance
- Full-year 2020 production is expected to be 4.0 - 5.5 million
ounces of silver and 27,000 - 33,000 ounces of gold
- CAS in 2020 are expected to be $13.25 - $14.50 per silver ounce
and $1,175 - $1,325 per gold ounce
- Capital expenditures are expected to be approximately $28 - $35
million
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons milled
658,378
167,061
166,475
160,510
164,332
641,058
149,998
Average gold grade (oz/t)
0.21
0.20
0.22
0.23
0.20
0.18
0.21
Average recovery rate
91.0%
87.2%
93.2%
93.0%
90.2%
92.3%
91.1%
Gold ounces produced
127,914
29,736
34,156
34,049
29,973
105,570
28,421
Gold ounces sold
130,495
29,293
35,452
34,415
31,335
106,555
24,979
Average realized price per gold ounce,
gross
$1,408
$1,493
$1,505
$1,332
$1,301
$1,277
$1,267
Treatment and refining charges per gold
ounce
$20
$24
$20
$20
$15
$30
$21
Average realized price per gold ounce,
net
$1,388
$1,469
$1,485
$1,312
$1,286
$1,247
$1,246
Metal sales
$181.1
$43.0
$52.6
$45.2
$40.3
$132.9
$31.1
Costs applicable to sales3
$119.6
$28.8
$29.5
$29.1
$32.2
$112.4
$21.4
Adjusted CAS per AuOz1
$910
$976
$822
$842
$990
$1,050
$843
Prepayment, working capital cash
flow
$15.0
$4.7
$(14.7)
$25.0
$—
$—
$—
Exploration expense
$5.6
$1.6
$1.5
$2.0
$0.5
$5.9
$1.3
Cash flow from operating
activities
$72.0
$19.9
$4.5
$41.4
$6.2
$15.3
$7.9
Sustaining capital expenditures
(excludes capital lease payments)
$23.5
$4.3
$4.9
$4.9
$9.4
$37.2
$9.8
Development capital
expenditures
$—
$—
$—
$—
$—
$7.5
$0.8
Total capital expenditures
$23.5
$4.3
$4.9
$4.9
$9.4
$44.7
$10.6
Free cash flow1
$48.5
$15.6
$(0.4)
$36.5
$(3.2)
$(29.4)
$(2.7)
- Commercial production at Jualin was declared on December 1,
2018. The figures shown in the table above exclude pre-commercial
production
Operational
- Gold production decreased 13% quarter-over-quarter to 29,736
ounces, while full-year gold production increased 21% to 127,914
ounces
- Gold production in the fourth quarter was primarily driven by
lower average grade as a result of a change in mine sequencing.
Lower recoveries during the quarter reflect the settlement of gold
shipments made in prior periods
- Higher gold production in 2019 was primarily due to an 17%
increase in average grade, reflecting a full year of production
from the high-grade Jualin deposit
- Production from Jualin accounted for approximately 15% and 14%
of Kensington’s production during the fourth quarter and full year,
respectively
Financial
- Adjusted CAS1 increased 19% quarter-over-quarter to $976 per
ounce, largely due to fewer gold ounces sold. Full-year adjusted
CAS1 decreased 13% year-over-year to $910 per ounce, finishing
below the low end of its guidance range of $950 - $1,050 per ounce.
Strong unit cost performance throughout the year was driven by the
contribution of high-grade ore from the Jualin deposit
- Capital expenditures of $4.3 million were slightly lower
quarter-over-quarter, reflecting ongoing underground development.
Full-year capital expenditures decreased 47% year-over-year to
$23.5 million, primarily driven by lower investment in underground
development, infrastructure projects and infill drilling
- Free cash flow1 for the fourth quarter and full year totaled
$15.6 million and $48.5 million, respectively, and reflect the
impacts of the prepayment. Excluding the effect of the prepayment,
free cash flow1 totaled approximately $10.9 million and $33.5
million in the fourth quarter and full year, respectively
Exploration
- Exploration investment for the fourth quarter and full year
totaled approximately $1.7 million (substantially all expensed) and
$7.6 million ($5.6 million expensed and $2.0 million capitalized),
respectively
- Two underground core drill rigs were focused on resource
expansion drilling at the Eureka and Jualin veins as well as lower
Kensington Zone 10 during the fourth quarter. Results were
encouraging, particularly at Eureka, while assays from Zone 10 are
currently pending
- A total of 112 resource expansion holes and 42 infill holes
were completed in 2019
Guidance
- Production in 2020 is expected to be 115,000 - 130,000 ounces
of gold
- CAS in 2020 are expected to be $900 - $1,000 per ounce
- Capital expenditures are expected to be $24 - $28 million in
2020
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Ore tons placed
4,613,359
1,100,393
1,503,021
919,435
1,090,510
4,923,774
1,644,168
Average gold grade (oz/t)
0.023
0.023
0.027
0.023
0.020
0.022
0.020
Gold ounces produced
84,172
25,644
25,946
15,680
16,902
76,840
16,960
Silver ounces produced (000’s)
63
20
18
12
13
51
13
Gold ounces sold
84,999
27,039
24,573
15,301
18,086
75,572
15,306
Silver ounces sold (000’s)
64
21
17
12
14
48
11
Average realized price per gold
ounce
$1,416
$1,482
$1,481
$1,311
$1,317
$1,267
$1,247
Metal sales
$121.4
$40.5
$36.7
$20.2
$24.0
$96.5
$19.3
Costs applicable to sales3
$80.7
$25.7
$22.1
$15.5
$17.4
$67.2
$14.6
Adjusted CAS per AuOz1
$894
$802
$887
$1,002
$949
$876
$939
Exploration expense
$0.3
$0.2
$0.1
$—
$—
$0.1
$—
Cash flow from operating
activities
$39.3
$17.0
$17.6
$0.5
$4.2
$11.9
$(1.9)
Sustaining capital expenditures
(excludes capital lease payments)
$2.2
$0.8
$0.8
$0.2
$0.4
$3.4
$0.7
Development capital
expenditures
$—
$—
$—
$—
$—
$—
$—
Total capital expenditures
$2.2
$0.8
$0.8
$0.2
$0.4
$3.4
$0.7
Free cash flow1
$37.1
$16.2
$16.8
$0.3
$3.8
$8.5
$(2.6)
Operational
- Continued strong gold production totaled 25,644 ounces in the
fourth quarter, consistent with the prior period. Full-year gold
production increased 10% year-over-year to 84,172 ounces
- Consistent production during the quarter was primarily driven
by strong crusher performance, placement of additional tons in the
prior period and continued stacking of higher-grade ore
- Notably, second half gold production increased 58% from the
first half of 2019
Financial
- Adjusted CAS1 on a by-product basis decreased 10%
quarter-over-quarter to $802 per ounce, primarily driven by higher
gold and silver ounces sold. Full-year adjusted CAS1 was slightly
higher in 2019, totaling $894 per ounce but remaining within its
guidance range of $850 - $950 per ounce
- Fourth quarter capital expenditures of $0.8 million were
consistent quarter-over-quarter. Full-year capital expenditures
totaled $2.2 million, compared to $3.4 million in 2018, and were
primarily focused on equipment purchases
- Fourth quarter and full year free cash flow1 totaled $16.2
million and $37.1 million, respectively. Since acquiring the
operation in February 2015 for approximately $99.5 million, Wharf
has generated $172.8 million of free cash flow1
Exploration
- Exploration investment for the fourth quarter and full year was
minimal, reflecting limited drilling activity during 2019
- One drill rig completed a small exploration campaign at the
Richmond Hill project during the fourth quarter. Only eight holes
were completed due to the timing of the program and the arrival of
winter weather conditions; drilling is expected to restart in the
second quarter of 2020
Guidance
- Gold production in 2020 is expected to be 80,000 - 90,000
ounces. CAS are expected to be $1,025 - $1,125 per ounce
- Capital expenditures are expected to be approximately $2 - $3
million in 2020
Silvertip, British Columbia
(Dollars in millions, except per ounce
and per pound amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Tons milled
236,547
61,662
53,145
59,689
62,051
49,454
38,802
Average silver grade (oz/t)
6.84
6.97
7.54
7.48
5.50
6.19
6.06
Average zinc grade (%)
7.1%
7.5%
7.6%
7.5%
5.9%
6.2%
5.8%
Average lead grade (%)
4.8%
4.9%
5.4%
5.4%
3.7%
4.0%
3.9%
Average recovery rate – Ag
71.8%
65.1%
74.8%
77.0%
69.9%
59.6%
60.5%
Average recovery rate – Zn
50.8%
42.0%
51.7%
59.1%
50.5%
67.8%
69.1%
Average recovery rate – Pb
72.6%
66.4%
78.4%
77.3%
66.8%
52.5%
54.7%
Silver ounces produced (000's)
1,162
279
300
344
239
182
142
Zinc pounds produced (000's)
17,103
3,865
4,197
5,322
3,719
4,181
3,082
Lead pounds produced (000's)
16,556
4,021
4,478
4,980
3,077
2,072
1,659
Silver ounces sold (000's)
1,164
294
290
365
215
223
124
Zinc pounds sold (000's)
18,155
4,053
4,076
5,303
4,723
4,376
2,604
Lead pounds sold (000's)
16,488
4,223
4,331
5,186
2,748
2,649
1,419
Average realized price per silver
ounce, gross
$16.69
$16.61
$19.94
$15.18
$14.98
$15.00
$15.54
Treatment and refining charges per
silver ounce
$1.60
$2.34
$1.63
$1.18
$1.24
$0.84
$1.38
Average realized price per silver
ounce, net
$15.09
$14.27
$18.31
$14.00
$13.74
$14.16
$14.16
Average realized price per zinc pound,
gross
$1.06
$1.04
$0.86
$0.83
$1.50
$1.12
$1.07
Treatment and refining charges per zinc
pound
$0.35
$0.42
$0.36
$0.34
$0.31
$0.29
$0.24
Average realized price per zinc pound,
net
$0.71
$0.62
$0.50
$0.49
$1.19
$0.83
$0.83
Average realized price per lead pound,
gross
$0.91
$0.89
$0.98
$0.87
$0.92
$0.90
$0.87
Treatment and refining charges per lead
pound
$0.07
$0.11
$0.06
$0.05
$0.06
$0.10
$0.07
Average realized price per lead pound,
net
$0.84
$0.78
$0.92
$0.82
$0.86
$0.80
$0.80
Metal sales
$44.3
$10.2
$11.3
$11.9
$10.9
$8.9
$4.8
Costs applicable to sales3
$108.8
$32.0
$24.2
$26.2
$26.4
$35.6
$24.1
Adjusted CAS per AgOz1
$12.89
$11.22
$14.14
$13.31
$13.73
$14.16
$17.68
Adjusted CAS per ZnLb1
$0.95
$0.69
$0.75
$1.02
$1.18
$0.83
$0.95
Adjusted CAS per PbLb1
$0.72
$0.62
$0.71
$0.77
$0.88
$0.80
$1.02
Exploration expense
$2.5
$0.9
$0.8
$0.7
$0.1
$2.7
$0.3
Cash flow from operating
activities
$(69.4)
$(28.6)
$(15.3)
$(11.6)
$(13.9)
$(40.9)
$(34.1)
Sustaining capital expenditures
(excludes capital lease payments)
$17.5
$2.0
$6.4
$5.0
$4.1
$8.6
$8.2
Development capital
expenditures
$—
$—
$—
$—
$—
$44.3
$(10.8)
Total capital expenditures
$17.5
$2.0
$6.4
$5.0
$4.1
$52.9
$(2.6)
Free cash flow1
$(86.9)
$(30.6)
$(21.7)
$(16.6)
$(18.0)
$(93.8)
$(31.5)
- Silvertip achieved commercial production on September 1, 2018.
The figures shown in the table above exclude pre-commercial
production
Operational
- Fourth quarter silver, zinc and lead production decreased 7%,
8% and 10% quarter-over-quarter to 0.3 million ounces, 3.9 million
pounds and 4.0 million pounds, respectively. Production during the
quarter was driven primarily by lower average recovery rates as a
result of ongoing mill optimization initiatives
- Full-year silver, zinc and lead production totaled 1.2 million
ounces, 17.1 million pounds and 16.6 million pounds,
respectively
Financial
- Adjusted CAS1 figures shown in the table above and highlighted
below exclude the impact of non-cash write downs of metal
inventory
- Fourth quarter adjusted CAS1 on a co-product basis were $11.22
per silver ounce, $0.69 per payable zinc pound and $0.62 per
payable lead pound, compared to $12.89, $0.95 and $0.72,
respectively, for the full year
- Capital expenditures during the fourth quarter were $2.0
million and focused primarily on underground development. Full-year
capital expenditures totaled $17.5 million, significantly lower
year-over-year due to the commencement of commercial production on
September 1, 2018
- Free cash flow1 for the fourth quarter and full year totaled
$(30.6) million and $(86.9) million, respectively
Exploration
- Exploration investment for the fourth quarter and full year
totaled approximately $1.0 million (substantially all expensed) and
$1.3 million ($2.5 million expensed and $(0.9) million
capitalized), respectively
- Up to three surface core drill rigs were active during the
fourth quarter, focused primarily on expansion drilling at the
Discovery East, South and North zones. A total of 44 resource
expansion holes and eight infill holes were completed in 2019
Other
- Mill throughput increased 16% quarter-over-quarter to 61,662
tons but remained below target primarily due to extended planned
downtime, which was implemented to complete key projects targeting
improved mill availability
- Mill stability initiatives throughout 2019 led to improved
availability and more consistent operational performance late in
the fourth quarter and in the beginning of 2020. Notably, mill
availability averaged over 90% in January 2020
- Coeur paid the first milestone payment related the receipt of
its amended permit in the fourth quarter. The Company also paid the
second milestone payment tied to its year-end reserves and
resources in the first quarter of 2020. Each payment totaled $25.0
million, including approximately $18.8 million in cash and $6.3
million in stock
Guidance
- 2020 capital expenditures are expected to total $4 - $6
million
Exploration
During the fourth quarter, the Company drilled 142,385 feet
(43,400 meters) at a total investment of $9.1 million ($7.2 million
expensed and $1.9 million capitalized), compared to 110,361 feet
(33,638 meters) at a total investment of $7.5 million ($5.9 million
expensed and $1.6 million capitalized) in the third quarter. Total
feet drilled during the fourth quarter was approximately 29% higher
compared to the prior period, largely due to expansion drilling at
the Richmond Hill project near Wharf in South Dakota and drilling
at the Lincoln Hill project near Rochester in Nevada as well as
infill drilling at East Rochester.
For the full year, Coeur drilled 511,164 feet (155,805 meters)
at a total investment of $30.0 million ($22.5 million expensed and
$7.5 million capitalized), compared to 691,779 feet (210,857
meters) at a total investment of $44.0 million ($25.4 million
expensed and $18.6 million capitalized) in 2018. An update of
Coeur’s exploration activities during the year was released on
December 17, 2019, highlighting encouraging results from expansion
drilling at several of its operations. Please refer to the news
release for additional details4.
At the Sterling and Crown exploration properties in southern
Nevada, two reverse circulation rigs and a surface geology mapping
program were active during the fourth quarter. One rig focused on
expansion drilling at the SNA and Secret Pass deposits, which are
contained in the Crown Block. The second rig focused on drilling
extensions of known mineralization in and around the Sterling mine,
specifically targeting the higher-grade faults that controlled
oxide gold mineralization in historical mining areas. Expansion
drilling at both Sterling and the Crown Block is expected to
continue throughout 2020, including the addition of a third drill
rig to test a geophysical target on the northernmost area of the
Crown Block and a core drilling program to begin metallurgical work
in both zones.
At the La Preciosa project, located in Durango, Mexico, a new
geological model for the Martha and associated veins was completed
in the fourth quarter. Ground mapping and sampling were also
completed in new areas on the southern Martha structure, which were
not previously drilled. The Company successfully identified new
areas of mineralization; however, additional work will need to be
completed to verify the potential size and grade of the zones. The
new global resource estimate and further economic evaluation of the
project is expected to be completed in 2020.
2020 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
95,000 - 110,000
6,300 - 7,800
Rochester
27,000 - 33,000
4,000 - 5,500
Kensington
115,000 - 130,000
—
Wharf
80,000 - 90,000
—
Total
317,000 - 363,000
10,300 - 13,300
2020 Costs Applicable to Sales
Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$785 - $885
$10.35 - $11.35
Rochester (co-product)
$1,175 - $1,325
$13.25 - $14.50
Kensington
$900 - $1,000
—
Wharf (by-product)
$1,025 - $1,125
—
2020 Capital, Exploration and G&A
Guidance
($M)
Capital Expenditures,
Sustaining
$65 - $80
Capital Expenditures,
Development
$30 - $35
Exploration, Expensed
$38 - $44
Exploration, Capitalized
$6 - $10
General & Administrative
Expenses
$32 - $36
Note: The Company’s guidance figures assume $1,520/oz gold,
$17.25/oz silver, $1.00/lb zinc and $0.86/lb lead as well as CAD of
1.30 and MXN of 19.00.
Financial Results and Conference Call
Coeur will host a conference call to discuss its fourth quarter
and full-year 2019 financial results on February 20, 2020 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, Terry F. D.
Smith, Senior Vice President of Operations, Hans J. Rasmussen,
Senior Vice President of Exploration, and other members of
management. A replay of the call will be available through March 5,
2020.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088
(International)
Conference ID:
101 37 743
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 anticipated production, costs,
capital expenditures, recovery rates, throughput, exploration and
development efforts and plans, suspension of operations at
Silvertip, including anticipated costs associated therewith, a
pre-feasibility study regarding an expansion of the mill at
Silvertip, the impact of the new crushing circuit, permitting and
technical report preparation at Rochester, the prepayment
transaction at Kensington, our gold price hedging strategy, 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
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 variability, any
future labor disputes or work stoppages, 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 any third-party smelter to which Coeur
markets its production, the effects of environmental and other
governmental regulations, the risks inherent in the ownership or
operation of or investment in mining properties or businesses in
foreign countries, Coeur’s ability to raise additional financing
necessary to conduct its business, make payments or refinance its
debt, as well as other uncertainties and risk factors set out in
filings made from time to time with the United States Securities
and Exchange Commission, and the Canadian securities regulators,
including, without limitation, Coeur’s most recent report on Form
10-K. Actual results, developments and timetables could vary
significantly from the estimates presented. Readers are cautioned
not to put undue reliance on forward-looking statements. Coeur
disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of Coeur, its financial or operating
results or its securities.
Christopher Pascoe, Coeur’s Director, Technical Services and a
qualified person under Canadian National Instrument 43-101,
approved the scientific and technical information concerning
Coeur’s mineral projects in this news release. For a description of
the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification
procedures and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, socio-political, marketing or other
relevant factors, Canadian investors should refer to the Technical
Reports for each of Coeur’s properties as filed on SEDAR at
www.sedar.com.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information
determined under United States generally accepted accounting
principles (U.S. GAAP) with certain non-U.S. GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted EBITDA
margin, free cash flow, adjusted net income (loss) 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, 2019.
Notes
1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash
flow, adjusted net income (loss) 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.
2. Includes capital leases. Net of debt issuance costs and
premium received.
3. Excludes amortization.
4. https://www.coeur.com/_resources/news/nr_20191217.pdf.
Average Spot Prices
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Average Gold Spot Price Per Ounce
$
1,393
$
1,481
$
1,472
$
1,309
$
1,304
$
1,268
$
1,226
Average Silver Spot Price Per Ounce
$
16.21
$
17.32
$
16.98
$
14.88
$
15.57
$
15.71
$
14.54
Average Zinc Spot Price Per Pound
$
1.16
$
1.08
$
1.07
$
1.25
$
1.23
$
1.33
$
1.19
Average Lead Spot Price Per Pound
$
0.91
$
0.93
$
0.92
$
0.85
$
0.92
$
1.02
$
0.89
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
December 31, 2019
December 31, 2018
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
55,645
$
115,081
Receivables
18,666
29,744
Inventory
55,886
66,279
Ore on leach pads
66,192
75,122
Prepaid expenses and other
14,047
11,393
210,436
297,619
NON-CURRENT ASSETS
Property, plant and equipment, net
248,789
298,451
Mining properties, net
711,955
971,567
Ore on leach pads
71,539
66,964
Restricted assets
8,752
12,133
Equity and debt securities
35,646
17,806
Receivables
28,709
31,151
Other
62,810
16,809
TOTAL ASSETS
$
1,378,636
$
1,712,500
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
69,176
$
47,210
Accrued liabilities and other
95,616
82,619
Debt
22,746
24,937
Reclamation
3,114
6,552
190,652
161,318
NON-CURRENT LIABILITIES
Debt
272,751
433,889
Reclamation
133,417
128,994
Deferred tax liabilities
41,976
79,070
Other long-term liabilities
72,836
56,717
520,980
698,670
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 300,000,000 shares, 241,529,021 issued and outstanding
at December 31, 2019 and 203,310,443 at December 31, 2018
2,415
2,033
Additional paid-in capital
3,598,472
3,443,082
Accumulated other comprehensive income
(loss)
(136
)
(59
)
Accumulated deficit
(2,933,747
)
(2,592,544
)
667,004
852,512
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,378,636
$
1,712,500
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
Year ended December
31,
2019
2018
2017
In thousands, except share
data
Revenue
$
711,502
$
625,904
$
709,598
COSTS AND EXPENSES
Costs applicable to sales(1)
551,181
440,950
440,260
Amortization
178,876
128,473
146,549
General and administrative
34,493
31,345
33,616
Exploration
22,527
25,397
30,311
Impairment of long-lived assets
250,814
—
—
Pre-development, reclamation, and
other
18,421
20,043
18,936
Total costs and expenses
1,056,312
646,208
669,672
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment
(1,281
)
—
(9,342
)
Fair value adjustments, net
16,030
3,638
(864
)
Interest expense, net of capitalized
interest
(24,771
)
(24,364
)
(16,440
)
Other, net
(3,193
)
(24,705
)
26,643
Total other income (expense), net
(13,215
)
(45,431
)
(3
)
Income (loss) before income and mining
taxes
(358,025
)
(65,735
)
39,923
Income and mining tax (expense)
benefit
11,129
16,780
(28,998
)
Income (loss) from continuing
operations
$
(346,896
)
$
(48,955
)
$
10,925
Income (loss) from discontinued
operations
5,693
550
(12,244
)
NET INCOME (LOSS)
$
(341,203
)
$
(48,405
)
$
(1,319
)
OTHER COMPREHENSIVE INCOME (LOSS), net of
tax:
Unrealized gain (loss) on debt and equity
securities
26
3,227
Reclassification adjustments for
impairment of equity securities
—
—
426
Reclassification adjustments for realized
(gain) loss on sale of equity securities
—
—
1,354
Other comprehensive income (loss)
(77
)
26
5,007
COMPREHENSIVE INCOME (LOSS)
$
(341,280
)
$
(48,379
)
$
3,688
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing
operations
$
(1.59
)
$
(0.26
)
$
0.06
Net income (loss) from discontinued
operations
0.03
—
(0.07
)
Basic(2)
$
(1.56
)
$
(0.26
)
$
(0.01
)
Diluted income (loss) per share:
Net income (loss) from continuing
operations
$
(1.59
)
$
(0.26
)
$
0.06
Net income (loss) from discontinued
operations
0.03
—
(0.07
)
Diluted(2)
$
(1.56
)
$
(0.26
)
$
(0.01
)
(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,
2019
2018
2017
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(341,203
)
$
(48,405
)
$
(1,319
)
(Income) loss from discontinued
operations
(5,693
)
(550
)
12,244
Adjustments:
Amortization
178,876
128,473
146,549
Accretion
12,147
13,933
9,980
Deferred taxes
(36,817
)
(48,441
)
(13,888
)
Loss on debt extinguishment
1,281
—
9,342
Fair value adjustments, net
(16,030
)
(3,638
)
864
Stock-based compensation
9,189
8,328
10,541
Gain on sale of the Joaquin project
—
—
(21,138
)
Impairment of long-lived assets
250,814
—
—
Write-downs
69,246
55,297
—
Deferred revenue recognition
(1,857
)
—
Other
14,281
7,353
(7,974
)
Changes in operating assets and
liabilities:
Receivables
(2,739
)
(9,260
)
18,895
Prepaid expenses and other current
assets
280
4,876
(2,015
)
Inventory and ore on leach pads
(62,998
)
(44,488
)
23,517
Accounts payable and accrued
liabilities
23,103
(43,370
)
11,562
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES OF CONTINUING OPERATIONS
91,880
20,108
197,160
CASH USED IN OPERATING ACTIVITIES OF
DISCONTINUED OPERATIONS
—
(2,690
)
11,296
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
91,880
17,418
208,456
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(99,772
)
(140,787
)
(136,734
)
Acquisitions, net
—
6,914
(156,248
)
Proceeds from the sale of assets
1,033
577
16,705
Purchase of investments
(5,023
)
(426
)
(15,058
)
Sale of investments
2,109
12,713
11,321
Proceeds from notes receivable
7,168
19,000
—
Other
1,919
11
2,864
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES OF CONTINUING OPERATIONS
(92,566
)
(101,998
)
(277,150
)
CASH USED IN INVESTING ACTIVITIES OF
DISCONTINUED OPERATIONS
—
(28,470
)
(1,392
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(92,566
)
(130,468
)
(278,542
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
123,059
—
—
Issuance of notes and bank borrowings, net
of issuance costs
60,000
95,000
342,620
Payments on debt, finance leases, and
associated costs
(221,854
)
(95,059
)
(203,045
)
Silvertip contingent consideration
(18,697
)
—
—
Other
(3,404
)
(5,160
)
(3,746
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES OF CONTINUING OPERATIONS
(60,896
)
(5,219
)
135,829
CASH USED IN FINANCING ACTIVITIES OF
DISCONTINUED OPERATIONS
—
(22
)
(84
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
(60,896
)
(5,241
)
135,745
Effect of exchange rate changes on cash
and cash equivalents
531
28
203
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
(61,051
)
(118,263
)
65,862
Less net cash used in discontinued
operations(1)
—
(32,930
)
(10,939
)
(61,051
)
(85,333
)
76,801
Cash, cash equivalents and restricted cash
at beginning of period
118,069
203,402
126,601
Cash, cash equivalents and restricted cash
at end of period
$
57,018
$
118,069
$
203,402
(1) Less net cash used in discontinued operations includes the
following cash transactions: net subsidiary payments to parent
company of $1,748 and 20,759,000 during the years ended December
31, 2018 and 2017.
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Net income (loss)
$
(341,203
)
$
(270,961
)
$
(14,277
)
$
(36,764
)
$
(19,201
)
$
(48,405
)
$
468
(Income) loss from discontinued
operations, net of tax
(5,693
)
—
—
—
(5,693
)
(550
)
—
Interest expense, net of capitalized
interest
24,771
5,512
5,980
6,825
6,454
24,364
6,563
Income tax provision (benefit)
(11,129
)
2,857
218
(5,546
)
(8,658
)
(16,780
)
(36,231
)
Amortization
178,876
48,118
45,678
43,204
41,876
128,473
37,053
EBITDA
(154,378
)
(214,474
)
37,599
7,719
14,778
87,102
7,853
Fair value adjustments, net
(16,030
)
(7,829
)
(4,377
)
5,296
(9,120
)
(3,638
)
(731
)
Foreign exchange (gain) loss
4,346
268
2,945
468
665
9,069
1,986
Asset retirement obligation accretion
12,154
3,124
3,080
3,007
2,943
11,116
2,747
Inventory adjustments and write-downs
5,904
363
5,371
2,193
1,623
2,093
858
(Gain) loss on sale of assets and
securities
714
594
100
72
(52
)
(19
)
298
Impairment of long-lived assets
250,814
250,814
—
—
—
—
—
Silvertip inventory write-down
64,610
23,325
13,966
11,872
15,447
26,720
17,974
Wharf inventory write-down
3,596
3,596
—
—
—
—
—
Loss on debt extinguishment
1,282
—
1,282
—
—
—
—
Receivable write-down
1,040
—
1,040
—
—
6,536
6,536
Interest income on notes receivables
(198
)
—
—
(18
)
(180
)
(1,776
)
(327
)
Manquiri sale consideration write-down
—
—
—
—
18,599
—
Rochester In-Pit crusher write-down
—
—
—
—
—
3,441
—
Mexico inflation adjustment
—
—
—
—
—
(1,939
)
—
Transaction costs
—
—
—
—
—
5
(1,044
)
Adjusted EBITDA
$
173,854
$
59,781
$
61,006
$
30,609
$
26,104
$
157,309
$
36,150
Revenue
$
711,502
$
195,040
$
199,469
$
162,123
$
154,870
$
625,904
143,855
Adjusted EBITDA Margin
24
%
31
%
31
%
19
%
17
%
25
%
25
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2019
4Q 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Net income (loss)
$
(341,203
)
$
(270,961
)
$
(14,277
)
$
(36,764
)
$
(19,201
)
$
(48,405
)
$
468
Income loss from discontinued operations,
net of tax
(5,693
)
—
—
—
(5,693
)
(550
)
—
Fair value adjustments, net
(16,030
)
(7,829
)
(4,377
)
5,296
(9,120
)
(3,638
)
(731
)
Foreign exchange loss (gain)
5,900
1,733
2,022
889
1,256
8,611
(530
)
(Gain) loss on sale of assets and
securities
714
594
100
72
(52
)
(19
)
326
Impairment of long-lived assets
250,814
250,814
—
—
—
—
—
Silvertip inventory write-down
64,610
23,325
13,966
11,872
15,447
26,720
17,974
Wharf inventory write-down
3,596
3,596
—
—
—
—
—
Loss on debt extinguishment
1,282
—
1,282
—
—
—
Receivable write-down
1,040
—
1,040
—
—
6,536
6,536
Interest income on notes receivables
(198
)
—
—
(18
)
(180
)
(1,776
)
(327
)
Manquiri sale consideration write-down
—
—
—
—
—
18,599
—
Rochester In-Pit crusher write-down
—
—
—
—
—
3,441
—
Gain on repurchase of Rochester
royalty
—
—
—
—
—
—
(28
)
Mexico inflation adjustment
—
—
—
—
—
(1,939
)
—
Transaction costs
—
—
—
—
—
5
(1,044
)
Tax effect of adjustments(1)
(19,415
)
(4,572
)
(5,096
)
(4,332
)
(5,415
)
(9,750
)
(6,559
)
Adjusted net income (loss)
$
(54,583
)
$
(3,300
)
$
(5,340
)
$
(22,985
)
$
(22,958
)
$
(2,165
)
$
16,085
Adjusted net income (loss) per share -
Basic
$
(0.25
)
$
(0.01
)
$
(0.02
)
$
(0.11
)
$
(0.11
)
$
(0.01
)
$
0.08
Adjusted net income (loss) per share -
Diluted
$
(0.25
)
$
(0.01
)
$
(0.02
)
$
(0.11
)
$
(0.11
)
$
(0.01
)
$
0.08
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2019
Q4 2019
3Q 2019
2Q 2019
1Q 2019
2018
4Q 2018
Cash flow from continuing operations
$
91,880
$
39,295
$
41,996
$
26,435
$
(15,846
)
$
20,108
$
72
Capital expenditures from continuing
operations
99,772
20,907
30,678
20,749
27,438
140,787
17,805
Free cash flow
$
(7,892
)
$
18,388
$
11,318
$
5,686
$
(43,284
)
(120,679
)
$
(17,733
)
Reconciliation of Costs
Applicable to Sales
for Year Ended December 31,
2019
In thousands except 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 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 Three Months Ended
September 30, 2019
In thousands except per ounce or per
pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
53,237
$
31,999
$
43,085
$
25,385
$
32,457
$
186,163
Amortization
(15,840
)
(4,250
)
(13,552
)
(3,301
)
(8,268
)
(45,211
)
Costs applicable to sales
$
37,397
$
27,749
$
29,533
$
22,084
$
24,189
$
140,952
Inventory Adjustments
(175
)
(4,799
)
(405
)
(7
)
(13,966
)
(19,352
)
By-product credit
—
—
—
(293
)
—
(293
)
Adjusted costs applicable to
sales
$
37,222
$
22,950
$
29,128
$
21,784
$
10,223
$
121,307
Metal Sales
Gold ounces
32,731
7,651
35,452
24,573
100,407
Silver ounces
1,747,250
951,043
16,612
289,910
3,004,815
Zinc pounds
4,076,390
4,076,390
Lead pounds
4,330,862
4,330,862
Revenue Split
Gold
58
%
41
%
100
%
100
%
Silver
42
%
59
%
39
%
Zinc
29
%
Lead
32
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
660
$
1,230
$
822
$
887
Silver ($/oz)
$
8.95
$
14.24
$
14.14
Zinc ($/lb)
$
0.75
Lead ($/lb)
$
0.71
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2019
In thousands except per ounce or per
pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
50,708
$
28,656
$
41,670
$
17,691
$
36,038
$
174,763
Amortization
(14,212
)
(3,963
)
(12,537
)
(2,225
)
(9,878
)
(42,815
)
Costs applicable to sales
$
36,496
$
24,693
$
29,133
$
15,466
$
26,160
$
131,948
Inventory Adjustments
(39
)
(2,045
)
(156
)
48
(11,872
)
(14,064
)
By-product credit
—
—
—
(188
)
—
(188
)
Adjusted costs applicable to
sales
$
36,457
$
22,648
$
28,977
$
15,326
$
14,288
$
117,696
Metal Sales
Gold ounces
28,027
8,642
34,415
15,301
—
86,385
Silver ounces
1,709,406
961,634
12,364
364,961
3,048,365
Zinc pounds
5,302,508
5,302,508
Lead pounds
5,185,634
5,185,634
Revenue Split
Gold
57
%
44
%
100
%
100
%
Silver
43
%
56
%
34
%
Zinc
38
%
Lead
28
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
741
$
1,153
$
842
$
1,002
Silver ($/oz)
$
9.17
$
13.19
$
13.31
Zinc ($/lb)
$
1.02
Lead ($/lb)
$
0.77
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2019
In thousands except per ounce or per
pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
47,772
$
26,491
$
43,902
$
20,073
$
34,811
$
173,049
Amortization
(14,528
)
(4,037
)
(11,727
)
(2,681
)
(8,426
)
(41,399
)
Costs applicable to sales
$
33,244
$
22,454
$
32,175
$
17,392
$
26,385
$
131,650
Inventory Adjustments
(141
)
(323
)
(1,164
)
(5
)
(15,447
)
(17,080
)
By-product credit
—
—
—
(217
)
—
(217
)
Adjusted costs applicable to
sales
$
33,103
$
22,131
$
31,011
$
17,170
$
10,938
$
114,353
Metal Sales
Gold ounces
27,394
8,511
31,335
18,086
85,326
Silver ounces
1,405,409
1,000,453
—
14,052
215,101
2,635,015
Zinc pounds
4,723,069
4,723,069
Lead pounds
2,747,847
2,747,847
Revenue Split
Gold
59
%
42
%
100
%
100
%
Silver
41
%
58
%
27
%
Zinc
51
%
Lead
22
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
713
$
1,092
$
990
$
949
Silver ($/oz)
$
9.66
$
12.83
$
13.73
Zinc ($/lb)
$
1.18
Lead ($/lb)
$
0.88
Reconciliation of Costs
Applicable to Sales
for Year Ended December 31,
2018
In thousands except per ounce or per
pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
180,832
$
126,586
$
141,872
$
78,273
$
40,855
$
568,418
Amortization
(60,744
)
(20,909
)
(29,508
)
(11,072
)
(5,235
)
(127,468
)
Costs applicable to sales
$
120,088
$
105,677
$
112,364
$
67,201
$
35,620
$
440,950
Inventory Adjustments
(254
)
(1,063
)
(497
)
(279
)
(26,720
)
(28,813
)
By-product credit
—
—
—
(746
)
—
(746
)
Adjusted costs applicable to
sales
$
119,834
$
104,614
$
111,867
$
66,176
$
8,900
$
411,391
Metal Sales
Gold ounces
115,592
52,789
106,555
75,572
350,508
Silver ounces
7,229,179
4,854,579
48,085
222,974
12,354,817
Zinc pounds
4,375,995
4,375,995
Lead pounds
2,648,920
2,648,920
Revenue Split
Gold
54
%
47
%
100
%
100
%
Silver
46
%
53
%
35
%
Zinc
41
%
Lead
24
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
556
$
930
$
1,050
$
876
Silver ($/oz)
$
7.69
$
11.44
$
14.16
Zinc ($/lb)
$
0.83
Lead ($/lb)
$
0.80
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31, 2018
In thousands except per ounce or per
pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
42,119
$
35,365
$
30,703
$
16,839
$
28,246
$
153,272
Amortization
(14,992
)
(5,992
)
(9,437
)
(2,184
)
(4,161
)
(36,766
)
Costs applicable to sales
$
27,127
$
29,373
$
21,266
$
14,655
$
24,085
$
116,506
Inventory Adjustments
(205
)
(312
)
(220
)
(121
)
(17,974
)
(18,832
)
By-product credit
—
—
—
(166
)
—
(166
)
Adjusted costs applicable to
sales
$
26,922
$
29,061
$
21,046
$
14,368
$
6,111
$
97,508
Metal Sales
Gold ounces
23,667
15,338
24,979
15,306
79,290
Silver ounces
1,534,595
1,389,916
—
10,932
124,144
3,059,587
Zinc pounds
2,603,972
2,603,972
Lead pounds
1,418,653
1,418,653
Revenue Split
Gold
55
%
48
%
100
%
100
%
Silver
45
%
52
%
36
%
Zinc
40
%
Lead
24
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
624
$
917
$
843
$
939
Silver ($/oz)
$
7.92
$
10.79
$
17.68
Zinc ($/lb)
$
0.95
Lead ($/lb)
$
1.02
Reconciliation of Costs
Applicable to Sales for 2020 Guidance
In thousands except per ounce
amounts
Palmarejo
Rochester
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
214,717
$
132,647
$
184,651
$
100,828
Amortization
(57,235
)
(20,798
)
(62,001
)
(13,403
)
Costs applicable to sales
$
157,482
$
111,849
$
122,650
$
87,425
By-product credit
—
—
—
(806
)
Adjusted costs applicable to
sales
$
157,482
$
111,849
$
122,650
$
86,619
Metal Sales
Gold ounces
102,500
30,000
125,000
82,200
Silver ounces
7,000,000
5,300,000
46,700
Revenue Split
Gold
53%
35%
100%
100%
Silver
47%
65%
—
—
Adjusted costs applicable to
sales
Gold ($/oz)
$785 - $885
$1,175 - $1,325
$900 - $1,000
$1,025 - $1,125
Silver ($/oz)
$10.35 - $11.35
$13.25 - $14.50
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200219005956/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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