14% Decline in Adjusted AISC1 Drives 46% Growth
in Quarterly Adjusted EBITDA1 to $34.6 million
Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE)
reported first quarter 2016 revenue of $148.4 million, adjusted
EBITDA1 of $34.6 million, adjusted net loss1 of $0.04 per share,
and cash flow from operating activities of $6.6 million2. The
Company sold 3.5 million ounces of silver and 79,091 ounces of gold
and during the quarter.
Adjusted all-in sustaining costs per realized silver equivalent
ounce1 of $13.73 dropped 14% compared to the same quarter last year
(9% decline assuming a constant 60:1 ratio). Adjusted costs
applicable to sales per realized silver equivalent ounce1 of $11.08
declined 14% compared with the first quarter last year (12% decline
assuming a constant 60:1 ratio). Adjusted costs applicable to sales
per gold equivalent ounce1 of $721 declined 10% compared to the
first quarter last year.
Highlights
- Silver production was 3.4 million
ounces and gold production was 78,072 ounces, or 8.1 million silver
equivalent ounces1, as previously announced on April 7, 2016
- Silver sales were 3.5 million ounces
and gold sales were 79,091 ounces, or 8.3 million silver equivalent
ounces1
- Adjusted all-in sustaining costs were
$13.73 per realized silver equivalent ounce1. Using a 60:1
equivalence, adjusted all-in sustaining costs were $16.05 per
silver equivalent ounce1
- Adjusted costs applicable to sales were
$11.08 per realized silver equivalent ounce1. Using a 60:1
equivalence, adjusted costs applicable to sales per silver
equivalent ounce1 were $12.05
- Adjusted costs applicable to sales per
gold equivalent ounce1 were $721
- Adjusted EBITDA1 was $34.6 million, a
16% increase from the fourth quarter 2015
- Capital expenditures totaled $22.2
million, driven by development of the Jualin deposit at Kensington
and the Guadalupe and Independencia underground deposits at
Palmarejo
- Cash and equivalents of $173.4 million
at March 31, 2016
- Expected total consideration of $24.8
million from sales of non-core assets
"I am pleased with our strong cost performance in the first
quarter, which is tracking at the low-end of cost guidance set at
the beginning of the year," said Mitchell J. Krebs, Coeur's
President and Chief Executive Officer. "These sustained lower
operating costs, combined with the positive momentum we have seen
in silver and gold prices so far this year, have led to a 16%
increase in adjusted EBITDA1 to $34.6 million.
"We have made significant progress repositioning our assets
through industry-leading cost reductions, operational efficiency
improvements, and the focus on higher-quality, higher-margin silver
and gold ounces, which is reflected in this quarter's results. As
underground production rates continue to accelerate at the
Guadalupe and Independencia deposits at Palmarejo, ore placement
rates at Rochester increase, development of higher-grade
mineralization at Kensington progresses, and with the first
full-year of contribution from the Wharf mine which we acquired
last year, we are well-positioned to generate strong free cash flow
later this year."
Financial
Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
1Q 2016 4Q 2015 3Q 2015
2Q 2015 1Q 2015
Revenue $
148.4 $ 164.2 $ 162.6 $ 166.3 $ 153.0
Costs Applicable to
Sales $ 101.6 $ 125.3 $ 120.2 $ 119.1 $ 115.1
General and Administrative Expenses $ 8.3 $
8.8 $ 6.7 $ 8.5 $ 8.8
Adjusted EBITDA1 $
34.6 $ 29.8 $ 31.4 $ 34.7 $ 23.7
Net Income (Loss)
$ (20.4 ) $ (303.0 ) $ (14.2 ) $ (16.7 ) $
(33.3 )
Net Income (Loss) Per Share $ (0.14
) $ (2.28 ) $ (0.11 ) $ (0.12 ) $ (0.32 )
Adjusted Net
Income (Loss)1 $ (6.6 ) $ (38.6 ) $
(21.8 ) $ (14.5 ) $ (19.2 )
Adjusted Net Income
(Loss)1 Per Share $ (0.04 )
$ (0.27 ) $ (0.16 ) $ (0.11 ) $ (0.19 )
Weighted Average
Shares 150.2 145.0 135.5 135.0 102.6
Cash Flow From
Operating Activities $ 6.6 $ 44.4 $ 36.2 $ 36.9 $
(3.4 )
Capital Expenditures $ 22.2 $ 30.0 $
23.9 $ 23.7 $ 17.6
Cash, Equivalents & Short-Term
Investments $ 173.4 $ 200.7 $ 205.7 $ 205.9 $
179.6
Total Debt3 $ 511.1 $ 490.4 $
546.0 $ 547.7 $ 513.5
Average Realized Price Per Ounce –
Silver $ 15.16 $ 14.27 $ 14.66 $ 16.23 $ 16.77
Average Realized Price Per Ounce – Gold $
1,178 $ 1,093 $ 1,116 $ 1,179 $ 1,204
Silver Ounces
Produced 3.4 4.0 3.8 4.3 3.8
Gold Ounces Produced
78,072 91,551 85,769 80,855 69,734
Silver Equivalent
Ounces Produced1 8.1 9.5 9.0 9.1 8.0
Silver
Ounces Sold 3.5 4.4 4.0 4.0 4.1
Gold Ounces Sold
79,091 92,032 91,118 84,312 68,420
Silver Equivalent
Ounces Sold1 8.3 9.9 9.5 9.1 8.2
Silver
Equivalent Ounces Sold (Realized)1 9.7 11.3 10.9
10.1 9.0
Adjusted Costs Applicable to Sales per AgEq
Ounce1 $ 12.05 $ 12.65 $ 12.07 $ 12.56 $
13.71
Adjusted Costs Applicable to Sales per Realized AgEq
Ounce1 $ 11.08 $ 11.71 $ 11.00 $ 11.75 $
12.90
Adjusted Costs Applicable to Sales per AuEq
Ounce1 $ 721 $ 663 $ 783 $ 816 $ 797
Adjusted All-in Sustaining Costs per AgEq Ounce1
$ 16.05 $ 15.66 $ 15.17 $ 16.60 $ 17.66
Adjusted
All-in Sustaining Costs per Realized AgEq Ounce 1
$ 13.73 $ 13.55 $ 13.14 $ 14.81 $ 16.05
Financial Results
The Company realized average silver and gold prices of $15.16
and $1,178 during the first quarter, which were 6% and 8% higher,
respectively, compared with the fourth quarter and 10% and 2%
lower, respectively, compared to last year's first quarter.
First quarter revenue decreased 10% compared with the fourth
quarter and 3% compared with the first quarter 2015 to $148.4
million, primarily due to fewer silver and gold ounces sold from
Palmarejo as a result of reduced mining rates as the operation
transitions from predominantly open pit mining to entirely
higher-grade underground mining. Production began from the
Independencia deposit in late January and mining rates are expected
to climb during each remaining quarter of the year. Silver
contributed 36% of metal sales and gold contributed 64% during the
first quarter.
First quarter general and administrative expenses were $8.3
million, 6% lower compared to the first and fourth quarters last
year. First quarter capital expenditures of $22.2 million were 26%
lower compared to the fourth quarter and 26% higher than the first
quarter last year due to development of the Jualin deposit at
Kensington and development of the Guadalupe and Independencia
deposits at Palmarejo. First quarter exploration expense totaled
$1.7 million for discovery of new silver and gold mineralization,
which was flat compared to the fourth quarter and 59% lower than
the first quarter 2015.
First quarter adjusted EBITDA1 was $34.6 million, a 16% increase
compared to the fourth quarter, primarily due to lower operating
costs and higher metal prices, and up 46% compared to the first
quarter last year as a result of lower costs and the addition of
the Wharf mine. At March 31, 2016, LTM adjusted EBITDA1 totaled
$126.5 million, an 8% increase from year-end 2015 and a 58%
increase from the same period last year.
Adjusted net loss1 was $6.6 million, or $0.04 per share, in the
first quarter, compared to an adjusted net loss1 of $38.6 million,
or $0.27 per share, in the fourth quarter and $19.2 million, or
$0.19 per share, in the first quarter 2015. The first quarter
adjusted net loss primarily excludes fair value adjustments to
royalty obligations, a $3.9 million reduction in carrying value of
the Endeavor silver stream and El Gallo royalty, and stock-based
compensation. First quarter cash flow from operating activities was
$6.6 million, lower than the fourth quarter 2015 as a result of
lower metal sales and a $16.6 million increase in working capital,
primarily due to payment of accrued interest and an increase in ore
inventory on the leach pad at Rochester.
Operations
Highlights of first quarter 2016 results for each of the
Company's operating segments are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts) 1Q 2016 4Q 2015
3Q 2015 2Q 2015
1Q 2015 Underground Operations: Tons mined
215,642 189,383 190,399 172,730 149,150
Average silver
grade (oz/t) 4.21 3.96 4.11 3.90 4.34
Average gold
grade (oz/t) 0.07 0.06 0.10 0.09 0.07
Surface
Operations: Tons mined 35,211 102,018 247,071
257,862 281,481
Average silver grade (oz/t) 4.18 3.86
3.56 3.47 3.79
Average gold grade (oz/t) 0.04 0.03
0.03 0.03 0.04
Processing: Total tons milled
246,533 301,274 427,635 435,841 451,918
Average recovery
rate – Ag 89.1% 95.4% 87.9% 78.5% 78.7%
Average
recovery rate – Au 92.1% 88.8% 84.7% 76.2% 73.9%
Silver ounces produced (000's) 933 1,126 1,422 1,247
1,354
Gold ounces produced 14,668 14,326 22,974
18,127 15,495
Silver equivalent ounces produced1
(000's) 1,813 1,985 2,800 2,335 2,284
Silver
ounces sold (000's) 928 1,465 1,425 1,228 1,330
Gold
ounces sold 12,899 18,719 25,000 15,706 13,793
Silver
equivalent ounces sold1 (000's) 1,702
2,588 2,925 2,170 2,158
Silver equivalent ounces
sold1 (realized) (000's) 1,930 2,840 3,325
2,374 2,323
Revenues $29.8 $41.6 $49.2 $38.9 $39.4
Costs applicable to sales $21.0 $39.8 $34.1 $30.1
$34.5
Adjusted costs applicable to sales per AgEq
ounce1 $11.54 $13.48 $11.40 $13.21 $14.56
Adjusted costs applicable to sales per realized AgEq ounce
1 $10.18 $12.04 $10.01 $12.07 $13.52
Exploration
expense $0.8 $0.5 $1.1 $1.8 $1.1
Cash flow from
operating activities $3.4 $20.3 $22.9 $9.7 $(0.2)
Sustaining capital expenditures $6.6 $(1.4) $1.1 $2.7
$3.1
Development capital expenditures $2.2 $7.0 $9.4
$8.0 $6.1
Total capital expenditures $8.8 $5.6 $10.5
$10.7 $9.2
Free cash flow (before royalties) $(5.4)
$14.7 $12.4 $(1.0) $(9.4)
Royalties paid $9.1 $8.8
$10.2 $9.8 $10.4
Free cash flow4 $(14.5) $5.9
$2.2 $(10.8) $(19.8)
- Production was in-line with
expectations as the transition to lower-tonnage, higher-grade,
higher-margin underground operations from two ore sources -
Guadalupe and Independencia - remains on-track
- First quarter adjusted costs applicable
to sales per realized silver equivalent ounce1 were $10.18, a 15%
decline from the fourth quarter as a result of fewer waste tons
mined and lower processing costs. Using a 60:1 equivalence,
adjusted costs applicable to sales per silver equivalent ounce1
were $11.54
- Recent modifications to the processing
plant have significantly improved recovery rates. First quarter
recovery rates were 89.1% for silver and 92.1% for gold compared to
78.7% and 73.9%, respectively, during last year's first
quarter
- With active open pit mining operations
to be completed in the second quarter 2016, underground production
levels are expected to increase throughout the year as mining rates
from Independencia accelerate to 1,000 tons per day by year-end
2016. By mid-2017, the Company expects daily underground mining
rates to reach a combined 4,000 tons per day from the higher-grade,
higher-margin Guadalupe and Independencia deposits
- In 2016, Palmarejo is expected to
produce 3.9 - 4.4 million ounces of silver and 67,000 - 72,000
ounces of gold at costs applicable to sales per silver equivalent
ounce1 of $12.50 - $13.50 (based on a 60:1 equivalence)
Rochester, Nevada
(Dollars in millions, except per ounce
amounts) 1Q 2016 4Q 2015
3Q 2015 2Q 2015
1Q 2015 Ore tons placed 4,374,459 4,411,590
4,128,868 3,859,965 4,013,879
Average silver grade (oz/t)
0.64 0.60 0.59 0.61 0.74
Average gold grade (oz/t)
0.004 0.003 0.003 0.003 0.004
Silver ounces produced
(000's) 929 1,107 1,086 1,294 1,144
Gold ounces
produced 10,460 11,564 10,892 16,411 13,721
Silver
equivalent ounces produced1 (000's) 1,557
1,800 1,740 2,279 1,967
Silver ounces sold (000's)
1,079 1,125 1,304 1,120 1,351
Gold ounces sold
11,672 11,587 13,537 15,085 17,754
Silver equivalent
ounces sold1 (000's) 1,779 1,821 2,116
2,025 2,416
Silver equivalent ounces sold1
(realized) (000's) 1,986 2,004 2,333 2,221 2,629
Revenues $30.0 $29.0 $34.6 $36.3 $44.0
Costs
applicable to sales $22.5 $22.8 $25.4 $24.4 $31.4
Adjusted costs applicable to sales per AgEq ounce1
$12.61 $12.37 $12.01 $12.01 $12.95
Adjusted costs
applicable to sales per realized AgEq ounce 1
$11.29 $11.19 $10.89 $10.94 $11.91
Exploration
expense $0.1 $0.1 $— $0.5 $0.7
Cash flow from
operating activities $2.1 $0.4 $6.5 $8.8 $16.4
Sustaining capital expenditures $2.5 $5.3 $1.8 $2.4
$0.8
Development capital expenditures $0.8 $5.5 $3.5
$3.5 $2.5
Total capital expenditures $3.3 $10.8 $5.3
$5.9 $3.3
Free cash flow4 $(1.2) $(10.4) $1.2
$2.9 $13.1
- Silver equivalent production1 was 14%
lower than the prior quarter due to poor weather and timing of
recoveries from the Stage III leach pad. Production levels
increased significantly in March as expected and are anticipated to
continue to climb throughout the year
- First quarter adjusted costs applicable
to sales per realized silver equivalent ounce1 were $11.29. Using a
60:1 equivalence, adjusted costs applicable to sales per silver
equivalent ounce1 were $12.61
- Approval for POA 10, which will allow
for the expansion of the Stage IV leach pad and construction of new
Stage V leach pad, is expected in the second quarter 2016
- In 2016, Rochester is expected to
produce 4.8 - 5.3 million ounces of silver and 48,000 - 55,000
ounces of gold at costs applicable to sales per silver equivalent
ounce1 of $11.25 - $12.25 (based on a 60:1 equivalence)
Kensington, Alaska
(Dollars in millions, except per ounce
amounts) 1Q 2016 4Q 2015
3Q 2015 2Q 2015
1Q 2015 Tons milled 159,360 159,666 165,198
170,649 164,951
Average gold grade (oz/t) 0.21 0.22
0.19 0.18 0.24
Average recovery rate 95.8% 96.0%
93.9% 94.9% 94.8%
Gold ounces produced 31,974 33,713
28,799 29,845 33,909
Gold ounces sold 31,648 29,989
28,084 36,607 36,873
Revenues $35.7 $31.7 $30.5 $42.5
$44.0
Costs applicable to sales $24.4 $23.7 $25.0
$27.5 $29.4
Adjusted costs applicable to sales per gold
ounce1 $761 $777 $842 $745 $797
Exploration
expense $— $0.3 $0.2 $0.4 $1.7
Cash flow from
operating activities $13.7 $4.5 $8.9 $12.0 $12.3
Sustaining capital expenditures $4.4 $5.5 $1.0 $4.2
$4.1
Development capital expenditures $3.7 $4.0 $4.5
$0.5 $—
Total capital expenditures $8.1 $9.5 $5.5
$4.7 $4.1
Free cash flow4 $5.6 $(5.0) $3.4
$7.3 $8.2
- Consistent production and costs
achieved in the first quarter with 31,974 gold ounces produced at
adjusted costs applicable to sales per gold ounce1 of $761
- Development of the high-grade Jualin
deposit is progressing and is over one-third complete
- In 2016, Kensington is expected to
produce 115,000 - 125,000 ounces of gold at costs applicable to
sales per gold ounce1 of $825 - $875
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts) 1Q 2016 4Q 2015
3Q 2015 2Q 2015
1Q 2015 Ore tons placed 974,663 1,147,130
1,149,744 887,409 415,996
Average silver grade (oz/t)
0.30 0.21 0.21 0.30 —
Average gold grade (oz/t)
0.031 0.032 0.035 0.025 0.020
Average plant recovery rate
– Au 96.6% 97.3% 92.8% 76.7% 85.9%
Silver ounces
produced (000's) 13 18 19 19 —
Gold ounces
produced 20,970 31,947 23,104 16,472 6,609
Gold
equivalent ounces produced1 21,186 32,231 23,427
16,794 6,609
Silver ounces sold (000's) 15 17 19 13 —
Gold ounces sold 22,872 31,202 24,815 17,131 —
Gold equivalent ounces sold1 23,122 31,485
25,132 17,348 —
Revenues $27.9 $35.7 $28.0 $20.4 $—
Costs applicable to sales $15.5 $17.8 $17.8 $16.6 $—
Adjusted costs applicable to sales per gold equivalent
ounce1 $667 $556 $716 $970 $—
Exploration
expense $— $0.1 $— $— $—
Cash flow from operating
activities $9.7 $18.1 $12.9 $8.2 $(7.2)
Sustaining
capital expenditures $1.4 $1.2 $0.7 $1.2 $0.1
Development capital expenditures $— $— $— $— $—
Total capital expenditures $1.4 $1.2 $0.7 $1.2 $0.1
Free cash flow4 $8.3 $16.9 $12.2 $7.0 $(7.3)
- Lower production compared to prior
quarter as expected due to timing of recoveries from the current
leach pad. Higher production is expected during remainder of
2016
- Adjusted costs applicable to sales per
gold equivalent ounce1 were $667 in the first quarter. Process
plant efficiencies have led to significantly higher plant recovery
rates since Coeur acquired the operation in February 2015, which
have positively impacted unit costs
- In 2016, Wharf is expected to produce
90,000 - 95,000 ounces of gold at costs applicable to sales per
gold equivalent ounce1 of $650 - $750
San Bartolomé, Bolivia
(Dollars in millions, except per ounce amounts) 1Q
2016 4Q 2015 3Q 2015 2Q 2015 1Q
2015 Tons milled 407,806 475,695 373,201 457,232
406,951
Average silver grade (oz/t) 3.64 3.84 3.76
3.73 3.65
Average recovery rate 93.1% 84.9% 84.0%
87.6% 81.6%
Silver ounces produced (000's) 1,382
1,550 1,178 1,495 1,213
Silver ounces sold (000's)
1,384 1,564 1,202 1,439 1,290
Revenues $21.3
$22.4 $17.4 $23.4 $21.5
Costs applicable to sales
$17.5 $20.0 $17.5 $19.2 $19.1
Adjusted costs applicable to sales per
silver ounce1
$12.56 $12.48 $14.41 $13.26 $14.47
Exploration
expense $— $— $0.1 $— $—
Cash flow from operating
activities $5.5 $10.0 $5.7 $5.4 $5.0
Sustaining
capital expenditures $0.5 $2.5 $1.8 $1.0 $0.9
Development capital expenditures $— $— $— $— $—
Total capital expenditures $0.5 $2.5 $1.8 $1.0 $0.9
Free cash flow4 $5.0 $7.5 $3.9 $4.4 $4.1
- Adjusted costs applicable to sales per
silver ounce1 were $12.56 in the first quarter, consistent with the
prior quarter and down 13% compared the to the same quarter last
year as a result of the recent increase in lower-cost,
higher-grade, third-party ore purchases
- Approximately one-third of first
quarter silver production was derived from higher-grade,
third-party ore purchases. Coeur expects the proportion to remain
between 25 - 30% during the remainder of 2016
- Average recovery rate increased from
84.9% in the fourth quarter to 93.1% in the first quarter,
partially as a result of process improvements, including the
recently implemented oxygen injection system in the agitated leach
circuit
- In 2016, San Bartolomé is expected to
produce 5.8 - 6.1 million ounces of silver at costs applicable to
sales per silver ounce1 of $13.50 - $14.25
Coeur Capital
(Dollars in millions, except per ounce
amounts) 1Q 2016 4Q 2015
3Q 2015 2Q 2015
1Q 2015 Tons milled 86,863 198,927 191,913
191,175 185,299
Average silver grade (oz/t) 3.17 2.05
1.39 2.35 1.69
Average recovery rate 41.9% 42.1%
45.4% 45.4% 42.4%
Silver ounces produced (000's) 115
171 121 204 133
Silver ounces sold (000's) 123 193 95
209 118
Metal sales $1.9 $2.4 $1.3 $3.1 $1.9
Royalty revenue $1.8 $1.5 $1.6 $1.8 $2.0
Costs
applicable to sales (Endeavor silver stream) $1.0 $1.0
$0.5 $1.4 $0.6
Costs applicable to sales per silver
equivalent ounce1 $5.35 $5.50 $4.99 $6.46 $5.37
Cash flow from operating activities $0.8 $0.8 $3.1
$2.1 $2.2
Free cash flow4 $0.8 $0.8 $3.1 $2.1
$2.2
- There are now three cash-flowing
royalties and streams, one non-cash-flowing royalty, and several
investments in junior mining companies held in Coeur Capital or its
affiliates
- Coeur Capital's largest source of cash
flow is the silver stream on the Endeavor mine in New South Wales,
Australia in which the Company owns 100% of the silver up to a
total of 20.0 million payable ounces. At March 31, 2016, the
Company has received 6.2 million ounces
- Silver production received from the
stream on the Endeavor mine declined following a decision by the
operator to significantly cut production due to lower lead and zinc
prices
Exploration
First quarter exploration expense totaled $1.7 million. Coeur's
exploration program used 3 drill rigs during the first quarter,
including one drill at each of Palmarejo, Kensington, and
Rochester. This work resulted in completion of over 12,579 feet
(3,834 meters) of combined core and reverse circulation drilling.
Drilling programs gained momentum toward the end of the quarter,
with the second and third quarters expected to be the most active
for exploration drilling.
Exploration expense is expected to total $11 - $13 million in
2016, with an additional $11 - $13 million of capital allocated to
resource conversion. Exploration continues to be driven by the
focus on the discovery of high-grade deposits located near existing
operations, with the near-term focus on:
- Expanding resources in the
Guadalupe-Independencia corridor, including deeper areas of the
Guadalupe and Independencia deposits and the recently identified
Los Bancos and Nación veins, as well as drilling at the nearby La
Bavisa vein
- Infill and expansion drilling of the
higher-grade East Rochester deposit, which is expected to be the
focus of a revised economic analysis in 2016
- Underground infill and expansion
drilling of the high-grade Jualin deposit at Kensington, as well as
four zones within the Kensington Main deposit, proximal to current
mining activities
Non-Core Asset Sales
On March 31, 2016, Coeur sold its 2.0% net smelter returns "NSR"
royalty on the Cerro Bayo mine to the operator, Mandalay Resources
Corporation, for total consideration valued at approximately $5.7
million on the closing date, consisting of $4.0 million in cash and
2.5 million Mandalay shares
On April 19, 2016, Coeur closed the sale of its 2.5% NSR royalty
on the La Cigarra project to Kootenay Silver Inc. for total
consideration valued at approximately $3.6 million on the closing
date, consisting of $500,000 in cash and 9.6 million Kootenay
shares.
On April 19, 2016, Coeur sold its tiered NSR royalty on the El
Gallo mine to the operator, a subsidiary of McEwen Mining Inc., for
total consideration of approximately $6.3 million, including $1
million in contingent consideration payable in mid-2018.
Coeur also entered into a definitive agreement to sell its
Martha assets in Argentina to Hunt Mining Corp. for total cash
consideration of $3.0 million, including $1.5 million at the time
of closing and $1.5 million on the one-year anniversary of the
closing. The transaction is expected to close in the second quarter
of 2016.
Coeur has reached principal terms to sell its interest in the
royalty on the Correnso mine for expected consideration of $5.5
million (on a 100% basis after completing the buyout of Coeur's
joint venture partner in New Zealand), plus a contingent payment of
$700,000 payable in 2017 tied to resource conversion. The
transaction is subject to negotiation and execution of definitive
agreements and is expected to close in the second quarter 2016.
Full-Year 2016 Outlook
Coeur's 2016 guidance is shown below. Companywide production and
cost guidance is unchanged from the original guidance provided on
February 10, 2016. Following a decision by the operator of the
Endeavor mine to significantly curtail production due to lower lead
and zinc prices, Coeur revised the production outlook from the
Endeavor silver stream lower but expects to increase production at
Palmarejo, Rochester, and San Bartolomé for the remainder of 2016,
leaving total silver and silver equivalent production guidance
unchanged from the February 10, 2016 guidance.
2016 Production Outlook
(silver and silver
equivalent ounces in thousands) Silver
Gold Silver
Equivalent1 Palmarejo 3,875 - 4,400 67,000 -
72,000 7,895 - 8,720
Rochester 4,750 - 5,250 48,000 - 55,000
7,630 - 8,550
San Bartolomé 5,750 - 6,050 — 5,750 - 6,050
Endeavor 175 - 200 — 175 - 200
Kensington — 115,000 -
125,000 6,900 - 7,500
Wharf 80 - 100
90,000 - 95,000 5,480 - 5,800
Total
14,630 - 16,000 320,000 - 347,000
33,830 - 36,820
2016 Cost Outlook
(dollars in millions, except per
ounce amounts) 2016 Guidance
2015 Result Costs Applicable to Sales per Silver
Equivalent Ounce1 – Palmarejo $12.50 - $13.50
$13.03
Costs Applicable to Sales per Silver Equivalent
Ounce1 – Rochester $11.25 - $12.25 $12.36
Costs Applicable to Sales per Silver Ounce1 – San
Bartolomé $13.50 - $14.25 $13.63
Costs Applicable to Sales
per Gold Ounce1 – Kensington $825 - $875 $798
Costs Applicable to Sales per Gold Equivalent Ounce1
– Wharf $650 - $750 $706
Capital Expenditures $90 -
$100 $95.2
General and Administrative Expenses $28 - $32
$32.8
Exploration Expense $11 - $13 $11.6
All-in
Sustaining Costs per Silver Equivalent Ounce1 $16.00 -
$17.25 $16.16
Conference Call
Information
Coeur will report its full operational and financial results for
first quarter 2016 on April 27, 2016 after the New York Stock
Exchange closes for trading. There will be a conference call on
April 28, 2016 at 11:00 a.m. Eastern time.
Dial-In Numbers: (855) 560-2581 (US) (855) 669-9657
(Canada) (412) 542-4166 (International) Conference ID: Coeur
Mining A replay of the call will be available through May
13, 2016. Replay numbers: (877) 344-7529 (US) (855) 669-9658
(Canada) (412) 317-0088 (International) Conference ID: 100
83 340
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a
significant gold producer with five precious metals mines in the
Americas employing approximately 2,000 people. Coeur produces from
its wholly owned operations: the Palmarejo silver-gold complex in
Mexico, the Rochester silver-gold mine in Nevada, the Kensington
gold mine in Alaska, the Wharf gold mine in South Dakota, and the
San Bartolomé silver mine in Bolivia. The Company also has a
non-operating interest in the Endeavor mine in Australia in
addition to royalties on the Zaruma mine in Ecuador and the
Correnso mine in New Zealand. In addition, the Company has two
silver-gold exploration projects - the La Preciosa project in
Mexico and the Joaquin project in Argentina. The Company also
conducts ongoing exploration activities in Alaska, Argentina,
Bolivia, Mexico, and Nevada. The Company owns strategic investment
positions in several silver and gold development companies with
projects in North and South America.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated cash flow, production,
costs, capital expenditures, expenses, mining rates, recovery
rates, development activity at Palmarejo and Kensington, permitting
and expansion projects at Rochester, ore purchases at San
Bartolomé, and exploration efforts. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause Coeur's actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the risk that
anticipated production, cost and expense levels are not attained,
the risks and hazards inherent in the mining business (including
risks inherent in developing large-scale mining projects,
environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold and silver and a sustained lower price environment, the
uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting
and regulatory delays, ground conditions, grade variability, any
future labor disputes or work stoppages (including those involving
third parties), the uncertainties inherent in the estimation of
gold and silver reserves and resources, changes that could result
from Coeur's future acquisition of new mining properties or
businesses, the absence of control over and reliance on third
parties to operate mining operations in which Coeur or its
subsidiaries hold royalty or streaming interests and risks related
to these mining operations including results of mining and
exploration activities, environmental, economic and political risks
of the jurisdiction in which the mining operations are located, the
loss of access to any third-party smelter to which Coeur markets
silver and gold, the effects of environmental and other
governmental regulations, the risks inherent in the ownership or
operation of or investment in mining properties or businesses in
foreign countries, Coeur's ability to raise additional financing
necessary to conduct its business, make payments or refinance its
debt, as well as other uncertainties and risk factors set out in
filings made from time to time with the United States Securities
and Exchange Commission, and the Canadian securities regulators,
including, without limitation, Coeur's most recent reports on Forms
10-K and 10-Q. Actual results, developments and timetables could
vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements.
Coeur disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of Coeur, its financial or operating
results or its securities.
Dana Willis, Coeur's Director, Resource Geology and a qualified
person under Canadian National Instrument 43-101, supervised the
preparation of 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 adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), adjusted costs applicable to sales per silver
equivalent ounce, all-in sustaining costs, and adjusted all-in
sustaining costs. We believe that these adjusted measures provide
meaningful information to assist management, investors and analysts
in understanding our financial results and assessing our prospects
for future performance. We believe these adjusted financial
measures are important indicators of our recurring operations
because they exclude items that may not be indicative of, or are
unrelated to our core operating results, and provide a better
baseline for analyzing trends in our underlying businesses. We
believe adjusted EBITDA, adjusted net income (loss), costs
applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), adjusted costs applicable to sales per silver
equivalent ounce, all-in sustaining costs, and adjusted all-in
sustaining costs are important measures in assessing the Company's
overall financial performance.
Notes
1. Adjusted EBITDA, adjusted net income (loss), all-in
sustaining costs, adjusted all-in sustaining costs, costs
applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), and adjusted costs applicable to sales per
silver equivalent ounce are non-GAAP measures. Please see tables in
the Appendix for the reconciliation to U.S. GAAP. For purposes of
silver and gold equivalence, a 60:1 silver to gold ratio is assumed
except where noted as average realized prices.
2. Operating cash flow is after a $16.6 million increase in
working capital.
3. Includes capital leases. Net of debt issuance costs and
premium received.
4. Free cash flow is defined as cash flow from operating
activities less capital expenditures and royalty payments.
Coeur Mining, Inc. and Subsidiaries Condensed
Consolidated Statements of Comprehensive Income (Loss)
Three months ended March 31, 2016
2015 In thousands, except share data
Revenue $ 148,387 $ 152,956 COSTS AND EXPENSES Costs
applicable to sales(1) 101,555 115,062 Amortization 27,964 33,090
General and administrative 8,276 8,834 Exploration 1,731 4,266
Write-downs 4,446 — Pre-development, reclamation, and other 4,204
6,763 Total costs and expenses 148,176 168,015 OTHER
INCOME (EXPENSE), NET Fair value adjustments, net (8,695 ) (4,884 )
Interest expense, net of capitalized interest (11,120 ) (10,765 )
Other, net 1,314 (2,511 ) Total other income (expense), net
(18,501 ) (18,160 ) Income (loss) before income and mining taxes
(18,290 ) (33,219 ) Income and mining tax (expense) benefit (2,106
) (68 )
NET INCOME (LOSS)
$ (20,396 ) $ (33,287 ) OTHER COMPREHENSIVE INCOME (LOSS), net of
tax:
Unrealized gain (loss) on equity
securities, net of tax of $(1,011) and $578 for the threemonths
ended March 31, 2016 and 2015, respectively
1,043 (915 )
Reclassification adjustments for
impairment of equity securities, net of tax of $(586) forthe three
months ended March 31, 2015
— 928 Reclassification adjustments for realized loss on sale of
equity securities 588 — Other comprehensive income
(loss) 1,631 13 COMPREHENSIVE INCOME (LOSS) $ (18,765
) $ (33,274 ) NET INCOME (LOSS) PER SHARE Basic $ (0.14 ) $
(0.32 ) Diluted $ (0.14 ) $ (0.32 )
Coeur Mining,
Inc. and Subsidiaries Condensed Consolidated Statements of
Cash Flows Three months ended March
31, 2016 2015 In thousands
CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (20,396 )
(33,287 ) Adjustments: Amortization 27,964 33,090 Accretion 3,169
3,150 Deferred income taxes (2,105 ) (2,184 ) Fair value
adjustments, net 8,695 4,884 Stock-based compensation 2,915 2,150
Impairment of equity securities — 1,514 Write-downs 4,446 —
Other
(1,435 ) 1,079 Changes in operating assets and liabilities:
Receivables 3,481 2,556 Prepaid expenses and other current assets
1,279 (1,327 ) Inventory and ore on leach pads (7,822 ) 684
Accounts payable and accrued liabilities (13,574 ) (15,758 ) CASH
PROVIDED BY OPERATING ACTIVITIES 6,617 (3,449 ) CASH FLOWS
FROM INVESTING ACTIVITIES: Capital expenditures (22,172 ) (17,620 )
Acquisitions, net — (102,018 ) Other 2,536 (1,730 )
Purchase of investments
(7 ) (278 )
Sales and maturities of investments
997 229 CASH USED IN INVESTING ACTIVITIES (18,646 )
(121,417 ) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of notes
and bank borrowings — 53,500 Payments on debt, capital leases, and
associated costs (5,971 ) (8,594 ) Gold production royalty payments
(9,131 ) (10,368 ) Other (280 ) (423 ) CASH PROVIDED BY FINANCING
ACTIVITIES (15,382 ) 34,115 Effect of exchange rate changes
on cash and cash equivalents 86 (523 ) INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (27,325 ) (91,274 ) Cash and cash
equivalents at beginning of period 200,714 270,861
Cash and cash equivalents at end of period $ 173,389 $
179,587
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, December 31, 2016
2015 ASSETS In thousands, except share data
CURRENT ASSETS Cash and cash equivalents $ 173,389 $ 200,714
Receivables 82,929 85,992 Inventory 78,597 81,711 Ore on leach pads
72,703 67,329 Prepaid expenses and other 13,130 10,942
420,748 446,688 NON-CURRENT ASSETS Property, plant and
equipment, net 220,948 195,999 Mining properties, net 574,104
589,219 Ore on leach pads 49,294 44,582 Restricted assets 13,221
11,633 Equity securities 5,530 2,766 Receivables 24,114 24,768
Deferred tax assets 2,750 1,942 Other 14,389 14,892
TOTAL ASSETS $ 1,325,098 $ 1,332,489
LIABILITIES
AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $
46,955 $ 48,732 Accrued liabilities and other 42,037 53,953 Debt
16,801 10,431 Royalty obligations 21,183 24,893 Reclamation 3,463
2,071 130,439 140,080 NON-CURRENT LIABILITIES Debt
494,300 479,979 Royalty obligations 6,354 4,864 Reclamation 83,902
83,197 Deferred tax liabilities 146,845 147,132 Other long-term
liabilities 58,118 55,761 789,519 770,933
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 300,000,000 shares, issued andoutstanding 153,240,428 at
March 31, 2016 and 151,339,136 at December 31, 2015
1,532 1,513 Additional paid-in capital 3,026,871 3,024,461
Accumulated other comprehensive income (loss) (2,091 ) (3,722 )
Accumulated deficit (2,621,172 ) (2,600,776 ) 405,140
421,476 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $
1,325,098 $ 1,332,489
Adjusted EBITDA Reconciliation
LTM
1Q LTM
(Dollars in thousands except per share
amounts)
2016 1Q 2016 4Q 2015 3Q 2015
2Q 2015 1Q 2015 1Q 2015 Net income (loss)
$ (354,292 ) $ (20,396 )
$ (303,000 ) $ (14,219 ) $ (16,677 ) $ (1,151,980 ) $ (33,287 )
Interest expense, net of capitalized interest
46,058
11,120 11,758 12,446 10,734 45,257 10,765 Other, net
(3,810 ) (1,314 ) (14,241 ) 8,893 2,852
7,124 2,511 Income tax provision (benefit)
(24,225 )
2,106 (17,811 ) (8,260 ) (260 ) (454,487 ) 68 Amortization
138,625 27,964 36,190
35,497 38,974 155,067 33,090
EBITDA (197,644 ) 19,480 (287,104 )
34,357 35,623 (1,399,019 ) 13,147 Fair value adjustments, net
(1,391 ) 8,695 (1,546 ) (5,786 ) (2,754 )
(10,170 ) 4,884 Corporate reorganization costs
647 —
133 514 — — — Transaction-related costs
137 — 99 — 38
1,975 1,975 Inventory adjustments
6,957 1,944 4,901
2,280 1,805 14,738 3,684 Write-downs
317,783
4,446 313,337 — —
1,472,721 —
Adjusted EBITDA $
126,489 $ 34,565 $ 29,820
$ 31,365 $ 34,712 $ 80,245 $ 23,690
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share amounts)
1Q 2016 4Q 2015 3Q 2015
2Q 2015 1Q 2015 Net income (loss)
$ (20,396 ) $ (303,000 ) $ (14,219 ) $
(16,677 ) $ (33,287 ) Fair value adjustments, net
6,980
(2,446 ) (3,384 ) (2,618 ) 4,339 Stock-based compensation
2,846 2,221 1,541 2,529 2,410 Impairment of equity
securities
— 318 483 31 1,514 Accretion of royalty
obligation
392 727 1,063 1,147 1,315 Write-downs
3,937 276,510 — — — Gain on sale of non-core assets
(1,880 ) — — — — (Gain) loss on debt extinguishments
— (16,187 ) — 524 (253 ) Inventory adjustments
1,944
4,901 2,280 1,805 3,684 Corporate reorganization costs
— 133
514 — — Transaction-related costs
— 99 — 38 1,975 Deferred
tax asset valuation allowance
848 — — — — Foreign exchange
(gain) loss on deferred taxes
(1,288 ) (1,844 )
(10,092 ) (1,305 ) (929 )
Adjusted net income (loss)
$ (6,617 ) $ (38,568 ) $ (21,814 ) $
(14,526 ) $ (19,232 )
Adjusted net income (loss) per
share $ (0.04 ) $ (0.27 ) $ (0.16 )
$ (0.11 ) $ (0.19 )
Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
March 31, 2016 Silver
Gold Total
In thousands except per ounce
amounts
Palmarejo Rochester San
Bartolomé Endeavor Total
Kensington Wharf Total Costs
applicable to sales, including amortization (U.S. GAAP) $
28,327 $ 27,798 $ 19,251 $ 955 $ 76,331
$ 32,767 $ 19,512 $ 52,279 $ 128,610
Amortization 7,289
5,313 1,754 299 14,655 8,349
4,051 12,400 27,055
Costs applicable
to sales $ 21,038 $ 22,485 $ 17,497 $ 656 $ 61,676 $ 24,418 $
15,461 $ 39,879 $ 101,555
Silver equivalent ounces sold
1,702,290 1,779,377 1,384,391 122,694 4,988,752 8,274,952
Gold
equivalent ounces sold
31,648 23,122 54,770
Costs
applicable to sales per ounce $ 12.36 $ 12.64 $ 12.64 $ 5.35 $
12.36 $ 772 $ 669 $ 728 $ 12.27
Inventory adjustments (0.82
) (0.03 ) (0.08 ) — (0.31 ) (11 ) (2 ) (7 ) (0.23 )
Adjusted costs applicable to sales per ounce $ 11.54 $ 12.61
$ 12.56 $ 5.35
$ 12.05 $ 761 $ 667
$
721 $ 12.04
Costs applicable to sales per
realized ounce $ 10.90 $ 11.32 $ 11.37 $ 10.50
Inventory
adjustments (0.72 ) (0.03 ) (0.29 ) (0.20 )
Adjusted costs
applicable to sales per realized ounce $ 10.18 $ 11.29
$
11.08 $ 10.30
Costs applicable to
sales $ 101,555
Treatment and refining costs 1,158
Sustaining capital 16,710
General and administrative
8,276
Exploration 1,731
Reclamation 3,759
Project/pre-development costs 1,558
All-in
sustaining costs $ 134,747 Silver equivalent
ounces sold 4,988,752
Kensington and Wharf silver equivalent
ounces sold 3,286,200
Consolidated silver equivalent
ounces sold 8,274,952
All-in sustaining costs per
silver equivalent ounce $ 16.28
Inventory adjustments $ (0.23 )
Adjusted all-in
sustaining costs per silver equivalent ounce $
16.05 All-in sustaining costs per realized
silver equivalent ounce $ 13.93
Inventory adjustments $ (0.20 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
13.73 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
December 31, 2015 Silver
Gold Total In thousands
except per ounce amounts Palmarejo
Rochester San Bartolomé Endeavor
Total Kensington Wharf
Total Costs applicable to sales, including amortization
(U.S. GAAP) $ 47,207 $ 27,716 $ 24,372 $
2,579 $ 101,874 $ 33,298 $
25,033
$
58,331
$
160,205
Amortization 7,426 4,944 4,311 1,519
18,200 9,503
7,246
16,749
34,949
Costs applicable to sales $ 39,781 $ 22,772 $ 20,061
$ 1,060 $ 83,674 $ 23,795 $ 17,787 $ 41,582 $ 125,256
Silver
equivalent ounces sold 2,588,185 1,820,471 1,564,155 192,768
6,165,579 9,885,699
Gold equivalent ounces sold
29,988 32,014 62,002
Costs applicable to sales per ounce $ 15.37 $
12.51 $ 12.83 $ 5.50 $ 13.57 $ 793 $ 556 $ 671 $ 12.67
Inventory
adjustments (1.89 ) (0.14 ) (0.35 ) — (0.92 ) (16 ) —
(8 ) (0.62 )
Adjusted costs applicable to sales per
ounce $ 13.48 $ 12.37 $ 12.48 $ 5.50
$ 12.65
$ 777 $ 556
$ 663 $ 12.05
Costs applicable to sales per realized ounce $ 13.73 $ 11.32
$ 12.56 $ 10.98
Inventory adjustments (1.69 ) (0.13 ) (0.85
) (0.54 )
Adjusted costs applicable to sales per realized
ounce $ 12.04 $ 11.19
$ 11.71 $ 10.44
Costs applicable to sales $ 125,256
Treatment and refining costs 964
Sustaining capital
16,567
General and administrative 8,855
Exploration
1,689
Reclamation 4,963
Project/pre-development costs
2,691
All-in sustaining costs $ 160,985
Silver equivalent ounces sold 6,165,579
Kensington and
Wharf silver equivalent ounces sold 3,720,120
Consolidated silver equivalent ounces sold 9,885,699
All-in sustaining costs per silver equivalent ounce $
16.28 Inventory adjustments $ (0.62 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 15.66 All-in sustaining costs per
realized silver equivalent ounce $ 14.09
Inventory adjustments $ (0.54 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
13.55 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
September 30, 2015 Silver
Gold Total In thousands
except per ounce amounts Palmarejo
Rochester San Bartolomé Endeavor
Total Kensington Wharf
Total Costs applicable to sales, including amortization
(U.S. GAAP) $ 42,710 $ 32,167 $ 21,009 $
1,384 $ 97,270 $ 33,472 $ 23,419 $ 56,891 $ 154,161
Amortization 8,617 6,731 3,526 909
19,783 8,499 5,642 14,141 33,924
Costs applicable to sales $ 34,093 $ 25,436 $ 17,483
$ 475 $ 77,487 $ 24,973 $ 17,777 $ 42,750 $ 120,237
Silver
equivalent ounces sold 2,924,947 2,116,353 1,201,959 95,260
6,338,519 9,512,459
Gold equivalent ounces sold
28,084 24,815 52,899
Costs applicable to sales per ounce $ 11.66 $
12.02 $ 14.55 $ 4.99 $ 12.22 $ 889 $ 716 $ 808 $ 12.64
Inventory
adjustments (0.26 ) (0.01 ) (0.14 ) — (0.15 ) (47 ) —
(25 ) (0.24 )
Adjusted costs applicable to sales per
ounce $ 11.40 $ 12.01 $ 14.41 $ 4.99
$ 12.07
$ 842 $ 716
$ 783 $ 12.40
Costs applicable to sales per realized ounce $ 10.25 $ 10.90
$ 11.14 $ 10.95
Inventory adjustments (0.24 ) (0.01 ) (0.14
) (0.21 )
Adjusted costs applicable to sales per realized
ounce $ 10.01 $ 10.89
$ 11.00 $ 10.74
Costs applicable to sales $ 120,237
Treatment and refining costs 820
Sustaining capital
8,565
General and administrative 6,694
Exploration
2,112
Reclamation 4,493
Project/pre-development costs
3,648
All-in sustaining costs $ 146,569
Silver equivalent ounces sold 6,338,519
Kensington and
Wharf silver equivalent ounces sold 3,173,940
Consolidated silver equivalent ounces sold 9,512,459
All-in sustaining costs per silver equivalent ounce $
15.41 Inventory adjustments $ (0.24 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 15.17 All-in sustaining costs per
realized silver equivalent ounce $ 13.35
Inventory adjustments $ (0.21 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
13.14 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
June 30, 2015 Silver
Gold San
Total Total Total In
thousands except per ounce amounts Palmarejo
Rochester Bartolomé Endeavor
Silver Kensington Wharf Gold
Combined Costs applicable to sales, including
amortization (U.S. GAAP) $ 39,158 $ 29,779 $ 24,428 $ 3,204 $
96,569 $ 40,136 $ 20,123 $ 60,259 $ 156,828
Amortization
9,046 5,387 5,271 1,852 21,556
12,684 3,491 16,175 37,731
Costs
applicable to sales $ 30,112 $ 24,392 $ 19,157 $ 1,352 $ 75,013
$ 27,452 $ 16,632 $ 44,084 $ 119,097
Silver equivalent ounces
sold 2,169,960 2,024,856 1,439,388 209,130 5,843,334 9,067,614
Gold equivalent ounces sold
36,607 17,131 53,738
Costs
applicable to sales per ounce $ 13.88 $ 12.05 $ 13.31 $ 6.46 $
12.84 $ 750 $ 971 $ 820 $ 13.13
Inventory adjustments (0.67
) (0.04 ) (0.05 ) — (0.28 ) (5 ) (1 ) (4 ) (0.20 )
Adjusted costs applicable to sales per ounce $ 13.21 $ 12.01
$ 13.26 $ 6.46
$ 12.56 $ 745 $ 970
$
816 $ 12.93
Costs applicable to
sales per realized ounce $ 12.68 10.98 12.01 $ 11.72
Inventory adjustments (0.61 ) (0.04 ) (0.26 ) (0.18 )
Adjusted costs applicable to sales per realized ounce $
12.07 $ 10.94
$ 11.75 $ 11.54
Costs applicable to sales $ 119,097
Treatment and
refining costs 1,526
Sustaining capital 13,625
General and administrative 8,451
Exploration 3,579
Reclamation 4,036
Project/pre-development costs 2,030
All-in sustaining costs $ 152,344
Silver equivalent ounces sold 5,843,334
Kensington and
Wharf silver equivalent ounces sold 3,224,280
Consolidated silver equivalent ounces sold 9,067,614
All-in sustaining costs per silver equivalent ounce $
16.80 Inventory adjustments $ (0.20 )
Adjusted all-in sustaining costs per silver equivalent ounce
$ 16.60 All-in sustaining costs per
realized silver equivalent ounce $ 14.99
Inventory adjustments $ (0.18 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
14.81 Reconciliation of All-in Sustaining
Costs per Silver Equivalent Ounce for Three Months Ended
March 31, 2015 Silver
Gold San
In thousands except per ounce amounts Palmarejo
Rochester Bartolomé
Endeavor Total Kensington Total
Costs applicable to sales, including amortization (U.S.
GAAP) $ 41,824 $ 38,235 $ 23,818 $ 1,892 $ 105,769 $ 40,973 $
146,742
Amortization 7,333 6,843 4,691
1,259 20,126 11,554 31,680
Costs
applicable to sales $ 34,491 $ 31,392 $ 19,127 $ 633 $ 85,643 $
29,419 $ 115,062
Silver equivalent ounces sold 2,157,612
2,416,103 1,289,867 117,863 5,981,445 8,193,825
Gold ounces
sold 36,873
Costs applicable to sales per ounce $ 15.99 $ 12.99 $ 14.83
$ 5.37 $ 14.32 $ 798 $ 14.04
Inventory adjustments (1.43 )
(0.04 ) (0.36 ) — (0.61 ) (1 ) (0.45 )
Adjusted costs
applicable to sales per ounce $ 14.56 $ 12.95 $ 14.47 $ 5.37
$ 13.71 $ 797 $ 13.59
Costs applicable to sales per realized ounce $
14.85 $ 11.94 $ 13.47 $ 12.76
Inventory adjustments (1.33 )
(0.03 ) (0.57 ) (0.41 )
Adjusted costs applicable to sales per
realized ounce $ 13.52 $ 11.91
$ 12.90 $
12.35
Costs applicable to sales $ 115,062
Treatment and refining costs 1,490
Sustaining capital
10,909
General and administrative 8,834
Exploration
4,266
Reclamation 2,924
Project/pre-development costs
4,873
All-in sustaining costs $ 148,358
Silver equivalent ounces sold 5,981,445
Kensington silver
equivalent ounces sold 2,212,380
Consolidated silver
equivalent ounces sold 8,193,825
All-in sustaining
costs per silver equivalent ounce $ 18.11
Inventory adjustments $ (0.45 )
Adjusted all-in
sustaining costs per silver equivalent ounce $
17.66 All-in sustaining costs per realized
silver equivalent ounce $ 16.46
Inventory adjustments $ (0.41 )
Adjusted all-in
sustaining costs per realized silver equivalent ounce $
16.05
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160427006709/en/
Coeur Mining, Inc.Rebecca Hussey, Manager, Investor
Relations(312) 489-5827www.coeur.com
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