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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Coeur Mining Inc | NYSE:CDE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.15 | 3.28% | 4.73 | 4.83 | 4.36 | 4.39 | 7,729,441 | 00:59:32 |
Full-Year Production and Cost Guidance Reaffirmed
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported second quarter 2019 financial results, including revenue of $162.1 million, adjusted EBITDA1 of $30.6 million and cash flow from operating activities of $26.4 million. Including a non-cash write down of $11.9 million taken in the quarter, the Company reported GAAP net loss from continuing operations of $36.8 million, or $0.18 per share. On an adjusted basis1, the Company reported a net loss of $23.0 million, or $0.11 per share.
The Company is reaffirming full-year 2019 production guidance of 334,000 - 372,000 ounces of gold, 12.2 - 14.7 million ounces of silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds of lead. In addition, full-year cost guidance is being reaffirmed.
Key Highlights
“We made solid operational and financial progress on multiple fronts during the second quarter and are well positioned to deliver on our key initiatives in the second half of 2019,” said Mitchell J. Krebs, President and Chief Executive Officer. “In addition to prudent cost management, improved operational results helped drive adjusted EBITDA1 17% higher and general and administrative expenses 18% lower quarter-over-quarter. We continued to make solid progress on our top two 2019 initiatives by beginning to feed material through the HPGR unit at Rochester and demonstrating meaningful progress at Silvertip. We also successfully repaid $82.0 million of outstanding indebtedness under our revolving credit facility and continued to invest in our success-based exploration program, with encouraging near-mine resource expansion drill results at Kensington and Silvertip.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce/pound metrics)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Gold Sales
$
110.3
$
106.8
$
96.3
$
103.0
$
117.2
Silver Sales
$
45.0
$
40.1
$
44.6
$
43.0
$
52.8
Zinc Sales
$
2.6
$
5.6
$
1.9
$
1.7
$
—
Lead Sales
$
4.2
$
2.4
$
1.0
$
1.0
$
—
Consolidated Revenue
$
162.1
$
154.9
$
143.8
$
148.8
$
170.0
Costs Applicable to Sales
$
131.9
$
131.7
$
116.6
$
116.9
$
108.2
General and Administrative Expenses
$
7.8
$
9.5
$
7.1
$
7.7
$
7.7
Net Income (Loss)
$
(36.8
)
$
(24.9
)
$
0.4
$
(53.0
)
$
2.9
Net Income (Loss) Per Share
$
(0.18
)
$
(0.12
)
$
0.00
$
(0.29
)
$
0.02
Adjusted Net Income (Loss)1
$
(23.0
)
$
(23.0
)
$
16.1
$
(19.7
)
$
1.1
Adjusted Net Income (Loss)1 Per Share
$
(0.11
)
$
(0.11
)
$
0.08
$
(0.11
)
$
0.01
Weighted Average Shares Outstanding
207.8
202.4
199.5
185.2
187.5
EBITDA1
$
7.7
$
14.8
$
7.9
$
(12.3
)
$
42.1
Adjusted EBITDA1
$
30.6
$
26.1
$
36.2
$
24.7
$
48.4
Cash Flow from Operating Activities
$
26.4
$
(15.8
)
$
0.1
$
5.8
$
(1.3
)
Capital Expenditures
$
20.7
$
27.4
$
17.8
$
39.5
$
41.2
Free Cash Flow1
$
5.7
$
(43.3
)
$
(17.7
)
$
(33.7
)
$
(42.5
)
Cash, Equivalents & Short-Term Investments
$
37.9
$
69.0
$
115.1
$
104.7
$
123.5
Total Debt2
$
370.0
$
456.8
$
458.8
$
429.2
$
419.7
Average Realized Price Per Ounce – Gold
$
1,277
$
1,251
$
1,214
$
1,150
$
1,241
Average Realized Price Per Ounce – Silver
$
14.75
$
15.22
$
14.59
$
14.68
$
16.48
Average Realized Price Per Pound – Zinc
$
0.49
$
1.19
$
0.83
$
0.93
$
—
Average Realized Price Per Pound – Lead
$
0.82
$
0.86
$
0.80
$
0.90
$
—
Gold Ounces Produced
86,584
78,336
92,546
87,539
94,052
Silver Ounces Produced
3.1
2.5
3.5
2.9
3.2
Zinc Pounds Produced
5.3
3.7
3.1
1.1
—
Lead Pounds Produced
5.0
3.1
1.7
0.4
—
Gold Ounces Sold
86,385
85,326
79,291
89,609
94,455
Silver Ounces Sold
3.0
2.6
3.1
2.9
3.2
Zinc Pounds Sold
5.3
4.7
2.6
1.8
—
Lead Pounds Sold
5.2
2.7
1.4
1.2
—
Financial Results
Second quarter revenue increased 5% to $162.1 million compared to $154.9 million in the first quarter of 2019. The Company sold 86,385 ounces of gold and 3.0 million ounces of silver during the quarter, representing increases of 1% and 16%, respectively, compared to the prior period. Zinc and lead sales totaled 5.3 million and 5.2 million pounds during the second quarter, 13% and 93% increases, respectively, quarter-over-quarter.
Average realized gold price increased 2% quarter-over-quarter to $1,277 per ounce, while average realized silver price decreased 3% over the same period to $14.75 per ounce. The average realized gold price during the quarter reflects the sale of 6,190 ounces of gold at a price of $800 per ounce pursuant to Palmarejo's gold stream agreement. Average realized zinc price, net of treatment and refining charges, during the quarter was $0.49 per pound or 59% lower compared to the prior quarter largely driven by provisional pricing adjustments on spot zinc sales. Average realized lead price, net of treatment and refining charges, during the quarter was $0.82 per pound or 5% lower compared to the prior period.
Gold and silver sales accounted for 68% and 28% of second quarter revenue, respectively, while zinc and lead sales contributed approximately 2% each. The Company’s U.S. operations accounted for approximately 56% of second quarter revenue, down from approximately 59% in the first quarter primarily due to increased sales from Palmarejo, which totaled $59.3 million.
Costs applicable to sales were relatively flat quarter-over-quarter, totaling $131.9 million during the second quarter. Second quarter general and administrative expenses of $7.8 million were 18% lower quarter-over-quarter, reflecting the Company’s proactive cost management.
Quarterly exploration expense was $5.7 million, or 54% higher quarter-over-quarter, reflecting Coeur’s continued commitment to its success-based exploration program. During the quarter, exploration activities were focused on resource expansion and infill drilling at Palmarejo and Kensington as well as resource expansion drilling at Silvertip and the Sterling and Crown exploration properties in southern Nevada. See page 12 for further details.
During the second quarter, the Company recorded an income tax benefit of $5.5 million, largely attributable to lower taxable earnings during the quarter. Cash income and mining taxes paid during the quarter totaled $17.2 million, partially offset by $6.1 million of value-added tax refunds and includes $9.3 million of previously disclosed cash taxes incurred in connection with Coeur’s acquisition of Northern Empire Resources Corp. which allows the Company to utilize its U.S. net operating loss carryforwards against future income generated from the Sterling and Crown exploration properties.
Operating cash flow of $26.4 million in the second quarter reflects improved profitability from Palmarejo, Rochester and Kensington as well as proceeds from a $25.0 million prepayment, which more than offset unfavorable changes in other working capital items during the quarter.
Second quarter capital expenditures totaled $20.7 million, compared to $27.4 million in the first quarter. Lower capital expenditures were driven primarily by reduced expenditures at Kensington, Rochester and Palmarejo, partially offset by higher investment at Silvertip. Sustaining and development capital expenditures accounted for approximately 75% and 25%, respectively, of the Company’s total capital expenditures in the second quarter.
Second Quarter Debt Reduction Initiatives
During the second quarter, Coeur completed its previously announced $50.0 million at-the-market common stock offering program, raising net proceeds (after sales commissions) of $48.9 million.
The Company also amended an existing sales arrangement with a metal sales counterparty covering a portion of its gold concentrate from the Kensington mine in consideration for a $25.0 million prepayment. Pursuant to U.S. GAAP, Coeur recorded the $25.0 million as deferred revenue which is presented in accrued liabilities on the Company’s balance sheet. Under the terms of the prepayment, Coeur maintains its exposure to the price of gold and expects to recognize the full value of the accrued liability by the end of 2019.
Together with cash and cash equivalents, proceeds from these transactions were used to help repay $82.0 million of outstanding indebtedness under the Company’s $250.0 million senior secured revolving credit facility during the second quarter.
On August 6, 2019, the Company amended its credit agreement with respect to its senior secured revolving credit facility to provide the Company with additional financial flexibility under its consolidated interest coverage ratio as of June 30, 2019.
Richmond Hill Project Option Agreement
In June 2019, Coeur entered into the Option Agreement with Barrick that provides the Company an exclusive option to acquire the Richmond Hill Project, which is located approximately four miles from its Wharf mine in South Dakota. The Project is a past producing gold operation with a total land package of approximately 2,340 acres.
Under the terms of the Option Agreement, Coeur may acquire 100% of the Project in consideration for:
There are no minimum spending requirements under the terms of the Option Agreement, and Coeur’s exclusive option to acquire 100% of the Project expires in September 2021.
Operations
Second quarter 2019 highlights for each of the Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
447,727
378,987
378,389
300,116
344,073
Average gold grade (oz/t)
0.07
0.07
0.08
0.10
0.11
Average silver grade (oz/t)
4.74
4.64
5.96
6.26
6.86
Average recovery rate – Au
87.7%
83.4%
97.6%
88.8%
89.9%
Average recovery rate – Ag
81.8%
72.8%
84.0%
82.2%
87.5%
Gold ounces produced
28,246
23,205
31,239
27,885
33,702
Silver ounces produced (000’s)
1,735
1,278
1,893
1,544
2,066
Gold ounces sold
28,027
27,394
23,667
29,830
31,207
Silver ounces sold (000’s)
1,709
1,405
1,534
1,572
2,092
Average realized price per gold ounce
$1,210
$1,154
$1,148
$1,082
$1,162
Average realized price per silver ounce
$14.86
$15.39
$14.57
$14.75
$16.49
Metal sales
$59.3
$53.2
$49.6
$55.5
$70.7
Costs applicable to sales
$36.5
$33.2
$27.1
$31.6
$30.3
Adjusted CAS per AuOz1
$741
$713
$624
$615
$497
Adjusted CAS per AgOz1
$9.17
$9.66
$7.92
$8.39
$7.05
Exploration expense
$1.1
$1.0
$0.1
$3.2
$3.2
Cash flow from operating activities
$15.6
$5.9
$13.3
$8.6
$1.3
Sustaining capital expenditures (excludes capital lease payments)
$5.0
$6.0
$3.6
$2.0
$9.5
Development capital expenditures
$2.6
$2.7
$2.3
$2.7
$—
Total capital expenditures
$7.6
$8.7
$5.9
$4.7
$9.5
Free cash flow1
$8.0
$(2.8)
$7.4
$3.9
$(8.2)
Rochester, Nevada
(Dollars in millions, except per ounce amounts)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Ore tons placed
2,786,287
2,667,559
3,674,566
4,061,082
4,083,028
Average silver grade (oz/t)
0.45
0.46
0.46
0.52
0.53
Average gold grade (oz/t)
0.003
0.003
0.004
0.004
0.004
Silver ounces produced (000’s)
971
960
1,466
1,290
1,125
Gold ounces produced
8,609
8,256
15,926
14,702
12,273
Silver ounces sold (000’s)
962
1,000
1,391
1,248
1,097
Gold ounces sold
8,642
8,511
15,339
14,257
12,030
Average realized price per silver ounce
$14.83
$15.31
$14.53
$14.70
$16.47
Average realized price per gold ounce
$1,295
$1,299
$1,234
$1,204
$1,297
Metal sales
$25.5
$26.4
$39.1
$35.5
$33.7
Costs applicable to sales
$24.7
$22.5
$29.4
$27.5
$24.5
Adjusted CAS per AgOz1
$13.19
$12.83
$10.79
$11.35
$11.89
Adjusted CAS per AuOz1
$1,153
$1,092
$917
$929
$936
Exploration expense
$0.1
$0.1
$—
$0.1
$0.2
Cash flow from operating activities
$1.6
$(1.0)
$17.9
$5.7
$6.0
Sustaining capital expenditures (excludes capital lease payments)
$0.4
$1.8
$7.1
$2.7
$0.4
Development capital expenditures
$2.4
$2.8
$(4.1)
$0.9
$0.3
Total capital expenditures
$2.8
$4.6
$3.0
$3.6
$0.7
Free cash flow1
$(1.2)
$(5.6)
$14.9
$2.1
$5.3
Kensington, Alaska
(Dollars in millions, except per ounce amounts)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
160,510
164,332
149,998
163,603
168,751
Average gold grade (oz/t)
0.23
0.20
0.21
0.17
0.16
Average recovery rate
93.0%
90.2%
91.1%
90.4%
92.6%
Gold ounces produced
34,049
29,973
28,421
25,515
25,570
Gold ounces sold
34,415
31,335
24,979
25,648
28,165
Average realized price per gold ounce, gross
$1,332
$1,301
$1,267
$1,195
$1,305
Treatment and refining charges per gold ounce
$20
$15
$21
$34
$36
Average realized price per gold ounce, net
$1,312
$1,286
$1,246
$1,161
$1,269
Metal sales
$45.2
$40.3
$31.1
$29.8
$35.7
Costs applicable to sales
$29.1
$32.2
$21.4
$28.2
$34.2
Adjusted CAS per AuOz1
$842
$990
$843
$1,091
$1,196
Exploration expense
$2.0
$0.5
$1.3
$1.6
$1.4
Cash flow from operating activities
$41.4
$6.2
$7.9
$(0.4)
$3.2
Sustaining capital expenditures (excludes capital lease payments)
$4.9
$9.4
$9.8
$9.7
$9.2
Development capital expenditures
$—
$—
$0.8
$2.3
$1.5
Total capital expenditures
$4.9
$9.4
$10.6
$12.0
$10.7
Free cash flow1
$36.5
$(3.2)
$(2.7)
$(12.4)
$(7.5)
Wharf, South Dakota
(Dollars in millions, except per ounce amounts)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Ore tons placed
919,435
1,090,510
1,644,168
1,127,391
1,075,820
Average gold grade (oz/t)
0.023
0.020
0.020
0.023
0.023
Gold ounces produced
15,680
16,902
16,960
19,437
22,507
Silver ounces produced (000’s)
12
13
13
13
13
Gold ounces sold
15,301
18,086
15,306
19,874
23,053
Silver ounces sold (000’s)
12
14
11
12
14
Average realized price per gold ounce
$1,311
$1,317
$1,247
$1,198
$1,285
Metal sales
$20.2
$24.0
$19.3
$24.0
$29.8
Costs applicable to sales
$15.5
$17.4
$14.6
$18.0
$19.3
Adjusted CAS per AuOz1
$1,002
$949
$939
$895
$822
Exploration expense
$—
$—
$—
$0.1
$—
Cash flow from operating activities
$0.5
$4.2
$(1.9)
$3.7
$11.5
Sustaining capital expenditures (excludes capital lease payments)
$0.2
$0.4
$0.7
$1.2
$1.2
Development capital expenditures
$—
$—
$—
$—
$—
Total capital expenditures
$0.2
$0.4
$0.7
$1.2
$1.2
Free cash flow1
$0.3
$3.8
$(2.6)
$2.5
$10.3
Silvertip, British Columbia
(Dollars in millions, except per ounce and per pound amounts)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Tons milled
59,689
62,051
38,802
10,652
—
Average silver grade (oz/t)
7.48
5.50
6.06
6.66
—
Average zinc grade (%)
7.5%
5.90%
5.80%
8.0%
—%
Average lead grade (%)
5.4%
3.7%
3.9%
4.3%
—%
Average recovery rate – Ag
77.0%
69.9%
60.5%
56.3%
—%
Average recovery rate – Zn
59.1%
50.5%
69.1%
64.5%
—%
Average recovery rate – Pb
77.3%
66.8%
54.7%
45.1%
—%
Silver ounces produced (000's)
344
239
142
40
—
Zinc pounds produced (000's)
5,322
3,719
3,082
1,099
—
Lead pounds produced (000's)
4,980
3,077
1,659
413
—
Silver ounces sold (000's)
365
215
124
99
—
Zinc pounds sold (000's)
5,303
4,723
2,604
1,772
—
Lead pounds sold (000's)
5,186
2,748
1,419
1,230
—
Average realized price per silver ounce, gross
$15.18
$14.98
$15.54
$14.62
$—
Treatment and refining charges per silver ounce
$1.18
$1.24
$1.38
$3.34
$—
Average realized price per silver ounce, net
$14.00
$13.74
$14.16
$11.28
$—
Average realized price per zinc pound, gross
$0.83
$1.50
$1.07
$1.20
$—
Treatment and refining charges per zinc pound
$0.34
$0.31
$0.24
$0.27
$—
Average realized price per zinc pound, net
$0.49
$1.19
$0.83
$0.93
$—
Average realized price per lead pound, gross
$0.87
$0.92
$0.87
$0.97
$—
Treatment and refining charges per lead pound
$0.05
$0.06
$0.07
$0.07
$—
Average realized price per lead pound, net
$0.82
$0.86
$0.80
$0.90
$—
Metal sales
$11.9
$10.9
$4.8
$4.1
$—
Costs applicable to sales
$26.2
$26.4
$24.1
$11.5
$—
Adjusted CAS per AgOz1
$13.31
$13.73
$17.68
$9.86
$—
Adjusted CAS per ZnLb1
$1.02
$1.18
$0.95
$0.64
$—
Adjusted CAS per PbLb1
$0.77
$0.88
$1.02
$0.55
$—
Exploration expense
$0.7
$0.1
$0.3
$2.3
$0.1
Cash flow from operating activities
$(11.6)
$(13.9)
$(34.1)
$(6.8)
$—
Sustaining capital expenditures (excludes capital lease payments)
$5.0
$4.1
$8.2
$0.4
$—
Development capital expenditures
$—
$—
$(10.8)
$17.5
$19.0
Total capital expenditures
$5.0
$4.1
$(2.6)
$17.9
$19.0
Free cash flow1
$(16.6)
$(18.0)
$(31.5)
$(24.7)
$(19.0)
Exploration
During the second quarter, the Company drilled 151,153 feet (46,072 meters) at a total cost of $6.8 million ($5.7 million expensed and $1.1 million capitalized), compared to 90,126 feet (27,470 meters) at a total cost of $6.6 million ($3.7 million expensed and $2.9 million capitalized) in the first quarter. Total feet drilled during the second quarter was approximately 68% higher compared to the prior period, reflecting Coeur’s continued commitment to its success-based exploration program as well as a renewed focus on expansion drilling at Silvertip and the Sterling and Crown exploration properties. The 2019 drill programs at Rochester and Wharf are scheduled to begin in the third quarter.
At Silvertip, two surface core drill rigs began expansion drilling in the northern and central Discovery Zone, with encouraging results thus far. Highlights include3: holes DSC19-Pad4-002 (26.0 feet of 13.76 oz/ton silver, 19.1% zinc, and 8.4% lead) and DSC19-Pad4-004 (25.9 feet of 4.93 oz/ton silver, 12.6% zinc and 3.1% lead). Also, hole DSC19-Pad1-003 intercepted two significant intercepts (14.8 feet of 15.52 oz/ton silver, 16.5% zinc and 10.6% lead and 3.6 feet of 2.88 oz/ton silver, 21.4% zinc and 3.0% lead) demonstrating more evidence for stacked manto horizons at depth within the Discovery Zone3. Given its success through the second quarter, the remainder of the 2019 exploration program will continue to focus on expansion drilling in the Discovery Zone, north, east and south of the 2018 resource.
At Kensington, three underground core drill rigs were primarily focused on resource expansion drilling with an emphasis on Lower Raven and Elmira. Results from the expansion drilling at Elmira continue to be encouraging. One surface rig began drilling in late June on the Comet Vein, which lies directly above the Kensington access tunnel. Limited infill drilling during the quarter was completed at the Elmira and Raven veins.
At the Sterling and Crown exploration properties, located in southern Nevada, one reverse circulation rig was active during the second quarter. The rig was focused on expansion drilling at the South Daisy resource, which is contained in the Crown Block. Concurrent geologic mapping and sampling at the Crown Block has resulted in two new drill targets located within the northern Daisy area with no prior exploration drilling, both of which will require amended permits prior to drilling. The Crown Block exploration drilling and surface mapping are expected to continue through the third quarter, with one rig focused on the Daisy and SNA resources. Coeur expects to add an additional rig, initially at the Sterling Mine, and move it to the northern portion of Crown Block later in the year.
At Palmarejo, up to ten surface and underground core rigs were active during the second quarter. Infill drilling focused on La Nación as well as veins northwest and northeast of the Guadalupe mine with encouraging results particularly at La Nación and Northwest Guadalupe. Expansion drilling focused on extending mineralization northwest from the Guadalupe mine and north of the Independencia mine. The Company plans to continue expansion drilling at the North Independencia and the Northwest Guadalupe zones during the third quarter, as well as adding a third rig focused on expanding the inferred resource at Independencia East, located approximately 1,970 feet (600 meters) east of the current Independencia mine.
At the La Preciosa project, located in Durango, Mexico, a new geological model of the La Gloria-Abundancia vein structures has highlighted potential opportunities for a higher-grade, lower tonnage resource. The Company expects to continue working during the second half of the year to extend the review to the deeper, but larger Martha structure.
The Company also engaged in greenfield exploration during the quarter, funding drilling at Evrim Resources Corp.’s El Sarape Project, located in Sonora, Mexico. Following the completion of a ten drillhole program, Coeur elected to discontinue its option agreement for the exploration and development of the El Sarape Project.
2019 Production Guidance
Gold
Silver
Zinc
Lead
(oz)
(K oz)
(K lbs)
(K lbs)
Palmarejo
95,000 - 105,000
6,500 - 7,200
—
—
Rochester
40,000 - 50,000
4,200 - 5,000
—
—
Kensington
117,000 - 130,000
—
—
—
Wharf
82,000 - 87,000
—
—
—
Silvertip
—
1,500 - 2,500
25,000 - 40,000
20,000 - 35,000
Total
334,000 - 372,000
12,200 - 14,700
25,000 - 40,000
20,000 - 35,000
2019 Costs Applicable to Sales Guidance
Gold
Silver
Zinc
Lead
($/oz)
($/oz)
($/lb)
($/lb)
Palmarejo (co-product)
$650 - $750
$9.00 - $10.00
—
—
Rochester (co-product)
$1,000 - $1,100
$12.50 - $13.50
—
—
Kensington
$950 - $1,050
—
—
—
Wharf (by-product)
$850 - $950
—
—
—
Silvertip (co-product)
—
$14.00 - $16.00
$1.00 - $1.25
$0.85 - $1.05
2019 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures, Sustaining
$70 - $80
Capital Expenditures, Development
$30 - $40
Exploration, Expensed
$18 - $22
Exploration, Capitalized
$8 - $12
General & Administrative Expenses
$32 - $36
Note: The Company’s guidance figures assume $1,275/oz gold, $15.50/oz silver, $1.15/lb zinc and $0.95/lb lead as well as CAD of 1.30 and MXN of 20.00.
Financial Results and Conference Call
Coeur will host a conference call to discuss its second quarter financial results on August 8, 2019 at 11:00 a.m. Eastern Time.
Dial-In Numbers:
(855) 560-2581 (U.S.)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID:
Coeur Mining
Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, 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 August 22, 2019.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
101 32 149
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, exploration expenditures, expenses, cash flow, expectations regarding Silvertip, including but not limited to timing of receipt of permits, grades, exploration and development efforts, the impact of commissioning of the new crushing circuit at Rochester, potential impact of the Richmond Hill Project on Wharf 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 Silvertip will not obtain necessary permits on the expected timeline or at all, the risk that the commissioning of the new crushing circuit at Rochester will not occur on a timely basis or the anticipated benefits thereof will not be achieved, the risk that the Richmond Hill Project will not be feasible, 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 reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.
Christopher Pascoe, Coeur’s Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur’s mineral projects in this news release. 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, 2018.
Notes
Average Spot Prices
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Average Silver Spot Price Per Ounce
$
14.88
$
15.57
$
14.54
$
15.02
$
16.53
Average Gold Spot Price Per Ounce
$
1,309
$
1,304
$
1,226
$
1,213
$
1,306
Average Zinc Spot Price Per Pound
$
1.25
$
1.23
$
1.19
$
1.15
$
1.41
Average Lead Spot Price Per Pound
$
0.85
$
0.92
$
0.89
$
0.95
$
1.08
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2019 (unaudited)
December 31, 2018
ASSETS
In thousands, except share data
CURRENT ASSETS
Cash and cash equivalents
$
37,907
$
115,081
Receivables
38,495
29,744
Inventory
59,048
66,279
Ore on leach pads
72,310
75,122
Prepaid expenses and other
12,066
11,393
219,826
297,619
NON-CURRENT ASSETS
Property, plant and equipment, net
298,926
298,451
Mining properties, net
945,839
971,567
Ore on leach pads
76,910
66,964
Restricted assets
8,730
12,133
Equity and debt securities
19,457
17,806
Receivables
31,871
31,151
Other
75,671
16,809
TOTAL ASSETS
$
1,677,230
$
1,712,500
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable
$
65,676
$
47,210
Accrued liabilities and other
116,187
82,619
Debt
21,772
24,937
Reclamation
6,552
6,552
210,187
161,318
NON-CURRENT LIABILITIES
Debt
348,205
433,889
Reclamation
133,127
128,994
Deferred tax liabilities
61,653
79,070
Other long-term liabilities
77,612
56,717
620,597
698,670
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 221,858,660 issued and outstanding at June 30, 2019 and 203,310,443 at December 31, 2018
2,219
2,033
Additional paid-in capital
3,492,736
3,443,082
Accumulated other comprehensive income (loss)
—
(59
)
Accumulated deficit
(2,648,509
)
(2,592,544
)
846,446
852,512
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,677,230
$
1,712,500
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
In thousands, except share data
Revenue
$
162,123
$
169,987
$
316,993
$
333,254
COSTS AND EXPENSES
Costs applicable to sales(1)
131,948
108,246
263,598
207,586
Amortization
43,204
29,459
85,080
60,236
General and administrative
7,750
7,650
17,224
16,454
Exploration
5,719
6,429
9,433
13,112
Pre-development, reclamation, and other
4,334
3,620
8,768
7,845
Total costs and expenses
192,955
155,404
384,103
305,233
OTHER INCOME (EXPENSE), NET
Fair value adjustments, net
(5,296
)
(2,462
)
3,824
2,192
Interest expense, net of capitalized interest
(6,825
)
(6,018
)
(13,279
)
(11,983
)
Other, net
643
544
703
1,057
Total other income (expense), net
(11,478
)
(7,936
)
(8,752
)
(8,734
)
Income (loss) before income and mining taxes
(42,310
)
6,647
(75,862
)
19,287
Income and mining tax (expense) benefit
5,546
(3,717
)
14,204
(15,666
)
Income (loss) from continuing operations
$
(36,764
)
$
2,930
$
(61,658
)
$
3,621
Income (loss) from discontinued operations
—
—
5,693
550
NET INCOME (LOSS)
$
(36,764
)
$
2,930
$
(55,965
)
$
4,171
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Unrealized gain (loss) on debt and equity securities
—
(87
)
59
(365
)
Other comprehensive income (loss)
—
(87
)
59
(365
)
COMPREHENSIVE INCOME (LOSS)
$
(36,764
)
$
2,843
$
(55,906
)
$
3,806
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing operations
$
(0.18
)
$
0.02
$
(0.30
)
$
0.02
Net income (loss) from discontinued operations
0.00
0.00
0.03
0.00
Basic(2)
$
(0.18
)
$
0.02
$
(0.27
)
$
0.02
Diluted income (loss) per share:
Net income (loss) from continuing operations
$
(0.18
)
$
0.02
$
(0.30
)
$
0.02
Net income (loss) from discontinued operations
0.00
0.00
0.03
0.00
Diluted(2)
$
(0.18
)
$
0.02
$
(0.27
)
$
0.02
(1) Excludes amortization.
(2) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(36,764
)
$
2,930
$
(55,965
)
$
4,171
(Income) loss from discontinued operations
—
—
(5,693
)
(550
)
Adjustments:
Amortization
43,204
29,459
85,080
60,236
Accretion
3,007
3,886
5,950
7,204
Deferred taxes
(9,158
)
(1,265
)
(17,417
)
(811
)
Fair value adjustments, net
5,296
2,462
(3,824
)
(2,192
)
Stock-based compensation
1,987
1,850
4,210
4,636
Inventory write-downs
11,872
—
27,319
—
Other
4,731
2,174
5,981
2,242
Changes in operating assets and liabilities:
Receivables
(7,624
)
(8,888
)
(17,359
)
(10,579
)
Prepaid expenses and other current assets
(834
)
8,126
(3,518
)
2,491
Inventory and ore on leach pads
(14,391
)
(2,766
)
(33,212
)
(11,474
)
Accounts payable and accrued liabilities
25,109
(39,262
)
19,037
(41,127
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS
26,435
(1,294
)
10,589
14,247
CASH USED IN OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
—
(2,690
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
26,435
(1,294
)
10,589
11,557
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(20,749
)
(41,165
)
(48,187
)
(83,510
)
Proceeds from the sale of assets
57
96
904
156
Purchase of investments
—
(39
)
—
(400
)
Sale of investments
1,102
11,141
1,102
12,760
Proceeds from notes receivable
2,000
—
7,168
—
Other
277
(33
)
2,018
(98
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
(17,313
)
(30,000
)
(36,995
)
(71,092
)
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
—
(28,470
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
(17,313
)
(30,000
)
(36,995
)
(99,562
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
48,887
—
48,887
—
Issuance of notes and bank borrowings, net of issuance costs
—
—
15,000
15,000
Payments on debt, finance leases, and associated costs
(90,812
)
(4,373
)
(113,273
)
(22,822
)
Other
—
(233
)
(3,259
)
(4,839
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
(41,925
)
(4,606
)
(52,645
)
(12,661
)
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
—
(22
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
(41,925
)
(4,606
)
(52,645
)
(12,683
)
Effect of exchange rate changes on cash and cash equivalents
56
(175
)
257
382
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(32,747
)
(36,075
)
(78,794
)
(100,306
)
Less net cash used in discontinued operations(1)
—
—
—
(32,930
)
(32,747
)
(36,075
)
(78,794
)
(67,376
)
Cash, cash equivalents and restricted cash at beginning of period
72,022
172,101
118,069
203,402
Cash, cash equivalents and restricted cash at end of period
$
39,275
$
136,026
$
39,275
$
136,026
(1) Less net cash used in discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748, during the six months ended June 30, 2018.
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
LTM 2Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Net income (loss)
$
(108,541
)
$
(36,764
)
$
(19,201
)
$
468
$
(53,044
)
$
2,930
(Income) loss from discontinued operations, net of tax
(5,693
)
—
(5,693
)
—
—
—
Interest expense, net of capitalized interest
25,660
6,825
6,454
6,563
5,818
6,018
Income tax provision (benefit)
(46,650
)
(5,546
)
(8,658
)
(36,231
)
3,785
3,717
Amortization
153,317
43,204
41,876
37,053
31,184
29,459
EBITDA
18,093
7,719
14,778
7,853
(12,257
)
42,124
Fair value adjustments, net
(5,270
)
5,296
(9,120
)
(731
)
(715
)
2,462
Foreign exchange (gain) loss
6,223
468
665
1,986
3,104
3,309
(Gain) loss on sale of assets and securities
346
72
(52
)
298
28
(586
)
Mexico inflation adjustment
—
—
—
—
—
(1,939
)
Transaction costs
5
—
—
(1,044
)
1,049
—
Interest income on notes receivables
(1,153
)
(18
)
(180
)
(327
)
(628
)
(573
)
Manquiri sale consideration write-down
18,599
—
—
—
18,599
—
Silvertip start-up write-down
54,039
11,872
15,447
17,974
8,746
—
Rochester In-Pit crusher write-down
3,441
—
—
—
3,441
—
Receivable write-down
6,536
—
6,536
—
—
Asset retirement obligation accretion
11,580
3,007
2,943
2,747
2,883
2,817
Inventory adjustments and write-downs
3,856
2,193
1,623
858
421
817
Adjusted EBITDA
$
116,295
$
30,609
$
26,104
$
36,150
$
24,671
$
48,431
Revenue
$
609,643
$
162,123
$
154,870
143,855
$
148,795
$
169,987
Adjusted EBITDA Margin
19
%
19
%
17
%
25
%
17
%
28
%
Adjusted Net Income (Loss) Reconciliation
(Dollars in thousands except per share amounts)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Net income (loss)
$
(36,764
)
$
(19,201
)
$
468
$
(53,044
)
$
2,930
Income loss from discontinued operations, net of tax
—
(5,693
)
—
—
—
Fair value adjustments, net
5,296
(9,120
)
(731
)
(715
)
2,462
(Gain) loss on sale of assets and securities
72
(52
)
326
—
(586
)
Gain on repurchase of Rochester royalty
—
—
(28
)
28
—
Mexico inflation adjustment
—
—
—
—
(1,939
)
Transaction costs
—
—
(1,044
)
1,049
—
Interest income on notes receivables
(18
)
(180
)
(327
)
(628
)
(573
)
Manquiri sale consideration write-down
—
—
—
18,599
—
Silvertip start-up write-down
11,872
15,447
17,974
8,746
—
Rochester In-Pit crusher write-down
—
—
—
3,441
—
Receivable write-down
—
—
6,536
—
—
Foreign exchange loss (gain)
889
1,256
(530
)
6,062
(1,233
)
Tax effect of adjustments(1)
(4,332
)
(5,415
)
(6,559
)
(3,191
)
—
Adjusted net income (loss)
$
(22,985
)
$
(22,958
)
$
16,085
$
(19,653
)
$
1,061
Adjusted net income (loss) per share - Basic
$
(0.11
)
$
(0.11
)
$
0.08
$
(0.11
)
$
0.01
Adjusted net income (loss) per share - Diluted
$
(0.11
)
$
(0.11
)
$
0.08
$
(0.11
)
$
0.01
Consolidated Free Cash Flow Reconciliation
(Dollars in thousands)
2Q 2019
1Q 2019
4Q 2018
3Q 2018
2Q 2018
Cash flow from continuing operations
$
26,435
$
(15,846
)
$
72
$
5,789
$
(1,294
)
Capital expenditures from continuing operations
20,749
27,438
17,805
39,472
41,165
Free cash flow
5,686
(43,284
)
(17,733
)
(33,683
)
(42,459
)
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 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 Three Months Ended September 30, 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)
$
46,349
$
32,842
$
35,153
$
20,856
$
12,609
$
147,809
Amortization
(14,795
)
(5,294
)
(6,912
)
(2,878
)
(1,073
)
(30,952
)
Costs applicable to sales
$
31,554
$
27,548
$
28,241
$
17,978
$
11,536
$
116,857
Inventory Adjustments
(16
)
(136
)
(265
)
(4
)
(8,746
)
(9,167
)
By-product credit
—
—
—
(177
)
—
(177
)
Adjusted costs applicable to sales
$
31,538
$
27,412
$
27,976
$
17,797
$
2,790
$
107,513
Metal Sales
Gold ounces
29,831
14,257
25,648
19,874
89,610
Silver ounces
1,572,093
1,248,163
—
12,426
98,831
2,931,513
Zinc pounds
1,772,023
1,772,023
Lead pounds
1,230,266
1,230,266
Revenue Split
Gold
58
%
48
%
100
%
100
%
Silver
42
%
52
%
35
%
Zinc
41
%
Lead
24
%
Adjusted costs applicable to sales
Gold ($/oz)
$
615
$
929
$
1,091
$
895
Silver ($/oz)
$
8.39
$
11.35
$
9.86
Zinc ($/lb)
$
0.64
Lead ($/lb)
$
0.55
Reconciliation of Costs Applicable to Sales
for Three Months Ended June 30, 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)
$
44,944
$
29,243
$
40,668
$
22,611
$
—
$
137,466
Amortization
(14,633
)
(4,793
)
(6,441
)
(3,353
)
—
(29,220
)
Costs applicable to sales
$
30,311
$
24,450
$
34,227
$
19,258
$
—
$
108,246
Inventory Adjustments
(41
)
(144
)
(551
)
(81
)
—
(817
)
By-product credit
—
—
—
(220
)
—
(220
)
Adjusted costs applicable to sales
$
30,270
$
24,306
$
33,676
$
18,957
$
—
$
107,209
Metal Sales
Gold ounces
31,207
12,031
28,165
23,053
94,456
Silver ounces
2,091,788
1,097,272
—
13,744
—
3,202,804
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
51
%
46
%
100
%
100
%
Silver
49
%
54
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to sales
Gold ($/oz)
$
497
$
936
$
1,196
$
822
Silver ($/oz)
$
7.05
$
11.89
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs Applicable to Sales for 2019 Guidance
In thousands except per ounce amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including amortization (U.S. GAAP)
$
196,310
$
131,918
$
154,285
$
90,299
$
156,417
$
729,229
Amortization
62,808
21,606
36,909
11,583
57,177
190,083
Costs applicable to sales
$
133,502
$
110,312
$
117,376
$
78,716
$
99,240
$
539,146
By-product credit
—
—
—
(1,167
)
—
(1,167
)
Adjusted costs applicable to sales
$
133,502
$
110,312
$
117,376
$
77,549
$
99,240
$
537,979
Metal Sales
Gold ounces
100,000
45,000
121,000
85,500
Silver ounces
6,850,000
4,800,000
75,000
2,100,000
Zinc pounds
35,000,000
Lead pounds
28,500,000
Revenue Split
Gold
52%
43%
100%
100%
—
Silver
48%
57%
—
—
32%
Zinc
—
—
—
—
40%
Lead
—
—
—
—
28%
Costs applicable to sales per ounce
Gold ($/oz)
$650 - $750
$1,000 - $1,100
$950 - $1,050
$850 - $950
—
Silver ($/oz)
$9.00 - $10.00
$12.50 - $13.50
—
—
$14.00 - $16.00
Zinc ($/lb)
—
—
—
—
$1.00 - $1.25
Lead ($/lb)
—
—
—
—
$0.85 - $1.05
View source version on businesswire.com: https://www.businesswire.com/news/home/20190807005802/en/
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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