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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 | |
---|---|---|---|---|---|---|---|---|
0.05 | 1.04% | 4.84 | 5.08 | 4.764 | 4.90 | 6,442,693 | 01:00:00 |
Full-Year Production and Cost Guidance Reaffirmed
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported third quarter 2019 financial results, including revenue of $199.5 million and cash flow from operating activities of $42.0 million. Including non-cash write downs of $15.0 million taken in the quarter, the Company reported GAAP net loss from continuing operations of $14.3 million, or $0.06 per share. On an adjusted basis1, the Company reported EBITDA of $61.0 million and net loss from continuing operations of $5.3 million, or $0.02 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 significant progress during the third quarter toward achieving our full-year 2019 operational and financial objectives,” said Mitchell J. Krebs, President and Chief Executive Officer. “The combination of strong operational performance and higher prices led to a 23% increase in revenue, a near doubling of adjusted EBITDA1 and positive free cash flow1 for the second consecutive quarter. We also improved our financial flexibility by materially reducing our debt level and bolstering our liquidity while continuing to invest in near-mine exploration and high-return organic growth opportunities.”
“At the Silvertip silver-zinc-lead mine in British Columbia, Canada, we continue to make steady progress addressing the operation’s mill availability challenges. We extended the amount of planned downtime during the quarter to prioritize the completion of several key projects, which resulted in lower production levels. However, we mobilized additional third-party resources during the quarter to accelerate our mill stabilization efforts, which are now having the intended impact.”
Mr. Krebs continued, “We anticipate this strong performance to continue in the fourth quarter as we seek to generate a third consecutive quarter of increasing, positive free cash flow1.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce/pound metrics)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Gold Sales
$
141.9
$
110.3
$
106.8
$
96.3
$
103.0
Silver Sales
$
51.6
$
45.0
$
40.1
$
44.6
$
43.0
Zinc Sales
$
2.0
$
2.6
$
5.6
$
1.9
$
1.7
Lead Sales
$
4.0
$
4.2
$
2.4
$
1.0
$
1.0
Consolidated Revenue
$
199.5
$
162.1
$
154.9
$
143.8
$
148.8
Costs Applicable to Sales3
$
141.0
$
131.9
$
131.7
$
116.6
$
116.9
General and Administrative Expenses
$
9.6
$
7.8
$
9.5
$
7.1
$
7.7
Net Income (Loss)
$
(14.3
)
$
(36.8
)
$
(24.9
)
$
0.4
$
(53.0
)
Net Income (Loss) Per Share
$
(0.06
)
$
(0.18
)
$
(0.12
)
$
0.00
$
(0.29
)
Adjusted Net Income (Loss)1
$
(5.3
)
$
(23.0
)
$
(23.0
)
$
16.1
$
(19.7
)
Adjusted Net Income (Loss)1 Per Share
$
(0.02
)
$
(0.11
)
$
(0.11
)
$
0.08
$
(0.11
)
Weighted Average Shares Outstanding
225.9
207.8
202.4
199.5
185.2
EBITDA1
$
37.6
$
7.7
$
14.8
$
7.9
$
(12.3
)
Adjusted EBITDA1
$
61.0
$
30.6
$
26.1
$
36.2
$
24.7
Cash Flow from Operating Activities
$
42.0
$
26.4
$
(15.8
)
$
0.1
$
5.8
Capital Expenditures
$
30.7
$
20.7
$
27.4
$
17.8
$
39.5
Free Cash Flow1
$
11.3
$
5.7
$
(43.3
)
$
(17.7
)
$
(33.7
)
Cash, Equivalents & Short-Term Investments
$
65.3
$
37.9
$
69.0
$
115.1
$
104.7
Total Debt2
$
298.7
$
370.0
$
456.8
$
458.8
$
429.2
Average Realized Price Per Ounce – Gold
$
1,413
$
1,277
$
1,251
$
1,214
$
1,150
Average Realized Price Per Ounce – Silver
$
17.17
$
14.75
$
15.22
$
14.59
$
14.68
Average Realized Price Per Pound – Zinc
$
0.50
$
0.49
$
1.19
$
0.83
$
0.93
Average Realized Price Per Pound – Lead
$
0.92
$
0.82
$
0.86
$
0.80
$
0.90
Gold Ounces Produced
99,782
86,584
78,336
92,546
87,539
Silver Ounces Produced
3.0
3.1
2.5
3.5
2.9
Zinc Pounds Produced
4.2
5.3
3.7
3.1
1.1
Lead Pounds Produced
4.5
5.0
3.1
1.7
0.4
Gold Ounces Sold
100,407
86,385
85,326
79,291
89,609
Silver Ounces Sold
3.0
3.0
2.6
3.1
2.9
Zinc Pounds Sold
4.1
5.3
4.7
2.6
1.8
Lead Pounds Sold
4.3
5.2
2.7
1.4
1.2
Financial Results
Third quarter revenue increased 23% to $199.5 million compared to $162.1 million in the second quarter of 2019. The Company sold 100,407 ounces of gold representing an increase of 16% compared to the prior period, while silver sales remained relatively consistent at 3.0 million ounces. Zinc and lead sales totaled 4.1 million and 4.3 million pounds during the third quarter, 23% and 17% lower, respectively, quarter-over-quarter.
Average realized gold and silver prices increased 11% and 16%, respectively, quarter-over-quarter to $1,413 and $17.17 per ounce. The average realized gold price during the quarter reflects the sale of 10,785 ounces of gold at a price of $800 per ounce pursuant to Palmarejo's gold stream agreement. Average realized zinc price remained relatively consistent quarter-over-quarter at $0.50 per pound, while average realized lead price increased 12% to $0.92 per pound. The average realized zinc and lead prices are presented net of treatment and refining charges and reflect the impact of provisional price adjustments.
Gold and silver sales accounted for 71% and 26% of third quarter revenue, respectively, while zinc and lead together accounted for the remaining 3%. The Company’s U.S. operations accounted for approximately 59% of third quarter revenue, up from approximately 56% in the second quarter primarily due to increased sales from Wharf, which totaled $36.7 million.
Costs applicable to sales increased 7% quarter-over-quarter to $141.0 million, reflecting higher costs associated with increased production at Wharf during the quarter. Third quarter general and administrative expenses were $9.6 million compared to $7.8 million in the prior period, largely due to higher employee-related expenses and legal fees.
Quarterly exploration expense was $5.9 million, or 4% higher quarter-over-quarter, reflecting Coeur’s continued commitment to its success-based exploration program and the commencing of new drilling campaigns during the quarter. Exploration activities in the third quarter were primarily focused on expansion drilling at Palmarejo, Kensington, Silvertip, and the Sterling and Crown exploration properties in southern Nevada. See page 13 for further details.
During the third quarter, the Company recorded an income tax expense of $0.2 million, largely attributable to higher taxable earnings during the quarter. Cash income and mining taxes paid during the quarter totaled $0.7 million, partially offset by $0.3 million of value-added tax refunds.
Operating cash flow of $42.0 million in the third quarter reflects improved profitability across the Company’s portfolio, with the exception of Silvertip. Third quarter operating cash flow also reflects a $14.7 million working capital outflow associated with sales made under Kensington’s $25.0 million prepayment agreement. The Company expects the remaining $10.3 million working capital outflow under this arrangement will occur during the fourth quarter.
Third quarter capital expenditures totaled $30.7 million, compared to $20.7 million in the second quarter. Higher capital expenditures were driven by increased investment at Rochester and Silvertip during the third quarter. Sustaining and development capital expenditures accounted for approximately 52% and 48%, respectively, of the Company’s total capital expenditures in the third quarter.
Third Quarter Debt Reduction Initiatives
During the third quarter, Coeur completed its previously announced $75.0 million at-the-market common stock offering program, raising net proceeds (after sales commissions) of $73.8 million. The Company also entered into privately negotiated agreements to exchange $20.0 million of aggregate principal amount of its senior unsecured notes for common stock during the quarter.
These transactions helped the Company retire $71.3 million of outstanding indebtedness, including the remaining $53.0 million balance under the RCF. As of September 30, 2019, the Company had $315.3 million of liquidity, including $65.3 million of cash and cash equivalents and $250.0 million of availability under the RCF.
Update on Hedging Strategy
During the third quarter, Coeur implemented a series of zero-cost collar hedges on a portion of its gold production in 2019 and 2020. The structure of the hedging program allows for downside protection against potential decreases in the price of gold, while enabling participation in the potential upside up to a specified ceiling. The strategy was designed to support free cash flow1 generation and help fund key internal growth projects. Additional details are outlined below:
Operations
Third quarter 2019 highlights for each of the Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons milled
442,464
447,727
378,987
378,389
300,116
Average gold grade (oz/t)
0.09
0.07
0.07
0.08
0.10
Average silver grade (oz/t)
4.88
4.74
4.64
5.96
6.26
Average recovery rate – Au
81.7%
87.7%
83.4%
97.6%
88.8%
Average recovery rate – Ag
79.6%
81.8%
72.8%
84.0%
82.2%
Gold ounces produced
31,779
28,246
23,205
31,239
27,885
Silver ounces produced (000’s)
1,720
1,735
1,278
1,893
1,544
Gold ounces sold
32,731
28,027
27,394
23,667
29,830
Silver ounces sold (000’s)
1,747
1,709
1,405
1,534
1,572
Average realized price per gold ounce
$1,269
$1,210
$1,154
$1,148
$1,082
Average realized price per silver ounce
$17.05
$14.86
$15.39
$14.57
$14.75
Metal sales
$71.3
$59.3
$53.2
$49.6
$55.5
Costs applicable to sales3
$37.4
$36.5
$33.2
$27.1
$31.6
Adjusted CAS per AuOz1
$660
$741
$713
$624
$615
Adjusted CAS per AgOz1
$8.95
$9.17
$9.66
$7.92
$8.39
Exploration expense
$1.6
$1.1
$1.0
$0.1
$3.2
Cash flow from operating activities
$36.3
$15.6
$5.9
$13.3
$8.6
Sustaining capital expenditures (excludes capital lease payments)
$4.7
$5.0
$6.0
$3.6
$2.0
Development capital expenditures
$3.1
$2.6
$2.7
$2.3
$2.7
Total capital expenditures
$7.8
$7.6
$8.7
$5.9
$4.7
Free cash flow1
$28.5
$8.0
$(2.8)
$7.4
$3.9
Rochester, Nevada
(Dollars in millions, except per ounce amounts)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Ore tons placed
2,516,353
2,786,287
2,667,559
3,674,566
4,061,082
Average silver grade (oz/t)
0.43
0.45
0.46
0.46
0.52
Average gold grade (oz/t)
0.004
0.003
0.003
0.004
0.004
Silver ounces produced (000’s)
982
971
960
1,466
1,290
Gold ounces produced
7,901
8,609
8,256
15,926
14,702
Silver ounces sold (000’s)
951
962
1,000
1,391
1,248
Gold ounces sold
7,651
8,642
8,511
15,339
14,257
Average realized price per silver ounce
$17.02
$14.83
$15.31
$14.53
$14.70
Average realized price per gold ounce
$1,476
$1,295
$1,299
$1,234
$1,204
Metal sales
$27.5
$25.5
$26.4
$39.1
$35.5
Costs applicable to sales3
$27.7
$24.7
$22.5
$29.4
$27.5
Adjusted CAS per AgOz1
$14.24
$13.19
$12.83
$10.79
$11.35
Adjusted CAS per AuOz1
$1,230
$1,153
$1,092
$917
$929
Exploration expense
$0.1
$0.1
$0.1
$—
$0.1
Cash flow from operating activities
$8.3
$1.6
$(1.0)
$17.9
$5.7
Sustaining capital expenditures (excludes capital lease payments)
$(1.0)
$0.4
$1.8
$7.1
$2.7
Development capital expenditures
$11.2
$2.4
$2.8
$(4.1)
$0.9
Total capital expenditures
$10.2
$2.8
$4.6
$3.0
$3.6
Free cash flow1
$(1.9)
$(1.2)
$(5.6)
$14.9
$2.1
Kensington, Alaska
(Dollars in millions, except per ounce amounts)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons milled
166,475
160,510
164,332
149,998
163,603
Average gold grade (oz/t)
0.22
0.23
0.20
0.21
0.17
Average recovery rate
93.2%
93.0%
90.2%
91.1%
90.4%
Gold ounces produced
34,156
34,049
29,973
28,421
25,515
Gold ounces sold
35,452
34,415
31,335
24,979
25,648
Average realized price per gold ounce, gross
$1,505
$1,332
$1,301
$1,267
$1,195
Treatment and refining charges per gold ounce
$20
$20
$15
$21
$34
Average realized price per gold ounce, net
$1,485
$1,312
$1,286
$1,246
$1,161
Metal sales
$52.6
$45.2
$40.3
$31.1
$29.8
Costs applicable to sales3
$29.5
$29.1
$32.2
$21.4
$28.2
Adjusted CAS per AuOz1
$822
$842
$990
$843
$1,091
Exploration expense
$1.5
$2.0
$0.5
$1.3
$1.6
Cash flow from operating activities
$4.5
$41.4
$6.2
$7.9
$(0.4)
Sustaining capital expenditures (excludes capital lease payments)
$4.9
$4.9
$9.4
$9.8
$9.7
Development capital expenditures
$—
$—
$—
$0.8
$2.3
Total capital expenditures
$4.9
$4.9
$9.4
$10.6
$12.0
Free cash flow1
$(0.4)
$36.5
$(3.2)
$(2.7)
$(12.4)
Wharf, South Dakota
(Dollars in millions, except per ounce amounts)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Ore tons placed
1,503,021
919,435
1,090,510
1,644,168
1,127,391
Average gold grade (oz/t)
0.027
0.023
0.020
0.020
0.023
Gold ounces produced
25,946
15,680
16,902
16,960
19,437
Silver ounces produced (000’s)
18
12
13
13
13
Gold ounces sold
24,573
15,301
18,086
15,306
19,874
Silver ounces sold (000’s)
17
12
14
11
12
Average realized price per gold ounce
$1,481
$1,311
$1,317
$1,247
$1,198
Metal sales
$36.7
$20.2
$24.0
$19.3
$24.0
Costs applicable to sales3
$22.1
$15.5
$17.4
$14.6
$18.0
Adjusted CAS per AuOz1
$887
$1,002
$949
$939
$895
Exploration expense
$0.1
$—
$—
$—
$0.1
Cash flow from operating activities
$17.6
$0.5
$4.2
$(1.9)
$3.7
Sustaining capital expenditures (excludes capital lease payments)
$0.8
$0.2
$0.4
$0.7
$1.2
Development capital expenditures
$—
$—
$—
$—
$—
Total capital expenditures
$0.8
$0.2
$0.4
$0.7
$1.2
Free cash flow1
$16.8
$0.3
$3.8
$(2.6)
$2.5
Silvertip, British Columbia
(Dollars in millions, except per ounce and per pound amounts)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Tons milled
53,145
59,689
62,051
38,802
10,652
Average silver grade (oz/t)
7.54
7.48
5.50
6.06
6.66
Average zinc grade (%)
7.6%
7.5%
5.9%
5.8%
8.0%
Average lead grade (%)
5.4%
5.4%
3.7%
3.9%
4.3%
Average recovery rate – Ag
74.8%
77.0%
69.9%
60.5%
56.3%
Average recovery rate – Zn
51.7%
59.1%
50.5%
69.1%
64.5%
Average recovery rate – Pb
78.4%
77.3%
66.8%
54.7%
45.1%
Silver ounces produced (000's)
300
344
239
142
40
Zinc pounds produced (000's)
4,197
5,322
3,719
3,082
1,099
Lead pounds produced (000's)
4,478
4,980
3,077
1,659
413
Silver ounces sold (000's)
290
365
215
124
99
Zinc pounds sold (000's)
4,076
5,303
4,723
2,604
1,772
Lead pounds sold (000's)
4,331
5,186
2,748
1,419
1,230
Average realized price per silver ounce, gross
$19.94
$15.18
$14.98
$15.54
$14.62
Treatment and refining charges per silver ounce
$1.63
$1.18
$1.24
$1.38
$3.34
Average realized price per silver ounce, net
$18.31
$14.00
$13.74
$14.16
$11.28
Average realized price per zinc pound, gross
$0.86
$0.83
$1.50
$1.07
$1.20
Treatment and refining charges per zinc pound
$0.36
$0.34
$0.31
$0.24
$0.27
Average realized price per zinc pound, net
$0.50
$0.49
$1.19
$0.83
$0.93
Average realized price per lead pound, gross
$0.98
$0.87
$0.92
$0.87
$0.97
Treatment and refining charges per lead pound
$0.06
$0.05
$0.06
$0.07
$0.07
Average realized price per lead pound, net
$0.92
$0.82
$0.86
$0.80
$0.90
Metal sales
$11.3
$11.9
$10.9
$4.8
$4.1
Costs applicable to sales3
$24.2
$26.2
$26.4
$24.1
$11.5
Adjusted CAS per AgOz1
$14.14
$13.31
$13.73
$17.68
$9.86
Adjusted CAS per ZnLb1
$0.75
$1.02
$1.18
$0.95
$0.64
Adjusted CAS per PbLb1
$0.71
$0.77
$0.88
$1.02
$0.55
Exploration expense
$0.8
$0.7
$0.1
$0.3
$2.3
Cash flow from operating activities
$(15.3)
$(11.6)
$(13.9)
$(34.1)
$(6.8)
Sustaining capital expenditures (excludes capital lease payments)
$6.4
$5.0
$4.1
$8.2
$0.4
Development capital expenditures
$—
$—
$—
$(10.8)
$17.5
Total capital expenditures
$6.4
$5.0
$4.1
$(2.6)
$17.9
Free cash flow1
$(21.7)
$(16.6)
$(18.0)
$(31.5)
$(24.7)
Exploration
During the third quarter, the Company drilled 110,361 feet (33,638 meters) at a total cost of $7.5 million ($5.9 million expensed and $1.6 million capitalized), compared to 151,153 feet (46,072 meters) at a total cost of $6.8 million ($5.7 million expensed and $1.1 million capitalized) in the second quarter. Total feet drilled during the third quarter was approximately 27% lower compared to the prior period, largely due to reduced infill drilling at Palmarejo and Kensington. The 2019 drill programs at Rochester and Wharf began during the quarter.
At Silvertip, two surface core drill rigs continued expansion drilling at the Discovery East and North zones. Results from the ongoing expansion drilling efforts remain encouraging. Infill drilling at Discovery East commenced in September with one drill rig active during the month. Three core rigs are scheduled to continue infill drilling the area through the end of November. Ground geophysical surveys and soil sampling were completed over the Tiger Terrace target area and show coincident anomalies over an approximately two-mile trend, located three miles south of the Silvertip mine. First pass drilling is currently planned for 2020.
At Kensington, surface and underground core drill rigs focused on expansion drilling at the Elmira, Eureka, Comet and Seward veins. The Comet and Seward veins are strategically located above the Kensington access tunnel, allowing for the potential to leverage existing infrastructure if the veins are developed. Results from expansion drilling were encouraging and represent a first pass exploration effort. No infill drilling was completed at Kensington during the quarter.
At the Sterling and Crown exploration properties, located in southern Nevada, two reverse circulation rigs were active during the third quarter. One rig was focused on expansion drilling at the Daisy South and West, and SNA resource zones, which are contained in the Crown Block. Results from the drilling in these zones were encouraging. Exploration drilling and surface mapping in the Crown Block are expected to continue during the fourth quarter, with one rig maintaining focus on the SNA resource zone. Infill drilling at Sterling commenced in August with encouraging results near the historic 8 Adit and 144 zones at the southern portion of the historic Sterling mining area. Expansion drilling at both Crown and Sterling is expected to continue during the fourth quarter.
At Palmarejo, up to seven surface and underground core rigs were active during the third quarter. Infill drilling focused on La Nación and veins southeast of the Guadalupe mine, with encouraging results particularly at La Nación. Expansion drilling focused on extending mineralization northwest from the Guadalupe mine and north of the Independencia mine as well as expanding mineralized material at Independencia East. Infill and expansion drilling are expected to continue through the fourth quarter.
Infill and expansion drilling at the Richmond Hill project, located approximately four miles north-northeast of Wharf, commenced at the end of September and is expected to continue into the fourth quarter. A single reverse circulation rig is currently on site.
At Rochester, an infill diamond drilling program commenced during the quarter, employing directional drilling techniques to drill underneath the Stage I leach pad. The program is expected to be completed early in the fourth quarter.
Expansion drilling is expected to commence in the fourth quarter at the Lincoln Hill project, located approximately four miles west of Rochester.
At the La Preciosa project, located in Durango, Mexico, a new resource model is being developed based on an improved geological interpretation for the site. This work and further evaluation of the project is expected to continue during 2020.
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 third quarter financial results on November 5, 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 November 19, 2019.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
101 35 184
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, free cash flow, expectations regarding Silvertip, including but not limited to timing of receipt of permits, grades, exploration and development efforts, the impact of the new crushing circuit at Rochester, the prepayment transaction at Kensington, our gold price hedging strategy, and operations at Palmarejo, Rochester, Wharf, Kensington and Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that Silvertip will not obtain necessary permits on the expected timeline or at all, the risk that the anticipated benefits of the new crushing circuit at Rochester will not be achieved, 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 and our Form 10-Q for the quarter ended September 30,2019.
Notes
Average Spot Prices
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Average Gold Spot Price Per Ounce
$
1,472
$
1,309
$
1,304
$
1,226
$
1,213
Average Silver Spot Price Per Ounce
$
16.98
$
14.88
$
15.57
$
14.54
$
15.02
Average Zinc Spot Price Per Pound
$
1.07
$
1.25
$
1.23
$
1.19
$
1.15
Average Lead Spot Price Per Pound
$
0.92
$
0.85
$
0.92
$
0.89
$
0.95
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2019 (unaudited)
December 31, 2018
ASSETS
In thousands, except share data
CURRENT ASSETS
Cash and cash equivalents
$
65,319
$
115,081
Receivables
37,295
29,744
Inventory
57,478
66,279
Ore on leach pads
75,603
75,122
Prepaid expenses and other
16,659
11,393
252,354
297,619
NON-CURRENT ASSETS
Property, plant and equipment, net
308,774
298,451
Mining properties, net
928,078
971,567
Ore on leach pads
68,975
66,964
Restricted assets
8,248
12,133
Equity and debt securities
22,812
17,806
Receivables
27,580
31,151
Other
72,796
16,809
TOTAL ASSETS
$
1,689,617
$
1,712,500
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable
$
72,927
$
47,210
Accrued liabilities and other
117,606
82,619
Debt
21,939
24,937
Reclamation
6,552
6,552
219,024
161,318
NON-CURRENT LIABILITIES
Debt
276,781
433,889
Reclamation
135,101
128,994
Deferred tax liabilities
51,534
79,070
Other long-term liabilities
76,370
56,717
539,786
698,670
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 240,508,936 issued and outstanding at September 30, 2019 and 203,310,443 at December 31, 2018
2,405
2,033
Additional paid-in capital
3,590,056
3,443,082
Accumulated other comprehensive income (loss)
1,132
(59
)
Accumulated deficit
(2,662,786
)
(2,592,544
)
930,807
852,512
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,689,617
$
1,712,500
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three months ended September 30,
Nine months ended September 30,
2019
2018
2019
2018
In thousands, except share data
Revenue
$
199,469
$
148,795
$
516,462
$
482,049
COSTS AND EXPENSES
Costs applicable to sales(1)
140,952
116,857
404,550
324,443
Amortization
45,678
31,184
130,758
91,420
General and administrative
9,635
7,729
26,859
24,183
Exploration
5,893
8,157
15,326
21,269
Pre-development, reclamation, and other
4,851
8,121
13,619
15,966
Total costs and expenses
207,009
172,048
591,112
477,281
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment
(1,282
)
—
(1,282
)
—
Fair value adjustments, net
4,377
715
8,201
2,907
Interest expense, net of capitalized interest
(5,980
)
(5,818
)
(19,259
)
(17,801
)
Other, net
(3,634
)
(20,903
)
(2,931
)
(19,846
)
Total other income (expense), net
(6,519
)
(26,006
)
(15,271
)
(34,740
)
Income (loss) before income and mining taxes
(14,059
)
(49,259
)
(89,921
)
(29,972
)
Income and mining tax (expense) benefit
(218
)
(3,785
)
13,986
(19,451
)
Income (loss) from continuing operations
$
(14,277
)
$
(53,044
)
$
(75,935
)
$
(49,423
)
Income (loss) from discontinued operations
—
—
5,693
550
NET INCOME (LOSS)
$
(14,277
)
$
(53,044
)
$
(70,242
)
$
(48,873
)
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Unrealized gain (loss) on hedges, net of tax of $365 for the three and nine months ended September 30, 2019
1,132
—
1,132
—
Unrealized gain (loss) on debt and equity securities
—
192
59
(173
)
Other comprehensive income (loss)
1,132
192
1,191
(173
)
COMPREHENSIVE INCOME (LOSS)
$
(13,145
)
$
(52,852
)
$
(69,051
)
$
(49,046
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing operations
$
(0.06
)
$
(0.29
)
$
(0.36
)
$
(0.27
)
Net income (loss) from discontinued operations
—
—
0.03
—
Basic(2)
$
(0.06
)
$
(0.29
)
$
(0.33
)
$
(0.26
)
Diluted income (loss) per share:
Net income (loss) from continuing operations
$
(0.06
)
$
(0.29
)
$
(0.36
)
$
(0.27
)
Net income (loss) from discontinued operations
—
—
0.03
—
Diluted(2)
$
(0.06
)
$
(0.29
)
$
(0.33
)
$
(0.26
)
(1) Excludes amortization.
(2) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three months ended September 30,
Nine months ended September 30,
2019
2018
2019
2018
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(14,277
)
$
(53,044
)
$
(70,242
)
$
(48,873
)
(Income) loss from discontinued operations
—
—
(5,693
)
(550
)
Adjustments:
Amortization
45,678
31,184
130,758
91,420
Accretion
3,073
3,117
9,023
10,321
Deferred taxes
(10,545
)
(3,276
)
(27,962
)
(4,087
)
Loss on debt extinguishment
1,282
—
1,282
—
Fair value adjustments, net
(4,377
)
(715
)
(8,201
)
(2,907
)
Stock-based compensation
2,432
1,942
6,642
6,578
Inventory write-downs
13,966
30,787
41,285
30,787
Deferred revenue recognition
(15,250
)
(582
)
(16,008
)
(1,666
)
Other
8,994
3,520
15,733
6,846
Changes in operating assets and liabilities:
Receivables
(3,350
)
(5,930
)
(20,709
)
(16,509
)
Prepaid expenses and other current assets
1,375
1,377
(2,143
)
3,868
Inventory and ore on leach pads
(9,389
)
(8,156
)
(42,601
)
(19,630
)
Accounts payable and accrued liabilities
22,384
5,565
41,421
(35,562
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS
41,996
5,789
52,585
20,036
CASH USED IN OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
—
(2,690
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
41,996
5,789
52,585
17,346
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(30,678
)
(39,472
)
(78,865
)
(122,982
)
Proceeds from the sale of assets
26
393
930
549
Purchase of investments
—
(15
)
—
(415
)
Sale of investments
1,007
(78
)
2,109
12,682
Proceeds from notes receivable
—
15,000
7,168
15,000
Other
(57
)
64
1,961
(34
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
(29,702
)
(24,108
)
(66,697
)
(95,200
)
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
—
(28,470
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
(29,702
)
(24,108
)
(66,697
)
(123,670
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
73,781
—
122,668
—
Issuance of notes and bank borrowings, net of issuance costs
30,000
25,000
45,000
40,000
Payments on debt, finance leases, and associated costs
(87,778
)
(25,533
)
(201,051
)
(48,355
)
Other
301
(77
)
(2,958
)
(4,916
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
16,304
(610
)
(36,341
)
(13,271
)
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
—
—
—
(22
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
16,304
(610
)
(36,341
)
(13,293
)
Effect of exchange rate changes on cash and cash equivalents
(192
)
183
65
565
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
28,406
(18,746
)
(50,388
)
(119,052
)
Less net cash used in discontinued operations(1)
—
—
—
(32,930
)
28,406
(18,746
)
(50,388
)
(86,122
)
Cash, cash equivalents and restricted cash at beginning of period
39,275
136,026
118,069
203,402
Cash, cash equivalents and restricted cash at end of period
$
67,681
$
117,280
$
67,681
$
117,280
(1) Less net cash used in discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748, during the nine months ended September 30, 2018.
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
LTM 3Q 2019
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Net income (loss)
$
(69,774
)
$
(14,277
)
$
(36,764
)
$
(19,201
)
$
468
$
(53,044
)
(Income) loss from discontinued operations, net of tax
(5,693
)
—
—
(5,693
)
—
—
Interest expense, net of capitalized interest
25,822
5,980
6,825
6,454
6,563
5,818
Income tax provision (benefit)
(50,217
)
218
(5,546
)
(8,658
)
(36,231
)
3,785
Amortization
167,811
45,678
43,204
41,876
37,053
31,184
EBITDA
67,949
37,599
7,719
14,778
7,853
(12,257
)
Fair value adjustments, net
(8,932
)
(4,377
)
5,296
(9,120
)
(731
)
(715
)
Foreign exchange (gain) loss
6,064
2,945
468
665
1,986
3,104
(Gain) loss on sale of assets and securities
418
100
72
(52
)
298
28
Loss on debt extinguishment
1,282
1,282
—
—
—
—
Transaction costs
(1,044
)
—
—
—
(1,044
)
1,049
Interest income on notes receivables
(525
)
—
(18
)
(180
)
(327
)
(628
)
Manquiri sale consideration write-down
—
—
—
—
18,599
Silvertip inventory write-down
59,259
13,966
11,872
15,447
17,974
8,746
Receivable write-down
7,576
1,040
—
6,536
—
Asset retirement obligation accretion
11,777
3,080
3,007
2,943
2,747
2,883
Inventory adjustments and write-downs
7,234
5,371
2,193
1,623
858
421
Adjusted EBITDA
$
151,058
$
61,006
$
30,609
$
26,104
$
36,150
$
24,671
Revenue
$
660,317
$
199,469
$
162,123
$
154,870
143,855
$
148,795
Adjusted EBITDA Margin
23
%
31
%
19
%
17
%
25
%
17
%
Adjusted Net Income (Loss) Reconciliation
(Dollars in thousands except per share amounts)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Net income (loss)
$
(14,277
)
$
(36,764
)
$
(19,201
)
$
468
$
(53,044
)
Income loss from discontinued operations, net of tax
—
—
(5,693
)
—
—
Fair value adjustments, net
(4,377
)
5,296
(9,120
)
(731
)
(715
)
(Gain) loss on sale of assets and securities
100
72
(52
)
326
—
Gain on repurchase of Rochester royalty
—
—
—
(28
)
28
Loss on debt extinguishment
1,282
—
—
—
Transaction costs
—
—
—
(1,044
)
1,049
Interest income on notes receivables
—
(18
)
(180
)
(327
)
(628
)
Manquiri sale consideration write-down
—
—
—
—
18,599
Silvertip inventory write-down
13,966
11,872
15,447
17,974
8,746
Rochester In-Pit crusher write-down
—
—
—
—
3,441
Receivable write-down
1,040
—
—
6,536
—
Foreign exchange loss (gain)
2,022
889
1,256
(530
)
6,062
Tax effect of adjustments(1)
(5,096
)
(4,332
)
(5,415
)
(6,559
)
(3,191
)
Adjusted net income (loss)
$
(5,340
)
$
(22,985
)
$
(22,958
)
$
16,085
$
(19,653
)
Adjusted net income (loss) per share - Basic
$
(0.02
)
$
(0.11
)
$
(0.11
)
$
0.08
$
(0.11
)
Adjusted net income (loss) per share - Diluted
$
(0.02
)
$
(0.11
)
$
(0.11
)
$
0.08
$
(0.11
)
Consolidated Free Cash Flow Reconciliation
(Dollars in thousands)
3Q 2019
2Q 2019
1Q 2019
4Q 2018
3Q 2018
Cash flow from continuing operations
$
41,996
$
26,435
$
(15,846
)
$
72
$
5,789
Capital expenditures from continuing operations
30,678
20,749
27,438
17,805
39,472
Free cash flow
$
11,318
$
5,686
$
(43,284
)
$
(17,733
)
$
(33,683
)
Reconciliation of Costs Applicable to Sales
for Three Months Ended September 30, 2019
In thousands except per ounce or per pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including amortization (U.S. GAAP)
$
53,237
$
31,999
$
43,085
$
25,385
$
32,457
$
186,163
Amortization
(15,840
)
(4,250
)
(13,552
)
(3,301
)
(8,268
)
(45,211
)
Costs applicable to sales
$
37,397
$
27,749
$
29,533
$
22,084
$
24,189
$
140,952
Inventory Adjustments
(175
)
(4,799
)
(405
)
(7
)
(13,966
)
(19,352
)
By-product credit
—
—
—
(293
)
—
(293
)
Adjusted costs applicable to sales
$
37,222
$
22,950
$
29,128
$
21,784
$
10,223
$
121,307
Metal Sales
Gold ounces
32,731
7,651
35,452
24,573
100,407
Silver ounces
1,747,250
951,043
16,612
289,910
3,004,815
Zinc pounds
4,076,390
4,076,390
Lead pounds
4,330,862
4,330,862
Revenue Split
Gold
58
%
41
%
100
%
100
%
Silver
42
%
59
%
39
%
Zinc
29
%
Lead
32
%
Adjusted costs applicable to sales
Gold ($/oz)
$
660
$
1,230
$
822
$
887
Silver ($/oz)
$
8.95
$
14.24
$
14.14
Zinc ($/lb)
$
0.75
Lead ($/lb)
$
0.71
Reconciliation of Costs Applicable to Sales
for Three Months Ended June 30, 2019
In thousands except per ounce or per pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including amortization (U.S. GAAP)
$
50,708
$
28,656
$
41,670
$
17,691
$
36,038
$
174,763
Amortization
(14,212
)
(3,963
)
(12,537
)
(2,225
)
(9,878
)
(42,815
)
Costs applicable to sales
$
36,496
$
24,693
$
29,133
$
15,466
$
26,160
$
131,948
Inventory Adjustments
(39
)
(2,045
)
(156
)
48
(11,872
)
(14,064
)
By-product credit
—
—
—
(188
)
—
(188
)
Adjusted costs applicable to sales
$
36,457
$
22,648
$
28,977
$
15,326
$
14,288
$
117,696
Metal Sales
Gold ounces
28,027
8,642
34,415
15,301
—
86,385
Silver ounces
1,709,406
961,634
12,364
364,961
3,048,365
Zinc pounds
5,302,508
5,302,508
Lead pounds
5,185,634
5,185,634
Revenue Split
Gold
57
%
44
%
100
%
100
%
Silver
43
%
56
%
34
%
Zinc
38
%
Lead
28
%
Adjusted costs applicable to sales
Gold ($/oz)
$
741
$
1,153
$
842
$
1,002
Silver ($/oz)
$
9.17
$
13.19
$
13.31
Zinc ($/lb)
$
1.02
Lead ($/lb)
$
0.77
Reconciliation of Costs Applicable to Sales
for Three Months Ended March 31, 2019
In thousands except per ounce or per pound amounts
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including amortization (U.S. GAAP)
$
47,772
$
26,491
$
43,902
$
20,073
$
34,811
$
173,049
Amortization
(14,528
)
(4,037
)
(11,727
)
(2,681
)
(8,426
)
(41,399
)
Costs applicable to sales
$
33,244
$
22,454
$
32,175
$
17,392
$
26,385
$
131,650
Inventory Adjustments
(141
)
(323
)
(1,164
)
(5
)
(15,447
)
(17,080
)
By-product credit
—
—
—
(217
)
—
(217
)
Adjusted costs applicable to sales
$
33,103
$
22,131
$
31,011
$
17,170
$
10,938
$
114,353
Metal Sales
Gold ounces
27,394
8,511
31,335
18,086
85,326
Silver ounces
1,405,409
1,000,453
—
14,052
215,101
2,635,015
Zinc pounds
4,723,069
4,723,069
Lead pounds
2,747,847
2,747,847
Revenue Split
Gold
59
%
42
%
100
%
100
%
Silver
41
%
58
%
27
%
Zinc
51
%
Lead
22
%
Adjusted costs applicable to sales
Gold ($/oz)
$
713
$
1,092
$
990
$
949
Silver ($/oz)
$
9.66
$
12.83
$
13.73
Zinc ($/lb)
$
1.18
Lead ($/lb)
$
0.88
Reconciliation of Costs Applicable to Sales
for 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
$
20,857
$
12,608
$
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
$
17,979
$
11,535
$
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
$
17,798
$
2,789
$
107,513
Metal Sales
Gold ounces
29,830
14,257
25,648
19,874
89,609
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 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/20191104005819/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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