Quarterly Results

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Fourth Quarter 2015 Highlights

  • Silver equivalent1 production totaled 9.5 million ounces. Silver production was 4.0 million ounces and gold production was 91,551 ounces as previously announced on January 11, 2016
  • Adjusted all-in sustaining costs were $13.55 per realized silver equivalent ounce1. Using a 60:1 equivalence, adjusted all-in sustaining costs were $15.66 per silver equivalent ounce1
  • Adjusted costs applicable to sales were $11.71 per realized silver equivalent ounce1. Using a 60:1 equivalence, adjusted costs applicable to sales per silver equivalent ounce1 were $12.65
  • Adjusted EBITDA1 was $29.8 million
  • Capital expenditures totaled $30.0 million, driven by development of the Jualin deposit at Kensington and development of the Guadalupe and Independencia underground deposits at Palmarejo
  • Wharf's gold equivalent production increased 38% to 32,231 ounces, leading to a 22% decline in costs applicable to sales per gold equivalent ounce1 to $556 and quarterly free cash flow of $16.9 million
  • Cash and equivalents of $200.7 million at December 31, 2015
  • Non-cash impairment charge of $313.3 million ($276.5 million net of tax) was recorded to reduce the carrying values of the Palmarejo and San Bartolomé mines, the Endeavor silver stream, and certain royalty assets to reflect lower gold and silver prices

From Coeur's President & Chief Executive Officer, Mitchell J. Krebs

“Our fourth quarter capped a very solid year for the Company, driven by strong performance from our Palmarejo and Wharf mines. We met or exceeded all of the operating and financial guidance we provided for 2015. With all-in sustaining costs per silver equivalent ounce1 in the mid $13 level in the fourth quarter and expected to decline further, we can no longer be considered a high-cost producer. In fact, the rate at which we are reducing our costs and the extent of these reductions make us a clear industry leader. Despite further declines in silver and gold prices during the fourth quarter, our cash and equivalents remained consistent at over $200 million,” said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "We expect this exciting transition to lead to strong, sustainable free cash flow as we begin mining higher grade material at Palmarejo and Kensington and as we realize the benefit of larger scale, more efficient mining at Rochester due to the significant investments we have made over the past three years.

"Our 2016 guidance is shown at the end of this release. It reflects the ongoing trend of quality production growth at lower costs from our diverse portfolio of five operating mines. Our overall liquidity remains strong and more than sufficient to complete the investments necessary to drive our transition to positive free cash flow later this year. It is also notable that our net debt-to-LTM-EBITDA has declined from 3.8x at the end of the third quarter of 2015 to 2.5x at the end of the fourth quarter due to lower total debt, a stable cash balance, and higher adjusted EBITDA at year-end 2015.

"Recent successful acquisitions have augmented the strong performance from our existing mines. The Wharf gold mine in South Dakota generated nearly $30 million in free cash flow during the ten months we owned it in 2015. At Palmarejo, we have now begun mining the high-grade Independencia silver and gold deposit we consolidated by acquiring Paramount Gold and Silver in April of last year. Together with the Guadalupe deposit located 800 meters away and significant exploration potential, the future of Palmarejo now appears to be very long, bright, and profitable.”

Financial Highlights

(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics) 4Q 2015 3Q 2015
Revenue $ 164.2 $ 162.6
Costs Applicable to Sales $ 125.2 $ 120.2
Adjusted EBITDA1 $ 29.8 $ 31.4
Net Income (Loss) $ (303.0) $ (14.4)
Adjusted Net Income (Loss)1 $ (38.6) $ (21.8)
Cash Flow From Operating Activities $ 44.4 $ 36.2
Silver Ounces Produced 4.0 3.8
Gold Ounces Produced 91.551 69.734
Silver Equivalent Ounces Sold1 9.5 8.0
Adjusted Costs Applicable to Sales per AgEq Oz1 $ 12.65 $ 12.07
Adjusted Costs Applicable to Sales per Au Oz1 $ 663 $ 783
Adjusted All-in Sustaining Costs per AgEq Oz1 $ 15.66 $ 15.17
Notes
  1. Adjusted EBITDA, adjusted net income (loss), adjusted all-in sustaining costs, and adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce) are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP of the 4Q 2015 Financial Results press release. For purposes of silver and gold equivalence a 60:1 silver to gold ratio is used unless otherwise noted.

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Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900 Chicago, Illinois, 60603 - (312) 489-5800