Quarterly Results

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Third Quarter 2016 Highlights

  • Silver equivalent1 production of 8.6M ounces, a 10% decrease over 2Q 2016
  • Adj. CAS of $11.69 per realized AgEqOz1 (primary silver operations) and adj. CAS of $712 per AuEqOz1 (primary gold operations)
  • Adjusted AISC of $15.37 per realized AgEqOz1
  • Quarterly free cash flow1 of $14.6M, 20% higher than 2Q 2016
  • LTM Adj. EBITDA1 of $201.7M, 18% higher quarter-over-quarter and more than double the same period last year
  • Adj. net income1 of $38.6 million, more than double 2Q 2016
  • Cash and equivalents of $222.5M at September 30, 2016
  • Total debt declined $109.3M, or 21%, during the quarter to approximately $400M
  • Total debt / LTM adj. EBITDA1 of 2.0x, down from 5.5x a year ago

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

"We achieved a number of significant milestones during the third quarter despite lower production relative to the second quarter. Our quarterly earnings more than doubled, free cash flow increased 20% quarter-over-quarter and LTM adjusted EBITDA has now risen above $200 million - up from $96 million just 15 months ago. Importantly, we are well-positioned for a strong fourth quarter at each of our five operations," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer.

"We made great progress repositioning our balance sheet to be conservative, flexible and supportive of the Company's future growth initiatives. Our total debt declined by 21% since the end of June, interest expense dropped by 26%, and our total debt to LTM adjusted EBITDA ratio has now dropped to 2.0x - down 65% from 5.7x just fifteen months ago. With cash and equivalents of over $220 million and rising due to our positive free cash flow and the expected completion of our ongoing ATM stock offering, we anticipate further balance sheet strengthening to take place during the remainder of this year.

"We increased our full-year 2016 production guidance earlier this month and are now reducing our full-year 2016 cost guidance, which reflects the significant operational improvements we have made over the last several years. As we focus on longer-term growth in production and cash flow, we are excited about the high-grade exploration results we are generating from several of our existing operations and our revitalized earlier-stage exploration initiatives. In addition, we look forward to conducting confirmation drilling in early 2017 with the goal of assessing a lower capex, higher grade, lower tonnage development and operating plan for our La Preciosa project in Mexico." (See "Non- U.S. GAAP Measures" in Coeur’s earnings release for the third quarter of 2016)

Financial Highlights

(Amounts in millions, except per share amounts, gold ounces produced and per-ounce metrics) 3Q 2016 2Q 2016
Revenue $ 176.2 $ 182.0
Costs Applicable to Sales $ 105.4 $ 100.5
Net income $ 69.6 $ 14.5
Adjusted Net Income1 $ 38.6 $ 16.9
Adjusted EBITDA1 $ 62.7 $ 72.0
Cash Flow From Operating Activities $ 47.8 $ 45.9
Free Cash flow1 $ 14.6 $ 12.2
Silver Ounces Sold 3.4 4.0
Gold Ounces Sold 83,389 88,543
Silver Equivalent Ounces Sold1 8.4 9.3
Silver Equivalent Ounces Sold (Realized)1 9.0 10.4
Adjusted CAS per AgEqOz1 $ 12.10 $ 10.71
Adjusted CAS per Realized AgEqOz1 $ 11.69 $ 10.05
Adjusted CAS per AuEqOz1 $ 712 $ 644
Adjusted AISC per AgEqOz1 $ 16.46 $ 14.82
Adjusted AISC per Realized AgEqOz1 $ 15.37 $ 13.27
Notes
  1. EBITDA, adjusted EBITDA, Total debt / LTM adjusted EBITDA, adjusted net income (loss), all-in sustaining costs, adjusted all-in sustaining costs, costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce), and adjusted costs applicable to sales per silver equivalent ounce are non-GAAP measures. Please see tables in the Appendix to Coeur’s earnings release for the third quarter of 2016 for the reconciliation to U.S. GAAP. For purposes of silver and gold equivalence, a 60:1 silver to gold ratio is assumed except where noted as average realized prices. Free cash flow is defined as cash flow from operating activities less capital expenditures and gold production royalty payments. Please see the table in the Appendix to Coeur’s earnings release for the third quarter of 2016 for the calculation of consolidated free cash flow.
  2. Third quarter 2016 information as published by Coeur on October 26, 2016.

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