Quarterly Results

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First Quarter 2017 Highlights

  • Silver and gold production were 3.9 million ounces and 88,218 ounces, respectively, or 9.2 million silver equivalent ounces (AgEqOz)1 for the fourth quarter and 36.3 million AgEqOz1 representing a decline of 8% quarter-over-quarter and an increase of 14% year-over-year
  • Sales of 4.5 million ounces of silver and 110,874 ounces of gold, or 11.1 million AgEqOz1 increased 28% quarter-over-quarter and 34% year-over-year
  • Companywide all-in sustaining costs (AISC) and adjusted AISC per average spot AgEqOz1 were $13.65 and $13.66, respectively, both declining 6% quarter-over-quarter. On a 60:1 price equivalence basis, companywide AISC and adjusted AISC per AgEqOz1 were $15.01 and $15.02, both representing quarter-over-quarter decreases of 7%
  • Significant debt reductions since 2016 resulted in a $7.5 million, or 68%, year-over-year decline in quarterly interest expense; combined with higher LTM adjusted EBITDA1 , total and net debt-to-LTM adjusted EBITDA1 ratios at quarter-end were 0.9x and 0.04x, respectively, compared to 3.7x and 2.5x a year earlier
  • The Company completed the sale of the Joaquin project for consideration of $27.4 million, realizing a gain of $21.1 million; Coeur also retained a 2.0% NSR royalty on the Joaquin project
  • Quarterly expensed exploration tripled year-over-year to $5.3 million primarily due to expanded drilling activities at Palmarejo and Kensington and the near-completion of a 25,000 meter drill program at La Preciosa to support a revised Preliminary Economic Assessment (PEA) expected later this year

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

"Coeur delivered a solid first quarter with strong earnings and cash flows, affirming the steps we have taken to reposition our portfolio and balance sheet," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "Rising production levels at our Palmarejo mine and higher metal sales more than offset the impact of record rainfall at our Rochester mine in Nevada and persistent drought conditions at our San Bartolomé mine in Bolivia. Companywide costs also continued to trend lower with first quarter metrics coming in well below full-year guidance. Combined with considerable interest savings from recent balance sheet improvements, we reported significantly higher earnings and cash flows compared to the same period last year.

"Near-mine and early-stage exploration programs have been accelerated as planned with 17 drill rigs active at the end of the quarter compared to three a year earlier. In addition to the encouraging drill results we have seen at Palmarejo, we are nearing completion of a 25,000 meter drill program at La Preciosa to support a revised PEA expected later this year targeting a potential smaller, higher-grade, lower capital silver-gold operation.

"Concurrent with our increased exploration activities, our expansion initiatives at Palmarejo, Rochester and Kensington remain on schedule and on budget. At Palmarejo, we are on track to achieve 50% production increases this year from higher-grade underground operations. At Rochester, we are completing the last element of a multi-year expansion effort to position the mine for strong and sustainable cash flow. At Kensington, we expect higher-grade ore from the Jualin deposit to boost production and further reduce unit costs starting late this year. This strong execution continues to support our trajectory toward a higher-margin, higher cash flowing precious metals mining company.”

Financial Highlights

(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics) 1Q 2017 4Q 2016 1Q 2016
Revenue $ 206.1 $ 159.2 $ 148.4.1
Costs Applicable to Sales $ 132.7 $ 102.0 $ 101.6
Net Income (Loss) $ 18.7 $ (8.3) $ (20.4)
Adjusted Net Income (Loss)1 $ 7.0 $ 2.8 $ (10.5)
Adjusted EBITDA1 $ 56.6 $ 44.0 $ 37.4
Cash Flow from Operating Activities $ 55.3 $ 25.5 $ 6.6
Capital Expenditures $ 24.0 $ 29.9 $ 22.2
Free Cash Flow1 $ 31.3 $ (4.5) $ (24.7)
Cash, Equivalents & Short-Term Investments $210.0 $162.2 $173.4
Total Debt $219.1 $210.9 $511.1
Silver Ounces Sold 4.5 3.4 3.5
Gold Ounces Sold 110,874 87,108 79.091
Silver Equivalent Ounces Sold1 11.1 8.6 8.3
Silver Equivalent Ounces Sold (Average Spot)1 12.2 9.6 9.8
Adjusted CAS per AgEqOz1 $ 11.38 $ 12.05 $ 12.05
Adjusted CAS per Average Spot AgEqOz1 $ 10.63 $ 11.34 $ 11.00
Adjusted CAS per AuEqOz1 $ 791 $ 676 $ 721
Adjusted AISC per AgEqOz1 $ 15.02 $ 16.13 $ 16.05
Adjusted AISC per Average Spot AgEqOz1 $ 13.66 $ 16.13 $ 13.51
Notes
  1. EBITDA, adjusted EBITDA, net debt, total debt to LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs are non-GAAP measures. Please see tables in the Appendix of the earnings release 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 spot prices. Please see table in the earnings release for average silver and gold spot prices during the period and the silver to gold ratio.

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