Coeur Reports First Quarter 2015 Results
(Thomson Reuters ONE) -
NEWS RELEASE
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Coeur Reports First Quarter 2015 Results
Adjusted All-in Sustaining Costs Declined 8% to $17.66 per Silver Equivalent
Ounce
Adjusted Costs Applicable to Sales of $13.71 per Silver Equivalent Ounce and
$797 per Gold Ounce
Chicago, Illinois - May 4, 2015 - Coeur Mining, Inc. (the "Company" or "Coeur")
(NYSE: CDE) reported first quarter 2015 revenue of $153.0 million, adjusted
EBITDA(1) of $21.7 million, and adjusted net loss(1) of $0.24 per share.
Adjusted all-in sustaining costs declined 8% from the fourth quarter of 2014 to
$17.66 per silver equivalent ounce(1), the lowest level in the two years of
reporting this metric. Adjusted costs applicable to sales per silver equivalent
ounce(1) of $13.71 declined 5% from the fourth quarter.
"We are off to a strong start in 2015, tracking at or below our annual cost
guidance in the first quarter. Falling oil prices and a weakening Mexican peso
bode well for further cost improvement, as fuel represents approximately 7% of
our total operating costs and about 50% of Palmarejo's costs are denominated in
pesos," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer.
"In the past three months we closed two acquisitions, released a high-grade,
high-margin, re-scoped mine plan for Kensington reflecting a significant new
discovery, and announced a near-doubling in silver equivalent reserves at
Palmarejo, reflecting higher grades from our Paramount acquisition and last
year's discovery at Independencia. These are all important steps in our strategy
to reduce unit costs, produce higher-quality ounces, and generate free cash flow
at current metal prices. With $180 million in cash and cash equivalents,
maintaining sufficient liquidity and a flexible balance sheet remains a top
priority."
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First Quarter 2015 Highlights
* Silver production was 3.8 million ounces and gold production was 69,734
ounces, or 8.0 million silver equivalent(1) ounces as previously announced
on April 6, 2015
* Adjusted all-in sustaining costs were $17.66 per silver equivalent ounce(1),
down 8% from the fourth quarter
* Adjusted costs applicable to sales per silver equivalent ounce(1) were
$13.71, a 5% decrease from the fourth quarter and the lowest level in a year
* Adjusted costs applicable to sales per gold ounce(1) at Kensington were
$797, almost unchanged from the fourth quarter
* Adjusted costs applicable to sales per silver equivalent ounce(1) at
Palmarejo dropped 7% from the fourth quarter to $14.56
* Adjusted costs applicable to sales per silver equivalent ounce(1) at
Rochester were $12.95, down 6% from the fourth quarter
* Acquired the Wharf gold mine from a subsidiary of Goldcorp for $103 million
in cash
* Cash, cash equivalents, and short-term investments were $179.6 million at
March 31, 2015
* Shares issued and outstanding were 136.0 million as of May 1, 2015
Full Year 2015 Outlook
Coeur is maintaining its 2015 production guidance of 14.8 - 16.0 million silver
ounces and 294,000 - 323,000 gold ounces and is also maintaining its guidance
for all-in sustaining costs per silver equivalent ounce(1) of $17.50 - $18.50
and costs applicable to sales as follows:
* $16.25 - $17.75 per silver equivalent ounce(1) at Palmarejo
* $12.50 - $14.00 per silver equivalent ounce(1) at Rochester
* $13.50 - $15.00 per silver equivalent ounce(1) at San Bartolomé
* $900 - $975 per gold ounce at Kensington
* $750 - $825 per gold equivalent ounce(1) at Wharf
To incorporate the acquisition of Paramount Gold and Silver Corp. which closed
on April 17, 2015, Coeur is raising its capital expenditure guidance from $85 -
$95 million to $95 - $105 million and its exploration guidance from $10 - $12
million to $13 - $16 million. General and administrative expense guidance is
unchanged at $36 - $39 million.
Financial Highlights (Unaudited)
+---------+
(Amounts in millions, | |
except per share amounts,| |
gold ounces produced & | |
sold, and per-ounce | |
metrics) | 1Q 2015 | 4Q 2014 3Q 2014 2Q 2014 1Q 2014
+---------+------------------------------------------
Revenue |$ 153.0 |$ 140.6 $ 170.9 $ 164.6 $ 159.6
| |
Costs Applicable to Sales|$ 115.1 |$ 126.5 $ 125.9 $ 118.7 $ 106.9
| |
General and | |
Administrative Expenses |$ 8.8 |$ 9.0 $ 8.5 $ 9.4 $ 13.9
| |
Adjusted EBITDA(1) |$ 21.7 |$ 7.8 $ 25.7 $ 32.9 $ 31.1
| |
Net Income (Loss) |$ (33.3 )|$ (1,079.1 ) $ 3.5 $ (43.1 ) $ (37.2 )
| |
Earnings Per Share |$ (0.32 )|$ (10.53 ) $ 0.03 $ (0.42 ) $ (0.36 )
| |
Adjusted Net Income | |
(Loss)(1) |$ (24.4 )|$ (37.5 ) $ (18.5 ) $ (21.5 ) $ (18.8 )
| |
Adjusted Net Income | |
(Loss)(1 )Per Share |$ (0.24 )|$ (0.37 ) $ (0.18 ) $ (0.21 ) $ (0.18 )
| |
Weighted Average Shares | 102.6 | 102.4 102.6 102.4 102.4
| |
Cash Flow From Operating | |
Activities |$ (4.0 )|$ 0.7 $ 31.3 $ 30.5 $ (9.6 )
| |
Capital Expenditures |$ 17.6 |$ 20.1 $ 16.8 $ 15.4 $ 11.9
| |
Cash, Equivalents & | |
Short-Term Investments |$ 179.6 |$ 270.9 $ 295.4 $ 316.8 $ 318.6
| |
Total Debt(2) |$ 513.5 |$ 468.5 $ 469.5 $ 480.1 $ 464.2
| |
Average Realized Price | |
Per Ounce - Silver |$ 16.77 |$ 16.40 $ 19.46 $ 19.60 $ 20.28
| |
Average Realized Price | |
Per Ounce - Gold |$ 1,204 |$ 1,186 $ 1,260 $ 1,277 $ 1,279
| |
Silver Ounces Produced | 3.8 | 4.3 4.3 4.5 4.1
| |
Gold Ounces Produced | 69,734 | 64,534 64,989 61,025 58,836
| |
Silver Equivalent Ounces | |
Produced(1) | 8.0 | 8.3 8.2 8.1 7.6
| |
Silver Ounces Sold | 4.1 | 4.6 4.3 4.6 3.9
| |
Gold Ounces Sold | 68,420 | 52,785 69,541 57,751 62,578
| |
Silver Equivalent Ounces | |
Sold(1) | 8.2| 7.9 8.4 8.1 7.6
| |
Adjusted Costs Applicable| |
to Sales per AgEq Oz(1) |$ 13.71 |$ 14.43 $ 14.19 $ 14.00 $ 13.09
| |
Adj. Costs Applicable to | |
Sales per Au Oz(1) | |
(Kensington) |$ 797 |$ 792 $ 889 $ 821 $ 879
| |
Adjusted All-in | |
Sustaining Costs per AgEq| |
Oz(1) |$ 17.66 |$ 19.25 $ 18.27 $ 19.10 $ 18.52
+---------+
Financial Results
First quarter 2015 revenue increased $12.4 million, or 9%, compared with the
fourth quarter of 2014 to $153.0 million due to a 4% increase in silver
equivalent ounces sold and slightly higher metal prices. Average realized silver
and gold prices each increased 2% compared to the fourth quarter, at $16.77 per
ounce for silver and $1,204 per ounce for gold. Silver contributed 45% of metal
sales and gold contributed 55% during the first quarter.
General and administrative expenses decreased 2% from the fourth quarter to $8.8
million in the first quarter, and were down 37% compared to the first quarter of
2014. Capital expenditures of $17.6 million in the first quarter declined 12%
compared to the fourth quarter.
Adjusted net loss(1) was $24.4 million or $0.24 per share in the first quarter,
improved from a loss of $37.5 million, or $0.37 per share, in the fourth quarter
mainly due to lower unit operating costs. The first quarter adjusted net loss(1)
mainly excludes inventory adjustments to net realizable value, foreign exchange
losses on deferred taxes, and fair value adjustments to royalty obligations and
metal hedging contracts.
Cash flow used in operating activities was $4.0 million in the first quarter,
which included a $14.4 million increase in working capital, mainly due to
accrued interest, payroll, and other benefits. Inventory was nearly unchanged
during the quarter, with inventory reductions at Kensington and Rochester mostly
offset by a $6.7 million increase at Wharf, as no sales were recorded in the
first quarter due to the shipping schedule at the mine.
Coeur entered into a short-term credit facility with The Bank of Nova Scotia for
$50.0 million, which raised the total debt balance to $513.5 million as of March
31, 2015, including $437.5 million in senior unsecured notes due in 2021. Cash,
cash equivalents, and short-term investments totaled $179.6 million at the end
of the first quarter, yielding a net debt balance of $333.9 million.
Operations
Highlights of first quarter 2015 results for each of the Company's operating
segments are provided below.
Palmarejo, Mexico
+-------+
(Dollars in millions, except per ounce| |
amounts) |1Q 2015|4Q 2014 3Q 2014 2Q 2014 1Q 2014
+-------+-------------------------------
Underground Operations: | |
| |
Tons mined |149,150|187,730 169,656 177,359 209,854
| |
Average silver grade (oz/t) | 4.34 | 4.49 4.88 6.15 5.95
| |
Average gold grade (oz/t) | 0.07 | 0.06 0.10 0.11 0.11
| |
Surface Operations: | |
| |
Tons mined |281,481|320,802 343,001 320,583 358,222
| |
Average silver grade (oz/t) | 3.79 | 2.90 3.09 3.72 3.50
| |
Average gold grade (oz/t) | 0.04 | 0.03 0.03 0.03 0.03
| |
Processing: | |
| |
Total tons milled |451,918|510,813 518,212 534,718 571,345
| |
Average recovery rate - Ag | 78.7% | 80.2% 82.7% 75.6% 73.3%
| |
Average recovery rate - Au | 73.9% | 78.7% 86.9% 78.9% 78.0%
| |
Silver ounces produced (000's) | 1,354 | 1,444 1,533 1,761 1,820
| |
Gold ounces produced |15,495 |15,237 22,514 23,706 25,216
| |
Silver equivalent ounces produced(1 | |
)(000's) | 2,284 | 2,359 2,883 3,183 3,333
| |
Silver ounces sold (000's) | 1,330 | 1,375 1,605 1,983 1,677
| |
Gold ounces sold |13,793 |16,255 23,600 25,753 26,422
| |
Silver equivalent ounces sold(1 | |
)(000's) | 2,158 | 2,350 3,021 3,528 3,262
| |
Revenues | $39.4 | $42.2 $61.4 $72.4 $68.0
| |
Costs applicable to sales | $34.5 | $48.1 $46.0 $49.6 $43.6
| |
Adjusted costs applicable to sales per| |
AgEq ounce(1) |$14.56 |$15.70 $14.43 $13.48 $13.13
| |
Exploration expense | $1.1 | $1.5 $2.6 $1.6 $1.0
| |
Cash flow from operating activities |$(0.2) |$(3.2) $20.2 $27.4 $10.2
| |
Sustaining capital expenditures | $3.1 | $5.5 $1.9 $5.3 $3.7
| |
Development capital expenditures | $6.1 | $5.4 $4.0 $0.3 $-
+-------+-------------------------------
Total capital expenditures | $9.2 | $10.9 $5.9 $5.6 $3.7
| |
Free cash flow (before royalties) |$(9.4) |$(14.1) $14.3 $21.8 $6.5
| |
Royalties paid | $10.4 | $10.0 $11.4 $12.3 $14.7
| |
Free cash flow(3) |$(19.8)|$(24.1) $2.9 $9.5 $(8.2)
+-------+
* Adjusted costs applicable to sales per silver equivalent ounce(1) of $14.56
decreased 7% from the fourth quarter of 2014
* Recovery rates for silver and gold declined in the first quarter due to test
work completed in the processing plant during the quarter
* Cash flow from operating activities of $(0.2) million included a $4.5
million increase in working capital
* Palmarejo continues to transition to underground mining at the Guadalupe
mine and the Independencia mine (beginning early 2016) while mining
activities in the historic zones gradually decline
* Open-pit operations are expected to end in the third quarter of 2015 and
underground mining at the legacy zones is expected to end by January 2016
* The acquisition of Paramount closed April 17, 2015. On April 27, 2015, Coeur
announced an 89% increase in silver reserves and 76% increase in gold
reserves at Palmarejo, mainly from the addition of certain Paramount assets.
The increase contains an average silver reserve grade 31% higher than
Palmarejo's reserves as of December 31, 2014
* Palmarejo's reserves now total 54.0 million silver ounces and 876,000 gold
ounces. Compared to just fifteen months ago, silver reserves have increased
30% and gold reserves have increased 54%. Most importantly, the average
silver reserve grade has increased 32% and the average gold reserve grade
has increased 55%
* In 2015, Palmarejo is expected to produce 3.9 - 4.3 million ounces of silver
and 55,000 - 65,000 ounces of gold at costs applicable to sales per silver
equivalent ounce(1) of $16.25 - $17.75
Rochester, Nevada
+---------+
(Dollars in millions, except| |
per ounce amounts) | 1Q 2015 | 4Q 2014 3Q 2014 2Q 2014 1Q 2014
+---------+---------------------------------------
Ore tons placed |4,013,879|3,876,944 3,892,421 3,329,582 3,640,861
| |
Average silver grade (oz/t) | 0.74 | 0.60 0.51 0.58 0.59
| |
Average gold grade (oz/t) | 0.004 | 0.004 0.005 0.003 0.003
| |
Silver ounces produced | |
(000's) | 1,144 | 1,170 1,156 1,112 750
| |
Gold ounces produced | 13,721 | 15,764 11,702 9,230 8,192
| |
Silver equivalent ounces | |
produced(1 )(000's) | 1,967 | 2,116 1,858 1,666 1,242
| |
Silver ounces sold (000's) | 1,351 | 1,154 1,067 1,006 695
| |
Gold ounces sold | 17,754 | 14,131 8,932 8,970 7,770
| |
Silver equivalent ounces | |
sold(1 )(000's) | 2,416 | 2,002 1,603 1,544 1,161
| |
Revenues | $44.0 | $36.0 $32.4 $31.2 $24.2
| |
Costs applicable to sales | $31.4 | $28.7 $23.7 $24.4 $14.7
| |
Adjusted costs applicable to| |
sales per silver equivalent | |
ounce(1) | $12.95 | $13.82 $14.78 $15.73 $12.63
| |
Exploration expense | $0.7 | $0.6 $0.1 $0.7 $1.2
| |
Cash flow from operating | |
activities | $16.4 | $10.2 $8.2 $4.3 $(9.0)
| |
Sustaining capital | |
expenditures | $0.8 | $2.7 $4.2 $4.0 $1.0
| |
Development capital | |
expenditures | $2.5 | $- $- $- $-
+---------+---------------------------------------
Total capital expenditures | $3.3 | $2.7 $4.2 $4.0 $1.0
| |
Free cash flow(3) | $13.1 | $7.5 $4.0 $0.3 $(10.0)
+---------+
* First quarter adjusted costs applicable to sales per silver equivalent
ounce(1) were $12.95, down 6% from the fourth quarter due to lower crushing
and leaching costs
* The average silver grade increased 23% compared to the fourth quarter and
silver equivalent ounces sold increased 21%
* Free cash flow(3) of $13.1 million in the first quarter was the highest
since the fourth quarter of 2012, when realized silver and gold prices
averaged $32.52 per ounce and $1,709 per ounce, respectively
* Approval for POA 10 (expansion of Stage 4 leach pad and construction of new
Stage 5 leach pad) is expected by early 2016
* In 2015, Rochester is expected to produce 4.7 - 5.0 million ounces of silver
and 55,000 - 65,000 ounces of gold at costs applicable to sales per silver
equivalent ounce(1) of $12.50 - $14.00
Kensington, Alaska
+-------+
(Dollars in millions, except per ounce| |
amounts) |1Q 2015|4Q 2014 3Q 2014 2Q 2014 1Q 2014
+-------+-------------------------------
Tons milled |147,969|167,417 145,097 163,749 159,697
| |
Average gold grade (oz/t) | 0.24 | 0.21 0.23 0.18 0.17
| |
Average recovery rate | 94.8% | 94.2% 93.0% 94.5% 94.5%
| |
Gold ounces produced |33,909 |33,533 30,773 28,089 25,428
| |
Gold ounces sold |36,873 |22,399 37,009 23,028 28,386
| |
Revenues | $44.0 | $26.0 $45.9 $29.0 $36.1
| |
Costs applicable to sales | $29.4 | $18.9 $34.7 $23.2 $28.5
| |
Adjusted costs applicable to sales per| |
gold ounce(1) | $797 | $792 $889 $821 $879
| |
Exploration expense | $1.7 | $2.8 $2.6 $1.6 $1.0
| |
Cash flow from operating activities | $12.3 |$(3.7) $17.0 $(0.6) $13.9
| |
Sustaining capital expenditures | $4.1 | $3.3 $3.6 $4.0 $4.7
| |
Development capital expenditures | $- | $0.6 $- $- $-
+-------+-------------------------------
Total capital expenditures | $4.1 | $3.9 $3.6 $4.0 $4.7
| |
Free cash flow(3) | $8.2 |$(7.6) $13.4 $(4.6) $9.2
+-------+
* Free cash flow(3) at Kensington of $8.2 million increased from $(7.6)
million in the fourth quarter of 2014 due to a 65% increase in gold ounces
sold
* A 14% increase in average gold grade enabled lower throughput in the first
quarter, with adjusted costs applicable to sales per gold ounce(1) below
$800 for the second consecutive quarter
* Coeur released a re-scoped mine plan at Kensington on April 14, 2015,
reflecting the impact of the recently discovered high-grade Jualin zone.
Mining rates at Jualin are expected to peak in 2018-2019 when annual
production at Kensington is expected to average approximately 143,000 ounces
at costs applicable to sales per gold ounce of approximately $760. Recent
drilling results suggest the potential to grow the resource at Jualin and
extend the 2017 -2019 production profile
* In 2015, Kensington is expected to produce 110,000 - 115,000 ounces of gold
at costs applicable to sales per gold ounce of $900 - $975
San Bartolomé, Bolivia
+-------+
(Dollars in millions, except per ounce| |
amounts) |1Q 2015|4Q 2014 3Q 2014 2Q 2014 1Q 2014
+-------+-------------------------------
Tons milled |406,951|454,135 471,938 437,975 385,375
| |
Average silver grade (oz/t) | 3.65 | 3.77 3.70 3.87 3.88
| |
Average recovery rate | 81.6% | 88.0% 86.5% 87.5% 90.5%
| |
Silver ounces produced (000's) | 1,213 | 1,507 1,509 1,481 1,355
| |
Silver ounces sold (000's) | 1,290 | 1,987 1,438 1,494 1,357
| |
Revenues | $21.5 | $32.6 $28.4 $29.1 $27.6
| |
Costs applicable to sales | $19.1 | $29.6 $20.4 $20.7 $18.9
| |
Adjusted costs applicable to sales per| |
silver equivalent ounce(1) |$14.47 |$14.38 $13.67 $13.85 $13.93
| |
Exploration expense | $- | $- $- $0.1 $-
| |
Cash flow from operating activities | $5.0 | $2.3 $12.3 $18.9 $4.5
| |
Sustaining capital expenditures | $0.9 | $2.0 $2.8 $1.7 $1.4
| |
Development capital expenditures | $- | $- $- $- $-
+-------+-------------------------------
Total capital expenditures | $0.9 | $2.0 $2.8 $1.7 $1.4
| |
Free cash flow(3) | $4.1 | $0.3 $9.5 $17.2 $3.1
+-------+
* Maintenance downtime and heavy rain resulted in processing a greater
proportion of stockpiled ore in the first quarter, which negatively impacted
the grade and recovery rates. Despite this, adjusted costs applicable to
sales per silver equivalent ounce(1) remained stable with the fourth quarter
of 2014 at San Bartolomé
* Free cash flow(1) of $4.1 million in the first quarter increased from $0.3
million in the fourth quarter of 2014 due to lower working capital
* In 2015, San Bartolomé is expected to produce 5.8 - 6.1 million ounces of
silver at costs applicable to sales per silver equivalent ounce(1) of $13.50
- $15.00
Wharf, South Dakota
+-------+
(Dollars in millions, except per ounce| |
amounts) |1Q 2015|4Q 2014 3Q 2014 2Q 2014 1Q 2014
+-------+-------------------------------
Ore tons placed |415,996| - - - -
| |
Average gold grade (oz/t) | 0.020 | - - - -
| |
Gold ounces produced | 6,609 | - - - -
| |
Revenues | $- | - - - -
| |
Cash flow from operating activities |$(7.2) | - - - -
| |
Sustaining capital expenditures | $0.1 | - - - -
| |
Development capital expenditures | $- | - - - -
+-------+-------------------------------
Total capital expenditures | $0.1 | - - - -
| |
Free cash flow(3) |$(7.3) | - - - -
+-------+
* There were no metal sales at Wharf from the February 20, 2015 transaction
closing date through the end of the first quarter, as the mine has
historically maintained a monthly shipping schedule. The first ore shipment
after the transaction closed was in mid-March and the corresponding metal
sale occurred in April. Going forward, Coeur expects to increase the
frequency of ore shipments at Wharf to more closely align the timing of
metal sales with production
* In 2015, Wharf is expected to produce 74,000 - 78,000 ounces of gold at
costs applicable to sales per gold equivalent ounce(1) of $750 - $825
Coeur Capital
+-------+
(Dollars in millions, except per ounce| |
amounts) |1Q 2015|4Q 2014 3Q 2014 2Q 2014 1Q 2014
+-------+-------------------------------
Tons milled |185,299|214,180 199,757 185,538 193,219
| |
Average silver grade (oz/t) | 1.69 | 1.99 1.44 1.41 1.65
| |
Average recovery rate | 42.4% | 44.9% 49.1% 42.4% 45.9%
| |
Silver ounces produced (000's) | 133 | 191 141 111 147
| |
Silver ounces sold (000's) | 118 | 192 141 106 147
| |
Metal sales | $1.9 | $2.7 $2.4 $2.0 $2.9
| |
Royalty revenue | $1.5 | $0.7 $0.6 $0.9 $1.0
| |
Costs applicable to sales (Endeavor | |
silver stream) | $0.6 | $1.1 $1.1 $0.8 $1.2
| |
Costs applicable to sales per silver | |
equivalent ounce(1) | $5.37 | $5.69 $7.71 $7.94 $8.05
| |
Cash flow from operating activities | $2.2 | $1.5 $2.4 $0.8 $1.8
| |
Free cash flow(3) | $2.2 | $1.5 $2.4 $0.8 $1.8
+-------+
* There are five cash-flowing royalties and streams, four non-cash-flowing
royalties, and ten investments in junior mining companies held in Coeur
Capital or its affiliates
* Coeur Capital's largest source of cash flow is the silver stream on the
Endeavor mine in New South Wales, Australia in which the Company owns 100%
of the silver up to a total of 20.0 million payable ounces. At March
31, 2015, the Company has received 5.6 million ounces, or 28.0% of the total
Exploration
Costs associated with exploration activities for the first quarter of 2015 were
$4.3 million (expensed) for discovery of new silver and gold mineralization and
$4.0 million (capitalized) for definition and expansion of mineralized material.
These amounts compare to exploration costs of $5.7 million expensed and $2.9
million capitalized in the fourth quarter of 2014. Coeur's exploration program
used 10 drill rigs during the first quarter: 4 drills at Palmarejo, 4 at
Kensington, and 2 at Rochester. This work resulted in completion of over 86,931
feet (26,496 meters) of combined core and reverse circulation drilling. Coeur
announced high-grade drill results at Kensington on April 14, 2015 and at
Palmarejo on April 28, 2015, demonstrating Coeur's continued success finding
high-grade mineralization near existing infrastructure.
Exploration expenses are expected to total $13 - $16 million in 2015, with
additional capital allocated to resource conversion. Coeur will continue to use
a success-based approach to evaluate exploration needs on an ongoing basis.
2015 Outlook
Coeur's 2015 total production and cost guidance is shown below. Coeur is raising
its guidance for capital expenditures to $95 - $105 million compared to prior
guidance of $85 - $95 million as well as its guidance for exploration expenses
to $13 - $16 million from $10 - $12 million for 2015. Prior guidance did not
include development capital and exploration expenses related to the acquisition
of Paramount Gold and Silver Corp.
2015 Production Outlook
(silver and silver
equivalent ounces in
thousands) Silver Gold Silver Equivalent(1)
-------------------------------------------------------------------------------
Palmarejo 3,900 - 4,300 55,000 - 65,000 7,200 - 8,200
San Bartolomé 5,800 - 6,100 - 5,800 - 6,100
Rochester 4,700 - 5,000 55,000 - 65,000 8,000 - 8,900
Endeavor 400 - 600 - 400 - 600
Kensington - 110,000 - 115,000 6,600 - 6,900
Wharf - 74,000 - 78,000 4,440 - 4,680
-------------------------------------------------------------------------------
Total 14,800 - 16,000 294,000 - 323,000 32,440 - 35,380
-------------------------------------------------------------------------------
2015 Cost Outlook
(dollars in millions, except per ounce amounts) 2015 Guidance 2014 Result
-------------------------------------------------------------------------------
Costs Applicable to Sales per Silver Equivalent
Ounce(1) - Palmarejo $16.25 - $17.75 $15.40
Costs Applicable to Sales per Silver Equivalent
Ounce(1) - San Bartolomé $13.50 - $15.00 $14.29
Costs Applicable to Sales per Silver Equivalent
Ounce(1) - Rochester $12.50 - $14.00 $14.49
Costs Applicable to Sales per Gold Ounce(1) -
Kensington $900 - 975 $951
Costs Applicable to Sales per Gold Equivalent
Ounce(1) - Wharf $750 - $825 N/A
Capital Expenditures $95 - $105 $64
General and Administrative Expenses $36 - $39 $41
Exploration Expense $13 - $16 $22
All-in Sustaining Costs per Silver Equivalent
Ounce(1) $17.50 - $18.50 $19.72
-------------------------------------------------------------------------------
Downside Price Protection
The Company's downside metal price protection program uses put spreads to
protect a portion of expected future production against a sharp decrease in
metal prices, while selling intra-quarter, out-of-the-money call options when
appropriate to offset the net cost of the put spreads. Put spreads settled and
calls sold during the first quarter of 2015 generated cash flow of $1.6 million.
Put spreads for the second quarter of 2015 cover 900,000 ounces of expected
silver production per month with strike prices of $17 per ounce on options
purchased and $15.50 per ounce on options sold.
Conference Call Information
Coeur will conduct a conference call and webcast at www.coeur.com to discuss the
Company's first quarter results on May 5, 2015 at 11:00 a.m. Eastern time.
Dial-In Numbers: (888) 317-6016 (US)
(855) 669-9657 (Canada)
(412) 317-6016 (International)
Conference ID: Coeur Mining, Inc.
A replay of the call will be available on Coeur's website through May 19, 2015.
Replay Numbers: (877) 344-7529 (US)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID: 100 63 549
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a significant gold
producer with four precious metals mines in the Americas employing approximately
2,100 people. Coeur produces from its wholly owned operations: the Palmarejo
silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the
Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. The Company also has a non-operating
interest in the Endeavor mine in Australia in addition to royalties on the Cerro
Bayo mine in Chile, the El Gallo complex in Mexico, the Zaruma mine in Ecuador,
and the Correnso mine in New Zealand. In addition, the Company has two silver-
gold exploration projects - the La Preciosa project in Mexico and the Joaquin
project in Argentina. The Company also conducts ongoing exploration activities
in Alaska, Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic
investment positions in several silver and gold development companies with
projects in North and South America.
Cautionary Statement
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, expenses, mining
rates, grades, POA 10 approval at Rochester, open-pit and underground mining
operations at Palmarejo, the re-scoped mine plan at Kensington, the timing of
metal sales, and initiatives to achieve lower unit costs, higher quality ounces,
generate free cash flow, maintain sufficient liquidity and a flexible balance
sheet, and minimize exposure to declining metal prices. 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 anticipated benefits of the Wharf and Paramount
acquisitions are not realized, the risk that anticipated production and cost
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 and silver 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, ground conditions, grade variability, any future labor
disputes or work stoppages (including those involving third parties), the
uncertainties inherent in the estimation of gold and silver reserves and
resources, changes that could result from Coeur's future acquisition of new
mining properties or businesses, the absence of control over and reliance on
third parties to operate mining operations in which Coeur or its subsidiaries
hold royalty or streaming interests and risks related to these mining operations
including results of mining and exploration activities, environmental, economic
and political risks of the jurisdiction in which the mining operations are
located, the loss of access to any third-party smelter to which Coeur markets
silver and gold, 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.
W. David Tyler, Coeur's Vice President, Technical Services and a qualified
person under Canadian National Instrument 43-101, supervised the preparation of
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 and the technical report for Palmarejo to be
filed on www.sedar.com during the second quarter of 2015.
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 adjusted EBITDA, adjusted net income
(loss), costs applicable to sales per silver equivalent ounce (or per gold
equivalent ounce), adjusted costs applicable to sales per silver equivalent
ounce, all-in sustaining costs, and adjusted all-in sustaining costs. 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 adjusted EBITDA, adjusted net income (loss),
costs applicable to sales per silver equivalent ounce (or per gold equivalent
ounce), adjusted costs applicable to sales per silver equivalent ounce, all-in
sustaining costs, and adjusted all-in sustaining costs are important measures in
assessing the Company's overall financial performance.
Notes
1. 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 for the reconciliation to U.S. GAAP. For purposes of silver and
gold equivalence, 60:1 silver to gold ratio.
2. Includes capital leases. Net of debt discount.
3. Free cash flow is defined as cash flow from operating activities less capital
expenditures and royalty payments.
For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Loss)
Three months ended March
31,
--------------------------
2015 2014
------------- ------------
In thousands, except share
data
Revenue $ 152,956 $ 159,633
COSTS AND EXPENSES
Costs applicable to sales 115,062 106,896
Amortization 33,090 40,459
General and administrative 8,834 13,896
Exploration 4,266 4,217
Pre-development, reclamation, and other 6,763 6,984
------------- ------------
Total costs and expenses 168,015 172,452
OTHER INCOME (EXPENSE), NET
Fair value adjustments, net (4,884 ) (11,436 )
Impairment of equity securities (1,514 ) (2,588 )
Interest income and other, net (997 ) (1,983 )
Interest expense, net of capitalized interest (10,765 ) (13,054 )
------------- ------------
Total other income (expense), net (18,160 ) (29,061 )
------------- ------------
Income (loss) before income and mining taxes (33,219 ) (41,880 )
Income and mining tax (expense) benefit (68 ) 4,689
------------- ------------
NET INCOME (LOSS) $ (33,287 ) $ (37,191 )
------------- ------------
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Unrealized gain (loss) on equity securities, net
of tax of $578 and $(234) for the three months
ended March 31, 2015 and 2014, respectively (915 ) 371
Reclassification adjustments for impairment of
equity securities, net of tax of $(586) and
$(1,001) for the three months ended March
31, 2015 and 2014, respectively 928 1,587
------------- ------------
Other comprehensive income (loss) 13 1,958
------------- ------------
COMPREHENSIVE INCOME (LOSS) $ (33,274 ) $ (35,233 )
------------- ------------
NET INCOME (LOSS) PER SHARE
Basic $ (0.32 ) $ (0.36 )
------------- ------------
Diluted $ (0.32 ) $ (0.36 )
------------- ------------
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Three months ended March
31,
--------------------------
2015 2014
------------- ------------
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (33,287 ) (37,191 )
Adjustments:
Amortization 33,090 40,459
Accretion 3,150 4,560
Deferred income taxes (2,184 ) (11,781 )
Loss on termination of revolving credit facility - 3,035
Fair value adjustments, net 4,884 11,436
Stock-based compensation 2,150 2,565
Impairment of equity securities 1,514 2,588
Other 1,079 (817 )
Changes in operating assets and liabilities:
Receivables 2,556 5,622
Prepaid expenses and other current assets (1,327 ) (8,109 )
Inventory and ore on leach pads 684 (13,912 )
Accounts payable and accrued liabilities (16,281 ) (8,082 )
------------- ------------
CASH USED IN OPERATING ACTIVITIES (3,972 ) (9,627 )
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (17,620 ) (11,936 )
Acquisitions, net of cash acquired (102,018 ) -
Other (1,730 ) (25 )
Purchase of short-term investments and equity
securities (278 ) (46,220 )
Sales and maturities of short-term investments 229 90
------------- ------------
CASH USED IN INVESTING ACTIVITIES (121,417 ) (58,091 )
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of notes and bank borrowings 53,500 153,000
Payments on long-term debt, capital leases, and
associated costs (8,594 ) (4,111 )
Gold production royalty payments (10,368 ) (14,683 )
Other (423 ) (246 )
------------- ------------
CASH PROVIDED BY FINANCING ACTIVITIES 34,115 133,960
------------- ------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (91,274 ) 66,242
Cash and cash equivalents at beginning of period 270,861 206,690
------------- ------------
Cash and cash equivalents at end of period $ 179,587 $ 272,932
------------- ------------
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March
31, 2015 December 31,
(Unaudited) 2014
--------------- ----------------
ASSETS In thousands, except share data
CURRENT ASSETS
Cash and cash equivalents $ 179,587 $ 270,861
Receivables 118,390 116,921
Inventory 115,337 114,931
Ore on leach pads 66,705 48,204
Deferred tax assets 7,255 7,364
Prepaid expenses and other 18,629 15,523
--------------- ----------------
505,903 573,804
NON-CURRENT ASSETS
Property, plant and equipment, net 254,892 227,911
Mining properties, net 572,842 501,192
Ore on leach pads 34,425 37,889
Restricted assets 9,039 7,037
Equity securities 4,488 5,982
Receivables 18,933 21,686
Deferred tax assets 63,735 60,151
Other 11,561 9,915
--------------- ----------------
TOTAL ASSETS $ 1,475,818 $ 1,445,567
--------------- ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 45,387 $ 49,052
Accrued liabilities and other 40,568 51,513
Debt 65,719 17,498
Royalty obligations 44,442 43,678
Reclamation 3,888 3,871
Deferred tax liabilities 8,078 8,078
--------------- ----------------
208,082 173,690
NON-CURRENT LIABILITIES
Debt 447,779 451,048
Royalty obligations 21,219 27,651
Reclamation 85,899 66,943
Deferred tax liabilities 121,799 111,006
Other long-term liabilities 37,476 29,911
--------------- ----------------
714,172 686,559
STOCKHOLDERS' EQUITY
Common stock, par value $0.01 per share;
authorized 150,000,000 shares, issued and
outstanding 103,299,223 at March 31, 2015 and
103,384,408 at December 31, 2014 1,033 1,034
Additional paid-in capital 2,791,216 2,789,695
Accumulated other comprehensive income (loss) (2,795 ) (2,808 )
Accumulated deficit (2,235,890 ) (2,202,603 )
--------------- ----------------
553,564 585,318
--------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,475,818 $ 1,445,567
--------------- ----------------
Adjusted EBITDA Reconciliation
(Dollars in
thousands
except per
share
amounts) 1Q 2015 4Q 2014 3Q 2014 2Q 2014 1Q 2014
------------- ---------------- ------------ ------------- ------------
Net income
(loss) $ (33,287 ) $ (1,079,038 ) $ 3,466 $ (43,121 ) $ (37,191 )
Interest
expense, net
of
capitalized
interest 10,765 10,566 11,615 12,311 13,054
Interest
income and
other, net 997 (3,688 ) 213 4,083 (1,983 )
Income tax
provision
(benefit) 68 (440,594 ) (16,582 ) 2,621 (4,689 )
Amortization 33,090 38,570 41,985 41,422 40,459
------------- ---------------- ------------ ------------- ------------
EBITDA 11,633 (1,474,184 ) 40,697 17,316 9,650
Fair value
adjustments,
net 4,884 (7,229 ) (16,106 ) 8,281 11,436
Impairment
of equity
securities 1,514 1,979 1,092 934 2,588
Litigation
settlements - - - - -
Loss on
revolver
termination - - - - 3,035
Inventory
adjustments 3,684 14,482 4,993 6,353 4,373
Write-downs - 1,472,721 - - -
------------- ---------------- ------------ ------------- ------------
Adjusted
EBITDA $ 21,715 $ 7,769 $ 30,676 $ 32,884 $ 31,082
------------- ---------------- ------------ ------------- ------------
Adjusted Net Income (Loss) Reconciliation
(Dollars in
thousands
except per
share amounts) 1Q 2015 4Q 2014 3Q 2014 2Q 2014 1Q 2014
------------- ---------------- ------------- ------------- ------------
Net income
(loss) $ (33,287 ) $ (1,079,038 ) $ 3,466 $ (43,121 ) $ (37,191 )
Fair value
adjustments,
net 4,339 (5,622 ) (13,026 ) 6,498 7,827
Stock-based
compensation 2,410 1,807 2,417 2,299 2,453
Impairment of
equity
securities 1,514 1,979 1,092 934 2,588
Accretion of
royalty
obligation 1,315 1,992 1,374 1,789 1,821
Write-downs - 1,021,756 - - -
Litigation
settlements - - - - -
(Gain) loss on
debt
extinguishments - (426 ) - - -
Loss on
revolver
termination - - - - 3,035
Inventory
adjustments 3,684 14,482 4,993 6,353 4,373
Deferred tax
asset valuation
allowance (3,464 ) - - - -
------------- ---------------- ------------- ------------- ------------
Foreign
exchange (gain)
loss on
deferred taxes (929 ) 5,615 (18,801 ) 3,711 (3,705 )
------------- ---------------- ------------- ------------- ------------
Adjusted net
income (loss) $ (24,418 ) $ (37,455 ) $ (18,485 ) $ (21,537 ) $ (18,799 )
------------- ---------------- ------------- ------------- ------------
Adjusted net
income (loss)
per share $ (0.24 ) $ (0.37 ) $ (0.18 ) $ (0.21 ) $ (0.18 )
------------- ---------------- ------------- ------------- ------------
Reconciliation of Non-U.S. GAAP All-in Sustaining Costs per Silver Equivalent
Ounce
for Three Months Ended March 31, 2015
Silver Gold
------------------------------------------------------------------- ------------
In thousands
except per San
ounce amounts Palmarejo Bartolomé Rochester Endeavor Total Kensington Total
------------------------------------------------------------------- ------------ ------------
Costs
applicable to
sales,
including
amortization
(U.S. GAAP) $ 41,824 $ 23,818 $ 38,235 $ 1,892 $ 105,769 $ 40,973 $ 146,742
Amortization 7,333 4,691 6,843 1,259 20,126 11,554 31,680
------------- ------------- ------------- ----------- ------------- ------------ ------------
Costs
applicable to
sales $ 34,491 $ 19,127 $ 31,392 $ 633 $ 85,643 $ 29,419 $ 115,062
Silver
equivalent
ounces sold 2,157,612 1,289,867 2,416,103 117,863 5,981,445
Gold ounces
sold
Unternehmensinformation / Kurzprofil:
Datum: 04.05.2015 - 23:02 Uhr
Sprache: Deutsch
News-ID 390718
Anzahl Zeichen: 65579
contact information:
Town:
Chicago
Kategorie:
Business News
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"Coeur Reports First Quarter 2015 Results"
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