Reaffirms Full-Year 2021 Guidance
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported first quarter 2021 financial results, including revenue of
$202.1 million, cash flow from operating activities of $(4.4)
million and GAAP net income from continuing operations of $2.1
million, or $0.01 per share. On an adjusted basis1, the Company
reported EBITDA of $65.9 million, cash flow from operating
activities before changes in working capital of $41.6 million and
net income from continuing operations of $13.9 million, or $0.06
per share.
The Company also reaffirmed its full-year 2021 production
guidance of 322,500 - 367,500 ounces of gold and 9.7 - 12.2 million
ounces of silver. Additionally, full-year cost, exploration and
capital expenditure guidance was reaffirmed.
Key Highlights
- Higher margins helped drive a stronger start to the year
– Coeur’s first quarter results reflect a strong start to the year
led by solid production and higher prices. Notably, quarterly
revenue, operating cash flow before changes in working capital1 and
adjusted EBITDA1 increased 17%, 38% and 42% year-over-year,
respectively
- Solid gold production and unit costs – The Company’s
gold production of 85,225 ounces exceeded expectations for the
quarter, tracking well towards its full-year guidance range.
Additionally, all of the Company’s site-level gold unit costs were
either below or within their full-year guidance ranges
- Further enhanced liquidity and balance sheet – Coeur
successfully refinanced its 5.875% senior notes due 2024 with
5.125% senior notes due 2029, capturing a lower interest rate,
extending the maturity and opportunistically upsizing the offering.
The Company also extended the maturity of its senior secured
revolving credit facility (“RCF”) from October 2022 to March 2025.
Together, these efforts improved Coeur’s liquidity profile and
bolstered its balance sheet, helping to enhance financial
flexibility ahead of a period of planned capital intensity
- Commenced major construction on Rochester expansion –
The Company began major construction on the Plan of Operations
Amendment 11 (“POA 11”) expansion at its Rochester mine. Overall
project progress was approximately 20% complete at the end of the
first quarter. Key elements of the project timeline remain on
schedule and are expected to be largely completed by late next
year
- Encouraging results from aggressive investment in
exploration – Following its successful program in 2020, Coeur
began the year with the largest exploration campaign in Company
history. The Company invested approximately $14.9 million ($9.7
million expensed and $5.2 million capitalized) in exploration
during the quarter, drilling roughly 250,500 feet (76,375 meters)
across all sites. Drilling activities at Silvertip and Crown ramped
up significantly during the quarter, while Coeur’s other sites
continued to advance their resource expansion and infill
programs
“Our first quarter results were in-line with our expectations
driven by strong gold production performance across our portfolio
of assets, which led to double digit year-over-year increases in
quarterly revenue, adjusted EBITDA1 and operating cash flow before
changes in working capital1,” said Mitchell J. Krebs, President and
Chief Executive Officer. “Additionally, we achieved an important
milestone by commencing major construction on the expansion of our
Rochester mine in Nevada. The project remains on track and is
expected to be largely completed by late next year, helping to
drive an anticipated step change in production and cash flow.”
Mr. Krebs continued, “We took advantage of the low interest rate
environment in March to opportunistically refinance our senior
notes and extend the maturity of our RCF, which fortified our
financial flexibility as we head into a phase of significant
planned capital investment this year and next. On the exploration
front, we are seeing early encouraging results as we execute on the
largest drilling campaign in Company history. By following our
strategy, adhering to our capital allocation framework, and
executing our near-, medium- and long-term objectives, we are
confident in our ability to maximize cash flow, returns and net
asset value for our stockholders.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold/silver ounces produced & sold, and per-ounce
metrics)
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Gold Sales
$
138.3
$
162.0
$
167.1
$
127.9
$
127.6
Silver Sales
$
63.8
$
66.4
$
62.6
$
26.3
$
44.9
Consolidated Revenue
$
202.1
$
228.3
$
229.7
$
154.2
$
173.2
Costs Applicable to Sales2
$
108.1
$
118.6
$
112.8
$
90.0
$
118.9
General and Administrative
Expenses
$
11.6
$
8.4
$
7.8
$
8.6
$
8.9
Net Income (Loss)
$
2.1
$
11.9
$
26.9
$
(1.2
)
$
(11.9
)
Net Income (Loss) Per Share
$
0.01
$
0.05
$
0.11
$
(0.01
)
$
(0.05
)
Adjusted Net Income (Loss)1
$
13.9
$
19.1
$
38.2
$
2.6
$
(0.9
)
Adjusted Net Income (Loss)1 Per
Share
$
0.06
$
0.08
$
0.16
$
0.01
$
—
Weighted Average Shares
Outstanding
244.5
244.3
243.8
240.9
240.3
EBITDA1
$
49.7
$
76.7
$
77.3
$
35.3
$
25.5
Adjusted EBITDA1
$
65.9
$
84.0
$
90.8
$
42.2
$
46.5
Cash Flow from Operating
Activities
$
(4.4
)
$
67.3
$
79.5
$
9.9
$
(8.0
)
Capital Expenditures
$
59.4
$
37.4
$
23.0
$
16.7
$
22.2
Free Cash Flow1
$
(63.8
)
$
29.8
$
56.5
$
(6.7
)
$
(30.2
)
Cash, Equivalents & Short-Term
Investments
$
154.1
$
92.8
$
77.1
$
70.9
$
52.9
Total Debt3
$
412.1
$
275.5
$
301.1
$
348.6
$
343.1
Average Realized Price Per Ounce –
Gold
$
1,664
$
1,663
$
1,754
$
1,641
$
1,490
Average Realized Price Per Ounce –
Silver
$
26.19
$
24.21
$
24.15
$
16.25
$
16.63
Gold Ounces Produced
85,225
96,377
95,995
78,229
85,077
Silver Ounces Produced
2.4
2.8
2.6
1.6
2.7
Gold Ounces Sold
83,112
97,400
95,283
77,933
85,635
Silver Ounces Sold
2.4
2.7
2.6
1.6
2.7
Financial Results
First quarter 2021 revenue totaled $202.1 million compared to
$228.3 million in the prior period and $173.2 million in the first
quarter of 2020. The Company produced 85,225 and 2.4 million ounces
of gold and silver, respectively, during the quarter. Metal sales
totaled 83,112 ounces of gold and 2.4 million ounces of silver.
Average realized gold and silver prices for the quarter were
$1,664 and $26.19 per ounce, respectively, compared to $1,663 and
$24.21 per ounce in the prior period. Gold and silver sales
accounted for 68% and 32% of quarterly revenue, respectively. The
Company’s U.S. operations accounted for approximately 60% of first
quarter revenue, relatively consistent with the prior period.
Costs applicable to sales2 decreased 9% quarter-over-quarter to
$108.1 million, largely due to lower production in the period as
well as a non-cash adjustment at Rochester in the prior quarter.
General and administrative expenses for the quarter totaled $11.6
million compared to $8.4 million in the prior period, reflecting
higher employee-related expenses including increased costs related
to annual incentive payments.
Coeur invested approximately $14.9 million ($9.7 million
expensed and $5.2 million capitalized) in exploration during the
quarter, compared to roughly $14.5 million ($11.6 million expensed
and $2.9 million capitalized) in the fourth quarter of 2020.
Slightly higher exploration investment was driven by a greater
allocation to capitalized infill drilling quarter-over-quarter. See
the “Operations” and “Exploration” sections for additional detail
on the Company’s exploration activities.
Operating costs related to COVID-19 mitigation and response
efforts totaled $3.0 million during the first quarter, compared to
$5.1 million in the prior period. These costs were primarily driven
by employee-related expenses at Kensington and Palmarejo, and are
included in “Pre-development, reclamation, and other expenses” on
the Company’s income statement. Coeur continues to implement and
maintain rigorous health and safety protocols across its operations
and in surrounding communities aimed at limiting the exposure and
transmission of COVID-19 while minimizing business
interruptions.
Coeur recorded an income tax expense of $12.8 million during the
first quarter. Cash income and mining taxes paid during the period
totaled approximately $26.7 million, including the annual payment
of the Mexican mining royalty tax of $9.6 million.
Quarterly operating cash flow totaled $(4.4) million compared to
$67.3 million in the prior period, largely driven by lower metal
sales, higher cash taxes and unfavorable changes in working
capital. Changes in working capital during the quarter were $(45.9)
million, compared to $8.8 million in the prior period, reflecting
the timing of Mexican tax payments as well as the build-up of
inventories primarily related to leach pads. First quarter
operating cash flow also includes a cash outflow of $7.9 million
associated with the Company’s prepayment agreement at Kensington.
Coeur expects the remaining $7.1 million cash outflow under the
arrangement to occur in the second quarter.
Capital expenditures during the first quarter were $59.4 million
compared to $37.4 million in the prior period, reflecting increased
investment across the Company’s portfolio. Investment related to
the POA 11 expansion at Rochester totaled $28.1 million during the
quarter, compared to $14.8 million in the fourth quarter of 2020.
Sustaining and development capital expenditures accounted for
approximately 43% and 57%, respectively, of the Company’s total
capital investment during the quarter.
Balance Sheet Update
Coeur continued to prudently manage its balance sheet during the
first quarter of 2021. The Company successfully refinanced $230.0
million in aggregate principal outstanding of its 5.875% senior
notes due 2024 with $375.0 million of 5.125% senior notes due 2029.
The Company also extended the maturity of its $300.0 million RCF
from October 2022 to March 2025. Together, these initiatives
strengthened Coeur’s financial flexibility ahead of the next two
years of expected capital intensity. Coeur ended the quarter with
total debt3 of $412.1 million and cash and cash equivalents of
$154.1 million.
Hedging Update
The Company did not execute any additional zero-cost collar
(“ZCC”) hedges during the first quarter. Coeur’s hedging strategy
remains focused on supporting cash flow generation during the POA
11 expansion project at Rochester, which the Company expects to
fund with a combination of cash on hand, internally generated cash
flow and debt capacity.
Coeur previously completed its gold hedging program for 2021 and
will proactively monitor market conditions to potentially layer in
additional ZCC hedges on up to 50% of expected gold production in
2022. The Company’s silver price exposure remains unhedged. An
overview of the hedges currently implemented is outlined below:
2021
2022
Gold Ounces Hedged
119,025
126,000
Avg. Ceiling ($/oz)
$1,877
$2,030
Avg. Floor ($/oz)
$1,600
$1,626
Rochester Expansion
Coeur began major construction activities on the POA 11
expansion project at Rochester in January 2021, including
excavation of areas for the Merrill-Crowe process plant and crusher
corridor. Project-specific offices and supporting infrastructure
have been completed and are operational. At the end of the first
quarter, Coeur and SNC-Lavalin (engineering, procurement and
project management contractor) substantially completed detailed
design work for the expansion project, and almost all of the
equipment procurement and service arrangements have been committed.
The Company had over $300.0 million of capital committed to the
expansion project, including 72 executed contracts valued at
approximately $290.0 million as of March 31, 2021. Overall project
progress was approximately 20% complete at the end of the
quarter.
Over the coming quarters, Coeur expects to remain focused on
safely delivering the project with placement of over-liner material
for the Stage VI leach pad, mobilization of a cement batch plant,
construction of a new high-voltage power line and initiation of
electrical substation upgrades planned mid-year. Additionally,
structural steel erection for the crusher corridor is expected to
begin in early 2022.
Key elements of the project timeline remain on schedule and are
highlighted below:
Expected Start Date
Target Completion Date
Leach Pad (Incl. Ancillary Facilities)
2H 2020 ✓
Mid-2022
Merrill-Crowe Process Plant
1H 2021 ✓
YE 2022
Crushing Circuit
1H 2021 ✓
YE 2022
Supporting Infrastructure
2H 2020 ✓
Mid-2022
Operations
First quarter 2021 highlights for each of the Company’s
operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Tons milled
484,390
509,848
492,474
269,641
479,562
Average gold grade (oz/t)
0.06
0.08
0.07
0.07
0.07
Average silver grade (oz/t)
4.07
4.30
4.37
4.46
4.69
Average recovery rate – Au
95.7%
88.9%
91.3%
86.0%
91.6%
Average recovery rate – Ag
81.3%
81.3%
82.8%
72.2%
81.5%
Gold ounces produced
28,605
34,511
29,296
15,223
31,578
Silver ounces produced (000’s)
1,603
1,783
1,784
867
1,835
Gold ounces sold
25,687
35,359
27,252
16,924
31,287
Silver ounces sold (000’s)
1,638
1,767
1,765
875
1,895
Average realized price per gold
ounce
$1,462
$1,395
$1,446
$1,399
$1,331
Average realized price per silver
ounce
$26.12
$24.45
$23.98
$16.35
$17.25
Metal sales
$80.3
$92.5
$81.8
$38.0
$74.3
Costs applicable to sales2
$34.0
$36.1
$34.3
$18.8
$36.0
Adjusted CAS per AuOz1
$621
$542
$602
$686
$645
Adjusted CAS per AgOz1
$10.98
$9.61
$10.06
$8.13
$8.37
Exploration expense
$1.7
$2.6
$2.0
$0.9
$1.5
Cash flow from operating
activities
$13.2
$43.2
$49.7
$(3.5)
$28.9
Sustaining capital expenditures
(excludes capital lease payments)
$10.0
$9.0
$4.9
$4.5
$7.1
Development capital
expenditures
$—
$(0.1)
$0.1
$—
$—
Total capital expenditures
$10.0
$8.9
$5.0
$4.5
$7.1
Free cash flow1
$3.2
$34.3
$44.7
$(8.0)
$21.8
Operational
- First quarter gold and silver production totaled 28,605 and 1.6
million ounces, respectively, compared to 34,511 and 1.8 million
ounces in the prior period and 31,578 and 1.8 million ounces in the
first quarter of 2020
- Gold and silver production was impacted by a 5% decrease in
mill throughput quarter-over-quarter, driven by a change in mine
sequencing due to geotechnically-challenging conditions as well as
lower average grades. First quarter recovery rates benefited from a
drawdown of in-circuit inventory
Financial
- First quarter adjusted CAS1 for gold and silver on a co-product
basis increased 15% and 14% to $621 and $10.98 per ounce,
respectively, compared to the prior quarter, largely driven by a
decrease in average grades
- Capital expenditures increased 12% quarter-over-quarter to
$10.0 million, reflecting higher planned mine development and
equipment purchases
- Free cash flow1 in the first quarter totaled $3.2 million
compared to $34.3 million in the prior period, driven by the
payment of cash income and mining taxes totaling $25.1 million as
well as lower metal sales quarter-over-quarter
Exploration
- Exploration investment for the first quarter totaled
approximately $3.0 million ($1.7 million expensed and $1.3 million
capitalized), compared to roughly $3.7 million ($2.6 million
expensed and $1.1 million capitalized) in the prior period
- Up to seven surface and underground core rigs were active
during the quarter following the success of both expansion and
infill drilling during late 2020. A total of approximately 54,200
feet (16,525 meters) were drilled during the period, including
16,800 feet (5,125 meters) of expansion and 37,400 feet (11,400
meters) of infill
- Infill drilling during the quarter focused on specific zones
within the Independencia and Guadalupe deposits. Surface rigs
targeted areas of the Hidalgo and La Patria zones as well as the
northern portion of the Independencia zone, while underground rigs
focused on the southern portion of the Independencia zone
- Expansion drilling focused on the Hidalgo, North Independencia
and Bavisa North/Ojito zones, located to the north of the
Independencia deposit
- Expansion and greenfield target generation is expected to
continue moving north and east from the Independencia and Guadalupe
deposits
- In parallel, a new initiative to evaluate, target and drill the
Guazapares district (located east of the Palmarejo district) was
launched with the expectation of drilling to begin in the second
half of the year
- Coeur plans to maintain seven active drill rigs at Palmarejo,
ramping up as needed later in the year
Other
- Approximately 34% (8,738 ounces) of Palmarejo’s gold sales in
the first quarter were sold under its gold stream agreement at a
price of $800 per ounce
Guidance
- Full-year 2021 production is expected to be 100,000 - 110,000
ounces of gold and 6.5 - 7.8 million ounces of silver
- CAS1 are expected to be $710 - $810 per gold ounce and $11.00 -
$12.00 per silver ounce
- Capital expenditures are expected to be approximately $40 - $45
million
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Ore tons placed
3,240,917
4,000,889
4,523,767
3,743,331
3,428,578
Average silver grade (oz/t)
0.45
0.53
0.49
0.51
0.57
Average gold grade (oz/t)
0.003
0.002
0.002
0.002
0.002
Silver ounces produced (000’s)
774
1,020
740
728
687
Gold ounces produced
6,904
9,590
6,462
5,159
5,936
Silver ounces sold (000’s)
771
912
786
724
632
Gold ounces sold
6,934
8,672
6,834
5,278
5,473
Average realized price per silver
ounce
$26.34
$24.35
$24.49
$16.11
$16.99
Average realized price per gold
ounce
$1,794
$1,825
$1,882
$1,702
$1,583
Metal sales
$32.8
$38.2
$32.1
$20.6
$19.4
Costs applicable to sales2
$24.0
$31.7
$19.1
$18.3
$17.0
Adjusted CAS per AgOz1
$19.07
$20.18
$14.98
$13.75
$14.38
Adjusted CAS per AuOz1
$1,300
$1,537
$1,148
$1,481
$1,359
Exploration expense
$0.5
$0.8
$0.5
$1.8
$0.2
Cash flow from operating
activities
$(8.7)
$4.7
$2.1
$(5.6)
$(9.3)
Sustaining capital expenditures
(excludes capital lease payments)
$2.0
$2.9
$2.5
$1.5
$0.1
Development capital
expenditures
$28.2
$13.9
$7.3
$4.3
$5.0
Total capital expenditures
$30.2
$16.8
$9.8
$5.8
$5.1
Free cash flow1
$(38.9)
$(12.1)
$(7.7)
$(11.4)
$(14.4)
Operational
- Silver and gold production during the quarter totaled 0.8
million and 6,904 ounces, respectively, compared to 1.0 million and
9,590 ounces in the fourth quarter of 2020. Year-over-year silver
and gold production increased 13% and 16%, respectively
- Coeur crushed approximately 30,200 tons per day during the
first quarter compared to roughly 34,000 tons per day in the fourth
quarter of 2020. Additionally, the Company supplemented placement
rates in the quarter by stacking approximately 524,400 tons of
run-of-mine material compared to just over 877,000 tons in the
prior period
- The Company encountered a new, softer ore type that required
changes to crush size and throughput rates to help manage the
amount of fine particles, with the ultimate goal of improving
leachability and recoveries on the Stage IV leach pad
- Lower production during the quarter was primarily driven by (i)
reduced leaching rates on material placed in the prior period as a
result of additional fine particles, (ii) the placement of material
on deeper portions of the Stage IV leach pad, (iii) lower average
silver grade consistent with the mine plan, and (iv) lower
placement rates. Approximately 65,000 ounces of silver were held as
work-in-process inventory at the end of the period and are expected
to be recovered in the second quarter
- The Company is executing the swap out of the secondary crushing
unit during the month of April and plans to complete the fourth
phase of its inter-lift liner strategy around mid-year. Both
projects are aimed at de-risking the execution of POA 11 and
further improving recovery rates on the Stage IV leach pad
Financial
- First quarter adjusted CAS1 for silver and gold on a co-product
basis decreased 6% and 15% quarter-over-quarter, respectively, to
$19.07 and $1,300 per ounce, primarily driven by a non-cash
adjustment of approximately $7.2 million in the prior period
related to a change in the Company’s recovery rate assumption on
the Stage IV leach pad as well as lower production levels and fewer
ounces sold during the quarter
- Capital expenditures increased 80% quarter-over-quarter to
$30.2 million, largely due to the commencement of major
construction on the POA 11 expansion project
- Free cash flow1 in the first quarter totaled $(38.9) million,
compared to $(12.1) million in the prior period, largely driven by
higher capital expenditures and lower metal sales
Exploration
- Quarterly exploration investment totaled approximately $0.7
million ($0.5 million expensed and $0.2 million capitalized),
compared to roughly $1.2 million ($0.8 million expensed and $0.4
million capitalized) in the prior period
- One reverse circulation rig continued drilling the northern
portion of East Rochester as well as North Rochester and East
Packard during the quarter. A total of approximately 8,900 feet
(2,700 meters) were drilled during the period, primarily focused on
resource expansion
- The Company believes there is significant potential for
resource growth both north and south of East Rochester and at North
Rochester. Coeur continues to receive assay results that were not
included in the updated technical report filed in December 2020,
and expects to incorporate these results in its year-end 2021
reserves and resources
- For the remainder of the year, Coeur plans to ramp up
exploration activities at Rochester with at least three rigs
focusing on infill drilling in the Rochester and Packard pits as
well as expansion drilling at North Rochester, the southern portion
of East Rochester and East Packard. Separately, Coeur also plans to
mobilize two rigs towards the end of the second quarter to conduct
infill drilling at the Lincoln Hill zone and expansion drilling at
the Gold Ridge zone, both located immediately west of
Rochester
Guidance
- Full-year 2021 production is expected to be 3.2 - 4.4 million
ounces of silver and 22,500 - 32,500 ounces of gold
- CAS1 in 2021 are expected to be $15.00 - $17.00 per silver
ounce and $1,180 - $1,330 per gold ounce
- Capital expenditures are expected to be approximately $155 -
$195 million
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Tons milled
170,358
179,636
163,276
170,478
162,341
Average gold grade (oz/t)
0.19
0.20
0.18
0.21
0.21
Average recovery rate
93.2%
93.0%
93.7%
92.0%
93.5%
Gold ounces produced
30,681
32,990
26,797
33,058
32,022
Gold ounces sold
31,595
31,830
27,815
32,367
32,781
Average realized price per gold ounce,
gross
$1,754
$1,837
$1,917
$1,762
$1,603
Treatment and refining charges per gold
ounce
$30
$37
$35
$57
$27
Average realized price per gold ounce,
net
$1,724
$1,800
$1,882
$1,705
$1,576
Metal sales
$54.5
$57.2
$52.4
$55.2
$51.7
Costs applicable to sales2
$31.4
$29.3
$31.5
$30.4
$30.5
Adjusted CAS per AuOz1
$989
$919
$1,128
$934
$928
Prepayment, working capital cash
flow
$(7.9)
$5.1
$(5.1)
$7.0
$(7.0)
Exploration expense
$1.1
$0.8
$3.4
$2.6
$1.8
Cash flow from operating
activities
$11.0
$31.0
$9.1
$27.8
$11.9
Sustaining capital expenditures
(excludes capital lease payments)
$7.2
$5.8
$5.3
$3.9
$4.8
Development capital
expenditures
$—
$—
$—
$—
$—
Total capital expenditures
$7.2
$5.8
$5.3
$3.9
$4.8
Free cash flow1
$3.8
$25.2
$3.8
$23.9
$7.1
Operational
- Gold production in the first quarter totaled 30,681 ounces,
compared to 32,990 ounces in the prior period and 32,022 ounces in
the first quarter of 2020
- Relatively lower production during the quarter was driven by a
decrease in mill throughput from additional planned mill
maintenance as well as slightly lower average grade as the Company
developed ore headings and increased stope drilling capacity
- Jualin accounted for approximately 17% of Kensington’s first
quarter production, slightly lower than the prior period of roughly
19%, due to a focus on ore development
Financial
- Adjusted CAS1 increased 8% quarter-over-quarter to $989 per
ounce, largely driven by lower average grade as well as higher fuel
costs and additional planned mill maintenance
- Capital expenditures increased 24% quarter-over-quarter to $7.2
million, primarily due to the timing of payments related to
projects in the prior period
- Free cash flow1 in the first quarter totaled $3.8 million,
including cash outflow of $7.9 million associated with the
Company’s prepayment agreement at Kensington. Excluding the effect
of the prepayment, free cash flow1 totaled approximately $11.7
million in the first quarter
Exploration
- Exploration investment in the first quarter totaled
approximately $2.1 million ($1.1 million expensed and $1.0 million
capitalized), compared to $2.2 million ($0.8 million expensed and
$1.4 million capitalized) in the prior quarter
- Two underground core rigs were active during the quarter,
drilling from the Elmira development drift established in 2020. A
total of approximately 34,700 feet (10,575 meters) were drilled
during the period, including 15,900 feet (4,850 meters) of
expansion drilling and 18,800 feet (5,725 meters) of infill
drilling
- Infill drilling during the quarter was primarily focused on the
Elmira vein, while also occasionally testing the Johnson vein which
the Company considers a resource expansion target
- The two underground rigs are expected to remain active for most
of the year, continuing to target the Elmira and Johnson veins. The
Company plans to add an additional rig during the second half of
2021 to drill resource expansion targets from surface
Guidance
- Production in 2021 is expected to be 115,000 - 130,000 ounces
of gold
- CAS1 in 2021 are expected to be $1,010 - $1,110 per gold
ounce
- Capital expenditures are expected to be approximately $23 - $30
million
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Ore tons placed
1,114,043
1,047,647
1,315,542
1,401,237
946,449
Average gold grade (oz/t)
0.030
0.024
0.025
0.032
0.025
Gold ounces produced
19,035
19,286
33,440
24,789
15,541
Silver ounces produced (000’s)
26
33
42
25
15
Gold ounces sold
18,896
21,539
33,382
23,364
16,094
Silver ounces sold (000’s)
26
35
41
23
15
Average realized price per gold
ounce
$1,791
$1,835
$1,872
$1,715
$1,592
Metal sales
$34.5
$40.3
$63.5
$40.5
$25.9
Costs applicable to sales2
$18.7
$21.4
$27.9
$22.5
$17.8
Adjusted CAS per AuOz1
$952
$954
$804
$804
$1,090
Exploration expense
$0.1
$0.3
$0.5
$0.1
$—
Cash flow from operating
activities
$7.8
$14.1
$39.1
$19.1
$2.6
Sustaining capital expenditures
(excludes capital lease payments)
$0.4
$1.2
$0.5
$0.3
$0.4
Development capital
expenditures
$1.1
$—
$—
$—
$—
Total capital expenditures
$1.5
$1.2
$0.5
$0.3
$0.4
Free cash flow1
$6.3
$12.9
$38.6
$18.8
$2.2
Operational
- Gold production remained relatively consistent
quarter-over-quarter at 19,035 ounces, largely due to the timing of
ounces placed on the leach pads. Year-over-year gold production
increased 22%
- Notably, tons placed and average gold grade increased 6% and
25% quarter-over-quarter, respectively. Higher placement rates
reflect favorable weather conditions, better crusher maintenance
planning and enhanced operational strategies
Financial
- Adjusted CAS1 on a by-product basis remained relatively
consistent quarter-over-quarter at $952 per ounce
- First quarter capital expenditures totaled $1.5 million
compared to $1.2 million in the prior period, reflecting a ramp up
in infill drilling
- Free cash flow1 was $6.3 million in the first quarter compared
to $12.9 million in the fourth quarter of 2020, largely driven by
lower metal sales
Exploration
- Exploration investment in the first quarter totaled
approximately $1.2 million ($0.1 million expensed and $1.1 million
capitalized), compared to roughly $0.3 million (substantially all
expensed) in the prior period
- A total of approximately 38,600 feet (11,775 meters) were
drilled during the period using one reverse circulation rig,
focusing on infill targets at the Portland Ridge – Boston claim
group (located on the southern edge of the operation)
- Coeur is in the process of evaluating 2020 drill assays,
surface mapping and geochemistry results, and planning its next
steps regarding Richmond Hill. The Company has an exclusive option
agreement with two subsidiaries of Barrick Gold Corporation to
acquire the project that expires in September 2021
- Once infill drilling at Portland Ridge is completed, expected
around mid-year, Coeur plans to shift its focus to the Flossie
area, west of Portland Ridge, and the Juno area, located on the
north side of Wharf
Guidance
- Gold production in 2021 is expected to be 85,000 - 95,000
ounces
- CAS1 in 2021 are expected to be $960 - $1,060 per gold
ounce
- Capital expenditures are expected to be approximately $5 - $8
million
Silvertip, British Columbia
(Dollars in millions)
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Metal sales
$—
$—
$—
$—
$1.9
Costs applicable to sales2
$—
$—
$—
$—
$17.7
Exploration expense
$2.9
$5.1
$3.9
$2.9
$0.3
Cash flow from operating
activities
$(7.5)
$(8.2)
$(8.2)
$(14.9)
$(27.1)
Sustaining capital expenditures
(excludes capital lease payments)
$5.7
$(0.5)
$(1.8)
$1.9
$4.6
Development capital
expenditures
$4.7
$5.0
$3.9
$—
$—
Total capital expenditures
$10.4
$4.5
$2.1
$1.9
$4.6
Free cash flow1
$(17.9)
$(12.7)
$(10.3)
$(16.8)
$(31.7)
- Mining and processing activities were temporarily suspended at
Silvertip on February 19, 2020 (unrelated to COVID-19)
Operational
- Coeur continued advancing Silvertip’s revised 1,750 tonnes per
day flowsheet through a more comprehensive engineering and design
phase, with detailed design approaching 30% completion and
exploration results demonstrating the potential for mine life
extensions with continued drilling
- Technical work remains focused on (i) advancing engineering to
de-risk capital estimates, (ii) increasing confidence in the
expected concentrate qualities from all of the existing zones of
the ore body with confirmatory metallurgical testing, and (iii)
enhancing schedule certainty with respect to a potential
restart
- The Company plans to release an updated mine plan and economic
analysis for Silvertip at the end of the year, including additional
exploration results as well as information regarding the
anticipated benefits of the revised 1,750 tonnes per day flowsheet
which will be reflected in a technical report that is expected to
be filed in early 2022
Financial
- Coeur did not realize any temporary suspension costs related to
the ramp-down of active mining and processing activities during the
quarter as the Company began allocating these expenses to
Silvertip’s ongoing carrying costs
- Ongoing carrying costs in the first quarter were $6.9 million,
compared to $4.7 million in the fourth quarter of 2020. Temporary
suspension costs totaled $1.1 million in the prior period
- Capital expenditures during the first quarter totaled $10.4
million compared to $4.5 million in the prior period, reflecting
work related to the potential restart and expansion of the project
as well as the ramp up of infill drilling. Free cash flow1 for the
quarter totaled $(17.9) million
Exploration
- Exploration investment in the first quarter totaled
approximately $4.5 million ($2.9 million expensed and $1.6 million
capitalized), compared to roughly $5.1 million (substantially all
expensed) in the prior period
- The Company had up to six active core rigs during the quarter,
ramping up from three rigs at the end of 2020. A total of
approximately 80,600 feet (24,575 meters) were drilled during the
period, including 47,200 feet (14,375 meters) of expansion drilling
and 33,400 feet (10,200 meters) of infill drilling
- Infill and expansion drilling (both from surface and
underground) focused on the 65 Zone, Discovery East, Discovery
North and Camp Creek zones
- During the coming months, surface drilling is expected to
continue with three active rigs targeting the Camp Creek, Discovery
North and Discovery East zones
- Underground drilling is planned to ramp up to two rigs,
focusing on expansion and infill drilling in the 65 Zone as well as
the Central, Discovery South and Camp Creek zones
- The latest underground drill results suggest the 65 Zone has
high-grade mineralization that connects the Silver Creek zone with
the Discovery South zone, representing potential for significant
resource growth at Silvertip
Guidance
- 2021 capital expenditures are expected to total $35 - $45
million
Exploration
During the first quarter, the Company drilled roughly 250,500
feet (76,375 meters) at a total investment of approximately $14.9
million ($9.7 million expensed and $5.2 million capitalized),
compared to roughly 181,800 feet (55,400 meters) at a total
investment of approximately $14.5 million ($11.6 million expensed
and $2.9 million capitalized) in the prior period. The increase in
exploration activity was largely driven by a ramp up of drilling at
Silvertip and Crown as well as the continuation of expansion and
infill programs across the rest of the Company’s portfolio.
In addition to Coeur’s mine sites, up to five drill rigs were
active at the Crown exploration property in southern Nevada during
the first quarter. Up to four reverse circulation rigs drilled
expansion holes at Daisy, SNA and C-Horst, while one diamond core
rig was active at Secret Pass and C-Horst to better characterize
metallurgy and geologic domains. The Company drilled approximately
33,500 feet (10,225 meters) in the quarter, compared to
approximately 13,100 feet (4,000 meters) in the prior period.
For the remainder of 2021, Coeur plans to continue the same pace
of resource expansion drilling within its recently received
300-acre disturbance permit at Crown. The Company also expects to
receive an amended disturbance permit to begin expanding C-Horst to
the south. In parallel, exploration activities are scheduled to
begin in the second quarter at Sterling, focusing on infill
drilling at the main Sterling deposit and expansion drilling at the
Diamond Queen zone.
2021 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
100,000 - 110,000
6,500 - 7,750
Rochester
22,500 - 32,500
3,200 - 4,400
Kensington
115,000 - 130,000
—
Wharf
85,000 - 95,000
—
Total
322,500 - 367,500
9,700 - 12,150
2021 Costs Applicable to Sales Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$710 - $810
$11.00 - $12.00
Rochester (co-product)
$1,180 - $1,330
$15.00 - $17.00
Kensington
$1,010 - $1,110
—
Wharf (by-product)
$960 - $1,060
—
2021 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures,
Sustaining
$80 - $100
Capital Expenditures,
Development
$180 - $225
Exploration, Expensed
$46 - $51
Exploration, Capitalized
$17 - $21
General & Administrative
Expenses
$37 - $41
Note: The Company’s guidance figures assume $1,850/oz gold and
$24.00/oz silver as well as CAD of 1.27 and MXN of 19.50. Guidance
figures exclude the impact of any metal sales or foreign exchange
hedges.
Financial Results and Conference Call
Coeur will host a conference call to discuss its first quarter
2021 financial results on April 29, 2021 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, Michael “Mick”
Routledge, Senior Vice President and Chief Operating Officer, and
other members of management. A replay of the call will be available
through May 6, 2021.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
101 53 291
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 strategy, value, cash flow, capital
allocation and investment, returns, net asset values, exploration
and development efforts and plans, expectations regarding the
potential expansion and restart at Silvertip (including technical
report timing), expectations regarding the Rochester POA 11
expansion project, hedging strategies, anticipated production,
costs and expenses, COVID-19 mitigation efforts, 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 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 or higher treatment and refining charge 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 and, grade variability, any future
labor disputes or work stoppages (involving the Company and its
subsidiaries or third parties), 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 access or insolvency of any third-party refiner or
smelter to which Coeur markets its production, the potential
effects of the COVID-19 pandemic, including impacts to the
availability of our workforce, continued access to financing
sources, government orders that may require temporary suspension of
operations at one or more of our sites and effects on our suppliers
or the refiners and smelters to whom the Company markets its
production and on the communities where we operate, the effects of
environmental and other governmental regulations and government
shut-downs, 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. This does not constitute an offer of any securities for
sale.
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, including the
recently-filed Technical Report for Rochester, 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), operating cash
flow before changes in working capital 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, 2020 and our Form 10-Q for the quarter ended March 31,
2021.
Notes
1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash
flow, adjusted net income (loss), operating cash flow before
changes in working capital and adjusted costs applicable to sales
per ounce (gold and silver) or pound (lead and zinc) are non-GAAP
measures. Please see tables in the Appendix for the reconciliation
to U.S. GAAP. Free cash flow is defined as cash flow from operating
activities less capital expenditures. Please see table in Appendix
for the calculation of consolidated free cash flow.
2. Excludes amortization.
3. Includes capital leases. Net of debt issuance costs and
premium received.
Average Spot Prices
1Q 2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Average Gold Spot Price Per Ounce
$
1,794
$
1,874
$
1,908
$
1,711
$
1,583
Average Silver Spot Price Per Ounce
$
26.26
$
24.39
$
24.26
$
16.38
$
16.90
Average Zinc Spot Price Per Pound
$
1.25
$
1.19
$
1.06
$
0.89
$
0.96
Average Lead Spot Price Per Pound
$
0.91
$
0.86
$
0.85
$
0.76
$
0.84
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
March 31, 2021
December 31, 2020
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
154,066
$
92,794
Receivables
22,606
23,484
Inventory
53,591
51,210
Ore on leach pads
78,689
74,866
Prepaid expenses and other
27,274
27,254
336,226
269,608
NON-CURRENT ASSETS
Property, plant and equipment, net
248,237
230,139
Mining properties, net
739,559
716,790
Ore on leach pads
87,723
81,963
Restricted assets
9,266
9,492
Equity securities
8,209
12,943
Receivables
25,605
26,447
Other
60,590
56,595
TOTAL ASSETS
$
1,515,415
$
1,403,977
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
96,715
$
90,577
Accrued liabilities and other
62,682
119,158
Debt
21,404
22,074
Reclamation
2,299
2,299
183,100
234,108
NON-CURRENT LIABILITIES
Debt
390,721
253,427
Reclamation
139,112
136,975
Deferred tax liabilities
34,577
34,202
Other long-term liabilities
47,399
51,786
611,809
476,390
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 300,000,000 shares, 243,469,002 issued and outstanding
at March 31, 2021 and 243,751,283 at December 31, 2020
2,435
2,438
Additional paid-in capital
3,610,631
3,610,297
Accumulated other comprehensive income
(loss)
13,500
(11,136)
Accumulated deficit
(2,906,060)
(2,908,120)
720,506
693,479
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,515,415
$
1,403,977
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended March
31,
2021
2020
In thousands, except share
data
Revenue
$
202,117
$
173,167
COSTS AND EXPENSES
Costs applicable to sales(1)
108,147
118,917
Amortization
29,937
36,162
General and administrative
11,554
8,920
Exploration
9,666
6,386
Pre-development, reclamation, and
other
13,712
6,555
Total costs and expenses
173,016
176,940
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment
(9,173
)
—
Fair value adjustments, net
(3,799
)
(8,819
)
Interest expense, net of capitalized
interest
(4,910
)
(5,128
)
Other, net
3,627
1,881
Total other income (expense), net
(14,255
)
(12,066
)
Income (loss) before income and mining
taxes
14,846
(15,839
)
Income and mining tax (expense)
benefit
(12,786
)
3,939
NET INCOME (LOSS)
$
2,060
$
(11,900
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges, net of tax of $0 and $22
for the three months ended March 31, 2021 and 2020,
respectively.
27,357
206
Reclassification adjustments for realized
(gain) loss on cash flow hedges
(2,721
)
—
Other comprehensive income (loss)
24,636
206
COMPREHENSIVE INCOME (LOSS)
$
26,696
$
(11,694
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
0.01
$
(0.05
)
Diluted
$
0.01
$
(0.05
)
(1) Excludes amortization.
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended March
31,
2021
2020
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
2,060
$
(11,900
)
Adjustments:
Amortization
29,937
36,162
Accretion
2,905
2,847
Deferred taxes
124
(5,487
)
Loss on debt extinguishment
9,173
—
Fair value adjustments, net
3,799
8,819
Stock-based compensation
4,256
2,013
Gain on modification of right of use
lease
—
(4,051
)
Write-downs
—
10,381
Deferred revenue recognition
(8,346
)
(7,548
)
Other
(2,328
)
(1,092
)
Changes in operating assets and
liabilities:
Receivables
999
(813
)
Prepaid expenses and other current
assets
(655
)
(346
)
Inventory and ore on leach pads
(17,486
)
(21,925
)
Accounts payable and accrued
liabilities
(28,797
)
(15,051
)
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
(4,359
)
(7,991
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(59,424
)
(22,208
)
Proceeds from the sale of assets
4,588
4,506
Sale of investments
935
—
Other
(17
)
(17
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(53,918
)
(17,719
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of notes and bank borrowings, net
of issuance costs
367,493
50,000
Payments on debt, finance leases, and
associated costs
(243,967
)
(5,901
)
Silvertip contingent consideration
—
(18,750
)
Other
(3,925
)
(1,973
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
119,601
23,376
Effect of exchange rate changes on cash
and cash equivalents
(51
)
(626
)
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
61,273
(2,960
)
Cash, cash equivalents and restricted cash
at beginning of period
94,170
57,018
Cash, cash equivalents and restricted cash
at end of period
$
155,443
$
54,058
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
LTM 1Q 2021
1Q2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Net income (loss)
$
39,587
$
2,060
$
11,880
$
26,856
$
(1,209
)
$
(11,900
)
Interest expense, net of capitalized
interest
20,490
4,910
4,719
5,096
5,765
5,128
Income tax provision (benefit)
53,770
12,786
25,027
13,113
2,844
(3,939
)
Amortization
125,162
29,937
35,133
32,216
27,876
36,162
EBITDA
239,009
49,693
76,759
77,281
35,276
25,451
Fair value adjustments, net
(12,621
)
3,799
(4,110
)
(2,243
)
(10,067
)
8,819
Foreign exchange (gain) loss
2,942
773
1,581
599
(11
)
76
Asset retirement obligation accretion
11,812
2,905
3,031
2,968
2,908
2,847
Inventory adjustments and write-downs
1,241
572
105
(230
)
793
476
(Gain) loss on sale of assets and
securities
(1,195
)
(4,053
)
391
2,476
(9
)
(374
)
Loss on debt extinguishment
9,172
9,172
—
—
—
—
Silvertip inventory write-down
3,336
—
—
1,232
2,104
10,381
Silvertip temporary suspension costs
3,655
—
1,092
838
1,725
3,509
Silvertip lease modification
—
—
—
—
—
(4,051
)
Silvertip gain on contingent
consideration
—
—
—
—
—
(955
)
COVID-19 costs
18,288
3,005
5,138
4,037
6,108
272
Novation
3,819
—
—
3,819
—
—
Wharf inventory write-down
3,323
—
—
—
3,323
—
Adjusted EBITDA
$
282,781
$
65,866
$
83,987
$
90,777
$
42,150
$
46,451
Revenue
$
814,411
$
202,117
$
228,317
$
229,728
$
154,249
$
173,167
Adjusted EBITDA Margin
35
%
33
%
37
%
40
%
27
%
27
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
1Q2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Net income (loss)
$
2,060
$
11,880
$
26,856
$
(1,209
)
$
(11,900
)
Fair value adjustments, net
3,799
(4,110
)
(2,243
)
(10,067
)
8,819
Foreign exchange loss (gain)
(43
)
4,692
1,233
626
(6,620
)
(Gain) loss on sale of assets and
securities
(4,053
)
391
2,476
(9
)
(374
)
Loss on debt extinguishment
9,172
—
—
—
—
Silvertip inventory write-down
—
—
1,232
2,104
10,381
Silvertip temporary suspension costs
—
1,092
838
1,725
3,509
Silvertip lease modification
—
—
—
—
(4,051
)
Silvertip gain on contingent
consideration
—
—
—
—
(955
)
COVID-19 costs
3,005
5,138
4,037
6,108
272
Novation
—
—
3,819
—
—
Wharf inventory write-down
—
—
—
3,323
—
Adjusted net income (loss)
$
13,940
$
19,083
$
38,248
$
2,601
$
(919
)
Adjusted net income (loss) per share -
Basic
$
0.06
$
0.08
$
0.16
$
0.01
$
0.00
Adjusted net income (loss) per share -
Diluted
$
0.06
$
0.08
$
0.16
$
0.01
$
0.00
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
1Q2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Cash flow from operations
$
(4,359
)
$
67,289
$
79,464
$
9,947
$
(7,991
)
Capital expenditures
59,424
37,393
22,996
16,682
22,208
Free cash flow
$
(63,783
)
$
29,896
$
56,468
$
(6,735
)
$
(30,199
)
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
1Q2021
4Q 2020
3Q 2020
2Q 2020
1Q 2020
Cash provided by (used in) operating
activities
$
(4,359
)
$
67,289
$
79,464
$
9,947
$
(7,991
)
Changes in operating assets and
liabilities:
Receivables
(999
)
5,617
1,497
1,536
813
Prepaid expenses and other
655
1,435
1,921
(1,081
)
346
Inventories
17,486
1,491
3,066
8,056
21,925
Accounts payable and accrued
liabilities
28,797
(17,331
)
(28,570
)
(2,047
)
15,051
Operating cash flow before changes in
working capital
$
41,580
$
58,501
$
57,378
$
16,411
$
30,144
Reconciliation of Costs
Applicable to Sales
for Quarter Ended March 31
2021
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
43,047
$
27,610
$
44,839
$
21,207
$
1,086
$
137,789
Amortization
(9,059
)
(3,577
)
(13,445
)
(2,475
)
(1,086
)
(29,642
)
Costs applicable to sales
$
33,988
$
24,033
$
31,394
$
18,732
$
—
$
108,147
Inventory Adjustments
(57
)
(313
)
(151
)
(52
)
—
(573
)
By-product credit
—
—
—
(700
)
—
(700
)
Adjusted costs applicable to
sales
$
33,931
$
23,720
$
31,243
$
17,980
$
—
$
106,874
Metal Sales
Gold ounces
25,687
6,934
31,595
18,896
83,112
Silver ounces
1,637,695
771,354
—
26,455
—
2,435,504
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
38
%
100
%
100
%
Silver
53
%
62
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
621
$
1,300
$
989
$
952
Silver ($/oz)
$
10.98
$
19.07
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
48,672
$
36,828
$
42,486
$
24,300
$
—
$
152,286
Amortization
(12,516
)
(5,112
)
(13,179
)
(2,848
)
—
(33,655
)
Costs applicable to sales
$
36,156
$
31,716
$
29,307
$
21,452
$
—
$
118,631
Inventory Adjustments
(24
)
24
(56
)
(49
)
—
(105
)
By-product credit
—
—
—
(864
)
—
(864
)
Adjusted costs applicable to
sales
$
36,132
$
31,740
$
29,251
$
20,539
$
—
$
117,662
Metal Sales
Gold ounces
35,359
8,672
31,830
21,539
97,400
Silver ounces
1,766,714
912,335
35,794
—
2,714,843
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
53
%
42
%
100
%
100
%
Silver
47
%
58
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
542
$
1,537
$
919
$
954
Silver ($/oz)
$
9.61
$
20.18
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
46,163
$
22,382
$
43,053
$
31,887
$
1,185
$
144,670
Amortization
(11,912
)
(3,278
)
(11,523
)
(4,000
)
(1,185
)
(31,898
)
Costs applicable to sales
$
34,251
$
19,104
$
31,530
$
27,887
$
—
$
112,772
Inventory Adjustments
(100
)
517
(141
)
(46
)
—
230
By-product credit
—
—
—
(1,007
)
—
(1,007
)
Adjusted costs applicable to
sales
$
34,151
$
19,621
$
31,389
$
26,834
$
—
$
111,995
Metal Sales
Gold ounces
27,252
6,834
27,815
33,382
95,283
Silver ounces
1,765,371
785,887
40,521
—
2,591,779
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
48
%
40
%
100
%
100
%
Silver
52
%
60
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
602
$
1,148
$
1,128
$
804
Silver ($/oz)
$
10.06
$
14.98
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
26,095
$
21,348
$
43,235
$
25,653
$
1,231
$
117,562
Amortization
(7,270
)
(3,012
)
(12,853
)
(3,181
)
(1,231
)
(27,547
)
Costs applicable to sales
$
18,825
$
18,336
$
30,382
$
22,472
$
—
$
90,015
Inventory Adjustments
(106
)
(566
)
(139
)
(3,304
)
—
(4,115
)
By-product credit
—
—
—
(385
)
—
(385
)
Adjusted costs applicable to
sales
$
18,719
$
17,770
$
30,243
$
18,783
$
—
$
85,515
Metal Sales
Gold ounces
16,924
5,278
32,367
23,364
77,933
Silver ounces
874,642
723,679
22,707
—
1,621,028
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
62
%
44
%
100
%
100
%
Silver
38
%
56
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
686
$
1,481
$
934
$
804
Silver ($/oz)
$
8.13
$
13.75
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2020
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
49,149
$
19,860
$
42,429
$
20,267
$
23,002
$
154,707
Amortization
(13,175
)
(2,904
)
(11,922
)
(2,444
)
(5,345
)
(35,790
)
Costs applicable to sales
$
35,974
$
16,956
$
30,507
$
17,823
$
17,657
$
118,917
Inventory Adjustments
73
(422
)
(101
)
(25
)
(10,381
)
(10,856
)
By-product credit
—
—
—
(248
)
—
(248
)
Adjusted costs applicable to
sales
$
36,047
$
16,534
$
30,406
$
17,550
$
7,276
$
107,813
Metal Sales
Gold ounces
31,287
5,473
32,781
16,094
85,635
Silver ounces
1,894,789
632,237
14,768
158,984
2,700,778
Zinc pounds
3,203,446
3,203,446
Lead pounds
2,453,485
2,453,485
Revenue Split
Gold
56
%
45
%
100
%
100
%
Silver
44
%
55
%
26
%
Zinc
48
%
Lead
26
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
645
$
1,359
$
928
$
1,090
Silver ($/oz)
$
8.37
$
14.38
$
11.79
Zinc ($/lb)
$
1.12
Lead ($/lb)
$
0.74
Reconciliation of Costs
Applicable to Sales for 2021 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
196,255
$
105,557
$
188,349
$
99,746
Amortization
(39,208
)
(15,899
)
(59,756
)
(11,524
)
Costs applicable to sales
$
157,047
$
89,658
$
128,593
$
88,222
By-product credit
—
—
—
(2,255
)
Adjusted costs applicable to
sales
$
157,047
$
89,658
$
128,593
$
85,967
Metal Sales
Gold ounces
107,900
27,200
127,000
89,000
Silver ounces
7,128,000
3,807,000
93,000
Revenue Split
Gold
49%
36%
100%
100%
Silver
51%
64%
—
—
Adjusted costs applicable to
sales
Gold ($/oz)
$710 - $810
$1,180 - $1,330
$1,010 - $1,110
$960 - $1,060
Silver ($/oz)
$11.00 - $12.00
$15.00 - $17.00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210428005998/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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