Coeur Reports Fourth Quarter and Full-Year 2016 Results

CHICAGO--()--Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE:CDE) today reported 2016 financial results, posting net income of $55.4 million, or $0.34 per share, and cash flow from operating activities of $125.8 million, an increase of $12.3 million, or 11%, over 2015. Adjusted EBITDA1 for the year was $215.2 million, increasing nearly $90 million, or 68%, year-over-year. Over the course of 2016, the Company also meaningfully strengthened its balance sheet, ending the year with total outstanding debt of $210.9 million, a 57% reduction compared to a year ago, net debt1 of $48.7 million, and a year-end cash balance of $162.2 million.

In the fourth quarter, the Company generated a net loss of $8.3 million, or $0.03 per share, due mostly to lower metal prices and a one-time loss of $11.3 million related to the redemption of $190 million in principal of the Company's 7.875% Senior Notes due 2021. Quarterly cash flow from operating activities was $25.5 million and adjusted EBITDA1 was $44.0 million.

Highlights

  • As announced on January 5, 2017, Coeur achieved record production of 3.9 million ounces of silver and 102,500 ounces of gold, or 10.0 million silver equivalent ounces (AgEqOz)1, for the fourth quarter and 14.8 million ounces of silver and 358,170 ounces of gold, or 36.3 million AgEqOz1 for the full year
  • For Coeur's primary silver operations, CAS and adjusted CAS per average spot AgEqOz1 were $11.42 and $11.34, respectively, for the fourth quarter and $11.12 and $10.99 for the full year. The full-year figures represented 10% and 7% year-over-year declines, respectively
  • For Coeur's primary gold operations, fourth quarter CAS and adjusted CAS per gold equivalent ounce (AuEqOz)1 were $675 and $676, respectively. Relative to 2015, full-year CAS and adjusted CAS per AuEqOz1 declined 8% and 10%, respectively, to $705 and $688
  • Companywide AISC and adjusted AISC per average spot AgEqOz1 were $14.56 and $14.52, respectively, for the quarter and $14.27 and $14.09 for the full year. Full-year figures both represent year-over-year decreases of 2%. On a 60:1 equivalence basis, companywide AISC and adjusted AISC per AgEqOz1 were $16.08 and $15.88, respectively, both within the Company guidance range of $15.75 - $16.25
  • General and administrative expenses were $29.4 million, within Company guidance and representing a year-over-year decrease of 10%
  • Capital expenditures for the quarter were $29.9 million, driven by the ramp-up of Palmarejo underground operations at Guadalupe and Independencia, construction of the Stage IV leach pad expansion at Rochester, and continued development of the Jualin decline at Kensington. Full-year capital expenditures were $101.0 million, below Company guidance of $105 - $115 million
  • Total debt decreased $279.5 million, or 57%, year-over-year. Together with rising adjusted EBITDA1, the Company's total debt to last twelve month (LTM) adjusted EBITDA1 declined to 1.0x, down from 3.8x a year ago and 5.5x fifteen months ago
  • In 2016, Coeur monetized several non-core assets for a total consideration of $23.8 million, consistent with its strategy of redeploying capital to higher-return opportunities. This focus has continued into the new year, with the pending Joaquin Project sale announced in January 2017 for total consideration of $25 million plus a 2% NSR

"2016 marked a key inflection point for Coeur. Our silver equivalent production set a new Company record, operating and non-operating costs continued to decline, adjusted EBITDA increased materially, and we achieved strong earnings for the year. In addition, we delivered on our commitment to strengthen our balance sheet by reducing total debt by $280 million,” said Mitchell J. Krebs, Coeur's President and Chief Executive Officer.

Coeur has entered 2017 well-positioned to continue delivering high-quality growth through ongoing initiatives at our Palmarejo, Kensington, and Rochester operations. In addition, our exploration programs targeting near-mine additions to reserves and resources have been accelerated and are expected to further enhance and extend the economics of our existing operations. Our team has done a terrific job executing our strategic plan and striving to establish a higher standard in all areas of the business.”

             

Financial and Operating Highlights (Unaudited)

 
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Revenue $ 665.8 $ 159.2 $ 176.2 $ 182.0 $ 148.4 $ 646.1 $ 164.2
Costs Applicable to Sales $ 409.5 $ 102.0 $ 105.4 $ 100.5 $ 101.6 $ 479.7 $ 125.3
General and Administrative Expenses $ 29.4 $ 6.6 $ 7.1 $ 7.4 $ 8.3 $ 32.8 $ 8.8
Net Income (Loss) $ 55.4 $ (8.3 ) $ 69.6 $ 14.5 $ (20.4 ) $ (367.2 ) $ (303.0 )
Net Income (Loss) Per Share $ 0.34 $ (0.03 ) $ 0.42 $ 0.09 $ (0.14 ) $ (2.83 ) $ (2.28 )
Adjusted Net Income (Loss)1 $ 47.8 $ 2.8 $ 38.6 $ 16.9 $ (10.5 ) $ (103.6 ) $ (44.0 )
Adjusted Net Income (Loss)1 Per Share $ 0.29 $ 0.01 $ 0.23 $ 0.11 $ (0.06 ) $ (0.80 ) $ (0.31 )
Weighted Average Shares 163.5 178.6 161.0 157.9 150.2 129.6 145.0
EBITDA1 $ 161.2 $ 27.4 $ 50.9 $ 62.1 $ 20.8 $ (204.0 ) $ (272.9 )
Adjusted EBITDA1 $ 215.2 $ 44.0 $ 62.7 $ 72.0 $ 37.4 $ 127.9 $ 32.9
Cash Flow from Operating Activities $ 125.8 $ 25.5 $ 47.8 $ 45.9 $ 6.6 $ 113.5 $ 43.2
Capital Expenditures $ 101.0 $ 29.9 $ 25.6 $ 23.3 $ 22.2 $ 95.2 $ 30.0
Free Cash Flow1 $ (2.4 ) $ (4.5 ) $ 14.6 $ 12.2 $ (24.7 ) $ (20.9 ) $ 4.2
Cash, Equivalents & Short-Term Investments $ 162.2 $ 162.2 $ 222.5 $ 257.6 $ 173.4 $ 200.7 $ 200.7
Total Debt2 $ 210.9 $ 210.9 $ 401.7 $ 511.1 $ 511.1 $ 490.4 $ 490.4
Average Realized Price Per Ounce – Silver $ 17.18 $ 16.64 $ 19.61 $ 17.38 $ 15.16 $ 15.46 $ 14.27
Average Realized Price Per Ounce – Gold $ 1,230 $ 1,170 $ 1,317 $ 1,255 $ 1,178 $ 1,143 $ 1,093
Silver Ounces Produced 14.8 3.9 3.5 4.0 3.4 15.9 4.0
Gold Ounces Produced 358,170 102,500 84,871 92,727 78,072 327,908 91,551
Silver Equivalent Ounces Produced1 36.3 10.0 8.6 9.6 8.1 35.6 9.5
Silver Ounces Sold 14.3 3.4 3.4 4.0 3.5 16.5 4.4
Gold Ounces Sold 338,131 87,108 83,389 88,543 79,091 335,882 92,032
Silver Equivalent Ounces Sold1 34.6 8.6 8.4 9.3 8.3 36.7 9.9
Silver Equivalent Ounces Sold (Average Spot)1 39.0 9.6 9.1 10.6 9.8 41.4 11.3
Adjusted CAS per AgEqOz1 $ 11.73 $ 12.05 $ 12.10 $ 10.71 $ 12.05 $ 12.75 $ 12.65
Adjusted CAS per Average Spot AgEqOz1 $ 10.99 $ 11.34 $ 11.64 $ 9.90 $ 11.00 $ 11.87 $ 11.79
Adjusted CAS per AuEqOz1 $ 688 $ 676 $ 712 $ 644 $ 721 $ 764 $ 663
Adjusted AISC per AgEqOz1 $ 15.88 $ 16.13 $ 16.46 $ 14.82 $ 16.05 $ 16.16 $ 15.66
Adjusted AISC per Average Spot AgEqOz1 $ 14.09   $ 14.52 $ 15.23 $ 12.95 $ 13.51 $ 14.32 $ 13.73
 

Financial Results

During the quarter, the Company realized average silver and gold prices of $16.64 and $1,170 per ounce, representing quarter-over-quarter decreases of 15% and 11%, respectively. Importantly, the average realized gold price in the fourth quarter reflected the impact of the new gold stream agreement with Franco-Nevada, which provides for a payment of $800 per ounce delivered. For the full year, average realized silver and gold prices were $17.18 and $1,230, 11% and 8% higher, respectively, year-over-year.

Fourth quarter revenue was $159.2 million, a decrease of 10% quarter-over-quarter, driven by lower metal prices. Silver metal sales contributed 33% and gold 67%. For the full year, revenue increased 3% to $665.8 million, with silver metal sales contributing 37% and gold 63%.

Costs applicable to sales were $102.0 million for the fourth quarter. Full-year costs applicable to sales were $409.5 million, representing a year-over-year decrease of 15%, primarily driven by lower unit costs. Other contributing factors include increased operating efficiencies, lower input costs, and more favorable currency exchange rates.

Free cash flow1 for the quarter was negatively impacted by an increase in inventory at Palmarejo as well as the acceleration of cash interest paid in connection with the redemption of $190 million in principal of the Company's 7.875% Senior Notes due 2021. The increase in inventory at Palmarejo resulted from the timing of a quarter-end shipment and gold retained for purchase by Franco-Nevada in January 2017.

Fourth quarter expensed exploration was $5.3 million, bringing full-year expensed exploration to $12.9 million, representing a year-over-year increase of 11% due to expanded exploration drilling activities at Palmarejo, Kensington, and Rochester.

Net income in 2016 was $55.4 million, or $0.34 per share. This compares to a net loss of $367.2 million, or $2.83 per share in 2015, which included after-tax, non-cash impairment charges of $313.3 million. Adjusted net income1 in 2016 was $47.8 million, or $0.29 per share, a significant improvement over the adjusted net loss1 in 2015 of $103.6 million, or $0.80 per share.

Operations

Highlights of fourth quarter and full-year 2016 results for each of the Company's operating segments are provided below.

             

Palmarejo, Mexico

 
(Dollars in millions, except per ounce amounts) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Underground Operations:
Tons mined 1,047,000 293,706 253,681 283,971 215,642 701,662 189,383
Average silver grade (oz/t) 4.69 5.00 3.96 5.40 4.21 4.06 3.96
Average gold grade (oz/t) 0.08 0.09 0.08 0.08 0.07 0.08 0.06
Surface Operations:
Tons mined 36,906 1,695 35,211 888,432 102,018
Average silver grade (oz/t) 4.34 7.77 4.18 3.64 3.86
Average gold grade (oz/t) 0.04 0.07 0.04 0.03 0.03
Processing:
Total tons milled 1,078,888 287,569 274,644 270,142 246,533 1,616,668 301,274
Average recovery rate – Ag 88.4% 89.1% 85.5% 89.5% 89.1% 84.3% 95.4%
Average recovery rate – Au 86.5% 90.4% 77.7% 86.4% 92.1% 80.6% 88.8%
Silver ounces produced (000's) 4,442 1,269 933 1,307 933 5,149 1,126
Gold ounces produced 73,913 23,906 16,608 18,731 14,668 70,922 14,326
Silver equivalent ounces produced1 (000's) 8,877 2,703 1,930 2,431 1,813 9,404 1,985
Silver ounces sold (000's) 3,993 937 778 1,350 928 5,448 1,465
Gold ounces sold 59,081 15,558 11,410 19,214 12,899 73,218 18,719
Silver equivalent ounces sold1 (000's) 7,538 1,872 1,462 2,502 1,702 9,841 2,588
Silver equivalent ounces sold1 (average spot) (000's) 8,305 2,042 1,555 2,792 1,955 10,865 2,867
Metal sales $141.3 $32.5 $30.7 $48.3 $29.8 $169.1 $41.6
Costs applicable to sales $80.8 $20.9 $16.0 $22.9 $21.0 $138.5 $39.8
Adjusted CAS per AgEqOz1 $10.55 $11.01 $10.70 $9.02 $11.54 $13.03 $13.48
Adjusted CAS per average spot AgEqOz1 $9.57 $10.11 $10.05 $8.09 $10.03 $11.80 $12.15
Exploration expense $5.1 $2.4 $1.3 $0.6 $0.8 $4.5 $0.5
Cash flow from operating activities $26.7 $(1.7) $13.7 $11.3 $3.4 $52.7 $20.3
Sustaining capital expenditures $22.7 $3.9 $6.7 $5.5 $6.6 $5.5 $(1.4)
Development capital expenditures $13.1   $4.2   $3.3   $3.4   $2.2   $30.5   $7.0
Total capital expenditures $35.8 $8.1 $10.0 $8.9 $8.8 $36.0 $5.6
Free cash flow (before royalties) $(9.1) $(9.8) $3.7 $2.4 $(5.4) $16.7 $14.7
Gold production royalty payments $27.2 $— $7.6 $10.5 $9.1 $39.2 $9.0
Free cash flow1 $(36.3) $(9.8) $(3.9) $(8.1) $(14.5) $(22.5) $5.7
 
  • In 2016, legacy open pit and underground operations at Palmarejo were completed while underground operations at Guadalupe and Independencia steadily accelerated, reaching a mining rate of approximately 2,400 and 1,000 tons per day, respectively, as of year-end. The Company is targeting a combined mining rate of 4,500 tons per day by year-end 2017
  • Silver equivalent1 production increased 40% quarter-over-quarter to 2.7 million ounces as a result of higher mining rates and improved recovery rates. As expected, full-year silver equivalent1 production declined 6% to 8.9 million as the mine transitioned from legacy Palmarejo operations to higher-grade underground operations at Guadalupe and Independencia
  • Fourth quarter adjusted CAS per average spot AgEqOz1 was $10.11 while full-year adjusted CAS per average spot AgEqOz1 was $9.57, representing a year-over-year decrease of 19% as a result of higher grade production, lower input costs, and a more favorable exchange rate
  • Exploration expense increased in the second half of the year as drilling efforts to extend mine life accelerated
  • In July 2016, the 400,000 ounce minimum royalty obligation with Franco-Nevada under the original agreement was satisfied and the new, more favorable gold stream agreement became effective. The first sale under the new stream agreement occurred in the fourth quarter at a gold price of $800 per ounce
  • In 2017, Palmarejo is expected to produce 6.5 - 7.0 million ounces of silver and 110,000 - 120,000 ounces of gold, or 13.1 - 14.2 million silver equivalent1 ounces at CAS per AgEqOz1 of $10.00 - $10.50. Using a 69:1 spot silver to gold ratio, Palmarejo's 2017 CAS per spot AgEqOz1 is expected to be $9.25 - $9.75
  • Capital expenditures are expected to increase to $40 - $45 million in 2017 as a result of the ongoing transition to underground mining operations at Guadalupe and Independencia
             

Rochester, Nevada

 
(Dollars in millions, except per ounce amounts) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Ore tons placed 19,555,998 3,878,487 4,901,039 6,402,013 4,374,459 16,414,302 4,411,590
Average silver grade (oz/t) 0.57 0.57 0.54 0.54 0.64 0.63 0.60
Average gold grade (oz/t) 0.003 0.002 0.003 0.003 0.004 0.003 0.003
Silver ounces produced (000's) 4,564 1,277 1,161 1,197 929 4,631 1,107
Gold ounces produced 50,751 14,231 12,120 13,940 10,460 52,588 11,564
Silver equivalent ounces produced1 (000's) 7,609 2,131 1,888 2,033 1,557 7,786 1,800
Silver ounces sold (000's) 4,584 1,205 1,163 1,137 1,079 4,900 1,125
Gold ounces sold 49,320 12,988 11,751 12,909 11,672 57,963 11,587
Silver equivalent ounces sold1 (000's) 7,543 1,984 1,868 1,912 1,779 8,378 1,821
Silver equivalent ounces sold1 (average spot) (000's) 8,183 2,128 1,963 2,106 2,009 9,188 1,993
Metal sales $139.9 $36.2 $37.9 $35.8 $30.0 $143.9 $29.0
Costs applicable to sales $89.7 $23.7 $21.8 $21.7 $22.5 $104.0 $22.8
Adjusted CAS per AgEqOz1 $11.86 $11.99 $11.56 $11.30 $12.61 $12.36 $12.37
Adjusted CAS per average spot AgEqOz1 $10.93 $11.16 $11.02 $10.24 $11.17 $11.28 $11.32
Exploration expense $0.8 $0.4 $0.1 $0.2 $0.1 $1.3 $0.1
Cash flow from operating activities $28.4 $7.6 $9.5 $9.2 $2.1 $32.1 $0.4
Sustaining capital expenditures $7.8 $1.5 $1.2 $2.6 $2.5 $10.3 $5.3
Development capital expenditures $8.6   $4.3   $2.2   $1.3   $0.8   $15.0   $5.5
Total capital expenditures $16.4 $5.8 $3.4 $3.9 $3.3 $25.3 $10.8
Free cash flow1 $12.0 $1.8 $6.1 $5.3 $(1.2) $6.8 $(10.4)
 
  • Fourth quarter silver equivalent1 production increased 13% quarter-over-quarter to 2.1 million ounces due to improved Stage III leach pad performance resulting from strong ore placement rates throughout 2016. Full-year silver equivalent1 production was 7.6 million ounces
  • Tons placed of 19.6 million in 2016 was approximately 19% higher year-over-year and the highest since Rochester first began operating in 1986
  • Adjusted CAS per average spot AgEqOz1 increased slightly to $11.16 in the fourth quarter and decreased 3% to $10.93 for the full year
  • Full-year free cash flow1 was $12.0 million, representing an increase of $5.2 million, or 76%, over 2015. This was primarily driven by increased production, lower unit costs, and lower capital expenditures
  • Construction of the Stage IV leach pad expansion remains on-schedule and on-budget, with commissioning expected in the third quarter of 2017
  • Full-year 2017 production expected to be 4.2 - 4.7 million ounces of silver and 47,000 - 52,000 ounces of gold, or 7.0 - 7.8 million silver equivalent1 ounces at CAS per AgEqOz1 of $11.50 - $12.00. Using a 69:1 spot silver to gold ratio, Rochester's 2017 CAS per spot AgEqOz1 is expected to be $10.75 - $11.25
  • Capital expenditures are expected to increase to $30 - $35 million in 2017 due to continued construction of the Stage IV leach pad expansion
             

Kensington, Alaska

 
(Dollars in millions, except per ounce amounts) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons milled 620,209 163,410 140,322 157,117 159,360 660,464 159,666
Average gold grade (oz/t) 0.21 0.22 0.20 0.22 0.21 0.20 0.22
Average recovery rate 94.7% 94.4% 94.8% 94.1% 95.8% 94.9% 96.0%
Gold ounces produced 124,331 33,688 26,459 32,210 31,974 126,266 33,713
Gold ounces sold 121,688 28,864 30,998 30,178 31,648 131,553 29,989
Metal sales $146.6 $34.2 $40.2 $36.5 $35.7 $148.7 $31.7
Costs applicable to sales $96.7 $23.0 $26.7 $22.6 $24.4 $105.6 $23.7
Adjusted CAS per AuOz1 $790 $801 $859 $740 $761 $798 $777
Exploration expense $3.5 $1.3 $1.2 $1.0 $— $2.6 $0.3
Cash flow from operating activities $50.8 $11.4 $18.0 $7.7 $13.7 $37.7 $4.5
Sustaining capital expenditures $22.8 $8.9 $5.2 $4.3 $4.4 $14.8 $5.5
Development capital expenditures $14.0   $3.7   $3.4   $3.2   $3.7   $9.0   $4.0
Total capital expenditures $36.8 $12.6 $8.6 $7.5 $8.1 $23.8 $9.5
Free cash flow1 $14.0 $(1.2) $9.4 $0.2 $5.6 $13.9 $(5.0)
 
  • Fourth quarter gold production was the highest of the year, increasing 27% quarter-over-quarter to 33,688 ounces due to higher tons milled and higher grades. Full-year production was near the high end of the Company's guidance range at 124,331 ounces of gold
  • Fourth quarter adjusted CAS per gold ounce (AuOz)1 decreased 7% quarter-over-quarter to $801 due to higher grades. Full-year adjusted CAS per AuOz1 was within guidance at $790 and represented a 1% decrease year-over-year
  • Despite a year-over-year $13.0 million increase in capital expenditures, free cash flow1 remained flat in 2016 at $14.0 million
  • 2017 production is expected to be 120,000 - 125,000 ounces of gold at CAS per AuOz1 of $800 - $850
  • Capital expenditures are expected to increase to over $40 million in 2017 primarily as a result of ongoing development of the Jualin deposit, where production is expected to begin late in the year
             

Wharf, South Dakota

 
(Dollars in millions, except per ounce amounts) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Ore tons placed 4,268,105 1,178,803 1,199,008 915,631 974,663 3,600,279 1,147,130
Average silver grade (oz/t) 0.28 0.29 0.24 0.28 0.30 0.23 0.21
Average gold grade (oz/t) 0.032 0.027 0.033 0.037 0.031 0.030 0.032
Average plant recovery rate – Au 94.3% 98.9% 94.4% 88.5% 95.9% 89.5% 96.3%
Gold ounces produced 109,175 30,675 29,684 27,846 20,970 78,132 31,947
Silver ounces produced (000's) 105 32 25 35 13 56 18
Gold equivalent ounces produced1 110,927 31,202 30,106 28,433 21,186 79,061 32,231
Silver ounces sold (000's) 95 30 17 33 15 49 17
Gold ounces sold 108,042 29,698 29,230 26,242 22,872 73,148 31,737
Gold equivalent ounces sold1 109,620 30,204 29,508 26,786 23,122 73,965 32,014
Metal sales $136.7 $35.5 $39.3 $34.0 $27.9 $84.1 $35.7
Costs applicable to sales $66.4 $16.9 $19.7 $14.3 $15.5 $52.2 $17.8
Adjusted CAS per AuEqOz1 $575 $556 $559 $534 $667 $706 $556
Exploration expense $— $— $— $— $— $0.1 $0.1
Cash flow from operating activities $62.4 $15.4 $21.1 $16.2 $9.7 $32.0 $18.1
Sustaining capital expenditures $4.8 $1.3 $0.6 $1.5 $1.4 $3.2 $1.2
Development capital expenditures $—   $—   $—   $—   $—   $—   $—
Total capital expenditures $4.8 $1.3 $0.6 $1.5 $1.4 $3.2 $1.2
Free cash flow1 $57.6 $14.1 $20.5 $14.7 $8.3 $28.8 $16.9
 
  • Gold production in the fourth quarter was 30,675 ounces, the strongest quarter of 2016. The concurrent decline in average gold grade for the period was anticipated due to seasonal mine sequencing
  • Full-year production of 109,175 ounces of gold exceeded the high-end of Company guidance by over 9,000 ounces and represented an increase of 40% compared to 2015. This was largely the result of two additional months of production, as well as improved grades and plant recovery rates
  • Fourth quarter adjusted CAS per AuEqOz1 was relatively flat quarter-over-quarter at $556, while full-year adjusted CAS per AuEqOz1 beat guidance, decreasing 19% to $575, primarily due to lower mining and leaching costs
  • Full-year free cash flow1 of $57.6 million brings total free cash flow to $86.4 million since the acquisition of Wharf in February 2015 for $99 million
  • Production in 2017 is expected to be 85,000 - 90,000 ounces of gold at CAS per AuEqOz1 of $775 - $825, both of which reflect the anticipated completion of the higher-grade Golden Reward deposit by mid-year
             

San Bartolomé, Bolivia

 
(Dollars in millions, except per ounce amounts) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons milled 1,666,787 368,131 450,409 440,441 407,806 1,713,079 475,695
Average silver grade (oz/t) 3.69 3.96 3.43 3.79 3.64 3.75 3.84
Average recovery rate 88.8% 86.3% 88.7% 87.4% 93.1% 84.6% 84.9%
Silver ounces produced (000's) 5,469 1,259 1,370 1,458 1,382 5,436 1,550
Silver ounces sold (000's) 5,411 1,218 1,391 1,418 1,384 5,495 1,564
Metal sales $93.9 $19.9 $27.5 $25.2 $21.3 $84.7 $22.4
Costs applicable to sales $74.2 $17.3 $20.8 $18.6 $17.5 $75.8 $20.0
Adjusted CAS per AgOz1 $13.46 $13.97 $14.40 $12.97 $12.56 $13.63 $12.48
Exploration expense $— $— $— $— $— $0.1 $—
Cash flow from operating activities $29.4 $4.1 $8.6 $11.2 $5.5 $26.1 $10.0
Sustaining capital expenditures $6.6 $1.8 $3.0 $1.3 $0.5 $6.2 $2.5
Development capital expenditures $—   $—   $—   $—   $—   $—   $—
Total capital expenditures $6.6 $1.8 $3.0 $1.3 $0.5 $6.2 $2.5
Free cash flow1 $22.8 $2.3 $5.6 $9.9 $5.0 $19.9 $7.5
 
  • Fourth quarter silver production decreased 8% quarter-over-quarter to 1.3 million ounces due to an ongoing water shortage in Bolivia resulting from nationwide drought conditions
  • Full-year silver production was relatively constant at 5.5 million ounces
  • Fourth quarter and full-year adjusted CAS per silver ounce (AgOz)1 decreased 3% quarter-over-quarter and 1% year-over-year, respectively, to $13.97 and $13.46. Fourth quarter CAS per AgOz1 benefited from higher grade ore while the decrease in full-year CAS per AgOz1 was driven by lower consumables costs
  • Cash flow from operating activities and free cash flow1 for the full year were $29.4 million and $22.8 million, respectively, representing year-over-year increases of 13% and 15%
  • The Company's 2017 production guidance is 5.4 - 5.9 million silver ounces at CAS per AgOz1 of $14.00 - $14.50
             

Coeur Capital

 
(Dollars in millions, except per ounce amounts) 2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Tons milled 219,430 52,711 42,335 37,521 86,863 767,314 198,927
Average silver grade (oz/t) 2.48 2.09 2.28 1.66 3.17 1.87 2.05
Average recovery rate 45.6% 39.8% 58.2% 52.5% 41.9% 43.8% 42.1%
Silver ounces produced (000's) 248 44 56 33 115 629 171
Silver ounces sold (000's) 262 58 46 35 123 615 193
Metal sales $4.1 $0.9 $0.8 $0.5 $1.9 $8.7 $2.4
Royalty revenue $3.3 $(0.2) $(0.1) $1.8 $1.8 $6.9 $1.5
Costs applicable to sales (Endeavor silver stream) $1.7 $— $0.4 $0.3 $1.0 $3.5 $1.0
CAS per AgOz1 $6.56 $7.06 $8.10 $7.94 $5.35 $5.72 $5.50
Cash flow from operating activities $0.2 $2.2 $0.4 $(3.2) $0.8 $8.2 $0.8
Free cash flow1 $0.2 $2.2 $0.4 $(3.2) $0.8 $8.2 $0.8
 
  • Fourth quarter and full-year silver production from the Company's silver stream on the Endeavor mine in Australia decreased 21% quarter-over-quarter and 61% year-over-year, respectively, to 43,901 and 247,998 ounces, due to the operator's decision to reduce mining rates in response to lower lead and zinc prices
  • 2017 production is expected to be 300,000 - 400,000 ounces of silver due to an anticipated increase in production following recent improvements in zinc and lead prices
  • Royalty revenue decreased compared to 2015 primarily due to non-core asset sales during the year that totaled $23.8 million

Exploration

Fourth quarter expensed exploration was $5.3 million, bringing full-year expensed exploration to $12.9 million, an 11% year-over-year increase, due to expanded exploration drilling activities. Fourth quarter and full-year capitalized drilling were $2.5 million and $12.9 million, respectively. As of year-end, the Company had 17 drill rigs active across Palmarejo, Kensington, Rochester, La Preciosa, and two early-stage exploration properties and had completed over 400,896 feet (122,195 meters) of combined core and reverse circulation drilling throughout the year.

Highlights from Coeur’s expanded exploration program in 2016 include:

  • Increased both surface and underground drilling at Palmarejo, and specifically at the Guadalupe and Independencia mines and the Los Bancos and Nación-Dana deposits, with eight drill rigs active at year-end
  • Accelerated surface and underground exploration at Kensington with a focus on growth at Kensington Main as well as at Jualin, Raven, and several new veins discovered through surface sampling programs
  • Continued extension and infill of the East Rochester discovery as well as resource conversion drilling within the western portions of the main pit
  • Development of a new geologic model for Wharf, which is expected to set the stage for continued resource growth

In 2017, the expensed exploration budget has been nearly doubled to $23 - $25 million with a continued focus on resource growth. Another $11 - $13 million of capital is expected to be allocated to resource conversion. Priorities for 2017 include:

  • Increased step-out drilling at all of our mine sites, with the largest budget allocation to Palmarejo
  • Continued definition drilling at La Preciosa
  • Early-stage exploration in Mexico, USA, and Canada focused on developing a long-term pipeline of high-quality projects

Full-Year 2017 Outlook

Full-year 2017 guidance highlights are provided below. Production guidance remains unchanged from the guidance published January 5, 2017.

  • Expected silver equivalent1 production increase driven by ongoing acceleration of Palmarejo underground operations offset by lower expected production at Wharf
  • Higher expected CAS per AuEqOz1 at Wharf due to anticipated completion of mining of the higher-grade Golden Reward deposit, higher tons mined compared to 2016, and one-time plant maintenance expenses
  • Anticipated increase in capital expenditures driven by carryover from 2016, the Stage IV leach pad expansion at Rochester, and higher underground development levels at Kensington and Palmarejo
  • Higher exploration expense primarily due to step-out drilling at Palmarejo, definition drilling at La Preciosa, and early-stage exploration
     

2017 Production Outlook

 
(silver and silver equivalent ounces in thousands)   Silver   Gold   Silver Equivalent1
Palmarejo 6,500 - 7,000 110,000 - 120,000 13,100 - 14,200
Rochester 4,200 - 4,700 47,000 - 52,000 7,020 - 7,820
San Bartolomé 5,400 - 5,900 5,400 - 5,900
Endeavor 300 - 400 300 - 400
Kensington 120,000 - 125,000 7,200 - 7,500
Wharf     85,000 - 90,000   5,100 - 5,400
Total   16,400 - 18,000   362,000 - 387,000   38,120 - 41,220
 
     

2017 Cost Outlook

 
2017 Guidance Based On 2016 Results3 Based On
(dollars in millions, except per ounce amounts) 60:1   69:1 Spot   60:1   Average Spot
CAS per AgEqOz1 – Palmarejo $10.00 - $10.50 $9.25 - $9.75 $10.55 $9.57
CAS per AgEqOz1 – Rochester $11.50 - $12.00 $10.75 - $11.25 $11.86 $10.93
CAS per AgOz1 – San Bartolomé $14.00 - $14.50 $13.46
CAS per AuOz1 – Kensington $800 - $850 $790
CAS per AuEqOz1 – Wharf $775 - $825 $575
Capital Expenditures $115 - $135 $101
General and Administrative Expenses $28 - $32 $29
Exploration Expense $23 - $25 $13
AISC per AgEqOz1 $15.75 - $16.25 $14.50 - $15.00 $15.88 $14.09
 

Conference Call Information

Coeur will report its full operational and financial results for fourth quarter and full-year 2016 on February 8, 2017 after the New York Stock Exchange closes for trading. There will be a conference call on February 9, 2017 at 11:00 a.m. Eastern time.

   
Dial-In Numbers: (855) 560-2581 (US)
 
(855) 669-9657 (Canada)
 
(412) 542-4166 (International)
 
Conference ID: Coeur Mining
 

The conference call and presentation will also be webcast on the Company’s website www.coeur.com. Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Peter C. Mitchell, Senior Vice President and Chief Financial Officer, Frank L. Hanagarne, Jr., Senior Vice President and Chief Operating Officer, Hans Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through February 23, 2017.

   
Replay numbers: (877) 344-7529 (US)
 
(855) 669-9658 (Canada)
 
(412) 317-0088 (International)
 
Conference ID: 100 98 890
 

About Coeur

Coeur Mining is a well-diversified, growing precious metals producer with five precious metals mines in the Americas employing approximately 2,000 people. Coeur produces from its wholly owned operations: the Palmarejo silver-gold 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 San Bartolomé silver mine in Bolivia. The Company also has a non-operating interest in the Endeavor mine in Australia. In addition, the Company owns the La Preciosa project in Mexico, a silver-gold exploration stage project. Coeur conducts ongoing exploration activities in Alaska, Nevada, South Dakota, and Mexico.

Cautionary Statement

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding interest expense, production, costs, capital expenditures, expenses, mining rates, development activity at Palmarejo and Kensington, expansion at Rochester, transitioning to a lower-cost, high-quality profitable precious metals producer, cash flow, mine lives, growth, operations at Kensington and Wharf, drilling, resource growth and conversion, development of a pipeline of future projects, and exploration efforts. 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 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 whom 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, the political risks and uncertainties associated with recent developments in Bolivia, 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 report on Form 10-K. 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.

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 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, net debt, total debt to LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs. 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, net debt, total debt to LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs are 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, 2016.

Notes

  1. EBITDA, adjusted EBITDA, net debt, total debt to LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. For purposes of silver and gold equivalence, a 60:1 silver to gold ratio is assumed except where noted as average spot prices. Please see table below for average silver and gold spot prices during the period and the silver to gold ratio. Free cash flow is defined as cash flow from operating activities less capital expenditures and gold production royalty payments. Please see table in Appendix for the calculation of consolidated free cash flow.
  2. Includes capital leases. Net of debt issuance costs and premium received.
  3. 2016 results reflect adjusted CAS and AISC. Please see reconciliation tables in the Appendix for additional information.
             

Average Spot Prices

 
2016   4Q 2016   3Q 2016   2Q 2016   1Q 2016   2015   4Q 2015
Average Silver Spot Price Per Ounce $ 17.14 $ 17.19 $ 19.61 $ 16.78 $ 14.85 $ 15.68 $ 14.77
Average Gold Spot Price Per Ounce $ 1,251 $ 1,222 $ 1,335 $ 1,260 $ 1,183 $ 1,160 $ 1,106
Average Silver to Gold Spot Equivalence 73:1 71:1 68:1 75:1 80:1 74:1 75:1
 
 
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Loss)
 
Year ended December 31,
2016   2015   2014
In thousands, except share data
Revenue $ 665,777 $ 646,086 $ 635,742
COSTS AND EXPENSES
Costs applicable to sales(1) 409,541 479,654 477,945
Amortization 123,161 143,751 162,436
General and administrative 29,376 32,834 40,845
Exploration 12,930 11,647 21,740
Write-downs 4,446 313,337 1,472,721
Pre-development, reclamation, and other 17,219   17,793   26,037  
Total costs and expenses 596,673 999,016 2,201,724
OTHER INCOME (EXPENSE), NET
Gain (loss) on debt extinguishment (21,365 ) 15,916
Fair value adjustments, net (11,581 ) 5,202 3,618
Interest expense, net of capitalized interest (36,920 ) (45,703 ) (47,546 )
Other, net 1,875   (15,931 ) (5,218 )
Total other income (expense), net (67,991 ) (40,516 ) (49,146 )
Income (loss) before income and mining taxes 1,113 (393,446 ) (1,615,128 )
Income and mining tax (expense) benefit 54,239   26,263   428,254  
NET INCOME (LOSS) $ 55,352   $ (367,183 ) $ (1,186,874 )
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Unrealized gain (loss) on equity securities, net of tax of $(767) and $1,446 for the years ended December 31, 2016, and 2014, respectively 3,222 (4,154 ) (2,290 )
Reclassification adjustments for impairment of equity securities, net of tax of $(2,552) for the year ended December 31, 2014 703 2,346 4,042
Reclassification adjustments for realized (gain) loss on sale of equity securities, net of tax of $(219) for the year ended December 31, 2014 (2,691 ) 894   346  
Other comprehensive income (loss) 1,234   (914 ) 2,098  
COMPREHENSIVE INCOME (LOSS) $ 56,586   $ (368,097 ) $ (1,184,776 )
 
NET INCOME (LOSS) PER SHARE
Basic $ 0.35   $ (2.83 ) $ (11.59 )
 
Diluted $ 0.34   $ (2.83 ) $ (11.59 )
 
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
 
Year ended December 31,
2016   2015   2014
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 55,352 (367,183 ) (1,186,874 )
Adjustments:
Amortization 123,161 143,751 162,436
Accretion 10,248 14,149 16,246
Deferred income taxes (71,350 ) (40,838 ) (448,905 )
Loss on termination of revolving credit facility 3,035
(Gain) Loss on extinguishment of debt 21,365 (15,916 )
Fair value adjustments, net 11,581 (5,202 ) (3,618 )
Stock-based compensation 9,715 9,272 9,288
Impairment of equity securities 703 2,346 6,593
Write-downs 4,446 313,337 1,472,721
Other (1,067 ) 16,303 124
Changes in operating assets and liabilities:
Receivables 9,011 17,560 (11,611 )
Prepaid expenses and other current assets (826 ) (3,063 ) 5,635
Inventory and ore on leach pads (35,591 ) 19,573 12,971
Accounts payable and accrued liabilities (10,931 ) 9,453   15,507  
CASH PROVIDED BY OPERATING ACTIVITIES 125,817   113,542   53,548  
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (101,013 ) (95,193 ) (64,244 )
Acquisitions, net (1,417 ) (110,846 ) (21,329 )
Proceeds from the sale of assets 16,296 607 329
Purchase of investments (178 ) (1,880 ) (50,513 )
Sales and maturities of investments 7,077 605 54,344
Other (4,208 ) (4,586 ) (321 )
CASH USED IN INVESTING ACTIVITIES (83,443 ) (211,293 ) (81,734 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 269,556
Issuance of notes and bank borrowings 153,500 167,784
Payments on debt, capital leases, and associated costs (322,801 ) (84,715 ) (25,902 )
Gold production royalty payments (27,155 ) (39,235 ) (48,395 )
Other 172   (542 ) (509 )
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (80,228 ) 29,008   92,978  
Effect of exchange rate changes on cash and cash equivalents (678 ) (1,404 ) (621 )
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (38,532 ) (70,147 ) 64,171
Cash and cash equivalents at beginning of period 200,714   270,861   206,690  
Cash and cash equivalents at end of period $ 162,182   $ 200,714   $ 270,861  
   
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 
December 31, 2016 December 31, 2015
ASSETS In thousands, except share data
CURRENT ASSETS
Cash and cash equivalents $ 162,182 $ 200,714
Receivables 60,431 85,992
Inventory 106,026 81,711
Ore on leach pads 64,167 67,329
Prepaid expenses and other 17,981   10,942  
410,787 446,688
NON-CURRENT ASSETS
Property, plant and equipment, net 216,796 195,999
Mining properties, net 558,455 589,219
Ore on leach pads 67,231 44,582
Restricted assets 17,597 11,633
Equity securities 4,488 2,766
Receivables 30,951 24,768
Deferred tax assets 191 1,942
Other 12,413   14,892  
TOTAL ASSETS $ 1,318,909   $ 1,332,489  
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $ 53,335 $ 52,153
Accrued liabilities and other 42,743 50,532
Debt 12,039 10,431
Royalty obligations 4,995 24,893
Reclamation 3,522   2,071  
116,634 140,080
NON-CURRENT LIABILITIES
Debt 198,857 479,979
Royalty obligations 4,292 4,864
Reclamation 95,804 83,197
Deferred tax liabilities 74,798 147,132
Other long-term liabilities 60,037   55,761  
433,788 770,933
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 300,000,000 shares, issued and outstanding 180,933,287 at December 31, 2016 and 151,339,136 at December 31, 2015 1,809 1,513
Additional paid-in capital 3,314,590 3,024,461
Accumulated other comprehensive income (loss) (2,488 ) (3,722 )
Accumulated deficit (2,545,424 ) (2,600,776 )
768,487   421,476  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,318,909   $ 1,332,489  
             

Adjusted EBITDA Reconciliation

 
(Dollars in thousands except per share amounts) 2016 4Q 2016 3Q 2016 2Q 2016   1Q 2016   2015   4Q 2015
Net income (loss) $ 55,352 $ (8,306 ) $ 69,557 $ 14,497 $ (20,396 ) $ (367,183 ) $ (303,000 )
Interest expense, net of capitalized interest 36,920 6,857 8,068 10,875 11,120 45,703 11,758
Income tax provision (benefit) (54,239 ) (1,122 ) (54,455 ) (768 ) 2,106 (26,263 ) (17,811 )
Amortization 123,161   29,929   27,763     37,505     27,964     143,751     36,190  
EBITDA 161,194 27,358 50,933 62,109 20,794 (203,992 ) (272,863 )
Fair value adjustments, net 11,581 (1,654 ) 961 3,579 8,695 (5,202 ) (1,546 )
Impairment of equity securities 703 683 20 2,346 317
Foreign exchange loss 10,720 3,435 1,466 5,655 164 15,769 2,597
(Gain) loss on sale of assets (11,334 ) 339 (7,462 ) (3,126 ) (1,085 ) 352 (168 )
(Gain) loss on debt extinguishment 21,365 11,325 10,040 (15,916 ) (16,187 )
Corporate reorganization costs 647 133
Transaction-related costs 1,199 1 26 792 380 2,112 99
Asset retirement obligation accretion 8,369 2,147 2,096 2,066 2,060 8,191 2,288
Inventory adjustments and write-downs 6,917 389 4,665 946 1,944 10,207 4,901
Write-downs 4,446             4,446     313,337     313,337  
Adjusted EBITDA $ 215,160   $ 44,023   $ 62,725     $ 72,041     $ 37,398     $ 127,851     $ 32,908  
             

Adjusted Net Income (Loss) Reconciliation

 
(Dollars in thousands except per share amounts) 2016 4Q 2016 3Q 2016 2Q 2016 1Q 2016 2015 4Q 2015
Net income (loss) $ 55,352 $ (8,306 ) $ 69,557 $ 14,497 $ (20,396 ) $ (367,183 ) $ (303,000 )
Fair value adjustments, net 11,581 (1,654 ) 961 3,579 8,695 (5,202 ) (1,546 )
Impairment of equity securities 703 683 20 2,346 317
Write-downs 4,446 4,446 313,337 313,337
Inventory write-downs 3,689 3,689
(Gain) loss on sale of assets (11,334 ) 339 (7,462 ) (3,126 ) (1,085 ) 352 (168 )
(Gain) loss on debt extinguishments 21,365 11,325 10,040 (15,916 ) (16,187 )
Corporate reorganization costs 647 133
Transaction-related costs 1,199 1 26 792 380 2,112 99
Deferred tax on reorganization (40,767 ) (40,767 )
Foreign exchange (gain) loss (1,034 ) 351 2,549 (2,810 ) (1,124 ) 1,599 753
Tax effect of adjustments 2,583     (38 ) $ 3,996   $ (1,375 ) (35,734 ) $ (37,727 )
Adjusted net income (loss) $ 47,783   $ 2,739   $ 38,555   $ 16,948   $ (10,459 ) $ (103,642 ) $ (43,989 )
 
Adjusted net income (loss) per share - Basic $ 0.30 $ 0.01 $ 0.24 $ 0.11 $ (0.06 ) $ (0.80 ) $ (0.31 )
Adjusted net income (loss) per share - Diluted $ 0.29 $ 0.01 $ 0.23 $ 0.11 $ (0.06 ) $ (0.80 ) $ (0.31 )
     

Consolidated Debt Reconciliation

 
(Dollars in thousands) 2016 2015 LTM 3Q 2015
Cash and cash equivalents $ 162,182 $ 200,714 $ 205,708
Total debt 210,896 490,410 545,986
Net debt 48,714 289,696 340,278
LTM adjusted EBITDA 215,160 127,851 99,713
Total debt / LTM adjusted EBITDA 1.0 x 3.8 x 5.5x
Net debt / LTM adjusted EBITDA 0.2 x 2.3 x 3.4x
             

Consolidated Free Cash Flow Reconciliation

 
(Dollars in thousands) 2016 4Q 2016 3Q 2016 2Q 2016 1Q 2016 2015 4Q 2015
Cash flow from operating activities $ 125,817 $ 25,449 $ 47,812 $ 45,939 $ 6,617 $ 113,542 $ 43,217
Capital expenditures (101,013 ) (29,926 ) (25,627 ) (23,288 ) (22,172 ) (95,193 ) (30,035 )
Gold production royalty payments (27,155 )   (7,563 ) (10,461 ) (9,131 ) (39,235 ) (8,954 )
Free cash flow (2,351 ) (4,477 ) 14,622   12,190   (24,686 ) (20,886 ) 4,228  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Year Ended December 31, 2016
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 117,419   $ 111,564   $ 80,799   $ 2,363   $ 312,145 $ 131,518   $ 87,000   $ 218,518 $ 530,663
Amortization 36,599   21,838   6,633   644   65,714   34,787   20,621   55,408   121,122  
Costs applicable to sales $ 80,820 $ 89,726 $ 74,166 $ 1,719 $ 246,431 $ 96,731 $ 66,379 $ 163,110 $ 409,541
Silver equivalent ounces sold 7,538,311 7,542,740 5,411,057 262,078 20,754,186 34,632,666
Gold equivalent ounces sold           121,688   109,620   231,308    
Costs applicable to sales per ounce $ 10.72 $ 11.90 $ 13.71 $ 6.56 $ 11.87 $ 795 $ 606 $ 705 $ 11.83
Inventory adjustments (0.17 ) (0.04 ) (0.25 )   (0.14 ) (5 ) (31 ) (17 ) (0.20 )
Adjusted costs applicable to sales per ounce $ 10.55 $ 11.86 $ 13.46 $ 6.56 $ 11.73   $ 790 $ 575 $ 688 $ 11.63  
 
Costs applicable to sales per average spot ounce $ 9.73 $ 10.97 $ 11.12 $ 10.50
Inventory adjustments (0.16 ) (0.04 ) (0.13 ) (0.18 )
Adjusted costs applicable to sales per average spot ounce $ 9.57 $ 10.93 $ 10.99   $ 10.32  
 
Costs applicable to sales $ 409,541
Treatment and refining costs 4,307
Sustaining capital(1) 77,841
General and administrative 29,376
Exploration 12,930
Reclamation 15,504
Project/pre-development costs 7,481  
All-in sustaining costs $ 556,980
Silver equivalent ounces sold 20,754,186
Kensington and Wharf silver equivalent ounces sold 13,878,480  
Consolidated silver equivalent ounces sold 34,632,666  
All-in sustaining costs per silver equivalent ounce $ 16.08  
Inventory adjustments $ (0.20 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 15.88  
 
All-in sustaining costs per average spot silver equivalent ounce $ 14.27  
Inventory adjustments $ (0.18 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 14.09  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended December 31, 2016
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 29,667   $ 29,581   $ 18,514   $ 557   $ 78,319 $ 31,577 $ 21,861 $ 53,438 $ 131,757
Amortization 8,784   5,844   1,303   148   16,079   8,584   4,982   13,566   29,645  
Costs applicable to sales $ 20,883 $ 23,737 $ 17,211 $ 409 $ 62,240 $ 22,993 $ 16,879 $ 39,872 $ 102,112
Silver equivalent ounces sold 1,871,178 1,983,393 1,217,659 57,903 5,130,133 8,674,273
Gold equivalent ounces sold           28,864   30,205   59,069    
Costs applicable to sales per ounce $ 11.16 $ 11.97 $ 14.13 $ 7.06 $ 12.13 $ 797 $ 559 $ 675 $ 11.77
Inventory adjustments (0.15 ) 0.02   (0.16 )   (0.08 ) 4   (3 ) 1   (0.04 )
Adjusted costs applicable to sales per ounce $ 11.01 $ 11.99 $ 13.97 $ 7.06 $ 12.05   $ 801 $ 556 $ 676 $ 11.73  
 
Costs applicable to sales per average spot ounce $ 10.24 $ 11.14 $ 11.42 $ 10.59
Inventory adjustments (0.13 ) 0.02   (0.08 ) (0.04 )
Adjusted costs applicable to sales per average spot ounce $ 10.11 $ 11.16 $ 11.34   $ 10.55  
 
Costs applicable to sales $ 102,112
Treatment and refining costs 1,261
Sustaining capital 19,850
General and administrative 6,587
Exploration 5,261
Reclamation 3,537
Project/pre-development costs 1,693  
All-in sustaining costs $ 140,301
Silver equivalent ounces sold 5,130,133
Kensington and Wharf silver equivalent ounces sold 3,544,140  
Consolidated silver equivalent ounces sold 8,674,273  
All-in sustaining costs per silver equivalent ounce $ 16.17  
Inventory adjustments $ (0.04 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 16.13  
 
All-in sustaining costs per average spot silver equivalent ounce $ 14.56  
Inventory adjustments $ (0.04 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 14.52  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended September 30, 2016
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 21,794   $ 27,027   $ 22,536   $ 486   $ 71,843 $ 34,755 $ 26,158 $ 60,913 $ 132,756
Amortization 5,761   5,244   1,723   113   12,841   8,046   6,461   14,507   27,348  
Costs applicable to sales $ 16,033 $ 21,783 $ 20,813 $ 373 $ 59,002 $ 26,709 $ 19,697 $ 46,406 $ 105,408
Silver equivalent ounces sold 1,462,401 1,868,085 1,390,552 46,069 4,767,107 8,397,467
Gold equivalent ounces sold           30,998   29,508   60,506    
Costs applicable to sales per ounce $ 10.96 $ 11.66 $ 14.97 $ 8.10 $ 12.38 $ 862 $ 668 $ 767 $ 12.55
Inventory adjustments (0.26 ) (0.10 ) (0.57 )   (0.28 ) (3 ) (109 ) (55 ) (0.56 )
Adjusted costs applicable to sales per ounce $ 10.70 $ 11.56 $ 14.40 $ 8.10 $ 12.10   $ 859 $ 559 $ 712 $ 11.99  
 
Costs applicable to sales per average spot ounce $ 10.29 $ 11.11 $ 11.91 $ 11.62
Inventory adjustments (0.24 ) (0.09 ) (0.27 ) (0.52 )
Adjusted costs applicable to sales per average spot ounce $ 10.05 $ 11.02 $ 11.64   $ 11.10  
 
Costs applicable to sales $ 105,408
Treatment and refining costs 761
Sustaining capital 19,762
General and administrative 7,113
Exploration 3,706
Reclamation 4,036
Project/pre-development costs 2,133  
All-in sustaining costs $ 142,919
Silver equivalent ounces sold 4,767,107
Kensington and Wharf silver equivalent ounces sold 3,630,360  
Consolidated silver equivalent ounces sold 8,397,467  
All-in sustaining costs per silver equivalent ounce $ 17.02  
Inventory adjustments $ (0.56 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 16.46  
 
All-in sustaining costs per average spot silver equivalent ounce $ 15.75  
Inventory adjustments $ (0.52 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 15.23  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended June 30, 2016
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 37,630   $ 27,158   $ 20,498   $ 365   $ 85,651 $ 32,419 $ 19,470 $ 51,889 $ 137,540
Amortization 14,765   5,437   1,853   84   22,139   9,808   5,128   14,936   37,075  
Costs applicable to sales $ 22,865 $ 21,721 $ 18,645 $ 281 $ 63,512 $ 22,611 $ 14,342 $ 36,953 $ 100,465
Silver equivalent ounces sold 2,502,442 1,911,885 1,418,455 35,411 5,868,193 9,286,033
Gold equivalent ounces sold           30,178   26,786   56,964    
Costs applicable to sales per ounce $ 9.14 $ 11.36 $ 13.14 $ 7.94 $ 10.82 $ 749 $ 535 $ 649 $ 10.82
Inventory adjustments (0.12 ) (0.06 ) (0.17 )   (0.11 ) (9 ) (1 ) (5 ) (0.10 )
Adjusted costs applicable to sales per ounce $ 9.02 $ 11.30 $ 12.97 $ 7.94 $ 10.71   $ 740 $ 534 $ 644 $ 10.72  
 
Costs applicable to sales per average spot ounce $ 8.20 $ 10.30 $ 10.00 $ 9.45
Inventory adjustments (0.11 ) (0.06 ) (0.10 ) (0.09 )
Adjusted costs applicable to sales per average spot ounce $ 8.09 $ 10.24 $ 9.90   $ 9.36  
 
Costs applicable to sales $ 100,465
Treatment and refining costs 1,128
Sustaining capital 21,019
General and administrative 7,400
Exploration 2,233
Reclamation 4,170
Project/pre-development costs 2,098  
All-in sustaining costs $ 138,513
Silver equivalent ounces sold 5,868,193
Kensington and Wharf silver equivalent ounces sold 3,417,840  
Consolidated silver equivalent ounces sold 9,286,033  
All-in sustaining costs per silver equivalent ounce $ 14.92  
Inventory adjustments $ (0.10 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 14.82  
 
All-in sustaining costs per average spot silver equivalent ounce $ 13.04  
Inventory adjustments $ (0.09 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 12.95  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended March 31, 2016
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 28,327   $ 27,798   $ 19,251   $ 955   $ 76,331 $ 32,767 $ 19,512 $ 52,279 $ 128,610
Amortization 7,289   5,313   1,754   299   14,655   8,349   4,051   12,400   27,055  
Costs applicable to sales $ 21,038 $ 22,485 $ 17,497 $ 656 $ 61,676 $ 24,418 $ 15,461 $ 39,879 $ 101,555
Silver equivalent ounces sold 1,702,290 1,779,377 1,384,391 122,694 4,988,752 8,274,952
Gold equivalent ounces sold           31,648   23,122   54,770    
Costs applicable to sales per ounce $ 12.36 $ 12.64 $ 12.64 $ 5.35 $ 12.36 $ 772 $ 669 $ 728 $ 12.27
Inventory adjustments (0.82 ) (0.03 ) (0.08 )   (0.31 ) (11 ) (2 ) (7 ) (0.23 )
Adjusted costs applicable to sales per ounce $ 11.54 $ 12.61 $ 12.56 $ 5.35 $ 12.05   $ 761 $ 667 $ 721 $ 12.04  
 
Costs applicable to sales per average spot ounce $ 10.74 $ 11.20 $ 11.28 $ 10.34
Inventory adjustments (0.71 ) (0.03 ) (0.28 ) (0.20 )
Adjusted costs applicable to sales per average spot ounce $ 10.03 $ 11.17 $ 11.00   $ 10.14  
 
Costs applicable to sales $ 101,555
Treatment and refining costs 1,158
Sustaining capital 16,710
General and administrative 8,276
Exploration 1,731
Reclamation 3,759
Project/pre-development costs 1,558  
All-in sustaining costs $ 134,747
Silver equivalent ounces sold 4,988,752
Kensington and Wharf silver equivalent ounces sold 3,286,200  
Consolidated silver equivalent ounces sold 8,274,952  
All-in sustaining costs per silver equivalent ounce $ 16.28  
Inventory adjustments $ (0.23 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 16.05  
 
All-in sustaining costs per average spot silver equivalent ounce $ 13.71  
Inventory adjustments $ (0.20 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 13.51  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Year Ended December 31, 2015
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 170,899   $ 127,900   $ 93,625   $ 9,059   $ 401,483 $ 147,880 $ 68,575 $ 216,455 $ 617,938
Amortization 32,423   23,906   17,798   5,539   79,666   42,240   16,378   58,618   138,284  
Costs applicable to sales $ 138,476 $ 103,994 $ 75,827 $ 3,520 $ 321,817 $ 105,640 $ 52,197 $ 157,837 $ 479,654
Silver equivalent ounces sold 9,840,705 8,377,823 5,495,369 615,022 24,328,919 36,659,759
Gold equivalent ounces sold           131,553   73,961   205,514    
Costs applicable to sales per ounce $ 14.07 $ 12.41 $ 13.80 $ 5.72 $ 13.23 $ 803 $ 706 $ 768 $ 13.08
Inventory adjustments (1.04 ) (0.05 ) (0.17 )   (0.48 ) (5 )   (4 ) (0.34 )
Adjusted costs applicable to sales per ounce $ 13.03 $ 12.36 $ 13.63 $ 5.72 $ 12.75   $ 798 $ 706 $ 764 $ 12.74  
 
Costs applicable to sales per average spot ounce $ 12.75 $ 11.32 $ 12.31 $ 11.60
Inventory adjustments (0.95 ) (0.04 ) (0.44 ) (0.30 )
Adjusted costs applicable to sales per average spot ounce $ 11.80 $ 11.28 $ 11.87   $ 11.30  
 
Costs applicable to sales $ 479,654
Treatment and refining costs 4,801
Sustaining capital 53,362
General and administrative 32,834
Exploration 11,647
Reclamation 16,769
Project/pre-development costs 5,674  
All-in sustaining costs $ 604,741
Silver equivalent ounces sold 24,328,919
Kensington and Wharf silver equivalent ounces sold 12,330,840  
Consolidated silver equivalent ounces sold 36,659,759  
All-in sustaining costs per silver equivalent ounce $ 16.50  
Inventory adjustments $ (0.34 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 16.16  
 
All-in sustaining costs per average spot silver equivalent ounce $ 14.62  
Inventory adjustments $ (0.30 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 14.32  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended December 31, 2015
 
Silver Gold Total
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Kensington   Wharf   Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 47,207   $ 27,716   $ 24,372   $ 2,579   $ 101,874 $ 33,298 $ 25,033 $ 58,331 $ 160,205
Amortization 7,426   4,944   4,311   1,519   18,200   9,503   7,246   16,749   34,949  
Costs applicable to sales $ 39,781 $ 22,772 $ 20,061 $ 1,060 $ 83,674 $ 23,795 $ 17,787 $ 41,582 $ 125,256
Silver equivalent ounces sold 2,588,185 1,820,471 1,564,155 192,768 6,165,579 9,885,699
Gold equivalent ounces sold           29,988   32,014   62,002    
Costs applicable to sales per ounce $ 15.37 $ 12.51 $ 12.83 $ 5.50 $ 13.57 $ 793 $ 556 $ 671 $ 12.67
Inventory adjustments (1.89 ) (0.14 ) (0.35 )   (0.92 ) (16 )   (8 ) (0.62 )
Adjusted costs applicable to sales per ounce $ 13.48 $ 12.37 $ 12.48 $ 5.50 $ 12.65   $ 777 $ 556 $ 663 $ 12.05  
 
Costs applicable to sales per average spot ounce $ 13.88 $ 11.44 $ 12.66 $ 11.14
Inventory adjustments (1.73 ) (0.12 ) (0.87 ) (0.57 )
Adjusted costs applicable to sales per average spot ounce $ 12.15 $ 11.32 $ 11.79   $ 10.57  
 
Costs applicable to sales $ 125,256
Treatment and refining costs 964
Sustaining capital 16,567
General and administrative 8,855
Exploration 1,689
Reclamation 4,963
Project/pre-development costs 2,691  
All-in sustaining costs $ 160,985
Silver equivalent ounces sold 6,165,579
Kensington and Wharf silver equivalent ounces sold 3,720,120  
Consolidated silver equivalent ounces sold 9,885,699  
All-in sustaining costs per silver equivalent ounce $ 16.28  
Inventory adjustments $ (0.62 )
Adjusted all-in sustaining costs per silver equivalent ounce $ 15.66  
 
All-in sustaining costs per average spot silver equivalent ounce $ 14.30  
Inventory adjustments $ (0.57 )
Adjusted all-in sustaining costs per average spot silver equivalent ounce $ 13.73  
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for 2017 Guidance
 
Silver   Gold
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Silver   Kensington   Wharf   Total Gold   Total Combined
Costs applicable to sales, including amortization (U.S. GAAP) $ 211,000   $ 108,380   $ 102,000   $ 3,750   $ 425,130 $ 130,500   $ 83,800   $ 214,300 $ 639,430
Amortization 69,200     19,860     18,500         107,560     29,100     11,500     40,600     148,160
Costs applicable to sales $ 141,800 $ 88,520 $ 83,500 $ 3,750 $ 317,570 $ 101,400 $ 72,300 $ 173,700 $ 491,270
Silver equivalent ounces sold 14,000,000 7,680,000 5,900,000 380,000 27,960,000 40,800,000
Gold equivalent ounces sold                     124,000     90,000     214,000      
Costs applicable to sales per ounce guidance $10.00 - $10.50 $11.50 - $12.00 $14.00 - $14.50 $800 - $850 $775 - $825
 
 
Costs applicable to sales $ 491,270
Treatment and refining costs 4,300
Sustaining capital, including capital lease payments 88,000
General and administrative 30,000
Exploration 24,000
Reclamation 14,000
Project/pre-development costs 5,700
All-in sustaining costs $ 657,270
Silver equivalent ounces sold 27,960,000
Kensington and Wharf silver equivalent ounces sold 12,840,000
Consolidated silver equivalent ounces sold 40,800,000
All-in sustaining costs per silver equivalent ounce guidance $15.75 - $16.25
     
Reconciliation of All-in Sustaining Costs per 69:1 Spot Silver Equivalent Ounce
for 2017 Guidance
 
Silver   Gold
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Silver   Kensington   Wharf   Total Gold   Total Combined
Costs applicable to sales, including amortization (U.S. GAAP) $ 211,000   $ 108,380   $ 102,000   $ 3,750   $ 425,130 $ 130,500   $ 83,800   $ 214,300 $ 639,430
Amortization 69,200     19,860     18,500         107,560     29,100     11,500     40,600     148,160
Costs applicable to sales $ 141,800 $ 88,520 $ 83,500 $ 3,750 $ 317,570 $ 101,400 $ 72,300 $ 173,700 $ 491,270
Silver equivalent ounces sold 15,000,000 8,110,000 5,900,000 380,000 29,390,000 44,156,000
Gold equivalent ounces sold                     124,000     90,000     214,000      
Costs applicable to sales per ounce guidance $9.25 - $9.75 $10.75 - $11.25 $14.00 - $14.50 $800 - $850 $775 - $825
 
 
Costs applicable to sales $ 491,270
Treatment and refining costs 4,300
Sustaining capital, including capital lease payments 88,000
General and administrative 30,000
Exploration 24,000
Reclamation 14,000
Project/pre-development costs 5,700
All-in sustaining costs $ 657,270
Silver equivalent ounces sold 29,390,000
Kensington and Wharf silver equivalent ounces sold 14,766,000
Consolidated silver equivalent ounces sold 44,156,000
All-in sustaining costs per silver equivalent ounce guidance $14.50 - $15.00
     
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for 2016 Guidance
 
Silver   Gold
In thousands except per ounce amounts Palmarejo   Rochester   San Bartolomé   Endeavor   Total Silver   Kensington   Wharf   Total Gold   Total Combined
Costs applicable to sales, including amortization (U.S. GAAP) $ 130,000   $ 120,000   $ 87,000   $ 2,500   $ 339,500 $ 137,000   $ 82,000   $ 219,000 $ 558,500
Amortization 40,000     28,000     7,000     1,000     76,000     37,000     20,000     57,000     133,000
Costs applicable to sales $ 90,000 $ 92,000 $ 80,000 $ 1,500 $ 263,500 $ 100,000 $ 62,000 $ 162,000 $ 425,500
Silver equivalent ounces sold 9,105,000 8,430,000 5,700,000 220,000 23,455,000 36,955,000
Gold equivalent ounces sold                     125,000     100,000     225,000      
Costs applicable to sales per ounce guidance $9.75-$10.25 $10.40-$11.35 $13.50-$14.25 $775-$825 $600-$650
 
 
Costs applicable to sales $ 425,500
Treatment and refining costs 4,500
Sustaining capital, including capital lease payments 75,000
General and administrative 30,000
Exploration 15,000
Reclamation 16,000
Project/pre-development costs 5,000
All-in sustaining costs $ 571,000
Silver equivalent ounces sold 23,455,000
Kensington and Wharf silver equivalent ounces sold 16,085,250
Consolidated silver equivalent ounces sold 39,540,250
All-in sustaining costs per silver equivalent ounce guidance $14.25-$14.75

Contacts

Coeur Mining, Inc.
Courtney Lynn, Vice President, Investor Relations and Treasurer
(312) 489-5837
www.coeur.com

Contacts

Coeur Mining, Inc.
Courtney Lynn, Vice President, Investor Relations and Treasurer
(312) 489-5837
www.coeur.com