COEUR MINING, INC. 2022 Fourth Quarter and Full-Year Earnings
11:00 a.m. ET, February 23, 2023
NYSE: CDE
NYSE: CDE | 1 |
JC 2016
Cautionary Statements
This presentation contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements involving strategic priorities and company strategies, expectations regarding environmental, social and governance ("ESG") initiatives, goals and targets, growth, anticipated production, costs and expenses, exploration and development efforts, health and safety protocols, operations, expectations and initiatives at Palmarejo, Rochester, Kensington, Wharf and Silvertip including the POA 11 expansion project and the potential expansion and restart of Silvertip and timing thereof, inflation and other cost pressures, capital allocation and estimates, liquidity sources, free cash flow, mineral reserve and resource estimates, growth, results and hedging strategies. 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 the Rochester expansion project is not completed on a timely basis or requires more capital than currently anticipated for completion, 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 and expanding 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 or higher treatment and refining charge environment, the uncertainties inherent in Coeur's production, exploration and development activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions, grade and recovery variability, any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), the risk of adverse outcomes in litigation, the uncertainties inherent in the estimation of mineral reserves and resources, impacts 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 whom Coeur markets its production, the continued effects of the COVID-19 pandemic, including impacts to workforce, materials and equipment availability, inflationary pressures, 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 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.
The scientific and technical information concerning our mineral projects in this presentation have been reviewed and approved by a "qualified person" under Item 1300 of SEC Regulation S- K, namely our Senior Director, Technical Services, Christopher Pascoe. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources included in this presentation, 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, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company's material properties which are available at www.sec.gov. 2021 reserves and resources were determined in accordance with Item 1300 of SEC Regulation S-K. Reserves and resources for prior periods were determined in accordance with Canadian National Instrument 43-101. Both sets of reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but the standards embody slightly different approaches and definitions.
Non-U.S. GAAP Measures - We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including adjusted net income (loss), operating cash flow before changes in working capital, adjusted EBITDA, adjusted EBITDA margin, total leverage, net leverage, free cash flow, adjusted costs applicable to sales per ounce/pound and adjusted liquidity. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe adjusted net income (loss), adjusted EBITDA, adjusted EBITDA margin, total leverage, net leverage, free cash flow, adjusted costs applicable to sales per ounce/pound and adjusted liquidity are important measures in assessing the Company's overall financial performance. This presentation does not represent an offer of any securities for sale.
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Fourth Quarter and Full-Year 2022 Highlights
• Solid 4Q production results help achieve full-year guidance
• Strong quarterly performance from Rochester
• POA 11 expansion nearing scheduled mid-year construction completion
• Exploration investment drives further reserve and resource growth
• Nearly $382 million of adjusted liquidity1 provides flexibility
• 2023 guidance reflects strong expected 2H increases from Rochester
(1) See slide 16 for liquidity components. Adjusted figure reflects sale of remaining Victoria Gold shares in early 2023 for proceeds of $40 million.
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Financial Summary
Years | Quarters | |||||||
($M, except metal sales, adj. EBITDA margin and per share amounts) | 2022 | 2021 | YoY ∆ | 4Q 2022 | 3Q 2022 | QoQ ∆ | 4Q 2021 | YoY ∆ |
Metal Sales | ||||||||
Gold ounces sold (oz) | 329,968 | 350,347 | (6%) | 88,189 | 81,782 | 8% | 88,930 | (1%) |
Silver ounces sold (M oz) | 9.8 | 10.1 | (4%) | 2.5 | 2.3 | 7% | 2.6 | (6%) |
Key Financials | ||||||||
Revenue | $785.6 | $832.8 | (6%) | $210.1 | $183.0 | 15% | $207.8 | 1% |
Exploration Investment1 | $48.1 | $71.1 | (32%) | $9.4 | $11.9 | (21%) | $18.0 | (48%) |
Net income (loss) | ($78.1) | ($31.3) | NM | $49.0 | ($57.4) | NM | ($10.7) | NM |
Cash flow from operating activities | $25.6 | $110.5 | (77%) | $28.5 | ($19.1) | NM | $35.0 | (19%) |
Capital expenditures | $352.4 | $309.8 | 14% | $113.1 | $96.6 | 17% | $100.9 | 12% |
Free cash flow2,3 | ($326.7) | ($199.3) | NM | ($84.5) | ($115.7) | NM | ($65.9) | NM |
Adjusted Financials | ||||||||
Adjusted net income (loss)2 | ($89.1) | ($1.4) | NM | ($17.6) | ($44.7) | NM | ($11.6) | NM |
Adjusted EBITDA2 | $139.0 | $216.1 | (36%) | $35.9 | $18.3 | 96% | $48.7 | (26%) |
Adjusted EBITDA margin2 | 18% | 25% | (8%) | 17% | 10% | 7% | 23% | (6%) |
LTM Adjusted EBITDA2 | $139.0 | $216.1 | (36%) | $139.0 | $151.9 | (8%) | $216.1 | (36%) |
LTM Adjusted EBITDA margin2 | 18% | 25% | (8%) | 18% | 19% | (2%) | 25% | (8%) |
Cash flow from operating activities (excl. working capital)2 | $71.9 | $145.6 | (51%) | $19.6 | ($1.3) | NM | $37.8 | (48%) |
Per Share Financials | ||||||||
Net income (loss) per share | ($0.28) | ($0.13) | NM | $0.17 | ($0.21) | NM | ($0.04) | NM |
Adjusted net income (loss) per share | ($0.32) | ($0.01) | NM | ($0.06) | ($0.16) | NM | ($0.05) | NM |
Note: "NM" means not meaningful. Percentages may differ due to rounding.
- Exploration investment includes expensed and capitalized exploration.
- See non-GAAP reconciliation tables in the appendix to this presentation.
- Free cash flow is defined as cash flow from operating activities less capital expenditures. See reconciliation tables in the appendix to this presentation.
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Inflationary Cost Pressures
Consistent with macro pressures and industry trends, Coeur continued to experience inflationary pressures on key consumable costs during the fourth quarter
Diesel Cost Per Gallon/% of CAS1 | Cyanide Cost Per Pound/% of CAS1 |
+ 3 2 %
$3.15
10%
$3.62
11%
$4.55
12%
$4.33
11%
$4.15
11%
+ 3 1 %
$1.05
5%
$1.24
5%
$1.32
3%
$1.44
4%
$1.37
4%
4Q 2021 | 1Q 2022 | 2Q 2022 | 3Q 2022 | 4Q 2022 | 4Q 2021 | 1Q 2022 | 2Q 2022 | 3Q 2022 | 4Q 2022 |
Labor Cost/% of CAS1
Power Cost Per Kilowatt/% of CAS1
($M)
+ 1 0 %
$42.4
31%
$45.5
34%
$44.0
29%
$45.7
28%
$46.7
29%
+ 1 4 %
$0.08
4%
$0.08
4%
$0.09
4%
$0.10
4%
$0.09
4%
4Q 2021 | 1Q 2022 | 2Q 2022 | 3Q 2022 | 4Q 2022 | 4Q 2021 | 1Q 2022 | 2Q 2022 | 3Q 2022 | 4Q 2022 |
(1) Excludes Amortization.
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Disclaimer
Coeur Mining Inc. published this content on 22 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2023 12:42:08 UTC.
