Provides Full-Year 2023 Guidance
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported fourth quarter 2022 financial results, including revenue
of $210 million and cash flow from operating activities of $29
million. The Company reported GAAP net income from continuing
operations of $49 million, or $0.17 per share, driven by a $62
million gain on sale of the Crown and Sterling (“Crown Sterling”)
holdings. On an adjusted basis1, Coeur reported EBITDA of $36
million, cash flow from operating activities before changes in
working capital of $20 million and net loss from continuing
operations of $18 million, or $0.06 per share.
For the full year, Coeur reported revenue of $786 million, cash
flow from operating activities of $26 million and GAAP net loss
from continuing operations of $78 million, or $0.28 per share. On
an adjusted basis1, the Company reported EBITDA of $139 million,
cash flow from operating activities prior to changes in working
capital of $72 million and net loss from continuing operations of
$89 million, or $0.32 per share.
___________________________________________________________________________________________________________________________________
Key Highlights
- Solid fourth quarter production growth led to full-year
production within guidance ranges – Gold and silver production
increased 5% and 4% quarter-over-quarter, respectively, to 87,727
ounces and 2.5 million ounces. Full-year gold and silver production
totaled 330,346 ounces and 9.8 million ounces, respectively, within
the Company’s consolidated production guidance ranges
- Rochester delivered strong quarterly performance –
Fourth quarter production at Rochester totaled 973,000 ounces and
11,589 ounces of silver and gold, respectively, representing
quarter-over-quarter increases of 31% and 32%. Costs applicable to
sales2 decreased 5% for silver and 12% for gold
quarter-over-quarter
- POA 11 expansion nearing scheduled mid-year construction
completion and remains on-track – Construction at Rochester is
scheduled to be completed mid-year 2023. At the end of 2022, the
project was 74% complete. The new Stage VI leach pad is now
operational, with first ore placed on February 1, 2023. As of
December 31, 2022, approximately $605 million of the estimated
capital had been committed, of which $494 million of the estimated
capital cost had been incurred. Total expected project capital
remains unchanged at $650 - $670 million
- Exploration investment drives approximately 12% and 3%
year-over-year increases in gold and silver reserves,
respectively – Gold reserves at Kensington grew roughly 56%
year-over-year, adding approximately a year and a half to its mine
life. Successful exploration at Silvertip contributed to
year-over-year increases in measured and indicated resources of
73%, 69% and 81% in silver, zinc and lead, respectively, excluding
reclassified ounces. Over the last five years, the Company has
invested approximately $245 million in exploration, leading to
increases of approximately 21% and 49% in Company-wide gold and
silver reserves, respectively over the five-year period
- Liquidity further bolstered to support remaining elevated
levels of growth investments – The sale of the Crown Sterling
holdings was completed on November 4, 2022 for upfront cash
consideration of $150 million. On January 17, 2023, Coeur announced
the sale of its remaining shares of Victoria Gold Corporation
(“Victoria Gold”) for net cash proceeds of approximately $40
million. Coeur ended the quarter with total liquidity of
approximately $342 million, including $62 million of cash and $280
million of available capacity under its $390 million revolving
credit facility (“RCF”)3 and is further supported by robust hedges
covering approximately 52% and 29% of 2023 estimated gold and
silver production, respectively. As adjusted to reflect the receipt
of proceeds from Victoria Gold, Coeur’s total liquidity stood at
$382 million at December 31, 2022
- 2023 guidance ranges consistent with 2022 investor day
outlook – The Company expects 2023 gold and silver production
of 320,000 - 370,000 ounces and 10.0 - 12.0 million ounces,
respectively, driven by strong expected second half silver and gold
production increases consistent with the planned ramp-up at
Rochester following completion of the POA 11 expansion project and
by higher expected gold production from the Wharf gold
operation
“A stronger fourth quarter capped off an important year for
Coeur in 2022 as we positioned the Company to deliver on a pivotal
2023 composed of several important catalysts, including the
mid-year construction completion of the POA 11 expansion project at
Rochester,” said Mitchell J. Krebs, President and Chief Executive
Officer.
“2022 represented a year of unprecedented global volatility and
intensive capital investment by the Company. Decades high
inflation, strength in the U.S. dollar and supply chain disruptions
made it a challenging year to deliver on many of Coeur’s key
priorities. Despite the unique challenges, I am proud that our team
achieved our full-year production guidance for the third
consecutive year, delivered full-year capital expenditures in-line
with our guidance and came in below our full-year G&A guidance
range. Even with strong fourth quarter production increases, our
costs applicable to sales declined, which is a testament to our
team’s ongoing aggressive cost management efforts and effective
business improvement initiatives. In addition, I am particularly
proud of our team’s safety performance last year, which resulted in
all-time Company low incident rates and among the lowest in the
industry.
“The POA 11 expansion project made tremendous progress during
the fourth quarter, while the Rochester operation ended 2022 with
one of its strongest quarters in recent years. Rochester’s fourth
quarter reflected higher grades placed in the prior quarter as well
as the application of many of the important lessons we have
generated over the past two years in preparation for the transition
to the newly expanded infrastructure later this year.
“2022 also marked another successful year for reserve
replacement, which reflects our ongoing commitment to investing in
near-mine exploration. Over the past five years, the Company has
invested nearly $245 million in exploration to increase our gold
and silver reserves by 21% and 49%, respectively, while boosting
measured and indicated resources by 77% for gold and 53% for
silver. In particular, early success from Kensington’s multi-year
development and drilling program led to a 56% increase in reserves
and the addition of one and a half years of mine life. At
Silvertip, silver, zinc and lead measured and indicated resources
materially increased year-over-year by approximately 73%, 69% and
81%, respectively, excluding reclassified ounces. We expect
Silvertip’s resource to continue to expand and support a future
potential source of meaningful growth for the Company.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Gold Sales
$
572.9
$
157.6
$
139.2
$
146.6
$
129.5
$
578.9
$
146.7
Silver Sales
$
212.8
$
52.5
$
43.8
$
57.5
$
59.0
$
253.9
$
61.2
Consolidated Revenue
$
785.6
$
210.1
$
183.0
$
204.1
$
188.4
$
832.8
$
207.8
Costs Applicable to Sales2
$
606.5
$
159.3
$
163.2
$
150.7
$
133.3
$
511.5
$
136.5
General and Administrative
Expenses
$
39.5
$
10.2
$
9.7
$
9.3
$
10.3
$
40.4
$
9.6
Net Income (Loss)
$
(78.1
)
$
49.0
$
(57.4
)
$
(77.4
)
$
7.7
$
(31.3
)
$
(10.7
)
Net Income (Loss) Per Share
$
(0.28
)
$
0.17
$
(0.21
)
$
(0.28
)
$
0.03
$
(0.13
)
$
(0.04
)
Adjusted Net Income (Loss)1
$
(89.1
)
$
(17.5
)
$
(44.7
)
$
(13.1
)
$
(13.8
)
$
(1.4
)
$
(11.6
)
Adjusted Net Income (Loss)1 Per
Share
$
(0.32
)
$
(0.06
)
$
(0.16
)
$
(0.05
)
$
(0.05
)
$
(0.01
)
$
(0.05
)
Weighted Average Shares
Outstanding
275.2
284.5
278.1
278.0
263.6
250.0
254.8
EBITDA1
$
72.0
$
84.9
$
(20.5
)
$
(32.8
)
$
40.4
$
148.4
$
28.3
Adjusted EBITDA1
$
139.0
$
35.9
$
18.3
$
43.3
$
41.5
$
216.1
$
48.7
Cash Flow from Operating
Activities
$
25.6
$
28.5
$
(19.1
)
$
22.6
$
(6.4
)
$
110.5
$
35.0
Capital Expenditures
$
352.4
$
113.1
$
96.6
$
73.2
$
69.5
$
309.8
$
100.9
Free Cash Flow1
$
(326.7
)
$
(84.5
)
$
(115.7
)
$
(50.6
)
$
(75.9
)
$
(199.3
)
$
(65.9
)
Cash, Equivalents & Short-Term
Investments
$
61.5
$
61.5
$
75.4
$
74.2
$
73.3
$
56.7
$
56.7
Total Debt4
$
515.9
$
515.9
$
635.7
$
547.5
$
485.5
$
487.5
$
487.5
Average Realized Price Per Ounce –
Gold
$
1,736
$
1,787
$
1,702
$
1,729
$
1,721
$
1,652
$
1,652
Average Realized Price Per Ounce –
Silver
$
21.77
$
21.14
$
19.09
$
22.61
$
24.06
$
25.06
$
23.17
Gold Ounces Produced
330,346
87,727
83,438
83,772
75,409
348,529
88,946
Silver Ounces Produced
9.8
2.4
2.4
2.5
2.5
10.1
2.6
Gold Ounces Sold
329,968
88,189
81,782
84,786
75,211
350,347
88,930
Silver Ounces Sold
9.8
2.5
2.3
2.5
2.5
10.1
2.6
Adjusted CAS per AuOz1
$
1,300
$
1,270
$
1,318
$
1,207
$
1,169
$
977
$
1,016
Adjusted CAS per AgOz1
$
17.00
$
15.57
$
14.52
$
15.09
$
14.95
$
15.70
$
14.47
Financial Results
Fourth quarter 2022 revenue totaled $210 million compared to
$183 million in the prior period and $208 million in the fourth
quarter of 2021. The Company produced 87,727 and 2.5 million ounces
of gold and silver, respectively, during the quarter. Metal sales
for the quarter totaled 88,189 ounces of gold and 2.5 million
ounces of silver. Average realized gold and silver prices for the
quarter were $1,787 and $21.14 per ounce, respectively, compared to
$1,702 and $19.09 per ounce in the prior period, a respective 5%
and 11% increase quarter-over-quarter, and $1,652 and $23.17 per
ounce in the fourth quarter of 2021, respectively, an 8% increase
in gold and 9% decrease in silver.
Coeur generated $786 million in revenue during 2022, compared to
$833 million in 2021. Full-year gold and silver production totaled
330,346 and 9.8 million ounces, respectively, compared to 348,529
ounces of gold and 10.1 million ounces of silver in 2021. Metal
sales in 2022 included 329,968 and 9.8 million ounces of gold and
silver, respectively. Average realized gold and silver prices for
the year were $1,736 and $21.77 per ounce, respectively, compared
to $1,652 and $25.06 per ounce in 2021.
Gold and silver sales represented 75% and 25% of quarterly
revenue, respectively. For the full year, gold and silver sales
accounted for 73% and 27% of revenue. The Company’s U.S. operations
accounted for approximately 67% and 61% of fourth quarter and
full-year revenue, respectively.
Costs applicable to sales2 decreased 2% quarter-over-quarter to
$159 million while increasing 19% year-over-year to $607 million.
Higher costs during the year were due primarily to increased
consumable costs driven by inflation. General and administrative
expenses remained consistent quarter-over-quarter at $10
million.
Coeur invested approximately $9 million ($8 million expensed and
$2 million capitalized) in exploration during the quarter, compared
to roughly $12 million ($8 million expensed and $4 million
capitalized) in the prior period. For the full year, the Company
invested approximately $48 million ($27 million expensed and $22
million capitalized), compared to roughly $71 million ($51 million
expensed and $20 million capitalized), reflecting lower planned
investment across the portfolio following the Company’s
highest-ever exploration investment in 2021. See the “Operations”
and “Exploration” sections for additional detail on the Company’s
exploration activities.
The Company recorded income tax benefit of approximately $0.4
million and expense of approximately $15 million during the fourth
quarter and for the full year, respectively. Cash income and mining
taxes paid during the period totaled approximately $9 million,
bringing the full-year total to $42 million. Cash taxes paid in
2022 primarily reflect income and mining tax payments in Mexico.
Additionally, Coeur expects to pay approximately $14 - $18 million
in cash taxes during the first quarter of 2023 primarily as a
result of its annual tax filings in Mexico.
Quarterly operating cash flow totaled $29 million compared to
$(19) million in the prior period, mainly driven by higher metal
sales and favorable changes in working capital. Changes in working
capital during the quarter were $9 million, compared to $(18)
million in the prior period, reflecting the timing of semi-annual
interest payments on the Company’s 2029 5.125% Senior Notes. For
the full year, operating cash flow decreased 77% to $26 million
driven by lower profitability at each site.
Capital expenditures increased 17% quarter-over-quarter to $113
million, bringing the full-year total to $352 million and within
Coeur’s 2022 guidance range of $330 - $395 million. Expenditures
related to the expansion project at Rochester totaled $89 million
and $229 million during the fourth quarter and full-year,
respectively, compared to $68 million in the third quarter and $148
million in 2021. Sustaining and development capital expenditures
accounted for approximately 18% and 82%, respectively, of Coeur’s
total capital investment during the quarter.
Capital Project Update
Rochester Expansion
As of December 31, 2022, the Company had committed approximately
$605 million of capital since inception of the project and
approximately $494 million of the estimated project cost had been
incurred. Total estimated project capital remains between $650 -
$670 million. At the end of 2022, the project was 74% complete.
Coeur achieved several key milestones at the Rochester expansion
during the quarter.
Notably, the Company (i) completed concrete foundations for the
pre-screen structure, while advancing the concrete work in the
primary crusher area, (ii) continued structural, mechanical,
piping, electrical and instrumentation construction work throughout
the project, and (iii) achieved mechanical completion of the
Merrill-Crowe electrical substation construction.
Progress on the Merrill-Crowe plant remained on schedule during
the quarter, including (i) completion of mechanical equipment
setting, (ii) completion of process plant building cladding, (iii)
commencement of electrical cable installation and continuation of
piping installation, and (iv) successful completion of control
systems programming and factory testing.
Further work on the crusher corridor also advanced, including
(i) completion of the first lift of the primary crusher vertical
concrete, (ii) continuation of steel erection and equipment
installation above the secondary cone crushers in the secondary
crusher area, (iii) continuation of steel erection and equipment
installation above the tertiary HPGR crushers in the tertiary
crusher area, and (iv) commencement of control systems
programming.
During the quarter, Coeur made solid progress on the final major
high-voltage electrical distribution and substation construction,
while also advancing pre-commissioning planning and system
development. Mechanical completion remains on target for mid-2023
with ramp-up and commissioning expected to take place during the
second half of the year. Key elements of the project timeline in
2023 are highlighted below:
Target Completion Date
Placing Ore on Stage VI Leach Pad
1Q ✓
Merrill-Crowe Mechanical Completion
2Q
Crushing Circuit Inauguration
3Q
Commission and Ramp-Up Completion
Year-End
Balance Sheet and Liquidity Update
Coeur ended the quarter with total liquidity of approximately
$342 million, including $62 million of cash and $280 million of
available capacity under its $390 million RCF3 subject to certain
financial covenants. Additionally, the Company had $44 million of
marketable securities at the end of the fourth quarter.
On January 17, 2023, Coeur announced the sale of the remaining 6
million shares of its Victoria Gold investment for net proceeds of
approximately $40 million, which is not included as part of the
Company’s fourth quarter results. As adjusted to reflect the
receipt of proceeds from this transaction, Coeur’s total liquidity
stood at $382 million at December 31, 2022.
Hedging Update
During the fourth quarter, the Company added to its hedge
position by executing additional hedges on 18,000 ounces of its
expected 2023 gold production. Additionally, early in the first
quarter, Coeur executed additional hedges on 30,000 ounces of its
expected 2023 gold production. The Company continues to have
meaningful gold price protection in place for 2023. In 2022, Coeur
realized a net hedge gain of roughly $24 million.
Coeur established a new silver hedge position through the
execution of hedges on 3.2 million ounces of its expected 2023
silver production early in the first quarter of 2023. The Company’s
hedging strategy continues to focus on mitigating risk during this
time of capital intensity. An overview of the hedges in place is
outlined below.
1Q 2023
2Q 2023
3Q 2023
4Q 2023
Gold Ounces Hedged
40,500
40,500
49,749
49,749
Avg. Forward Price ($/oz)
$1,944
$1,944
$1,975
$1,975
Silver Ounces Hedged
800,000
1,200,000
600,000
600,000
Avg. Forward Price ($/oz)
$24.29
$24.29
$25.00
$25.00
Mark-to-Market Adjustments
The Company values its strategic investments in equity
securities at the end of each reporting period. The estimated fair
values of Coeur’s equity investments in Victoria Gold, Avino Silver
& Gold Mines Ltd. and Integra Resources Corp. totaled $44
million at December 31, 2022, consisting of $32 million, $10
million and $2 million, respectively (and does not reflect the sale
of Victoria Gold stock that occurred after quarter-end), compared
to $45 million at September 30, 2022, consisting of $36 million, $7
million and $2 million, respectively.
Rochester LCM Adjustment
Coeur reports the carrying value of metal and leach pad
inventory at the lower of cost or net realizable value, with cost
being determined using a weighted average cost method. Decreases in
the market price of gold and silver can affect the value of metal
inventory, stockpiles and leach pads, and it may be necessary to
record a write-down to the net realizable value, as well as impact
carrying value of long-lived assets. At the end of the fourth
quarter, the cost of ore on leach pads at Rochester exceeded its
net realizable value which resulted in a lower of cost or market
(“LCM”) adjustment of $9 million (approximately $8 million in costs
applicable to sales2 and $1 million of amortization).
Operations
Fourth quarter and full-year 2022 highlights for each of the
Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Tons milled
2,197,808
554,247
538,750
539,600
565,211
2,106,741
587,615
Average gold grade (oz/t)
0.053
0.051
0.049
0.054
0.056
0.056
0.055
Average silver grade (oz/t)
3.63
3.16
3.53
3.95
3.87
3.93
3.86
Average recovery rate – Au
92.1
%
92.4
%
93.3
%
92.4
%
90.6
%
92.8
%
89.7
%
Average recovery rate – Ag
84.2
%
85.0
%
84.9
%
84.2
%
83.0
%
82.4
%
81.3
%
Gold ounces produced
106,782
25,935
24,807
27,109
28,931
109,202
28,748
Silver ounces produced (000’s)
6,709
1,489
1,612
1,795
1,813
6,821
1,843
Gold ounces sold
107,157
25,252
24,378
29,285
28,242
108,806
27,706
Silver ounces sold (000’s)
6,695
1,490
1,554
1,855
1,796
6,806
1,813
Average realized price per gold
ounce
$
1,471
$
1,509
$
1,447
$
1,507
$
1,419
$
1,380
$
1,374
Average realized price per silver
ounce
$
21.78
$
21.10
$
19.01
$
22.56
$
23.94
$
25.00
$
23.26
Metal sales
$
303.4
$
69.5
$
64.8
$
86.0
$
83.1
$
320.3
$
80.4
Costs applicable to sales2
$
182.6
$
47.1
$
43.2
$
49.1
$
43.2
$
153.7
$
38.8
Adjusted CAS per AuOz1
$
883
$
1,027
$
948
$
855
$
730
$
663
$
653
Adjusted CAS per AgOz1
$
13.05
$
14.23
$
12.67
$
12.97
$
12.43
$
11.95
$
11.25
Exploration expense
$
6.6
$
1.5
$
1.8
$
1.7
$
1.6
$
8.6
$
2.3
Cash flow from operating
activities
$
88.4
$
18.9
$
12.9
$
22.3
$
34.3
$
102.7
$
32.9
Sustaining capital expenditures
(excludes capital lease payments)
$
42.6
$
8.1
$
10.8
$
10.1
$
13.6
$
36.5
$
8.3
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
$
—
$
(0.1
)
Total capital expenditures
$
42.6
$
8.1
$
10.8
$
10.1
$
13.6
$
36.5
$
8.2
Free cash flow1
$
45.8
$
10.8
$
2.1
$
12.2
$
20.7
$
66.2
$
24.7
Operational
- Fourth quarter gold and silver production totaled 25,935 and
1.5 million ounces, respectively, compared to 24,807 and 1.6
million ounces in the prior period and 28,748 and 1.8 million
ounces in the fourth quarter of 2021. For the full year, gold and
silver production totaled 106,782 and 6.7 million ounces,
respectively, and were within 2022 guidance ranges of 106,000 -
108,000 ounces of gold and 6.6 - 7.0 million ounces of silver
- Production during the quarter benefited from increased mill
throughput as well as higher average gold grade, offset by lower
average silver grade
Financial
- Fourth quarter adjusted CAS1 for gold and silver on a
co-product basis increased 8% and 12% to $1,027 and $14.23 per
ounce, respectively, driven by increased costs related to higher
throughput to offset lower silver grades during the quarter as well
as unfavorable changes in foreign exchange rates on consumables and
labor costs
- For the full year, adjusted CAS1 for gold and silver totaled
$883 and $13.05 per ounce, respectively, compared to $663 and
$11.95 per ounce in the prior period. Both cost metrics finished
the year within their 2022 guidance ranges of $825 - $925 and
$12.75 - $13.75 per ounce of gold and silver, respectively
- Capital expenditures decreased 25% quarter-over-quarter to $8
million, reflecting decreased infill drilling and timing of
projects at year-end
- Full-year capital expenditures increased 17% to $43 million,
primarily as a result of increased sustaining capital to support
future production
- Free cash flow1 in the fourth quarter and full-year totaled $11
million and $46 million, respectively, compared to $2 million and
$66 million in the prior periods. Fourth quarter free cash flow
benefited from higher metal sales while lower full-year free cash
flow was driven by higher costs applicable to sales
Exploration
- Exploration investment for the fourth quarter decreased 36% to
approximately $2 million (substantially all expensed), while
full-year exploration investment decreased 22% year-over-year to
roughly $11 million ($7 million expensed and $5 million)
- The number of active rigs was reduced from three at the
beginning of the period to one by the end of the quarter. Expansion
drilling during the quarter continued to focus on the northwest
extension of the Hidalgo zone (located at the northwest end of the
Independencia deposit). In this portion of the system, three
mineralized vein arrays have been identified — Hidalgo, Libertad
and San Juan
- Coeur expects one drill rig to be active at Palmarejo in the
first quarter focused on expansion drilling at the Hidalgo
zone
Other
- Approximately 36% and 38% of Palmarejo’s gold sales in the
fourth quarter and full-year, respectively, were sold under its
gold stream agreement at a price of $800 per ounce, totaling 9,050
ounces in the fourth quarter and 41,000 ounces for the full year.
The Company anticipates approximately 30% - 40% of Palmarejo’s gold
sales for 2023 will be sold under the stream agreement
Guidance
- Full-year 2023 production is expected to be 100,000 - 112,500
ounces of gold and 6.5 - 7.5 million ounces of silver. Production
in 2023 is expected to be relatively flat compared to 2022
production
- CAS1 in 2023 are expected to be $900 - $1,050 per gold ounce
and $14.25 - $15.25 per silver ounce
- Capital expenditures are expected to be $35 - $47 million
consisting primarily of underground development as well as
development of the high compression thickener and open pit backfill
project
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Ore tons placed
14,919,803
2,754,118
3,551,353
4,236,459
4,377,873
13,687,536
3,823,764
Average silver grade (oz/t)
0.41
0.68
0.37
0.35
0.34
0.42
0.40
Average gold grade (oz/t)
0.003
0.003
0.004
0.003
0.003
0.002
0.003
Silver ounces produced (000’s)
3,062
973
745
689
655
3,158
757
Gold ounces produced
34,735
11,589
8,761
8,319
6,066
27,051
6,864
Silver ounces sold (000’s)
3,029
975
733
683
638
3,242
801
Gold ounces sold
34,370
11,646
8,725
8,071
5,928
27,697
7,386
Average realized price per silver
ounce
$
21.53
$
21.10
$
19.10
$
22.42
$
24.00
$
25.04
$
22.98
Average realized price per gold
ounce
$
1,875
$
1,893
$
1,852
$
1,883
$
1,864
$
1,793
$
1,797
Metal sales
$
129.7
$
42.6
$
30.2
$
30.5
$
26.4
$
130.8
$
31.6
Costs applicable to sales2
$
165.2
$
44.1
$
50.8
$
38.0
$
32.3
$
131.2
$
37.5
Adjusted CAS per AgOz1
$
25.74
$
17.60
$
18.46
$
20.85
$
22.06
$
23.57
$
21.76
Adjusted CAS per AuOz1
$
2,268
$
1,596
$
1,821
$
1,763
$
1,720
$
1,691
$
1,707
Exploration expense
$
4.6
$
0.6
$
0.6
$
1.5
$
1.9
$
6.0
$
2.2
Cash flow from operating
activities
$
(48.0
)
$
(5.5
)
$
(13.7
)
$
(9.1
)
$
(19.7
)
$
(26.5
)
$
(12.3
)
Sustaining capital expenditures
(excludes capital lease payments)
$
14.9
$
3.0
$
5.1
$
4.5
$
2.3
$
17.5
$
5.8
Development capital
expenditures
$
231.5
$
89.3
$
68.9
$
42.5
$
30.8
$
149.0
$
48.1
Total capital expenditures
$
246.4
$
92.3
$
74.0
$
47.0
$
33.1
$
166.5
$
53.9
Free cash flow1
$
(294.4
)
$
(97.8
)
$
(87.7
)
$
(56.1
)
$
(52.8
)
$
(193.0
)
$
(66.2
)
Operational
- Silver and gold production increased 31% and 32% in the fourth
quarter, respectively, to 973,000 and 11,589 ounces compared to
744,880 and 8,761 ounces in the prior period and 757,000 and 6,864
ounces in the fourth quarter of 2021. For the full year, silver
production totaled 3.1 million and was at the high end of the 2022
guidance range of 2.9 - 3.1 million ounces, while gold production
totaled 34,735 ounces which exceeded the 2022 guidance range of
32,000 - 34,000 ounces
- Increased production during the quarter was primarily driven by
timing of higher-grade material placed on the leach pad during the
prior period as a result of planned mine sequencing
Financial
- Fourth quarter adjusted CAS1 figures in the table above and
highlighted below exclude the impact of an LCM adjustment totaling
approximately $8 million related to the net realizable value of
metal and leach pad inventory due to higher operating costs
exceeding the lower market value of ounces under leach at
Rochester
- Fourth quarter adjusted CAS1 for silver and gold on a
co-product basis totaled $17.60 and $1,596 per ounce, respectively,
with significant reductions compared to the prior period largely
driven by increased metal sales
- Full-year adjusted CAS1 for silver and gold on a co-product
basis totaled $25.74 and $2,268 per ounce, respectively, compared
to $23.57 and $1,691 per ounce in the prior period, largely driven
by inflation pressures on consumable costs
- Capital expenditures increased 25% quarter-over-quarter to $92
million, bringing the full year total to $246 million compared to
$167 million in the prior year, reflecting increased spending
related to the POA 11 expansion project
- Free cash flow1 in the fourth quarter and full-year totaled
$(98) million and $(294) million, respectively, compared to $(88)
million and $(193) million in the prior periods
Exploration
- Quarterly exploration investment decreased 15%
quarter-over-quarter to approximately $1 million ($0.6 million
expensed and $0.5 million capitalized), while full-year exploration
investment decreased 21% year-over-year to roughly $7 million ($5
million expensed and $3 million capitalized)
- Condemnation drilling at the west waste dump was undertaken
during the quarter with results pending
- In the first quarter, Coeur plans to focus on data organization
and geologic logging, interpretation and modeling ahead of the
mid-year resource calculations
- Additionally, region target assessment and ranking will be
undertaken as part of a wider geological prospectivity review which
will later feed into medium- and long-term work-program
planning
Guidance
- Full-year 2023 production is expected to increase to 3.5 - 4.5
million ounces of silver and 35,000 - 50,000 ounces of gold
compared to 2022 production levels. Production in 2023 is expected
to be second half weighted with the construction completion of POA
11 occurring mid-year
- With the completion of the POA 11 expansion construction
expected in mid-2023, the Company has elected to defer providing
cost guidance at Rochester until mid-year, following the
transitional period anticipated in the first half of 2023
- Capital expenditures are expected to be $228 - $252 million
primarily due to investment in POA 11 weighted towards the first
half of 2023
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Tons milled
700,346
183,410
175,246
175,722
165,968
667,560
168,295
Average gold grade (oz/t)
0.17
0.18
0.18
0.17
0.14
0.19
0.21
Average recovery rate
92.5
%
92.4
%
91.1
%
91.6
%
95.3
%
93.2
%
93.9
%
Gold ounces produced
109,061
30,335
28,214
27,866
22,646
121,140
33,516
Gold ounces sold
108,972
30,863
27,609
27,666
22,834
122,181
33,888
Average realized price per gold ounce,
gross
$
1,888
$
1,942
$
1,808
$
1,842
$
1,967
$
1,785
$
1,790
Treatment and refining charges per gold
ounce
$
36
$
38
$
33
$
34
$
37
$
28
$
27
Average realized price per gold ounce,
net
$
1,852
$
1,904
$
1,775
$
1,808
$
1,930
$
1,757
$
1,763
Metal sales
$
202.5
$
58.8
$
49.1
$
50.3
$
44.3
$
215.0
$
59.8
Costs applicable to sales2
$
155.7
$
39.2
$
40.3
$
39.3
$
36.9
$
133.1
$
37.9
Adjusted CAS per AuOz1
$
1,420
$
1,265
$
1,455
$
1,399
$
1,610
$
1,082
$
1,111
Prepayment, working capital cash
flow
$
10.0
$
9.6
$
(9.6
)
$
(0.1
)
$
10.1
$
—
$
7.4
Exploration expense
$
6.6
$
2.2
$
2.8
$
1.2
$
0.4
$
6.7
$
1.6
Cash flow from operating
activities
$
42.2
$
20.8
$
(0.2
)
$
10.7
$
10.9
$
70.8
$
26.8
Sustaining capital expenditures
(excludes capital lease payments)
$
31.5
$
7.7
$
7.1
$
8.8
$
7.9
$
27.5
$
8.0
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
31.5
$
7.7
$
7.1
$
8.8
$
7.9
$
27.5
$
8.0
Free cash flow1
$
10.7
$
13.1
$
(7.3
)
$
1.9
$
3.0
$
43.3
$
18.8
Operational
- Gold production increased in the fourth quarter to 30,335
ounces compared to 28,214 ounces in the prior period and 33,516
ounces in the fourth quarter of 2021. For the full year, gold
production totaled 109,061 ounces and was just below 2022 guidance
of 110,000 - 111,000 ounces
- Higher production during the fourth quarter was driven by an
increase in mill throughput - a record high quarter - due to
efficiencies at the mill, as well as improved average gold
recoveries compared to the prior period
Financial
- Fourth quarter adjusted CAS1 totaled $1,265 per ounce compared
to $1,455 per ounce in the prior period, reflecting increased metal
sales. Full-year adjusted CAS1 totaled $1,420 per ounce compared to
$1,082 per ounce in 2021, largely driven by higher consumable costs
and employee-related expenses
- Capital expenditures increased slightly quarter-over-quarter to
$8 million due to increased capital development as well as infill
drilling. For the full year, capital expenditures increased 15% to
$32 million primarily due to increased capital development
- Free cash flow1 in the fourth quarter and full-year totaled $13
million and $11 million, respectively, compared to $(7) million and
$43 million in the prior periods
Exploration
- Exploration investment in the quarter totaled approximately $3
million ($2 million expensed and $1 million capitalized), compared
to $3 million ($3 million expensed and $1 million capitalized) in
the prior period. For the full year, exploration investment
increased 7% to roughly $11 million ($7 million expensed and $5
million capitalized)
- During the quarter, four underground drill rigs were focused on
expansion and infill drilling at Elmira, Kensington and
Johnson
- At Kensington, the Company continues to trace Zone 30A, Zone
30B and Zone 12 structures to the south and down dip. Drilling
continues to intercept zones of consistent widths and grades with
the potential to increase mineral resources and further extend mine
life
- In the first quarter of 2023, up to six underground drill rigs
are expected to focus on infill and expansion drilling at multiple
zones at Kensington, Johnson and Elmira as part of Kensington’s
multi-year enhanced development and drilling program
Guidance
- Full-year 2023 production is expected to be 100,000 - 112,500
gold ounces. Production in 2023 is expected to be relatively flat
compared to 2022
- CAS1 in 2023 are expected to be $1,500 - $1,700 per gold
ounce
- Capital expenditures are expected to be $50 - $62 million,
primarily related to the multi-year development and drilling
program
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Ore tons placed
4,506,849
975,994
1,353,071
1,050,215
1,127,569
4,702,882
1,074,189
Average gold grade (oz/t)
0.021
0.024
0.019
0.015
0.025
0.027
0.022
Gold ounces produced
79,768
19,868
21,656
20,478
17,766
91,136
19,818
Silver ounces produced (000’s)
46
9
13
12
12
90
15
Gold ounces sold
79,469
20,428
21,070
19,764
18,207
91,663
19,950
Silver ounces sold (000’s)
47
17
8
6
16
86
11
Average realized price per gold
ounce
$
1,874
$
1,895
$
1,838
$
1,886
$
1,882
$
1,795
$
1,799
Metal sales
$
150.0
$
39.0
$
38.9
$
37.4
$
34.7
$
166.7
$
36.2
Costs applicable to sales2
$
103.1
$
28.9
$
28.9
$
24.4
$
20.9
$
93.6
$
22.4
Adjusted CAS per AuOz1
$
1,281
$
1,393
$
1,357
$
1,233
$
1,118
$
994
$
1,104
Exploration expense
$
—
$
—
$
—
$
—
$
—
$
0.1
$
(0.1
)
Cash flow from operating
activities
$
33.0
$
10.3
$
6.9
$
10.3
$
5.5
$
58.4
$
8.4
Sustaining capital expenditures
(excludes capital lease payments)
$
1.5
$
0.7
$
0.3
$
0.3
$
0.2
$
4.0
$
3.0
Development capital
expenditures
$
1.6
$
0.1
$
0.2
$
0.2
$
1.2
$
4.1
$
1.2
Total capital expenditures
$
3.1
$
0.8
$
0.5
$
0.5
$
1.4
$
8.1
$
4.2
Free cash flow1
$
29.9
$
9.5
$
6.4
$
9.8
$
4.1
$
50.3
$
4.2
Operational
- Gold production in the fourth quarter decreased 8%
quarter-over-quarter to 19,868 ounces. For the full year, gold
production totaled 79,768 ounces, within 2022 guidance of 77,000 -
82,000 ounces
- Lower production during the quarter was primarily due to lower
grade material placed on the leach pad during the prior period as a
result of planned mine sequencing. Ore tons placed decreased 28%
during the quarter due to weather events
Financial
- Adjusted CAS1 on a by-product basis increased 3%
quarter-over-quarter to $1,393 per ounce, largely driven by lower
metal sales. Full-year adjusted CAS1 totaled $1,281 per ounce and
was within the 2022 guidance range of $1,250 - $1,350 per
ounce
- Capital expenditures remained consistent quarter-over-quarter
at $1 million
- Free cash flow1 in the fourth quarter and full-year totaled $10
million and $30 million, respectively, compared to $6 million and
$50 million in the prior periods. Higher free cash flow1 in the
fourth quarter was largely driven by higher metal sales, while
full-year free cash flow reflected lower metal sales and higher
costs compared to 2021. Coeur has now generated cumulative free
cash flow from Wharf of more than three times its original
investment of approximately $99.5 million in February 2015
Exploration
- Exploration investment remained flat quarter-over-quarter as
the infill program was completed in the first quarter, which
focused on resource conversion at the Portland Ridge - Boston claim
group (located on the southern edge of the operation) and Flossie
(located west of Portland Ridge) areas
- In 2023, the focus will be on geological modeling and planning
for 2024
Guidance
- Full-year 2023 production is expected to be 85,000 - 95,000
gold ounces. Higher anticipated production in 2023 is primarily
related to higher expected gold grade due to mine sequencing
- CAS1 in 2023 are expected to be $1,200 - $1,350 per gold
ounce
- Capital expenditures are expected to be $1 - $4 million
Exploration
Coeur had up to 16 active rigs across all sites during the
fourth quarter, for a total investment of approximately $9 million
($8 million expensed and $2 million capitalized), compared to
roughly $12 million ($8 million expensed and $4 million
capitalized) in the prior period. The decrease in drilling activity
was largely driven by the ramp down of projects for the year.
For the full year, Coeur invested approximately $48 million ($27
million and $22 million capitalized), compared to roughly $71
million ($51 million expensed and $20 million capitalized) in 2021.
The decrease in drilling activity was primarily driven by lower
planned investment across the portfolio in 2022 versus 2021, which
was a record year of exploration investment for the Company.
Exploration investment at the Silvertip silver-zinc-lead
exploration project in British Columbia, Canada in the fourth
quarter totaled approximately $3 million (substantially all
expensed) compared to roughly $3 million ($2 million expensed and
$1 million capitalized) in the prior period.
For the full year, Coeur invested approximately $10 million ($5
million expensed and $5 million capitalized) compared to roughly
$19 million ($15 million expensed and $3 million capitalized) in
2021 at Silvertip.
Since acquisition, exploration at Silvertip has been
consistently successful, with measured and indicated resource
tonnage increasing from approximately 2.6 million tons to 7.1
million tons. Multiple new zones have been discovered, providing a
clear path to potentially significant resource growth for the
foreseeable future. The Company anticipates a slower overall
timeline to advance the Silvertip project, with the primary focus
on growth of the overall deposit. Consistent with Silvertip’s
status as a long-term exploration project, the Company has
reclassified its mineral reserves to measured and indicated
resources as of year-end 2022.
Up to four core drill rigs were active at Silvertip with two
underground rigs focused on infill and expansion holes at the
Southern Silver and Discovery zones. At the Southern Silver zone,
down dip extensions to the zone were intersected in several holes.
Drilling in the Discovery zone added continuity to the manto
horizon through targeted drillholes into gaps in the resource
shapes. A deep drillhole targeting the source (hub) of the deposit
began late in the fourth quarter and is expected to be completed in
the first quarter. Additionally, a new zone of mineralization was
encountered in the exploration ramp which was expanded upon with
underground drillholes. This new zone remains open in all
directions and will be a priority drill target in 2023.
Two surface rigs were also active during the quarter, completing
both scout and expansion drilling at Tour Ridge and Camp Creek
West. Drillhole results at Camp Creek West confined the
mineralization to a narrow corridor which allows the team to plan
follow-up drilling in the area. Drilling at Tour Ridge was
completed during the quarter. Results are pending, but multiple
geological indicators or proximity to mineralization were
intersected.
The Company expects to invest $10 - $14 million in exploration
in 2023 at Silvertip, including $8 - $10 million and $2 - $4
million of expensed and capitalized drilling, respectively.
2023 Guidance
Gold and silver production is expected to increase compared to
2022, driven by the planned construction completion of POA 11 at
Rochester mid-year as well as higher expected grades at Wharf due
to mine sequencing and resource model enhancements. Overall cost
guidance has increased compared to 2022 primarily driven by
expected continued inflationary pressures on operating costs.
Additionally, with the completion of the POA 11 expansion
construction expected in mid-2023, Coeur has elected to defer
providing cost guidance at Rochester until mid-year, following the
transitional period anticipated in the first half of 2023. The
Company expects to have an LCM adjustment at Rochester of roughly
$10 - $15 million each quarter in 2023.
2023 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
100,000 - 112,500
6,500 - 7,500
Rochester
35,000 - 50,000
3,500 - 4,500
Kensington
100,000 - 112,500
—
Wharf
85,000 - 95,000
—
Total
320,000 - 370,000
10,000 - 12,000
2023 Costs Applicable to Sales Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$900 - $1,050
$14.25 - $15.25
Rochester (co-product)
—
—
Kensington
$1,500 - $1,700
—
Wharf (by-product)
$1,200 - $1,350
—
2023 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures,
Sustaining
$120 - $145
Capital Expenditures,
Development
$200 - $235
Exploration, Expensed
$30 - $35
Exploration, Capitalized
$10 - $15
General & Administrative
Expenses
$36 - $40
Note: The Company’s guidance figures assume estimated prices of
$1,800/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN
of 20.00. 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 fourth quarter
and full-year 2022 financial results on February 23, 2023 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 March 2, 2023.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088
(International)
Conference ID:
756 29 47
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with four wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, the Rochester silver-gold
mine in Nevada, the Kensington gold mine in Alaska and the Wharf
gold mine in South Dakota. In addition, the Company wholly-owns the
Silvertip silver-zinc-lead exploration project in British Columbia
and has interests in other 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, cash flow, growth, capital
allocation and investment, cost management, liquidity and balance
sheet management, exploration and development efforts and plans,
reserve and resource growth, mine life expansion, ESG initiatives,
the gold stream agreement at Palmarejo, expectations, plans, costs
and timing regarding the Rochester expansion project, hedging
strategies, the impact of inflation, anticipated production, costs
and expenses and operations at Palmarejo, Rochester, Wharf and
Kensington. 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. This does not constitute an offer of any securities for
sale.
The scientific and technical information concerning our mineral
projects in this news release have been reviewed and approved by a
“qualified person” under S-K 1300, namely our Director, Technical
Services, Christopher Pascoe. For a description of the key
assumptions, parameters and methods used to estimate mineral
reserves and mineral 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, 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.
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, 2022.
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) 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. Liquidity is defined as cash
and cash equivalents plus availability under the Company’s RCF.
Adjusted liquidity is defined as liquidity plus the proceeds of the
sale of Crown Sterling holdings which settled subsequent to quarter
end. Please see tables in Appendix for the calculation of
consolidated free cash flow, liquidity and adjusted liquidity.
2.
Excludes amortization.
3.
As of December 31, 2022, Coeur had $30
million in outstanding letters of credit and $80 million in
outstanding borrowings under its RCF.
4.
Includes capital leases. Net of debt
issuance costs and premium received.
Average Spot Prices
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Average Gold Spot Price Per Ounce
$
1,800
$
1,726
$
1,729
$
1,871
$
1,877
$
1,799
$
1,795
Average Silver Spot Price Per Ounce
$
21.73
$
21.17
$
19.23
$
22.60
$
24.00
$
25.14
$
23.33
Average Zinc Spot Price Per Pound
$
1.58
$
1.36
$
1.49
$
1.77
$
1.70
$
1.36
$
1.52
Average Lead Spot Price Per Pound
$
0.97
$
0.95
$
0.90
$
0.99
$
1.05
$
1.00
$
1.05
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
December 31, 2022
December 31, 2021
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
61,464
$
56,664
Receivables
36,333
32,417
Inventory
61,831
51,281
Ore on leach pads
82,958
81,128
Equity securities
32,032
—
Prepaid expenses and other
25,814
13,847
Assets held for sale
—
54,240
300,432
289,577
NON-CURRENT ASSETS
Property, plant and equipment, net
392,320
319,967
Mining properties, net
997,435
852,799
Ore on leach pads
51,268
73,495
Restricted assets
9,028
9,138
Equity securities
12,120
132,197
Receivables
22,023
—
Other
61,517
57,249
TOTAL ASSETS
$
1,846,143
$
1,734,422
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
96,123
$
103,901
Accrued liabilities and other
92,863
87,946
Debt
24,578
29,821
Reclamation
5,796
2,931
Liabilities held for sale
—
11,269
219,360
235,868
NON-CURRENT LIABILITIES
Debt
491,355
457,680
Reclamation
196,635
178,957
Deferred tax liabilities
14,459
21,969
Other long-term liabilities
35,318
39,686
737,767
698,292
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 600,000,000 shares, 295,697,624 issued and outstanding
at December 31, 2022 and 256,919,803 at December 31, 2021
2,957
2,569
Additional paid-in capital
3,891,265
3,738,347
Accumulated other comprehensive income
(loss)
12,343
(1,212
)
Accumulated deficit
(3,017,549
)
(2,939,442
)
889,016
800,262
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,846,143
$
1,734,422
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
Year Ended December
31,
2022
2021
2020
In thousands, except share
data
Revenue
$
785,636
$
832,828
$
785,461
COSTS AND EXPENSES
Costs applicable to sales(1)
606,530
511,539
440,335
Amortization
111,626
128,315
131,387
General and administrative
39,460
40,399
33,722
Exploration
26,624
51,169
42,643
Pre-development, reclamation, and
other
41,287
48,678
55,654
Total costs and expenses
825,527
780,100
703,741
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment
—
(9,173
)
—
Fair value adjustments, net
(66,668
)
(543
)
7,601
Interest expense, net of capitalized
interest
(23,861
)
(16,451
)
(20,708
)
Other, net
66,971
(22,925
)
(5,941
)
Total other income (expense), net
(23,558
)
(49,092
)
(19,048
)
Income (loss) before income and mining
taxes
(63,449
)
3,636
62,672
Income and mining tax (expense)
benefit
(14,658
)
(34,958
)
(37,045
)
NET INCOME (LOSS)
$
(78,107
)
$
(31,322
)
$
25,627
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges
37,445
22,783
(12,434
)
Reclassification adjustments for realized
(gain) loss on cash flow hedges
(23,890
)
(12,859
)
1,434
Other comprehensive income (loss)
13,555
9,924
(11,000
)
COMPREHENSIVE INCOME (LOSS)
$
(64,552
)
$
(21,398
)
$
14,627
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
(0.28
)
$
(0.13
)
$
0.11
Diluted
$
(0.28
)
$
(0.13
)
$
0.11
(1) Excludes amortization.
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended December
31,
2022
2021
2020
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(78,107
)
$
(31,322
)
$
25,627
Adjustments:
Amortization
111,626
128,315
131,387
Accretion
14,850
12,897
11,984
Deferred taxes
(18,450
)
(10,932
)
(7,283
)
Loss on debt extinguishment
—
9,173
—
Fair value adjustments, net
63,529
543
(7,634
)
Stock-based compensation
10,030
13,660
8,548
Gain on modification of right of use
lease
—
—
(4,051
)
Gain on the sale of Sterling/Crown
(62,249
)
—
—
Write-downs
45,978
38,596
16,821
Deferred revenue recognition
(15,887
)
(16,226
)
(16,702
)
Other
542
911
3,737
Changes in operating assets and
liabilities:
Receivables
4,452
(983
)
(9,463
)
Prepaid expenses and other current
assets
240
489
(2,621
)
Inventory and ore on leach pads
(51,448
)
(27,628
)
(34,538
)
Accounts payable and accrued
liabilities
510
(7,011
)
32,897
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
25,616
110,482
148,709
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(352,354
)
(309,781
)
(99,279
)
Proceeds from the sale of assets
165,829
6,824
5,529
Purchase of investments
—
(1,955
)
(2,500
)
Sale of investments
40,469
935
30,831
Other
(107
)
(99
)
(252
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(146,163
)
(304,076
)
(65,671
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
147,408
—
—
Issuance of notes and bank borrowings, net
of issuance costs
320,000
592,493
150,000
Payments on debt, finance leases, and
associated costs
(338,721
)
(430,101
)
(175,984
)
Silvertip contingent consideration
—
—
(18,750
)
Other
(3,661
)
(4,256
)
(1,801
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
125,026
158,136
(46,535
)
Effect of exchange rate changes on cash
and cash equivalents
401
(423
)
649
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
4,880
(35,881
)
37,152
Cash, cash equivalents and restricted cash
at beginning of period
58,289
94,170
57,018
Cash, cash equivalents and restricted cash
at end of period
$
63,169
$
58,289
$
94,170
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Net income (loss)
$
(78,107
)
$
49,089
$
(57,444
)
$
(77,434
)
$
7,682
$
(31,322
)
$
(10,760
)
Interest expense, net of capitalized
interest
23,861
8,191
5,932
5,170
4,568
16,451
3,211
Income tax provision (benefit)
14,658
(421
)
1,883
11,502
1,694
34,958
432
Amortization
111,626
28,077
29,151
27,965
26,433
128,315
35,443
EBITDA
72,038
84,936
(20,478
)
(32,797
)
40,377
148,402
28,326
Fair value adjustments, net
66,668
1,396
13,067
62,810
(10,605
)
543
7,543
Foreign exchange (gain) loss
850
(123
)
(93
)
507
559
2,779
479
Asset retirement obligation accretion
14,232
3,643
3,597
3,529
3,463
11,988
3,091
Inventory adjustments and write-downs
49,085
8,725
22,005
9,763
8,592
14,738
8,109
(Gain) loss on sale of assets and
securities
(64,429
)
(62,064
)
87
(621
)
(1,831
)
(4,111
)
471
RMC bankruptcy distribution
(1,651
)
(1,651
)
—
—
—
—
—
VAT litigation
1,142
1,142
—
—
—
—
—
Value-added tax write-off
—
—
—
—
—
25,982
—
Loss on debt extinguishment
—
—
—
9,173
—
COVID-19 costs
1,739
155
294
318
972
6,618
681
Interest income on notes receivables
(720
)
(360
)
(181
)
(179
)
—
—
—
Adjusted EBITDA
$
138,954
$
35,799
$
18,298
$
43,330
$
41,527
$
216,112
$
48,700
Revenue
$
785,636
$
210,116
$
182,993
$
204,123
$
188,404
$
832,828
$
207,884
Adjusted EBITDA Margin
18
%
17
%
10
%
21
%
22
%
26
%
23
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Net income (loss)
$
(78,107
)
$
49,089
$
(57,444
)
$
(77,434
)
$
7,682
$
(31,322
)
$
(10,760
)
Fair value adjustments, net
66,668
1,396
13,067
62,810
(10,605
)
543
7,543
Foreign exchange loss (gain)
1,648
458
(313
)
513
990
1,994
146
(Gain) loss on sale of assets and
securities
(64,429
)
(62,064
)
87
(621
)
(1,831
)
(4,111
)
471
RMC bankruptcy distribution
(1,651
)
(1,651
)
—
—
—
—
—
VAT litigation
1,142
1,142
—
—
—
—
—
Value-added tax write-off
—
—
—
—
—
25,982
—
Loss on debt extinguishment
—
—
—
—
—
9,173
—
COVID-19 costs
1,739
155
294
318
972
6,618
681
Interest income on notes receivables
(720
)
(360
)
(181
)
(179
)
—
—
—
Tax effect of adjustments
(15,349
)
(5,616
)
(231
)
1,488
(10,990
)
(10,270
)
(9,696
)
Adjusted net income (loss)
$
(89,059
)
$
(17,451
)
$
(44,721
)
$
(13,105
)
$
(13,782
)
$
(1,393
)
$
(11,615
)
Adjusted net income (loss) per share -
Basic
$
(0.32
)
$
(0.06
)
$
(0.16
)
$
(0.05
)
$
(0.05
)
$
(0.01
)
$
(0.05
)
Adjusted net income (loss) per share -
Diluted
$
(0.32
)
$
(0.06
)
$
(0.16
)
$
(0.05
)
$
(0.05
)
$
(0.01
)
$
(0.05
)
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Cash flow from operations
$
25,616
$
28,516
$
(19,117
)
$
22,644
$
(6,427
)
$
110,482
$
34,936
Capital expenditures
352,354
113,094
96,602
73,156
69,502
309,781
100,868
Free cash flow
$
(326,738
)
$
(84,578
)
$
(115,719
)
$
(50,512
)
$
(75,929
)
$
(199,299
)
$
(65,932
)
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
2022
4Q 2022
3Q 2022
2Q 2022
1Q 2022
2021
4Q 2021
Cash provided by (used in) operating
activities
$
25,616
$
28,516
$
(19,117
)
$
22,644
$
(6,427
)
$
110,482
$
34,936
Changes in operating assets and
liabilities:
Receivables
(4,452
)
(353
)
119
4,882
(9,100
)
983
1,999
Prepaid expenses and other
(240
)
699
2,075
(3,523
)
509
(489
)
104
Inventories
51,448
8,798
13,715
11,263
17,672
27,628
9,581
Accounts payable and accrued
liabilities
(510
)
(18,022
)
1,880
(5,493
)
21,125
7,011
(8,831
)
Operating cash flow before changes in
working capital
$
71,862
$
19,638
$
(1,328
)
$
29,773
$
23,779
$
145,615
$
37,789
Total Adjusted
Liquidity
(Dollars in thousands)
4Q 2022
Cash and cash equivalents
$
61,464
Available capacity under the RCF
280,432
Total liquidity
341,896
Proceeds from sale of Victoria Gold
39,775
Total adjusted liquidity
$
381,671
Reconciliation of Costs
Applicable to Sales
for Year Ended December 31,
2022
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)
$
218,008
$
187,792
$
194,757
$
111,310
$
4,912
$
716,779
Amortization
(35,432
)
(22,626
)
(39,032
)
(8,247
)
(4,912
)
(110,249
)
Costs applicable to sales
$
182,576
$
165,166
$
155,725
$
103,063
$
—
$
606,530
Inventory Adjustments
(599
)
(9,232
)
(401
)
(217
)
(10,449
)
By-product credit
—
—
(634
)
(1,083
)
(1,717
)
Adjusted costs applicable to
sales
$
181,977
$
155,934
$
154,690
$
101,763
$
—
$
594,364
Metal Sales
Gold ounces
107,157
34,370
108,972
79,469
—
329,968
Silver ounces
6,695,454
3,028,986
—
47,284
—
9,771,724
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
52
%
50
%
100
%
100
%
Silver
48
%
50
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
883
$
2,268
$
1,420
$
1,281
Silver ($/oz)
$
13.05
$
25.74
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31, 2022
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)
$
55,325
$
50,211
$
49,887
$
30,716
$
1,133
$
187,272
Amortization
(8,281
)
(6,034
)
(10,672
)
(1,748
)
(1,133
)
(27,868
)
Costs applicable to sales
$
47,044
$
44,177
$
39,215
$
28,968
$
—
$
159,404
Inventory Adjustments
103
(8,429
)
(103
)
(106
)
—
(8,535
)
By-product credit
—
—
(59
)
(413
)
—
(472
)
Adjusted costs applicable to
sales
$
47,147
$
35,748
$
39,053
$
28,449
$
—
$
150,397
Metal Sales
Gold ounces
25,252
11,646
30,863
20,428
—
88,189
Silver ounces
1,490,444
974,810
—
17,387
—
2,482,641
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
55
%
52
%
100
%
100
%
Silver
45
%
48
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
1,027
$
1,596
$
1,265
$
1,393
Silver ($/oz)
$
14.23
$
17.60
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2022
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)
$
51,271
$
57,681
$
50,658
$
31,078
$
1,260
$
191,948
Amortization
(8,027
)
(6,921
)
(10,369
)
(2,191
)
(1,260
)
(28,768
)
Costs applicable to sales
$
43,244
$
50,760
$
40,289
$
28,887
$
—
$
163,180
Inventory Adjustments
(445
)
(21,331
)
(28
)
(152
)
—
(21,956
)
By-product credit
—
—
(97
)
(153
)
—
(250
)
Adjusted costs applicable to
sales
$
42,799
$
29,429
$
40,164
$
28,582
$
—
$
140,974
Metal Sales
Gold ounces
24,378
8,725
27,609
21,070
—
81,782
Silver ounces
1,554,288
733,383
—
7,931
—
2,295,602
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
54
%
54
%
100
%
100
%
Silver
46
%
46
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
948
$
1,821
$
1,455
$
1,357
Silver ($/oz)
$
12.67
$
18.46
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2022
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)
$
58,800
$
42,914
$
48,680
$
26,600
$
1,259
$
178,253
Amortization
(9,737
)
(4,961
)
(9,369
)
(2,248
)
(1,259
)
(27,574
)
Costs applicable to sales
$
49,063
$
37,953
$
39,311
$
24,352
$
—
$
150,679
Inventory Adjustments
45
(9,490
)
(362
)
147
—
(9,660
)
By-product credit
—
—
(233
)
(124
)
—
(357
)
Adjusted costs applicable to
sales
$
49,108
$
28,463
$
38,716
$
24,375
$
—
$
140,662
Metal Sales
Gold ounces
29,285
8,071
27,666
19,764
—
84,786
Silver ounces
1,854,695
682,677
—
5,828
—
2,543,200
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
51
%
50
%
100
%
100
%
Silver
49
%
50
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
855
$
1,763
$
1,399
$
1,233
Silver ($/oz)
$
12.97
$
20.85
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2022
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)
$
52,611
$
36,985
$
45,532
$
22,918
$
1,259
$
159,305
Amortization
(9,386
)
(4,710
)
(8,622
)
(2,061
)
(1,259
)
(26,038
)
Costs applicable to sales
$
43,225
$
32,275
$
36,910
$
20,857
$
—
$
133,267
Inventory Adjustments
(303
)
(8,001
)
92
(106
)
—
(8,318
)
By-product credit
—
—
(245
)
(392
)
—
(637
)
Adjusted costs applicable to
sales
$
42,922
$
24,274
$
36,757
$
20,359
$
—
$
124,312
Metal Sales
Gold ounces
28,242
5,928
22,834
18,207
75,211
Silver ounces
1,796,028
638,116
—
16,138
—
2,450,282
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
48
%
42
%
100
%
100
%
Silver
52
%
58
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
730
$
1,720
$
1,610
$
1,118
Silver ($/oz)
$
12.43
$
22.06
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Year Ended December 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)
$
189,717
$
151,427
$
187,998
$
104,617
$
4,797
$
638,556
Amortization
(36,062
)
(20,187
)
(54,933
)
(11,038
)
(4,797
)
(127,017
)
Costs applicable to sales
$
153,655
$
131,240
$
133,065
$
93,579
$
—
$
511,539
Inventory Adjustments
(203
)
(8,015
)
(512
)
(256
)
—
(8,986
)
By-product credit
—
—
(370
)
(2,208
)
—
(2,578
)
Adjusted costs applicable to
sales
$
153,452
$
123,225
$
132,183
$
91,115
$
—
$
499,975
Metal Sales
Gold ounces
108,806
27,697
122,181
91,663
350,347
Silver ounces
6,805,816
3,241,624
—
86,397
—
10,133,837
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
38
%
100
%
100
%
Silver
53
%
62
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
663
$
1,691
$
1,082
$
994
Silver ($/oz)
$
11.95
$
23.57
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 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)
$
48,719
$
42,939
$
53,884
$
24,735
$
1,268
$
171,545
Amortization
(9,985
)
(5,433
)
(15,992
)
(2,411
)
(1,268
)
(35,089
)
Costs applicable to sales
$
38,734
$
37,506
$
37,892
$
22,324
$
—
$
136,456
Inventory Adjustments
(242
)
(7,483
)
(118
)
(53
)
—
(7,896
)
By-product credit
—
—
(123
)
(241
)
—
(364
)
Adjusted costs applicable to
sales
$
38,492
$
30,023
$
37,651
$
22,030
$
—
$
128,196
Metal Sales
Gold ounces
27,706
7,385
33,889
19,950
—
88,930
Silver ounces
1,813,884
800,195
—
2,614,079
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
47
%
42
%
100
%
100
%
Silver
53
%
58
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
653
$
1,707
$
1,111
$
1,104
Silver ($/oz)
$
11.25
$
21.76
$
—
Zinc ($/lb)
$
—
Lead ($/lb)
$
—
Reconciliation of Costs
Applicable to Sales for 2023 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
240,135
$
198,827
$
115,365
Amortization
(39,570
)
(39,229
)
(5,803
)
Costs applicable to sales
$
200,565
$
159,598
$
109,562
By-product credit
—
—
(759
)
Adjusted costs applicable to
sales
$
200,565
$
159,598
$
108,803
Metal Sales
Gold ounces
106,452
106,863
87,388
Silver ounces
6,802,113
—
32,346
Revenue Split
Gold
51%
100%
100%
Silver
49%
Adjusted costs applicable to
sales
Gold ($/oz)
$900 - $1,050
$1,500 - $1,700
$1,200 - $1,350
Silver ($/oz)
$14.25 - $15.25
Reconciliation of Costs
Applicable to Sales for 2022 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)
$
219,862
$
165,031
$
191,055
$
109,179
Amortization
(35,687
)
(22,218
)
(39,051
)
(7,811
)
Costs applicable to sales
$
184,175
$
142,813
$
152,004
$
101,368
By-product credit
—
—
—
(745
)
Adjusted costs applicable to
sales
$
184,175
$
142,813
$
152,004
$
100,623
Metal Sales
Gold ounces
107,034
37,072
113,890
78,757
Silver ounces
6,831,642
3,257,498
32,199
Revenue Split
Gold
51%
47%
100%
100%
Silver
49%
53%
Adjusted costs applicable to
sales
Gold ($/oz)
$825 - $925
$1,650 - $1,850
$1,300 - $1,400
$1,250 - $1,350
Silver ($/oz)
$12.75 - $13.75
$20.00 - $26.00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230222005352/en/
Coeur Mining, Inc. 200 S. Wacker Drive, Suite 2100 Chicago, IL
60606 Attention: Jeff Wilhoit, Director, Investor Relations Phone:
(312) 489-5800 www.coeur.com
Coeur Mining (NYSE:CDE)
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