Palmarejo rebounds
Timing of metal sales versus production impacts financial results
The Company produced 3.8 million ounces of silver and 56,913 ounces of gold during the first quarter 2013. Silver and gold production at Palmarejo increased 6% and 15%, respectively, compared to the prior quarter while costs declined significantly from
The Company reaffirmed its 2013 full-year production guidance of 18.0-19.5 million ounces of silver and 250,000-265,000 ounces of gold. Coeur’s full-year cash operating cost1 guidance is being revised to
During the first quarter, the Company successfully completed a
- Silver production totaled 3.8 million ounces, a 22% decrease from the first quarter 2012 and level with fourth quarter 2012.
- Gold production totaled 56,913 ounces, up 30% from the first quarter 2012 and down 6% from fourth quarter 2012.
- Metal sold of 3.1 million silver ounces and 51,926 gold ounces resulted in lower metal sales during the quarter as a result of quarter-end timing.
- Average realized prices were
$30.30 per silver ounce and$1,630 per gold ounce, down 7% for silver and 4% for gold from the first quarter 2012, and 7% lower for silver and 5% for gold compared with the fourth quarter 2012. - Cash operating costs for silver averaged
$8.73 per silver ounce1 compared with$8.97 per silver ounce1 in the fourth quarter 2012.Kensington’s cash operating costs averaged$1,055 per gold ounce1 compared with$1,065 per gold ounce1 in the fourth quarter 2012. - Adjusted earnings1 were
$6.8 million , or$0.08 per share, compared with$41.5 million , or$0.46 per share, in the first quarter 2012. Net income for the first quarter 2013 was$12.3 million , or$0.14 per share, compared with net income of$4.0 million , or$0.04 per share, in the first quarter 2012. - Cash, cash equivalents and short-term investments were
$332.8 million atMarch 31, 2013 , compared with$153.2 million a year ago. OnApril 16, 2013 ,$99.1 million was used as part of the consideration to acquire Orko Silver. - Subsequent to the issuance of 11.6 million common shares to Orko Silver shareholders on
April 16, 2013 , Coeur has 101.5 million in total shares outstanding atMay 8, 2013 .
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. | |||||||||
We are pleased that silver and gold production at Palmarejo rebounded at materially lower costs per ounce1 than the last quarter of 2012. Although production levels at our Palmarejo operation had a slow start to the year due to lower than planned grades, both March and April were strong months and we remain confident in our 2013 guidance for this important asset.
Since completion of the Orko Silver transaction, we have been actively building a project development team and commissioned a preliminary economic assessment (PEA) of the La Preciosa project by M3 Engineering, the results of which we expect to have by
Table 1: Financial Highlights (Unaudited)
(All amounts in millions, except per share amounts, average realized prices and gold ounces sold) | 1Q 2013 | 1Q 2012 | Quarter Variance | ||||||||||||||||||
Sales of Metal | $ | 171.8 | $ | 204.6 | (16 | %) | |||||||||||||||
Production Costs | $ | 88.8 | $ | 92.6 | (4 | %) | |||||||||||||||
EBITDA(1) | $ | 61.3 | $ | 96.8 | (37 | %) | |||||||||||||||
Adjusted Earnings(1) | $ | 6.8 | $ | 41.5 | (84 | %) | |||||||||||||||
Adjusted Earnings Per Share(1) | $ | 0.08 | $ | 0.46 | (83 | %) | |||||||||||||||
Net Income | $ | 12.3 | $ | 4.0 | 230 | % | |||||||||||||||
Earnings Per Share | $ | 0.14 | $ | 0.04 | 250 | % | |||||||||||||||
Operating Cash Flow(1) | $ | 58.7 | $ | 93.8 | (37 | %) | |||||||||||||||
Cash Flow From Operating Activities | $ | 12.9 | $ | 17.0 | (24 | %) | |||||||||||||||
Capital Expenditures | $ | 12.8 | $ | 31.6 | (59 | %) | |||||||||||||||
Cash, Cash Equivalents & Short-Term Investments | $ | 332.8 | $ | 153.2 | 117 | % | |||||||||||||||
Total Debt(1) (net of debt discount) | $ | 305.3 | $ | 122.0 | 150 | % | |||||||||||||||
Weighted Average Shares Issued & Outstanding | 89.9 | 89.6 | | % | |||||||||||||||||
Average Realized Price Per Ounce – Silver | $ | 30.30 | $ | 32.61 | (7 | %) | |||||||||||||||
Average Realized Price Per Ounce – Gold | $ | 1,630 | $ | 1,702 | (4 | %) | |||||||||||||||
Silver Ounces Sold | 3.1 | 4.3 | (28 | %) | |||||||||||||||||
Gold Ounces Sold | 51,926 | 38,884 | 34 | % | |||||||||||||||||
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. | ||
First quarter net metal sales were
Silver contributed 53% of the Company’s total metal sales in the first quarter 2013 compared with 68% in the first quarter 2012 due to increased gold production at the Company’s
Consolidated production costs were
Prior to changes in working capital, Coeur generated
On a U.S. GAAP basis, the Company realized net income of
Coeur reports a non-U.S. GAAP metric of adjusted earnings1 as a measure of operating income, which excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. Adjusted earnings1 were
Capital expenditures were
Cash, cash equivalents and short-term investments were
Coeur and
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. | ||
Table 2: Operational Highlights: Production
(silver ounces in thousands) | 1Q 2013 | 1Q 2012 | Quarter Variance | |||||||||||||||||||
Silver | Gold | Silver | Gold | Silver | Gold | |||||||||||||||||
Palmarejo | 1,646 | 22,965 | 2,483 | 31,081 | (34 | %) | (26 | %) | ||||||||||||||
San Bartolomé | 1,391 | | 1,591 | | (13 | %) | n.a. | |||||||||||||||
Rochester | 648 | 8,742 | 441 | 5,292 | 47 | % | 65 | % | ||||||||||||||
Martha(1) | | | 123 | 84 | n.a. | n.a. | ||||||||||||||||
Kensington | | 25,206 | | 7,444 | n.a. | 239 | % | |||||||||||||||
Endeavor | 150 | | 248 | | (40 | %) | n.a. | |||||||||||||||
Total | 3,835 | 56,913 | 4,886 | 43,901 | (22 | %) | 30 | % | ||||||||||||||
1. | The Martha mine in Argentina ceased production at the end of the third quarter 2012. | ||
Table 3: Operational Highlights: Cash Operating Costs Per Ounce1
1Q 2013 | 1Q 2012 | Quarter Variance | |||||||||||||||||||
Palmarejo | $ | 2.20 | $ | (2.27 | ) | 197 | % | ||||||||||||||
San Bartolomé | 13.27 | 10.21 | 30 | % | |||||||||||||||||
Rochester | 13.54 | 23.35 | (42 | %) | |||||||||||||||||
Martha(1) | | 46.48 | n.a. | ||||||||||||||||||
Endeavor | 17.30 | 16.64 | 4 | % | |||||||||||||||||
Total | $ | 8.73 | $ | 6.29 | 39 | % | |||||||||||||||
Kensington | $ | 1,055 | $ | 2,709 | (61 | %) | |||||||||||||||
1. | The Martha mine in Argentina ceased production at the end of the third quarter 2012. | ||
Palmarejo,
- Palmarejo produced 1.65 million ounces of silver and 22,965 ounces of gold at cash operating costs of
$2.20 per silver ounce1 for the first quarter. In the fourth quarter of 2012, Palmarejo produced 1.55 million ounces of silver and 19,998 ounces of gold at cash operating costs of$7.55 per silver ounce1. - Palmarejo’s underground and open pit mining rates improved and stabilized during the first quarter compared to the last four months of 2012. Silver and gold ore grades from both the open pit and from underground operations are generally expected to continue increasing during the remainder of the year as they have in March and April.
- Palmarejo’s mine rescue team earned first place and the first aid response team second place in their respective competitions at the
Northern Mexico Mine Rescue and First Aid Competition held inmid-March 2013 . The Company’s subsidiary Coeur Mexicana was also recognized by theMexican Centre for Philanthropy with the Socially Responsible Business Distinction Award for the exemplary Palmarejo operations for the fifth year in a row. - Sales and operating cash flow1 totaled
$57.4 million and$31.5 million , respectively, in the first quarter 2013. - Capital expenditures were
$5.3 million during this quarter.
San Bartolomé,
- San Bartolomé produced 1.4 million ounces of silver at cash operating costs of
$13.27 per silver ounce1. In the fourth quarter of 2012, San Bartolomé produced 1.3 million ounces of silver at cash operating costs of$13.97 per silver ounce1. - The Company is in the process of increasing processing capacity approximately 10%-15% by investing
$17.0 – $20.0 million during 2013. This expansion is expected to have a less than two-year payback and increase the mine’s annual production to over 6.0 million ounces of silver for the next several years at reduced cash operating costs per ounce1. This expansion project remains on-schedule to be completed late this year.
- In celebration of the city of
Potosi’s bicentennial, San Bartolomé donated silver bars which were made into commemorative medallions for the government. - Sales and operating cash flow1 totaled
$33.1 million and$11.9 million , respectively, in the first quarter 2013. - Capital expenditures were
$0.5 million during this quarter.
Rochester produced 648,000 ounces of silver and 8,742 ounces of gold, up 47% and 65% respectively, over the first quarter 2012. Cash operating costs per silver ounce1 were$13.54 , which were materially lower than first quarter 2012, but higher than fourth quarter 2012.- In the fourth quarter 2012,
Rochester produced 828,000 ounces of silver and 12,054 ounces of gold at cash operating costs of$2.17 per silver ounce1. First quarter production was lower due to poor weather and lower than planned crushing rates. - The Company is investing approximately
$4.0 million during 2013 to expand the capacity of the primary crusher from 9.0 million tons to 14.0 million tons. Crusher throughput is expected to ramp up to achieve 1.2-1.4 million tons crushed monthly in the second half of 2013, leading to higher second half silver and gold production. - In addition, the Company is expanding the mine’s heap leach capacity to approximately 67.0 million tons at an estimated capital cost of approximately
$15.0 million . This planned expansion will accommodate sustained higher production rates driven by the processing of ore contained in historic stockpiles. These stockpiles were created during the mine’s 26-year operating history when gold and silver prices were significantly lower than current market prices. - On
May 1, 2013 ,Rochester presentedNevada GovernorBrian Sandoval with a 1,000-ounce silver bar to be made into 1,000 commemorative coins to mark the state’s sesquicentennial. - Sales and operating cash flow1 totaled
$39.5 million and$17.4 million , respectively, in the first quarter 2013. - Capital expenditures were
$3.3 million during this quarter.
Kensington produced 25,206 ounces of gold at cash operating costs of$1,055 per ounce1, significantly improved over the first quarter 2012, which was affected by the temporary scale back in production fromNovember 2011 untilApril 2012 to allow for the completion of several critical underground and surface infrastructure projects.- Production during the fourth quarter 2012 totaled 28,717 gold ounces at cash operating costs of
$1,065 per ounce.1 Kensington’s mill throughput at 129,057 tons was consistent with the fourth quarter 2012. Average mill head grade of 0.20 oz/t was 13% lower than the fourth quarter 2012, but 11% higher than first quarter 2012.- The gold grade is expected to gradually improve during the remaining quarters of 2013 as higher-grade stopes are mined and processed.
- Rebuilds of generators during the first quarter limited backfilling rates, which negatively impacted overall efficiency and costs.
- Sales and operating cash flow1 totaled
$39.3 million and$15.2 million , respectively, for the first quarter 2013. - Capital expenditures were
$3.3 million during this quarter.
La Preciosa,
- The acquisition of Orko Silver closed on
April 16 for total consideration of the approximately$280 million ($99.1 million in cash, 11.6 million Coeur shares and 1.6 million Coeur warrants.) Joe Phillips was recently named the Company’sChief Development Officer, bringing international mine development experience, including the successful construction of two mines inMexico . He is responsible for the development of La Preciosa and other capital projects.- Coeur has engaged M3 Engineering to prepare a PEA by the end of the second quarter 2013. M3 has built over 16 mines and processing plants in
Mexico and is a leading engineering and construction company to the mining industry inMexico .
- Following the PEA, Coeur intends to commence with basic engineering and full feasibility work in the second half of 2013, along with infill and development drilling.
- Optimization of the operating plan at the feasibility stage is expected to enhance project economics.
- A strong development team is being established at the corporate office and in
Durango, Mexico .
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. | ||||||||||
Organizational Update
As previously announced in Coeur’s
Exploration Update
During the first quarter, the Company invested
Coeur’s exploration program utilized up to 10 drill rigs and a trenching crew: four drills at Palmarejo, three at
Palmarejo,
- Drilling for discoveries of new mineralization was conducted around the Palmarejo surface and underground mines to test new targets generated in 2012.
- Drilling was performed underground on the 108 zone at Palmarejo and on the surface at the
Las Animas zone at the southeastern part of the Guadalupe deposit to upgrade the confidence of and extend the known mineralized zones. Results received from both areas have been largely favorable and are expected to extend and upgrade the current mineralization at the 108 zone and atLas Animas .- At the 108 zone, hole DC3-108C-0091 intercepted 19.12 meters (62.7 feet) true width grading 124.7 grams/tonne silver (3.64 ounces/ton) and 3.62 grams/tonne gold (0.11 ounce/ton), and hole DC3-108C-0094 with 3.64 meters (11.9 feet) true width grading 1,561.3 grams/tonne silver (45.63 ounces/ton) and 33.13 grams/tonne gold (0.97 ounce/ton).
- At
Las Animas , hole TDGH-509 intercepted 5.9 meters (19.4 feet) true width grading 108.3 grams/tonne silver (3.16 ounces/ton) and 0.82 grams/tonne gold (0.024 ounce/ton), and hole TDGH-519 with 4.7 meters (15.4 feet) true width grading 697.7 grams/tonne silver (20.35 ounces/ton) and 6.94 grams/tonne gold (0.20 ounce/ton). Both intercepts were within 100 meters (328 feet) of surface.
- At the 108 zone, hole DC3-108C-0091 intercepted 19.12 meters (62.7 feet) true width grading 124.7 grams/tonne silver (3.64 ounces/ton) and 3.62 grams/tonne gold (0.11 ounce/ton), and hole DC3-108C-0094 with 3.64 meters (11.9 feet) true width grading 1,561.3 grams/tonne silver (45.63 ounces/ton) and 33.13 grams/tonne gold (0.97 ounce/ton).
- The third phase of metallurgical sampling at
La Patria , a silver-gold near surface deposit located approximately 9 kilometers from the main Palmarejo mine, continued to test the amenability of the current mineralized zones to cyanidation recovery methods.
- Drilling during the first quarter was mostly devoted to production definition drilling in order to develop stoping (mining) blocks from year-end reserves.
- Exploration drilling focused on upgrading and expanding existing mineralized zones to be used in subsequent reserve estimation, mostly at zones 10 and 50 of the main
Kensington deposit. - In addition, drilling was performed at the Comet target, which is situated about 5,000 feet (1,500 meters) southeast of the high-grade, narrow vein Raven deposit. Assays are pending.
- New assay results from the Kensington South zone drilled in the fourth quarter 2012 showed potential for Kensington-style mineralization from this large, relatively untested area. Kensington South is situated south of the main
Kensington deposit. To facilitate future drilling, construction of a new cross-cut drift began in the first quarter with completion of 430 feet (131 meters) of the planned 750 feet (229 meters).
- Continuing the exploration focus of 2012, drilling was performed to define grades and tons of existing stockpiles. In the first quarter, over 27,600 feet (8,400 meters) of reverse circulation rotary drilling was completed on two of the stockpiles called South and Limerick with favorable results reported.
At Limerick, hole LMD12-131 intercepted 20 feet true width grading 0.9 ounce/ton silver and 0.003 ounce/ton gold and hole LMD12-145 with 180 feet true width grading 0.67 ounce/ton silver and 0.002 ounce/ton gold.
- Drilling is also planned for the West and Charlie stockpiles during 2013. This work, along with metallurgical sampling, will continue throughout most of this year.
San Bartolomé,
- All of the work in the first quarter was devoted to upgrading the confidence and extending known mineralization of the Pucka Loma zone in the northwest sector of the San Bartolomé mine area.
- The next stage of work will be to prepare a new model of the mineralization to be used in reserve estimation. To date, two-thirds of the completed trenches encountered bedrock at the base of the gravel (pallaco) mineralized layers. The remainder represents an opportunity to extend the thickness of the mineralized gravels.
- Exploration trenching will now shift to new targets around the mine.
2013 Outlook
Coeur’s estimated 2013 silver and gold production guidance is unchanged and the mine-by-mine 2013 production outlook is provided in Table 4 below.
Coeur has adjusted its full-year 2013 projected cash operating costs1 to
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. | ||
Table 4: 2013 Production Outlook
(silver ounces in thousands) | Country | Silver | Gold | |||||||||
Palmarejo | Mexico | 7,700-8,300 | 98,000-105,000 | |||||||||
San Bartolomé | Bolivia | 5,300-5,700 | | |||||||||
Rochester | Nevada, USA | 4,500-4,900 | 44,000-46,000 | |||||||||
Endeavor | Australia | 500-600 | | |||||||||
Kensington | Alaska, USA | | 108,000-114,000 | |||||||||
Total | 18,000-19,500 | 250,000-265,000 | ||||||||||
Conference Call Information
Coeur will hold a conference call and webcast at www.coeur.com to discuss the Company’s first quarter 2013 results at
Dial-In Numbers: | (855) 546-8317 (U.S. and Canada) | ||||||||||
(660) 422-4718 (International) | |||||||||||
Conference ID: | 353 85 539 | ||||||||||
A replay of the call will be available on Coeur’s website through
Replay number: | (855) 859-2056 (U.S. and Canada) | ||||||||||
International replay: | (404) 537-3406 (International) | ||||||||||
Conference ID: | 353 85 539 | ||||||||||
About Coeur
Cautionary Statement
This news release contains forward-looking statements within the meaning of securities legislation in
Cautionary Note to
Non-U.S. GAAP Measures
We supplement the reporting of our financial information determined under
Table 5: Operating Statistics from Continuing Operations – (Unaudited): | ||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Silver Operations: | ||||||||||||||||||
Palmarejo | ||||||||||||||||||
Tons milled | 573,170 | 528,543 | ||||||||||||||||
Ore grade/Ag oz | 3.65 | 6.12 | ||||||||||||||||
Ore grade/Au oz | 0.04 | 0.06 | ||||||||||||||||
Recovery/Ag oz | 78.8 | % | 76.8 | % | ||||||||||||||
Recovery/Au oz | 90.1 | % | 93.3 | % | ||||||||||||||
Silver production ounces | 1,646,397 | 2,482,814 | ||||||||||||||||
Gold production ounces | 22,965 | 31,081 | ||||||||||||||||
Cash operating cost/oz | $ | 2.20 | $ | (2.27 | ) | |||||||||||||
Cash cost/oz | $ | 2.20 | $ | (2.27 | ) | |||||||||||||
Total production cost/oz | $ | 20.14 | $ | 13.04 | ||||||||||||||
San Bartolomé | ||||||||||||||||||
Tons milled | 374,985 | 378,104 | ||||||||||||||||
Ore grade/Ag oz | 4.09 | 4.62 | ||||||||||||||||
Recovery/Ag oz | 90.6 | % | 91.2 | % | ||||||||||||||
Silver production ounces | 1,391,099 | 1,591,292 | ||||||||||||||||
Cash operating cost/oz | $ | 13.27 | $ | 10.21 | ||||||||||||||
Cash cost/oz | $ | 14.32 | $ | 11.49 | ||||||||||||||
Total production cost/oz | $ | 18.13 | $ | 14.02 | ||||||||||||||
Martha | ||||||||||||||||||
Tons milled | | 34,069 | ||||||||||||||||
Ore grade/Ag oz | | 4.43 | ||||||||||||||||
Ore grade/Au oz | | 0.01 | ||||||||||||||||
Recovery/Ag oz | | % | 81.4 | % | ||||||||||||||
Recovery/Au oz | | % | 64.6 | % | ||||||||||||||
Silver production ounces | | 122,793 | ||||||||||||||||
Gold production ounces | | 84 | ||||||||||||||||
Cash operating cost/oz | $ | | $ | 46.48 | ||||||||||||||
Cash cost/oz | $ | | $ | 47.15 | ||||||||||||||
Total production cost/oz | $ | | $ | 51.85 | ||||||||||||||
Rochester | ||||||||||||||||||
Tons milled | 2,439,757 | 2,009,518 | ||||||||||||||||
Ore grade/Ag oz | 0.52 | 0.55 | ||||||||||||||||
Ore grade/Au oz | 0.003 | 0.004 | ||||||||||||||||
Recovery/Ag oz | 50.8 | % | 40.2 | % | ||||||||||||||
Recovery/Au oz | 108.6 | % | 62.1 | % | ||||||||||||||
Silver production ounces | 647,589 | 441,337 | ||||||||||||||||
Gold production ounces | 8,742 | 5,292 | ||||||||||||||||
Cash operating cost/oz | $ | 13.54 | $ | 23.35 | ||||||||||||||
Cash cost/oz | $ | 16.24 | $ | 24.75 | ||||||||||||||
Total production cost/oz | $ | 19.61 | $ | 28.67 | ||||||||||||||
Endeavor | ||||||||||||||||||
Tons milled | 194,519 | 195,846 | ||||||||||||||||
Ore grade/Ag oz | 1.61 | 3.35 | ||||||||||||||||
Recovery/Ag oz | 47.8 | % | 37.8 | % | ||||||||||||||
Silver production ounces | 149,594 | 247,958 | ||||||||||||||||
Cash operating cost/oz | $ | 17.30 | $ | 16.64 | ||||||||||||||
Cash cost/oz | $ | 17.30 | $ | 16.64 | ||||||||||||||
Total production cost/oz | $ | 22.81 | $ | 23.27 | ||||||||||||||
Gold Operation: | ||||||||||||||||||
Kensington | ||||||||||||||||||
Tons milled | 129,057 | 43,936 | ||||||||||||||||
Ore grade/Au oz | 0.20 | 0.18 | ||||||||||||||||
Recovery/Au oz | 96.2 | % | 93.4 | % | ||||||||||||||
Gold production ounces | 25,206 | 7,444 | ||||||||||||||||
Cash operating cost/oz | $ | 1,055 | $ | 2,709 | ||||||||||||||
Cash cost/oz | $ | 1,055 | $ | 2,709 | ||||||||||||||
Total production cost/oz | $ | 1,586 | $ | 3,598 | ||||||||||||||
CONSOLIDATED PRODUCTION TOTALS | ||||||||||||||||||
Total silver ounces | 3,834,679 | 4,886,194 | ||||||||||||||||
Total gold ounces | 56,913 | 43,901 | ||||||||||||||||
Silver Operations: | ||||||||||||||||||
Cash operating cost per oz – silver | $ | 8.73 | $ | 6.29 | ||||||||||||||
Cash cost per oz – silver | $ | 9.56 | $ | 6.85 | ||||||||||||||
Total production cost oz – silver | $ | 19.43 | $ | 16.26 | ||||||||||||||
Gold Operation: | ||||||||||||||||||
Cash operating cost per oz – gold | $ | 1,055 | $ | 2,709 | ||||||||||||||
Cash cost per oz – gold | $ | 1,055 | $ | 2,709 | ||||||||||||||
Total production cost per oz – gold | $ | 1,586 | $ | 3,598 | ||||||||||||||
CONSOLIDATED SALES TOTALS | ||||||||||||||||||
Silver ounces sold | 3,076,535 | 4,290,049 | ||||||||||||||||
Gold ounces sold | 51,926 | 38,884 | ||||||||||||||||
Realized price per silver ounce | $ | 30.30 | $ | 32.61 | ||||||||||||||
Realized price per gold ounce | $ | 1,630 | $ | 1,702 | ||||||||||||||
Table 6: COEUR DALENE MINES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||||||
March 31, 2013 | December 31, 2012 | |||||||||||||||||
ASSETS | (In thousands, except share data) | |||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||
Cash and cash equivalents | $ | 331,311 | $ | 125,440 | ||||||||||||||
Short term investments | 1,498 | 999 | ||||||||||||||||
Receivables | 68,182 | 62,438 | ||||||||||||||||
Ore on leach pad | 26,748 | 22,991 | ||||||||||||||||
Metal and other inventory | 184,690 | 170,670 | ||||||||||||||||
Deferred tax assets | 2,627 | 2,458 | ||||||||||||||||
Restricted assets | | 396 | ||||||||||||||||
Prepaid expenses and other | 22,324 | 20,790 | ||||||||||||||||
637,380 | 406,182 | |||||||||||||||||
NON-CURRENT ASSETS | ||||||||||||||||||
Property, plant and equipment, net | 667,696 | 683,860 | ||||||||||||||||
Mining properties, net | 1,969,952 | 1,991,951 | ||||||||||||||||
Ore on leach pad, non-current portion | 24,073 | 21,356 | ||||||||||||||||
Restricted assets | 24,882 | 24,970 | ||||||||||||||||
Marketable securities | 23,498 | 27,065 | ||||||||||||||||
Receivables, non-current portion | 39,061 | 48,767 | ||||||||||||||||
Debt issuance costs, net | 12,429 | 3,713 | ||||||||||||||||
Deferred tax assets | 946 | 955 | ||||||||||||||||
Other | 23,765 | 12,582 | ||||||||||||||||
TOTAL ASSETS | $ | 3,423,682 | $ | 3,221,401 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||
Accounts payable | $ | 52,636 | $ | 57,482 | ||||||||||||||
Accrued liabilities and other | 9,964 | 10,002 | ||||||||||||||||
Accrued income taxes | 6,186 | 27,108 | ||||||||||||||||
Accrued payroll and related benefits | 13,816 | 21,306 | ||||||||||||||||
Accrued interest payable | 4,283 | 478 | ||||||||||||||||
Current portion of debt and capital leases | 6,130 | 55,983 | ||||||||||||||||
Current portion of royalty obligation | 61,541 | 65,104 | ||||||||||||||||
Current portion of reclamation and mine closure | 758 | 668 | ||||||||||||||||
Deferred tax liabilities | 53 | 121 | ||||||||||||||||
155,367 | 238,252 | |||||||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||||
Long-term debt and capital leases | 307,791 | 3,460 | ||||||||||||||||
Non-current portion of royalty obligation | 119,681 | 141,879 | ||||||||||||||||
Reclamation and mine closure | 35,252 | 34,670 | ||||||||||||||||
Deferred tax liabilities | 585,073 | 577,488 | ||||||||||||||||
Other long-term liabilities | 24,684 | 27,372 | ||||||||||||||||
1,072,481 | 784,869 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||
SHAREHOLDERS EQUITY | ||||||||||||||||||
Common stock, par value $0.01 per share; authorized 150,000,000 shares, issued and outstanding 89,743,142 at March 31, 2013 and 90,342,338 at December 31, 2012 | 897 | 903 | ||||||||||||||||
Additional paid-in capital | 2,590,075 | 2,601,254 | ||||||||||||||||
Accumulated deficit | (383,886 | ) | (396,156 | ) | ||||||||||||||
Accumulated other comprehensive loss | (11,252 | ) | (7,721 | ) | ||||||||||||||
2,195,834 | 2,198,280 | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | $ | 3,423,682 | $ | 3,221,401 | ||||||||||||||
Table 7: COEUR DALENE MINES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||
Sales of metal | $ | 171,797 | $ | 204,564 | ||||||||||||||
Production costs applicable to sales | (88,784 | ) | (92,554 | ) | ||||||||||||||
Depreciation, depletion and amortization | (50,436 | ) | (52,592 | ) | ||||||||||||||
Gross profit | 32,577 | 59,418 | ||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||
Administrative and general | 10,227 | 7,596 | ||||||||||||||||
Exploration | 6,841 | 6,567 | ||||||||||||||||
Loss on impairment and other | 119 | | ||||||||||||||||
Pre-development, care, maintenance and other | 4,485 | 1,068 | ||||||||||||||||
Total cost and expenses | 21,672 | 15,231 | ||||||||||||||||
OPERATING INCOME | 10,905 | 44,187 | ||||||||||||||||
OTHER INCOME AND EXPENSE | ||||||||||||||||||
Fair value adjustments, net | 17,796 | (23,113 | ) | |||||||||||||||
Interest income and other, net | 3,821 | 5,007 | ||||||||||||||||
Interest expense, net of capitalized interest | (9,732 | ) | (6,670 | ) | ||||||||||||||
Total other income and expense, net | 11,885 | (24,776 | ) | |||||||||||||||
Income before income taxes | 22,790 | 19,411 | ||||||||||||||||
Income tax provision | (10,520 | ) | (15,436 | ) | ||||||||||||||
NET INCOME | $ | 12,270 | $ | 3,975 | ||||||||||||||
BASIC AND DILUTED INCOME PER SHARE | ||||||||||||||||||
Basic income per share: | ||||||||||||||||||
Net income | $ | 0.14 | $ | 0.04 | ||||||||||||||
Diluted income per share: | ||||||||||||||||||
Net income | $ | 0.14 | $ | 0.04 | ||||||||||||||
Weighted average number of shares of common stock | ||||||||||||||||||
Basic | 89,948 | 89,591 | ||||||||||||||||
Diluted | 90,036 | 89,821 | ||||||||||||||||
Table 8: COEUR DALENE MINES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
(In thousands) | ||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||
Net income | $ | 12,270 | $ | 3,975 | ||||||||||||||
Add (deduct) non-cash items | ||||||||||||||||||
Depreciation, depletion and amortization | 50,436 | 52,592 | ||||||||||||||||
Accretion of discount on debt and other assets, net | 522 | 541 | ||||||||||||||||
Accretion of royalty obligation | 3,670 | 4,580 | ||||||||||||||||
Deferred income taxes | 7,425 | 7,677 | ||||||||||||||||
Fair value adjustments, net | (16,042 | ) | 21,778 | |||||||||||||||
Gain (loss) on foreign currency transactions | (465 | ) | 299 | |||||||||||||||
Share-based compensation | 1,096 | 2,137 | ||||||||||||||||
Gain on sale of assets | (868 | ) | | |||||||||||||||
Loss on impairment | 119 | | ||||||||||||||||
Other non-cash charges | 561 | 256 | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | 3,968 | (2,956 | ) | |||||||||||||||
Prepaid expenses and other | (2,240 | ) | 4,774 | |||||||||||||||
Inventories | (20,493 | ) | (24,722 | ) | ||||||||||||||
Accounts payable and accrued liabilities | (27,025 | ) | (53,929 | ) | ||||||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 12,934 | 17,002 | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||
Purchase of short term investments and marketable securities | (4,649 | ) | (1,035 | ) | ||||||||||||||
Proceeds from sales and maturities of short term investments | 4,822 | 20,018 | ||||||||||||||||
Capital expenditures | (12,827 | ) | (31,647 | ) | ||||||||||||||
Investment in Other Assets | (11,565 | ) | | |||||||||||||||
Other | 955 | 185 | ||||||||||||||||
CASH USED IN INVESTING ACTIVITIES | (23,264 | ) | (12,479 | ) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||
Proceeds from issuance of notes and bank borrowings | 300,000 | | ||||||||||||||||
Payments on long-term debt, capital leases, and associated costs | (55,340 | ) | (5,166 | ) | ||||||||||||||
Payments on gold production royalty | (15,448 | ) | (21,374 | ) | ||||||||||||||
Share repurchases | (12,557 | ) | | |||||||||||||||
Other | (454 | ) | (1,112 | ) | ||||||||||||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 216,201 | (27,652 | ) | |||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 205,871 | (23,129 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 125,440 | 175,012 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 331,311 | $ | 151,883 |
Table 9: Operating Cash Flow Reconciliation – (Unaudited) | ||||||||||||||||||||||||||||||
(in thousands) | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Cash provided by operating activities | $ | 12,934 | $ | 61,694 | $ | 79,735 | $ | 113,203 | $ | 17,002 | ||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||
Receivables and other current assets | (3,968 | ) | (8,040 | ) | 5,648 | (10,319 | ) | 2,956 | ||||||||||||||||||||||
Prepaid expenses and other | 2,240 | (3,054 | ) | 2,481 | 2,857 | (4,774 | ) | |||||||||||||||||||||||
Inventories | 20,493 | 12,919 | 13,762 | (3,097 | ) | 24,722 | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | 27,025 | 15,706 | (24,341 | ) | (14,276 | ) | 53,929 | |||||||||||||||||||||||
Operating Cash Flow | $ | 58,724 | $ | 79,225 | $ | 77,285 | $ | 88,368 | $ | 93,835 | ||||||||||||||||||||
Table 10: EBITDA Reconciliation – (Unaudited) | ||||||||||||||||||||||||||||||
(in thousands) | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Net income (loss) | $ | 12,270 | $ | 37,550 | $ | (15,821 | ) | $ | 22,973 | $ | 3,975 | |||||||||||||||||||
Income tax provision | 10,520 | 11,839 | 17,475 | 23,862 | 15,436 | |||||||||||||||||||||||||
Interest expense, net of capitalized interest | 9,732 | 4,591 | 7,351 | 7,557 | 6,670 | |||||||||||||||||||||||||
Interest and other income | (3,821 | ) | 14 | (12,664 | ) | 3,221 | (5,007 | ) | ||||||||||||||||||||||
Fair value adjustments, net | (17,796 | ) | (21,235 | ) | 37,648 | (16,039 | ) | 23,113 | ||||||||||||||||||||||
Loss on debt extinguishments | | 1,036 | | | | |||||||||||||||||||||||||
Depreciation and depletion | 50,436 | 52,397 | 52,844 | 61,024 | 52,592 | |||||||||||||||||||||||||
EBITDA | $ | 61,341 | $ | 86,192 | $ | 86,833 | $ | 102,598 | $ | 96,779 | ||||||||||||||||||||
Table 11: Adjusted Earnings Reconciliation – (Unaudited) | |||||||||||||||||||||||||||||
(in thousands) | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | ||||||||||||||||||||||||
Net income (loss) | $ | 12,270 | $ | 37,550 | $ | (15,821 | ) | $ | 22,973 | $ | 3,975 | ||||||||||||||||||
Share based compensation | 1,096 | 1,476 | 3,364 | 1,033 | 2,137 | ||||||||||||||||||||||||
Deferred income tax provision (benefit) | 7,425 | 3,738 | (4,942 | ) | 9,690 | 7,677 | |||||||||||||||||||||||
Interest expense, accretion of royalty obligation | 3,670 | 3,946 | 4,276 | 5,492 | 4,580 | ||||||||||||||||||||||||
Fair value adjustments, net | (17,796 | ) | (21,235 | ) | 37,648 | (16,039 | ) | 23,113 | |||||||||||||||||||||
Loss on impairment | 119 | (281 | ) | 1,293 | 4,813 | | |||||||||||||||||||||||
Loss on debt extinguishments | | 1,036 | | | | ||||||||||||||||||||||||
Adjusted Earnings | $ | 6,784 | $ | 26,230 | $ | 25,818 | $ | 27,962 | $ | 41,482 | |||||||||||||||||||
Table 12: Results of Operations by Mine – Palmarejo – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 57.4 | $ | 79.4 | $ | 102.6 | $ | 136.4 | $ | 123.7 | ||||||||||||||||||||
Production costs | $ | 26.7 | $ | 40.4 | $ | 48.7 | $ | 62.5 | $ | 45.9 | ||||||||||||||||||||
EBITDA | $ | 28.7 | $ | 36.6 | $ | 51.6 | $ | 72.3 | $ | 76.5 | ||||||||||||||||||||
Operating income (loss) | $ | (0.2 | ) | $ | 4.5 | $ | 17.7 | $ | 29.5 | $ | 38.8 | |||||||||||||||||||
Operating cash flow | $ | 31.5 | $ | 33.2 | $ | 54.9 | $ | 63.6 | $ | 81.4 | ||||||||||||||||||||
Capital expenditures | $ | 5.3 | $ | 8.8 | $ | 11.3 | $ | 11.2 | $ | 7.2 | ||||||||||||||||||||
Gross profit | $ | 1.8 | $ | 6.8 | $ | 20.0 | $ | 31.1 | $ | 40.1 | ||||||||||||||||||||
Gross margin | 3.1 | % | 8.7 | % | 19.5 | % | 22.8 | % | 32.4 | % | ||||||||||||||||||||
1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | ||||||||||||||||||||||||||
Underground Operations: | ||||||||||||||||||||||||||||||
Tons mined | 151,232 | 139,925 | 143,747 | 162,820 | 158,030 | |||||||||||||||||||||||||
Average silver grade (oz/t) | 4.22 | 4.70 | 6.13 | 8.91 | 7.82 | |||||||||||||||||||||||||
Average gold grade (oz/t) | 0.09 | 0.08 | 0.09 | 0.14 | 0.11 | |||||||||||||||||||||||||
Surface Operations: | ||||||||||||||||||||||||||||||
Tons mined | 388,651 | 465,498 | 424,380 | 321,758 | 347,609 | |||||||||||||||||||||||||
Average silver grade (oz/t) | 3.45 | 2.62 | 2.79 | 4.14 | 5.32 | |||||||||||||||||||||||||
Average gold grade (oz/t) | 0.03 | 0.02 | 0.03 | 0.04 | 0.04 | |||||||||||||||||||||||||
Processing: | ||||||||||||||||||||||||||||||
Total tons milled | 573,170 | 563,123 | 532,775 | 489,924 | 528,543 | |||||||||||||||||||||||||
Average recovery rate Ag | 78.8 | % | 84.2 | % | 90.0 | % | 84.2 | % | 76.8 | % | ||||||||||||||||||||
Average recovery rate Au | 90.1 | % | 91.4 | % | 102.5 | % | 92.0 | % | 93.3 | % | ||||||||||||||||||||
Silver production – oz (000’s) | 1,646 | 1,555 | 1,833 | 2,365 | 2,483 | |||||||||||||||||||||||||
Gold production – oz | 22,965 | 19,998 | 23,702 | 31,258 | 31,081 | |||||||||||||||||||||||||
Cash operating costs/Ag Oz | $ | 2.20 | $ | 7.55 | $ | 3.75 | $ | (0.85 | ) | $ | (2.27 | ) | ||||||||||||||||||
Table 13: Co-Product Cash Cost Per Ounce for Palmarejo – (Unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2013 | |||||||||||
Palmarejo | |||||||||||
Total cash operating costs | $ | 40,881 | |||||||||
Total cash costs | $ | 40,881 | |||||||||
Revenue | |||||||||||
Silver | 59 | % | |||||||||
Gold | 41 | % | |||||||||
Ounces produced | |||||||||||
Silver | 1,646,397 | ||||||||||
Gold | 22,965 | ||||||||||
Total cash operating costs per ounce | |||||||||||
Silver | $ | 14.64 | |||||||||
Gold | $ | 731 | |||||||||
Total cash costs per ounce | |||||||||||
Silver | $ | 14.64 | |||||||||
Gold | $ | 731 | |||||||||
Table 14: Reconciliation of EBITDA for Palmarejo – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 57.4 | $ | 79.4 | $ | 102.6 | $ | 136.4 | $ | 123.7 | ||||||||||||||||||||
Production costs applicable to sales | (26.7 | ) | (40.4 | ) | (48.7 | ) | (62.5 | ) | (45.9 | ) | ||||||||||||||||||||
Administrative and general | | | | | | |||||||||||||||||||||||||
Exploration | (2.0 | ) | (2.4 | ) | (2.3 | ) | (1.6 | ) | (1.3 | ) | ||||||||||||||||||||
Pre-development care and maintenance and other | | | | | | |||||||||||||||||||||||||
EBITDA | $ | 28.7 | $ | 36.6 | $ | 51.6 | $ | 72.3 | $ | 76.5 | ||||||||||||||||||||
Table 15: Operating Cash Flow for Palmarejo – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Cash provided by operating activities | $ | 10.1 | $ | 22.9 | $ | 58.2 | $ | 90.5 | $ | 65.3 | ||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||
Receivables and other current assets | 6.6 | (1.3 | ) | (4.1 | ) | (12.5 | ) | 5.4 | ||||||||||||||||||||||
Prepaid expenses and other | (0.6 | ) | (1.0 | ) | (0.8 | ) | 0.5 | (1.9 | ) | |||||||||||||||||||||
Inventories | 13.3 | 3.6 | 2.5 | (11.5 | ) | 4.6 | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | 2.1 | 9.0 | (0.9 | ) | (3.4 | ) | 8.0 | |||||||||||||||||||||||
Operating Cash Flow | $ | 31.5 | $ | 33.2 | $ | 54.9 | $ | 63.6 | $ | 81.4 | ||||||||||||||||||||
Table 16: Results of Operations by Mine – San Bartolomé – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 33.1 | $ | 37.0 | $ | 46.2 | $ | 53.4 | $ | 41.4 | ||||||||||||||||||||
Production costs | $ | 15.7 | $ | 15.1 | $ | 19.9 | $ | 22.8 | $ | 13.6 | ||||||||||||||||||||
EBITDA | $ | 17.3 | $ | 21.9 | $ | 26.2 | $ | 30.5 | $ | 27.7 | ||||||||||||||||||||
Operating income | $ | 8.9 | $ | 17.5 | $ | 22.0 | $ | 26.6 | $ | 23.5 | ||||||||||||||||||||
Operating cash flow | $ | 11.9 | $ | 17.4 | $ | 11.2 | $ | 23.0 | $ | 20.8 | ||||||||||||||||||||
Capital expenditures | $ | 0.5 | $ | 3.3 | $ | 4.4 | $ | 7.8 | $ | 10.2 | ||||||||||||||||||||
Gross profit | $ | 12.7 | $ | 17.6 | $ | 22.1 | $ | 26.5 | $ | 23.5 | ||||||||||||||||||||
Gross margin | 38.4 | % | 47.7 | % | 47.8 | % | 49.6 | % | 56.8 | % | ||||||||||||||||||||
1Q 2013 | 4Q 2012 | 3Q 2012 | 1Q 2012 | 1Q 2012 | ||||||||||||||||||||||||||
Tons milled | 374,985 | 363,813 | 344,349 | 391,005 | 378,104 | |||||||||||||||||||||||||
Average silver grade (oz/t) | 4.1 | 4.2 | 4.9 | 4.3 | 4.6 | |||||||||||||||||||||||||
Average recovery rate | 90.6 | % | 88 | % | 90.3 | % | 88.3 | % | 91.2 | % | ||||||||||||||||||||
Silver production (000’s) | 1,391 | 1,343 | 1,526 | 1,470 | 1,591 | |||||||||||||||||||||||||
Cash operating costs/Ag Oz | $ | 13.27 | $ | 13.97 | $ | 12.13 | $ | 11.05 | $ | 10.21 | ||||||||||||||||||||
Table 17: Reconciliation of EBITDA for San Bartolomé – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 33.1 | $ | 37.1 | $ | 46.2 | $ | 53.4 | $ | 41.4 | ||||||||||||||||||||
Production costs applicable to sales | (15.7 | ) | (15.1 | ) | (19.9 | ) | (22.8 | ) | (13.6 | ) | ||||||||||||||||||||
Administrative and general | | | | | | |||||||||||||||||||||||||
Exploration | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||
Pre-development care and maintenance and other | | | | | | |||||||||||||||||||||||||
EBITDA | $ | 17.3 | $ | 21.9 | $ | 26.2 | $ | 30.5 | $ | 27.7 | ||||||||||||||||||||
Table 18: Operating Cash Flow for San Bartolomé – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Cash provided by (used in) operating activities | $ | (5.4 | ) | $ | 9.5 | $ | 19.8 | $ | 31.0 | $ | (27.4 | ) | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||
Receivables and other current assets | (4.2 | ) | (3.0 | ) | 7.1 | (0.6 | ) | 2.2 | ||||||||||||||||||||||
Prepaid expenses and other | (3.8 | ) | (1.4 | ) | 0.8 | 4.4 | (2.8 | ) | ||||||||||||||||||||||
Inventories | 3.2 | 9.6 | 5.0 | (3.4 | ) | 4.7 | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | 22.1 | 2.7 | (21.5 | ) | (8.4 | ) | 44.1 | |||||||||||||||||||||||
Operating Cash Flow | $ | 11.9 | $ | 17.4 | $ | 11.2 | $ | 23.0 | $ | 20.8 | ||||||||||||||||||||
Table 19: Results of Operations by Mine – Kensington – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 39.3 | $ | 43.0 | $ | 36.5 | $ | 21.1 | $ | 10.4 | ||||||||||||||||||||
Production costs | $ | 23.6 | $ | 27.0 | $ | 26.9 | $ | 16.1 | $ | 17.1 | ||||||||||||||||||||
EBITDA | $ | 15.0 | $ | 14.7 | $ | 8.1 | $ | 4.7 | $ | (6.9 | ) | |||||||||||||||||||
Operating income/(loss) | $ | 1.6 | $ | 0.9 | $ | (3.5 | ) | $ | (5.0 | ) | $ | (13.6 | ) | |||||||||||||||||
Operating cash flow | $ | 15.2 | $ | 14.5 | $ | 7.3 | $ | 0.6 | $ | (7.8 | ) | |||||||||||||||||||
Capital expenditures | $ | 3.3 | $ | 7.8 | $ | 9.0 | $ | 9.3 | $ | 10.9 | ||||||||||||||||||||
Gross profit/(loss) | $ | 2.3 | $ | 2.2 | $ | (1.9 | ) | $ | (4.7 | ) | $ | (13.3 | ) | |||||||||||||||||
Gross margin | 5.9 | % | 5.1 | % | (5.2 | )% | (22.3 | )% | (127.9 | )% | ||||||||||||||||||||
1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | ||||||||||||||||||||||||||
Tons mined | 116,747 | 140,626 | 113,770 | 84,632 | 56,815 | |||||||||||||||||||||||||
Tons milled | 129,057 | 129,622 | 123,428 | 97,794 | 43,936 | |||||||||||||||||||||||||
Average gold grade (oz/t) | 0.20 | 0.23 | 0.21 | 0.23 | 0.18 | |||||||||||||||||||||||||
Average recovery rate | 96.2 | % | 96.9 | % | 95.9 | % | 94.2 | % | 93.4 | % | ||||||||||||||||||||
Gold production | 25,206 | 28,718 | 24,391 | 21,572 | 7,444 | |||||||||||||||||||||||||
Cash operating costs/Ag Oz | $ | 1,055 | $ | 1,065 | $ | 1,298 | $ | 1,348 | $ | 2,709 | ||||||||||||||||||||
Table 20: Reconciliation of EBITDA for Kensington – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 39.3 | $ | 43.0 | $ | 36.5 | $ | 21.1 | $ | 10.4 | ||||||||||||||||||||
Production costs applicable to sales | (23.6 | ) | (27.0 | ) | (26.9 | ) | (16.1 | ) | (17.1 | ) | ||||||||||||||||||||
Administrative and general | | | | | | |||||||||||||||||||||||||
Exploration | (0.7 | ) | (1.3 | ) | (1.5 | ) | (0.3 | ) | (0.2 | ) | ||||||||||||||||||||
Pre-development care and maintenance and other | | | | | | |||||||||||||||||||||||||
EBITDA | $ | 15.0 | $ | 14.7 | $ | 8.1 | $ | 4.7 | $ | (6.9 | ) | |||||||||||||||||||
Table 21: Operating Cash Flow for Kensington – (Unaudited) | ||||||||||||||||||||||||||||||
1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | ||||||||||||||||||||||||||
Cash provided by (used in) operating activities | $ | 11.7 | $ | 16.5 | $ | 5.0 | $ | (12.5 | ) | $ | 1.1 | |||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||
Receivables and other current assets | 1.8 | (2.6 | ) | 2.3 | 4.6 | (10.3 | ) | |||||||||||||||||||||||
Prepaid expenses and other | (0.1 | ) | (0.4 | ) | 0.5 | (0.5 | ) | (1.0 | ) | |||||||||||||||||||||
Inventories | | (0.3 | ) | 1.8 | 9.9 | 3.3 | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | 1.8 | 1.3 | (2.3 | ) | (0.9 | ) | (0.9 | ) | ||||||||||||||||||||||
Operating Cash Flow | $ | 15.2 | $ | 14.5 | $ | 7.3 | $ | 0.6 | $ | (7.8 | ) | |||||||||||||||||||
Table 22: Results of Operations by Mine – Rochester – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 39.5 | $43.2 | $36.2 | $34.2 | $ | 18.8 | |||||||||||||||||||||||
Production costs | $ | 21.5 | $22.9 | $21.0 | $20.8 | $ | 9.6 | |||||||||||||||||||||||
EBITDA | $ | 17.5 | $21.4 | $12.9 | $11.6 | $ | 7.2 | |||||||||||||||||||||||
Operating income | $ | 15.2 | $19.2 | $10.9 | $9.5 | $ | 5.5 | |||||||||||||||||||||||
Operating cash flow | $ | 17.4 | $21.5 | $13.0 | $11.8 | $ | 7.2 | |||||||||||||||||||||||
Capital expenditures | $ | 3.3 | $1.5 | $4.8 | $2.9 | $ | 2.6 | |||||||||||||||||||||||
Gross profit | $ | 15.8 | $18.0 | $13.2 | $11.3 | $ | 7.6 | |||||||||||||||||||||||
Gross margin | 40.0 | % | 41.7 | % | 36.5 | % | 33.0 | % | 40.4 | % | ||||||||||||||||||||
1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | ||||||||||||||||||||||||||
Tons mined | 2,924,472 | 3,031,428 | 3,170,129 | 2,585,914 | 2,923,324 | |||||||||||||||||||||||||
Average silver grade (oz/t) | 0.52 | 0.51 | 0.52 | 0.63 | 0.55 | |||||||||||||||||||||||||
Average gold grade (oz/t) | 0.003 | 0.005 | 0.004 | 0.005 | 0.004 | |||||||||||||||||||||||||
Silver production (000’s) | 648 | 828 | 819 | 713 | 441 | |||||||||||||||||||||||||
Gold production | 8,742 | 12,055 | 10,599 | 10,120 | 5,292 | |||||||||||||||||||||||||
Cash operating costs/Ag Oz | $ | 13.54 | $2.17 | $9.58 | $9.83 | $ | 23.35 | |||||||||||||||||||||||
Table 23: Co-Product Cash Cost Per Ounce for Rochester – (Unaudited) | |||||||||||
Three months ended March 31, 2013 | |||||||||||
Rochester | |||||||||||
Total cash operating costs | $ | 23,057 | |||||||||
Total cash costs | $ | 24,807 | |||||||||
Revenue | |||||||||||
Silver | 55 | % | |||||||||
Gold | 45 | % | |||||||||
Ounces produced | |||||||||||
Silver | 647,589 | ||||||||||
Gold | 8,742 | ||||||||||
Total cash operating costs per ounce | |||||||||||
Silver | $ | 19.49 | |||||||||
Gold | $ | 1,194 | |||||||||
Total cash costs per ounce | |||||||||||
Silver | $ | 20.97 | |||||||||
Gold | $ | 1,284 | |||||||||
Table 24: Reconciliation of EBITDA for Rochester – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 39.5 | $ | 43.2 | $ | 36.2 | $ | 34.2 | $ | 18.8 | ||||||||||||||||||||
Production costs applicable to sales | (21.5 | ) | (22.9 | ) | (21.0 | ) | (20.8 | ) | (9.6 | ) | ||||||||||||||||||||
Administrative and general | | | | | | |||||||||||||||||||||||||
Exploration | (0.5 | ) | (0.6 | ) | (1.2 | ) | (1.1 | ) | (0.7 | ) | ||||||||||||||||||||
Pre-development care and maintenance and other | | 1.7 | (1.1 | ) | (0.7 | ) | (1.3 | ) | ||||||||||||||||||||||
EBITDA | $ | 17.5 | $ | 21.4 | $ | 12.9 | $ | 11.6 | $ | 7.2 | ||||||||||||||||||||
Table 25: Operating Cash Flow for Rochester – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Cash provided by (used in) operating activities | $ | 5.6 | $ | 18.2 | $ | 7.3 | $ | 10.1 | $ | (7.1 | ) | |||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||
Receivables and other current assets | (0.1 | ) | (0.6 | ) | 0.6 | (0.1 | ) | 0.3 | ||||||||||||||||||||||
Prepaid expenses and other | 4.1 | 0.3 | 0.2 | (1.0 | ) | 1.4 | ||||||||||||||||||||||||
Inventories | 3.7 | 0.9 | 6.5 | 3.9 | 11.2 | |||||||||||||||||||||||||
Accounts payable and accrued liabilities | 4.1 | 2.7 | (1.6 | ) | (1.1 | ) | 1.4 | |||||||||||||||||||||||
Operating Cash Flow | $ | 17.4 | $ | 21.5 | $ | 13.0 | $ | 11.8 | $ | 7.2 | ||||||||||||||||||||
Table 26: Results of Operations by Mine – Endeavor – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 3.0 | $ | 2.8 | $ | 4.1 | $ | 5.2 | $ | 6.7 | ||||||||||||||||||||
Production costs | $ | 1.3 | $ | 1.6 | $ | 2.0 | $ | 2.6 | $ | 2.7 | ||||||||||||||||||||
EBITDA | $ | 1.7 | $ | 1.3 | $ | 2.1 | $ | 2.6 | $ | 4.0 | ||||||||||||||||||||
Operating income | $ | 0.8 | $ | 0.8 | $ | 1.3 | $ | 1.1 | $ | 2.3 | ||||||||||||||||||||
Operating cash flow | $ | 1.7 | $ | 1.3 | $ | 1.7 | $ | 2.8 | $ | 4.2 | ||||||||||||||||||||
Capital expenditures | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||||
Gross profit | $ | 0.8 | $ | 0.8 | $ | 1.3 | $ | 1.1 | $ | 2.3 | ||||||||||||||||||||
Gross margin | 26.7 | % | 28.6 | % | 31.7 | % | 21.2 | % | 34.3 | % | ||||||||||||||||||||
1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | ||||||||||||||||||||||||||
Silver Production (000’s) | 150 | 105 | 140 | 240 | 248 | |||||||||||||||||||||||||
Cash operating costs/Ag Oz | $ | 17.30 | $ | 19.92 | $ | 15.97 | $ | 17.50 | $ | 16.64 | ||||||||||||||||||||
Table 27: Reconciliation of EBITDA for Endeavor – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Sales of metal | $ | 3.0 | $ | 2.8 | $ | 4.1 | $ | 5.2 | $ | 6.7 | ||||||||||||||||||||
Production costs applicable to sales | (1.3 | ) | (1.5 | ) | (2.0 | ) | (2.6 | ) | (2.7 | ) | ||||||||||||||||||||
Administrative and general | | | | | | |||||||||||||||||||||||||
Exploration | | | | | | |||||||||||||||||||||||||
Pre-development care and maintenance and other | | | | | | |||||||||||||||||||||||||
EBITDA | $ | 1.7 | $ | 1.3 | $ | 2.1 | $ | 2.6 | $ | 4.0 | ||||||||||||||||||||
Table 28: Operating Cash Flow for Endeavor – (Unaudited) | ||||||||||||||||||||||||||||||
in millions of US$ | 1Q 2013 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | |||||||||||||||||||||||||
Cash provided by operating activities | $ | 1.6 | $ | 1.6 | $ | 1.5 | $ | 3.6 | $ | 3.2 | ||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||
Receivables and other current assets | 0.1 | (0.3 | ) | 0.5 | (1.7 | ) | 1.7 | |||||||||||||||||||||||
Prepaid expenses and other | | | | | | |||||||||||||||||||||||||
Inventories | 0.3 | (0.3 | ) | (0.3 | ) | 0.2 | 0.6 | |||||||||||||||||||||||
Accounts payable and accrued liabilities | (0.3 | ) | 0.3 | 0.7 | (1.3 | ) | ||||||||||||||||||||||||
Operating Cash Flow | $ | 1.7 | $ | 1.3 | $ | 1.7 | $ | 2.8 | $ | 4.2 |
Source:
Coeur d’Alene Mines Corporation
Wendy Yang, Vice President, Investor Relations
(208) 665-0345
or
Stefany Bales, Director, Corporate Communications
(208) 667-8263
www.coeur.com