NYSE: CDE | TSX: CDM Superior proposal to acquire Orko Silver (Updated for 2012 mineral reserves and resources estimates from the original conference call presentation of February 13, 2013.) February 18, 2013 Exhibit 99.2 NYSE: CDE | TSX: CDM |
NYSE: CDE | TSX: CDM 2 Cautionary Statement This presentation contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including expectations regarding the enterprise value of Orko Silver Corp. (“Orko”), the value of Coeur d’Alene Mines Corporation (“Coeur”) shares and Orko shares, the consideration to be issued pursuant to the proposal, the ability of Coeur and Orko to consummate the transaction on the terms and in the manner contemplated thereby, and Coeur’s estimated production data, expected operating schedules, results of operations, mineral reserves and resources, expected capital costs and other expected operating data, share purchases and permit and other regulatory approvals. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “will,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual results, performance, achievements, production, operating schedules, results of operations, mineral reserves and resources, capital costs and permit and regulatory approvals could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those in the forward-looking statements include: (i) the risk factors set forth in Coeur’s reports on Form 10-K and Form 10-Q; (ii) the risk that permits necessary for the planned Rochester expansion may not be obtained, (iii) risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions); (iv) changes in the market prices of gold and silver; (v) uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays and disputed mining claims; (vi) any future labor disputes or work stoppages; (vii) uncertainties inherent in the estimation of gold and silver ore reserves; (vii) changes that could result from Coeur’s future acquisition of new mining properties or businesses; (ix) reliance on third parties to operate certain mines where Coeur owns silver production and reserves; (x) the loss of any third- party smelter to which Coeur markets silver and gold; (xi) effects of environmental and other governmental regulations; (xii) risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries; (xiii) the worldwide economic downturn and difficult conditions in the global capital and credit markets; and (xiv) Coeur’s possible inability to raise additional financing necessary to conduct its business, make payments or refinance its debt. 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 these forward-looking statements, whether as a result of new information, future events or otherwise. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Current resource estimates include disputed and undisputed claims at Rochester. While Coeur believes it holds a superior position in the ongoing claim dispute, Coeur believes an adverse legal outcome would cause it to modify resource estimates. Donald J. Birak, Coeur's Senior Vice President of Exploration and a qualified person under Canadian National Instrument 43-101, supervised the preparation of the scientific and technical information contained in this presentation. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur's properties, and the technical report for Orko’s La Preciosa property, as filed on SEDAR at www.sedar.com, the mineral resources estimates for the La Preciosa Property contained in this presentation are derived from the La Preciosa technical report. Donald J. Birak did not have access to, and did not verify, the data underlying the technical information respecting the La Preciosa property contained in this presentation. |
NYSE: CDE | TSX: CDM 3 Cautionary Statement (Cont’d) Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “measured,” “indicated,” “inferred”, and “resources” that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our most recent Form 10-K and Form 10-Q which may be obtained from us, or from the SEC’s website at http://www.sec.gov. This document relates to Coeur d’Alene Mines Corporation’s (“Coeur”) proposed acquisition (the “Transaction”) of Orko Silver Corp. Shares of Coeur’s common stock (the “Coeur Shares”) issuable upon (i) the exercise of warrants (the “Warrants”) to acquire Coeur Shares to be issued by Coeur in connection with the proposed Transaction and (ii) the exchange of exchangeable securities (the “Exchangeable Shares”) to be issued by a subsidiary of Coeur in connection with the proposed Transaction which may be registered pursuant to a registration statement on Form S-4 to be filed with the U.S. Securities and Exchange Commission (the “SEC”) or issued pursuant to an available exemption. This document is not a substitute for any registration statement or any other document that Coeur may file with the SEC or send to its shareholders in connection with the offer and/or issuance of Coeur Shares in connection with the exercise of the Warrants and exchange of the Exchangeable Shares. Investors who may receive Warrants or Exchangeable Shares in the Transaction are urged to read Coeur’s registration statement on Form S-4, if and when filed, including the prospectus, and all other relevant documents that may be filed with the SEC as and if they become available because they will contain important information about the issuance of Coeur Shares upon the exercise of any Warrants and exchange of any Exchangeable Shares. All documents, if and when filed, will be available free of charge at the SEC’s website (www.sec.gov). You may also obtain these documents by contacting Coeur’s Investor Relations department at Coeur d’Alene Mines Corporation; Investor Relations; (208) 665-0345; wyang@coeur.com. This document does not constitute an offer to sell or the solicitation of an offer to buy any securities. 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 cash operating costs, operating cash flow, adjusted earnings, and Adjusted EBITDA. 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 operating cash flow, adjusted earnings, and Adjusted EBITDA are important measures in assessing the Company's overall financial performance. |
NYSE: CDE | TSX: CDM 4 Transaction Highlights Attractive Orko’s key asset, the La Preciosa project, is one of the largest undeveloped silver deposits in the world Long-life mine potential with compelling economics assuming open pit mine plan Large-scale development opportunity with significant exploration upside Mining friendly jurisdiction with well-developed local infrastructure Further diversifies Coeur’s portfolio by jurisdiction and across a larger platform of assets Proven ability to develop large-scale, world class projects similar to La Preciosa Once developed, La Preciosa is expected to deliver significant growth to all Coeur shareholders Disciplined Accretive on an NAV and mineral resource¹ per share basis Acquisition represents just 18% of Coeur’s market cap Coeur’s cash flow and strong liquidity position available to support La Preciosa’s development Consistent with Coeur’s stated M&A strategy 1. Does not include inferred resources. Solidifies Coeur’s position as a leading growth-oriented silver producer Strategic |
NYSE: CDE | TSX: CDM 5 Transaction Summary Offer C$2.70 per share based on the closing price of Coeur’s shares on February 12, 2013 0.0815 Coeur shares and C$0.70 cash per Orko share (total cash component of C$100 million; cash / stock mix will be at the election of Orko shareholders, subject to pro-ration) In addition, Orko shareholders will receive 0.01118 warrants for each Orko share. Each full warrant is exchangeable for four years at a strike price of US$30 per common share of Coeur Represents a 25% premium to the implied value of Orko shares under the First Majestic transaction as of February 12, 2013, and 71% to the unaffected Orko share price on December 14, 2012 Structure Implies ~C$384 million in transaction value, including the value of warrants 74% stock / 26% cash consideration mix including warrants Utilizes C$100 million of Coeur existing cash and ~11.6 million new Coeur shares 89% CDE / 11% Orko pro forma ownership (not including warrants) Process and timing 5 business days for First Majestic to match from February 13, 2013 Proposed agreement subject to customary closing conditions and Orko shareholders’ vote No Coeur shareholder vote required Closing expected in 2Q 2013 Coeur pro forma Orko Board has unanimously concluded Coeur’s offer constitutes a Superior Proposal 1. See slide 7 and Appendix slides for tons, grade and effective date for La Preciosa mineral resources and Coeur’s mineral reserves and resources. Silver equivalents use gold and silver prices of $1,643 and $30.78 per ounce respectively; 2. For production estimates, refer to page 10. 871 million oz of Ag eq reserves and M&I resources; 261 million oz of Ag eq inferred resources¹ Potential for 27 million oz of combined annual pro forma silver production² |
NYSE: CDE | TSX: CDM 6 Benefits of the Transaction Adds significant new production and future cash flow to Coeur’s existing profile Enhances portfolio diversity over a larger number of assets Improved geopolitical risk profile Accretive to NAV and total mineral resources per share 1 Extensive drilling has identified large resource with expansion potential Supplements development profile and allows Coeur to deliver growth to all shareholders Once on-line, La Preciosa would represent Coeur’s third global top-ten silver mine as ranked by production Long mine life and significant cash flow contribution are expected to support other forms of returning of capital to shareholders Coeur Shareholders Coeur has the technical experience and the financial resources to successfully develop La Preciosa Superior proposal to the First Majestic stock offer Attractive consideration mix, with C$100 million cash component providing immediate value realization and upside participation through shares and warrants Opportunity to participate in the upside of La Preciosa with potential large-scale open pit mine plan Highly liquid Coeur shares trading at an attractive valuation, demonstrated by buyback program and analysts’ price targets Gain exposure to a diverse set of open pit and underground operations located in five different countries Attractive silver / gold profile of ~75% / ~25% pro forma for this transaction Orko Shareholders 1. Does not include inferred resources. |
NYSE: CDE | TSX: CDM 7 Overview of La Preciosa 1 Located in the Durango State of Mexico, 47 km northeast of the city of Durango and 45 minutes from an international airport Together with adjacent mineral concessions, project covers ~32,400 hectares of contiguous mining claims October 25, 2012: silver resource estimate of 99 million oz indicated and 140 million oz inferred (42% indicated & 58% inferred) +99% of Indicated mineral resources within an open pit configuration 1 ~91% of the potential resource value is silver (based upon $30.78 / Ag ounce Ag and $1,643 / Au ounce) Coeur envisions developing La Preciosa as a large-scale, open pit operation to maximize value Significant infrastructure in place Access by paved highway 8 km to national power grid 8 km to rail lines Located in the heart of Mexico’s prolific Sierra Madre Mining Belt, which hosts large silver deposits such as Fresnillo Contained Metal Tonnes (million) Ag Grade (g/t) Ag (million oz) Au (million oz) Indicated resources Open-Pit 29.6 104 99.0 0.2 Underground 0.1 99 0.2 0.0 Total indicated 29.7 104 99.2 0.2 Inferred Resources Open-Pit 47.7 86 131.9 0.2 Underground 2.0 124 7.6 0.0 Total Inferred 49.7 87 139.5 0.3 Orko Project Historic/producing mines or Ag deposits Legend 1. Based on information derived from the technical report entitled, “La Preciosa Silver Deposit, Updated Mineral Resource Estimate Statement, Durango, Mexico”, prepared by Mining Plus, dated November 5, 2012 as filed on SEDAR. Durango MEXICO Guanacevi La Cienaga La Parilla San Martin Colorada Fresnillo Zacatecas Penasquito San Sebastian Sierra de Ramirez Velardeña Platosa Avino El Cairo Coneto Pitarrilla Inde Durango Gomez Palacio/Torreon La Preciosa Project |
NYSE: CDE | TSX: CDM 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Mexico is a Mining-Friendly Jurisdiction 2012 ranking of countries for mining investment Mexico rankings by category Note: For simplicity, rankings shown do not reflect ties. Mexico rank Economic system Tie 5 Political system Tie 6 Social issues Tie 13 Permitting delays Tie 2 Corruption 5 Currency stability Tie 7 Tax regime Tie 1 57 52 51 45 43 41 39 37 36 36 33 32 32 30 29 29 28 27 26 25 22 22 19 17 16 Australia Canada Chile Brazil Mexico United States Colombia Botswana Peru Ghana Namibia Mongolia Tanzania Argentina India Philippines China Indonesia Zambia South Africa Kazakhstan Papua New Guinea D.R. Congo Bolivia Russia Total points Source: Behre Dolbear’s – 2012 ranking of countries for mining investment. Rank |
NYSE: CDE | TSX: CDM 9 La Preciosa Expected to Become One of the World’s Leading Silver Mines Production Benchmarking Source: The Silver Institute, 2011. 1. For production estimates, refer to page 10. La Preciosa future production potential of ~7-9 million oz 1 32.2 30.3 13.6 10.1 8.8 8.4 7.1 6.5 6.1 5.9 5.9 5.5 5.3 Rank Mine/Country Operating Company Production (Million of ozs) 1 Cannington, Australia BHP Billiton 2 Fresnillo, Mexico Fresnillo plc 3 Dukat, Russia JSC Polymetal 4 Uchucchacua, Peru Compania de Minas Buenaventura 5 Palmarejo, Mexico Coeur 6 Palancata, Peru Hochschild Mining/International Minerals 7 Gumuskoy, Turkey Eti Gumus, A.S. 8 San Bartolomé, Bolivia Coeur 9 Pirquitas, Argentina Silver Standard 10 Greens Creek, U.S. Hecla Mining 11 Arcata, Peru Hochschild Mining 12 Saucito, Mexico Fresnillo plc 13 San Jose, Argentina Hochschild Mining/McEwen Mining 14 Imiter, Morocco Societe Metallurgique d’Imiter 15 Alamo Dorado, Mexico Pan American Silver Corp. |
NYSE: CDE | TSX: CDM 10 Opportunity to Develop La Preciosa as a Large-Scale, Open Pit Mine 2011 PEA¹ Highlights Re-Engineering La Preciosa Project Outlines an open pit/underground operation Mine life of 12 years Annual production of 6.8 million oz of Ag and 12,000 oz of Au Capital costs of $270 million 5,000 tpd operation Cash costs of $11.84/oz Ag Base case IRR of >20% Coeur believes developing La Preciosa as an open pit adds significant long-term value Significant diligence conducted and re-engineering under way Coeur believes developing La Preciosa as a large- tonnage, open pit operation will maximize value ~7-9 million oz of annual silver production² +15 year initial mine life Reduced mining risk Enhance overall project economics Coeur believes shallow dipping vein, rock mechanics, and grade issues make underground mining challenging AMEC commenced work on a new PEA 1. 2. 7-9 million ounces contributed by La Preciosa using assumptions and parameters contained in 2011 PEA and assumption of open-pit mining with higher throughput. The PEA, June 30, 2011, (“2011 PEA”) is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. |
NYSE: CDE | TSX: CDM 11 A Premier Americas Focused Silver Mining Company… Palmarejo San Bartolomé Rochester Kensington La Preciosa Operating NAV = ~$1.8bn Orko Coeur Pro forma Source: Select equity research. Endeavor Operating NAV = ~$0.4bn Operating NAV = ~$2.2bn Operating NAV = ~$1.8bn Orko Coeur Pro forma Operating NAV = ~$0.4bn Operating NAV = ~$2.2bn Mexico Bolivia United States Australia 41% 29% 28% 1% 52% 24% 23% 1% 100% 41% 28% 16% 13% 1% 100% 34% 23% 13% 11% 1% 19% Operating NAV contribution by mine and jurisdiction ($bn) – Increased Focus on Mining-Friendly Jurisdictions |
NYSE: CDE | TSX: CDM 12 …With Increased Growth Potential Source: Equity research, Public disclosure, Company projections. 1. For production estimates, refer to page 10. Note: Company information where available and equity research. ~7-9 million¹ ~25-27 18 Million ounces Pro forma for La Preciosa 2012 Silver Production – Orko Provides Significant Growth Potential 0 5 10 15 20 25 30 35 40 45 Fresnillo Coeur pro forma Pan American Silver Wheaton Coeur Hochschild Silver Standard First Majestic Hecla Silvercorp Endeavour Fortuna |
NYSE: CDE | TSX: CDM 13 Expanding Portfolio of Assets, with a Track Record of Developing, Starting-Up, and Operating Large-Scale Projects Overview of Coeur d’Alene assets Operation Investment Feasibility stage project Note: R&R figures pro forma for La Preciosa. Improved portfolio Coeur has recent experience with similar sized projects that are relevant to La Preciosa San Bartolomé: 2008 start up; $238 million capital cost Palmarejo: 2009 start up; $353 million capital cost Kensington: 2010 start up; $435 million capital cost Rochester: 2011 re-start; $27 million capital cost XX Start up/re-start year La Preciosa provides Coeur with an enhanced growth profile, reduced geopolitical risk, and greater diversity in mining-friendly Mexico Kensington Mine, Alaska 2012: 82,125 oz Au 2013E: 108,000 - 114,000 oz Au 2010 Rochester Mine, Nevada 2012: 2.8 million oz Ag; 38,071 oz Au 2013E: 4.5 - 4.9 million oz Ag; 44,000 -46,000 oz Au 2011 Palmarejo Mine, Mexico 2012: 8.2 million oz Ag; 106,038 oz Au 2013E: 7.7 - 8.3 million oz Ag; 98,000 – 105,000 oz Au 2009 La Preciosa, Mexico Indicated resources: Ag : 99 million oz Au: 0.2 million oz Inferred resources: Ag: 140 million oz Au: 0.3 million oz Joaquin Silver-Gold Project¹ Argentina San Bartolomé Mine, Bolivia 2012: 5.9 million oz Ag 2013E: 5.3 - 5.7 million oz Ag 2008 Endeavor Mine, Australia 2012: 0.7 million oz Ag 2013E: 0.5 – 0.6 million oz Ag Total 1,2 Silver Ounces (millions) Gold Ounces (000s) Proven & Probable Reserves 220 1,988 Measured & Indicated Resources 404 2,618 Inferred Resources 206 1,035 1. Mineral reserves and resources effective December 31, 2012 except Endeavor effective June 30, 2012. See slides in the Appendix for tons and grade pertaining to reserves and resources; 2. Includes La Preciosa |
NYSE: CDE | TSX: CDM 14 Transaction Highlights Attractive Disciplined 1. Based on La Preciosa indicated mineral resources only. Solidifies Coeur’s position as a leading growth-oriented silver producer Strategic Orko’s key asset, the La Preciosa project, is one of the largest undeveloped silver deposits in the world Long-life mine potential with compelling economics assuming open pit mine plan Large-scale development opportunity with significant exploration upside Mining friendly jurisdiction with well-developed local infrastructure Further diversifies Coeur’s portfolio by jurisdiction and across a larger platform of assets Proven ability to develop large-scale, world class projects similar to La Preciosa Once developed, La Preciosa is expected to deliver significant growth to all Coeur shareholders Accretive on an NAV and mineral resource¹ per share basis Acquisition represents just 18% of Coeur’s market cap Coeur’s cash flow and strong liquidity position available to support La Preciosa’s development Consistent with Coeur’s stated M&A strategy |
15 Appendix |
Substantial and Sustainable Annual Production Base (Not Including La Preciosa) Silver Production 2012 Silver Production by Mine (millions of ounces) 2012 Gold Production by Mine (millions of ounces) Gold Production 106,038 38,071 257 82,125 Palmarejo Rochester Martha Kensington 46,115 72,112 157,062 220,382 226,491 250,000- 265,000 2008 2009 2010 2011 2012 2013E 12.0 16.9 16.8 19.1 18.0 18.0-19.5 2008 2009 2010 2011 2012 2013E Palmarejo Rochester Martha Endeavor San Bartolomé 2.8 5.9 8.2 NYSE: CDE | TSX: CDM 16 0.3 0.7 |
NYSE: CDE | TSX: CDM 17 Palmarejo – Solid Silver and Gold Producer and Major Cash Flow Generator Quarterly Production & Cash Operating Costs¹ World’s 5th largest primary silver mine. Silver-gold operation located in northern Mexico Expect to commence initial underground production from Guadalupe satellite operation in 2013 Proven and probable reserves of 53.1 million silver oz and 665,000 gold oz² M&I resources of 45.7 million silver oz and 964,000 gold oz and inferred resources of 22.1 million silver oz and 457,000 gold oz² First nine months 2012 metal sales of $362.7 million First nine months 2012 operating cash flow¹ of $199.9 million 2013E: 7.7 - 8.3 million silver oz and 98,000 – 105,000 gold oz 1. Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation. Coeur expects to report cash operating costs per ounce with financial results on or about 2/21/13. 2. At Dec. 31, 2012. The Company expects to be filing its latest technical report on SEDAR, associated with its 2012 operating results. The last technical report as filed on SEDAR was “Palmarejo Project, SW Chihuahua State, Mexico, Technical Report”, dated January 1, 2012. |
NYSE: CDE | TSX: CDM 18 San Bartolomé – Long-Lived Silver Producer Quarterly Production & Cash Operating Costs¹ World’s 8th largest primary silver mine 100% silver operation in Bolivia Proven and probable reserves of 109.1 million silver oz² M&I resources of 45.5 million silver oz and inferred resources of 3.3 million silver oz² First nine months 2012 metal sales of $141.0 million First nine months 2012 operating cash flow¹ of $56.8 million 2013E: 5.3 – 5.7 million silver oz 2.0 1.6 1.5 1.5 1.3 $9.18 $10.21 $11.05 $12.13 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 Silver (millions) Cash Op Costs per Silver Ounce¹ 1. Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation. Coeur expects to report cash operating costs per ounce with financial results on or about 2/21/13. 2. At Dec. 31, 2012. The Company expects to be filing its latest technical report on SEDAR, associated with its 2012 operating results. The last technical report as filed on SEDAR was “San Bartolomé, Potosi, Bolivia, Technical Report”, dated January 1, 2012. |
NYSE: CDE | TSX: CDM 19 Rochester – Production Continues to Rise Quarterly Production & Cash Operating Costs¹ Silver-gold operation located in Nevada In operation since 1986 Proven and probable reserves of 44.9 million silver oz and 308,000 gold oz² M&I resources of 120.7 million silver oz and 865,000 gold oz and inferred resources of 27.2 million silver oz and 123,000 gold oz² First nine months 2012 metal sales of $89.2 million First nine months 2012 operating cash flow¹ of $32.0 million 2013E production of 4.5 – 4.9 million silver oz and 44,000 – 46,000 gold oz High return investment opportunity with planned expansion of leach pad capacity 1. Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation. Coeur expects to report cash operating costs per ounce with financial results on or about 2/21/13. 2. At Dec. 31, 2012. The Company expects to be filing its latest technical report on SEDAR, associated with its 2012 operating results. The last technical report as filed on SEDAR was “Rochester, Nevada, USA, Technical Report”, dated January 1, 2011. |
NYSE: CDE | TSX: CDM 20 Kensington – Record Quarterly Production in 4Q 2012 Quarterly Production & Cash Operating Costs¹ 100% gold operation located in southeast Alaska Proven and probable reserves of 1.0 million gold oz² M&I resources of 0.5 million gold oz and inferred resources of 0.2 million gold oz² First nine months 2012 metal sales of $68.0 million First nine months 2012 operating cash flow¹ of $0.1 million; resumed full production rate in April 2012 2013E: 108,000 – 114,000 gold oz 13,047 7,444 21,572 24,391 28,717 $1,807 $2,709 $1,348 $1,298 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 Gold Cash Op Costs per Silver Ounce¹ 1. Non-GAAP measure. Please see reconciliation tables to U.S. GAAP in appendix to this presentation. Coeur expects to report cash operating costs per ounce with financial results on or about 2/21/13. 2. At Dec. 31, 2012. The Company expects to be filing its latest technical report on SEDAR, associated with its 2012 operating results. The last technical report as filed on SEDAR was “Kensington Gold Mine, Southeast Alaska, USA”, dated January 1, 2010. |
NYSE: CDE | TSX: CDM 21 Pipeline Growth: Joaquin Silver-Gold Project Advancing Significant Silver Asset 1. At Dec. 31, 2012. The Company expects to be filing its latest technical report on SEDAR, associated with its 2012 operating results. The last technical report as filed on SEDAR was “Joaquin Project, Santa Cruz, Argentina Technical Report”, dated September 21, 2012. Potential significant silver producer Consolidated ownership by acquiring remaining 49% interest in Joaquin in December 2012 Potential to add significant silver production and cash flow with further exploration upside Project fits Company’s stated financial and operating criteria Measured and Indicated resources of 65.2 million silver ounces¹ and Inferred resources of 3.1 million silver ounces Mineral resources being updated to include all drilling data subsequent to September 2012 Technical Report Accelerating feasibility work Positive results from initial metallurgical tests Subsequent development decision will be based on economics and assessment of political and business environment in Argentina Exploration upside Doubled silver Measured and Indicated resources in September 2012¹ Continuing exploration drilling to expand and upgrade resources The La Negra and La Morocha deposits account for less than 5% of the total 28,400 ha land package, double the size of Palmarejo |
NYSE: CDE | TSX: CDM 22 Non-GAAP to U.S. GAAP Reconciliation Adjusted EBITDA¹ Adjusted EBITDA Reconciliation (in thousands of US$) LTM 3Q 2012 3Q 2012 2Q 2012 1Q 2012 4Q 2011 Net income $22,491 $(15,821) $22,973 $3,975 $11,364 Income tax provision 109,163 17,475 23,862 15,436 52,390 Interest expense, net of capitalized interest 29,800 7,351 7,557 6,670 8,222 Interest and other income (9,753) (12,664) 3,221 (5,007) 4,697 Fair value adjustments, net 25,687 37,648 (16,039) 23,113 (19,035) Loss on debt extinguishments 3,886 – – – 3,886 Depreciation and depletion 224,626 52,844 61,024 52,592 58,166 Adjusted EBITDA $405,900 $86,833 $102,598 $96,779 $119,690 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 23 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Operating Cash Flow – Consolidated¹ 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. Operating Cash Flow Reconciliation (in thousands of US$) 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 Cash provided by operating activities $79,735 $113,203 $17,002 $87,412 $181,911 Changes in operating assets and liabilities Receivables and other current assets 5,648 (10,319) 2,956 (8,904) 10,513 Prepaid expenses and other 2,481 2,857 (4,774) 8,839 8,697 Inventories 13,762 (3,097) 24,722 17,574 (23,234) Accounts payable and accrued liabilities (24,342) (14,276) 53,929 (7,452) (26,930) Operating cash flow $77,284 $88,368 $93,835 $97,469 $150,957 |
NYSE: CDE | TSX: CDM 24 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Operating Cash Flow – Palmarejo¹ 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. Operating Cash Flow Reconciliation (in thousands of US$) 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 Cash provided by operating activities $58.2 $90.5 $65.3 $70.9 $104.7 Changes in operating assets and liabilities Receivables and other current assets (4.1) (12.5) 5.4 5.7 (0.8) Prepaid expenses and other (0.8) 0.5 (1.9) (3.2) 3.4 Inventories 2.5 (11.5) 4.6 9.9 (16.2) Accounts payable and accrued liabilities (0.9) (3.4) 8.0 (5.9) 0.1 Operating cash flow $54.9 $63.6 $81.4 $77.4 $91.2 Operating Cash Flow – San Bartolomé¹ Operating Cash Flow Reconciliation (in thousands of US$) 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 Cash provided by operating activities $19.8 $31.0 $(27.4) $22.3 $78.1 Changes in operating assets and liabilities Receivables and other current assets 7.1 (0.7) 2.2 0.2 5.0 Prepaid expenses and other 0.8 4.4 (2.8) 4.6 0.2 Inventories 5.0 (3.4) 4.7 2.9 (7.2) Accounts payable and accrued liabilities (21.5) (6.5) 44.1 (1.3) (26.5) Operating cash flow $11.2 $24.8 $20.8 $28.7 $49.6 |
NYSE: CDE | TSX: CDM 25 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Operating Cash Flow – Kensington¹ 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. Operating Cash Flow Reconciliation (in thousands of US$) 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 Cash provided by operating activities $5.0 $(12.5) $1.1 $9.3 $8.6 Changes in operating assets and liabilities Receivables and other current assets 2.3 4.6 (10.3) (5.1) 5.0 Prepaid expenses and other 0.5 (0.5) (1.0) 0.5 1.3 Inventories 1.8 9.9 3.3 (10.1) (1.3) Accounts payable and accrued liabilities (2.3) (0.9) (0.9) 1.3 0.9 Operating cash flow $7.3 $0.6 $(7.8) $(4.1) $14.5 Operating Cash Flow – Rochester¹ Operating Cash Flow Reconciliation (in thousands of US$) 3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 Cash provided by operating activities $7.3 $10.1 $(7.1) $(11.4) $0.9 Changes in operating assets and liabilities Receivables and other current assets 0.6 (0.1) 0.3 (0.2) 0.2 Prepaid expenses and other 0.2 (1.0) 1.4 0.7 0.7 Inventories 6.5 3.9 11.2 14.2 5.9 Accounts payable and accrued liabilities (1.6) (1.1) 1.4 0.1 (5.0) Operating cash flow $13.0 $11.8 $7.2 $3.4 $2.7 |
NYSE: CDE | TSX: CDM 26 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. (In thousands except ounces and per ounce costs) Three months ended September 30,2012 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $6,878 $18,504 $31,660 $7,853 $4,461 $2,241 $71,597 Royalties – 1,879 – 1,441 100 – 3,420 Production taxes – – – – – – – Total cash costs (Non-US GAAP) $6,878 $20,383 $31,660 $9,294 $4,561 $2,241 $75,017 Add/Subtract: Third party smelting costs – – (3,141) – (541) (605) (4,287) By-product credit 39,034 – – 17,506 124 – 56,664 Other adjustments 424 720 2 85 798 – 2,029 Change in inventory 2,337 (1,166) (1,639) (5,871) 1,539 345 (4,455) Depreciation, depletion and amortization 33,997 4,161 11,512 2,061 66 898 52,695 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $82,670 $24,098 $38,394 $23,075 $6,547 $2,879 $177,663 Production of silver (in thousand ounces) 1,833,109 1,525,725 – 819,349 92,698 140,267 4,411,148 Cash operating cost per silver ounce $3.75 $12.13 – $9.58 $48.12 $15.97 $9.05 Cash costs per silver ounce $3.75 $13.36 – $11.34 $49.20 $15.97 $9.83 Production of gold (ounces) – – 24,391 – – – 24,391 Cash operating cost per gold ounce – – $1,298 – – – $1,298 Cash cost per gold ounce – – $1,298 – – – $1,298 |
NYSE: CDE | TSX: CDM 27 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ (In thousands except ounces and per ounce costs) Three months ended June 30,2012 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $(2,009) $16,249 $29,083 $7,008 $5,942 $4,204 $60,477 Royalties – 1,457 – 510 124 – 2,091 Production taxes – – – 641 – – 641 Total cash costs (Non-US GAAP) $(2,009) $17,706 $29,083 $8,159 $6,066 $4,204 $63,209 Add/Subtract: Third party smelting costs – – (2,820) – (1,444) (1,449) (5,713) By-product credit 50,363 – – 16,295 157 – 66,815 Other adjustments 124 117 7 229 26 – 503 Change in inventory 14,060 4,950 (10,165) (3,931) 2,297 (202) 7,009 Depreciation, depletion and amortization 42,741 4,070 9,719 2,060 631 1,592 60,813 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $105,279 $26,843 $25,824 $22,812 $7,733 $4,145 $192,636 Production of silver (in thousand ounces) 2,365,484 1,470,342 – 712,706 107,895 240,168 4,896,595 Cash operating cost per silver ounce ($0.85) $11.05 – $9.83 $55.07 $17.50 $6.41 Cash costs per silver ounce ($0.85) $12.04 – $11.45 $56.21 $17.50 $6.97 Production of gold (ounces) – – 24,572 – – – 24,572 Cash operating cost per gold ounce – – $1,348 – – – $1,348 Cash cost per gold ounce – – $1,348 – – – $1,348 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 28 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ (In thousands except ounces and per ounce costs) Three months ended March 31,2012 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $(5,643) $16,253 $20,168 $10,303 $5,708 $4,127 $50,916 Royalties – 2,036 – 609 82 – 2,727 Production taxes – – – 12 – – 12 Total cash costs (Non-US GAAP) $(5,643) $18,289 $20,168 $10,924 $5,790 $4,127 $53,655 Add/Subtract: Third party smelting costs – – (1,083) – (1,975) (788) (3,846) By-product credit 52,526 – – 8,957 141 – 61,624 Other adjustments 244 (194) 7 87 57 – 201 Change in inventory (1,268) (4,487) (2,001) (10,403) (320) (601) (19,080) Depreciation, depletion and amortization 37,761 4,219 6,604 1,642 520 1,644 52,390 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $83,620 $17,827 $23,695 $11,207 $4,213 $4,382 $144,944 Production of silver (ounces) 2,482,814 1,591,292 – 441,337 122,793 247,958 4,886,194 Cash operating cost per silver ounce ($2.27) $10.21 – $23.35 $46.48 $16.64 $6.29 Cash costs per silver ounce ($2.27) $11.49 – $24.75 $47.15 $16.64 $6.85 Production of gold (ounces) – – 7,444 – – – 7,444 Cash operating cost per gold ounce – – $2,709 – – – $2,709 Cash cost per gold ounce – – $2,709 – – – $2,709 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 29 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ (In thousands except ounces and per ounce costs) Three months ended December 31,2011 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $(5,730) $18,332 $24,035 $14,191 $4,386 $1,647 $56,861 Royalties – 3,279 – – 98 – 3,377 Production taxes – – – 124 – – 124 Total cash costs (Non-US GAAP) $(5,730) $21,611 $24,234 $14,315 $4,484 $1,647 $60,362 Add/Subtract: Third party smelting costs – – (1,881) – (516 (483) (2,880) By-product credit 57,501 – – 3,344 242 – 61,068 Other adjustments 233 608 – 266 97 – 1,204 Change in inventory (5,054) (869) 9,407 (13,722) (296) (112) (10,646) Depreciation, depletion and amortization 42,646 6,021 7,016 1,152 474 750 58,059 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $89,596 $27,370 $38,577 $5,356 $4,486 $1,802 $167,187 Production of silver (ounces) 2,690,368 1,997,416 – 373,589 129,972 111,723 5,303,068 Cash operating cost per silver ounce ($2.13) $9.18 – $37.99 $33.75 $14.74 $6.19 Cash costs per silver ounce ($2.13) $10.82 – $38.32 $34.50 $14.74 $6.85 Production of gold (ounces) – – 13,299 – – – 13,299 Cash operating cost per gold ounce – – $1,807 – – – $1,807 Cash cost per gold ounce – – $1,807 – – – $1,807 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 30 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ (In thousands except ounces and per ounce costs) Three months ended September 30,2011 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $(2,607) $19,210 $25,000 $12,912 $4,660 $3,068 $62,153 Royalties – 3,217 – 827 234 – 4,278 Production taxes – – – 260 – – 260 Total cash costs (Non-US GAAP) $(2,607) $22,337 $25,000 $13,999 $4,894 $3,068 $66,691 Add/Subtract: Third party smelting costs – – (3,096) – (566) (808) (4,470) By-product credit 51,185 – – 2,433 198 – 53,816 Other adjustments 435 111 – 117 290 – 953 Change in inventory 15,099 7,637 2,443 (5,193) 3,328 949 24,263 Depreciation, depletion and amortization 41,174 6,062 9,568 556 237 914 58,511 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $105,286 $36,147 $33,915 $11,912 $8,381 $4,123 $199,764 Production of silver (ounces) 2,250,818 2,051,426 – 351,717 118,523 137,843 4,910,327 Cash operating cost per silver ounce ($1.16) $9.32 – $36.71 $39.31 $22.26 $7.57 Cash costs per silver ounce ($1.16) $10.89 – $39.80 $41.29 $22.26 $8.49 Production of gold (ounces) – – 25,687 – – – 725,687 Cash operating cost per gold ounce – – $973 – – – $973 Cash cost per gold ounce – – $973 – – – $973 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 31 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ (In thousands except ounces and per ounce costs) Nine months ended September 30,2012 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $(774) $51,006 $80,911 $25,164 $16,110 $10,571 $182,988 Royalties – 5,372 – 1,959 305 – 7,636 Production taxes – – – 1,255 – – 1,255 Total cash costs (Non-US GAAP) $(774) $56,378 $80,911 $28,378 $16,415 $10,571 $191,879 Add/Subtract: Third party smelting costs – – (7,044) – (3,959) (2,843) (13,846) By-product credit 141,923 – – 42,758 422 – 185,103 Other adjustments 792 642 17 401 882 – 2,734 Change in inventory 15,129 (703) (13,805) (20,206) 3,516 (457) (16,526) Depreciation, depletion and amortization 114,499 12,450 27,836 5,763 1,216 4,134 165,898 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $271,569 $68,767 $87,915 $57,094 $18,492 $11,405 $515,242 Production of silver (in thousand ounces) 6,681,407 4,587,359 – 1,973,392 323,286 628,393 14,193,197 Cash operating cost per silver ounce ($0.12) $11.12 – $12.75 $49.82 $16.82 $7.19 Cash costs per silver ounce ($0.12) $12.29 – $14.38 $50.76 $16.82 $7.82 Production of gold (ounces) – – 53,407 – – – 53,407 Cash operating cost per gold ounce – – $1,515 – – – $1,515 Cash cost per gold ounce – – $1,515 – – – $1,515 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 32 Non-GAAP to U.S. GAAP Reconciliation (Cont’d) Cash Operating Costs¹ (In thousands except ounces and per ounce costs) Nine months ended September 30,2011 Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total Total cash operating cost (Non-US GAAP) $(3,014) $49,946 $72,199 $17,787 $12,981 $9,926 $159,825 Royalties – 8,281 – 1,734 587 – 10,602 Production taxes – – – 728 – – 728 Total cash costs (Non-US GAAP) $(3,014) $58,227 $72,199 $20,249 $13,568 $9,926 $171,155 Add/Subtract: Third party smelting costs – – (9,122) – (2,366) (2,390) (13,878) By-product credit 139,842 – – 6,554 706 – 147,102 Other adjustments 1,208 298 19 256 462 – 2,243 Change in inventory 1,216 (196) 7,015 (3,005) (869) 45 4,206 Depreciation, depletion and amortization 116,584 16,387 28,823 1,655 81 2,398 165,928 Production costs applicable to sales, including depreciation, depletion and amortization (US GAAP) $255,836 $74,716 $98,934 $25,709 $11,582 $9,979 $476,756 Production of silver (ounces) 6,351,120 5,503,951 – 1,018,844 399,630 501,638 13,755,183 Cash operating cost per silver ounce ($0.47) $9.07 – $17.46 $32.48 $19.79 $6.36 Cash costs per silver ounce ($0.47) $10.58 – $19.87 $33.95 $18.85 $7.18 Production of gold (ounces) – – 75,121 – – – 75,121 Cash operating cost per gold ounce – – $961 – – – $961 Cash cost per gold ounce – – $961 – – – $961 1. Coeur expects to report fourth quarter and full year 2012 audited financial results on Thursday, February 21, 2013. |
NYSE: CDE | TSX: CDM 33 Coeur’s Mineral Reserves Grade (oz/ton) Contained ounces (000) Year end 2012 Location Short tons (000) Silver Gold Silver Gold Proven Reserves Rochester Nevada, USA 56,304 0.54 0.004 30,501 230 Martha Argentina – – – – – San Bartolomé Bolivia 1,187 2.92 – 3,460 – Kensington Alaska, USA 647 – 0.277 – 179 Endeavor Australia 2,258 4.32 – 9,757 – Palmarejo Mexico 5,747 4.67 0.061 26,858 348 Total Proven Reserves 66,143 70,577 757 Probable Reserves Rochester Nevada, USA 23,619 0.61 0.003 14,396 78 Martha Argentina – – – – – San Bartolomé Bolivia 41,699 2.53 – 105,628 – Kensington Alaska, USA 4,020 – 0.208 – 837 Endeavor Australia 2,508 1.43 – 3,588 – Palmarejo Mexico 7,105 3.69 0.045 26,251 317 Total Probable Reserves 78,951 149,863 1,231 Proven and Probable Reserves Rochester Nevada, USA 79,923 0.58 0.004 44,896 308 Martha Argentina – – – – – San Bartolomé Bolivia 42,886 2.54 – 109,088 – Kensington Alaska, USA 4,667 – 0.218 – 1,016 Endeavor Australia 4,766 2.80 – 13,345 – Palmarejo Mexico 12,852 4.13 0.052 53,110 665 Total Proven and Probable Reserves 145,094 220,439 1,988 Mineral Reserves and Mineral Resources |
NYSE: CDE | TSX: CDM 34 Mineral Reserves and Mineral Resources (Cont’d) Coeur’s Measured and Indicated Resources (Excluding Reserves) Grade (oz/ton) Contained ounces (000) Year end 2012 Location Short tons (000) Silver Gold Silver Gold Measured Resources Rochester Nevada, USA 135,558 0.47 0.004 53,921 498 Martha Argentina – – – – – San Bartolomé Bolivia – – – – – Kensington Alaska, USA 382 – 0.239 – 91 Endeavor Australia 10,639 1.98 – 21,088 – Palmarejo Mexico 3,186 7.13 0.099 22,720 315 Joaquin Argentina 5,942 4.58 0.003 27,191 19 Lejano Argentina – – – – – Total Measured Resources 155,707 134,920 924 Indicated Resources Rochester Nevada, USA 128,724 0.44 0.003 56,795 367 Martha Argentina 57 13.57 0.017 775 1 San Bartolomé Bolivia 20,040 2.27 – 45,463 – Kensington Alaska, USA 2,224 – 0.196 – 435 Endeavor Australia 302 10.23 – 3,090 – Palmarejo Mexico 20,526 1.12 0.032 23,021 649 Joaquin Argentina 11,398 3.33 0.004 37,980 42 Lejano Argentina 1,233 2.42 0.008 2,983 10 Total Indicated Resources 184,504 170,108 1,504 |
NYSE: CDE | TSX: CDM 35 Mineral Reserves and Mineral Resources (Cont’d) Coeur’s Measured and Indicated Resources (Excluding Reserves) (Cont’d) Grade (oz/ton) Contained ounces (000) Year end 2012 Location Short tons (000) Silver Gold Silver Gold Measured and Indicated Resources Rochester Nevada, USA 264,283 0.46 0.003 120,717 865 Martha Argentina 57 13.57 0.017 775 1 San Bartolomé Bolivia 20,040 2.27 – 45,463 – Kensington Alaska, USA 2,606 – 0.202 – 526 Endeavor Australia 10,941 2.21 – 24,179 – Palmarejo Mexico 23,712 1.93 0.041 45,741 964 Joaquin Argentina 17,340 3.76 0.004 65,171 61 Lejano Argentina 1,233 2.42 0.008 2,983 10 Total Measured and Indicated Resources 340,210 305,028 2,427 |
NYSE: CDE | TSX: CDM 36 Mineral Reserves and Mineral Resources (Cont’d) Coeur’s Inferred Resources Grade (oz/ton) Contained ounces (000) Year end 2012 Location Short tons (000) Silver Gold Silver Gold Inferred Resources Rochester Nevada, USA 45,643 0.60 0.003 27,201 123 Martha Argentina 204 4.75 0.005 969 1 San Bartolomé Bolivia 2,826 1.17 – 3,319 – Kensington Alaska, USA 704 – 0.244 – 172 Endeavor Australia 3,527 1.09 – 3,836 – Palmarejo Mexico 11,903 1.86 0.038 22,104 457 Joaquin Argentina 1,060 2.94 0.003 3,113 4 Lejano Argentina 3,307 1.73 0.006 5,713 19 Total Inferred Resources 69,174 66,254 775 Notes to the above Mineral Reserves and Resources. 1. Effective December 31, 2012 except Endeavor effective June 30, 2012. Joaquin’s Mineral Resources reflect Coeur’s 100% ownership of the project after acquiring the remaining 49% in December 2012. 2. Metal prices used for Mineral Reserves were $27.50 per ounce of silver and $1,450 per ounce of gold, except Endeavor at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34 per ounce of silver. 3. Metal prices used for Mineral Resources were $33 per ounce of silver and $1,700 per ounce of gold except Endeavor at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34 per ounce of silver. 4. Mineral Resources are in addition to Mineral Reserves and have not demonstrated economic viability. 5. Palmarejo Mineral Reserves and Resources are the addition of Palmarejo, Guadalupe and La Patria. 6. Current Mineral Resources are inclusive of disputed and undisputed claims at Rochester. While the Company believes it holds superior position in the ongoing claim dispute, the Company believes an adverse legal outcome would cause it to modify Mineral Resources. 7. Rounding of short tons and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grade and contained metal content. 8. For details on the estimation of Mineral Resources and Reserves for each property, please refer to the Technical Report on file at www.sedar.com. |
NYSE: CDE | TSX: CDM 37 Mineral Reserves and Mineral Resources (Cont’d) La Preciosa Mineral Resources Category Cutoff g/t Ag Tonnes Ag Grade (g/t) Silver Ounces Au Grade (gt) Gold Ounces Open Pit Indicated 25 29,600,000 104 99,000,000 0.20 190,400 Inferred 25 47,700,000 86 132,000,000 0.16 245,400 Underground Indicated 60 50,000 99 200,000 0.16 280 Inferred 60 1,960,000 124 7,600,000 0.21 13,200 Note: Data as per latest technical report filed on SEDAR. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability; Open pit resources stated as contained within a potentially economically minable pit shell; Strip Ratio of 13:1; Pit optimization is based on assumed silver and gold prices of US$25.90/oz, US$1,465/oz, respectively, mill recoveries of 88%, 78% respectively, mining costs of US$1.45/t, and a processing costs of US$17.25/t and G&A cost of US$4.35/t; Break-even cut-off grades used were 25 g/t Ag for open pit mill material and 60 g/t Ag for underground material; Silver equivalency is based on unit values calculated from the above metal prices, and assumes 100% recovery of all metals; Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding; George Cavey, P.Geo., is the Qualified Person responsible for the preparation of the scientific and technical information related to La Preciosa that is included in this presentation. |
NYSE: CDE | TSX: CDM 38 Contact Information Head Office: Coeur d’Alene Mines Corporation 505 Front Avenue Coeur d’Alene, Idaho 83816-0316 Main Tel: (208) 667-3511 Tickers: CDE: NYSE; CDM: TSX Website: www.coeur.com Mitch Krebs President and Chief Executive Officer Wendy Yang Mike Harrison Vice President, Investor Relations Vice President, Business Development (208) 665-0345 (208) 651-6428 wyang@coeur.com mharrison@coeur.com |