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Business Wire 20-Feb-2019 4:33 PM
Provides Full-Year 2019 Production and Cost Guidance
Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE:CDE) today reported fourth quarter 2018 financial results, including revenue of $143.8 million, adjusted EBITDA1 of $36.2 million and cash flow from operating activities of $0.1 million ($24.5 million prior to changes in working capital). Including $24.5 million of non-cash write-downs, the Company reported GAAP net income from continuing operations of $0.4 million, or $0.00 per share. On an adjusted basis1, the Company reported net income of $16.1 million, or $0.08 per share.
Fourth quarter results reflect strong performance from Palmarejo, Rochester and Kensington, partially offset by the ongoing ramp-up of operations at the Company's new Silvertip mine and weaker-than-expected performance at Wharf. Financial results also reflect the impact of the bankruptcy filing of Republic Metals Corp. ("RMC"), a U.S.-based precious metals refiner, that occurred in early November 2018. Non-cash write-downs during the quarter reflect (i) an inventory adjustment relating to concentrate at Silvertip and (ii) a reduction in accounts receivable relating to the RMC bankruptcy.
For the full year, Coeur reported revenue of $625.9 million, adjusted EBITDA1 of $157.3 million and cash flow from operating activities of $20.1 million ($112.4 million prior to changes in working capital). Including $55.3 million of non-cash write-downs, the Company reported a GAAP net loss from continuing operations of $49.0 million, or $0.26 per share. On an adjusted basis1, the Company reported a net loss of $2.2 million, or $0.01 per share. In addition to the non-cash write-downs in the fourth quarter noted above, the full-year figures also reflect (i) a modification to the deferred consideration received for the Company's Bolivian subsidiary sold in early 2018, (ii) the decommissioning of the in-pit crusher at Rochester, and (iii) an inventory adjustment at Silvertip during its first month of commercial production.
Key Highlights
"The Company remains committed to its strategy of being a balanced gold and silver producer with a focus on generating sustainable, high-quality growth and cash flow from a North American asset base," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "During 2018, we significantly decreased our geopolitical risk profile and further positioned the Company for future growth. We completed two strategic acquisitions of Nevada-based gold and silver assets last year and finalized the sale of the higher-cost San Bartolomé silver operation in Bolivia. In addition, we commenced operations at our new Silvertip operation in British Columbia, which is expected to become a significant contributor of high-margin, long-life production and cash flow for the Company. While Silvertip's ramp-up has been slower than initially planned, we are steadily increasing mining and processing rates and remain enthusiastic about its future.
"Two other notable accomplishments last year were our drilling success and our cost performance. We successfully increased overall reserves for the fourth consecutive year while bolstering our growth pipeline through our high-return brownfield drilling investments," continued Mr. Krebs. "Regarding cost performance, Palmarejo, Rochester and Wharf all beat their full-year unit cost guidance. Kensington achieved adjusted CAS per AuOz1 of $842 during the fourth quarter, 23% lower than the third quarter, largely due to the contribution of high-grade ounces from the Jualin deposit. Companywide capital expenditures and general and administrative expenses were in line with full-year guidance."
Financial and Operating Highlights (Unaudited) |
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(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce/pound metrics) |
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | |||||||||||||||||||||
Revenue | $ | 625.9 | $ | 143.8 | $ | 148.8 | $ | 170.0 | $ | 163.3 | $ | 709.6 | $ | 214.6 | ||||||||||||||
Costs Applicable to Sales | $ | 441.0 | $ | 116.6 | $ | 116.9 | $ | 108.2 | $ | 99.3 | $ | 440.3 | $ | 122.0 | ||||||||||||||
General and Administrative Expenses | $ | 31.3 | $ | 7.1 | $ | 7.7 | $ | 7.7 | $ | 8.8 | $ | 33.6 | $ | 9.2 | ||||||||||||||
Net Income (Loss) | $ | (49.0 | ) | $ | 0.4 | $ | (53.0 | ) | $ | 2.9 | $ | 0.7 | $ | 10.9 | $ | 14.3 | ||||||||||||
Net Income (Loss) Per Share | $ | (0.26 | ) | $ | 0.00 | $ | (0.29 | ) | $ | 0.02 | $ | 0.00 | $ | 0.06 | $ | 0.08 | ||||||||||||
Adjusted Net Income (Loss)1 | $ | (2.2 | ) | $ | 16.1 | $ | (19.7 | ) | $ | 1.1 | $ | 0.3 | $ | 4.2 | $ | 14.1 | ||||||||||||
Adjusted Net Income (Loss)1 Per Share | $ | (0.01 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | 0.08 | ||||||||||||
Weighted Average Shares Outstanding | 188.6 | 199.5 | 185.2 | 187.5 | 187.6 | 184.1 | 187.0 | |||||||||||||||||||||
EBITDA1 | $ | 87.1 | $ | 7.9 | $ | (12.3 | ) | $ | 42.1 | $ | 49.4 | $ | 202.9 | $ | 69.6 | |||||||||||||
Adjusted EBITDA1 | $ | 157.3 | $ | 36.2 | $ | 24.7 | $ | 48.4 | $ | 49.2 | $ | 203.3 | $ | 77.0 | ||||||||||||||
Cash Flow from Operating Activities | $ | 20.1 | $ | 0.1 | $ | 5.8 | $ | (1.3 | ) | $ | 15.5 | $ | 197.2 | $ | 91.8 | |||||||||||||
Capital Expenditures | $ | 140.8 | $ | 17.8 | $ | 39.5 | $ | 41.2 | $ | 42.3 | $ | 136.7 | $ | 47.1 | ||||||||||||||
Free Cash Flow1 | $ | (120.7 | ) | $ | (17.7 | ) | $ | (33.7 | ) | $ | (42.5 | ) | $ | (26.8 | ) | $ | 60.4 | $ | 44.8 | |||||||||
Cash, Equivalents & Short-Term Investments | $ | 115.1 | $ | 115.1 | $ | 104.7 | $ | 123.5 | $ | 159.6 | $ | 192.0 | $ | 192.0 | ||||||||||||||
Total Debt2 | $ | 458.8 | $ | 458.8 | $ | 429.2 | $ | 419.7 | $ | 414.0 | $ | 411.3 | $ | 411.3 | ||||||||||||||
Average Realized Price Per Ounce – Silver | $ | 15.65 | $ | 14.59 | $ | 14.68 | $ | 16.48 | $ | 16.70 | $ | 16.96 | $ | 16.57 | ||||||||||||||
Average Realized Price Per Ounce – Gold | $ | 1,218 | $ | 1,214 | $ | 1,150 | $ | 1,241 | $ | 1,268 | $ | 1,204 | $ | 1,224 | ||||||||||||||
Average Realized Price Per Pound – Zinc | $ | 1.12 | $ | 1.07 | $ | 0.94 | $ | — | $ | — | $ | — | ||||||||||||||||
Average Realized Price Per Pound – Lead | $ | 0.90 | $ | 0.87 | $ | 0.85 | $ | — | $ | — | $ | — | ||||||||||||||||
Silver Ounces Produced | 12.8 | 3.5 | 2.9 | 3.2 | 3.2 | 12.1 | 3.7 | |||||||||||||||||||||
Gold Ounces Produced | 359,520 | 92,546 | 87,539 | 94,052 | 85,383 | 383,086 | 118,756 | |||||||||||||||||||||
Zinc Pounds Produced | 4.2 | 3.1 | 1.1 | — | — | — | — | |||||||||||||||||||||
Lead Pounds Produced | 2.1 | 1.7 | 0.4 | — | — | — | — | |||||||||||||||||||||
Silver Equivalent Ounces Produced1 | 34.7 | 9.4 | 8.2 | 8.8 | 8.3 | 35.1 | 10.8 | |||||||||||||||||||||
Silver Equivalent Ounces Produced (Average Spot)1 | 42.3 | 11.2 | 10.1 | 10.6 | 9.9 | 40.4 | 12.8 | |||||||||||||||||||||
Silver Ounces Sold | 12.4 | 3.1 | 2.9 | 3.2 | 3.2 | 12.7 | 3.8 | |||||||||||||||||||||
Gold Ounces Sold | 350,508 | 79,291 | 89,609 | 94,455 | 87,153 | 410,604 | 123,564 | |||||||||||||||||||||
Zinc Pounds Sold | 4.4 | 2.6 | 1.8 | — | — | — | — | |||||||||||||||||||||
Lead Pounds Sold | 2.6 | 1.4 | 1.2 | — | — | — | — | |||||||||||||||||||||
Silver Equivalent Ounces Sold1 | 33.8 | 8.0 | 8.5 | 8.9 | 8.4 | 37.3 | 11.1 | |||||||||||||||||||||
Silver Equivalent Ounces Sold (Average Spot)1 | 41.2 | 10.1 | 10.4 | 10.7 | 10.1 | 43.0 | 13.2 | |||||||||||||||||||||
Adjusted CAS per AgEqOz1 | $ | 10.23 | $ | 11.06 | $ | 10.77 | $ | 9.44 | $ | 9.69 | $ | 10.62 | $ | 9.43 | ||||||||||||||
Adjusted CAS per Average Spot AgEqOz1 | $ | 8.83 | $ | 9.35 | $ | 9.22 | $ | 8.26 | $ | 8.48 | $ | 9.59 | $ | 8.35 | ||||||||||||||
Adjusted CAS per AuEqOz1 | $ | 978 | $ | 880 | $ | 1,005 | $ | 1,028 | $ | 955 | $ | 822 | $ | 800 | ||||||||||||||
Adjusted AISC per AgEqOz1 | $ | 17.74 | $ | 18.33 | $ | 17.70 | $ | 17.62 | $ | 17.20 | $ | 15.90 | $ | 14.45 | ||||||||||||||
Adjusted AISC per Average Spot AgEqOz1 | $ | 14.55 | $ | 14.64 | $ | 14.45 | $ | 14.65 | $ | 14.33 | $ | 13.82 | $ | 12.26 | ||||||||||||||
Financial Results
Fourth quarter revenue of $143.8 million was slightly lower compared to the prior quarter. Average realized gold and silver prices for the quarter were $1,214 and $14.59 per ounce, respectively, or 6% higher and 1% lower quarter-over-quarter.
For the full year, the Company generated revenue of $625.9 million compared to $709.6 million in 2017. Average realized gold and silver prices were $1,218 and $15.65, respectively, which were 1% higher and 8% lower year-over-year.
Average realized gold prices during the fourth quarter and for the full year reflect the sale of 5,458 and 35,807 gold ounces, respectively, at a price of $800 per ounce pursuant to Palmarejo's gold stream agreement. The Company's U.S. operations accounted for approximately 59% of 2018 revenue, unchanged from the prior year. Gold sales contributed 68% of 2018 revenue and silver sales contributed 31%.
Fourth quarter and full-year revenue also reflect the impact of the bankruptcy filing of RMC, which occurred in early November 2018. Approximately 6,500 ounces and 0.4 million ounces of the Company's gold and silver, respectively, were affected by RMC's Chapter 11 filing. As a result, Coeur was unable to recognize the revenue or collect the corresponding cash proceeds associated with that material. The Company recognized a $6.5 million write-down on its income statement to establish a receivable related to amounts owed from RMC, which resulted in an unfavorable change in working capital in the quarter. The amount of the write-down was determined in accordance with U.S. GAAP and may not be indicative of the actual amount that will be ultimately recovered from RMC.
Costs applicable to sales were $116.6 million and $441.0 million for the fourth quarter and full year, respectively, relatively flat compared to the same periods in the prior year. Lower overall costs applicable to sales were offset by inventory adjustments relating to concentrate at Silvertip, which totaled $18.0 million and $26.7 million for the fourth quarter and full year, respectively.
General and administrative expenses were $7.1 million and $31.3 million for the fourth quarter and full year, respectively, or 8% and 7% lower quarter-over-quarter and year-over-year. These decreases were largely driven by lower employee-related expenses. Exploration expense for the fourth quarter and full year was $4.1 million and $25.4 million, respectively. The Company focused its resource expansion efforts on its highest, near-mine growth targets at Palmarejo, Kensington and Silvertip. See page 11 for further details.
During the fourth quarter, the Company recorded an income tax benefit of $36.2 million, largely due to the release of a valuation allowance on its U.S. deferred tax assets in accordance with U.S. GAAP. For the full year, the Company recorded an income tax benefit of $16.8 million.
Operating cash flow of $0.1 million and $20.1 million for the fourth quarter and full year, respectively, was impacted by changes in working capital. Excluding changes in working capital, fourth quarter and full-year operating cash flow were $24.5 million and $112.4 million, respectively. Fourth quarter working capital was largely driven by unfavorable movements in inventory, primarily from Silvertip and material that was impacted by RMC's bankruptcy. Full-year working capital was also impacted by accounts receivable, largely related to the timing of Mexican value-added tax refunds, as well as income and mining tax payments at Palmarejo associated with 2017 earnings.
Fourth quarter capital expenditures of $17.8 million decreased 55% quarter-over-quarter primarily due to the declaration of commercial production at Silvertip. Full-year capital expenditures of $140.8 million were relatively flat year-over-year. Sustaining and development capital expenditures accounted for approximately 60% and 40%, respectively, of the Company's capital expenditures in 2018.
Operations
Fourth quarter and full-year 2018 highlights for each of the Company's operations are provided below.
Palmarejo, Mexico |
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(Dollars in millions, except per ounce amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons milled | 1,382,471 | 378,389 | 300,116 | 344,073 | 359,893 | 1,498,421 | 389,524 | ||||||||
Average silver grade (oz/t) | 6.49 | 5.96 | 6.26 | 6.86 | 6.88 | 5.62 | 6.92 | ||||||||
Average gold grade (oz/t) | 0.10 | 0.08 | 0.10 | 0.11 | 0.10 | 0.09 | 0.10 | ||||||||
Average recovery rate – Ag | 83.8% | 84.0% | 82.2% | 87.5% | 81.4% | 86.0% | 87.0% | ||||||||
Average recovery rate – Au | 88.9% | 97.6% | 88.8% | 89.9% | 80.4% | 90.0% | 92.0% | ||||||||
Silver ounces produced (000's) | 7,516 | 1,893 | 1,544 | 2,066 | 2,013 | 7,242 | 2,346 | ||||||||
Gold ounces produced | 122,722 | 31,239 | 27,885 | 33,702 | 29,896 | 121,569 | 37,537 | ||||||||
Silver equivalent ounces produced1 (000's) | 14,880 | 3,768 | 3,217 | 4,088 | 3,807 | 14,536 | 4,600 | ||||||||
Silver equivalent ounces produced1 (average spot) (000's) | 17,429 | 4,528 | 3,796 | 4,728 | 4,382 | 16,207 | 5,209 | ||||||||
Silver ounces sold (000's) | 7,229 | 1,534 | 1,572 | 2,092 | 2,031 | 7,586 | 2,343 | ||||||||
Gold ounces sold | 115,592 | 23,667 | 29,830 | 31,207 | 30,888 | 131,743 | 38,953 | ||||||||
Silver equivalent ounces sold1 (000's) | 14,165 | 2,955 | 3,362 | 3,964 | 3,884 | 15,491 | 4,681 | ||||||||
Silver equivalent ounces sold1 (average spot) (000's) | 16,566 | 3,530 | 3,981 | 4,557 | 4,479 | 17,301 | 5,331 | ||||||||
Average realized price per silver ounce | $15.77 | $14.57 | $14.75 | $16.49 | $16.73 | $16.96 | $16.57 | ||||||||
Average realized price per gold ounce | $1,140 | $1,148 | $1,082 | $1,162 | $1,168 | $1,110 | $1,139 | ||||||||
Metal sales | $245.8 | $49.6 | $55.5 | $70.7 | $70.0 | $274.8 | $83.2 | ||||||||
Costs applicable to sales | $120.1 | $27.1 | $31.6 | $30.3 | $31.1 | $146.2 | $36.0 | ||||||||
Adjusted CAS per AgEqOz1 | $8.46 | $9.11 | $9.39 | $7.64 | $8.01 | $9.36 | $7.54 | ||||||||
Adjusted CAS per average spot AgEqOz1 | $7.23 | $7.62 | $7.93 | $6.64 | $6.94 | $8.38 | $6.64 | ||||||||
Exploration expense | $10.5 | $0.1 | $3.2 | $3.2 | $4.0 | $11.9 | $2.7 | ||||||||
Cash flow from operating activities | $50.5 | $13.3 | $8.6 | $1.3 | $27.3 | $139.9 | $52.1 | ||||||||
Sustaining capital expenditures (excludes capital lease payments) | $24.4 | $3.6 | $2.0 | $9.5 | $9.3 | $22.5 | $4.9 | ||||||||
Development capital expenditures | $5.0 | $2.3 | $2.7 | $— | $— | $7.4 | $2.1 | ||||||||
Total capital expenditures | $29.4 | $5.9 | $4.7 | $9.5 | $9.3 | $29.9 | $7.0 | ||||||||
Free cash flow1 | $21.1 | $7.4 | $3.9 | $(8.2) | $18.0 | $110.0 | $45.1 |
Rochester, Nevada |
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(Dollars in millions, except per ounce amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Ore tons placed | 16,169,807 | 3,674,566 | 4,061,082 | 4,083,028 | 4,351,131 | 16,440,270 | 4,171,451 | ||||||||
Average silver grade (oz/t) | 0.52 | 0.46 | 0.52 | 0.53 | 0.54 | 0.53 | 0.50 | ||||||||
Average gold grade (oz/t) | 0.004 | 0.004 | 0.004 | 0.004 | 0.003 | 0.003 | 0.003 | ||||||||
Silver ounces produced (000's) | 5,038 | 1,466 | 1,290 | 1,125 | 1,157 | 4,714 | 1,361 | ||||||||
Gold ounces produced | 54,388 | 15,926 | 14,702 | 12,273 | 11,487 | 51,051 | 18,995 | ||||||||
Silver equivalent ounces produced1 (000's) | 8,301 | 2,422 | 2,172 | 1,861 | 1,846 | 7,777 | 2,500 | ||||||||
Silver equivalent ounces produced1 (average spot) (000's) | 9,431 | 2,809 | 2,477 | 2,095 | 2,067 | 8,478 | 2,808 | ||||||||
Silver ounces sold (000's) | 4,855 | 1,391 | 1,248 | 1,097 | 1,119 | 4,931 | 1,457 | ||||||||
Gold ounces sold | 52,789 | 15,339 | 14,257 | 12,030 | 11,163 | 54,642 | 20,002 | ||||||||
Silver equivalent ounces sold1 (000's) | 8,022 | 2,310 | 2,104 | 1,819 | 1,789 | 8,210 | 2,658 | ||||||||
Silver equivalent ounces sold1 (average spot) (000's) | 9,118 | 2,683 | 2,400 | 2,048 | 2,004 | 8,961 | 2,969 | ||||||||
Average realized price per silver ounce | $15.50 | $14.53 | $14.70 | $16.47 | $16.66 | $16.98 | $16.58 | ||||||||
Average realized price per gold ounce | $1,261 | $1,234 | $1,204 | $1,297 | $1,331 | $1,262 | $1,279 | ||||||||
Metal sales | $141.8 | $39.1 | $35.5 | $33.7 | $33.5 | $152.7 | $49.7 | ||||||||
Costs applicable to sales | $105.7 | $29.4 | $27.5 | $24.5 | $24.3 | $107.9 | $34.0 | ||||||||
Adjusted CAS per AgEqOz1 | $13.04 | $12.57 | $13.04 | $13.36 | $13.33 | $13.08 | $12.77 | ||||||||
Adjusted CAS per average spot AgEqOz1 | $11.47 | $10.83 | $11.42 | $11.87 | $11.89 | $11.97 | $11.37 | ||||||||
Exploration expense | $0.3 | — | $0.1 | $0.2 | $— | $1.4 | $0.5 | ||||||||
Cash flow from operating activities | $33.0 | $17.9 | $5.7 | $6.0 | $3.4 | $32.3 | $26.1 | ||||||||
Sustaining capital expenditures (excludes capital lease payments) | $10.7 | $7.1 | $2.7 | $0.4 | $0.5 | $2.7 | $0.9 | ||||||||
Development capital expenditures | $(0.8) | $(4.1) | $0.9 | $0.3 | $2.1 | $38.2 | $5.9 | ||||||||
Total capital expenditures | $9.9 | $3.0 | $3.6 | $0.7 | $2.6 | $40.9 | $6.8 | ||||||||
Free cash flow1 | $23.1 | $14.9 | $2.1 | $5.3 | $0.8 | $(8.6) | $19.3 |
Kensington, Alaska |
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(Dollars in millions, except per ounce amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons milled | 641,058 | 149,998 | 163,603 | 168,751 | 158,706 | 668,727 | 167,631 | ||||||||
Average gold grade (oz/t) | 0.18 | 0.21 | 0.17 | 0.16 | 0.17 | 0.18 | 0.22 | ||||||||
Average recovery rate | 92.3% | 91.1% | 90.4% | 92.6% | 94.0% | 93.5% | 92.8% | ||||||||
Gold ounces produced | 105,570 | 28,421 | 25,515 | 25,570 | 26,064 | 115,094 | 34,932 | ||||||||
Gold ounces sold | 106,555 | 24,987 | 25,648 | 28,165 | 27,763 | 125,982 | 35,634 | ||||||||
Average realized price per gold ounce | $1,247 | $1,246 | $1,161 | $1,269 | $1,307 | $1,226 | $1,244 | ||||||||
Metal sales | $132.9 | $31.1 | $29.8 | $35.7 | $36.3 | $154.5 | $44.3 | ||||||||
Costs applicable to sales | $112.4 | $21.4 | $28.2 | $34.2 | $28.6 | $116.1 | $32.0 | ||||||||
Adjusted CAS per AuOz1 | $1,050 | $842 | $1,091 | $1,195 | $1,010 | $920 | $896 | ||||||||
Exploration expense | $5.9 | $1.3 | $1.6 | $1.4 | $1.6 | $8.6 | $2.8 | ||||||||
Cash flow from operating activities | $15.3 | $7.9 | $(0.4) | $3.2 | $4.6 | $37.6 | $16.8 | ||||||||
Sustaining capital expenditures (excludes capital lease payments) | $37.2 | $9.8 | $9.7 | $9.2 | $8.5 | $20.7 | $8.0 | ||||||||
Development capital expenditures | $7.5 | $0.8 | $2.3 | $1.5 | $2.9 | $15.5 | $4.0 | ||||||||
Total capital expenditures | $44.7 | $10.6 | $12.0 | $10.7 | $11.4 | $36.2 | $12.0 | ||||||||
Free cash flow1 | $(29.4) | $(2.7) | $(12.4) | $(7.5) | $(6.8) | $1.4 | $4.8 |
Wharf, South Dakota |
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(Dollars in millions, except per ounce amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Ore tons placed | 4,923,774 | 1,644,168 | 1,127,391 | 1,075,820 | 1,076,395 | 4,560,441 | 1,124,785 | ||||||||
Average gold grade (oz/t) | 0.022 | 0.020 | 0.023 | 0.023 | 0.022 | 0.027 | 0.029 | ||||||||
Gold ounces produced | 76,840 | 16,960 | 19,437 | 22,507 | 17,936 | 95,372 | 27,292 | ||||||||
Silver ounces produced (000's) | 51 | 13 | 13 | 13 | 12 | 64 | 16 | ||||||||
Gold equivalent ounces produced1 | 77,683 | 17,175 | 19,646 | 22,729 | 18,133 | 96,431 | 27,560 | ||||||||
Gold ounces sold | 75,572 | 15,306 | 19,874 | 23,053 | 17,339 | 98,237 | 28,975 | ||||||||
Silver ounces sold (000's) | 48 | 11 | 12 | 14 | 11 | 74 | 16 | ||||||||
Gold equivalent ounces sold1 | 76,373 | 15,488 | 20,081 | 23,282 | 17,522 | 99,472 | 29,256 | ||||||||
Average realized price per gold ounce | $1,267 | $1,247 | $1,198 | $1,285 | $1,341 | $1,269 | $1,278 | ||||||||
Metal sales | $96.5 | $19.3 | $24.0 | $29.8 | $23.4 | $125.9 | $37.3 | ||||||||
Costs applicable to sales | $67.2 | $14.6 | $18.0 | $19.3 | $15.3 | $69.3 | $19.9 | ||||||||
Adjusted CAS per AuEqOz1 | $876 | $938 | $895 | $824 | $870 | $700 | $682 | ||||||||
Exploration expense | $0.1 | — | $0.1 | $— | $— | $0.3 | $0.1 | ||||||||
Cash flow from operating activities | $11.9 | $(1.9) | $3.7 | $11.5 | $(1.4) | $49.6 | $17.2 | ||||||||
Sustaining capital expenditures (excludes capital lease payments) | $3.4 | $0.7 | $1.2 | $1.2 | $0.3 | $5.8 | $1.6 | ||||||||
Development capital expenditures | $— | $— | $— | $— | $— | $3.0 | $1.7 | ||||||||
Total capital expenditures | $3.4 | 0.7 | $1.2 | $1.2 | $0.3 | $8.8 | $3.3 | ||||||||
Free cash flow1 | $8.5 | $(2.6) | $2.5 | $10.3 | $(1.7) | $40.8 | $13.9 |
Silvertip, British Columbia |
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(Dollars in millions, except per ounce and per pound amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||
Tons milled | 49,454 | 38,802 | 10,652 | — | — | — | — | ||||||||
Average silver grade (oz/t) | 6.19 | 6.06 | 6.66 | — | — | — | — | ||||||||
Average zinc grade (%) | 6.2% | 5.8% | 8.0% | —% | —% | —% | —% | ||||||||
Average lead grade (%) | 4.0% | 3.9% | 4.3% | —% | —% | —% | —% | ||||||||
Average recovery rate – Ag | 59.6% | 60.5% | 56.3% | —% | —% | —% | —% | ||||||||
Average recovery rate – Zn | 67.8% | 69.1% | 64.5% | —% | —% | —% | —% | ||||||||
Average recovery rate – Pb | 52.5% | 54.7% | 45.1% | —% | —% | —% | —% | ||||||||
Silver ounces produced (000's) | 182 | 142 | 40 | — | — | — | — | ||||||||
Zinc pounds produced (000's) | 4,181 | 3,082 | 1,099 | — | — | — | — | ||||||||
Lead pounds produced (000's) | 2,072 | 1,659 | 413 | — | — | — | — | ||||||||
Silver equivalent ounces produced1 (000's) | 537 | 410 | 127 | — | — | — | — | ||||||||
Silver equivalent ounces produced1 (average spot) (000's) | 641 | 488 | 153 | — | — | — | — | ||||||||
Silver ounces sold (000's) | 223 | 124 | 99 | — | — | — | — | ||||||||
Zinc pounds sold (000's) | 4,376 | 2,604 | 1,772 | — | — | — | — | ||||||||
Lead pounds sold (000's) | 2,649 | 1,419 | 1,230 | — | — | — | — | ||||||||
Silver equivalent ounces sold1 (000's) | 618 | 351 | 267 | — | — | — | — | ||||||||
Silver equivalent ounces sold1 (average spot) (000's) | 732 | 418 | 267 | — | — | — | — | ||||||||
Average realized price per silver ounce | $15.00 | $15.54 | $13.46 | $— | $— | $— | $— | ||||||||
Average realized price per zinc pound | $1.12 | $1.07 | $0.94 | $— | $— | $— | $— | ||||||||
Average realized price per lead pound | $0.90 | $0.87 | $0.85 | $— | $— | $— | $— | ||||||||
Metal sales | $8.9 | $4.8 | $4.1 | $— | $— | $— | $— | ||||||||
Costs applicable to sales | $35.6 | $24.1 | $11.5 | $— | $— | $— | $— | ||||||||
Adjusted CAS per AgEqOz1 | $14.40 | $17.40 | $10.46 | $— | $— | $— | $— | ||||||||
Adjusted CAS per average spot AgEqOz1 | $12.16 | $14.39 | $8.69 | $— | $— | $— | $— | ||||||||
Exploration expense | $2.7 | $0.3 | $2.3 | $0.1 | $— | $— | $— | ||||||||
Cash flow from operating activities | $(40.9) | $(34.1) | $(6.8) | $— | $— | $— | $— | ||||||||
Sustaining capital expenditures (excludes capital lease payments) | $8.6 | $8.2 | $0.4 | $— | $— | $— | $— | ||||||||
Development capital expenditures | $44.3 | $(10.8) | $17.5 | $19.0 | $18.6 | $— | $— | ||||||||
Total capital expenditures | $52.9 | $(2.6) | $17.9 | $19.0 | $18.6 | $— | $— | ||||||||
Free cash flow1 | $(93.8) | $(31.5) | $(24.7) | $(19.0) | $(18.6) | $— | $— |
Exploration
During the fourth quarter, Coeur's exploration activities transitioned from completing key drill programs to updating and refining its geologic models as well as developing strategic priorities for 2019. Expensed resource expansion drilling declined 50% quarter-over-quarter to $4.1 million, while capitalized resource infill drilling declined 35% to $1.5 million. Up to ten drill rigs were active during the quarter, with drilling activity present at Palmarejo, Kensington and Rochester as well as at early-stage projects near Tonopah, Nevada, in northern Chihuahua, Mexico and at the Company's recently acquired Sterling Gold Project.
At Palmarejo, two drill rigs were active at the end of the year, down from a high of seven during the first quarter. During the first half of the year, resource expansion drilling targeted the La Nación deposit and demonstrated the presence of several zones of thick mineralization ("clavos"). Resource expansion drilling also targeted veins west of Guadalupe and north of Independencia. Infill drilling continued at the Guadalupe and Independencia veins, with results within the Las Animas zone at Guadalupe being a highlight near year-end. Over 244,000 feet (74,500 meters) were drilled at Palmarejo during the year, representing the Company's largest exploration investment. For 2019, priorities at Palmarejo will shift to resource discovery of new high-grade clavos as well as continued infill on Guadalupe, Independencia and Nación veins.
At Kensington, the Company prioritized resource expansion drilling during 2018. Discovery and expansion drilling focused on the Elmira, Seward and Ophir veins, with a district-wide focus on discovery of high-grade veins similar to Jualin located near existing infrastructure. Infill drilling during the year targeted the Upper Kensington Zone 30 and Raven veins. In the beginning of 2019, the Company expects to initially focus on infill drilling then shift to testing new targets at several areas that were sampled in 2018. Over the course of the year, infill drilling is expected to continue at Kensington Main, Raven and Elmira.
At Rochester, infill drilling slowed during the fourth quarter but remained focused on the main Rochester Pit and surrounding areas, including Northeast Pit and South Charlie. Additionally, exploration efforts were directed at engineering and condemnation drilling for the Plan of Operations Amendment 11 expansion area. In 2019, resource infill drilling will continue and basic target generation work is expected to be completed at the recently acquired Lincoln Hill Project.
At the Sterling Gold Project, acquired in October 2018, two reverse circulation rigs were focused on infill drilling at the Sterling Mine area. Coeur drilled a total of 41 holes during the fourth quarter. Including drilling activity by Northern Empire prior to its acquisition by the Company, a total of 99,291 feet (30,272 meters) were drilled in 2018 with roughly one-third focused on the Sterling Mine and the remaining two-thirds focused on the Crown Block. The Company will prioritize resource expansion in 2019, focused on shallow, low-strip, oxide gold mineralization, initially at the Sterling Mine and shifting to the Crown Block during the second quarter, where drilling is expected to continue for the remainder of the year.
2019 Guidance Framework
Following a comprehensive review of the Company's historical guidance framework, Coeur is modifying its production and cost guidance framework for 2019. Key changes include:
Coeur plans to discontinue its reporting of silver equivalent metrics and begin providing cost metrics on a co-product basis (or by-product, in the case of Wharf) in conjunction with its first quarter 2019 financial results. The fourth quarter and full-year 2018 earnings presentation will include historical reconciliations for unit cost metrics for the four quarterly and full-year 2018 periods.
2019 Production Guidance
Gold | Silver | Zinc | Lead | ||||||||||
(oz) | (K oz) | (K lbs) | (K lbs) | ||||||||||
Palmarejo | 95,000 - 105,000 | 6,500 - 7,200 | — | — | |||||||||
Rochester | 40,000 - 50,000 | 4,200 - 5,000 | — | — | |||||||||
Kensington | 117,000 - 130,000 | — | — | — | |||||||||
Wharf | 82,000 - 87,000 | — | — | — | |||||||||
Silvertip | — | 1,500 - 2,500 | 25,000 - 40,000 | 20,000 - 35,000 | |||||||||
Total | 334,000 - 372,000 | 12,200 - 14,700 | 25,000 - 40,000 | 20,000 - 35,000 | |||||||||
2019 Costs Applicable to Sales Guidance
Gold | Silver | Zinc | Lead | ||||||||||
($/oz) | ($/oz) | ($/lb) | ($/lb) | ||||||||||
Palmarejo (co-product) | $650 - $750 | $9.00 - $10.00 | — | — | |||||||||
Rochester (co-product) | $1,000 - $1,100 | $12.50 - $13.50 | — | — | |||||||||
Kensington | $950 - $1,050 | — | — | — | |||||||||
Wharf (by-product) | $850 - $950 | — | — | — | |||||||||
Silvertip (co-product) | — | $14.00 - $16.00 | $1.00 - $1.25 | $0.85 - $1.05 | |||||||||
2019 Capital, Exploration and G&A Guidance
(NYSE:M) | |||||
Capital Expenditures, Sustaining | $70 - $80 | ||||
Capital Expenditures, Development | $30 - $40 | ||||
Exploration, Expensed | $18 - $22 | ||||
Exploration, Capitalized | $8 - $12 | ||||
General & Administrative Expenses | $32 - $36 |
Note: The Company's guidance figures assume $1,275/oz. gold, $15.50/oz. silver, $1.15/lb. zinc and $0.95/lb. lead as well as CAD of 1.30 and MXN of 20.00.
Financial Results and Conference Call
Coeur will host a conference call to discuss its fourth quarter and full-year 2018 financial results on February 21, 2019 at 11:00 a.m. Eastern Time.
Dial-In Numbers: | (855) 560-2581 (U.S.) | ||||
(855) 669-9657 (Canada) | |||||
(412) 542-4166 (International) | |||||
Conference ID: | Coeur Mining | ||||
Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Terry F. D. Smith, Senior Vice President of Operations, Hans Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through March 7, 2019.
Replay numbers: | (877) 344-7529 (U.S.) | ||||
(855) 669-9658 (Canada) | |||||
(412) 317-0088 (International) | |||||
Conference ID: | 101 27 575 | ||||
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious metals producer with five mines in North America. Coeur produces from its wholly-owned operations: the Palmarejo silver-gold complex in Mexico, the Silvertip silver-zinc-lead mine in British Columbia, the Rochester silver-gold mine in Nevada, the Wharf gold mine in South Dakota, and the Kensington gold mine in Alaska. In addition, the Company has interests in several precious metals exploration projects throughout North America.
Cautionary Statements
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated production, costs, capital expenditures, milling and mining rates, recovery rates, exploration expenditures, expenses, cash flow, expectations regarding Silvertip, including but not limited to timing of receipt of permits, grades, exploration and development efforts, the timing and impact of installation of HPGR units at Rochester, and operations at Palmarejo, Rochester, Wharf, Kensington and Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated benefits of acquisitions are not realized, the risk that expectations regarding the timing of Silvertip obtaining necessary permits, the risk that HPGR units will not be installed at Rochester on a timely basis or the anticipated benefits thereof will not be achieved, the risk that anticipated production, cost and expense levels are not attained, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold, silver, zinc and lead and a sustained lower price environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of mineral reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, the loss of any third-party smelter to which Coeur markets its production, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's most recent report on Form 10-K. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.
Christopher Pascoe, Coeur's Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur's mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur's properties as filed on SEDAR at www.sedar.com.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver ounce (or per gold ounce), all-in sustaining costs, and adjusted all-in sustaining costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver ounce (or per gold ounce), all-in sustaining costs, and adjusted all-in sustaining costs are important measures in assessing the Company's overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2017.
Notes
Average Spot Prices |
||||||||||||||||||||||||||||
2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||||||||||||||||
Average Silver Spot Price Per Ounce | $ | 15.71 | $ | 14.54 | $ | 15.02 | $ | 16.53 | $ | 16.77 | $ | 17.05 | $ | 16.73 | ||||||||||||||
Average Gold Spot Price Per Ounce | $ | 1,268 | $ | 1,226 | $ | 1,213 | $ | 1,306 | $ | 1,329 | $ | 1,257 | $ | 1,275 | ||||||||||||||
Average Silver to Gold Spot Equivalence | 81:1 | 84:1 | 81:1 | 79:1 | 79:1 | 74:1 | 76:1 | |||||||||||||||||||||
Average Zinc Spot Price Per Pound | $ | 1.33 | $ | 1.19 | $ | 1.15 | $ | 1.41 | $ | 1.55 | $ | 1.31 | $ | 1.47 | ||||||||||||||
Average Silver to Zinc Spot Equivalence | 0.08:1 | 0.08:1 | 0.08:1 | 0.09:1 | 0.09:1 | 0.08:1 | 0.09:1 | |||||||||||||||||||||
Average Lead Spot Price Per Pound | $ | 1.02 | $ | 0.89 | $ | 0.95 | $ | 1.08 | $ | 1.14 | $ | 1.05 | $ | 1.13 | ||||||||||||||
Average Silver to Lead Spot Equivalence | 0.06:1 | 0.06:1 | 0.06:1 | 0.07:1 | 0.07:1 | 0.06:1 | 0.07:1 | |||||||||||||||||||||
COEUR MINING, INC. AND SUBSIDIARIES | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||||||||||
Year ended December 31, | |||||||||||||
2018 | 2017 | 2016 | |||||||||||
In thousands, except share data | |||||||||||||
Revenue | $ | 625,904 | $ | 709,598 | $ | 571,897 | |||||||
COSTS AND EXPENSES | |||||||||||||
Costs applicable to sales(1) | 440,950 | 440,260 | 335,375 | ||||||||||
Amortization | 128,473 | 146,549 | 116,528 | ||||||||||
General and administrative | 31,345 | 33,616 | 29,275 | ||||||||||
Exploration | 25,397 | 30,311 | 12,930 | ||||||||||
Pre-development, reclamation, and other | 20,043 | 18,936 | 14,411 | ||||||||||
Total costs and expenses | 646,208 | 669,672 | 512,965 | ||||||||||
OTHER INCOME (EXPENSE), NET | |||||||||||||
Loss on debt extinguishment | — | (9,342 | ) | (21,365 | ) | ||||||||
Fair value adjustments, net | 3,638 | (864 | ) | (11,581 | ) | ||||||||
Interest expense, net of capitalized interest | (24,364 | ) | (16,440 | ) | (36,896 | ) | |||||||
Other, net | (24,705 | ) | 26,643 | 98 | |||||||||
Total other income (expense), net | (45,431 | ) | (3 | ) | (69,744 | ) | |||||||
Income (loss) before income and mining taxes | (65,735 | ) | 39,923 | (10,812 | ) | ||||||||
Income and mining tax (expense) benefit | 16,780 | (28,998 | ) | 33,247 | |||||||||
Income (loss) from continuing operations | $ | (48,955 | ) | $ | 10,925 | $ | 22,435 | ||||||
Income (loss) from discontinued operations | 550 | (12,244 | ) | 32,917 | |||||||||
NET INCOME (LOSS) | $ | (48,405 | ) | $ | (1,319 | ) | $ | 55,352 | |||||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | |||||||||||||
Unrealized gain (loss) on debt and equity securities | 26 | 3,227 | 3,222 | ||||||||||
Reclassification adjustments for impairment of equity securities | — | 426 | 703 | ||||||||||
Reclassification adjustments for realized (gain) loss on sale of equity securities | — | 1,354 | (2,691 | ) | |||||||||
Other comprehensive income (loss) | 26 | 5,007 | 1,234 | ||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (48,379 | ) | $ | 3,688 | $ | 56,586 | ||||||
NET INCOME (LOSS) PER SHARE | |||||||||||||
Basic income (loss) per share: | |||||||||||||
Net income (loss) from continuing operations | $ | (0.26 | ) | $ | 0.06 | $ | 0.14 | ||||||
Net income (loss) from discontinued operations | 0.00 | (0.07 | ) | 0.21 | |||||||||
Basic(2) | $ | (0.26 | ) | $ | (0.01 | ) | $ | 0.35 | |||||
Diluted income (loss) per share: | |||||||||||||
Net income (loss) from continuing operations | $ | (0.26 | ) | $ | 0.06 | $ | 0.14 | ||||||
Net income (loss) from discontinued operations | 0.00 | (0.07 | ) | 0.20 | |||||||||
Diluted(2) | $ | (0.26 | ) | $ | (0.01 | ) | $ | 0.34 | |||||
(1) Excludes amortization. |
|||||||||||||
(2) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share. |
|||||||||||||
COEUR MINING, INC. AND SUBSIDIARIES | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||||
Year ended December 31, | |||||||||||||
2018 | 2017 | 2016 | |||||||||||
In thousands | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income (loss) | $ | (48,405 | ) | $ | (1,319 | ) | $ | 55,352 | |||||
(Income) loss from discontinued operations | (550 | ) | 12,244 | (32,917 | ) | ||||||||
Adjustments: | |||||||||||||
Amortization | 128,473 | 146,549 | 116,528 | ||||||||||
Accretion | 13,933 | 9,980 | 9,142 | ||||||||||
Deferred taxes | (48,441 | ) | (13,888 | ) | (54,184 | ) | |||||||
Loss on debt extinguishment | — | 9,342 | 21,365 | ||||||||||
Fair value adjustments, net | (3,638 | ) | 864 | 11,581 | |||||||||
Stock-based compensation | 8,328 | 10,541 | 9,715 | ||||||||||
Gain on sale of the Joaquin project | — | (21,138 | ) | — | |||||||||
Write-downs | 55,297 | — | 4,446 | ||||||||||
Other | 7,353 | (7,974 | ) | 356 | |||||||||
Changes in operating assets and liabilities: | |||||||||||||
Receivables | (9,260 | ) | 18,895 | (2,783 | ) | ||||||||
Prepaid expenses and other current assets | 4,876 | (2,015 | ) | (4,420 | ) | ||||||||
Inventory and ore on leach pads | (44,488 | ) | 23,517 | (34,610 | ) | ||||||||
Accounts payable and accrued liabilities | (43,370 | ) | 11,562 | (3,110 | ) | ||||||||
CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING OPERATIONS | 20,108 | 197,160 | 96,461 | ||||||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS | (2,690 | ) | 11,296 | 29,356 | |||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 17,418 | 208,456 | 125,817 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Capital expenditures | (140,787 | ) | (136,734 | ) | (94,382 | ) | |||||||
Acquisitions, net | 6,914 | (156,248 | ) | (1,417 | ) | ||||||||
Proceeds from the sale of assets | 577 | 16,705 | 16,296 | ||||||||||
Purchase of investments | (426 | ) | (15,058 | ) | (178 | ) | |||||||
Sale of investments | 12,713 | 11,321 | 7,077 | ||||||||||
Proceeds from notes receivable | 19,000 | — | — | ||||||||||
Other | 11 | 2,864 | 1,756 | ||||||||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS | (101,998 | ) | (277,150 | ) | (70,848 | ) | |||||||
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS | (28,470 | ) | (1,392 | ) | (6,631 | ) | |||||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (130,468 | ) | (278,542 | ) | (77,479 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Issuance of common stock | — | — | 269,556 | ||||||||||
Issuance of notes and bank borrowings, net of issuance costs | 95,000 | 342,620 | — | ||||||||||
Payments on debt, capital leases, and associated costs | (95,059 | ) | (203,045 | ) | (318,153 | ) | |||||||
Gold production royalty payments | — | — | (27,155 | ) | |||||||||
Other | (5,160 | ) | (3,746 | ) | 172 | ||||||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS | (5,219 | ) | 135,829 | (75,580 | ) | ||||||||
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS | (22 | ) | (84 | ) | (4,648 | ) | |||||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (5,241 | ) | 135,745 | (80,228 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 28 | 203 | (678 | ) | |||||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (118,263 | ) | 65,862 | (32,568 | ) | ||||||||
Less net cash provided by (used in) discontinued operations(1) | (32,930 | ) | (10,939 | ) | 1,576 | ||||||||
(85,333 | ) | 76,801 | (34,144 | ) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 203,402 | 126,601 | 160,745 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 118,069 | $ | 203,402 | $ | 126,601 |
(1) Less net cash provided by (used in) discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748, $20,759, and $16,501 during the years ended December 31, 2018, 2017, and 2016, respectively.
COEUR MINING, INC. AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
December 31, 2018 | December 31, 2017 | ||||||||
ASSETS | In thousands, except share data | ||||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | $ | 115,081 | $ | 192,032 | |||||
Receivables | 29,744 | 19,069 | |||||||
Inventory | 66,279 | 58,230 | |||||||
Ore on leach pads | 75,122 | 73,752 | |||||||
Prepaid expenses and other | 11,393 | 15,053 | |||||||
Assets held for sale | — | 91,421 | |||||||
297,619 | 449,557 | ||||||||
NON-CURRENT ASSETS | |||||||||
Property, plant and equipment, net | 298,451 | 254,737 | |||||||
Mining properties, net | 971,567 | 829,569 | |||||||
Ore on leach pads | 66,964 | 65,393 | |||||||
Restricted assets | 12,133 | 20,847 | |||||||
Equity and debt securities | 17,806 | 34,837 | |||||||
Receivables | 31,151 | 28,750 | |||||||
Other | 16,809 | 17,485 | |||||||
TOTAL ASSETS | $ | 1,712,500 | $ | 1,701,175 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Accounts payable | $ | 47,210 | $ | 48,592 | |||||
Accrued liabilities and other | 82,619 | 94,930 | |||||||
Debt | 24,937 | 30,753 | |||||||
Reclamation | 6,552 | 3,777 | |||||||
Liabilities held for sale | — | 50,677 | |||||||
161,318 | 228,729 | ||||||||
NON-CURRENT LIABILITIES | |||||||||
Debt | 433,889 | 380,569 | |||||||
Reclamation | 128,994 | 117,055 | |||||||
Deferred tax liabilities | 79,070 | 105,148 | |||||||
Other long-term liabilities | 56,717 | 54,697 | |||||||
698,670 | 657,469 | ||||||||
STOCKHOLDERS' EQUITY | |||||||||
Common stock, par value $0.01 per share; authorized | |||||||||
300,000,000 shares, 203,310,443 issued and outstanding at | |||||||||
December 31, 2018 and 185,637,724 at December 31, 2017 | 2,033 | 1,856 | |||||||
Additional paid-in capital | 3,443,082 | 3,357,345 | |||||||
Accumulated other comprehensive income (loss) | (59 | ) | 2,519 | ||||||
Accumulated deficit | (2,592,544 | ) | (2,546,743 | ) | |||||
852,512 | 814,977 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,712,500 | $ | 1,701,175 | |||||
Adjusted EBITDA Reconciliation |
|||||||||||||||||||||||||||||
(Dollars in thousands except per share amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||||||||||||||||
Net income (loss) | $ | (48,405 | ) | $ | 468 | $ | (53,044 | ) | $ | 2,930 | $ | 1,241 | $ | (1,319 | ) | $ | 7,625 | ||||||||||||
(Income) loss from discontinued operations, net of tax | (550 | ) | — | — | — | (550 | ) | 12,244 | 6,724 | ||||||||||||||||||||
Interest expense, net of capitalized interest | 24,364 | 6,563 | 5,818 | 6,018 | 5,965 | 16,440 | 5,522 | ||||||||||||||||||||||
Income tax provision (benefit) | (16,780 | ) | (36,231 | ) | 3,785 | 3,717 | 11,949 | 28,998 | 4,957 | ||||||||||||||||||||
Amortization | 128,473 | 37,053 | 31,184 | 29,459 | 30,777 | 146,549 | 44,722 | ||||||||||||||||||||||
EBITDA | 87,102 | 7,853 | (12,257 | ) | 42,124 | 49,382 | 202,912 | 69,550 | |||||||||||||||||||||
Fair value adjustments, net | (3,638 | ) | (731 | ) | (715 | ) | 2,462 | (4,654 | ) | 864 | — | ||||||||||||||||||
Impairment of equity and debt securities | — | — | — | — | — | 426 | — | ||||||||||||||||||||||
Foreign exchange (gain) loss | 9,069 | 1,986 | 3,104 | 3,309 | 670 | (1,281 | ) | 672 | |||||||||||||||||||||
Gain on sale of Joaquin project | — | — | — | — | — | (21,138 | ) | — | |||||||||||||||||||||
(Gain) loss on sale of assets and securities | (19 | ) | 298 | 28 | (586 | ) | 241 | 1 | 499 | ||||||||||||||||||||
Gain on repurchase of Rochester royalty | — | — | — | — | — | (2,332 | ) | — | |||||||||||||||||||||
Loss on debt extinguishment | — | — | — | — | — | 9,342 | — | ||||||||||||||||||||||
Mexico inflation adjustment | (1,939 | ) | — | — | (1,939 | ) | — | — | |||||||||||||||||||||
Transaction costs | 5 | (1,044 | ) | 1,049 | — | — | 3,757 | 2,938 | |||||||||||||||||||||
Interest income on notes receivables | (1,776 | ) | (327 | ) | (628 | ) | (573 | ) | (248 | ) | — | ||||||||||||||||||
Manquiri sale consideration write-down | 18,599 | — | 18,599 | — | — | — | |||||||||||||||||||||||
Silvertip start-up write-down | 26,720 | 17,974 | 8,746 | — | — | — | |||||||||||||||||||||||
Rochester In-Pit crusher write-down | 3,441 | — | 3,441 | — | — | — | |||||||||||||||||||||||
Receivable write-down | 6,536 | 6,536 | |||||||||||||||||||||||||||
Asset retirement obligation accretion | 11,116 | 2,747 | 2,883 | 2,817 | 2,669 | 8,983 | 2,475 | ||||||||||||||||||||||
Inventory adjustments and write-downs | 2,093 | 858 | 421 | 817 | 1,126 | 1,806 | 885 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 157,309 | $ | 36,150 | $ | 24,671 | $ | 48,431 | $ | 49,186 | $ | 203,340 | $ | 77,019 | |||||||||||||||
Revenue | $ | 625,904 | 143,855 | $ | 148,795 | $ | 169,987 | $ | 163,267 | $ | 709,598 | $ | 214,585 | ||||||||||||||||
Adjusted EBITDA Margin | 25 | % | 25 | % | 17 | % | 28 | % | 30 | % | 29 | % | 36 | % | |||||||||||||||
Adjusted Net Income (Loss) Reconciliation |
|||||||||||||||||||||||||||||
(Dollars in thousands except per share amounts) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | ||||||||||||||||||||||
Net income (loss) | $ | (48,405 | ) | $ | 468 | $ | (53,044 | ) | $ | 2,930 | $ | 1,241 | $ | (1,319 | ) | $ | 7,625 | ||||||||||||
(Income) loss from discontinued operations, net of tax | (550 | ) | — | — | — | (550 | ) | 12,244 | 6,724 | ||||||||||||||||||||
Fair value adjustments, net | (3,638 | ) | (731 | ) | (715 | ) | 2,462 | (4,654 | ) | 864 | — | ||||||||||||||||||
Impairment of equity and debt securities | — | — | — | — | — | 426 | — | ||||||||||||||||||||||
Write-downs | — | — | — | — | — | — | |||||||||||||||||||||||
Inventory write-downs | — | — | — | — | — | — | |||||||||||||||||||||||
Gain on sale of Joaquin project | — | — | — | — | (21,138 | ) | — | ||||||||||||||||||||||
(Gain) loss on sale of assets and securities | (19 | ) | 326 | — | (586 | ) | 241 | 1 | 499 | ||||||||||||||||||||
Gain on repurchase of Rochester royalty | — | (28 | ) | 28 | — | — | (2,332 | ) | — | ||||||||||||||||||||
(Gain) loss on debt extinguishment | — | — | — | — | — | 9,342 | — | ||||||||||||||||||||||
Mexico inflation adjustment | (1,939 | ) | — | — | (1,939 | ) | — | — | — | ||||||||||||||||||||
Transaction costs | 5 | (1,044 | ) | 1,049 | — | — | 3,757 | 2,938 | |||||||||||||||||||||
Deferred tax on reorganization | — | — | — | — | — | — | |||||||||||||||||||||||
Interest income on notes receivables | (1,776 | ) | (327 | ) | (628 | ) | (573 | ) | (248 | ) | — | ||||||||||||||||||
Manquiri sale consideration write-down | 18,599 | — | 18,599 | — | — | — | |||||||||||||||||||||||
Silvertip start-up write-down | 26,720 | 17,974 | 8,746 | — | — | — | |||||||||||||||||||||||
Rochester In-Pit crusher write-down | 3,441 | — | 3,441 | — | — | — | |||||||||||||||||||||||
Receivable write-down | 6,536 | 6,536 | |||||||||||||||||||||||||||
Foreign exchange loss (gain) | 8,611 | (530 | ) | 6,062 | (1,233 | ) | 4,312 | 1,562 | (3,643 | ) | |||||||||||||||||||
Tax effect of adjustments(1) | (9,750 | ) | (6,559 | ) | (3,191 | ) | — | — | 816 | — | |||||||||||||||||||
Adjusted net income (loss) | $ | (2,165 | ) | $ | 16,085 | $ | (19,653 | ) | $ | 1,061 | $ | 342 | $ | 4,223 | $ | 14,143 | |||||||||||||
Adjusted net income (loss) per share - Basic | $ | (0.01 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | 0.08 | |||||||||||||
Adjusted net income (loss) per share - Diluted | $ | (0.01 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | 0.08 | |||||||||||||
Consolidated Free Cash Flow Reconciliation |
||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | 2017 | 4Q 2017 | |||||||||||||||||||||
Cash flow from continuing operations | $ | 20,108 | $ | 72 | $ | 5,789 | $ | (1,294 | ) | $ | 15,541 | $ | 197,160 | $ | 91,811 | |||||||||||||
Capital expenditures from continuing operations | 140,787 | 17,805 | 39,472 | 41,165 | 42,345 | 136,734 | 47,054 | |||||||||||||||||||||
Free cash flow | (120,679 | ) | (17,733 | ) | (33,683 | ) | (42,459 | ) | (26,804 | ) | 60,426 | 44,757 | ||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||
for Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Silvertip | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 180,832 | $ | 126,586 | $ | 40,855 | $ | 348,273 | $ | 141,872 | $ | 78,273 | $ | 220,145 | $ | 568,418 | |||||||||||||||||
Amortization | 60,744 | 20,909 | 5,235 | 86,888 | 29,508 | 11,072 | 40,580 | 127,468 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 120,088 | $ | 105,677 | $ | 35,620 | $ | 261,385 | $ | 112,364 | $ | 67,201 | $ | 179,565 | $ | 440,950 | |||||||||||||||||
Silver equivalent ounces sold | 14,164,699 | 8,021,919 | 617,980 | 22,804,598 | 33,780,278 | ||||||||||||||||||||||||||||
Gold equivalent ounces sold | 106,555 | 76,373 | 182,928 | ||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 8.48 | $ | 13.17 | $ | 57.64 | $ | 11.46 | $ | 1,055 | $ | 880 | $ | 982 | $ | 13.05 | |||||||||||||||||
Inventory adjustments | (0.02 | ) | (0.13 | ) | (43.24 | ) | (1.23 | ) | (5 | ) | (4 | ) | (4 | ) | (0.85 | ) | |||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 8.46 | $ | 13.04 | $ | 14.40 | $ | 10.23 | $ | 1,050 | $ | 876 | $ | 978 | $ | 12.20 | |||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 7.25 | $ | 11.59 | $ | 48.66 | $ | 9.89 | $ | 10.71 | |||||||||||||||||||||||
Inventory adjustments | (0.02 | ) | (0.12 | ) | (36.50 | ) | (1.06 | ) | (0.70 | ) | |||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 7.23 | $ | 11.47 | $ | 12.16 | $ | 8.83 | $ | 10.01 | |||||||||||||||||||||||
Costs applicable to sales | $ | 440,950 | |||||||||||||||||||||||||||||||
Treatment and refining costs | 5,469 | ||||||||||||||||||||||||||||||||
Sustaining capital(1) | 100,871 | ||||||||||||||||||||||||||||||||
General and administrative | 31,345 | ||||||||||||||||||||||||||||||||
Exploration | 25,397 | ||||||||||||||||||||||||||||||||
Reclamation | 18,668 | ||||||||||||||||||||||||||||||||
Project/pre-development costs | 5,266 | ||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 627,966 | |||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 22,804,598 | ||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 10,975,680 | ||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 33,780,278 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 18.59 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.85 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 17.74 | |||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 41,178,098 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 15.25 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.70 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 14.55 | |||||||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||
for Three Months Ended December 31, 2018 | |||||||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Silvertip | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 42,119 | $ | 35,365 | $ | 28,246 | $ | 105,730 | $ | 30,703 | $ | 16,839 | $ | 47,542 | $ | 153,272 | |||||||||||||||||
Amortization | 14,992 | 5,992 | 4,161 | 25,145 | 9,437 | 2,184 | 11,621 | 36,766 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 27,127 | $ | 29,373 | $ | 24,085 | $ | 80,585 | $ | 21,266 | $ | 14,655 | $ | 35,921 | $ | 116,506 | |||||||||||||||||
Silver equivalent ounces sold | 2,954,615 | 2,310,196 | 351,315 | 5,616,126 | 8,044,146 | ||||||||||||||||||||||||||||
Gold equivalent ounces sold | 24,979 | 15,488 | 40,467 | ||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 9.18 | $ | 12.71 | $ | 68.56 | $ | 14.35 | $ | 851 | $ | 946 | $ | 888 | $ | 14.48 | |||||||||||||||||
Inventory adjustments | (0.07 | ) | (0.14 | ) | (51.16 | ) | (3.29 | ) | (9 | ) | (8 | ) | (8 | ) | (2.34 | ) | |||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 9.11 | $ | 12.57 | $ | 17.40 | $ | 11.06 | $ | 842 | $ | 938 | $ | 880 | $ | 12.14 | |||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 7.68 | $ | 10.95 | $ | 56.71 | $ | 12.14 | $ | 11.60 | |||||||||||||||||||||||
Inventory adjustments | (0.06 | ) | (0.12 | ) | (42.32 | ) | (2.79 | ) | (1.87 | ) | |||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 7.62 | $ | 10.83 | $ | 14.39 | $ | 9.35 | $ | 9.73 | |||||||||||||||||||||||
Costs applicable to sales | $ | 116,506 | |||||||||||||||||||||||||||||||
Treatment and refining costs | 1,677 | ||||||||||||||||||||||||||||||||
Sustaining capital | 29,675 | ||||||||||||||||||||||||||||||||
General and administrative | 7,163 | ||||||||||||||||||||||||||||||||
Exploration | 4,127 | ||||||||||||||||||||||||||||||||
Reclamation | 4,924 | ||||||||||||||||||||||||||||||||
Project/pre-development costs | 2,191 | ||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 166,263 | |||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,616,126 | ||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 2,428,020 | ||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,044,146 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 20.67 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (2.34 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 18.33 | |||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 10,070,442 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 16.51 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (1.87 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 14.64 | |||||||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||
for Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Silvertip | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 46,348 | $ | 32,842 | $ | 12,608 | $ | 91,798 | $ | 35,153 | $ | 20,857 | $ | 56,010 | $ | 147,808 | |||||||||||||||||
Amortization | 14,794 | 5,294 | 1,073 | 21,161 | 6,912 | 2,878 | 9,790 | 30,951 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 31,554 | $ | 27,548 | $ | 11,535 | $ | 70,637 | $ | 28,241 | $ | 17,979 | $ | 46,220 | $ | 116,857 | |||||||||||||||||
Silver equivalent ounces sold | 3,361,893 | 2,103,584 | 266,666 | 5,732,143 | 8,475,883 | ||||||||||||||||||||||||||||
Gold equivalent ounces sold | 25,648 | 20,081 | 45,729 | ||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 9.39 | $ | 13.10 | $ | 43.26 | $ | 12.32 | $ | 1,101 | $ | 895 | $ | 1,011 | $ | 13.79 | |||||||||||||||||
Inventory adjustments | — | (0.06 | ) | (32.80 | ) | (1.55 | ) | (10 | ) | — | (6 | ) | (1.08 | ) | |||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 9.39 | $ | 13.04 | $ | 10.46 | $ | 10.77 | $ | 1,091 | $ | 895 | $ | 1,005 | $ | 12.71 | |||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 7.93 | $ | 11.48 | $ | 36.69 | $ | 10.55 | $ | 11.25 | |||||||||||||||||||||||
Inventory adjustments | — | (0.06 | ) | (28.00 | ) | (1.33 | ) | (0.88 | ) | ||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 7.93 | $ | 11.42 | $ | 8.69 | $ | 9.22 | $ | 10.37 | |||||||||||||||||||||||
Costs applicable to sales | $ | 116,857 | |||||||||||||||||||||||||||||||
Treatment and refining costs | 1,551 | ||||||||||||||||||||||||||||||||
Sustaining capital | 19,236 | ||||||||||||||||||||||||||||||||
General and administrative | 7,729 | ||||||||||||||||||||||||||||||||
Exploration | 8,157 | ||||||||||||||||||||||||||||||||
Reclamation | 4,545 | ||||||||||||||||||||||||||||||||
Project/pre-development costs | 1,137 | ||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 159,212 | |||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,732,143 | ||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 2,743,740 | ||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,475,883 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 18.78 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (1.08 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 17.70 | |||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 10,385,649 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 15.33 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.88 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 14.45 | |||||||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||
for Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Total | Kensington | Wharf | Total | |||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 44,943 | $ | 29,244 | $ | 74,187 | $ | 40,668 | $ | 22,611 | $ | 63,279 | $ | 137,466 | |||||||||||||||
Amortization | 14,633 | 4,793 | 19,426 | 6,441 | 3,353 | 9,794 | 29,220 | ||||||||||||||||||||||
Costs applicable to sales | $ | 30,310 | $ | 24,451 | $ | 54,761 | $ | 34,227 | $ | 19,258 | $ | 53,485 | $ | 108,246 | |||||||||||||||
Silver equivalent ounces sold | 3,964,208 | 1,819,072 | 5,783,280 | 8,870,100 | |||||||||||||||||||||||||
Gold equivalent ounces sold | 28,165 | 23,282 | 51,447 | ||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 7.65 | $ | 13.44 | $ | 9.47 | $ | 1,215 | $ | 827 | $ | 1,040 | $ | 12.20 | |||||||||||||||
Inventory adjustments | (0.01 | ) | (0.08 | ) | (0.03 | ) | (20 | ) | (3 | ) | (12 | ) | (0.09 | ) | |||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 7.64 | $ | 13.36 | $ | 9.44 | $ | 1,195 | $ | 824 | $ | 1,028 | $ | 12.11 | |||||||||||||||
Costs applicable to sales per average spot ounce | $ | 6.65 | $ | 11.94 | $ | 8.29 | $ | 10.15 | |||||||||||||||||||||
Inventory adjustments | (0.01 | ) | (0.07 | ) | (0.03 | ) | (0.08 | ) | |||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 6.64 | $ | 11.87 | $ | 8.26 | $ | 10.07 | |||||||||||||||||||||
Costs applicable to sales | $ | 108,246 | |||||||||||||||||||||||||||
Treatment and refining costs | 1,046 | ||||||||||||||||||||||||||||
Sustaining capital | 28,571 | ||||||||||||||||||||||||||||
General and administrative | 7,650 | ||||||||||||||||||||||||||||
Exploration | 6,429 | ||||||||||||||||||||||||||||
Reclamation | 4,667 | ||||||||||||||||||||||||||||
Project/pre-development costs | 517 | ||||||||||||||||||||||||||||
All-in sustaining costs | $ | 157,126 | |||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,783,280 | ||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,086,820 | ||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,870,100 | ||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 17.71 | |||||||||||||||||||||||||||
Inventory adjustments | $ | (0.09 | ) | ||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 17.62 | |||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 10,667,255 | ||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 14.73 | |||||||||||||||||||||||||||
Inventory adjustments | $ | (0.08 | ) | ||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 14.65 | |||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||
for Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Total | Kensington | Wharf | Total | |||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 47,421 | $ | 29,136 | $ | 76,557 | $ | 35,347 | $ | 17,966 | $ | 53,313 | $ | 129,870 | |||||||||||||||
Amortization | 16,325 | 4,831 | 21,156 | 6,717 | 2,657 | 9,374 | 30,530 | ||||||||||||||||||||||
Costs applicable to sales | $ | 31,096 | $ | 24,305 | $ | 55,401 | $ | 28,630 | $ | 15,309 | $ | 43,939 | $ | 99,340 | |||||||||||||||
Silver equivalent ounces sold | 3,883,983 | 1,789,007 | 5,672,990 | 8,390,090 | |||||||||||||||||||||||||
Gold equivalent ounces sold | 27,763 | 17,522 | 45,285 | ||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 8.01 | $ | 13.59 | $ | 9.77 | $ | 1,031 | $ | 874 | $ | 970 | $ | 11.84 | |||||||||||||||
Inventory adjustments | — | (0.26 | ) | (0.08 | ) | (21 | ) | (4 | ) | (15 | ) | (0.13 | ) | ||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 8.01 | $ | 13.33 | $ | 9.69 | $ | 1,010 | $ | 870 | $ | 955 | $ | 11.71 | |||||||||||||||
Costs applicable to sales per average spot ounce | $ | 6.94 | $ | 12.13 | $ | 8.55 | $ | 9.87 | |||||||||||||||||||||
Inventory adjustments | — | (0.24 | ) | (0.07 | ) | (0.11 | ) | ||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 6.94 | $ | 11.89 | $ | 8.48 | $ | 9.76 | |||||||||||||||||||||
Costs applicable to sales | $ | 99,340 | |||||||||||||||||||||||||||
Treatment and refining costs | 1,195 | ||||||||||||||||||||||||||||
Sustaining capital | 23,389 | ||||||||||||||||||||||||||||
General and administrative | 8,804 | ||||||||||||||||||||||||||||
Exploration | 6,683 | ||||||||||||||||||||||||||||
Reclamation | 4,532 | ||||||||||||||||||||||||||||
Project/pre-development costs | 1,421 | ||||||||||||||||||||||||||||
All-in sustaining costs | $ | 145,364 | |||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,672,990 | ||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 2,717,100 | ||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,390,090 | ||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 17.33 | |||||||||||||||||||||||||||
Inventory adjustments | $ | (0.13 | ) | ||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 17.20 | |||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 10,066,759 | ||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 14.44 | |||||||||||||||||||||||||||
Inventory adjustments | $ | (0.11 | ) | ||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 14.33 | |||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||
for Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 219,920 | $ | 130,227 | $ | 1,046 | $ | 351,193 | $ | 152,118 | $ | 82,334 | $ | 234,452 | $ | 585,645 | |||||||||||||||||
Amortization | 73,744 | 22,306 | 301 | 96,351 | 36,022 | 13,012 | 49,034 | 145,385 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 146,176 | $ | 107,921 | $ | 745 | $ | 254,842 | $ | 116,096 | $ | 69,322 | $ | 185,418 | $ | 440,260 | |||||||||||||||||
Silver equivalent ounces sold | 15,490,734 | 8,209,888 | 107,027 | 23,807,649 | 37,334,889 | ||||||||||||||||||||||||||||
Gold equivalent ounces sold | 125,982 | 99,472 | 225,454 | ||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 9.44 | $ | 13.15 | $ | 6.96 | $ | 10.70 | $ | 922 | $ | 697 | $ | 822 | $ | 11.79 | |||||||||||||||||
Inventory adjustments | (0.08 | ) | (0.07 | ) | — | (0.08 | ) | (2 | ) | 3 | — | (0.05 | ) | ||||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 9.36 | $ | 13.08 | $ | 6.96 | $ | 10.62 | $ | 920 | $ | 700 | $ | 822 | $ | 11.74 | |||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 8.45 | $ | 12.04 | $ | 9.66 | $ | 10.24 | |||||||||||||||||||||||||
Inventory adjustments | (0.07 | ) | (0.07 | ) | (0.07 | ) | (0.04 | ) | |||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 8.38 | $ | 11.97 | $ | 9.59 | $ | 10.20 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 440,260 | |||||||||||||||||||||||||||||||
Treatment and refining costs | 5,912 | ||||||||||||||||||||||||||||||||
Sustaining capital(1) | 65,010 | ||||||||||||||||||||||||||||||||
General and administrative | 33,616 | ||||||||||||||||||||||||||||||||
Exploration | 30,311 | ||||||||||||||||||||||||||||||||
Reclamation | 14,910 | ||||||||||||||||||||||||||||||||
Project/pre-development costs | 5,543 | ||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 595,562 | |||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 23,807,649 | ||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 13,527,240 | ||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 37,334,889 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 15.95 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.05 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 15.90 | |||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 42,969,841 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 13.86 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.04 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 13.82 | |||||||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce for Three Months Ended December 31, 2017 |
|||||||||||||||||||||||||||||||||
Silver | Gold | Total | |||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 58,775 | $ | 41,006 | $ | — | $ | 99,781 | $ | 42,640 | $ | 24,033 | $ | 66,673 | $ | 166,454 | |||||||||||||||||
Amortization | 22,749 | 6,960 | — | 29,709 | 10,633 | 4,129 | 14,762 | 44,471 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 36,026 | $ | 34,046 | $ | — | $ | 70,072 | $ | 32,007 | $ | 19,904 | $ | 51,911 | $ | 121,983 | |||||||||||||||||
Silver equivalent ounces sold | 4,680,802 | 2,657,975 | — | 7,338,777 | 11,232,057 | ||||||||||||||||||||||||||||
Gold equivalent ounces sold | 35,633 | 29,255 | 64,888 | ||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 7.70 | $ | 12.81 | $ | — | $ | 9.55 | $ | 898 | $ | 680 | $ | 800 | $ | 10.86 | |||||||||||||||||
Inventory adjustments | (0.16 | ) | (0.04 | ) | — | (0.12 | ) | (2 | ) | 2 | — | (0.08 | ) | ||||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 7.54 | $ | 12.77 | $ | — | $ | 9.43 | $ | 896 | $ | 682 | $ | 800 | $ | 10.78 | |||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 6.78 | $ | 11.41 | $ | 8.45 | $ | 9.21 | |||||||||||||||||||||||||
Inventory adjustments | (0.14 | ) | (0.04 | ) | (0.10 | ) | (0.07 | ) | |||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 6.64 | $ | 11.37 | $ | 8.35 | $ | 9.14 | |||||||||||||||||||||||||
Costs applicable to sales | $ | 121,983 | |||||||||||||||||||||||||||||||
Treatment and refining costs | 1,600 | ||||||||||||||||||||||||||||||||
Sustaining capital | 18,520 | ||||||||||||||||||||||||||||||||
General and administrative | 9,120 | ||||||||||||||||||||||||||||||||
Exploration | 7,455 | ||||||||||||||||||||||||||||||||
Reclamation | 4,075 | ||||||||||||||||||||||||||||||||
Project/pre-development costs | 578 | ||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 163,331 | |||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 7,338,777 | ||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,893,280 | ||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 11,232,057 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 14.53 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.08 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 14.45 | |||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 13,246,634 | ||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 12.33 | |||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.07 | ) | ||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 12.26 | |||||||||||||||||||||||||||||||
Reconciliation of Costs Applicable to Sales for 2019 Guidance |
||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total | ||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 196,310 | $ | 131,918 | $ | 154,285 | $ | 90,299 | $ | 156,417 | $ | 729,229 | ||||||||||||||||||
Amortization | 62,808 | 21,606 | 36,909 | 11,583 | 57,177 | 190,083 | ||||||||||||||||||||||||
Costs applicable to sales | $ | 133,502 | $ | 110,312 | $ | 117,376 | $ | 78,716 | $ | 99,240 | $ | 539,146 | ||||||||||||||||||
By-product credit | — | — | — | (1,167 | ) | — | (1,167 | ) | ||||||||||||||||||||||
Adjusted costs applicable to sales | $ | 133,502 | $ | 110,312 | $ | 117,376 | $ | 77,549 | $ | 99,240 | $ | 537,979 | ||||||||||||||||||
Metal Sales | ||||||||||||||||||||||||||||||
Gold ounces | 100,000 | 45,000 | 121,000 | 85,500 | ||||||||||||||||||||||||||
Silver ounces | 6,850,000 | 4,800,000 | 75,000 | 2,100,000 | ||||||||||||||||||||||||||
Zinc pounds | 35,000,000 | |||||||||||||||||||||||||||||
Lead pounds | 28,500,000 | |||||||||||||||||||||||||||||
Revenue Split | ||||||||||||||||||||||||||||||
Gold | 52% | 43% | 100% | 100% | — | |||||||||||||||||||||||||
Silver | 48% | 57% | — | — | 32% | |||||||||||||||||||||||||
Zinc | — | — | — | — | 40% | |||||||||||||||||||||||||
Lead | — | — | — | — | 28% | |||||||||||||||||||||||||
Costs applicable to sales per ounce | ||||||||||||||||||||||||||||||
Gold | $650 - $750 | $1,000 - $1,100 | $950 - $1,050 | $850 - $950 | — | |||||||||||||||||||||||||
Silver | $9.00 - $10.00 | $12.50 - $13.50 | — | — | $14.00 - $16.00 | |||||||||||||||||||||||||
Zinc | — | — | — | — | $1.00 - $1.25 | |||||||||||||||||||||||||
Lead | — | — | — | — | $0.85 - $1.05 | |||||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190220005929/en/