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Business Wire 1-May-2019 4:30 PM
Full-Year Production and Cost Guidance Reaffirmed
Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE:CDE) today reported first quarter 2019 financial results, including revenue of $154.9 million, adjusted EBITDA1 of $26.1 million and cash flow from operating activities of $(11.8) million. Prior to changes in working capital, cash flow from operating activities totaled $21.5 million. Including a non-cash write down of $15.4 million taken in the quarter, the Company reported GAAP net loss from continuing operations of $24.9 million, or $0.12 per share. On an adjusted basis1, the Company reported a net loss of $23.0 million, or $0.11 per share.
The Company is reaffirming full-year 2019 production guidance of 334,000 - 372,000 ounces of gold, 12.2 - 14.7 million ounces of silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds of lead. In addition, full-year cost guidance is being reaffirmed.
Key Highlights
"First quarter operational and financial results were consistent with our expectations," said Mitchell J. Krebs, President and Chief Executive Officer. "Although Silvertip's ongoing ramp-up remains a near-term drag on our free cash flow and liquidity levels until it achieves steady-state, our balanced portfolio of operations are advancing several key initiatives that are expected to help us achieve our objective of returning to positive free cash flow in 2019."
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) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||||||||||||
Gold Sales | $ | 106.8 | $ | 96.3 | $ | 103.0 | $ | 117.2 | $ | 110.5 | ||||||||||
Silver Sales | $ | 40.1 | $ | 44.6 | $ | 43.0 | $ | 52.8 | $ | 52.8 | ||||||||||
Zinc Sales | $ | 5.6 | $ | 1.9 | $ | 1.7 | $ | — | $ | — | ||||||||||
Lead Sales | $ | 2.4 | $ | 1.0 | $ | 1.0 | $ | — | $ | — | ||||||||||
Consolidated Revenue | $ | 154.9 | $ | 143.8 | $ | 148.8 | $ | 170.0 | $ | 163.3 | ||||||||||
Costs Applicable to Sales | $ | 131.7 | $ | 116.6 | $ | 116.9 | $ | 108.2 | $ | 99.3 | ||||||||||
General and Administrative Expenses | $ | 9.5 | $ | 7.1 | $ | 7.7 | $ | 7.7 | $ | 8.8 | ||||||||||
Net Income (Loss) | $ | (24.9 | ) | $ | 0.4 | $ | (53.0 | ) | $ | 2.9 | $ | 0.7 | ||||||||
Net Income (Loss) Per Share | $ | (0.12 | ) | $ | 0.00 | $ | (0.29 | ) | $ | 0.02 | $ | 0.00 | ||||||||
Adjusted Net Income (Loss)1 | $ | (23.0 | ) | $ | 16.1 | $ | (19.7 | ) | $ | 1.1 | $ | 0.3 | ||||||||
Adjusted Net Income (Loss)1 Per Share | $ | (0.11 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 | ||||||||
Weighted Average Shares Outstanding | 202.4 | 199.5 | 185.2 | 187.5 | 187.6 | |||||||||||||||
EBITDA1 | $ | 14.8 | $ | 7.9 | $ | (12.3 | ) | $ | 42.1 | $ | 49.4 | |||||||||
Adjusted EBITDA1 | $ | 26.1 | $ | 36.2 | $ | 24.7 | $ | 48.4 | $ | 49.2 | ||||||||||
Cash Flow from Operating Activities | $ | (11.8 | ) | $ | 0.1 | $ | 5.8 | $ | (1.3 | ) | $ | 15.5 | ||||||||
Capital Expenditures | $ | 27.4 | $ | 17.8 | $ | 39.5 | $ | 41.2 | $ | 42.3 | ||||||||||
Free Cash Flow1 | $ | (39.3 | ) | $ | (17.7 | ) | $ | (33.7 | ) | $ | (42.5 | ) | $ | (26.8 | ) | |||||
Cash, Equivalents & Short-Term Investments | $ | 69.0 | $ | 115.1 | $ | 104.7 | $ | 123.5 | $ | 159.6 | ||||||||||
Total Debt2 | $ | 456.8 | $ | 458.8 | $ | 429.2 | $ | 419.7 | $ | 414.0 | ||||||||||
Average Realized Price Per Ounce – Gold | $ | 1,251 | $ | 1,214 | $ | 1,150 | $ | 1,241 | $ | 1,268 | ||||||||||
Average Realized Price Per Ounce – Silver | $ | 15.22 | $ | 14.59 | $ | 14.68 | $ | 16.48 | $ | 16.70 | ||||||||||
Average Realized Price Per Pound – Zinc | $ | 1.19 | $ | 0.83 | $ | 0.93 | $ | — | $ | — | ||||||||||
Average Realized Price Per Pound – Lead | $ | 0.86 | $ | 0.80 | $ | 0.90 | $ | — | $ | — | ||||||||||
Gold Ounces Produced | 78,336 | 92,546 | 87,539 | 94,052 | 85,383 | |||||||||||||||
Silver Ounces Produced | 2.5 | 3.5 | 2.9 | 3.2 | 3.2 | |||||||||||||||
Zinc Pounds Produced | 3.7 | 3.1 | 1.1 | — | — | |||||||||||||||
Lead Pounds Produced | 3.1 | 1.7 | 0.4 | — | — | |||||||||||||||
Gold Ounces Sold | 85,326 | 79,291 | 89,609 | 94,455 | 87,153 | |||||||||||||||
Silver Ounces Sold | 2.6 | 3.1 | 2.9 | 3.2 | 3.2 | |||||||||||||||
Zinc Pounds Sold | 4.7 | 2.6 | 1.8 | — | — | |||||||||||||||
Lead Pounds Sold | 2.7 | 1.4 | 1.2 | — | — | |||||||||||||||
Financial Results
First quarter revenue increased 8% to $154.9 million compared to $143.8 million in the fourth quarter of 2018. The Company sold 85,326 ounces of gold and 2.6 million ounces of silver during the quarter, representing an 8% increase and 14% decrease, respectively, compared to the prior period. Zinc and lead sales totaled 4.7 million and 2.7 million pounds during the first quarter, or 81% and 93% increases, respectively, quarter-over-quarter.
Average realized gold and silver prices for the quarter were $1,251 and $15.22 per ounce, respectively, or 3% and 4% higher quarter-over-quarter. The average realized gold price during the quarter reflects the sale of 8,803 gold ounces at a price of $800 per ounce pursuant to Palmarejo's gold stream agreement. Average realized zinc and lead prices, net of treatment and refining charges, for the quarter were $1.19 and $0.86 per pound, respectively, or 43% and 8% higher compared to the prior quarter.
Gold and silver sales accounted for 69% and 26%, respectively, of first quarter revenue, while zinc and lead sales contributed 4% and 1%, respectively. The Company's U.S. operations accounted for approximately 59% of first quarter revenue, down from approximately 62% in the prior period primarily due to increased sales from Silvertip, which totaled $10.9 million during the quarter.
Quarterly costs applicable to sales were $131.7 million compared to $116.6 million in the fourth quarter of 2018, reflecting higher operating costs at Palmarejo, Kensington and Silvertip. First quarter general and administrative expenses were $9.5 million compared to $7.1 million in the prior period driven by higher employee-related and legal expenses.
Quarterly exploration expense was $3.7 million, or 10% lower quarter-over-quarter. The Company focused on near-mine targets at Palmarejo and Kensington, while commencing drilling activities at the Sterling and Crown exploration properties in southern Nevada. See page 11 for further details.
During the first quarter, the Company recorded an income tax benefit of $8.7 million, largely attributable to lower taxable earnings during the quarter. Cash income and mining taxes paid during the quarter totaled $9.7 million. In April 2019, the Company paid $9.3 million in cash taxes related to its acquisition of Northern Empire Resources Corp. ("Northern Empire"). The cash outflow will be reflected in the Company's second quarter financial results and will allow Coeur to utilize its U.S. net operating loss carryforwards against any future income generated from the Sterling and Crown properties.
Operating cash flow of $(11.8) million in the first quarter was impacted by unfavorable changes in working capital, primarily due to an inventory adjustment at Silvertip. Excluding these changes, first quarter operating cash flow was $21.5 million1.
First quarter capital expenditures totaled $27.4 million, compared to $17.8 million in the fourth quarter 2018. Higher capital expenditures were driven primarily by higher investment levels at Palmarejo, Rochester and Silvertip. Sustaining and development capital expenditures accounted for approximately 79% and 21%, respectively, of the Company's capital expenditures in the first quarter.
On April 30, 2019, the Company amended its credit agreement with respect to its senior secured revolving credit facility. The amended terms of the credit agreement provide the Company with additional financial flexibility during the remainder of 2019 while ramp-up activities continue at Silvertip and anticipated production levels increase across the Company's portfolio during the second half of the year.
Operations
First quarter 2019 highlights for each of the Company's operations are provided below.
Palmarejo, Mexico |
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(Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
Tons milled | 378,987 | 378,389 | 300,116 | 344,073 | 359,893 | |||||
Average gold grade (oz/t) | 0.07 | 0.08 | 0.10 | 0.11 | 0.10 | |||||
Average silver grade (oz/t) | 4.64 | 5.96 | 6.26 | 6.86 | 6.88 | |||||
Average recovery rate – Au | 83.4% | 97.6% | 88.8% | 89.9% | 80.4% | |||||
Average recovery rate – Ag | 72.8% | 84.0% | 82.2% | 87.5% | 81.4% | |||||
Gold ounces produced | 23,205 | 31,239 | 27,885 | 33,702 | 29,896 | |||||
Silver ounces produced (000's) | 1,278 | 1,893 | 1,544 | 2,066 | 2,013 | |||||
Gold ounces sold | 27,394 | 23,667 | 29,830 | 31,207 | 30,888 | |||||
Silver ounces sold (000's) | 1,405 | 1,534 | 1,572 | 2,092 | 2,031 | |||||
Average realized price per gold ounce | $1,154 | $1,148 | $1,082 | $1,162 | $1,168 | |||||
Average realized price per silver ounce | $15.39 | $14.57 | $14.75 | $16.49 | $16.73 | |||||
Metal sales | $53.2 | $49.6 | $55.5 | $70.7 | $70.0 | |||||
Costs applicable to sales | $33.2 | $27.1 | $31.6 | $30.3 | $31.1 | |||||
Adjusted CAS per AuOz1 | $713 | $624 | $615 | $497 | $519 | |||||
Adjusted CAS per AgOz1 | $9.66 | $7.92 | $8.39 | $7.05 | $7.43 | |||||
Exploration expense | $1.0 | $0.1 | $3.2 | $3.2 | $4.0 | |||||
Cash flow from operating activities | $5.9 | $13.3 | $8.6 | $1.3 | $27.3 | |||||
Sustaining capital expenditures (excludes capital lease payments) | $6.0 | $3.6 | $2.0 | $9.5 | $9.3 | |||||
Development capital expenditures | $2.7 | $2.3 | $2.7 | $— | $— | |||||
Total capital expenditures | $8.7 | $5.9 | $4.7 | $9.5 | $9.3 | |||||
Free cash flow1 | $(2.8) | $7.4 | $3.9 | $(8.2) | $18.0 | |||||
Rochester, Nevada |
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(Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
Ore tons placed | 2,667,559 | 3,674,566 | 4,061,082 | 4,083,028 | 4,351,131 | |||||
Average silver grade (oz/t) | 0.46 | 0.46 | 0.52 | 0.53 | 0.54 | |||||
Average gold grade (oz/t) | 0.003 | 0.004 | 0.004 | 0.004 | 0.003 | |||||
Silver ounces produced (000's) | 960 | 1,466 | 1,290 | 1,125 | 1,157 | |||||
Gold ounces produced | 8,256 | 15,926 | 14,702 | 12,273 | 11,487 | |||||
Silver ounces sold (000's) | 1,000 | 1,391 | 1,248 | 1,097 | 1,119 | |||||
Gold ounces sold | 8,511 | 15,339 | 14,257 | 12,030 | 11,163 | |||||
Average realized price per silver ounce | $15.31 | $14.53 | $14.70 | $16.47 | $16.66 | |||||
Average realized price per gold ounce | $1,299 | $1,234 | $1,204 | $1,297 | $1,331 | |||||
Metal sales | $26.4 | $39.1 | $35.5 | $33.7 | $33.5 | |||||
Costs applicable to sales | $22.5 | $29.4 | $27.5 | $24.5 | $24.3 | |||||
Adjusted CAS per AgOz1 | $12.83 | $10.79 | $11.35 | $11.89 | $11.85 | |||||
Adjusted CAS per AuOz1 | $1,092 | $917 | $929 | $936 | $947 | |||||
Exploration expense | $0.1 | — | $0.1 | $0.2 | $— | |||||
Cash flow from operating activities | $(1.0) | $17.9 | $5.7 | $6.0 | $3.4 | |||||
Sustaining capital expenditures (excludes capital lease payments) | $1.8 | $7.1 | $2.7 | $0.4 | $0.5 | |||||
Development capital expenditures | $2.8 | $(4.1) | $0.9 | $0.3 | $2.1 | |||||
Total capital expenditures | $4.6 | $3.0 | $3.6 | $0.7 | $2.6 | |||||
Free cash flow1 | $(5.6) | $14.9 | $2.1 | $5.3 | $0.8 | |||||
Kensington, Alaska |
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(Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
Tons milled | 164,332 | 149,998 | 163,603 | 168,751 | 158,706 | |||||
Average gold grade (oz/t) | 0.20 | 0.21 | 0.17 | 0.16 | 0.17 | |||||
Average recovery rate | 90.2% | 91.1% | 90.4% | 92.6% | 94.0% | |||||
Gold ounces produced | 29,973 | 28,421 | 25,515 | 25,570 | 26,064 | |||||
Gold ounces sold | 31,335 | 24,979 | 25,648 | 28,165 | 27,763 | |||||
Average realized price per gold ounce, gross | $1,301 | $1,267 | $1,195 | $1,305 | $1,337 | |||||
Treatment and refining charges per gold ounce | $15 | $21 | $34 | $36 | $30 | |||||
Average realized price per gold ounce, net | $1,286 | $1,246 | $1,161 | $1,269 | $1,307 | |||||
Metal sales | $40.3 | $31.1 | $29.8 | $35.7 | $36.3 | |||||
Costs applicable to sales | $32.2 | $21.4 | $28.2 | $34.2 | $28.6 | |||||
Adjusted CAS per AuOz1 | $990 | $843 | $1,091 | $1,196 | $1,010 | |||||
Exploration expense | $0.5 | $1.3 | $1.6 | $1.4 | $1.6 | |||||
Cash flow from operating activities | $6.2 | $7.9 | $(0.4) | $3.2 | $4.6 | |||||
Sustaining capital expenditures (excludes capital lease payments) | $9.4 | $9.8 | $9.7 | $9.2 |
$8.5 |
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Development capital expenditures | $— | $0.8 | $2.3 | $1.5 |
$2.9 |
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Total capital expenditures | $9.4 | $10.6 | $12.0 | $10.7 | $11.4 | |||||
Free cash flow1 | $(3.2) | $(2.7) | $(12.4) | $(7.5) | $(6.8) | |||||
Wharf, South Dakota |
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(Dollars in millions, except per ounce amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
Ore tons placed | 1,090,510 | 1,644,168 | 1,127,391 | 1,075,820 | 1,076,395 | |||||
Average gold grade (oz/t) | 0.020 | 0.020 | 0.023 | 0.023 | 0.022 | |||||
Gold ounces produced | 16,902 | 16,960 | 19,437 | 22,507 | 17,936 | |||||
Silver ounces produced (000's) | 13 | 13 | 13 | 13 | 12 | |||||
Gold ounces sold | 18,086 | 15,306 | 19,874 | 23,053 | 17,339 | |||||
Silver ounces sold (000's) | 14 | 11 | 12 | 14 | 11 | |||||
Average realized price per gold ounce | $1,317 | $1,247 | $1,198 | $1,285 | $1,341 | |||||
Metal sales | $24.0 | $19.3 | $24.0 | $29.8 | $23.4 | |||||
Costs applicable to sales | $17.4 | $14.6 | $18.0 | $19.3 | $15.3 | |||||
Adjusted CAS per AuOz1 | $949 | $939 | $895 | $822 | $868 | |||||
Exploration expense | $— | — | $0.1 | $— | $— | |||||
Cash flow from operating activities | $4.2 | $(1.9) | $3.7 | $11.5 | $(1.4) | |||||
Sustaining capital expenditures (excludes capital lease payments) | $0.4 | $0.7 | $1.2 | $1.2 | $0.3 | |||||
Development capital expenditures | $— | $— | $— | $— | $— | |||||
Total capital expenditures | $0.4 | 0.7 | $1.2 | $1.2 | $0.3 | |||||
Free cash flow1 | $3.8 | $(2.6) | $2.5 | $10.3 | $(1.7) | |||||
Silvertip, British Columbia |
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(Dollars in millions, except per ounce and per pound amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||
Tons milled | 62,051 | 38,802 | 10,652 | — | — | |||||
Average silver grade (oz/t) | 5.50 | 6.06 | 6.66 | — | — | |||||
Average zinc grade (%) | 5.9% | 5.8% | 8.0% | —% | —% | |||||
Average lead grade (%) | 3.7% | 3.9% | 4.3% | —% | —% | |||||
Average recovery rate – Ag | 69.9% | 60.5% | 56.3% | —% | —% | |||||
Average recovery rate – Zn | 50.5% | 69.1% | 64.5% | —% | —% | |||||
Average recovery rate – Pb | 66.8% | 54.7% | 45.1% | —% | —% | |||||
Silver ounces produced (000's) | 239 | 142 | 40 | — | — | |||||
Zinc pounds produced (000's) | 3,719 | 3,082 | 1,099 | — | — | |||||
Lead pounds produced (000's) | 3,077 | 1,659 | 413 | — | — | |||||
Silver ounces sold (000's) | 215 | 124 | 99 | — | — | |||||
Zinc pounds sold (000's) | 4,723 | 2,604 | 1,772 | — | — | |||||
Lead pounds sold (000's) | 2,748 | 1,419 | 1,230 | — | — | |||||
Average realized price per silver ounce, gross | $14.98 | $15.54 | $14.62 | $— | $— | |||||
Treatment and refining charges per silver ounce | $1.24 | $1.38 | $3.34 | $— | $— | |||||
Average realized price per silver ounce, net | $13.74 | $14.16 | $11.28 | $— | $— | |||||
Average realized price per zinc pound, gross | $1.50 | $1.07 | $1.20 | $— | $— | |||||
Treatment and refining charges per zinc pound | $0.31 | $0.24 | $0.27 | $— | $— | |||||
Average realized price per zinc pound, net | $1.19 | $0.83 | $0.93 | $— | $— | |||||
Average realized price per lead pound, gross | $0.92 | $0.87 | $0.97 | $— | $— | |||||
Treatment and refining charges per lead pound | $0.06 | $0.07 | $0.07 | $— | $— | |||||
Average realized price per lead pound, net | $0.86 | $0.80 | $0.90 | $— | $— | |||||
Metal sales | $10.9 | $4.8 | $4.1 | $— | $— | |||||
Costs applicable to sales | $26.4 | $24.1 | $11.5 | $— | $— | |||||
Adjusted CAS per AgOz1 | $13.73 | $17.68 | $9.86 | $— | $— | |||||
Adjusted CAS per ZnLb1 | $1.18 | $0.95 | $0.64 | $— | $— | |||||
Adjusted CAS per PbLb1 | $0.88 | $1.02 | $0.55 | $— | $— | |||||
Exploration expense | $0.1 | $0.3 | $2.3 | $0.1 | $— | |||||
Cash flow from operating activities | $(13.9) | $(34.1) | $(6.8) | $— | $— | |||||
Sustaining capital expenditures (excludes capital lease payments) | $4.1 | $8.2 | $0.4 | $— | $— | |||||
Development capital expenditures | $— | $(10.8) | $17.5 | $19.0 | $18.6 | |||||
Total capital expenditures | $4.1 | $(2.6) | $17.9 | $19.0 | $18.6 | |||||
Free cash flow1 | $(18.0) | $(31.5) | $(24.7) | $(19.0) | $(18.6) |
Exploration
During the first quarter, Coeur's exploration activities focused on resource expansion and infill drilling at Palmarejo and Kensington as well as the Sterling and Crown projects, which were acquired in October 2018 as part of the acquisition of Northern Empire. The drill programs at Rochester and Silvertip are scheduled to resume in the second quarter. During the first quarter, the Company completed 27,724 feet (8,450 meters) of resource expansion drilling, a decrease of approximately 36% quarter-over-quarter. During the quarter, Coeur also completed 62,402 feet (19,020 meters) of resource infill drilling, an increase of approximately 72% quarter-over-quarter.
Total feet drilled during the first quarter was approximately 13% higher compared to the prior period, reflecting Coeur's continued commitment to its success-based exploration program. For the first quarter, expensed resource expansion drilling and capitalized infill drilling were $3.7 million and $2.9 million, respectively, compared to $4.1 million and $1.5 million during the fourth quarter 2018.
At Palmarejo, up to seven surface and underground core rigs were active during the first quarter. Drilling activities were focused on the La Nación, Guadalupe, Los Bancos, Zapata and Valentina veins. Expansion drilling delineated a potential new zone of silver-gold mineralization at Valentina, which is located 5,250 feet (1,600 meters) west of Guadalupe. Similarly, expansion drilling has extended the Zapata vein northwest towards Valentina, such that there is a 2,950-foot (900-meter) gap where no drilling exists between the two drill stations. The Company plans to utilize two drills to focus on expansion drilling to explore this zone in the second quarter. Infill drilling during the quarter focused on the La Nación and Guadalupe veins.
At Kensington, three underground core drill rigs were active at the Kensington Main Zone 30, Lower Raven and Elmira. Exploration efforts in these zones were focused on capitalized resource infill drilling.
At the Sterling and Crown exploration properties located in southern Nevada, one reverse circulation rig was active during the first quarter. Exploration activities were initially focused on both infill and expansion drilling at the Sterling property. In March, the rig was moved to focus on expansion drilling at the South Daisy resource, which is contained in the Crown Block. Surface exploration mapping and sampling at the Crown Block has resulted in two new drill targets. As a result of this newly sampled area, new drill pads are being permitted for testing in the second quarter. Drilling is planned to continue with one rig focused on the Daisy and SNA deposits in the Crown Block until the third quarter. Coeur expects to add additional rigs at the Crown Block later in the year.
2019 Production Guidance |
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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 |
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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 |
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(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 first quarter financial results on May 2, 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 J. Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through May 16, 2019.
Replay numbers: | (877) 344-7529 (U.S.) | ||||||
(855) 669-9658 (Canada) | |||||||
(412) 317-0088 (International) | |||||||
Conference ID: |
101 29 527 |
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About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. 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, 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 Silvertip will not obtain necessary permits on the expected timeline or at all, 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 reports on Form 10-K and Form 10-Q. 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), operating cash flow excluding changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (zinc or lead). We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow excluding changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) and pound (zinc and lead) are important measures in assessing the Company's overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2018.
Notes
Average Spot Prices |
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1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||||||||||||
Average Silver Spot Price Per Ounce | $ | 15.57 | $ | 14.54 | $ | 15.02 | $ | 16.53 | $ | 16.77 | |||||||||
Average Gold Spot Price Per Ounce | $ | 1,304 | $ | 1,226 | $ | 1,213 | $ | 1,306 | $ | 1,329 | |||||||||
Average Zinc Spot Price Per Pound | $ | 1.23 | $ | 1.19 | $ | 1.15 | $ | 1.41 | $ | 1.55 | |||||||||
Average Lead Spot Price Per Pound | $ | 0.92 | $ | 0.89 | $ | 0.95 | $ | 1.08 | $ | 1.14 |
COEUR MINING, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, 2019 (unaudited) | December 31, 2018 | |||||||
ASSETS | In thousands, except share data | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 69,033 | $ | 115,081 | ||||
Receivables | 33,530 | 29,744 | ||||||
Inventory | 60,653 | 66,279 | ||||||
Ore on leach pads | 74,517 | 75,122 | ||||||
Restricted assets | — | — | ||||||
Prepaid expenses and other | 13,681 | 11,393 | ||||||
251,414 | 297,619 | |||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 299,756 | 298,451 | ||||||
Mining properties, net | 962,058 | 971,567 | ||||||
Ore on leach pads | 72,633 | 66,964 | ||||||
Restricted assets | 10,444 | 12,133 | ||||||
Equity and debt securities | 25,875 | 17,806 | ||||||
Receivables | 31,571 | 31,151 | ||||||
Other | 77,614 | 16,809 | ||||||
TOTAL ASSETS | $ | 1,731,365 | $ | 1,712,500 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 51,777 | $ | 47,210 | ||||
Accrued liabilities and other | 102,136 | 82,619 | ||||||
Debt | 24,520 | 24,937 | ||||||
Reclamation | 6,552 | 6,552 | ||||||
Deferred tax liabilities | — | — | ||||||
184,985 | 161,318 | |||||||
NON-CURRENT LIABILITIES | ||||||||
Debt | 432,269 | 433,889 | ||||||
Reclamation | 131,275 | 128,994 | ||||||
Deferred tax liabilities | 70,811 | 79,070 | ||||||
Other long-term liabilities | 79,690 | 56,717 | ||||||
714,045 | 698,670 | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 205,111,221 issued and outstanding at March 31, 2019 and 203,310,443 at December 31, 2018 | 2,051 | 2,033 | ||||||
Additional paid-in capital | 3,442,029 | 3,443,082 | ||||||
Accumulated other comprehensive income (loss) | — | (59 | ) | |||||
Accumulated deficit | (2,611,745 | ) | (2,592,544 | ) | ||||
832,335 | 852,512 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,731,365 | $ | 1,712,500 |
COEUR MINING, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
In thousands, except share data | |||||||
Revenue | $ | 154,870 | $ | 163,267 | |||
COSTS AND EXPENSES | |||||||
Costs applicable to sales(1) | 131,650 | 99,340 | |||||
Amortization | 41,876 | 30,777 | |||||
General and administrative | 9,474 | 8,804 | |||||
Exploration | 3,714 | 6,683 | |||||
Write-downs | — | — | |||||
Pre-development, reclamation, and other | 4,434 | 4,225 | |||||
Total costs and expenses | 191,148 | 149,829 | |||||
OTHER INCOME (EXPENSE), NET | |||||||
Loss on debt extinguishment | — | — | |||||
Fair value adjustments, net | 9,120 | 4,654 | |||||
Interest expense, net of capitalized interest | (6,454 | ) | (5,965 | ) | |||
Other, net | 60 | 513 | |||||
Total other income (expense), net | 2,726 | (798 | ) | ||||
Income (loss) before income and mining taxes | (33,552 | ) | 12,640 | ||||
Income and mining tax (expense) benefit | 8,658 | (11,949 | ) | ||||
Income (loss) from continuing operations | $ | (24,894 | ) | $ | 691 | ||
Income (loss) from discontinued operations | 5,693 | 550 | |||||
NET INCOME (LOSS) | $ | (19,201 | ) | $ | 1,241 | ||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | |||||||
Unrealized gain (loss) on debt and equity securities | 59 | (278 | ) | ||||
Reclassification adjustments for impairment of equity securities | — | — | |||||
Reclassification adjustments for realized (gain) loss on sale of equity securities | — | — | |||||
Other comprehensive income (loss) | 59 | (278 | ) | ||||
COMPREHENSIVE INCOME (LOSS) | $ | (19,142 | ) | $ | 963 | ||
NET INCOME (LOSS) PER SHARE | |||||||
Basic income (loss) per share: | |||||||
Net income (loss) from continuing operations | $ | (0.12 | ) | $ | 0.00 | ||
Net income (loss) from discontinued operations | 0.03 | 0.00 | |||||
Basic(2) | $ | (0.09 | ) | $ | 0.00 | ||
Diluted income (loss) per share: | |||||||
Net income (loss) from continuing operations | $ | (0.12 | ) | $ | 0.00 | ||
Net income (loss) from discontinued operations | 0.03 | 0.00 | |||||
Diluted(2) | $ | (0.09 | ) | $ | 0.00 |
(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) | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
In thousands | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | (19,201 | ) | $ | 1,241 | |||
(Income) loss from discontinued operations | (5,693 | ) | (550 | ) | ||||
Adjustments: | ||||||||
Amortization | 41,876 | 30,777 | ||||||
Accretion | 2,943 | 3,318 | ||||||
Deferred taxes | (8,259 | ) | 454 | |||||
Fair value adjustments, net | (9,120 | ) | (4,654 | ) | ||||
Stock-based compensation | 2,223 | 2,786 | ||||||
Inventory write-downs | 15,447 | — | ||||||
Other | 1,250 | 68 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (5,735 | ) | (1,691 | ) | ||||
Prepaid expenses and other current assets | (2,684 | ) | (5,635 | ) | ||||
Inventory and ore on leach pads | (18,821 | ) | (8,708 | ) | ||||
Accounts payable and accrued liabilities | (6,072 | ) | (1,865 | ) | ||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS | (11,846 | ) | 15,541 | |||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS | — | (2,690 | ) | |||||
CASH PROVIDED BY OPERATING ACTIVITIES | (11,846 | ) | 12,851 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (27,438 | ) | (42,345 | ) | ||||
Proceeds from the sale of assets | 847 | 60 | ||||||
Purchase of investments | — | (361 | ) | |||||
Sale of investments | 1,168 | 1,619 | ||||||
Other | 1,741 | (65 | ) | |||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS | (23,682 | ) | (41,092 | ) | ||||
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS | — | (28,470 | ) | |||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (23,682 | ) | (69,562 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Issuance of notes and bank borrowings, net of issuance costs | 15,000 | 15,000 | ||||||
Payments on debt, finance leases, and associated costs | (22,356 | ) | (18,449 | ) | ||||
Other | (3,364 | ) | (4,606 | ) | ||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS | (10,720 | ) | (8,055 | ) | ||||
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS | — | (22 | ) | |||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (10,720 | ) | (8,077 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 201 | 557 | ||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (46,047 | ) | (64,231 | ) | ||||
Less net cash provided by (used in) discontinued operations(1) | — | (32,930 | ) | |||||
(46,047 | ) | (31,301 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 118,069 | 203,402 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 72,022 | $ | 172,101 |
(1) Less net cash provided by (used in) discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748, during the three months ended March 31, 2018.
Adjusted EBITDA Reconciliation |
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(Dollars in thousands except per share amounts) | LTM 1Q 2019 | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||||||||||||||
Net income (loss) | $ | (68,847 | ) | $ | (19,201 | ) | $ | 468 | $ | (53,044 | ) | $ | 2,930 | $ | 1,241 | |||||||||
(Income) loss from discontinued operations, net of tax | (5,693 | ) | (5,693 | ) | — | — | — | (550 | ) | |||||||||||||||
Interest expense, net of capitalized interest | 24,853 | 6,454 | 6,563 | 5,818 | 6,018 | 5,965 | ||||||||||||||||||
Income tax provision (benefit) | (37,387 | ) | (8,658 | ) | (36,231 | ) | 3,785 | 3,717 | 11,949 | |||||||||||||||
Amortization | 139,572 | 41,876 | 37,053 | 31,184 | 29,459 | 30,777 | ||||||||||||||||||
EBITDA | 52,498 | 14,778 | 7,853 | (12,257 | ) | 42,124 | 49,382 | |||||||||||||||||
Fair value adjustments, net | (8,104 | ) | (9,120 | ) | (731 | ) | (715 | ) | 2,462 | (4,654 | ) | |||||||||||||
Foreign exchange (gain) loss | 9,064 | 665 | 1,986 | 3,104 | 3,309 | 670 | ||||||||||||||||||
(Gain) loss on sale of assets and securities | (312 | ) | (52 | ) | 298 | 28 | (586 | ) | 241 | |||||||||||||||
Mexico inflation adjustment | (1,939 | ) | — | — | — | (1,939 | ) | — | ||||||||||||||||
Transaction costs | 5 | — | (1,044 | ) | 1,049 | — | — | |||||||||||||||||
Interest income on notes receivables | (1,708 | ) | (180 | ) | (327 | ) | (628 | ) | (573 | ) | (248 | ) | ||||||||||||
Manquiri sale consideration write-down | 18,599 | — | — | 18,599 | — | — | ||||||||||||||||||
Silvertip start-up write-down | 42,167 | 15,447 | 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 | 11,390 | 2,943 | 2,747 | 2,883 | 2,817 | 2,669 | ||||||||||||||||||
Inventory adjustments and write-downs |
3,720 |
|
1,623 | 858 | 421 | 817 | 1,126 | |||||||||||||||||
Adjusted EBITDA | $ |
135,357 |
$ | 26,104 | $ | 36,150 | $ | 24,671 | $ | 48,431 | $ | 49,186 | ||||||||||||
Revenue | $ | 617,507 | $ | 154,870 | 143,855 | $ | 148,795 | $ | 169,987 | $ | 163,267 | |||||||||||||
Adjusted EBITDA Margin |
22 |
% | 17 | % | 25 | % | 17 | % | 28 | % | 30 | % |
Adjusted Net Income (Loss) Reconciliation |
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(Dollars in thousands except per share amounts) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||||||||||||
Net income (loss) | $ | (19,201 | ) | $ | 468 | $ | (53,044 | ) | $ | 2,930 | $ | 1,241 | ||||||||
(Income) loss from discontinued operations, net of tax | (5,693 | ) | — | — | — | (550 | ) | |||||||||||||
Fair value adjustments, net | (9,120 | ) | (731 | ) | (715 | ) | 2,462 | (4,654 | ) | |||||||||||
(Gain) loss on sale of assets and securities | (52 | ) | 326 | — | (586 | ) | 241 | |||||||||||||
Gain on repurchase of Rochester royalty | — | (28 | ) | 28 | — | — | ||||||||||||||
Mexico inflation adjustment | — | — | — | (1,939 | ) | — | ||||||||||||||
Transaction costs | — | (1,044 | ) | 1,049 | — | — | ||||||||||||||
Interest income on notes receivables | (180 | ) | (327 | ) | (628 | ) | (573 | ) | (248 | ) | ||||||||||
Manquiri sale consideration write-down | — | — | 18,599 | — | — | |||||||||||||||
Silvertip start-up write-down | 15,447 | 17,974 | 8,746 | — | — | |||||||||||||||
Rochester In-Pit crusher write-down | — |
— |
3,441 | — | — | |||||||||||||||
Receivable write-down | — | 6,536 |
— |
— |
— |
|||||||||||||||
Foreign exchange loss (gain) | 1,256 | (530 | ) | 6,062 | (1,233 | ) |
4,312 |
|||||||||||||
Tax effect of adjustments(1) | (5,415 | ) | (6,559 | ) | (3,191 | ) | — | — | ||||||||||||
Adjusted net income (loss) | $ | (22,958 | ) | $ | 16,085 | $ | (19,653 | ) | $ | 1,061 | $ | 342 | ||||||||
Adjusted net income (loss) per share - Basic | $ | (0.11 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 | ||||||||
Adjusted net income (loss) per share - Diluted | $ | (0.11 | ) | $ | 0.08 | $ | (0.11 | ) | $ | 0.01 | $ | 0.00 |
Consolidated Free Cash Flow Reconciliation |
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(Dollars in thousands) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | ||||||||||||||
Cash flow from continuing operations | $ | (11,846 | ) | $ | 72 | $ | 5,789 | $ | (1,294 | ) | $ | 15,541 | |||||||
Capital expenditures from continuing operations | 27,438 | 17,805 | 39,472 | 41,165 | 42,345 | ||||||||||||||
Free cash flow | (39,284 | ) | (17,733 | ) | (33,683 | ) | (42,459 | ) | (26,804 | ) |
Cash Flow Before Changes in Working Capital Reconciliation |
||||||||||||||||||||
(Dollars in thousands) | 1Q 2019 | 4Q 2018 | 3Q 2018 | 2Q 2018 | 1Q 2018 | |||||||||||||||
Cash flow before changes in operating assets and liabilities | $ | 21,466 | $ | 24,481 | $ | 12,933 | $ | 41,496 | $ | 33,440 | ||||||||||
Receivables | (5,735 | ) | 7,249 | (5,930 | ) | (8,888 | ) | (1,691 | ) | |||||||||||
Prepaid expenses and other | (2,684 | ) | 1,008 | 1,377 | 8,126 | (5,635 | ) | |||||||||||||
Inventories | (18,821 | ) | (24,858 | ) | (8,156 | ) | (2,766 | ) | (8,708 | ) | ||||||||||
Accounts payable and accrued liabilities | (6,072 | ) | (7,808 | ) | 5,565 | (39,262 | ) | (1,865 | ) | |||||||||||
Cash provided by (used in) continuing operating activities | (11,846 | ) | 72 | 5,789 | (1,294 | ) | 15,541 |
Reconciliation of Costs Applicable to Sales | ||||||||||||||||||||||||
for Three Months Ended March 31, 2019 | ||||||||||||||||||||||||
In thousands except per ounce or per pound amounts | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 47,772 | $ | 26,491 | $ | 43,902 | $ | 20,073 | $ | 34,811 | $ | 173,049 | ||||||||||||
Amortization | (14,528 | ) | (4,037 | ) | (11,727 | ) | (2,681 | ) | (8,426 | ) | (41,399 | ) | ||||||||||||
Costs applicable to sales | $ | 33,244 | $ | 22,454 | $ | 32,175 | $ | 17,392 | $ | 26,385 | $ | 131,650 | ||||||||||||
Inventory Adjustments | (141 | ) | (323 | ) | (1,164 | ) | (5 | ) | (15,447 | ) | (17,080 | ) | ||||||||||||
By-product credit | — | — | — | (217 | ) | — | (217 | ) | ||||||||||||||||
Adjusted costs applicable to sales | $ | 33,103 | $ | 22,131 | $ | 31,011 | $ | 17,170 | $ | 10,938 | $ | 114,353 | ||||||||||||
Metal Sales | ||||||||||||||||||||||||
Gold ounces | 27,394 | 8,511 | 31,335 | 18,086 | 85,326 | |||||||||||||||||||
Silver ounces | 1,405,409 | 1,000,453 | — | 14,052 | 215,101 | 2,635,015 | ||||||||||||||||||
Zinc pounds | 4,723,069 | 4,723,069 | ||||||||||||||||||||||
Lead pounds | 2,747,847 | 2,747,847 | ||||||||||||||||||||||
Revenue Split | ||||||||||||||||||||||||
Gold | 59 | % | 42 | % | 100 | % | 100 | % | ||||||||||||||||
Silver | 41 | % | 58 | % | 27 | % | ||||||||||||||||||
Zinc | 51 | % | ||||||||||||||||||||||
Lead | 22 | % | ||||||||||||||||||||||
Adjusted costs applicable to sales | ||||||||||||||||||||||||
Gold ($/oz) | $ | 713 | $ | 1,092 | $ | 990 | $ | 949 | ||||||||||||||||
Silver ($/oz) | $ | 9.66 | $ | 12.83 | $ | 13.73 | ||||||||||||||||||
Zinc ($/lb) | $ | 1.18 | ||||||||||||||||||||||
Lead ($/lb) | $ | 0.88 |
Reconciliation of Costs Applicable to Sales | ||||||||||||||||||||||||
for Three Months Ended December 31, 2018 | ||||||||||||||||||||||||
In thousands except per ounce or per pound amounts | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 42,119 | $ | 35,365 | $ | 30,703 | $ | 16,839 | $ | 28,246 | $ | 153,272 | ||||||||||||
Amortization | (14,992 | ) | (5,992 | ) | (9,437 | ) | (2,184 | ) | (4,161 | ) | (36,766 | ) | ||||||||||||
Costs applicable to sales | $ | 27,127 | $ | 29,373 | $ | 21,266 | $ | 14,655 | $ | 24,085 | $ | 116,506 | ||||||||||||
Inventory Adjustments | (205 | ) | (312 | ) | (220 | ) | (121 | ) | (17,974 | ) | (18,832 | ) | ||||||||||||
By-product credit | — | — | — | (166 | ) | — | (166 | ) | ||||||||||||||||
Adjusted costs applicable to sales | $ | 26,922 | $ | 29,061 | $ | 21,046 | $ | 14,368 | $ | 6,111 | $ | 97,508 | ||||||||||||
Metal Sales | ||||||||||||||||||||||||
Gold ounces | 23,667 | 15,338 | 24,979 | 15,306 | 79,290 | |||||||||||||||||||
Silver ounces | 1,534,595 | 1,389,916 | — | 10,932 | 124,144 | 3,059,587 | ||||||||||||||||||
Zinc pounds | 2,603,972 | 2,603,972 | ||||||||||||||||||||||
Lead pounds | 1,418,653 | 1,418,653 | ||||||||||||||||||||||
Revenue Split | ||||||||||||||||||||||||
Gold | 55 | % | 48 | % | 100 | % | 100 | % | ||||||||||||||||
Silver | 45 | % | 52 | % | 36 | % | ||||||||||||||||||
Zinc | 40 | % | ||||||||||||||||||||||
Lead | 24 | % | ||||||||||||||||||||||
Adjusted costs applicable to sales | ||||||||||||||||||||||||
Gold ($/oz) | $ | 624 | $ | 917 | $ | 843 | $ | 939 | ||||||||||||||||
Silver ($/oz) | $ | 7.92 | $ | 10.79 | $ | 17.68 | ||||||||||||||||||
Zinc ($/lb) | $ | 0.95 | ||||||||||||||||||||||
Lead ($/lb) | $ | 1.02 |
Reconciliation of Costs Applicable to Sales | ||||||||||||||||||||||||
for Three Months Ended September 30, 2018 | ||||||||||||||||||||||||
In thousands except per ounce or per pound amounts | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 46,349 | $ | 32,842 | $ | 35,153 | $ | 20,856 | $ | 12,609 | $ | 147,809 | ||||||||||||
Amortization | (14,795 | ) | (5,294 | ) | (6,912 | ) | (2,878 | ) | (1,073 | ) | (30,952 | ) | ||||||||||||
Costs applicable to sales | $ | 31,554 | $ | 27,548 | $ | 28,241 | $ | 17,978 | $ | 11,536 | $ | 116,857 | ||||||||||||
Inventory Adjustments | (16 | ) | (136 | ) | (265 | ) | (4 | ) | (8,746 | ) | (9,167 | ) | ||||||||||||
By-product credit | — | — | — | (177 | ) | — | (177 | ) | ||||||||||||||||
Adjusted costs applicable to sales | $ | 31,538 | $ | 27,412 | $ | 27,976 | $ | 17,797 | $ | 2,790 | $ | 107,513 | ||||||||||||
Metal Sales | ||||||||||||||||||||||||
Gold ounces | 29,831 | 14,257 | 25,648 | 19,874 | 89,610 | |||||||||||||||||||
Silver ounces | 1,572,093 | 1,248,163 | — | 12,426 | 98,831 | 2,931,513 | ||||||||||||||||||
Zinc pounds | 1,772,023 | 1,772,023 | ||||||||||||||||||||||
Lead pounds | 1,230,266 | 1,230,266 | ||||||||||||||||||||||
Revenue Split | ||||||||||||||||||||||||
Gold | 58 | % | 48 | % | 100 | % | 100 | % | ||||||||||||||||
Silver | 42 | % | 52 | % | 35 | % | ||||||||||||||||||
Zinc | 41 | % | ||||||||||||||||||||||
Lead | 24 | % | ||||||||||||||||||||||
Adjusted costs applicable to sales | ||||||||||||||||||||||||
Gold ($/oz) | $ | 615 | $ | 929 | $ | 1,091 | $ | 895 | ||||||||||||||||
Silver ($/oz) | $ | 8.39 | $ | 11.35 | $ | 9.86 | ||||||||||||||||||
Zinc ($/lb) | $ | 0.64 | ||||||||||||||||||||||
Lead ($/lb) | $ | 0.55 |
Reconciliation of Costs Applicable to Sales | ||||||||||||||||||||||||
for Three Months Ended June 30, 2018 | ||||||||||||||||||||||||
In thousands except per ounce or per pound amounts | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 44,944 | $ | 29,243 | $ | 40,668 | $ | 22,611 | $ | — | $ | 137,466 | ||||||||||||
Amortization | (14,633 | ) | (4,793 | ) | (6,441 | ) | (3,353 | ) | — | (29,220 | ) | |||||||||||||
Costs applicable to sales | $ | 30,311 | $ | 24,450 | $ | 34,227 | $ | 19,258 | $ | — | $ | 108,246 | ||||||||||||
Inventory Adjustments | (41 | ) | (144 | ) | (551 | ) | (81 | ) | — | (817 | ) | |||||||||||||
By-product credit | — | — | — | (220 | ) | — | (220 | ) | ||||||||||||||||
Adjusted costs applicable to sales | $ | 30,270 | $ | 24,306 | $ | 33,676 | $ | 18,957 | $ | — | $ | 107,209 | ||||||||||||
Metal Sales | ||||||||||||||||||||||||
Gold ounces | 31,207 | 12,031 | 28,165 | 23,053 | 94,456 | |||||||||||||||||||
Silver ounces | 2,091,788 | 1,097,272 | — | 13,744 | — | 3,202,804 | ||||||||||||||||||
Zinc pounds | — | — | ||||||||||||||||||||||
Lead pounds | — | — | ||||||||||||||||||||||
Revenue Split | ||||||||||||||||||||||||
Gold | 51 | % | 46 | % | 100 | % | 100 | % | ||||||||||||||||
Silver | 49 | % | 54 | % | — | % | ||||||||||||||||||
Zinc | — | % | ||||||||||||||||||||||
Lead | — | % | ||||||||||||||||||||||
Adjusted costs applicable to sales | ||||||||||||||||||||||||
Gold ($/oz) | $ | 497 | $ | 936 | $ | 1,196 | $ | 822 | ||||||||||||||||
Silver ($/oz) | $ | 7.05 | $ | 11.89 | $ | — | ||||||||||||||||||
Zinc ($/lb) | $ | — | ||||||||||||||||||||||
Lead ($/lb) | $ | — |
Reconciliation of Costs Applicable to Sales | ||||||||||||||||||||||||
for Three Months Ended March 31, 2018 | ||||||||||||||||||||||||
In thousands except per ounce or per pound amounts | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 47,420 | $ | 29,136 | $ | 35,347 | $ | 17,966 | $ | — | $ | 129,869 | ||||||||||||
Amortization | (16,325 | ) | (4,831 | ) | (6,717 | ) | (2,657 | ) | — | (30,530 | ) | |||||||||||||
Costs applicable to sales | $ | 31,095 | $ | 24,305 | $ | 28,630 | $ | 15,309 | $ | — | $ | 99,339 | ||||||||||||
Inventory Adjustments | 8 | (471 | ) | (591 | ) | (72 | ) | — | (1,126 | ) | ||||||||||||||
By-product credit | — | — | — | (183 | ) | — | (183 | ) | ||||||||||||||||
Adjusted costs applicable to sales | $ | 31,103 | $ | 23,834 | $ | 28,039 | $ | 15,054 | $ | — | $ | 98,030 | ||||||||||||
Metal Sales | ||||||||||||||||||||||||
Gold ounces | 30,888 | 11,163 | 27,763 | 17,339 | 87,153 | |||||||||||||||||||
Silver ounces | 2,030,703 | 1,119,227 | — | 10,983 | — | 3,160,913 | ||||||||||||||||||
Zinc pounds | — | — | ||||||||||||||||||||||
Lead pounds | — | — | ||||||||||||||||||||||
Revenue Split | ||||||||||||||||||||||||
Gold | 52 | % | 44 | % | 100 | % | 100 | % | ||||||||||||||||
Silver | 48 | % | 56 | % | — | % | ||||||||||||||||||
Zinc | — | % | ||||||||||||||||||||||
Lead | — | % | ||||||||||||||||||||||
Adjusted costs applicable to sales | ||||||||||||||||||||||||
Gold ($/oz) | $ | 519 | $ | 947 | $ | 1,010 | $ | 868 | ||||||||||||||||
Silver ($/oz) | $ | 7.43 | $ | 11.85 | $ | — | ||||||||||||||||||
Zinc ($/lb) | $ | — | ||||||||||||||||||||||
Lead ($/lb) | $ | — |
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 ($/oz) | $650 - $750 | $1,000 - $1,100 | $950 - $1,050 | $850 - $950 | — | |||||||||||||||||||
Silver ($/oz) | $9.00 - $10.00 | $12.50 - $13.50 | — | — | $14.00 - $16.00 | |||||||||||||||||||
Zinc ($/lb) | — | — | — | — | $1.00 - $1.25 | |||||||||||||||||||
Lead ($/lb) | — | — | — | — | $0.85 - $1.05 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190501005992/en/