Coeur Reports First Quarter 2023 Results

Reaffirms Full-Year 2023 Guidance

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported first quarter 2023 financial results, including revenue of $187 million and cash flow from operating activities of $(35) million. The Company reported GAAP net loss from continuing operations of $25 million, or $0.08 per share. On an adjusted basis¹, Coeur reported EBITDA of $25 million, cash flow from operating activities before changes in working capital of $6 million and net loss from continuing operations of $33 million, or $0.11 per share.

Key Highlights

• First quarter production stronger than expected and in-line with 2023 guidance – Solid performances at Palmarejo, Rochester and Wharf offset lower production levels at Kensington, leading to total production of 69,039 ounces of gold and 2.5 million ounces of silver. Production levels are expected to increase during the second half of the year due to mine plan sequencing as well as the anticipated ramp-up and commissioning of the Rochester expansion
• Rochester expansion remains on-track for mid-year construction completion – Coeur began stacking ore on the new Stage VI leach pad and achieved mechanical completion of the new Merrill-Crowe process plant ahead of schedule during the first quarter. As of March 31, 2023, the project was 82% complete and approximately $634 million of the estimated project capital had been committed, of which $560 million had been incurred
• Balance sheet well-positioned to support remaining Rochester expansion capital requirements – The Company ended the quarter with total liquidity of approximately $382 million, including $67 million of cash, $300 million of available capacity under its $390 million revolving credit facility (“RCF”)² and $15 million of marketable securities. The Company further bolstered its hedging program with approximately 158,000 ounces of gold hedged at $1,968 per ounce and roughly 3.7 million ounces of silver hedged at $25.04 per ounce in 2023
• Exploration success continues at Silvertip and Kensington – The deepest hole ever drilled at Silvertip targeting a magnetic anomaly and potential heat source was successfully completed during the quarter showing occurrences of intrusive porphyry and higher temperature mineralogy. Silvertip continues to impress with its high silver, zinc and lead grades as well as signs of other critical minerals such as indium, germanium and gallium contained in the deposit. At Kensington, drilling indicates that new mineralized zones identified in Upper Kensington continue, suggesting promising potential for further mine life increases

“Coeur’s first quarter results reflect strong overall production and cost management, which positions us well relative to our full-year guidance ranges,” said Mitchell J. Krebs, President and Chief Executive Officer. “Importantly, the major expansion taking place at our Rochester operation in Nevada remains on-track for a mid-year construction completion despite experiencing extreme winter weather during the first quarter. Even with the weather, Rochester’s operating results were ahead of plan and significantly stronger year-over-year, reflecting higher grades and throughput rates. With the second quarter representing the last quarter of elevated capital to complete the Rochester expansion and a balance sheet well-positioned to support this remaining investment, we look forward to an expected major inflection point during the second half of 2023 as production from Rochester begins to ramp up.

“As Coeur celebrates its 95th birthday throughout 2023, the Company is well-positioned for an exciting and successful next chapter. Coupled with robust exploration and prudent capital investments aimed at extending mine lives across the rest of the portfolio, we believe Coeur offers a unique value proposition in our sector: an American silver and gold producer operating exclusively in North America with significant opportunities for growth over the near and long term.”

Financial and Operating Highlights (Unaudited)

(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics)		1Q 2023			4Q 2022			3Q 2022			2Q 2022			1Q 2022
Gold Sales	$	127.1		$	157.6		$	139.2		$	146.6		$	129.5
Silver Sales	$	60.2		$	52.5		$	43.8		$	57.5		$	59.0
Consolidated Revenue	$	187.3		$	210.1		$	183.0		$	204.1		$	188.4
Costs Applicable to Sales3	$	153.1		$	159.3		$	163.2		$	150.7		$	133.3
General and Administrative Expenses	$	12.1		$	10.2		$	9.7		$	9.3		$	10.3
Net Income (Loss)	$	(24.6	)	$	49.0		$	(57.4	)	$	(77.4	)	$	7.7
Net Income (Loss) Per Share	$	(0.08	)	$	0.17		$	(0.21	)	$	(0.28	)	$	0.03
Adjusted Net Income (Loss)1	$	(33.1	)	$	(17.5	)	$	(44.7	)	$	(13.1	)	$	(13.8	)
Adjusted Net Income (Loss)1 Per Share	$	(0.11	)	$	(0.06	)	$	(0.16	)	$	(0.05	)	$	(0.05	)
Weighted Average Shares Outstanding		301.0			284.5			278.1			278.0			263.6
EBITDA1	$	16.2		$	84.9		$	(20.5	)	$	(32.8	)	$	40.4
Adjusted EBITDA1	$	25.1		$	35.9		$	18.3		$	43.3		$	41.5
Cash Flow from Operating Activities	$	(35.0	)	$	28.5		$	(19.1	)	$	22.6		$	(6.4	)
Capital Expenditures	$	74.0		$	113.1		$	96.6		$	73.2		$	69.5
Free Cash Flow1	$	(109.0	)	$	(84.5	)	$	(115.7	)	$	(50.6	)	$	(75.9	)
Cash, Equivalents & Short-Term Investments	$	67.0		$	61.5		$	75.4		$	74.2		$	73.3
Total Debt4	$	494.1		$	515.9		$	635.7		$	547.5		$	485.5
Average Realized Price Per Ounce – Gold	$	1,794		$	1,787		$	1,702		$	1,729		$	1,721
Average Realized Price Per Ounce – Silver	$	23.25		$	21.14		$	19.09		$	22.61		$	24.06
Gold Ounces Produced		69,039			87,727			83,438			83,772			75,409
Silver Ounces Produced		2.5			2.4			2.4			2.5			2.5
Gold Ounces Sold		70,866			88,189			81,782			84,786			75,211
Silver Ounces Sold		2.6			2.5			2.3			2.5			2.5
Adjusted CAS per AuOz1	$	1,381		$	1,270		$	1,318		$	1,207		$	1,169
Adjusted CAS per AgOz1	$	15.83		$	15.57		$	14.52		$	15.09		$	14.95

Financial Results

First quarter 2023 revenue totaled $187 million compared to $210 million in the prior period and $188 million in the first quarter of 2022. The Company produced 69,039 and 2.5 million ounces of gold and silver, respectively, during the quarter. Metal sales for the quarter totaled 70,866 ounces of gold and 2.6 million ounces of silver. Average realized gold and silver prices for the quarter were $1,794 and $23.25 per ounce, respectively, compared to $1,787 and $21.14 per ounce in the prior period and $1,721 and $24.06 per ounce in the first quarter of 2022.

Gold and silver sales represented 68% and 32% of quarterly revenue, respectively, compared to 75% and 25% in the prior period. The Company’s U.S. operations accounted for approximately 56% of first quarter revenue compared to 67% in the fourth quarter of 2022.

Costs applicable to sales³ decreased 4% quarter-over-quarter to $153 million, largely due to lower production in the period. General and administrative expenses increased slightly quarter-over-quarter to $12 million.

Coeur invested approximately $7 million ($5 million expensed and $2 million capitalized) in exploration during the quarter, compared to roughly $9 million ($8 million expensed and $2 million capitalized) in the prior period. See the “Operations” and “Exploration” sections for additional detail on the Company’s exploration activities.

The Company recorded income tax expense of approximately $11 million during the first quarter. Cash income and mining taxes paid during the period totaled approximately $17 million, including $9 million for payment of the annual Mexican mining royalty tax. As of December 31, 2022, Companywide U.S. net operating loss carryforwards totaled approximately $535 million.

Quarterly operating cash flow totaled $(35) million compared to $29 million in the prior period, mainly driven by lower metal sales and unfavorable changes in working capital. Changes in working capital during the quarter were $(41) million, compared to $9 million in the prior period, reflecting the timing of tax payments in Mexico and semi-annual interest payments on the Company’s 2029 5.125% Senior Notes.

Capital expenditures decreased 35% quarter-over-quarter to $74 million as a result of timing of payments on Rochester expansion capital. Expenditures related to the expansion project at Rochester totaled $47 million during the first quarter compared to $89 million in the fourth quarter of 2022. Sustaining and development capital expenditures accounted for approximately 33% and 67%, respectively, of Coeur’s total capital investment during the quarter.

Capital Project Update

Rochester Expansion

As of March 31, 2023, the Company had committed approximately $634 million of capital since inception of the project and approximately $560 million of the estimated project cost had been incurred. At the end of the first quarter, the project was 82% complete.

The Company estimates the total capital cost for the project will likely be around the high end of the $650 – $670 million guidance range, which primarily reflects the impacts of extreme winter weather on construction productivity during the first quarter. Mechanical completion remains on target for mid-2023 with ramp-up and commissioning expected to take place during the second half of the year. The Company expects capital expenditures related to the Rochester expansion to be approximately $197 – $207 million during 2023, with roughly 70% incurred during the first half of the year. Key elements of the project timeline in 2023 are highlighted below:

		Target Completion Date
Placing Ore on Stage VI Leach Pad		1Q ✓
Merrill-Crowe Mechanical Completion		2Q ✓ (Completed in 1Q)
Crushing Circuit Inauguration		3Q
Commission and Ramp-Up Completion		Year-End

Coeur achieved several key milestones at the Rochester expansion during the quarter. Notably, the Company began placing ore on the new Stage VI leach pad on February 1 and achieved mechanical completion of the Merrill-Crowe process plant on March 31, ahead of its second quarter target completion date. Coeur also energized the 63-kilovolt power system and achieved mechanical completion of the crusher corridor electrical substation.

In addition to achieving mechanical completion ahead of schedule, progress on the Merrill-Crowe plant included (i) completion of the leach recirculation system which will deliver solution to the Stage VI leach pad, (ii) advancement of pre-commissioning of power and process systems, and (iii) completion of control systems programming and acceptance testing.

Coeur also continued to make solid progress on the crusher corridor with the start of steel erection and equipment setting for the pre-screen and further advancement of concrete work in the primary crusher area. Other work on the crusher corridor included (i) stacker steel and conveyor erection at the primary, secondary and tertiary stockpiles, (ii) topping out of the steel erection at both the secondary and tertiary crushers, (iii) continuation of piping and electrical installation across the crusher corridor, and (iv) completion of control systems programming with acceptance testing now well advanced.

Balance Sheet and Liquidity Update

Coeur ended the quarter with total liquidity of approximately $382 million, including $67 million of cash, $300 million of available capacity under its $390 million RCF² subject to certain financial covenants, and $15 million of marketable securities.

Hedging Update

During the first quarter, the Company added to its hedge position by executing additional gold and silver hedges of its expected 2023 gold production. In the second quarter, Coeur executed additional hedges on 1.3 million ounces of its expected 2023 silver production. The Company’s hedging strategy continues to focus on mitigating risk during this period of capital intensity. An overview of the hedges in place is outlined below.

	2Q 2023	3Q 2023	4Q 2023	Total 2023
Gold Ounces Hedged	46,500	55,749	55,749	157,998
Avg. Forward Price ($/oz)	$1,948	$1,977	$1,977	$1,968
Silver Ounces Hedged	1,245,000	1,245,000	1,245,000	3,735,000
Avg. Forward Price ($/oz)	$24.30	$25.34	$25.47	$25.04

Rochester LCM Adjustment

Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method. Decreases in the market price of gold and silver can affect the value of metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as impact carrying value of long-lived assets. At the end of the first quarter, the cost of ore on leach pads at Rochester exceeded its net realizable value which resulted in a lower of cost or market (“LCM”) adjustment of $14 million (approximately $13 million in costs applicable to sales² and $1 million of amortization).

Operations

First quarter 2023 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)		1Q 2023			4Q 2022			3Q 2022			2Q 2022			1Q 2022
Tons milled		533,606			554,247			538,750			539,600			565,211
Average gold grade (oz/t)		0.052			0.051			0.049			0.054			0.056
Average silver grade (oz/t)		4.02			3.16			3.53			3.95			3.87
Average recovery rate – Au		90.1	%		92.4	%		93.3	%		92.4	%		90.6	%
Average recovery rate – Ag		81.7	%		85.0	%		84.9	%		84.2	%		83.0	%
Gold ounces produced		25,118			25,935			24,807			27,109			28,931
Silver ounces produced (000’s)		1,752			1,489			1,612			1,795			1,813
Gold ounces sold		25,970			25,252			24,378			29,285			28,242
Silver ounces sold (000’s)		1,795			1,490			1,554			1,855			1,796
Average realized price per gold ounce	$	1,564		$	1,509		$	1,447		$	1,507		$	1,419
Average realized price per silver ounce	$	23.23		$	21.10		$	19.01		$	22.56		$	23.94
Metal sales	$	82.3		$	69.5		$	64.8		$	86.0		$	83.1
Costs applicable to sales3	$	49.3		$	47.1		$	43.2		$	49.1		$	43.2
Adjusted CASper AuOz1	$	926		$	1,027		$	948		$	855		$	730
Adjusted CASper AgOz1	$	13.94		$	14.23		$	12.67		$	12.97		$	12.43
Exploration expense	$	1.3		$	1.5		$	1.8		$	1.7		$	1.6
Cash flow from operating activities	$	11.5		$	18.9		$	12.9		$	22.3		$	34.3
Sustaining capital expenditures (excludes capital lease payments)	$	8.6		$	8.1		$	10.8		$	10.1		$	13.6
Development capital expenditures	$	1.6		$	—		$	—		$	—		$	—
Total capital expenditures	$	10.2		$	8.1		$	10.8		$	10.1		$	13.6
Free cash flow1	$	1.3		$	10.8		$	2.1		$	12.2		$	20.7

Operational

• First quarter gold and silver production totaled 25,118 and 1.8 million ounces, respectively, compared to 25,935 and 1.5 million ounces in the prior period and 28,931 and 1.8 million ounces in the first quarter of 2022

• Production during the quarter benefited from increased average grades, offset by lower average recoveries as well as decreased mill throughput

Financial

• First quarter adjusted CAS¹ for gold and silver on a co-product basis decreased 10% and 2% to $926 and $13.94 per ounce, respectively, driven by higher metal sales

• Capital expenditures increased 26% quarter-over-quarter to $10 million, reflecting higher expenditures related to the open pit tailings backfill project as well as mining equipment purchases

• Free cash flow¹ in the first quarter totaled $1 million compared to $11 million in the prior period as a result of increased capital expenditures as well as the payment of cash income and mining taxes totaling approximately $16 million

Exploration

• Exploration investment for the first quarter decreased to approximately $1 million (substantially all expensed), compared to roughly $2 million (substantially all expensed) in the prior period

• Exploration in the first quarter focused on mapping and sampling to expand the pipeline of targets for follow-up drilling in coming years. The focus of this program is to the east of the current operation and outside the gold stream area of interest

• One drill rig was active during the quarter focused on expansion drilling on the northwest extension of the Hidalgo zone (located at the northwest end of the Independencia deposit). In this portion of the system, three mineralized vein arrays have been identified — Hidalgo, Libertad and San Juan

• Coeur expects one drill rig to be active at Palmarejo in the second quarter focused on expansion drilling at the Hidalgo zone. Significant focus will continue to be on detailed, follow-up mapping programs

Other

• Approximately 33% of Palmarejo’s gold sales in the first quarter were sold under its gold stream agreement at a price of $800 per ounce. The Company anticipates approximately 30% – 40% of Palmarejo’s gold sales for 2023 will be sold under the gold stream agreement

Guidance

• Full-year 2023 production is expected to be 100,000 – 112,500 ounces of gold and 6.5 – 7.5 million ounces of silver

• CAS¹ in 2023 are expected to be $900 – $1,050 per gold ounce and $14.25 – $15.25 per silver ounce

• Capital expenditures are expected to be $35 – $47 million, consisting primarily of underground development as well as development of the high compression thickener and other elements of the open pit backfill project

Rochester, Nevada

(Dollars in millions, except per ounce amounts)		1Q 2023			4Q 2022			3Q 2022			2Q 2022			1Q 2022
Ore tons placed		2,456,586			2,754,118			3,551,353			4,236,459			4,377,873
Average silver grade (oz/t)		0.45			0.68			0.37			0.35			0.34
Average gold grade (oz/t)		0.003			0.003			0.004			0.003			0.003
Silver ounces produced (000’s)		761			973			745			689			655
Gold ounces produced		8,155			11,589			8,761			8,319			6,066
Silver ounces sold (000’s)		770			975			733			683			638
Gold ounces sold		8,349			11,646			8,725			8,071			5,928
Average realized price per silver ounce	$	23.19		$	21.10		$	19.10		$	22.42		$	24.00
Average realized price per gold ounce	$	1,922		$	1,893		$	1,852		$	1,883		$	1,864
Metal sales	$	33.9		$	42.6		$	30.2		$	30.5		$	26.4
Costs applicable to sales3	$	42.9		$	44.1		$	50.8		$	38.0		$	32.3
Adjusted CASper AgOz1	$	20.24		$	17.60		$	18.46		$	20.85		$	22.06
Adjusted CASper AuOz1	$	1,655		$	1,596		$	1,821		$	1,763		$	1,720
Exploration expense	$	0.4		$	0.6		$	0.6		$	1.5		$	1.9
Cash flow from operating activities	$	(13.5	)	$	(5.5	)	$	(13.7	)	$	(9.1	)	$	(19.7	)
Sustaining capital expenditures (excludes capital lease payments)	$	4.3		$	3.0		$	5.1		$	4.5		$	2.3
Development capital expenditures	$	47.7		$	89.3		$	68.9		$	42.5		$	30.8
Total capital expenditures	$	52.0		$	92.3		$	74.0		$	47.0		$	33.1
Free cash flow1	$	(65.5	)	$	(97.8	)	$	(87.7	)	$	(56.1	)	$	(52.8	)

Operational

• Silver and gold production in the first quarter totaled 761,346 and 8,155 ounces, respectively, compared to 973,000 and 11,589 ounces in the prior period and 655,176 and 6,066 ounces in the first quarter of 2022

• Higher production year-over-year is a result of improved performance from the current crushing system due to the additions of pre-screens and other operational improvements at the crusher and leach pad as well as improved average silver grades

• Tons placed decreased 11% quarter-over-quarter to roughly 2.5 million, roughly 43% of which were placed on the new Stage VI leach pad. The decrease in tons placed quarter-over-quarter was largely due to unfavorable weather conditions.

Financial

• First quarter adjusted CAS¹ figures in the table above and highlighted below exclude the impact of an LCM adjustment totaling approximately $13 million related to the net realizable value of metal and leach pad inventory due to higher operating costs exceeding the lower market value of ounces under leach at Rochester

• First quarter adjusted CAS¹ for silver and gold on a co-product basis totaled $20.24 and $1,655 per ounce, respectively, due to timing of maintenance on haul trucks, partially offset by decreased diesel prices

• Capital expenditures decreased 44% quarter-over-quarter to $52 million, reflecting timing of spending related to the Rochester expansion project

• Free cash flow¹ in the first quarter totaled $(66) million compared to $(98) million in the prior period

Exploration

• Quarterly exploration investment decreased 36% quarter-over-quarter to approximately $1 million ($0.4 million expensed and $0.3 million capitalized)

• During the first quarter, Coeur focused on data organization and geologic logging, interpretation and modeling ahead of the mid-year resource calculations. This work will continue through next quarter with drilling planned for the second half of the year at the Rochester pit

• Additionally, work commenced on regional target assessment and ranking. The program will continue for the remainder of the year and systematically thereafter as geological knowledge and understanding of the district increases

Guidance

• Full-year 2023 production is expected to be 3.5 – 4.5 million ounces of silver and 35,000 – 50,000 ounces of gold. Production in 2023 is expected to be second half weighted with the construction completion of POA 11 occurring mid-year

• With the completion of the POA 11 expansion construction expected in mid-2023, the Company elected to defer providing cost guidance at Rochester until mid-year

• Capital expenditures are expected to be $228 – $252 million primarily due to investment in the Rochester expansion project, approximately 70% of which is weighted towards the first half of 2023

Kensington, Alaska

(Dollars in millions, except per ounce amounts)		1Q 2023			4Q 2022			3Q 2022			2Q 2022			1Q 2022
Tons milled		153,337			183,410			175,246			175,722			165,968
Average gold grade (oz/t)		0.15			0.18			0.18			0.17			0.14
Average recovery rate		91.2	%		92.4	%		91.1	%		91.6	%		95.3	%
Gold ounces produced		20,296			30,335			28,214			27,866			22,646
Gold ounces sold		20,902			30,863			27,609			27,666			22,834
Average realized price per gold ounce, gross	$	1,983		$	1,942		$	1,808		$	1,842		$	1,967
Treatment and refining charges per gold ounce	$	63		$	38		$	33		$	34		$	37
Average realized price per gold ounce, net	$	1,920		$	1,904		$	1,775		$	1,808		$	1,930
Metal sales	$	40.2		$	58.8		$	49.1		$	50.3		$	44.3
Costs applicable to sales3	$	37.4		$	39.2		$	40.3		$	39.3		$	36.9
Adjusted CAS per AuOz1	$	1,775		$	1,265		$	1,455		$	1,399		$	1,610
Prepayment, working capital cash flow	$	(9.9	)	$	9.6		$	(9.6	)	$	(0.1	)	$	10.1
Exploration expense	$	1.0		$	2.2		$	2.8		$	1.2		$	0.4
Cash flow from operating activities	$	(4.8	)	$	20.8		$	(0.2	)	$	10.7		$	10.9
Sustaining capital expenditures (excludes capital lease payments)	$	10.7		$	7.7		$	7.1		$	8.8		$	7.9
Development capital expenditures	$	—		$	—		$	—		$	—		$	—
Total capital expenditures	$	10.7		$	7.7		$	7.1		$	8.8		$	7.9
Free cash flow1	$	(15.5	)	$	13.1		$	(7.3	)	$	1.9		$	3.0

Operational

• Gold production in the first quarter totaled 20,296 ounces compared to 30,335 ounces in the prior period and 22,646 ounces in the first quarter of 2022

• Lower production during the first quarter was driven by decreased mill throughput due to challenges with mine sequencing and stope extraction timing as well as lower average gold grades and recoveries. A current focus on improving mine sequencing and stope timing is expected to allow for potentially improved average gold grade to be delivered to the mill in the second half of the year

Financial

• First quarter adjusted CAS¹ totaled $1,775 per ounce compared to $1,265 per ounce in the prior period, reflecting decreased metal sales

• Capital expenditures increased 39% quarter-over-quarter to $11 million due to increased capital development to support the ongoing multi-year exploration program aimed at extending mine life

• Free cash flow¹ in the first quarter totaled $(16) million compared to $13 million in the prior period

Exploration

• Exploration investment in the quarter totaled approximately $3 million ($1 million expensed and $2 million capitalized), compared to $3 million ($2 million expensed and $1

Contacts

For Additional Information
Coeur Mining, Inc.

200 S. Wacker Drive, Suite 2100

Chicago, IL 60606

Attention: Jeff Wilhoit, Director, Investor Relations

Phone: (312) 489-5800

www.coeur.com

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