Coeur Reports First Quarter 2024 Results

Reaffirms Full-Year 2024 Guidance; Achieves Commercial Production at Rochester

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported first quarter 2024 financial results, including revenue of $213 million and cash flow from operating activities of $(16) million. The Company reported GAAP net loss from continuing operations of $29 million, or $0.08 per share. On an adjusted basis¹, Coeur reported EBITDA of $44 million, cash flow from operating activities before changes in working capital of $(31) million and net loss from continuing operations of $19 million, or $0.05 per share.

Key Highlights

Strong year-over-year production increases in-line with 2024 guidance – Solid performances at Palmarejo and Wharf led to total production of 80,744 ounces of gold and 2.6 million ounces of silver compared to 69,039 ounces of gold and 2.5 million ounces of silver in the first quarter of 2023. Production levels are expected to increase over the balance of 2024, driven primarily by the ramp-up at Rochester
Increased revenue and adjusted EBITDA driven by increased production and lower costs – Revenue increased 14% year-over-year while adjusted EBITDA increased 76% compared to the first quarter of 2023, raising adjusted LTM EBITDA by 32% to $162 million through the end of the period compared to a year ago. The Company also saw a 5% reduction year-over-year in cost applicable to sales, totaling $146 million for the first quarter
Commercial production achieved at Rochester; ramp-up on-track – Commissioning of Rochester’s new three-stage crushing circuit and truck load-out facility was completed on March 7, 2024. The crushing circuit has routinely exceeded 70,000 tons per day since commissioning was completed. Commercial production was achieved as of March 31, 2024 and the ramp-up to sustained nameplate capacity of 88,000 tons per day remains on schedule for the end of the second quarter
Kensington’s multi-year program on target to increase mine life by year-end – The Company continued its multi-year underground mine development and exploration program, investing approximately $14 million during the quarter. Coeur has now completed roughly 71% of total underground mine development and drilling since inception of the program in 2022. The program is expected to extend Kensington’s reserve-based mine life beyond five years by the end of 2024
Published 2023 ESG Report – On April 23, 2024, Coeur published its 2023 ESG Report which highlighted the critical role in the modern economy of the metals the Company produces and progress on ESG priorities, such as ongoing adoption of the Global Industry Standard on Tailings Management and the roll-out of Coeur’s Biodiversity Management Standard, as well as advances in climate resilience including the expectation to achieve a 35% reduction in net intensity of greenhouse gas emissions by year-end

“Coeur began 2024 with solid first quarter production in a catalyst-rich year for the Company,” said Mitchell J. Krebs, President and Chief Executive Officer. “This strong start, highlighted by the achievement of commercial production at Rochester at the end of the first quarter, puts us in a great position to achieve full-year 2024 guidance and begin generating positive free cash flow in the second half of the year. Palmarejo achieved its highest quarterly production levels in several years thanks to strong contributions from both Guadalupe and Independencia underground operations while Wharf delivered a stronger than planned quarter after achieving record performance in 2023.

“The team at Rochester completed the pre-commissioning and commissioning of the new crushing circuit in the first quarter as planned. The next milestone will be to complete ramp-up to sustained nameplate capacity of 88,000 tons per day by the end of the second quarter. The combination of lower capex and significantly higher production, coupled with higher commodity prices, are expected to lead to strong cash flow generation in the second half of 2024 which will be allocated to debt reduction and funding near-mine exploration priorities. I am pleased with the progress of Kensington’s multi-year underground development and exploration program, which is expected to wrap up mid-year next year, and we look forward to achieving our goal of extending its mine life beyond five years by year-end.”

Financial and Operating Highlights (Unaudited)

*(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics)*	1Q 2024			4Q 2023			3Q 2023			2Q 2023			1Q 2023
Gold Sales	$	151.8		$	187.7		$	139.5		$	121.4		$	127.1
Silver Sales	$	61.3		$	74.3		$	55.1		$	55.9		$	60.2
Consolidated Revenue	$	213.1		$	262.1		$	194.6		$	177.2		$	187.3
Costs Applicable to Sales²	$	146.0		$	192.3		$	147.9		$	139.6		$	153.1
General and Administrative Expenses	$	14.4		$	10.2		$	9.5		$	9.8		$	12.1
Net Income (Loss)	$	(29.1	)	$	(25.5	)	$	(21.1	)	$	(32.4	)	$	(24.6	)
Net Income (Loss) Per Share	$	(0.08	)	$	(0.07	)	$	(0.06	)	$	(0.10	)	$	(0.08	)
Adjusted Net Income (Loss)¹	$	(19.0	)	$	(6.2	)	$	(18.6	)	$	(20.2	)	$	(33.1	)
Adjusted Net Income (Loss)¹Per Share	$	(0.05	)	$	(0.02	)	$	(0.05	)	$	(0.06	)	$	(0.11	)
Weighted Average Shares Outstanding		385.0			380.5			356.7			333.1			301.0
EBITDA¹	$	27.2		$	25.0		$	15.3		$	4.0		$	16.2
Adjusted EBITDA¹	$	44.3		$	64.3		$	30.6		$	22.2		$	25.1
Cash Flow from Operating Activities	$	(15.9	)	$	65.3		$	(2.4	)	$	39.4		$	(35.0	)
Capital Expenditures	$	42.1		$	92.7		$	112.3		$	85.6		$	74.0
Free Cash Flow¹	$	(58.0	)	$	(27.4	)	$	(114.7	)	$	(46.2	)	$	(109.0	)
Cash, Equivalents & Short-Term Investments	$	67.5		$	61.6		$	53.2		$	56.8		$	67.0
Total Debt³	$	585.6		$	545.3		$	512.2		$	469.4		$	494.1
Average Realized Price Per Ounce – Gold	$	1,864		$	1,886		$	1,788		$	1,809		$	1,794
Average Realized Price Per Ounce – Silver	$	23.57		$	24.79		$	24.88		$	23.91		$	23.25
Gold Ounces Produced		80,744			101,609			78,617			68,406			69,039
Silver Ounces Produced		2.6		$	3.1			2.3			2.4			2.5
Gold Ounces Sold		81,416			99,540			78,015			67,090			70,866
Silver Ounces Sold		2.6		$	3.0			2.2			2.3			2.6
Adjusted CAS per AuOz¹	$	1,267		$	1,225		$	1,273		$	1,464		$	1,381
Adjusted CAS per AgOz¹	$	14.63		$	17.03		$	17.85		$	16.77		$	15.83

Financial Results

First quarter 2024 revenue totaled $213 million compared to $262 million in the prior period and $187 million in the first quarter of 2023. The Company produced 80,744 and 2.6 million ounces of gold and silver, respectively, during the quarter. Metal sales for the quarter totaled 81,416 ounces of gold and 2.6 million ounces of silver. Average realized gold and silver prices for the quarter were $1,864 and $23.57 per ounce, respectively, compared to $1,886 and $24.79 per ounce in the prior period and $1,794 and $23.25 per ounce in the first quarter of 2023.

Gold and silver sales represented 71% and 29% of quarterly revenue, respectively, compared to 72% and 28% in the prior period. The Company’s U.S. operations accounted for approximately 55% of first quarter revenue compared to 65% in the fourth quarter of 2023.

Costs applicable to sales² decreased 24% quarter-over-quarter to $146 million, largely due to lower production in the period. General and administrative expenses increased 41% quarter-over-quarter to $14 million largely driven by annual incentive payouts.

Coeur invested approximately $14 million ($11 million expensed and $3 million capitalized) in exploration during the quarter, consistent with roughly $14 million ($11 million expensed and $3 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 $16 million during the first quarter. Cash income and mining taxes paid during the period totaled approximately $20 million, including $9 million for payment of the annual Mexican mining royalty tax.

Quarterly operating cash flow totaled $(16) million compared to $65 million in the prior period, mainly driven by lower metal sales. Changes in working capital during the quarter were $15 million, compared to $20 million in the prior period, reflecting the timing of prepayments, tax payments in Mexico and semi-annual interest payments on the Company’s 2029 5.125% Senior Notes.

First quarter capital expenditures were $42 million compared to $93 million in the prior period, reflecting the final major investment quarter for the completed Rochester expansion. Sustaining and development capital expenditures accounted for approximately $34 million and $8 million, or 81% and 19%, respectively, of Coeur’s total capital investment during the quarter.

Balance Sheet and Liquidity Update

Coeur completed an amendment to its revolving credit facility (“RCF”) during the first quarter which included expanding total borrowing capacity to $400 million and extending the term so that it now matures in the first quarter of 2027. The Company ended the quarter with total liquidity of approximately $213 million, including $67 million of cash and $145 million of available capacity under its $400 million RCF⁴.

LTM adjusted EBITDA totaled $162 million at the end of the first quarter compared to $142 million at the end of the fourth quarter of 2023 and $123 million at the end of the first quarter of 2023. Total debt increased to $586 million at the end of the first quarter compared to $545 million at the end of the fourth quarter of 2023 and $494 million at the end of the first quarter of 2023 primarily due to final Rochester expansion-related payments, leading to a total debt to adjusted EBITDA leverage ratio of 3.6x at the end of the period compared to 4.0x at the end of the first quarter of 2023.

During the first quarter, Coeur satisfied $55 million associated with prepay agreements at Kensington, Rochester and Wharf. Additionally, the Company exercised options under amended agreements to receive an additional $25 million prepayment at Kensington, an approximately $18 million prepayment for deliveries of gold and silver doré from Rochester, and a roughly $13 million prepayment for deliveries of gold concentrate from Wharf. Coeur also completed a $25 million flow through financing program during the quarter to substantially fund Silvertip’s 2024 exploration program.

Hedging Update

The Company did not execute any additional hedges during the first quarter. An overview of remaining hedges in place is outlined below.

		2Q 2024
Gold Ounces Hedged		49,950
Avg. Forward Price ($/oz)		$2,100
Silver Ounces Hedged		1,800,000
Avg. Forward Price ($/oz)		$26.00

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 $4 million (approximately $3 million in costs applicable to sales² and $1 million of amortization).

Additionally, the Company completed a review of the estimated recoverable ounces of gold and silver on its leach pads and determined that as a result of longer expected leach time and favorable recoveries relative to previous estimates that the estimated recoverable gold and silver on the Rochester legacy (Stages II, III and IV) leach pads supported an upward revision.

Operations

First quarter 2024 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

*(Dollars in millions, except per ounce amounts)*	1Q 2024			4Q 2023			3Q 2023			2Q 2023			1Q 2023
Tons milled		500,747			500,509			501,722			472,622			533,606
Average gold grade (oz/t)		0.070			0.060			0.055			0.056			0.052
Average silver grade (oz/t)		4.34			4.08			3.67			4.10			4.02
Average recovery rate – Au		95.2	%		89.4	%		97.6	%		87.4	%		90.1	%
Average recovery rate – Ag		83.7	%		79.4	%		86.9	%		83.5	%		81.7	%
Gold ounces produced		33,160			25,401			26,870			23,216			25,118
Silver ounces produced (000’s)		1,818			1,622			1,601			1,617			1,752
Gold ounces sold		33,462			24,848			26,018			22,207			25,970
Silver ounces sold (000’s)		1,796			1,644			1,534			1,561			1,795
Average realized price per gold ounce	$	1,611		$	1,615		$	1,499		$	1,589		$	1,564
Average realized price per silver ounce	$	23.64		$	24.78		$	24.96		$	23.98		$	23.23
Metal sales	$	96.4		$	80.9		$	77.3		$	72.7		$	82.3
Costs applicable to sales²	$	54.3		$	50.3		$	48.1		$	46.6		$	49.3
Adjusted CASper AuOz¹	$	901		$	1,010		$	917		$	1,023		$	926
Adjusted CASper AgOz¹	$	13.18		$	15.26		$	15.56		$	15.16		$	13.94
Exploration expense	$	2.5		$	2.7		$	2.2		$	1.6		$	1.3
Cash flow from operating activities	$	25.6		$	24.1		$	22.6		$	18.6		$	11.5
Sustaining capital expenditures (excludes capital lease payments)	$	4.7		$	6.9		$	8.4		$	10.7		$	8.6
Development capital expenditures	$	2.1		$	2.0		$	2.4		$	1.2		$	1.6
Total capital expenditures	$	6.8		$	8.9		$	10.8		$	11.9		$	10.2
Free cash flow¹	$	18.8		$	15.2		$	11.8		$	6.7		$	1.3

Operational

First quarter gold and silver production totaled 33,160 and 1.8 million ounces, respectively, compared to 25,401 and 1.6 million ounces in the prior period and 25,118 and 1.8 million ounces in the first quarter of 2023
Production during the quarter benefited from higher average grades as well as increased average gold and silver recoveries

Financial

Adjusted CAS¹ for gold and silver on a co-product basis decreased 11% and 14% quarter-over-quarter to $901 and $13.18 per ounce, respectively, driven by higher metal sales
Capital expenditures decreased 24% quarter-over-quarter to $7 million, reflecting lower underground mine development
Free cash flow¹ in the first quarter totaled $19 million compared to $15 million in the prior period

Exploration

Exploration investment for the first quarter decreased by 7% to approximately $3 million (substantially all expensed)
Up to three rigs were active during the quarter mainly focused on the Zapata – Guadalupe corridor and on the Barranca Blanca target
At the Zapata – Guadalupe target, drilling confirmed the presence of anticipated mineralized structures and revealed a newly discovered vein with promising indications of additional mineralization. This area is evolving into a significant prospect and serves as a potential area for future resource expansion
Exploration efforts continue immediately east of the current operation and outside the gold stream area. Within this zone, numerous new veins have been observed, particularly to the southeast of existing operations, which are believed to run parallel to the primary vein systems currently being mined nearby. For example, initial scout drilling at Barranca Blanca has successfully established the existence of a mineralizing system strongly warranting further investigation
Additionally, geological mapping in the Guazapares area to the east of Palmarejo has pinpointed multiple new veins displaying surface alteration, shearing, and mineralization, signaling promising prospects for future exploration

Other

Approximately 35% of Palmarejo’s gold sales in the first quarter were sold under its gold stream agreement at a price of $800 per ounce, totaling 11,690 ounces. The Company anticipates approximately 30% – 40% of Palmarejo’s gold sales for 2024 will be sold under the gold stream agreement

Guidance

Full-year 2024 production is expected to be 95,000 – 103,000 ounces of gold and 5.9 – 6.7 million ounces of silver
CAS¹ in 2024 are expected to be $1,075 – $1,275 per gold ounce and $16.50 – $17.50 per silver ounce
Capital expenditures are expected to be $32 – $42 million, consisting primarily of sustaining capital and underground development

Rochester, Nevada

*(Dollars in millions, except per ounce amounts)*	1Q 2024			4Q 2023			3Q 2023			2Q 2023			1Q 2023
Ore tons placed		3,135,571			2,754,058			3,487,173			2,690,840			2,456,586
Average silver grade (oz/t)		0.52			0.44			0.50			0.42			0.45
Average gold grade (oz/t)		0.002			0.003			0.003			0.003			0.003
Silver ounces produced (000’s)		699			1,340			608			683			761
Gold ounces produced		5,755			19,847			4,459			6,314			8,155
Silver ounces sold (000’s)		735			1,269			606			695			770
Gold ounces sold		6,185			19,175			4,432			6,493			8,349
Average realized price per silver ounce	$	23.32		$	24.59		$	24.63		$	23.70		$	23.19
Average realized price per gold ounce	$	2,050		$	1,991		$	1,967		$	1,946		$	1,922
Metal sales	$	29.8		$	69.4		$	23.6		$	29.1		$	33.9
Costs applicable to sales²	$	27.0		$	71.8		$	30.5		$	26.1		$	42.9
Adjusted CASper AgOz¹	$	18.17		$	19.33		$	23.64		$	20.39		$	20.24
Adjusted CASper AuOz¹	$	1,630		$	1,564		$	1,899		$	1,646		$	1,655
Prepayment, working capital cash flow	$	—		$	—		$	7.5		$	10.0		$	—
Exploration expense	$	0.4		$	0.2		$	0.3		$	0.3		$	0.4
Cash flow from operating activities	$	(18.7	)	$	11.6		$	(17.3	)	$	(3.8	)	$	(13.5	)
Sustaining capital expenditures (excludes capital lease payments)	$	15.4		$	13.8		$	7.7		$	5.1		$	4.3
Development capital expenditures	$	5.8		$	51.7		$	76.7		$	56.4		$	47.7
Total capital expenditures	$	21.2		$	65.5		$	84.4		$	61.5		$	52.0
Free cash flow¹	$	(39.9	)	$	(53.9	)	$	(101.7	)	$	(65.3	)	$	(65.5	)

Operational

Silver and gold production in the first quarter totaled 699,190 and 5,755 ounces, respectively, compared to 1.3 million and 19,847 ounces in the prior period and 761,346 and 8,155 ounces in the first quarter of 2023
Lower planned production during the quarter was primarily driven by a lack of fresh ore placed on the new Stage VI leach pad for approximately ninety days during the commissioning and ramp-up of the new three stage crusher after initial ounces from ore stacked on the new leach pad throughout 2023 were recovered in the prior period
The Company successfully completed the commissioning of all three stages of the crushing circuit and the truck load-out facility during the first quarter. Additionally, on March 31, 2024, the operation achieved commercial production and has routinely exceeded 70,000 tons per day since commissioning was completed. Ramp-up to sustained nameplate capacity of 88,000 tons per day remains on schedule to be completed by the end of the second quarter
The Company completed a review of the estimated recoverable ounces of gold and silver on its leach pads during the first quarter and determined that as a result of longer expected leach time and favorable recoveries relative to previous estimates that the estimated recoverable gold and silver on the Rochester legacy (Stages II, III and IV) leach pads supported an upward revision

Financial

First quarter adjusted CAS¹figures in the table above and highlighted below exclude the impact of an LCM adjustment totaling approximately $3 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 continued to decline compared to recent quarters, totaling $18.17 and $1,630 per ounce, respectively, mainly driven by the favorable impact of an increase in estimated recoverable ounces on legacy leach pads
Capital expenditures decreased 68% quarter-over-quarter to $21 million, reflecting decreased spending with the completion of the Rochester expansion project
Free cash flow¹ in the first quarter totaled $(40) million compared to $(54) million in the prior period

Exploration

Exploration investment decreased 17% quarter-over-quarter to approximately $1 million ($0.4 million expensed and $0.1 million capitalized)
First quarter activities included preparation for 2024 drill programs, geologic logging, interpretation and geological modeling, with a new geology model for Nevada Packard almost complete. This work will help refine understanding on the controls to mineralization at this deposit and help finalize 2024 drill planning
The primary focus for drilling over the balance of 2024 is assessing the potential for higher grades on structures identified in the newly-developed Rochester East and Nevada Packard geology models. Near-term exploration objectives aim to augment the grade profile of the current 16-year reserves-only mine life with the goal of bolstering cash flow

Guidance

Full-year 2024 production is expected to be 4.8 – 6.6 million ounces of silver and 37,000 – 50,000 ounces of gold. Production in 2024 is expected to increase after a slower first quarter due to commissioning and ramp-up in the first half of 2024
With the commissioning and ramp-up of the Rochester expansion taking place during the first half of 2024, the Company has provided CAS guidance for the second half of 2024, which are expected to be $14.00 – $16.00 per silver ounce and $1,200 – $1,400 per gold ounce
Capital expenditures are expected to be $50 – $70 million, which reflects fleet enhancements as part of the ramp-up of the newly completed Rochester expansion as well as sustaining capital

Kensington, Alaska

*(Dollars in millions, except per ounce amounts)*	1Q 2024			4Q 2023			3Q 2023			2Q 2023			1Q 2023
Tons milled		167,439			177,382			167,950			152,907			153,337
Average gold grade (oz/t)		0.14			0.16			0.16			0.09			0.15
Average recovery rate		90.8	%		92.3	%		92.6	%		90.9	%		91.2	%
Gold ounces produced		21,434			26,686			24,614			13,193			20,296
Gold ounces sold		21,183			25,980			24,516			13,273			20,902
Average realized price per gold ounce, gross	$	2,105		$	2,016		$	1,956		$	1,991		$	1,983
Treatment and refining charges per gold ounce	$	52		$	58		$	60		$	142		$	63
Average realized price per gold ounce, net	$	2,053		$	1,958		$	1,896		$	1,849		$	1,920
Metal sales	$	43.5		$	51.2		$	46.5		$	24.6		$	40.2
Costs applicable to sales²	$	39.3		$	37.9		$	38.3		$	39.1		$	37.4
Adjusted CAS per AuOz¹	$	1,840		$	1,441		$	1,543		$	2,927		$	1,775
Prepayment, working capital cash flow	$	—		$	10.7		$	(10.7	)	$	9.9		$	(9.9	)
Exploration expense	$	1.5		$	1.7		$	2.9		$	2.3		$	1.0
Cash flow from operating activities	$	1.5		$	16.9		$	(4.4	)	$	(3.7	)	$	(4.8	)
Sustaining capital expenditures (excludes capital lease payments)	$	13.3		$	15.1		$	15.8		$	11.7		$	10.7
Development capital expenditures	$	—		$	—		$	—		$	—		$	—
Total capital expenditures	$	13.3		$	15.1		$	15.8		$	11.7		$	10.7
Free cash flow¹	$	(11.8	)	$	1.8		$	(20.2	)	$	(15.4	)	$	(15.5	)

Operational

Gold production in the first quarter totaled 21,434 ounces compared to 26,686 ounces in the prior period and 20,296 ounces in the first quarter of 2023
Lower production during the quarter was driven by mill down time impacting tons milled as well as lower average grade due to mine sequencing

Financial

First quarter adjusted CAS¹ totaled $1,840 per ounce compared to $1,441 per ounce in the prior period, reflecting decreased metal sales
Capital expenditures decreased 12% quarter-over-quarter to $13 million. Capital expenditures during the quarter continued to focus on capital development to support the ongoing multi-year exploration program aimed at extending mine life
Free cash flow¹ in the first quarter and full-year totaled $(12) million compared to $2 million in the prior period

Exploration

Exploration investment in the quarter totaled approximately $4 million ($2 million expensed and $3 million capitalized), compared to $4 million ($2 million expensed and $2 million capitalized) in the prior period
Up to four rigs were active at Kensington, with drilling focused on both infill as well as extending the current resource boundaries. Notably, the multip

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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