CHICAGO--(BUSINESS WIRE)--Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) reported first quarter 2016 revenue of $148.4 million, adjusted EBITDA1 of $34.6 million, adjusted net loss1 of $0.04 per share, and cash flow from operating activities of $6.6 million2. The Company sold 3.5 million ounces of silver and 79,091 ounces of gold and during the quarter.
Adjusted all-in sustaining costs per realized silver equivalent ounce1 of $13.73 dropped 14% compared to the same quarter last year (9% decline assuming a constant 60:1 ratio). Adjusted costs applicable to sales per realized silver equivalent ounce1 of $11.08 declined 14% compared with the first quarter last year (12% decline assuming a constant 60:1 ratio). Adjusted costs applicable to sales per gold equivalent ounce1 of $721 declined 10% compared to the first quarter last year.
Highlights
- Silver production was 3.4 million ounces and gold production was 78,072 ounces, or 8.1 million silver equivalent ounces1, as previously announced on April 7, 2016
- Silver sales were 3.5 million ounces and gold sales were 79,091 ounces, or 8.3 million silver equivalent ounces1
- Adjusted all-in sustaining costs were $13.73 per realized silver equivalent ounce1. Using a 60:1 equivalence, adjusted all-in sustaining costs were $16.05 per silver equivalent ounce1
- Adjusted costs applicable to sales were $11.08 per realized silver equivalent ounce1. Using a 60:1 equivalence, adjusted costs applicable to sales per silver equivalent ounce1 were $12.05
- Adjusted costs applicable to sales per gold equivalent ounce1 were $721
- Adjusted EBITDA1 was $34.6 million, a 16% increase from the fourth quarter 2015
- Capital expenditures totaled $22.2 million, driven by development of the Jualin deposit at Kensington and the Guadalupe and Independencia underground deposits at Palmarejo
- Cash and equivalents of $173.4 million at March 31, 2016
- Expected total consideration of $24.8 million from sales of non-core assets
"I am pleased with our strong cost performance in the first quarter, which is tracking at the low-end of cost guidance set at the beginning of the year," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "These sustained lower operating costs, combined with the positive momentum we have seen in silver and gold prices so far this year, have led to a 16% increase in adjusted EBITDA1 to $34.6 million.
"We have made significant progress repositioning our assets through industry-leading cost reductions, operational efficiency improvements, and the focus on higher-quality, higher-margin silver and gold ounces, which is reflected in this quarter's results. As underground production rates continue to accelerate at the Guadalupe and Independencia deposits at Palmarejo, ore placement rates at Rochester increase, development of higher-grade mineralization at Kensington progresses, and with the first full-year of contribution from the Wharf mine which we acquired last year, we are well-positioned to generate strong free cash flow later this year."
|
Financial Highlights (Unaudited) |
|||||||||||||||||||||||||
|
(Amounts in millions, except per share amounts, gold |
1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||||||||||||
| Revenue | $ | 148.4 | $ | 164.2 | $ | 162.6 | $ | 166.3 | $ | 153.0 | |||||||||||||||
| Costs Applicable to Sales | $ | 101.6 | $ | 125.3 | $ | 120.2 | $ | 119.1 | $ | 115.1 | |||||||||||||||
| General and Administrative Expenses | $ | 8.3 | $ | 8.8 | $ | 6.7 | $ | 8.5 | $ | 8.8 | |||||||||||||||
| Adjusted EBITDA1 | $ | 34.6 | $ | 29.8 | $ | 31.4 | $ | 34.7 | $ | 23.7 | |||||||||||||||
| Net Income (Loss) | $ | (20.4 | ) | $ | (303.0 | ) | $ | (14.2 | ) | $ | (16.7 | ) | $ | (33.3 | ) | ||||||||||
| Net Income (Loss) Per Share | $ | (0.14 | ) | $ | (2.28 | ) | $ | (0.11 | ) | $ | (0.12 | ) | $ | (0.32 | ) | ||||||||||
| Adjusted Net Income (Loss)1 | $ | (6.6 | ) | $ | (38.6 | ) | $ | (21.8 | ) | $ | (14.5 | ) | $ | (19.2 | ) | ||||||||||
| Adjusted Net Income (Loss)1 Per Share | $ | (0.04 | ) | $ | (0.27 | ) | $ | (0.16 | ) | $ | (0.11 | ) | $ | (0.19 | ) | ||||||||||
| Weighted Average Shares | 150.2 | 145.0 | 135.5 | 135.0 | 102.6 | ||||||||||||||||||||
| Cash Flow From Operating Activities | $ | 6.6 | $ | 44.4 | $ | 36.2 | $ | 36.9 | $ | (3.4 | ) | ||||||||||||||
| Capital Expenditures | $ | 22.2 | $ | 30.0 | $ | 23.9 | $ | 23.7 | $ | 17.6 | |||||||||||||||
| Cash, Equivalents & Short-Term Investments | $ | 173.4 | $ | 200.7 | $ | 205.7 | $ | 205.9 | $ | 179.6 | |||||||||||||||
| Total Debt3 | $ | 511.1 | $ | 490.4 | $ | 546.0 | $ | 547.7 | $ | 513.5 | |||||||||||||||
| Average Realized Price Per Ounce – Silver | $ | 15.16 | $ | 14.27 | $ | 14.66 | $ | 16.23 | $ | 16.77 | |||||||||||||||
| Average Realized Price Per Ounce – Gold | $ | 1,178 | $ | 1,093 | $ | 1,116 | $ | 1,179 | $ | 1,204 | |||||||||||||||
| Silver Ounces Produced | 3.4 | 4.0 | 3.8 | 4.3 | 3.8 | ||||||||||||||||||||
| Gold Ounces Produced | 78,072 | 91,551 | 85,769 | 80,855 | 69,734 | ||||||||||||||||||||
| Silver Equivalent Ounces Produced1 | 8.1 | 9.5 | 9.0 | 9.1 | 8.0 | ||||||||||||||||||||
| Silver Ounces Sold | 3.5 | 4.4 | 4.0 | 4.0 | 4.1 | ||||||||||||||||||||
| Gold Ounces Sold | 79,091 | 92,032 | 91,118 | 84,312 | 68,420 | ||||||||||||||||||||
| Silver Equivalent Ounces Sold1 | 8.3 | 9.9 | 9.5 | 9.1 | 8.2 | ||||||||||||||||||||
| Silver Equivalent Ounces Sold (Realized)1 | 9.7 | 11.3 | 10.9 | 10.1 | 9.0 | ||||||||||||||||||||
| Adjusted Costs Applicable to Sales per AgEq Ounce1 | $ | 12.05 | $ | 12.65 | $ | 12.07 | $ | 12.56 | $ | 13.71 | |||||||||||||||
| Adjusted Costs Applicable to Sales per Realized AgEq Ounce1 | $ | 11.08 | $ | 11.71 | $ | 11.00 | $ | 11.75 | $ | 12.90 | |||||||||||||||
| Adjusted Costs Applicable to Sales per AuEq Ounce1 | $ | 721 | $ | 663 | $ | 783 | $ | 816 | $ | 797 | |||||||||||||||
| Adjusted All-in Sustaining Costs per AgEq Ounce1 | $ | 16.05 | $ | 15.66 | $ | 15.17 | $ | 16.60 | $ | 17.66 | |||||||||||||||
| Adjusted All-in Sustaining Costs per Realized AgEq Ounce 1 | $ | 13.73 | $ | 13.55 | $ | 13.14 | $ | 14.81 | $ | 16.05 | |||||||||||||||
Financial Results
The Company realized average silver and gold prices of $15.16 and $1,178 during the first quarter, which were 6% and 8% higher, respectively, compared with the fourth quarter and 10% and 2% lower, respectively, compared to last year's first quarter.
First quarter revenue decreased 10% compared with the fourth quarter and 3% compared with the first quarter 2015 to $148.4 million, primarily due to fewer silver and gold ounces sold from Palmarejo as a result of reduced mining rates as the operation transitions from predominantly open pit mining to entirely higher-grade underground mining. Production began from the Independencia deposit in late January and mining rates are expected to climb during each remaining quarter of the year. Silver contributed 36% of metal sales and gold contributed 64% during the first quarter.
First quarter general and administrative expenses were $8.3 million, 6% lower compared to the first and fourth quarters last year. First quarter capital expenditures of $22.2 million were 26% lower compared to the fourth quarter and 26% higher than the first quarter last year due to development of the Jualin deposit at Kensington and development of the Guadalupe and Independencia deposits at Palmarejo. First quarter exploration expense totaled $1.7 million for discovery of new silver and gold mineralization, which was flat compared to the fourth quarter and 59% lower than the first quarter 2015.
First quarter adjusted EBITDA1 was $34.6 million, a 16% increase compared to the fourth quarter, primarily due to lower operating costs and higher metal prices, and up 46% compared to the first quarter last year as a result of lower costs and the addition of the Wharf mine. At March 31, 2016, LTM adjusted EBITDA1 totaled $126.5 million, an 8% increase from year-end 2015 and a 58% increase from the same period last year.
Adjusted net loss1 was $6.6 million, or $0.04 per share, in the first quarter, compared to an adjusted net loss1 of $38.6 million, or $0.27 per share, in the fourth quarter and $19.2 million, or $0.19 per share, in the first quarter 2015. The first quarter adjusted net loss primarily excludes fair value adjustments to royalty obligations, a $3.9 million reduction in carrying value of the Endeavor silver stream and El Gallo royalty, and stock-based compensation. First quarter cash flow from operating activities was $6.6 million, lower than the fourth quarter 2015 as a result of lower metal sales and a $16.6 million increase in working capital, primarily due to payment of accrued interest and an increase in ore inventory on the leach pad at Rochester.
Operations
Highlights of first quarter 2016 results for each of the Company's operating segments are provided below.
|
Palmarejo, Mexico |
|||||||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||
| Underground Operations: | |||||||||||||||
| Tons mined | 215,642 | 189,383 | 190,399 | 172,730 | 149,150 | ||||||||||
| Average silver grade (oz/t) | 4.21 | 3.96 | 4.11 | 3.90 | 4.34 | ||||||||||
| Average gold grade (oz/t) | 0.07 | 0.06 | 0.10 | 0.09 | 0.07 | ||||||||||
| Surface Operations: | |||||||||||||||
| Tons mined | 35,211 | 102,018 | 247,071 | 257,862 | 281,481 | ||||||||||
| Average silver grade (oz/t) | 4.18 | 3.86 | 3.56 | 3.47 | 3.79 | ||||||||||
| Average gold grade (oz/t) | 0.04 | 0.03 | 0.03 | 0.03 | 0.04 | ||||||||||
| Processing: | |||||||||||||||
| Total tons milled | 246,533 | 301,274 | 427,635 | 435,841 | 451,918 | ||||||||||
| Average recovery rate – Ag | 89.1% | 95.4% | 87.9% | 78.5% | 78.7% | ||||||||||
| Average recovery rate – Au | 92.1% | 88.8% | 84.7% | 76.2% | 73.9% | ||||||||||
| Silver ounces produced (000's) | 933 | 1,126 | 1,422 | 1,247 | 1,354 | ||||||||||
| Gold ounces produced | 14,668 | 14,326 | 22,974 | 18,127 | 15,495 | ||||||||||
| Silver equivalent ounces produced1 (000's) | 1,813 | 1,985 | 2,800 | 2,335 | 2,284 | ||||||||||
| Silver ounces sold (000's) | 928 | 1,465 | 1,425 | 1,228 | 1,330 | ||||||||||
| Gold ounces sold | 12,899 | 18,719 | 25,000 | 15,706 | 13,793 | ||||||||||
| Silver equivalent ounces sold1 (000's) | 1,702 | 2,588 | 2,925 | 2,170 | 2,158 | ||||||||||
| Silver equivalent ounces sold1 (realized) (000's) | 1,930 | 2,840 | 3,325 | 2,374 | 2,323 | ||||||||||
| Revenues | $29.8 | $41.6 | $49.2 | $38.9 | $39.4 | ||||||||||
| Costs applicable to sales | $21.0 | $39.8 | $34.1 | $30.1 | $34.5 | ||||||||||
| Adjusted costs applicable to sales per AgEq ounce1 | $11.54 | $13.48 | $11.40 | $13.21 | $14.56 | ||||||||||
| Adjusted costs applicable to sales per realized AgEq ounce 1 | $10.18 | $12.04 | $10.01 | $12.07 | $13.52 | ||||||||||
| Exploration expense | $0.8 | $0.5 | $1.1 | $1.8 | $1.1 | ||||||||||
| Cash flow from operating activities | $3.4 | $20.3 | $22.9 | $9.7 | $(0.2) | ||||||||||
| Sustaining capital expenditures | $6.6 | $(1.4) | $1.1 | $2.7 | $3.1 | ||||||||||
| Development capital expenditures | $2.2 | $7.0 | $9.4 | $8.0 | $6.1 | ||||||||||
| Total capital expenditures | $8.8 | $5.6 | $10.5 | $10.7 | $9.2 | ||||||||||
| Free cash flow (before royalties) | $(5.4) | $14.7 | $12.4 | $(1.0) | $(9.4) | ||||||||||
| Royalties paid | $9.1 | $8.8 | $10.2 | $9.8 | $10.4 | ||||||||||
| Free cash flow4 | $(14.5) | $5.9 | $2.2 | $(10.8) | $(19.8) | ||||||||||
- Production was in-line with expectations as the transition to lower-tonnage, higher-grade, higher-margin underground operations from two ore sources - Guadalupe and Independencia - remains on-track
- First quarter adjusted costs applicable to sales per realized silver equivalent ounce1 were $10.18, a 15% decline from the fourth quarter as a result of fewer waste tons mined and lower processing costs. Using a 60:1 equivalence, adjusted costs applicable to sales per silver equivalent ounce1 were $11.54
- Recent modifications to the processing plant have significantly improved recovery rates. First quarter recovery rates were 89.1% for silver and 92.1% for gold compared to 78.7% and 73.9%, respectively, during last year's first quarter
- With active open pit mining operations to be completed in the second quarter 2016, underground production levels are expected to increase throughout the year as mining rates from Independencia accelerate to 1,000 tons per day by year-end 2016. By mid-2017, the Company expects daily underground mining rates to reach a combined 4,000 tons per day from the higher-grade, higher-margin Guadalupe and Independencia deposits
- In 2016, Palmarejo is expected to produce 3.9 - 4.4 million ounces of silver and 67,000 - 72,000 ounces of gold at costs applicable to sales per silver equivalent ounce1 of $12.50 - $13.50 (based on a 60:1 equivalence)
|
Rochester, Nevada |
|||||||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||
| Ore tons placed | 4,374,459 | 4,411,590 | 4,128,868 | 3,859,965 | 4,013,879 | ||||||||||
| Average silver grade (oz/t) | 0.64 | 0.60 | 0.59 | 0.61 | 0.74 | ||||||||||
| Average gold grade (oz/t) | 0.004 | 0.003 | 0.003 | 0.003 | 0.004 | ||||||||||
| Silver ounces produced (000's) | 929 | 1,107 | 1,086 | 1,294 | 1,144 | ||||||||||
| Gold ounces produced | 10,460 | 11,564 | 10,892 | 16,411 | 13,721 | ||||||||||
| Silver equivalent ounces produced1 (000's) | 1,557 | 1,800 | 1,740 | 2,279 | 1,967 | ||||||||||
| Silver ounces sold (000's) | 1,079 | 1,125 | 1,304 | 1,120 | 1,351 | ||||||||||
| Gold ounces sold | 11,672 | 11,587 | 13,537 | 15,085 | 17,754 | ||||||||||
| Silver equivalent ounces sold1 (000's) | 1,779 | 1,821 | 2,116 | 2,025 | 2,416 | ||||||||||
| Silver equivalent ounces sold1 (realized) (000's) | 1,986 | 2,004 | 2,333 | 2,221 | 2,629 | ||||||||||
| Revenues | $30.0 | $29.0 | $34.6 | $36.3 | $44.0 | ||||||||||
| Costs applicable to sales | $22.5 | $22.8 | $25.4 | $24.4 | $31.4 | ||||||||||
| Adjusted costs applicable to sales per AgEq ounce1 | $12.61 | $12.37 | $12.01 | $12.01 | $12.95 | ||||||||||
| Adjusted costs applicable to sales per realized AgEq ounce 1 | $11.29 | $11.19 | $10.89 | $10.94 | $11.91 | ||||||||||
| Exploration expense | $0.1 | $0.1 | $— | $0.5 | $0.7 | ||||||||||
| Cash flow from operating activities | $2.1 | $0.4 | $6.5 | $8.8 | $16.4 | ||||||||||
| Sustaining capital expenditures | $2.5 | $5.3 | $1.8 | $2.4 | $0.8 | ||||||||||
| Development capital expenditures | $0.8 | $5.5 | $3.5 | $3.5 | $2.5 | ||||||||||
| Total capital expenditures | $3.3 | $10.8 | $5.3 | $5.9 | $3.3 | ||||||||||
| Free cash flow4 | $(1.2) | $(10.4) | $1.2 | $2.9 | $13.1 | ||||||||||
- Silver equivalent production1 was 14% lower than the prior quarter due to poor weather and timing of recoveries from the Stage III leach pad. Production levels increased significantly in March as expected and are anticipated to continue to climb throughout the year
- First quarter adjusted costs applicable to sales per realized silver equivalent ounce1 were $11.29. Using a 60:1 equivalence, adjusted costs applicable to sales per silver equivalent ounce1 were $12.61
- Approval for POA 10, which will allow for the expansion of the Stage IV leach pad and construction of new Stage V leach pad, is expected in the second quarter 2016
- In 2016, Rochester is expected to produce 4.8 - 5.3 million ounces of silver and 48,000 - 55,000 ounces of gold at costs applicable to sales per silver equivalent ounce1 of $11.25 - $12.25 (based on a 60:1 equivalence)
|
Kensington, Alaska |
|||||||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||
| Tons milled | 159,360 | 159,666 | 165,198 | 170,649 | 164,951 | ||||||||||
| Average gold grade (oz/t) | 0.21 | 0.22 | 0.19 | 0.18 | 0.24 | ||||||||||
| Average recovery rate | 95.8% | 96.0% | 93.9% | 94.9% | 94.8% | ||||||||||
| Gold ounces produced | 31,974 | 33,713 | 28,799 | 29,845 | 33,909 | ||||||||||
| Gold ounces sold | 31,648 | 29,989 | 28,084 | 36,607 | 36,873 | ||||||||||
| Revenues | $35.7 | $31.7 | $30.5 | $42.5 | $44.0 | ||||||||||
| Costs applicable to sales | $24.4 | $23.7 | $25.0 | $27.5 | $29.4 | ||||||||||
| Adjusted costs applicable to sales per gold ounce1 | $761 | $777 | $842 | $745 | $797 | ||||||||||
| Exploration expense | $— | $0.3 | $0.2 | $0.4 | $1.7 | ||||||||||
| Cash flow from operating activities | $13.7 | $4.5 | $8.9 | $12.0 | $12.3 | ||||||||||
| Sustaining capital expenditures | $4.4 | $5.5 | $1.0 | $4.2 | $4.1 | ||||||||||
| Development capital expenditures | $3.7 | $4.0 | $4.5 | $0.5 | $— | ||||||||||
| Total capital expenditures | $8.1 | $9.5 | $5.5 | $4.7 | $4.1 | ||||||||||
| Free cash flow4 | $5.6 | $(5.0) | $3.4 | $7.3 | $8.2 | ||||||||||
- Consistent production and costs achieved in the first quarter with 31,974 gold ounces produced at adjusted costs applicable to sales per gold ounce1 of $761
- Development of the high-grade Jualin deposit is progressing and is over one-third complete
- In 2016, Kensington is expected to produce 115,000 - 125,000 ounces of gold at costs applicable to sales per gold ounce1 of $825 - $875
|
Wharf, South Dakota |
|||||||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||
| Ore tons placed | 974,663 | 1,147,130 | 1,149,744 | 887,409 | 415,996 | ||||||||||
| Average silver grade (oz/t) | 0.30 | 0.21 | 0.21 | 0.30 | — | ||||||||||
| Average gold grade (oz/t) | 0.031 | 0.032 | 0.035 | 0.025 | 0.020 | ||||||||||
| Average plant recovery rate – Au | 96.6% | 97.3% | 92.8% | 76.7% | 85.9% | ||||||||||
| Silver ounces produced (000's) | 13 | 18 | 19 | 19 | — | ||||||||||
| Gold ounces produced | 20,970 | 31,947 | 23,104 | 16,472 | 6,609 | ||||||||||
| Gold equivalent ounces produced1 | 21,186 | 32,231 | 23,427 | 16,794 | 6,609 | ||||||||||
| Silver ounces sold (000's) | 15 | 17 | 19 | 13 | — | ||||||||||
| Gold ounces sold | 22,872 | 31,202 | 24,815 | 17,131 | — | ||||||||||
| Gold equivalent ounces sold1 | 23,122 | 31,485 | 25,132 | 17,348 | — | ||||||||||
| Revenues | $27.9 | $35.7 | $28.0 | $20.4 | $— | ||||||||||
| Costs applicable to sales | $15.5 | $17.8 | $17.8 | $16.6 | $— | ||||||||||
| Adjusted costs applicable to sales per gold equivalent ounce1 | $667 | $556 | $716 | $970 | $— | ||||||||||
| Exploration expense | $— | $0.1 | $— | $— | $— | ||||||||||
| Cash flow from operating activities | $9.7 | $18.1 | $12.9 | $8.2 | $(7.2) | ||||||||||
| Sustaining capital expenditures | $1.4 | $1.2 | $0.7 | $1.2 | $0.1 | ||||||||||
| Development capital expenditures | $— | $— | $— | $— | $— | ||||||||||
| Total capital expenditures | $1.4 | $1.2 | $0.7 | $1.2 | $0.1 | ||||||||||
| Free cash flow4 | $8.3 | $16.9 | $12.2 | $7.0 | $(7.3) | ||||||||||
- Lower production compared to prior quarter as expected due to timing of recoveries from the current leach pad. Higher production is expected during remainder of 2016
- Adjusted costs applicable to sales per gold equivalent ounce1 were $667 in the first quarter. Process plant efficiencies have led to significantly higher plant recovery rates since Coeur acquired the operation in February 2015, which have positively impacted unit costs
- In 2016, Wharf is expected to produce 90,000 - 95,000 ounces of gold at costs applicable to sales per gold equivalent ounce1 of $650 - $750
|
San Bartolomé, Bolivia |
|||||||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||
| Tons milled | 407,806 | 475,695 | 373,201 | 457,232 | 406,951 | ||||||||||
| Average silver grade (oz/t) | 3.64 | 3.84 | 3.76 | 3.73 | 3.65 | ||||||||||
| Average recovery rate | 93.1% | 84.9% | 84.0% | 87.6% | 81.6% | ||||||||||
| Silver ounces produced (000's) | 1,382 | 1,550 | 1,178 | 1,495 | 1,213 | ||||||||||
| Silver ounces sold (000's) | 1,384 | 1,564 | 1,202 | 1,439 | 1,290 | ||||||||||
| Revenues | $21.3 | $22.4 | $17.4 | $23.4 | $21.5 | ||||||||||
| Costs applicable to sales | $17.5 | $20.0 | $17.5 | $19.2 | $19.1 | ||||||||||
|
Adjusted costs applicable to sales per silver ounce1 |
$12.56 | $12.48 | $14.41 | $13.26 | $14.47 | ||||||||||
| Exploration expense | $— | $— | $0.1 | $— | $— | ||||||||||
| Cash flow from operating activities | $5.5 | $10.0 | $5.7 | $5.4 | $5.0 | ||||||||||
| Sustaining capital expenditures | $0.5 | $2.5 | $1.8 | $1.0 | $0.9 | ||||||||||
| Development capital expenditures | $— | $— | $— | $— | $— | ||||||||||
| Total capital expenditures | $0.5 | $2.5 | $1.8 | $1.0 | $0.9 | ||||||||||
| Free cash flow4 | $5.0 | $7.5 | $3.9 | $4.4 | $4.1 | ||||||||||
- Adjusted costs applicable to sales per silver ounce1 were $12.56 in the first quarter, consistent with the prior quarter and down 13% compared the to the same quarter last year as a result of the recent increase in lower-cost, higher-grade, third-party ore purchases
- Approximately one-third of first quarter silver production was derived from higher-grade, third-party ore purchases. Coeur expects the proportion to remain between 25 - 30% during the remainder of 2016
- Average recovery rate increased from 84.9% in the fourth quarter to 93.1% in the first quarter, partially as a result of process improvements, including the recently implemented oxygen injection system in the agitated leach circuit
- In 2016, San Bartolomé is expected to produce 5.8 - 6.1 million ounces of silver at costs applicable to sales per silver ounce1 of $13.50 - $14.25
|
|
|||||||||||||||
|
Coeur Capital |
|||||||||||||||
| (Dollars in millions, except per ounce amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||
| Tons milled | 86,863 | 198,927 | 191,913 | 191,175 | 185,299 | ||||||||||
| Average silver grade (oz/t) | 3.17 | 2.05 | 1.39 | 2.35 | 1.69 | ||||||||||
| Average recovery rate | 41.9% | 42.1% | 45.4% | 45.4% | 42.4% | ||||||||||
| Silver ounces produced (000's) | 115 | 171 | 121 | 204 | 133 | ||||||||||
| Silver ounces sold (000's) | 123 | 193 | 95 | 209 | 118 | ||||||||||
| Metal sales | $1.9 | $2.4 | $1.3 | $3.1 | $1.9 | ||||||||||
| Royalty revenue | $1.8 | $1.5 | $1.6 | $1.8 | $2.0 | ||||||||||
| Costs applicable to sales (Endeavor silver stream) | $1.0 | $1.0 | $0.5 | $1.4 | $0.6 | ||||||||||
| Costs applicable to sales per silver equivalent ounce1 | $5.35 | $5.50 | $4.99 | $6.46 | $5.37 | ||||||||||
| Cash flow from operating activities | $0.8 | $0.8 | $3.1 | $2.1 | $2.2 | ||||||||||
| Free cash flow4 | $0.8 | $0.8 | $3.1 | $2.1 | $2.2 | ||||||||||
- There are now three cash-flowing royalties and streams, one non-cash-flowing royalty, and several investments in junior mining companies held in Coeur Capital or its affiliates
- Coeur Capital's largest source of cash flow is the silver stream on the Endeavor mine in New South Wales, Australia in which the Company owns 100% of the silver up to a total of 20.0 million payable ounces. At March 31, 2016, the Company has received 6.2 million ounces
- Silver production received from the stream on the Endeavor mine declined following a decision by the operator to significantly cut production due to lower lead and zinc prices
Exploration
First quarter exploration expense totaled $1.7 million. Coeur's exploration program used 3 drill rigs during the first quarter, including one drill at each of Palmarejo, Kensington, and Rochester. This work resulted in completion of over 12,579 feet (3,834 meters) of combined core and reverse circulation drilling. Drilling programs gained momentum toward the end of the quarter, with the second and third quarters expected to be the most active for exploration drilling.
Exploration expense is expected to total $11 - $13 million in 2016, with an additional $11 - $13 million of capital allocated to resource conversion. Exploration continues to be driven by the focus on the discovery of high-grade deposits located near existing operations, with the near-term focus on:
- Expanding resources in the Guadalupe-Independencia corridor, including deeper areas of the Guadalupe and Independencia deposits and the recently identified Los Bancos and Nación veins, as well as drilling at the nearby La Bavisa vein
- Infill and expansion drilling of the higher-grade East Rochester deposit, which is expected to be the focus of a revised economic analysis in 2016
- Underground infill and expansion drilling of the high-grade Jualin deposit at Kensington, as well as four zones within the Kensington Main deposit, proximal to current mining activities
Non-Core Asset Sales
On March 31, 2016, Coeur sold its 2.0% net smelter returns "NSR" royalty on the Cerro Bayo mine to the operator, Mandalay Resources Corporation, for total consideration valued at approximately $5.7 million on the closing date, consisting of $4.0 million in cash and 2.5 million Mandalay shares
On April 19, 2016, Coeur closed the sale of its 2.5% NSR royalty on the La Cigarra project to Kootenay Silver Inc. for total consideration valued at approximately $3.6 million on the closing date, consisting of $500,000 in cash and 9.6 million Kootenay shares.
On April 19, 2016, Coeur sold its tiered NSR royalty on the El Gallo mine to the operator, a subsidiary of McEwen Mining Inc., for total consideration of approximately $6.3 million, including $1 million in contingent consideration payable in mid-2018.
Coeur also entered into a definitive agreement to sell its Martha assets in Argentina to Hunt Mining Corp. for total cash consideration of $3.0 million, including $1.5 million at the time of closing and $1.5 million on the one-year anniversary of the closing. The transaction is expected to close in the second quarter of 2016.
Coeur has reached principal terms to sell its interest in the royalty on the Correnso mine for expected consideration of $5.5 million (on a 100% basis after completing the buyout of Coeur's joint venture partner in New Zealand), plus a contingent payment of $700,000 payable in 2017 tied to resource conversion. The transaction is subject to negotiation and execution of definitive agreements and is expected to close in the second quarter 2016.
Full-Year 2016 Outlook
Coeur's 2016 guidance is shown below. Companywide production and cost guidance is unchanged from the original guidance provided on February 10, 2016. Following a decision by the operator of the Endeavor mine to significantly curtail production due to lower lead and zinc prices, Coeur revised the production outlook from the Endeavor silver stream lower but expects to increase production at Palmarejo, Rochester, and San Bartolomé for the remainder of 2016, leaving total silver and silver equivalent production guidance unchanged from the February 10, 2016 guidance.
|
2016 Production Outlook |
|||||||||
| (silver and silver equivalent ounces in thousands) | Silver | Gold | Silver Equivalent1 | ||||||
| Palmarejo | 3,875 - 4,400 | 67,000 - 72,000 | 7,895 - 8,720 | ||||||
| Rochester | 4,750 - 5,250 | 48,000 - 55,000 | 7,630 - 8,550 | ||||||
| San Bartolomé | 5,750 - 6,050 | — | 5,750 - 6,050 | ||||||
| Endeavor | 175 - 200 | — | 175 - 200 | ||||||
| Kensington | — | 115,000 - 125,000 | 6,900 - 7,500 | ||||||
| Wharf | 80 - 100 | 90,000 - 95,000 | 5,480 - 5,800 | ||||||
| Total | 14,630 - 16,000 | 320,000 - 347,000 | 33,830 - 36,820 | ||||||
|
2016 Cost Outlook |
||||||
| (dollars in millions, except per ounce amounts) | 2016 Guidance | 2015 Result | ||||
| Costs Applicable to Sales per Silver Equivalent Ounce1 – Palmarejo | $12.50 - $13.50 | $13.03 | ||||
| Costs Applicable to Sales per Silver Equivalent Ounce1 – Rochester | $11.25 - $12.25 | $12.36 | ||||
| Costs Applicable to Sales per Silver Ounce1 – San Bartolomé | $13.50 - $14.25 | $13.63 | ||||
| Costs Applicable to Sales per Gold Ounce1 – Kensington | $825 - $875 | $798 | ||||
| Costs Applicable to Sales per Gold Equivalent Ounce1 – Wharf | $650 - $750 | $706 | ||||
| Capital Expenditures | $90 - $100 | $95.2 | ||||
| General and Administrative Expenses | $28 - $32 | $32.8 | ||||
| Exploration Expense | $11 - $13 | $11.6 | ||||
| All-in Sustaining Costs per Silver Equivalent Ounce1 | $16.00 - $17.25 | $16.16 | ||||
Conference Call Information
Coeur will report its full operational and financial results for first quarter 2016 on April 27, 2016 after the New York Stock Exchange closes for trading. There will be a conference call on April 28, 2016 at 11:00 a.m. Eastern time.
| Dial-In Numbers: | (855) 560-2581 (US) | ||
| (855) 669-9657 (Canada) | |||
| (412) 542-4166 (International) | |||
| Conference ID: | Coeur Mining | ||
| A replay of the call will be available through May 13, 2016. | |||
| Replay numbers: | (877) 344-7529 (US) | ||
| (855) 669-9658 (Canada) | |||
| (412) 317-0088 (International) | |||
| Conference ID: | 100 83 340 | ||
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a significant gold producer with five precious metals mines in the Americas employing approximately 2,000 people. Coeur produces from its wholly owned operations: the Palmarejo silver-gold 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 San Bartolomé silver mine in Bolivia. The Company also has a non-operating interest in the Endeavor mine in Australia in addition to royalties on the Zaruma mine in Ecuador and the Correnso mine in New Zealand. In addition, the Company has two silver-gold exploration projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic investment positions in several silver and gold development companies with projects in North and South America.
Cautionary Statement
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated cash flow, production, costs, capital expenditures, expenses, mining rates, recovery rates, development activity at Palmarejo and Kensington, permitting and expansion projects at Rochester, ore purchases at San Bartolomé, and exploration efforts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated 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 and silver 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, ground conditions, grade variability, any future labor disputes or work stoppages (including those involving third parties), the uncertainties inherent in the estimation of gold and silver reserves and resources, changes that could result from Coeur's future acquisition of new mining properties or businesses, the absence of control over and reliance on third parties to operate mining operations in which Coeur or its subsidiaries hold royalty or streaming interests and risks related to these mining operations including results of mining and exploration activities, environmental, economic and political risks of the jurisdiction in which the mining operations are located, the loss of access to any third-party smelter to which Coeur markets silver and gold, 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 Forms 10-K and 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.
Dana Willis, Coeur's Director, Resource Geology and a qualified person under Canadian National Instrument 43-101, supervised the preparation of 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 adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce, all-in sustaining costs, and adjusted all-in sustaining costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce, all-in sustaining costs, and adjusted all-in sustaining costs are important measures in assessing the Company's overall financial performance.
Notes
1. Adjusted EBITDA, adjusted net income (loss), all-in sustaining costs, adjusted all-in sustaining costs, costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce), and adjusted costs applicable to sales per silver equivalent ounce are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. For purposes of silver and gold equivalence, a 60:1 silver to gold ratio is assumed except where noted as average realized prices.
2. Operating cash flow is after a $16.6 million increase in working capital.
3. Includes capital leases. Net of debt issuance costs and premium received.
4. Free cash flow is defined as cash flow from operating activities less capital expenditures and royalty payments.
| Coeur Mining, Inc. and Subsidiaries | ||||||||||
| Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||||
| Three months ended March 31, | ||||||||||
| 2016 | 2015 | |||||||||
| In thousands, except share data | ||||||||||
| Revenue | $ | 148,387 | $ | 152,956 | ||||||
| COSTS AND EXPENSES | ||||||||||
| Costs applicable to sales(1) | 101,555 | 115,062 | ||||||||
| Amortization | 27,964 | 33,090 | ||||||||
| General and administrative | 8,276 | 8,834 | ||||||||
| Exploration | 1,731 | 4,266 | ||||||||
| Write-downs | 4,446 | — | ||||||||
| Pre-development, reclamation, and other | 4,204 | 6,763 | ||||||||
| Total costs and expenses | 148,176 | 168,015 | ||||||||
| OTHER INCOME (EXPENSE), NET | ||||||||||
| Fair value adjustments, net | (8,695 | ) | (4,884 | ) | ||||||
| Interest expense, net of capitalized interest | (11,120 | ) | (10,765 | ) | ||||||
| Other, net | 1,314 | (2,511 | ) | |||||||
| Total other income (expense), net | (18,501 | ) | (18,160 | ) | ||||||
| Income (loss) before income and mining taxes | (18,290 | ) | (33,219 | ) | ||||||
| Income and mining tax (expense) benefit | (2,106 | ) | (68 | ) | ||||||
|
NET INCOME (LOSS) |
$ | (20,396 | ) | $ | (33,287 | ) | ||||
| OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | ||||||||||
|
Unrealized gain (loss) on equity securities, net of tax of
$(1,011) and $578 for the three |
1,043 | (915 | ) | |||||||
|
Reclassification adjustments for impairment of equity securities,
net of tax of $(586) for |
— | 928 | ||||||||
| Reclassification adjustments for realized loss on sale of equity securities | 588 | — | ||||||||
| Other comprehensive income (loss) | 1,631 | 13 | ||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | (18,765 | ) | $ | (33,274 | ) | ||||
| NET INCOME (LOSS) PER SHARE | ||||||||||
| Basic | $ | (0.14 | ) | $ | (0.32 | ) | ||||
| Diluted | $ | (0.14 | ) | $ | (0.32 | ) | ||||
| Coeur Mining, Inc. and Subsidiaries | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| Three months ended March 31, | ||||||||||
| 2016 | 2015 | |||||||||
| In thousands | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income (loss) | $ | (20,396 | ) | (33,287 | ) | |||||
| Adjustments: | ||||||||||
| Amortization | 27,964 | 33,090 | ||||||||
| Accretion | 3,169 | 3,150 | ||||||||
| Deferred income taxes | (2,105 | ) | (2,184 | ) | ||||||
| Fair value adjustments, net | 8,695 | 4,884 | ||||||||
| Stock-based compensation | 2,915 | 2,150 | ||||||||
| Impairment of equity securities | — | 1,514 | ||||||||
| Write-downs | 4,446 | — | ||||||||
|
Other |
(1,435 | ) | 1,079 | |||||||
| Changes in operating assets and liabilities: | ||||||||||
| Receivables | 3,481 | 2,556 | ||||||||
| Prepaid expenses and other current assets | 1,279 | (1,327 | ) | |||||||
| Inventory and ore on leach pads | (7,822 | ) | 684 | |||||||
| Accounts payable and accrued liabilities | (13,574 | ) | (15,758 | ) | ||||||
| CASH PROVIDED BY OPERATING ACTIVITIES | 6,617 | (3,449 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Capital expenditures | (22,172 | ) | (17,620 | ) | ||||||
| Acquisitions, net | — | (102,018 | ) | |||||||
| Other | 2,536 | (1,730 | ) | |||||||
|
Purchase of investments |
(7 | ) | (278 | ) | ||||||
|
Sales and maturities of investments |
997 | 229 | ||||||||
| CASH USED IN INVESTING ACTIVITIES | (18,646 | ) | (121,417 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Issuance of notes and bank borrowings | — | 53,500 | ||||||||
| Payments on debt, capital leases, and associated costs | (5,971 | ) | (8,594 | ) | ||||||
| Gold production royalty payments | (9,131 | ) | (10,368 | ) | ||||||
| Other | (280 | ) | (423 | ) | ||||||
| CASH PROVIDED BY FINANCING ACTIVITIES | (15,382 | ) | 34,115 | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 86 | (523 | ) | |||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (27,325 | ) | (91,274 | ) | ||||||
| Cash and cash equivalents at beginning of period | 200,714 | 270,861 | ||||||||
| Cash and cash equivalents at end of period | $ | 173,389 | $ | 179,587 | ||||||
| Coeur Mining, Inc. and Subsidiaries | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| March 31, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| ASSETS | In thousands, except share data | |||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 173,389 | $ | 200,714 | ||||||
| Receivables | 82,929 | 85,992 | ||||||||
| Inventory | 78,597 | 81,711 | ||||||||
| Ore on leach pads | 72,703 | 67,329 | ||||||||
| Prepaid expenses and other | 13,130 | 10,942 | ||||||||
| 420,748 | 446,688 | |||||||||
| NON-CURRENT ASSETS | ||||||||||
| Property, plant and equipment, net | 220,948 | 195,999 | ||||||||
| Mining properties, net | 574,104 | 589,219 | ||||||||
| Ore on leach pads | 49,294 | 44,582 | ||||||||
| Restricted assets | 13,221 | 11,633 | ||||||||
| Equity securities | 5,530 | 2,766 | ||||||||
| Receivables | 24,114 | 24,768 | ||||||||
| Deferred tax assets | 2,750 | 1,942 | ||||||||
| Other | 14,389 | 14,892 | ||||||||
| TOTAL ASSETS | $ | 1,325,098 | $ | 1,332,489 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 46,955 | $ | 48,732 | ||||||
| Accrued liabilities and other | 42,037 | 53,953 | ||||||||
| Debt | 16,801 | 10,431 | ||||||||
| Royalty obligations | 21,183 | 24,893 | ||||||||
| Reclamation | 3,463 | 2,071 | ||||||||
| 130,439 | 140,080 | |||||||||
| NON-CURRENT LIABILITIES | ||||||||||
| Debt | 494,300 | 479,979 | ||||||||
| Royalty obligations | 6,354 | 4,864 | ||||||||
| Reclamation | 83,902 | 83,197 | ||||||||
| Deferred tax liabilities | 146,845 | 147,132 | ||||||||
| Other long-term liabilities | 58,118 | 55,761 | ||||||||
| 789,519 | 770,933 | |||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||
|
Common stock, par value $0.01 per share; authorized 300,000,000
shares, issued and |
1,532 | 1,513 | ||||||||
| Additional paid-in capital | 3,026,871 | 3,024,461 | ||||||||
| Accumulated other comprehensive income (loss) | (2,091 | ) | (3,722 | ) | ||||||
| Accumulated deficit | (2,621,172 | ) | (2,600,776 | ) | ||||||
| 405,140 | 421,476 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,325,098 | $ | 1,332,489 | ||||||
|
Adjusted EBITDA Reconciliation |
|||||||||||||||||||||||||||||
| LTM 1Q | LTM | ||||||||||||||||||||||||||||
|
(Dollars in thousands except per share amounts) |
2016 | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | 1Q 2015 | ||||||||||||||||||||||
| Net income (loss) | $ | (354,292 | ) | $ | (20,396 | ) | $ | (303,000 | ) | $ | (14,219 | ) | $ | (16,677 | ) | $ | (1,151,980 | ) | $ | (33,287 | ) | ||||||||
| Interest expense, net of capitalized interest | 46,058 | 11,120 | 11,758 | 12,446 | 10,734 | 45,257 | 10,765 | ||||||||||||||||||||||
| Other, net | (3,810 | ) | (1,314 | ) | (14,241 | ) | 8,893 | 2,852 | 7,124 | 2,511 | |||||||||||||||||||
| Income tax provision (benefit) | (24,225 | ) | 2,106 | (17,811 | ) | (8,260 | ) | (260 | ) | (454,487 | ) | 68 | |||||||||||||||||
| Amortization | 138,625 | 27,964 | 36,190 | 35,497 | 38,974 | 155,067 | 33,090 | ||||||||||||||||||||||
| EBITDA | (197,644 | ) | 19,480 | (287,104 | ) | 34,357 | 35,623 | (1,399,019 | ) | 13,147 | |||||||||||||||||||
| Fair value adjustments, net | (1,391 | ) | 8,695 | (1,546 | ) | (5,786 | ) | (2,754 | ) | (10,170 | ) | 4,884 | |||||||||||||||||
| Corporate reorganization costs | 647 | — | 133 | 514 | — | — | — | ||||||||||||||||||||||
| Transaction-related costs | 137 | — | 99 | — | 38 | 1,975 | 1,975 | ||||||||||||||||||||||
| Inventory adjustments | 6,957 | 1,944 | 4,901 | 2,280 | 1,805 | 14,738 | 3,684 | ||||||||||||||||||||||
| Write-downs | 317,783 | 4,446 | 313,337 | — | — | 1,472,721 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 126,489 | $ | 34,565 | $ | 29,820 | $ | 31,365 | $ | 34,712 | $ | 80,245 | $ | 23,690 | |||||||||||||||
|
Adjusted Net Income (Loss) Reconciliation |
|||||||||||||||||||||
| (Dollars in thousands except per share amounts) | 1Q 2016 | 4Q 2015 | 3Q 2015 | 2Q 2015 | 1Q 2015 | ||||||||||||||||
| Net income (loss) | $ | (20,396 | ) | $ | (303,000 | ) | $ | (14,219 | ) | $ | (16,677 | ) | $ | (33,287 | ) | ||||||
| Fair value adjustments, net | 6,980 | (2,446 | ) | (3,384 | ) | (2,618 | ) | 4,339 | |||||||||||||
| Stock-based compensation | 2,846 | 2,221 | 1,541 | 2,529 | 2,410 | ||||||||||||||||
| Impairment of equity securities | — | 318 | 483 | 31 | 1,514 | ||||||||||||||||
| Accretion of royalty obligation | 392 | 727 | 1,063 | 1,147 | 1,315 | ||||||||||||||||
| Write-downs | 3,937 | 276,510 | — | — | — | ||||||||||||||||
| Gain on sale of non-core assets | (1,880 | ) | — | — | — | — | |||||||||||||||
| (Gain) loss on debt extinguishments | — | (16,187 | ) | — | 524 | (253 | ) | ||||||||||||||
| Inventory adjustments | 1,944 | 4,901 | 2,280 | 1,805 | 3,684 | ||||||||||||||||
| Corporate reorganization costs | — | 133 | 514 | — | — | ||||||||||||||||
| Transaction-related costs | — | 99 | — | 38 | 1,975 | ||||||||||||||||
| Deferred tax asset valuation allowance | 848 | — | — | — | — | ||||||||||||||||
| Foreign exchange (gain) loss on deferred taxes | (1,288 | ) | (1,844 | ) | (10,092 | ) | (1,305 | ) | (929 | ) | |||||||||||
| Adjusted net income (loss) | $ | (6,617 | ) | $ | (38,568 | ) | $ | (21,814 | ) | $ | (14,526 | ) | $ | (19,232 | ) | ||||||
| Adjusted net income (loss) per share | $ | (0.04 | ) | $ | (0.27 | ) | $ | (0.16 | ) | $ | (0.11 | ) | $ | (0.19 | ) | ||||||
| Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||||||||
| for Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||||||||||
| Silver | Gold | Total | |||||||||||||||||||||||||||||||||||||
|
In thousands except per ounce amounts |
Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | |||||||||||||||||||||||||||||||
| Costs applicable to sales, including amortization (U.S. GAAP) | $ | 28,327 | $ | 27,798 | $ | 19,251 | $ | 955 | $ | 76,331 | $ | 32,767 | $ | 19,512 | $ | 52,279 | $ | 128,610 | |||||||||||||||||||||
| Amortization | 7,289 | 5,313 | 1,754 | 299 | 14,655 | 8,349 | 4,051 | 12,400 | 27,055 | ||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 21,038 | $ | 22,485 | $ | 17,497 | $ | 656 | $ | 61,676 | $ | 24,418 | $ | 15,461 | $ | 39,879 | $ | 101,555 | |||||||||||||||||||||
| Silver equivalent ounces sold | 1,702,290 | 1,779,377 | 1,384,391 | 122,694 | 4,988,752 | 8,274,952 | |||||||||||||||||||||||||||||||||
| Gold equivalent ounces sold | 31,648 | 23,122 | 54,770 | ||||||||||||||||||||||||||||||||||||
| Costs applicable to sales per ounce | $ | 12.36 | $ | 12.64 | $ | 12.64 | $ | 5.35 | $ | 12.36 | $ | 772 | $ | 669 | $ | 728 | $ | 12.27 | |||||||||||||||||||||
| Inventory adjustments | (0.82 | ) | (0.03 | ) | (0.08 | ) | — | (0.31 | ) | (11 | ) | (2 | ) | (7 | ) | (0.23 | ) | ||||||||||||||||||||||
| Adjusted costs applicable to sales per ounce | $ | 11.54 | $ | 12.61 | $ | 12.56 | $ | 5.35 | $ | 12.05 | $ | 761 | $ | 667 | $ | 721 | $ | 12.04 | |||||||||||||||||||||
| Costs applicable to sales per realized ounce | $ | 10.90 | $ | 11.32 | $ | 11.37 | $ | 10.50 | |||||||||||||||||||||||||||||||
| Inventory adjustments | (0.72 | ) | (0.03 | ) | (0.29 | ) | (0.20 | ) | |||||||||||||||||||||||||||||||
| Adjusted costs applicable to sales per realized ounce | $ | 10.18 | $ | 11.29 | $ | 11.08 | $ | 10.30 | |||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 101,555 | |||||||||||||||||||||||||||||||||||||
| Treatment and refining costs | 1,158 | ||||||||||||||||||||||||||||||||||||||
| Sustaining capital | 16,710 | ||||||||||||||||||||||||||||||||||||||
| General and administrative | 8,276 | ||||||||||||||||||||||||||||||||||||||
| Exploration | 1,731 | ||||||||||||||||||||||||||||||||||||||
| Reclamation | 3,759 | ||||||||||||||||||||||||||||||||||||||
| Project/pre-development costs | 1,558 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | $ | 134,747 | |||||||||||||||||||||||||||||||||||||
| Silver equivalent ounces sold | 4,988,752 | ||||||||||||||||||||||||||||||||||||||
| Kensington and Wharf silver equivalent ounces sold | 3,286,200 | ||||||||||||||||||||||||||||||||||||||
| Consolidated silver equivalent ounces sold | 8,274,952 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per silver equivalent ounce | $ | 16.28 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.23 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per silver equivalent ounce | $ | 16.05 | |||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per realized silver equivalent ounce | $ | 13.93 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.20 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per realized silver equivalent ounce | $ | 13.73 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||||||||
| for Three Months Ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
| Silver | Gold | Total | |||||||||||||||||||||||||||||||||||||
| In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | |||||||||||||||||||||||||||||||
| Costs applicable to sales, including amortization (U.S. GAAP) | $ | 47,207 | $ | 27,716 | $ | 24,372 | $ | 2,579 | $ | 101,874 | $ | 33,298 | $ |
25,033 |
$ |
58,331 |
$ |
160,205 |
|||||||||||||||||||||
| Amortization | 7,426 | 4,944 | 4,311 | 1,519 | 18,200 | 9,503 |
7,246 |
16,749 |
34,949 |
||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 39,781 | $ | 22,772 | $ | 20,061 | $ | 1,060 | $ | 83,674 | $ | 23,795 | $ | 17,787 | $ | 41,582 | $ | 125,256 | |||||||||||||||||||||
| Silver equivalent ounces sold | 2,588,185 | 1,820,471 | 1,564,155 | 192,768 | 6,165,579 | 9,885,699 | |||||||||||||||||||||||||||||||||
| Gold equivalent ounces sold | 29,988 | 32,014 | 62,002 | ||||||||||||||||||||||||||||||||||||
| Costs applicable to sales per ounce | $ | 15.37 | $ | 12.51 | $ | 12.83 | $ | 5.50 | $ | 13.57 | $ | 793 | $ | 556 | $ | 671 | $ | 12.67 | |||||||||||||||||||||
| Inventory adjustments | (1.89 | ) | (0.14 | ) | (0.35 | ) | — | (0.92 | ) | (16 | ) | — | (8 | ) | (0.62 | ) | |||||||||||||||||||||||
| Adjusted costs applicable to sales per ounce | $ | 13.48 | $ | 12.37 | $ | 12.48 | $ | 5.50 | $ | 12.65 | $ | 777 | $ | 556 | $ | 663 | $ | 12.05 | |||||||||||||||||||||
| Costs applicable to sales per realized ounce | $ | 13.73 | $ | 11.32 | $ | 12.56 | $ | 10.98 | |||||||||||||||||||||||||||||||
| Inventory adjustments | (1.69 | ) | (0.13 | ) | (0.85 | ) | (0.54 | ) | |||||||||||||||||||||||||||||||
| Adjusted costs applicable to sales per realized ounce | $ | 12.04 | $ | 11.19 | $ | 11.71 | $ | 10.44 | |||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 125,256 | |||||||||||||||||||||||||||||||||||||
| Treatment and refining costs | 964 | ||||||||||||||||||||||||||||||||||||||
| Sustaining capital | 16,567 | ||||||||||||||||||||||||||||||||||||||
| General and administrative | 8,855 | ||||||||||||||||||||||||||||||||||||||
| Exploration | 1,689 | ||||||||||||||||||||||||||||||||||||||
| Reclamation | 4,963 | ||||||||||||||||||||||||||||||||||||||
| Project/pre-development costs | 2,691 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | $ | 160,985 | |||||||||||||||||||||||||||||||||||||
| Silver equivalent ounces sold | 6,165,579 | ||||||||||||||||||||||||||||||||||||||
| Kensington and Wharf silver equivalent ounces sold | 3,720,120 | ||||||||||||||||||||||||||||||||||||||
| Consolidated silver equivalent ounces sold | 9,885,699 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per silver equivalent ounce | $ | 16.28 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.62 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per silver equivalent ounce | $ | 15.66 | |||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per realized silver equivalent ounce | $ | 14.09 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.54 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per realized silver equivalent ounce | $ | 13.55 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||||||||
| for Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||||||||||||||
| Silver | Gold | Total | |||||||||||||||||||||||||||||||||||||
| In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | |||||||||||||||||||||||||||||||
| Costs applicable to sales, including amortization (U.S. GAAP) | $ | 42,710 | $ | 32,167 | $ | 21,009 | $ | 1,384 | $ | 97,270 | $ | 33,472 | $ | 23,419 | $ | 56,891 | $ | 154,161 | |||||||||||||||||||||
| Amortization | 8,617 | 6,731 | 3,526 | 909 | 19,783 | 8,499 | 5,642 | 14,141 | 33,924 | ||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 34,093 | $ | 25,436 | $ | 17,483 | $ | 475 | $ | 77,487 | $ | 24,973 | $ | 17,777 | $ | 42,750 | $ | 120,237 | |||||||||||||||||||||
| Silver equivalent ounces sold | 2,924,947 | 2,116,353 | 1,201,959 | 95,260 | 6,338,519 | 9,512,459 | |||||||||||||||||||||||||||||||||
| Gold equivalent ounces sold | 28,084 | 24,815 | 52,899 | ||||||||||||||||||||||||||||||||||||
| Costs applicable to sales per ounce | $ | 11.66 | $ | 12.02 | $ | 14.55 | $ | 4.99 | $ | 12.22 | $ | 889 | $ | 716 | $ | 808 | $ | 12.64 | |||||||||||||||||||||
| Inventory adjustments | (0.26 | ) | (0.01 | ) | (0.14 | ) | — | (0.15 | ) | (47 | ) | — | (25 | ) | (0.24 | ) | |||||||||||||||||||||||
| Adjusted costs applicable to sales per ounce | $ | 11.40 | $ | 12.01 | $ | 14.41 | $ | 4.99 | $ | 12.07 | $ | 842 | $ | 716 | $ | 783 | $ | 12.40 | |||||||||||||||||||||
| Costs applicable to sales per realized ounce | $ | 10.25 | $ | 10.90 | $ | 11.14 | $ | 10.95 | |||||||||||||||||||||||||||||||
| Inventory adjustments | (0.24 | ) | (0.01 | ) | (0.14 | ) | (0.21 | ) | |||||||||||||||||||||||||||||||
| Adjusted costs applicable to sales per realized ounce | $ | 10.01 | $ | 10.89 | $ | 11.00 | $ | 10.74 | |||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 120,237 | |||||||||||||||||||||||||||||||||||||
| Treatment and refining costs | 820 | ||||||||||||||||||||||||||||||||||||||
| Sustaining capital | 8,565 | ||||||||||||||||||||||||||||||||||||||
| General and administrative | 6,694 | ||||||||||||||||||||||||||||||||||||||
| Exploration | 2,112 | ||||||||||||||||||||||||||||||||||||||
| Reclamation | 4,493 | ||||||||||||||||||||||||||||||||||||||
| Project/pre-development costs | 3,648 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | $ | 146,569 | |||||||||||||||||||||||||||||||||||||
| Silver equivalent ounces sold | 6,338,519 | ||||||||||||||||||||||||||||||||||||||
| Kensington and Wharf silver equivalent ounces sold | 3,173,940 | ||||||||||||||||||||||||||||||||||||||
| Consolidated silver equivalent ounces sold | 9,512,459 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per silver equivalent ounce | $ | 15.41 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.24 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per silver equivalent ounce | $ | 15.17 | |||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per realized silver equivalent ounce | $ | 13.35 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.21 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per realized silver equivalent ounce | $ | 13.14 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||||||||||
| for Three Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||
| Silver | Gold | ||||||||||||||||||||||||||||||||||||||
| San | Total | Total | Total | ||||||||||||||||||||||||||||||||||||
| In thousands except per ounce amounts | Palmarejo | Rochester | Bartolomé | Endeavor | Silver | Kensington | Wharf | Gold | Combined | ||||||||||||||||||||||||||||||
| Costs applicable to sales, including amortization (U.S. GAAP) | $ | 39,158 | $ | 29,779 | $ | 24,428 | $ | 3,204 | $ | 96,569 | $ | 40,136 | $ | 20,123 | $ | 60,259 | $ | 156,828 | |||||||||||||||||||||
| Amortization | 9,046 | 5,387 | 5,271 | 1,852 | 21,556 | 12,684 | 3,491 | 16,175 | 37,731 | ||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 30,112 | $ | 24,392 | $ | 19,157 | $ | 1,352 | $ | 75,013 | $ | 27,452 | $ | 16,632 | $ | 44,084 | $ | 119,097 | |||||||||||||||||||||
| Silver equivalent ounces sold | 2,169,960 | 2,024,856 | 1,439,388 | 209,130 | 5,843,334 | 9,067,614 | |||||||||||||||||||||||||||||||||
| Gold equivalent ounces sold | 36,607 | 17,131 | 53,738 | ||||||||||||||||||||||||||||||||||||
| Costs applicable to sales per ounce | $ | 13.88 | $ | 12.05 | $ | 13.31 | $ | 6.46 | $ | 12.84 | $ | 750 | $ | 971 | $ | 820 | $ | 13.13 | |||||||||||||||||||||
| Inventory adjustments | (0.67 | ) | (0.04 | ) | (0.05 | ) | — | (0.28 | ) | (5 | ) | (1 | ) | (4 | ) | (0.20 | ) | ||||||||||||||||||||||
| Adjusted costs applicable to sales per ounce | $ | 13.21 | $ | 12.01 | $ | 13.26 | $ | 6.46 | $ | 12.56 | $ | 745 | $ | 970 | $ | 816 | $ | 12.93 | |||||||||||||||||||||
| Costs applicable to sales per realized ounce | $ | 12.68 | 10.98 | 12.01 | $ | 11.72 | |||||||||||||||||||||||||||||||||
| Inventory adjustments | (0.61 | ) | (0.04 | ) | (0.26 | ) | (0.18 | ) | |||||||||||||||||||||||||||||||
| Adjusted costs applicable to sales per realized ounce | $ | 12.07 | $ | 10.94 | $ | 11.75 | $ | 11.54 | |||||||||||||||||||||||||||||||
| Costs applicable to sales | $ | 119,097 | |||||||||||||||||||||||||||||||||||||
| Treatment and refining costs | 1,526 | ||||||||||||||||||||||||||||||||||||||
| Sustaining capital | 13,625 | ||||||||||||||||||||||||||||||||||||||
| General and administrative | 8,451 | ||||||||||||||||||||||||||||||||||||||
| Exploration | 3,579 | ||||||||||||||||||||||||||||||||||||||
| Reclamation | 4,036 | ||||||||||||||||||||||||||||||||||||||
| Project/pre-development costs | 2,030 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | $ | 152,344 | |||||||||||||||||||||||||||||||||||||
| Silver equivalent ounces sold | 5,843,334 | ||||||||||||||||||||||||||||||||||||||
| Kensington and Wharf silver equivalent ounces sold | 3,224,280 | ||||||||||||||||||||||||||||||||||||||
| Consolidated silver equivalent ounces sold | 9,067,614 | ||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per silver equivalent ounce | $ | 16.80 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.20 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per silver equivalent ounce | $ | 16.60 | |||||||||||||||||||||||||||||||||||||
| All-in sustaining costs per realized silver equivalent ounce | $ | 14.99 | |||||||||||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.18 | ) | ||||||||||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per realized silver equivalent ounce | $ | 14.81 | |||||||||||||||||||||||||||||||||||||
| Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce | |||||||||||||||||||||||||||||||
| for Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||
| Silver | Gold | ||||||||||||||||||||||||||||||
| San | |||||||||||||||||||||||||||||||
| In thousands except per ounce amounts | Palmarejo | Rochester | Bartolomé | Endeavor | Total | Kensington | Total | ||||||||||||||||||||||||
| Costs applicable to sales, including amortization (U.S. GAAP) | $ | 41,824 | $ | 38,235 | $ | 23,818 | $ | 1,892 | $ | 105,769 | $ | 40,973 | $ | 146,742 | |||||||||||||||||
| Amortization | 7,333 | 6,843 | 4,691 | 1,259 | 20,126 | 11,554 | 31,680 | ||||||||||||||||||||||||
| Costs applicable to sales | $ | 34,491 | $ | 31,392 | $ | 19,127 | $ | 633 | $ | 85,643 | $ | 29,419 | $ | 115,062 | |||||||||||||||||
| Silver equivalent ounces sold | 2,157,612 | 2,416,103 | 1,289,867 | 117,863 | 5,981,445 | 8,193,825 | |||||||||||||||||||||||||
| Gold ounces sold | 36,873 | ||||||||||||||||||||||||||||||
| Costs applicable to sales per ounce | $ | 15.99 | $ | 12.99 | $ | 14.83 | $ | 5.37 | $ | 14.32 | $ | 798 | $ | 14.04 | |||||||||||||||||
| Inventory adjustments | (1.43 | ) | (0.04 | ) | (0.36 | ) | — | (0.61 | ) | (1 | ) | (0.45 | ) | ||||||||||||||||||
| Adjusted costs applicable to sales per ounce | $ | 14.56 | $ | 12.95 | $ | 14.47 | $ | 5.37 | $ | 13.71 | $ | 797 | $ | 13.59 | |||||||||||||||||
| Costs applicable to sales per realized ounce | $ | 14.85 | $ | 11.94 | $ | 13.47 | $ | 12.76 | |||||||||||||||||||||||
| Inventory adjustments | (1.33 | ) | (0.03 | ) | (0.57 | ) | (0.41 | ) | |||||||||||||||||||||||
| Adjusted costs applicable to sales per realized ounce | $ | 13.52 | $ | 11.91 | $ | 12.90 | $ | 12.35 | |||||||||||||||||||||||
| Costs applicable to sales | $ | 115,062 | |||||||||||||||||||||||||||||
| Treatment and refining costs | 1,490 | ||||||||||||||||||||||||||||||
| Sustaining capital | 10,909 | ||||||||||||||||||||||||||||||
| General and administrative | 8,834 | ||||||||||||||||||||||||||||||
| Exploration | 4,266 | ||||||||||||||||||||||||||||||
| Reclamation | 2,924 | ||||||||||||||||||||||||||||||
| Project/pre-development costs | 4,873 | ||||||||||||||||||||||||||||||
| All-in sustaining costs | $ | 148,358 | |||||||||||||||||||||||||||||
| Silver equivalent ounces sold | 5,981,445 | ||||||||||||||||||||||||||||||
| Kensington silver equivalent ounces sold | 2,212,380 | ||||||||||||||||||||||||||||||
| Consolidated silver equivalent ounces sold | 8,193,825 | ||||||||||||||||||||||||||||||
| All-in sustaining costs per silver equivalent ounce | $ | 18.11 | |||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.45 | ) | ||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per silver equivalent ounce | $ | 17.66 | |||||||||||||||||||||||||||||
| All-in sustaining costs per realized silver equivalent ounce | $ | 16.46 | |||||||||||||||||||||||||||||
| Inventory adjustments | $ | (0.41 | ) | ||||||||||||||||||||||||||||
| Adjusted all-in sustaining costs per realized silver equivalent ounce | $ | 16.05 | |||||||||||||||||||||||||||||
