Release – Bunker Hill Achieves U.S. Market Upgrade to OTCQB


Bunker Hill Achieves U.S. Market Upgrade to OTCQB

 

TORONTO, July 29, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to announce approval of its application for an upgrade to the OTCQB® Venture Market (the “OTCQB”). Bunker Hill Mining will commence trading on the OTCQB at market open on July 30, 2021, remaining under the symbol “BHLL”. Previously, the Company’s U.S. share trading was on OTC Pink, commonly referred to as the “pink sheets”.

Key benefits of the OTCQB market for investors include greater visibility and trading access within the investment community, enhanced information availability to inform trading decisions, blue sky exemptions for brokers, and higher disclosure and financial standards. The OTCQB market also aligns the Company better with its peers.

Sam Ash CEO stated, “As the next step in increasing our trading liquidity and enhancing our capital markets profile, we are very pleased to report our elevation to the OTCQB. This will increase trading access for our U.S. investors, and also serves as recognition of our enhanced governance and reporting standards.”

UPCOMING EVENTS

HCW Investment Conference

September 13-15, 2021

Join Us: REGISTER NOW

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com , or under its profile on SEDAR and EDGAR.

For additional information contact: ir @bunkerhillmining.com

Cautionary Statements

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to: the potential increase in trading liquidity, the approval of the Company’s application for an upgrade to the OTCQB, and the Company’s intentions regarding its objectives, goals or future plans and statements, including the restart of the Bunker Hill Mine. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to those risks set out in the Company’s public documents filed on SEDAR and EDGAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Comstock Mining (LODE) – Comstock Enters the Industrial Hemp Products Business

Friday, July 30, 2021

Comstock Mining (LODE)
Comstock Enters the Industrial Hemp Products Business

Comstock Mining Inc. is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Acquires 50% of LP Biosciences LLC. Comstock acquired 50% of the equity of Lakeview Energy LLC’s subsidiary, LP Biosciences LLC (LPB), and agreed to provide the financing needed to retrofit LPB’s industrial scale solvent extraction and valorization facility in Merrill, Iowa to produce wholesale products from up to 200 thousand pounds per day of industrial hemp. Comstock issued 3,500,000 restricted shares of its common stock to LPB. Comstock also acquired 100% of MANA Corporation (MANA), an industrial hemp technology, development, marketing, and management company for 4,200,000 restricted shares of Comstock.

    Strength through collaboration.  Agreements between Comstock, MANA and Lakeview call for Lakeview to provide construction, operating, administrative, logistics, commodities, and risk management services to LPB as they retrofit, operate, and expand capacity of the LPB facility. MANA has agreed to provide technology and marketing services with a focus on acquiring and using existing and new feedstock …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Bunker Hill Achieves U.S. Market Upgrade to OTCQB


Bunker Hill Achieves U.S. Market Upgrade to OTCQB

 

TORONTO, July 29, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to announce approval of its application for an upgrade to the OTCQB® Venture Market (the “OTCQB”). Bunker Hill Mining will commence trading on the OTCQB at market open on July 30, 2021, remaining under the symbol “BHLL”. Previously, the Company’s U.S. share trading was on OTC Pink, commonly referred to as the “pink sheets”.

Key benefits of the OTCQB market for investors include greater visibility and trading access within the investment community, enhanced information availability to inform trading decisions, blue sky exemptions for brokers, and higher disclosure and financial standards. The OTCQB market also aligns the Company better with its peers.

Sam Ash CEO stated, “As the next step in increasing our trading liquidity and enhancing our capital markets profile, we are very pleased to report our elevation to the OTCQB. This will increase trading access for our U.S. investors, and also serves as recognition of our enhanced governance and reporting standards.”

UPCOMING EVENTS

HCW Investment Conference

September 13-15, 2021

Join Us: REGISTER NOW

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com , or under its profile on SEDAR and EDGAR.

For additional information contact: ir @bunkerhillmining.com

Cautionary Statements

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to: the potential increase in trading liquidity, the approval of the Company’s application for an upgrade to the OTCQB, and the Company’s intentions regarding its objectives, goals or future plans and statements, including the restart of the Bunker Hill Mine. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to those risks set out in the Company’s public documents filed on SEDAR and EDGAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Coeur Mining (CDE) – Under Construction

Friday, July 30, 2021

Coeur Mining (CDE)
Under Construction

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Second quarter 2021 financial results. Coeur reported a second quarter adjusted loss of $840 thousand, or ($0.00) per share, compared with earnings of $2.6 million, or $0.01 per share during the prior year period. Adjusted EBITDA were $52.7 million versus $42.2 million during the second quarter of 2020. We had forecast earnings of $11.7 million, or $0.09 per share, and EBITDA of $68.5 million. Including $39.8 million of fair value adjustments such as unrealized mark-to-market gains on Coeur’s investment in Victoria Gold, unadjusted EPS and EBITDA were $0.13 and $84.6 million. Free cash flow amounted to $(20.2) million.

    Updating estimates.  We have lowered our 2021 EPS and EBITDA estimates to $0.21 and $249.0 million from $0.35 and $280.9 million. While our production estimates are unchanged, our revised estimates incorporate second quarter earnings and the company’s updated guidance with respect to certain expenses. We forecast 2022 EPS and EBITDA of $0.35 and $279.2 million, respectively …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Comstock Forms Joint Venture with Lakeview Energy


Comstock Forms Joint Venture with Lakeview Energy

 

Acquires 50% Stake in 200,000 Pound Per Day Hemp Extraction, Remediation, and Refinement Facility

VIRGINIA CITY, NEVADA, July 29, 2021 – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced the execution of a series of agreements with Lakeview Energy LLC (“Lakeview”) and its subsidiaries, pursuant to which the Company acquired 50% of the equity of Lakeview’s subsidiary, LP Biosciences LLC (“LPB”), and agreed to provide the financing needed to retrofit LPB’s pre-existing industrial scale solvent extraction and valorization facility in Merrill, Iowa (“LPB Facility”), for the production of an array of wholesale products from up to 200,000 pounds per day of industrial hemp. Comstock issued 3,500,000 restricted shares of its common stock to LPB in connection with its acquisition and financing commitments, and simultaneously acquired 100% of MANA Corporation (“MANA”), an industrial hemp technology development, marketing, and management company, for 4,200,000 restricted shares of Comstock common stock.

Industrial Scale Infrastructure

Industrial hemp is an extraordinary natural resource with tens of thousands of known applications, including food, feed, fuel, and fiber, and an array of emerging applications in batteries, bioplastics, and other renewable alternatives to fossil fuel derived products. However, hemp’s ability to produce over 400 natural phytochemicals, such as cannabidiol (“CBD”) and cannabigerol (“CBG”), has recently garnered significant attention as some of those chemicals are seen to have compelling potential in health and wellness applications. The corresponding green rush propelled global demand and sales of industrial hemp products to an estimated $1.9 billion as of 2020, and the industry is expected to grow to $6.9 billion worldwide by 2025, according to Hemp Industry Daily.

“The processing infrastructure needed to achieve those aspirations does not exist today at the scales and sophistication expected of mature supply chains for comparable commodities,” said MANA’s Chief Executive Officer, William McCarthy. “The absence of large scale capacity represents the hemp industry’s most significant bottleneck today. MANA is addressing that deficiency by acquiring and partnering with experienced agriproducts management teams and pre-existing industrial scale facilities in adjacent agricultural markets. We are excited to do so today with Comstock, Lakeview, and the LPB Facility, and we’re looking forward to making a market leading contribution to the debottlenecking and evolution of the industry.”

Mature Agriproducts Management

Lakeview is an experienced agriproducts management company that owns and operates three renewable fuels facilities, including two 55 million gallon dry mill corn ethanol facilities located in Ohio and Iowa, and a 10 million gallon per year biodiesel production facility located in Missouri. Importantly, LPB’s LPB Facility is ideally co-located with Lakeview’s ethanol facility in Iowa, where the two facilities can exploit operational and other synergies to maximize throughput, profitability, and cash flow. Comstock’s and MANA’s agreements with Lakeview call for Lakeview to provide construction, operating, administrative, logistics, commodities, risk management and other services to LPB as the parties work together to build, operate and grow the LPB Facility. MANA additionally agreed to provide a suite of complimentary technology, marketing and other management services, with a focus on acquiring and using pre-existing and new feedstock and offtake arrangements to fill the LPB Facility.

“Industrial hemp has remarkable potential in several important respects, including its potential for new jobs and stimulating economic, environmental and social value creation in our community,” said Jim Galvin, Lakeview’s Chief Executive Officer. “We’re pleased to partner with Comstock and MANA as we upgrade and use the LPB Facility to provide comprehensive hemp extraction, remediation, and refinement services at scales that are currently unheard of in the hemp industry.”

Industry Leading Scale, Quality, Compliance, and Flexibility

Comstock’s Executive Chairman and Chief Executive Officer, Corrado DeGasperis, added: “We are proud to have assembled a world class asset with a team of industry veterans, process engineers, and partners to rapidly retrofit and commence operations with the LPB Facility, thereby setting a global standard for quality, compliance, consistency, flexibility and speed at an extraordinary scale. Once retrofits are complete in mid-2022, the LPB Facility will generate significant free cash flow by servicing the most astute, demanding, and rapidly growing buyers of wholesale hemp products with custom tailored solutions.”

The LPB Facility is conservatively expected to scale up to its initial nameplate capacity exceeding 200,000 pounds per day and 36,500 tons per year of industrial hemp over its first three years of operations, as it extracts, remediates, and refines oil from industrial hemp to generate annualized revenues exceeding $53,000,000, $154,000,000, and $409,000,000 per year during LPB’s first, second, and third full years of operations, respectively, as shown in the following excerpt from LPB’s internal projections:

Ecosystem of Strategic Feedstocks, Processes and Products

DeGasperis concluded: “Comstock is focused on the rapid and simultaneous maximization of financial, natural, and social impact, in large part by building an ecosystem of strategic extraction and valorization facilities with complimentary feedstocks and products. In this example, the LPB Facility’s revenue estimates are based only on the oil fraction of industrial hemp, which corresponds to a small portion of total feedstock biomass. The rest of that biomass is mostly comprised of cellulose with many known co-product applications, as well as some very exciting new applications that we are actively evaluating for use in our existing and planned new decarbonization efforts.”

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future operating margins; available resources; environmental conservation outcomes; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact Information    
Comstock Mining Inc.

P.O. Box 1118

Virginia City, NV 89440

www.comstockmining.com

Corrado De Gasperis

Executive Chairman & CEO

Tel (775) 847-4755

degasperis@comstockmining.com

Zach Spencer

Director of External Relations

Tel (775) 847-5272 Ext.151

questions@comstockmining.com

Release – Coeur Reports Second Quarter 2021 Results


Coeur Reports Second Quarter 2021 Results

 

Reaffirms Production Guidance; Updates Cost and Capital Expenditure Guidance

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported second quarter 2021 financial results, including revenue of $214.9 million, cash flow from operating activities of $58.1 million and GAAP net income from continuing operations of $32.1 million, or $0.13 per share. On an adjusted basis1, the Company reported EBITDA of $52.7 million, cash flow from operating activities before changes in working capital of $31.4 million and net loss from continuing operations of $0.8 million, or $0.00 per share.

Key Highlights

  • Quarterly revenue and cash flow growth – Revenue increased 6% quarter-over-quarter and 39% year-over-year due to higher gold and silver ounces sold and a higher average realized silver price. Operating cash flow improved by $62.4 million quarter-over-quarter and $48.1 million year-over-year to $58.1 million
  • Higher quarterly production and stronger expected second half – Gold production increased 2% quarter-over-quarter to 87,275 ounces led by a 27% improvement at Wharf, while silver production of 2.6 million ounces was 8% higher largely due to a 15% increase at Rochester. Year-over-year, gold and silver production increased 12% and 60%, respectively, driven by increases at Palmarejo and Rochester. Production levels are expected to continue climbing in the second half of the year and be within the Company’s full-year guidance of 322,500 – 367,500 ounces of gold and 9.7 – 12.2 million ounces of silver
  • New quarterly drilling record from largest exploration campaign in Company history – A new quarterly record was achieved during the period with the completion of approximately 320,400 feet (97,675 meters) of drilling and 27 currently active drill rigs. Investment in exploration totaled approximately $18.6 million ($12.4 million expensed and $6.2 million capitalized) in the quarter with significant increases in drilling activity at Palmarejo and Rochester as well as the Crown district in southern Nevada
  • Rochester expansion progressing according to schedule – Coeur advanced major construction on the Plan of Operations Amendment 11 (“POA 11”) expansion at Rochester on schedule, with solid ongoing environmental and safety performance. Placement of over-liner material on the new Stage VI leach pad commenced approximately six weeks ahead of schedule, and concrete foundation work for the Merrill-Crowe process plant and crusher corridor is scheduled to begin in the third quarter. Overall project progress was approximately 31% complete at the end of the second quarter
  • Accelerating investment at Silvertip based on positive results – The Company is increasing its investment at Silvertip during the second half of 2021 to complete several surface projects to support a potential restart of active mining and processing activities in 2023
  • Strategic investment in Victoria – Coeur acquired a 17.8% ownership interest in Victoria Gold Corp. (“Victoria”) during the second quarter for consideration of approximately $118.8 million. Victoria owns and operates the new open pit, heap leach Eagle gold mine located in central Yukon Territory, Canada. The investment is consistent with the Company’s strategy and complements its existing portfolio of gold and silver assets located in high-quality jurisdictions

“Second quarter revenue and cash flow increased quarter-over-quarter and year-over-year, primarily due to stronger silver production from our Palmarejo and Rochester operations as well as higher average realized silver prices,” said Mitchell J. Krebs, President and Chief Executive Officer. “We anticipate production to continue increasing during the second half of 2021, particularly from our Wharf and Rochester operations, and expect to achieve our full-year production guidance for both gold and silver. We also accelerated investment on the POA 11 expansion project at Rochester during the quarter. Construction is advancing on schedule and is expected to be largely completed late next year, leading to an anticipated step change in production and cash flow despite seeing some early signs of inflationary pressures in certain areas.”

Mr. Krebs continued, “Similarly, we continued to increase our investment in exploration and established a new quarterly drilling record, which is leading to additional positive results from the largest campaign in Company history. A third source of high-return organic growth is the potential expansion and restart of our Silvertip mine in northern British Columbia. We are accelerating investment at Silvertip to take advantage of the current construction season based on positive results from our exploration and technical programs to preserve the option of a potential restart in 2023. Finally, we further bolstered our portfolio by acquiring a 17.8% interest in Victoria, which aligns with our strategy of having a balanced collection of long-life, low-cost precious metals assets in high-quality jurisdictions that can generate strong returns for our stockholders.”

“Collectively, these initiatives reflect our strategy of discovering, developing and operating a balanced, multi-asset portfolio of precious metals assets located in high-quality jurisdictions to maximize free cash flow, returns and net asset value. Together with a flexible balance sheet and industry-leading environmental, social and governance practices, we believe we are well positioned to deliver solid results and generate meaningful value for our stockholders,” concluded Mr. Krebs.

Financial and Operating Highlights (Unaudited)

(Amounts in millions, except per share amounts, gold/silver ounces produced & sold, and per-ounce metrics)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

 

Gold Sales

$

146.2

 

 

$

138.3

 

 

$

162.0

 

$

167.1

 

$

127.9

 

 

Silver Sales

$

68.7

 

 

$

63.8

 

 

$

66.4

 

$

62.6

 

$

26.3

 

 

Consolidated Revenue

$

214.9

 

 

$

202.1

 

 

$

228.3

 

$

229.7

 

$

154.2

 

 

Costs Applicable to Sales2

$

132.6

 

 

$

108.1

 

 

$

118.6

 

$

112.8

 

$

90.0

 

 

General and Administrative Expenses

$

10.5

 

 

$

11.6

 

 

$

8.4

 

$

7.8

 

$

8.6

 

 

Net Income (Loss)

$

32.1

 

 

$

2.1

 

 

$

11.9

 

$

26.9

 

$

(1.2

)

 

Net Income (Loss) Per Share

$

0.13

 

 

$

0.01

 

 

$

0.05

 

$

0.11

 

$

(0.01

)

 

Adjusted Net Income (Loss)1

$

(0.8

)

 

$

13.9

 

 

$

19.1

 

$

38.2

 

$

2.6

 

 

Adjusted Net Income (Loss)Per Share

$

0.00

 

 

$

0.06

 

 

$

0.08

 

$

0.16

 

$

0.01

 

 

Weighted Average Shares Outstanding

252.1

 

 

244.5

 

 

244.3

 

243.8

 

240.9

 

 

EBITDA1

$

84.6

 

 

$

49.7

 

 

$

76.7

 

$

77.3

 

$

35.3

 

 

Adjusted EBITDA1

$

52.7

 

 

$

65.9

 

 

$

84.0

 

$

90.8

 

$

42.2

 

 

Cash Flow from Operating Activities

$

58.1

 

 

$

(4.4

)

 

$

67.3

 

$

79.5

 

$

9.9

 

 

Capital Expenditures

$

78.2

 

 

$

59.4

 

 

$

37.4

 

$

23.0

 

$

16.7

 

 

Free Cash Flow1

$

(20.2

)

 

$

(63.8

)

 

$

29.8

 

$

56.5

 

$

(6.7

)

 

Cash, Equivalents & Short-Term Investments

$

124.1

 

 

$

154.1

 

 

$

92.8

 

$

77.1

 

$

70.9

 

 

Total Debt3

$

414.2

 

 

$

412.1

 

 

$

275.5

 

$

301.1

 

$

348.6

 

 

Average Realized Price Per Ounce – Gold

$

1,651

 

 

$

1,664

 

 

$

1,663

 

$

1,754

 

$

1,641

 

 

Average Realized Price Per Ounce – Silver

$

26.60

 

 

$

26.19

 

 

$

24.21

 

$

24.15

 

$

16.25

 

 

Gold Ounces Produced

87,275

 

 

85,225

 

 

96,377

 

95,995

 

78,229

 

 

Silver Ounces Produced

2.6

 

 

2.4

 

 

2.8

 

2.6

 

1.6

 

 

Gold Ounces Sold

88,501

 

 

83,112

 

 

97,400

 

95,283

 

77,933

 

 

Silver Ounces Sold

2.6

 

 

2.4

 

 

2.7

 

2.6

 

1.6

 

 

Financial Results

Second quarter 2021 revenue totaled $214.9 million compared to $202.1 million in the prior period and $154.2 million in the second quarter of 2020. The Company produced 87,275 and 2.6 million ounces of gold and silver, respectively, during the quarter. Metal sales totaled 88,501 ounces of gold and 2.6 million ounces of silver.

Average realized gold and silver prices for the quarter were $1,651 and $26.60 per ounce, respectively, compared to $1,664 and $26.19 per ounce in the prior period. Gold and silver sales accounted for 68% and 32% of quarterly revenue, respectively. The Company’s U.S. operations accounted for approximately 60% of second quarter revenue, consistent with the prior period.

Costs applicable to sales2 increased to $132.6 million, largely due to higher throughput rates, an increase in maintenance costs, higher consumable costs and a non-cash inventory charge at Rochester.

General and administrative expenses for the quarter totaled $10.5 million compared to $11.6 million in the prior period, reflecting lower employee-related expenses. Full-year general and administrative expenses are expected to be slightly higher at $40 – $45 million (previous guidance of $37 – $41 million) largely driven by increased accruals for previously-granted long-term performance share awards.

Coeur invested approximately $18.6 million ($12.4 million expensed and $6.2 million capitalized) in exploration during the quarter, compared to roughly $14.9 million ($9.7 million expensed and $5.2 million capitalized) in the prior period, reflecting an increase in drilling activity across most sites. Notably, the Company completed approximately 320,400 feet (97,675 meters) of expansion and infill drilling during the period, establishing a new Company record. See the “Operations” and “Exploration” sections for additional detail on the Company’s exploration activities.

Operating costs related to COVID-19 mitigation and response efforts totaled $2.3 million during the second quarter, compared to $3.0 million in the prior period. These costs were primarily driven by employee-related expenses at Kensington and Palmarejo, and are included in “Pre-development, reclamation, and other expenses” on the Company’s income statement. Coeur continues to implement and maintain rigorous health and safety protocols across its operations and in surrounding communities aimed at limiting the exposure and transmission of COVID-19 while minimizing business interruptions.

The Company recorded an income tax expense of $15.3 million during the second quarter. Cash income and mining taxes paid during the period totaled approximately $12.4 million.

Quarterly operating cash flow totaled $58.1 million compared to $(4.4) million in the prior period, largely driven by higher metal sales and favorable changes in working capital. Changes in working capital during the quarter were $26.6 million, compared to $(45.9) million in the prior period.

Capital expenditures during the second quarter were $78.2 million compared to $59.4 million in the prior period, primarily driven by increased investment at Rochester and Silvertip. Investment related to the POA 11 expansion project at Rochester totaled $33.2 million during the quarter, compared to $28.1 million in the first quarter. Sustaining and development capital expenditures accounted for approximately 38% and 62%, respectively, of the Company’s total capital investment during the quarter.

The Company satisfied the remaining $7.1 million obligation under its prepayment agreement at Kensington and exercised an option to receive an additional $15.0 million prepayment, resulting in a net cash inflow of approximately $7.9 million in the second quarter. Coeur expects the $15.0 million cash outflow under the arrangement to occur over the next two quarters.

Strategic Investment in Victoria

During the second quarter, Coeur entered into an agreement to acquire roughly 11.1 million outstanding common shares of Victoria (approximately 17.8% of issued and outstanding shares on an undiluted basis at time of transaction) from Orion Co-VI Ltd. (“Orion”) at a price of C$13.20 per share, reflecting a 5% discount to the trailing 30-day volume weighted price for the period ended May 7, 2021.

In connection with the transaction, Orion received roughly 12.8 million shares of Coeur common stock (approximately 4.9% of issued and outstanding shares on an undiluted basis at time of transaction), based on the trailing 30-day volume weighted price of $9.17 per share, for the period ended May 7, 2021. The transaction was completed on May 14, 2021 for consideration of approximately $118.8 million. The value of Victoria’s shares held by Coeur totaled approximately $164.7 million as of June 30, 2021.

Liquidity Update

Maintaining balance sheet flexibility remains a key element of Coeur’s strategy. The Company ended the second quarter with total liquidity of approximately $389.1 million, including $124.1 million of cash and no borrowings under its $300.0 million revolving credit facility (“RCF”)4. Additionally, the aggregate borrowing capacity under its RCF may be increased by up to $100.0 million.

As of June 30, 2021, the Company also had $174.4 million of strategic investments in equity securities and the full $100.0 million available under its at-the-market common stock offering program it established in April 2020.

Hedging Update

During the second quarter, the Company added to its hedge position by executing additional zero-cost collar hedges on 6,000 ounces of its expected 2022 gold production. Coeur previously completed its gold hedging program for 2021 and continues to proactively monitor market conditions to potentially layer in additional hedges on up to 50% of expected gold production in 2022. The Company’s silver price exposure remains unhedged. An overview of the hedges currently implemented is outlined below:

 

2021

2022

Gold Ounces Hedged

79,350

132,000

Avg. Ceiling ($/oz)

$1,882

$2,038

Avg. Floor ($/oz)

$1,600

$1,630

Rochester Expansion

The Company continued to execute major construction activities on the POA 11 expansion project at Rochester during the second quarter, with overall progress approximately 31% complete at the end of the period. Key elements of the project timeline remain on schedule and are highlighted below:

 

Expected Start Date

Target Completion Date

Leach Pad (Incl. Ancillary Facilities)

2H 2020 ?

Mid-2022

Merrill-Crowe Process Plant

1H 2021 ?

YE 2022

Crushing Circuit

1H 2021 ?

YE 2022

Supporting Infrastructure

2H 2020 ?

Mid-2022

Coeur began placing over-liner material on the Stage VI leach pad approximately six weeks ahead of schedule following the successful swap-out of the secondary crushing unit. The Company also mobilized a cement batch plant, began construction of a new high-voltage power line and started executing electrical substation upgrades during the period. Concrete foundation work for the Merrill-Crowe process plant and crusher corridor is expected to commence during the third quarter. Additionally, structural steel erection for the crusher corridor is expected to begin in early 2022.

As of June 30, 2021, the Company has committed approximately $334 million of capital since the inception of the expansion project in the third quarter of 2020, including 76 executed contracts valued at approximately $309 million. There are six packages yet to be awarded, including two structural, mechanical, piping, electrical and instrumentation construction contracts for the Merrill-Crowe process plant and crushing circuit, respectively. The Company has begun to see signs of inflationary pressures on recent bids received for the remaining uncommitted contracts related to building materials, fuel and overall tightness in the construction market.

Additionally, Coeur has elected to allocate approximately $20 million of additional capital investment to further enhance the project’s economics and de-risk the execution of the project. The majority of this incremental capital is expected to be incurred in 2022.

The Company is also reviewing additional optimization opportunities based on key learnings from HPGR-placed material onto the current Stage IV leach pad since late 2019. The results from this work are expected to be available during the second half of 2021.

Coeur secured a capital lease package for nearly $60 million during the quarter, higher than its original target of $50 million. The package is earmarked for planned equipment purchases for the project in 2021 and 2022, and has an interest rate of 5.20%.

Operations

Second quarter 2021 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Tons milled

517,373

484,390

509,848

492,474

269,641

Average gold grade (oz/t)

0.058

0.062

0.076

0.065

0.066

Average silver grade (oz/t)

3.94

4.07

4.30

4.37

4.46

Average recovery rate – Au

92.4%

95.7%

88.9%

91.3%

86.0%

Average recovery rate – Ag

81.9%

81.3%

81.3%

82.8%

72.2%

Gold ounces produced

27,595

28,605

34,511

29,296

15,223

Silver ounces produced (000’s)

1,667

1,603

1,783

1,784

867

Gold ounces sold

30,516

25,687

35,359

27,252

16,924

Silver ounces sold (000’s)

1,640

1,638

1,767

1,765

875

Average realized price per gold ounce

$1,351

$1,462

$1,395

$1,446

$1,399

Average realized price per silver ounce

$26.71

$26.12

$24.45

$23.98

$16.35

Metal sales

$85.0

$80.3

$92.5

$81.8

$38.0

Costs applicable to sales2

$41.9

$34.0

$36.1

$34.3

$18.8

Adjusted CAS per AuOz1

$662

$621

$542

$602

$686

Adjusted CAS per AgOz1

$13.34

$10.98

$9.61

$10.06

$8.13

Exploration expense

$1.8

$1.7

$2.6

$2.0

$0.9

Cash flow from operating activities

$33.4

$13.2

$43.2

$49.7

$(3.5)

Sustaining capital expenditures (excludes capital lease payments)

$9.8

$10.0

$9.0

$4.9

$4.5

Development capital expenditures

$—

$—

$(0.1)

$0.1

$—

Total capital expenditures

$9.8

$10.0

$8.9

$5.0

$4.5

Free cash flow1

$23.6

$3.2

$34.3

$44.7

$(8.0)

Operational

  • Second quarter gold and silver production totaled 27,595 and 1.7 million ounces, respectively, compared to 28,605 and 1.6 million ounces in the prior period. Gold and silver production in the second quarter of 2020 totaled 15,223 and 0.9 million ounces, respectively, reflecting a temporary suspension to comply with a COVID-19-related government decree
  • Production during the quarter benefited from a 7% increase in mill throughput driven by a re-sequencing of the mine plan due to geotechnically-challenging conditions encountered during the first half of the year, partially offset by lower average gold and silver grades

Financial

  • Second quarter adjusted CAS1 for gold and silver on a co-product basis increased 7% and 21% to $662 and $13.34 per ounce, respectively, compared to the prior quarter, largely driven by slightly lower average grades, higher mining rates, underground rehabilitation activities, and comparatively higher gold sales under Palmarejo’s gold stream agreement, which impacted the allocation of costs on a co-product basis
  • Capital expenditures remained relatively consistent quarter-over-quarter at $9.8 million, reflecting continued investment in business improvement projects, underground development and infill drilling
  • Free cash flow1 in the second quarter totaled $23.6 million compared to $3.2 million in the prior period, largely driven by the payment of cash income and mining taxes in the first quarter

Exploration

  • Exploration investment for the second quarter totaled approximately $3.6 million ($1.8 million expensed and $1.8 million capitalized), compared to roughly $3.0 million ($1.7 million expensed and $1.3 million capitalized) in the prior period
  • Up to eight surface and underground core rigs were active during the quarter. A total of approximately 71,200 feet (21,675 meters) were drilled during the period, including 22,900 feet (6,975 meters) of expansion and 48,300 feet (14,700 meters) of infill drilling
  • Infill drilling focused on specific zones within the Independencia and Guadalupe deposits. Surface rigs targeted areas of the Hidalgo and La Patria zones (located within the Independencia and Guadalupe deposits, respectively) as well as the northern portion of the Independencia zone, while underground rigs focused on the southern portion of the Independencia zone
  • Expansion drilling during the quarter focused on the Hidalgo and El Ojito (located in the northeastern portion of the Independencia deposit) zones
  • Expansion and greenfield target generation is anticipated to continue moving north, northwest and east from the Independencia and Guadalupe deposits while infill drilling is expected to continue on the La Patria, North Independencia, Hidalgo and La Bavisa zones
  • In parallel, a new initiative to evaluate, target and drill the Guazapares district (located east of the Palmarejo district and outside of the gold stream area of influence) was launched with the expectation of drilling to begin in the second half of the year
  • Coeur plans for nine drill rigs to be active at Palmarejo in the third quarter and expects to maintain that pace for the remainder of the year

Other

  • Approximately 46% (14,097 ounces) of Palmarejo’s gold sales in the second quarter were sold under its gold stream agreement at a price of $800 per ounce. The Company anticipates approximately 40% – 45% of Palmarejo’s gold sales for 2021 will be sold under the stream agreement

Guidance

  • Full-year 2021 production is expected to be 100,000 – 110,000 ounces of gold and 6.5 – 7.8 million ounces of silver
  • CAS1 are expected to be $635 – $735 per gold ounce (previously $710 – $810 per ounce) and $11.75 – $12.75 per silver ounce (previously $11.00 – $12.00 per ounce). The revised figures largely reflect an anticipated change in the allocation of costs on a co-product basis
  • Capital expenditures are expected to be approximately $40 – $45 million

Rochester, Nevada

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Ore tons placed

3,195,777

3,240,917

4,000,889

4,523,767

3,743,331

Average silver grade (oz/t)

0.38

0.45

0.53

0.49

0.51

Average gold grade (oz/t)

0.003

0.003

0.002

0.002

0.002

Silver ounces produced (000’s)

888

774

1,020

740

728

Gold ounces produced

7,232

6,904

9,590

6,462

5,159

Silver ounces sold (000’s)

912

771

912

786

724

Gold ounces sold

7,818

6,934

8,672

6,834

5,278

Average realized price per silver ounce

$26.38

$26.34

$24.35

$24.49

$16.11

Average realized price per gold ounce

$1,794

$1,794

$1,825

$1,882

$1,702

Metal sales

$38.1

$32.8

$38.2

$32.1

$20.6

Costs applicable to sales2

$38.0

$24.0

$31.7

$19.1

$18.3

Adjusted CAS per AgOz1

$26.09

$19.07

$20.18

$14.98

$13.75

Adjusted CAS per AuOz1

$1,787

$1,300

$1,537

$1,148

$1,481

Exploration expense

$0.9

$0.5

$0.8

$0.5

$1.8

Cash flow from operating activities

$4.0

$(8.7)

$4.7

$2.1

$(5.6)

Sustaining capital expenditures (excludes capital lease payments)

$7.3

$2.0

$2.9

$2.5

$1.5

Development capital expenditures

$35.0

$28.2

$13.9

$7.3

$4.3

Total capital expenditures

$42.3

$30.2

$16.8

$9.8

$5.8

Free cash flow1

$(38.3)

$(38.9)

$(12.1)

$(7.7)

$(11.4)

Operational

  • Silver and gold production increased 15% and 5% quarter-over-quarter to 0.9 million and 7,232 ounces, respectively. Year-over-year silver and gold production increased 22% and 40%, respectively
  • Higher silver production was primarily driven by the breakthrough of material placed on inter-lift liners in the prior period, while gold production continued to benefit from the stacking of additional run-of-mine material during the first half of the year
  • Coeur successfully completed the swap-out of the secondary crushing unit, helping the Company begin placing over-liner material on the Stage VI leach pad approximately six weeks ahead of schedule. Importantly, initial results from the new crusher have shown improvements in throughput, particle size distribution and leachability
  • The Company also completed the fourth phase of its inter-lift liner strategy late in the quarter, helping to facilitate the placement of HPGR-crushed ore on shallower portions of the Stage IV leach pad

Financial

  • Second quarter costs applicable to sales2 figures shown in the table above and highlighted below include a non-cash inventory charge of approximately $8.6 million related to a change in the Company’s recovery rate assumption on the Stage IV leach pad
  • Second quarter adjusted CAS1 for silver and gold on a co-product basis totaled $26.09 and $1,787 per ounce, respectively, compared to $19.07 and $1,300 per ounce in the prior period, largely driven by the non-cash charge as well as higher diesel and maintenance costs. Excluding the non-cash charge, second quarter adjusted CAS1 for silver and gold on a co-product basis totaled $20.13 and $1,379 per ounce, respectively
  • Capital expenditures increased 40% quarter-over-quarter to $42.3 million, reflecting an acceleration in the level of investment in the POA 11 expansion project as well as the ramp up of sustaining projects
  • Free cash flow1 in the second quarter remained relatively consistent at $(38.3) million

Exploration

  • Quarterly exploration investment totaled approximately $2.0 million ($0.9 million expensed and $1.1 million capitalized), compared to roughly $0.7 million ($0.5 million expensed and $0.2 million capitalized) in the prior period
  • Two reverse circulation rigs and two core rigs were active during the quarter. Expansion drilling tested Nevada Packard, North Rochester and Lincoln Hill, while infill drilling focused on the Rochester and Nevada Packard pits. A total of approximately 27,500 feet (8,375 meters) were drilled during the period, including 12,700 feet (3,875 meters) focused on expansion and 14,800 feet (4,500 meters) focused on infill drilling
  • Coeur plans to have up to four drill rigs active at Rochester for the remainder of the year. One core and one reverse circulation rig are expected to focus on infill targets at East Rochester as well as in the Rochester and Nevada Packard pits. Additionally, one core and one reverse circulation rig are anticipated to focus on expansion drilling at North Rochester, the southern portion of East Rochester and East Packard
  • Greenfields and expansion drilling are scheduled to continue at Lincoln Hill, Independence Hill and Gold Ridge late in the third quarter

Guidance

  • Full-year 2021 production is expected to be 3.2 – 4.4 million ounces of silver and 22,500 – 32,500 ounces of gold
  • CAS1 in 2021 are expected to be $20.00 – $22.00 per silver ounce (previously $15.00 – $17.00 per ounce) and $1,350 – $1,500 per gold ounce (previously $1,180 – $1,330 per ounce). The revised figures reflect the non-cash charge as well as higher anticipated diesel, labor and maintenance costs
  • Capital expenditures are expected to be approximately $155 – $200 million (previously $155 – $195 million)

Kensington, Alaska

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Tons milled

168,311

170,358

179,636

163,276

170,478

Average gold grade (oz/t)

0.18

0.19

0.20

0.18

0.21

Average recovery rate

92.7%

93.2%

93.0%

93.7%

92.0%

Gold ounces produced

28,322

30,681

32,990

26,797

33,058

Gold ounces sold

26,796

31,595

31,830

27,815

32,367

Average realized price per gold ounce, gross

$1,851

$1,754

$1,837

$1,917

$1,762

Treatment and refining charges per gold ounce

$30

$30

$37

$35

$57

Average realized price per gold ounce, net

$1,821

$1,724

$1,800

$1,882

$1,705

Metal sales

$48.8

$54.5

$57.2

$52.4

$55.2

Costs applicable to sales2

$29.2

$31.4

$29.3

$31.5

$30.4

Adjusted CAS per AuOz1

$1,088

$989

$919

$1,128

$934

Prepayment, working capital cash flow

$7.9

$(7.9)

$5.1

$(5.1)

$7.0

Exploration expense

$1.3

$1.1

$0.8

$3.4

$2.6

Cash flow from operating activities

$19.4

$11.0

$31.0

$9.1

$27.8

Sustaining capital expenditures (excludes capital lease payments)

$6.0

$7.2

$5.8

$5.3

$3.9

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$6.0

$7.2

$5.8

$5.3

$3.9

Free cash flow1

$13.4

$3.8

$25.2

$3.8

$23.9

Operational

  • Gold production in the second quarter totaled 28,322 ounces, compared to 30,681 ounces in the prior period and 33,058 ounces in the second quarter of 2020
  • Lower production during the quarter was driven by a modest reduction in mill throughput largely due to additional planned mill maintenance as well as slightly lower average head grade due to stope and development ore sequencing
  • Jualin accounted for approximately 20% of Kensington’s second quarter production, slightly higher than the prior period of roughly 17%, due to the processing of additional development ore

Financial

  • Adjusted CAS1 increased 10% quarter-over-quarter to $1,088 per ounce, largely driven by fewer gold ounces sold as well as additional contractor support and higher diesel prices
  • Capital expenditures decreased 17% quarter-over-quarter to $6.0 million, primarily due to lower capital development and a shift towards more expansion drilling during the period
  • Free cash flow1 in the second quarter totaled $13.4 million, including a net cash inflow of $7.9 million associated with the Company’s prepayment agreement at Kensington. Excluding the effect of the prepayment, free cash flow1 totaled approximately $5.5 million in the second quarter

Exploration

  • Exploration investment in the quarter totaled approximately $1.9 million ($1.3 million expensed and $0.6 million capitalized), compared to $2.1 million ($1.1 million expensed and $1.0 million capitalized) in the prior period
  • Two underground core rigs were active during the quarter, drilling from the Elmira development drift established in 2020. A total of approximately 32,800 feet (9,975 meters) were drilled during the period, including 21,900 feet (6,675 meters) of expansion and 10,900 feet (3,300 meters) of infill drilling
  • Infill and expansion drilling primarily focused on the Elmira vein, while expansion holes into the Johnson vein (located roughly 500 feet east of Elmira) were also completed
  • A third underground rig was added, and all three rigs are expected to remain active during the remainder of the year targeting the Elmira and Johnson veins as well as the Kensington Main, Eureka and Raven veins
  • Additionally, two surface core rigs began drilling the upper portions of the Jualin, Big Lake, Gold King and Valentine-Tremming targets in July

Guidance

  • Production in 2021 is expected to be 115,000 – 130,000 ounces of gold
  • CAS1 in 2021 are expected to be $1,010 – $1,110 per gold ounce
  • Capital expenditures are expected to be approximately $23 – $30 million

Wharf, South Dakota

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Ore tons placed

1,025,481

1,114,043

1,047,647

1,315,542

1,401,237

Average gold grade (oz/t)

0.032

0.030

0.024

0.025

0.032

Gold ounces produced

24,126

19,035

19,286

33,440

24,789

Silver ounces produced (000’s)

33

26

33

42

25

Gold ounces sold

23,371

18,896

21,539

33,382

23,364

Silver ounces sold (000’s)

31

26

35

41

23

Average realized price per gold ounce

$1,801

$1,791

$1,835

$1,872

$1,715

Metal sales

$42.9

$34.5

$40.3

$63.5

$40.5

Costs applicable to sales2

$23.4

$18.7

$21.4

$27.9

$22.5

Adjusted CAS per AuOz1

$963

$952

$954

$804

$804

Exploration expense

$0.1

$0.1

$0.3

$0.5

$0.1

Cash flow from operating activities

$17.3

$7.8

$14.1

$39.1

$19.1

Sustaining capital expenditures (excludes capital lease payments)

$0.3

$0.4

$1.2

$0.5

$0.3

Development capital expenditures

$1.1

$1.1

$—

$—

$—

Total capital expenditures

$1.4

$1.5

$1.2

$0.5

$0.3

Free cash flow1

$15.9

$6.3

$12.9

$38.6

$18.8

Operational

  • Gold production increased 27% quarter-over-quarter to 24,126 ounces, largely driven by the placement of higher average grade material during the first half of the year. Year-over-year gold production decreased 3%

Financial

  • Adjusted CAS1 on a by-product basis remained relatively consistent quarter-over-quarter at $963 per ounce, largely driven by higher gold ounces sold, additional material moved and processed, and increased diesel costs
  • Second quarter capital expenditures remained relatively consistent quarter-over-quarter at $1.4 million, reflecting continued investment in infill drilling and timing of sustaining projects
  • Free cash flow1 was $15.9 million in the second quarter compared to $6.3 million in the first quarter, largely driven by higher operating cash flow

Exploration

  • Exploration investment remained relatively consistent quarter-over-quarter at approximately $1.2 million (substantially all capitalized), reflecting the continuation of Coeur’s largest drilling campaign at the operation since acquisition
  • A total of approximately 38,100 feet (11,600 meters) were drilled during the period using one reverse circulation rig, focused on infill targets at the Portland Ridge – Boston claim group (located on the southern edge of the operation), and in the Flossie (located west of Portland Ridge), Sunshine (near Flossie) and Juno areas (located north of the Portland pit)
  • Coeur plans to continue drilling in the Flossie, eastern Portland Ridge and Juno areas, and expects to complete the program during the third quarter

Guidance

  • Gold production in 2021 is expected to be 85,000 – 95,000 ounces
  • CAS1 in 2021 are expected to be $960 – $1,060 per gold ounce
  • Capital expenditures are expected to be approximately $5 – $8 million

Silvertip, British Columbia

(Dollars in millions)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Metal sales

$—

$—

$—

$—

$—

Costs applicable to sales2

$—

$—

$—

$—

$—

Exploration expense

$3.6

$2.9

$5.1

$3.9

$2.9

Cash flow from operating activities

$(9.6)

$(7.5)

$(8.2)

$(8.2)

$(14.9)

Sustaining capital expenditures (excludes capital lease payments)

$6.0

$5.7

$(0.5)

$(1.8)

$1.9

Development capital expenditures

$12.5

$4.7

$5.0

$3.9

$—

Total capital expenditures

$18.5

$10.4

$4.5

$2.1

$1.9

Free cash flow1

$(28.1)

$(17.9)

$(12.7)

$(10.3)

$(16.8)

  • Mining and processing activities were temporarily suspended at Silvertip on February 19, 2020 (unrelated to COVID-19)

Operational

  • Ongoing technical work and successful exploration results continue to bolster Coeur’s confidence in a potential expansion and restart of Silvertip. The Company is currently working with SNC-Lavalin to complete engineering for the expansion, better define the estimated capital investment and develop a new mine plan based on continued successful drilling results
  • Coeur also signed an early works construction contract with Kiewit Corporation during the quarter to (i) take advantage of the summer construction season to complete several surface projects to de-risk the schedule, (ii) help facilitate the execution of major construction, and (iii) preserve optionality for a potential restart of active mining and processing activities in 2023
  • The scope of early works includes foundation preparation and decommissioning of certain sections of the mill, primarily focused on the flotation, de-watering and filtration circuits, that would be upgraded as part of an expansion
  • The Company plans to release an updated mine plan and economic analysis for Silvertip in early 2022 and file a new technical report that will incorporate an updated reserve and resource as well as an optimized capital estimate reflecting a 1,750 tonnes per day flowsheet

Financial

  • Ongoing carrying costs in the second quarter were $6.4 million, compared to $6.9 million in the prior period
  • Capital expenditures during the second quarter totaled $18.5 million compared to $10.4 million in the prior period, largely reflecting additional work related to the potential restart and expansion of Silvertip

Exploration

  • Exploration investment in the second quarter totaled approximately $5.2 million ($3.6 million expensed and $1.6 million capitalized), compared to roughly $4.5 million ($2.9 million expensed and $1.6 million capitalized) in the prior period
  • Five core rigs were active during the quarter, three rigs were on surface and two were underground. A total of approximately 86,200 feet (26,250 meters) were drilled during the period, including 62,400 feet (19,000 meters) of expansion and 23,800 feet (7,250 meters) of infill drilling
  • Infill and expansion drilling (both from surface and underground) focused on the 65 zone (including the recently discovered Southern Silver zone), and Discovery, Camp Creek and Tour Ridge zones
  • After successfully intercepting mineralization, underground drilling ramped up with two rigs focused on expanding the 65 zone, including the Southern Silver zone
  • As modeling began to show the shape of the Southern Silver zone, a surface rig commenced infill drilling to better define the zone. Notably, it appears that the Southern Silver zone connects the Silver Creek zone (an original source of mining material) with the Discovery South zone (drilled in 2020), representing potential for meaningful resource growth at Silvertip
  • Underground drilling is scheduled to remain focused on expansion and infill targets within the Southern Silver zone over the coming months, while three to four active surface rigs are expected to continue targeting the Camp Creek, Southern Silver and Tour Ridge zones

Other

  • Coeur repurchased an existing net smelter returns royalty (“NSR”) at Silvertip for $7.0 million during the second quarter. The terms of the NSR required payment of 1.429% (plus gross up for applicable withholding taxes) of net smelter returns on the first 1,434,000 metric tonnes of mineralized material mined, and 1.00% (plus gross up for applicable withholding taxes) thereafter, from the mining lease that covers the current Silvertip mine resource base and exploration targets described in the Company’s press release published on June 15, 2021

Guidance

  • Given ongoing engineering and technical work as well as the commencement of early works with respect to a potential expansion and restart, capital expenditures are expected to total $75 – $90 million (previously $35 – $45 million) in 2021 depending on weather conditions and availability of supplies and labor

Exploration

During the second quarter, the Company drilled a record of roughly 320,400 feet (97,675 meters) at a total investment of approximately $18.6 million ($12.4 million expensed and $6.2 million capitalized), compared to roughly 256,500 feet (78,175 meters) at a total investment of approximately $14.9 million ($9.7 million expensed and $5.2 million capitalized) in the prior period. The increase in exploration activity was largely driven by a ramp up of drilling at Palmarejo, Rochester and Crown as well as the continuation of expansion and infill programs across the rest of the Company’s portfolio.

Up to four drill rigs were active at Crown during the second quarter. Three reverse circulation rigs drilled expansion holes at Daisy, SNA and C-Horst, while one diamond core rig was active at Daisy, Secret Pass, SNA and C-Horst to better characterize metallurgic and geologic domains. The Company drilled approximately 64,800 feet (19,750 meters) during the quarter, compared to approximately 40,300 feet (12,275 meters) in the prior period.

Coeur plans to continue the same pace of exploration at Crown for the remainder of the year, with three reverse circulation rigs scheduled to conduct expansion drilling within its 300-acre disturbance permit on the property. The Company also expects to receive an amended disturbance permit during the third quarter to begin expanding C-Horst to the south. A core rig is planned to be used intermittently at Crown, shared with Rochester, to infill specific resource shapes to gather additional metallurgical and engineering information.

Coeur’s exploration programs continue to generate meaningful new discoveries and identify future growth opportunities. Accordingly, the Company expects to invest $70 – $80 million in exploration in 2021 (previously $63 – $72 million), including $52 – $57 million (previously $46 – $51 million) and $18 – $23 million (previously $17 – $21 million) of expensed and capitalized drilling, respectively. The increase in expected expensed exploration reflects additional planned expansion drilling at Silvertip and Crown, while higher capitalized exploration is largely related to additional planned infill drilling at Kensington.

2021 Production Guidance

 

 

 

Gold

 

Silver

 

 

 

(oz)

 

(K oz)

Palmarejo

 

 

100,000 – 110,000

 

6,500 – 7,750

Rochester

 

 

22,500 – 32,500

 

3,200 – 4,400

Kensington

 

 

115,000 – 130,000

 

Wharf

 

 

85,000 – 95,000

 

Total

 

 

322,500 – 367,500

 

9,700 – 12,150

2021 Costs Applicable to Sales Guidance

 

Previous

 

Updated

 

Gold

Silver

 

Gold

Silver

 

($/oz)

($/oz)

 

($/oz)

($/oz)

Palmarejo (co-product)

$710 – $810

$11.00 – $12.00

 

$635 – $735

$11.75 – $12.75

Rochester (co-product)

$1,180 – $1,330

$15.00 – $17.00

 

$1,350 – $1,500

$20.00 – $22.00

Kensington

$1,010 – $1,110

 

$1,010 – $1,110

Wharf (by-product)

$960 – $1,060

 

$960 – $1,060

2021 Capital, Exploration and G&A Guidance

 

 

 

Previous

 

Updated

 

 

 

($M)

 

($M)

Capital Expenditures, Sustaining

 

 

$80 – $100

 

$80 – $100

Capital Expenditures, Development

 

 

$180 – $225

 

$220 – $275

Exploration, Expensed

 

 

$46 – $51

 

$52 – $57

Exploration, Capitalized

 

 

$17 – $21

 

$18 – $23

General & Administrative Expenses

 

 

$37 – $41

 

$40 – $45

 

Note: The Company’s previous guidance assumes $1,850/oz gold and $24.00/oz silver as well as CAD of 1.27 and MXN of 19.50, and exclude the impact of any metal sales or foreign exchange hedges. The Company’s updated guidance reflects realized prices and hedge gains/losses through May 31, 2021, estimated prices of $1,750/oz gold and $25.00/oz silver as well as CAD of 1.20 and MXN of 20.50.

Financial Results and Conference Call

Coeur will host a conference call to discuss its second quarter 2021 financial results on July 29, 2021 at 11:00 a.m. Eastern Time.

Dial-In Numbers:

 

(855) 560-2581 (U.S.)

 

 

(855) 669-9657 (Canada)

 

 

(412) 542-4166 (International)

Conference ID:

 

Coeur Mining

Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Michael “Mick” Routledge, Senior Vice President and Chief Operating Officer, and other members of management. A replay of the call will be available through August 5, 2021.

Replay numbers:

 

(877) 344-7529 (U.S.)

 

 

(855) 669-9658 (Canada)

 

 

(412) 317-0088 (International)

Conference ID:

 

101 57 175

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Cautionary Statements

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding strategy, cash flow, capital allocation and investment, returns, results, value, liquidity, exploration and development efforts and plans, resource growth, expectations regarding the potential restart at Silvertip, expectations regarding the Rochester POA 11 expansion project, technical report timing, hedging strategies, the impact of inflation, anticipated production, costs and expenses, COVID-19 mitigation efforts, and operations at Palmarejo, Rochester, Wharf, Kensington and Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated production, cost and expense levels are not attained, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically-related conditions), changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, the uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and, grade variability, any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), the uncertainties inherent in the estimation of mineral reserves, changes that could result from Coeur’s future acquisition of new mining properties or businesses, the loss of access or insolvency of any third-party refiner or smelter to which Coeur markets its production, the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production and on the communities where we operate, the effects of environmental and other governmental regulations and government shut-downs, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities. This does not constitute an offer of any securities for sale.

Christopher Pascoe, Coeur’s Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur’s mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur’s properties, including the recently-filed Technical Report for Rochester, as filed on SEDAR at www.sedar.com.

Non-U.S. GAAP Measures

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow before changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (zinc or lead). We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss) and adjusted costs applicable to sales per ounce (gold and silver) and pound (zinc and lead) are important measures in assessing the Company’s overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2020 and our Form 10-Q for the quarter ended March 31, 2021.

Notes

1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow before changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (lead and zinc) are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Free cash flow is defined as cash flow from operating activities less capital expenditures. Please see table in Appendix for the calculation of consolidated free cash flow.
2. Excludes amortization.
3. Includes capital leases. Net of debt issuance costs and premium received.
4. As of June 30, 2021, Coeur had $35.0 million in outstanding letters of credit under its RCF.

Average Spot Prices

 

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Average Gold Spot Price Per Ounce

$

1,816

 

$

1,794

 

$

1,874

 

$

1,908

 

$

1,711

 

Average Silver Spot Price Per Ounce

$

26.69

 

$

26.26

 

$

24.39

 

$

24.26

 

$

16.38

 

Average Zinc Spot Price Per Pound

$

1.32

 

$

1.25

 

$

1.19

 

$

1.06

 

$

0.89

 

Average Lead Spot Price Per Pound

$

0.97

 

$

0.91

 

$

0.86

 

$

0.85

 

$

0.76

 

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

June 30,
2021

 

December 31,
2020

ASSETS

In thousands, except share data

CURRENT ASSETS

 

 

 

Cash and cash equivalents

$

124,075

 

 

$

92,794

 

Receivables

22,867

 

 

23,484

 

Inventory

54,471

 

 

51,210

 

Ore on leach pads

81,773

 

 

74,866

 

Prepaid expenses and other

20,949

 

 

27,254

 

 

304,135

 

 

269,608

 

NON-CURRENT ASSETS

 

 

 

Property, plant and equipment, net

272,558

 

 

230,139

 

Mining properties, net

786,695

 

 

716,790

 

Ore on leach pads

73,487

 

 

81,963

 

Restricted assets

9,274

 

 

9,492

 

Equity securities

174,370

 

 

12,943

 

Receivables

26,642

 

 

26,447

 

Other

60,847

 

 

56,595

 

TOTAL ASSETS

$

1,708,008

 

 

$

1,403,977

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts payable

$

107,362

 

 

$

90,577

 

Accrued liabilities and other

89,311

 

 

119,158

 

Debt

28,876

 

 

22,074

 

Reclamation

2,299

 

 

2,299

 

 

227,848

 

 

234,108

 

NON-CURRENT LIABILITIES

 

 

 

Debt

385,370

 

 

253,427

 

Reclamation

140,936

 

 

136,975

 

Deferred tax liabilities

39,598

 

 

34,202

 

Other long-term liabilities

45,847

 

 

51,786

 

 

611,751

 

 

476,390

 

COMMITMENTS AND CONTINGENCIES

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, par value $0.01 per share; authorized 300,000,000 shares, 257,046,847 issued and outstanding at June 30, 2021 and 243,751,283 at December 31, 2020

2,570

 

 

2,438

 

Additional paid-in capital

3,732,296

 

 

3,610,297

 

Accumulated other comprehensive income (loss)

7,457

 

 

(11,136

)

Accumulated deficit

(2,873,914

)

 

(2,908,120

)

 

868,409

 

 

693,479

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,708,008

 

 

$

1,403,977

 

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

In thousands, except share data

Revenue

$

214,858

 

 

$

154,249

 

 

$

416,975

 

 

$

327,416

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

Costs applicable to sales(1)

132,595

 

 

90,015

 

 

240,742

 

 

208,932

 

Amortization

31,973

 

 

27,876

 

 

61,910

 

 

64,038

 

General and administrative

10,467

 

 

8,616

 

 

22,021

 

 

17,536

 

Exploration

12,446

 

 

11,855

 

 

22,112

 

 

18,241

 

Pre-development, reclamation, and other

12,738

 

 

18,675

 

 

26,450

 

 

25,230

 

Total costs and expenses

200,219

 

 

157,037

 

 

373,235

 

 

333,977

 

OTHER INCOME (EXPENSE), NET

 

 

 

 

 

 

 

Loss on debt extinguishment

 

 

 

 

(9,173

)

 

 

Fair value adjustments, net

37,239

 

 

10,067

 

 

33,440

 

 

1,248

 

Interest expense, net of capitalized interest

(5,093

)

 

(5,765

)

 

(10,003

)

 

(10,893

)

Other, net

701

 

 

121

 

 

4,328

 

 

2,002

 

Total other income (expense), net

32,847

 

 

4,423

 

 

18,592

 

 

(7,643

)

Income (loss) before income and mining taxes

47,486

 

 

1,635

 

 

62,332

 

 

(14,204

)

Income and mining tax (expense) benefit

(15,340

)

 

(2,844

)

 

(28,126

)

 

1,095

 

NET INCOME (LOSS)

$

32,146

 

 

$

(1,209

)

 

$

34,206

 

 

$

(13,109

)

OTHER COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

Change in fair value of derivative contracts designated as cash flow hedges

(2,982

)

 

(7,097

)

 

24,376

 

 

(6,891

)

Reclassification adjustments for realized (gain) loss on cash flow hedges

(3,061

)

 

(679

)

 

(5,783

)

 

(679

)

Other comprehensive income (loss)

(6,043

)

 

(7,776

)

 

18,593

 

 

(7,570

)

COMPREHENSIVE INCOME (LOSS)

$

26,103

 

 

$

(8,985

)

 

$

52,799

 

 

$

(20,679

)

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

Basic

$

0.13

 

 

$

(0.01

)

 

$

0.14

 

 

$

(0.05

)

 

 

 

 

 

 

 

 

Diluted

$

0.13

 

 

$

(0.01

)

 

$

0.14

 

 

$

(0.05

)

(1) Excludes amortization.

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

In thousands

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income (loss)

$

32,146

 

 

$

(1,209

)

 

$

34,206

 

 

$

(13,109

)

Adjustments:

 

 

 

 

 

 

 

Amortization

31,973

 

 

27,876

 

 

61,910

 

 

64,038

 

Accretion

2,965

 

 

2,908

 

 

5,870

 

 

5,755

 

Deferred taxes

5,100

 

 

(1,545

)

 

5,224

 

 

(7,032

)

Loss on debt extinguishment

 

 

 

 

9,173

 

 

 

Fair value adjustments, net

(37,239

)

 

(10,067

)

 

(33,440

)

 

(1,248

)

Stock-based compensation

3,256

 

 

2,287

 

 

7,512

 

 

4,300

 

Gain on modification of right of use lease

 

 

 

 

 

 

(4,051

)

Write-downs

 

 

5,208

 

 

 

 

15,589

 

Deferred revenue recognition

(7,255

)

 

(8,134

)

 

(15,601

)

 

(15,682

)

Other

496

 

 

(913

)

 

(1,832

)

 

(2,005

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

961

 

 

(1,536

)

 

1,960

 

 

(2,349

)

Prepaid expenses and other current assets

1,328

 

 

1,081

 

 

673

 

 

735

 

Inventory and ore on leach pads

3,259

 

 

(8,056

)

 

(14,227

)

 

(29,981

)

Accounts payable and accrued liabilities

21,069

 

 

2,047

 

 

(7,728

)

 

(13,004

)

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

58,059

 

 

9,947

 

 

53,700

 

 

1,956

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Capital expenditures

(78,223

)

 

(16,682

)

 

(137,647

)

 

(38,890

)

Proceeds from the sale of assets

968

 

 

9

 

 

5,556

 

 

4,515

 

Purchase of investments

(876

)

 

 

 

(876

)

 

 

Sale of investments

 

 

19,802

 

 

935

 

 

19,802

 

Other

(13

)

 

(183

)

 

(30

)

 

(200

)

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

(78,144

)

 

2,946

 

 

(132,062

)

 

(14,773

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Issuance of notes and bank borrowings, net of issuance costs

 

 

100,000

 

 

367,493

 

 

150,000

 

Payments on debt, finance leases, and associated costs

(9,611

)

 

(95,713

)

 

(253,578

)

 

(101,614

)

Silvertip contingent consideration

 

 

 

 

 

 

(18,750

)

Other

(233

)

 

141

 

 

(4,158

)

 

(1,832

)

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(9,844

)

 

4,428

 

 

109,757

 

 

27,804

 

Effect of exchange rate changes on cash and cash equivalents

(56

)

 

929

 

 

(107

)

 

303

 

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(29,985

)

 

18,250

 

 

31,288

 

 

15,290

 

Cash, cash equivalents and restricted cash at beginning of period

155,443

 

 

54,058

 

 

94,170

 

 

57,018

 

Cash, cash equivalents and restricted cash at end of period

$

125,458

 

 

$

72,308

 

 

$

125,458

 

 

$

72,308

 

Adjusted EBITDA Reconciliation

 

(Dollars in thousands except per share amounts)

LTM 2Q
2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Net income (loss)

$

72,942

 

 

$

32,146

 

 

$

2,060

 

 

$

11,880

 

 

$

26,856

 

 

$

(1,209

)

Interest expense, net of capitalized interest

19,818

 

 

5,093

 

 

4,910

 

 

4,719

 

 

5,096

 

 

5,765

 

Income tax provision (benefit)

66,266

 

 

15,340

 

 

12,786

 

 

25,027

 

 

13,113

 

 

2,844

 

Amortization

129,259

 

 

31,973

 

 

29,937

 

 

35,133

 

 

32,216

 

 

27,876

 

EBITDA

288,285

 

 

84,552

 

 

49,693

 

 

76,759

 

 

77,281

 

 

35,276

 

Fair value adjustments, net

(39,793

)

 

(37,239

)

 

3,799

 

 

(4,110

)

 

(2,243

)

 

(10,067

)

Foreign exchange (gain) loss

3,452

 

 

499

 

 

773

 

 

1,581

 

 

599

 

 

(11

)

Asset retirement obligation accretion

11,869

 

 

2,965

 

 

2,905

 

 

3,031

 

 

2,968

 

 

2,908

 

Inventory adjustments and write-downs

715

 

 

267

 

 

572

 

 

105

 

 

(230

)

 

793

 

(Gain) loss on sale of assets and securities

(1,807

)

 

(621

)

 

(4,053

)

 

391

 

 

2,476

 

 

(9

)

Loss on debt extinguishment

9,172

 

 

 

 

9,172

 

 

 

 

 

 

 

Silvertip inventory write-down

1,232

 

 

 

 

 

 

 

 

1,232

 

 

2,104

 

Silvertip temporary suspension costs

1,930

 

 

 

 

 

 

1,092

 

 

838

 

 

1,725

 

COVID-19 costs

14,495

 

 

2,315

 

 

3,005

 

 

5,138

 

 

4,037

 

 

6,108

 

Novation

3,819

 

 

 

 

 

 

 

 

3,819

 

 

 

Wharf inventory write-down

 

 

 

 

 

 

 

 

 

 

3,323

 

Adjusted EBITDA

$

293,369

 

 

$

52,738

 

 

$

65,866

 

 

$

83,987

 

 

$

90,777

 

 

$

42,150

 

Revenue

$

875,020

 

 

$

214,858

 

 

$

202,117

 

 

$

228,317

 

 

$

229,728

 

 

$

154,249

 

Adjusted EBITDA Margin

34

%

 

25

%

 

33

%

 

37

%

 

40

%

 

27

%

Adjusted Net Income (Loss) Reconciliation

 

(Dollars in thousands except per share amounts)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Net income (loss)

$

32,146

 

 

$

2,060

 

 

$

11,880

 

 

$

26,856

 

 

$

(1,209

)

Fair value adjustments, net

(37,239

)

 

3,799

 

 

(4,110

)

 

(2,243

)

 

(10,067

)

Foreign exchange loss (gain)

1,503

 

 

(43

)

 

4,692

 

 

1,233

 

 

626

 

(Gain) loss on sale of assets and securities

(621

)

 

(4,053

)

 

391

 

 

2,476

 

 

(9

)

Loss on debt extinguishment

 

 

9,172

 

 

 

 

 

 

 

Silvertip inventory write-down

 

 

 

 

 

 

1,232

 

 

2,104

 

Silvertip temporary suspension costs

 

 

 

 

1,092

 

 

838

 

 

1,725

 

COVID-19 costs

2,315

 

 

3,005

 

 

5,138

 

 

4,037

 

 

6,108

 

Novation

 

 

 

 

 

 

3,819

 

 

 

Wharf inventory write-down

 

 

 

 

 

 

 

 

3,323

 

Tax effect of adjustments

1,056

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

(840

)

 

$

13,940

 

 

$

19,083

 

 

$

38,248

 

 

$

2,601

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) per share – Basic

$

0.00

 

 

$

0.06

 

 

$

0.08

 

 

$

0.16

 

 

$

0.01

 

Adjusted net income (loss) per share – Diluted

$

0.00

 

 

$

0.06

 

 

$

0.08

 

 

$

0.16

 

 

$

0.01

 

Consolidated Free Cash Flow Reconciliation

 

(Dollars in thousands)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Cash flow from operations

$

58,059

 

 

$

(4,359

)

 

$

67,289

 

 

$

79,464

 

 

$

9,947

 

Capital expenditures

78,223

 

 

59,424

 

 

37,393

 

 

22,996

 

 

16,682

 

Free cash flow

$

(20,164

)

 

$

(63,783

)

 

$

29,896

 

 

$

56,468

 

 

$

(6,735

)

Consolidated Operating Cash Flow

Before Changes in Working Capital Reconciliation

 

(Dollars in thousands)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Cash provided by (used in) operating activities

$

58,059

 

 

$

(4,359

)

 

$

67,289

 

 

$

79,464

 

 

$

9,947

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Receivables

(961

)

 

(999

)

 

5,617

 

 

1,497

 

 

1,536

 

Prepaid expenses and other

(1,328

)

 

655

 

 

1,435

 

 

1,921

 

 

(1,081

)

Inventories

(3,259

)

 

17,486

 

 

1,491

 

 

3,066

 

 

8,056

 

Accounts payable and accrued liabilities

(21,069

)

 

28,797

 

 

(17,331

)

 

(28,570

)

 

(2,047

)

Operating cash flow before changes in working capital

$

31,442

 

 

$

41,580

 

 

$

58,501

 

 

$

57,378

 

 

$

16,411

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended June 30, 2021

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

50,189

 

 

$

44,537

 

 

$

41,913

 

 

$

26,437

 

 

$

1,185

 

 

$

164,261

 

Amortization

(8,271

)

 

(6,506

)

 

(12,710

)

 

(2,994

)

 

(1,185

)

 

(31,666

)

Costs applicable to sales

$

41,918

 

 

$

38,031

 

 

$

29,203

 

 

$

23,443

 

 

$

 

 

$

132,595

 

Inventory Adjustments

155

 

 

(272

)

 

(57

)

 

(91

)

 

 

 

(265

)

By-product credit

 

 

 

 

 

 

(839

)

 

 

 

(839

)

Adjusted costs applicable to sales

$

42,073

 

 

$

37,759

 

 

$

29,146

 

 

$

22,513

 

 

$

 

 

$

131,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

30,516

 

 

7,818

 

 

26,796

 

 

23,371

 

 

 

 

88,501

 

Silver ounces

1,639,620

 

 

911,861

 

 

 

 

31,421

 

 

 

 

2,582,902

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

48

%

 

37

%

 

100

%

 

100

%

 

 

 

 

Silver

52

%

 

63

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

662

 

 

$

1,787

 

 

$

1,088

 

 

$

963

 

 

 

 

 

Silver ($/oz)

$

13.34

 

 

$

26.09

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended March 31, 2021

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

43,047

 

 

$

27,610

 

 

$

44,839

 

 

$

21,207

 

 

$

1,086

 

 

$

137,789

 

Amortization

(9,059

)

 

(3,577

)

 

(13,445

)

 

(2,475

)

 

(1,086

)

 

(29,642

)

Costs applicable to sales

$

33,988

 

 

$

24,033

 

 

$

31,394

 

 

$

18,732

 

 

$

 

 

$

108,147

 

Inventory Adjustments

(57

)

 

(313

)

 

(151

)

 

(52

)

 

 

 

(573

)

By-product credit

 

 

 

 

 

 

(700

)

 

 

 

(700

)

Adjusted costs applicable to sales

$

33,931

 

 

$

23,720

 

 

$

31,243

 

 

$

17,980

 

 

$

 

 

$

106,874

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

25,687

 

 

6,934

 

 

31,595

 

 

18,896

 

 

 

 

83,112

 

Silver ounces

1,637,695

 

 

771,354

 

 

 

 

26,455

 

 

 

 

2,435,504

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

47

%

 

38

%

 

100

%

 

100

%

 

 

 

 

Silver

53

%

 

62

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

621

 

 

$

1,300

 

 

$

989

 

 

$

952

 

 

 

 

 

Silver ($/oz)

$

10.98

 

 

$

19.07

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended December 31, 2020

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

48,672

 

 

$

36,828

 

 

$

42,486

 

 

$

24,300

 

 

$

 

 

$

152,286

 

Amortization

(12,516

)

 

(5,112

)

 

(13,179

)

 

(2,848

)

 

 

 

(33,655

)

Costs applicable to sales

$

36,156

 

 

$

31,716

 

 

$

29,307

 

 

$

21,452

 

 

$

 

 

$

118,631

 

Inventory Adjustments

(24

)

 

24

 

 

(56

)

 

(49

)

 

 

 

(105

)

By-product credit

 

 

 

 

 

 

(864

)

 

 

 

(864

)

Adjusted costs applicable to sales

$

36,132

 

 

$

31,740

 

 

$

29,251

 

 

$

20,539

 

 

$

 

 

$

117,662

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

35,359

 

 

8,672

 

 

31,830

 

 

21,539

 

 

 

 

97,400

 

Silver ounces

1,766,714

 

 

912,335

 

 

 

 

35,794

 

 

 

 

2,714,843

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

53

%

 

42

%

 

100

%

 

100

%

 

 

 

 

Silver

47

%

 

58

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

542

 

 

$

1,537

 

 

$

919

 

 

$

954

 

 

 

 

 

Silver ($/oz)

$

9.61

 

 

$

20.18

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended September 30, 2020

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

46,163

 

 

$

22,382

 

 

$

43,053

 

 

$

31,887

 

 

$

1,185

 

 

$

144,670

 

Amortization

(11,912

)

 

(3,278

)

 

(11,523

)

 

(4,000

)

 

(1,185

)

 

(31,898

)

Costs applicable to sales

$

34,251

 

 

$

19,104

 

 

$

31,530

 

 

$

27,887

 

 

$

 

 

$

112,772

 

Inventory Adjustments

(100

)

 

517

 

 

(141

)

 

(46

)

 

 

 

230

 

By-product credit

 

 

 

 

 

 

(1,007

)

 

 

 

(1,007

)

Adjusted costs applicable to sales

$

34,151

 

 

$

19,621

 

 

$

31,389

 

 

$

26,834

 

 

$

 

 

$

111,995

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

27,252

 

 

6,834

 

 

27,815

 

 

33,382

 

 

 

 

95,283

 

Silver ounces

1,765,371

 

 

785,887

 

 

 

 

40,521

 

 

 

 

2,591,779

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

48

%

 

40

%

 

100

%

 

100

%

 

 

 

 

Silver

52

%

 

60

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

602

 

 

$

1,148

 

 

$

1,128

 

 

$

804

 

 

 

 

 

Silver ($/oz)

$

10.06

 

 

$

14.98

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended June 30, 2020

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

26,095

 

 

$

21,348

 

 

$

43,235

 

 

$

25,653

 

 

$

1,231

 

 

$

117,562

 

Amortization

(7,270

)

 

(3,012

)

 

(12,853

)

 

(3,181

)

 

(1,231

)

 

(27,547

)

Costs applicable to sales

$

18,825

 

 

$

18,336

 

 

$

30,382

 

 

$

22,472

 

 

$

 

 

$

90,015

 

Inventory Adjustments

(106

)

 

(566

)

 

(139

)

 

(3,304

)

 

 

 

(4,115

)

By-product credit

 

 

 

 

 

 

(385

)

 

 

 

(385

)

Adjusted costs applicable to sales

$

18,719

 

 

$

17,770

 

 

$

30,243

 

 

$

18,783

 

 

$

 

 

$

85,515

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

16,924

 

 

5,278

 

 

32,367

 

 

23,364

 

 

 

 

77,933

 

Silver ounces

874,642

 

 

723,679

 

 

 

 

22,707

 

 

 

 

1,621,028

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

62

%

 

44

%

 

100

%

 

100

%

 

 

 

 

Silver

38

%

 

56

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

686

 

 

$

1,481

 

 

$

934

 

 

$

804

 

 

 

 

 

Silver ($/oz)

$

8.13

 

 

$

13.75

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales Adjusted for Recovery Rate Adjustment

for Three Months Ended June 30, 2021

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

50,189

 

 

$

44,537

 

 

$

41,913

 

 

$

26,437

 

 

$

1,185

 

 

$

164,261

 

Amortization

(8,271

)

 

(6,506

)

 

(12,710

)

 

(2,994

)

 

(1,185

)

 

(31,666

)

Costs applicable to sales

$

41,918

 

 

$

38,031

 

 

$

29,203

 

 

$

23,443

 

 

$

 

 

$

132,595

 

Inventory Adjustments

155

 

 

(272

)

 

(57

)

 

(91

)

 

 

 

(265

)

Rochester recovery rate adjustment

 

 

(8,628

)

 

 

 

 

 

 

 

 

By-product credit

 

 

 

 

 

 

(839

)

 

 

 

(839

)

Adjusted costs applicable to sales

$

42,073

 

 

$

29,131

 

 

$

29,146

 

 

$

22,513

 

 

$

 

 

$

131,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

30,516

 

 

7,818

 

 

26,796

 

 

23,371

 

 

 

 

88,501

 

Silver ounces

1,639,620

 

 

911,861

 

 

 

 

31,421

 

 

 

 

2,582,902

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

48

%

 

37

%

 

100

%

 

100

%

 

 

 

 

Silver

52

%

 

63

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

662

 

 

$

1,379

 

 

$

1,088

 

 

$

963

 

 

 

 

 

Silver ($/oz)

$

13.34

 

 

$

20.13

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales for Updated 2021 Guidance

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

Costs applicable to sales, including amortization (U.S. GAAP)

$

200,530

 

 

$

122,480

 

 

$

190,150

 

 

$

102,610

 

Amortization

(37,530

)

 

(14,930

)

 

(60,800

)

 

(10,910

)

Costs applicable to sales

$

163,000

 

 

$

107,550

 

 

$

129,350

 

 

$

91,700

 

By-product credit

 

 

 

 

 

 

(2,730

)

Adjusted costs applicable to sales

$

163,000

 

 

$

107,550

 

 

$

129,350

 

 

$

88,970

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

Gold ounces

110,000

 

 

29,110

 

 

127,500

 

 

89,200

 

Silver ounces

7,021,200

 

 

3,312,230

 

 

 

 

106,150

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

Gold

46%

 

38%

 

100%

 

100%

Silver

54%

 

62%

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

Gold ($/oz)

$635 – $735

 

$1,350 – $1,500

 

$1,010 – $1,110

 

$960 – $1,060

Silver ($/oz)

$11.75 – $12.75

 

$20.00 – $22.00

 

 

 

 

Reconciliation of Costs Applicable to Sales for Previous 2021 Guidance

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

Costs applicable to sales, including amortization (U.S. GAAP)

$

196,255

 

 

$

105,557

 

 

$

188,349

 

 

$

99,746

 

Amortization

(39,208

)

 

(15,899

)

 

(59,756

)

 

(11,524

)

Costs applicable to sales

$

157,047

 

 

$

89,658

 

 

$

128,593

 

 

$

88,222

 

By-product credit

 

 

 

 

 

 

(2,255

)

Adjusted costs applicable to sales

$

157,047

 

 

$

89,658

 

 

$

128,593

 

 

$

85,967

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

Gold ounces

107,900

 

 

27,200

 

 

127,000

 

 

89,000

 

Silver ounces

7,128,000

 

 

3,807,000

 

 

 

 

93,000

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

Gold

49%

 

36%

 

100%

 

100%

Silver

51%

 

64%

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

Gold ($/oz)

$710 – $810

 

$1,180 – $1,330

 

$1,010 – $1,110

 

$960 – $1,060

Silver ($/oz)

$11.00 – $12.00

 

$15.00 – $17.00

 

 

 

 

 

Contacts

Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, IL 60603
Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com

The FOMC and Senate Help Copper Advance



The Case for Copper May Have Just Become Stronger

 

Fed Chairman Jerome Powell’s dovish announcement concerning Fed monetary policy after the July meeting, combined with a version of the infrastructure bill moving forward in the Senate, had an uplifting effect on copper prices.  Copper has advanced since the announcements in part because the dollar has declined (vs. the DXY).  The Added impetus for copper’s rise is the senate version of a $1 trillion infrastructure bill passing with bipartisan support.

The Fed

Chairman Powell said in a press conference following a two-day FOMC meeting that although the economy is making progress towards its goals, it has a way to go before the Fed will scale back its easy policies.  The overnight Fed Funds rate was left unchanged as per unanimous vote. On the subject of inflation, which also could impact commodity prices, Powell said, “Inflation has increased notably and will likely remain elevated in the coming months,”   He blamed these price increases on supply chain disruptions related to temporary reduced economic activity in response to Covid.   The dollar declined, this causes copper that’s produced and sold in U.S. dollars cheaper against those produced under richer currencies.

Infrastructure Spending

A roughly $1 trillion infrastructure bill advanced in a senate vote Wednesday (July 28). The bill is a scaled-down version of one introduced by the House and would still need House approval. The bill that was voted on includes $110 billion for roads, $73 billion for power grid spending, $66 billion for railways, $65 to expand broadband access, $55 billion for clean drinking water, $39 billion for public transit, and $25 billion for airports. There is also $50 billion in the bill for environmental resiliency, defined as the capacity of an ecosystem to respond to disturbances by resisting damage, recovering quickly while retaining the same function and identity.

If put in place, it’s expected many of these infrastructure projects would create an increase in demand, perhaps even stress the supply of copper and other raw materials.

Other Drivers of Copper’s Price in the U.S.

In a virtual roadshow presented last week through Channelchek, David Kelly, President, and CEO of Chakana Copper Corp. (CHKKF) had this to say, “Copper itself is a great commodity to be investing in. Even before all the clean energy initiatives and electric vehicle proliferation, there was a looming supply gap.”  (Chakana Virtual
Roadshow replay
).

 

The visual below is a slide from David Kelly’s presentation highlighting the various drivers working to produce the mismatch between copper demand and supply.

 

Source: Chakana Copper Website

Supply disruptions were touched on above – copper prices are also experiencing upward pressure from global urbanization, renewable energy needs, EV production growth, electrical storage, distribution systems, and mines closing. These factors would suggest positive price pressure for the commodity and producers such as mining companies.

 

Take-Away

During the last week of July 2021, investors in copper, copper mining companies, and other related production companies were handed two news pieces that create further upward price pressure on the commodity. This is on top of an environment that already keeps adding to strength to the argument to add exposure to copper investments.

 

Suggested Reading:



Virtual Roadshow With Chakana Copper (Video)



Unhyped Hydrogen Investments





China fighting Cost Push Inflation With Metal Reserves



Metals and Mining Second Quarter Industry Report

 

Sources:

https://www.youtube.com/watch?v=ajbPE0i0eOA&t=509s

https://www.chakanacopper.com/site/assets/files/3853/chakana_corporate_presentation_june_17_2021_noble_roads-compressed.pdf

https://www.cnbc.com/quotes/@HG.1

https://www.nytimes.com/2021/07/28/us/politics/senate-infrastructure-deal.html

https://www.federalreserve.gov/newsevents/pressreleases/monetary20210728a.htm

 

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Coeur Reports Second Quarter 2021 Results


Coeur Reports Second Quarter 2021 Results

 

Reaffirms Production Guidance; Updates Cost and Capital Expenditure Guidance

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported second quarter 2021 financial results, including revenue of $214.9 million, cash flow from operating activities of $58.1 million and GAAP net income from continuing operations of $32.1 million, or $0.13 per share. On an adjusted basis1, the Company reported EBITDA of $52.7 million, cash flow from operating activities before changes in working capital of $31.4 million and net loss from continuing operations of $0.8 million, or $0.00 per share.

Key Highlights

  • Quarterly revenue and cash flow growth – Revenue increased 6% quarter-over-quarter and 39% year-over-year due to higher gold and silver ounces sold and a higher average realized silver price. Operating cash flow improved by $62.4 million quarter-over-quarter and $48.1 million year-over-year to $58.1 million
  • Higher quarterly production and stronger expected second half – Gold production increased 2% quarter-over-quarter to 87,275 ounces led by a 27% improvement at Wharf, while silver production of 2.6 million ounces was 8% higher largely due to a 15% increase at Rochester. Year-over-year, gold and silver production increased 12% and 60%, respectively, driven by increases at Palmarejo and Rochester. Production levels are expected to continue climbing in the second half of the year and be within the Company’s full-year guidance of 322,500 – 367,500 ounces of gold and 9.7 – 12.2 million ounces of silver
  • New quarterly drilling record from largest exploration campaign in Company history – A new quarterly record was achieved during the period with the completion of approximately 320,400 feet (97,675 meters) of drilling and 27 currently active drill rigs. Investment in exploration totaled approximately $18.6 million ($12.4 million expensed and $6.2 million capitalized) in the quarter with significant increases in drilling activity at Palmarejo and Rochester as well as the Crown district in southern Nevada
  • Rochester expansion progressing according to schedule – Coeur advanced major construction on the Plan of Operations Amendment 11 (“POA 11”) expansion at Rochester on schedule, with solid ongoing environmental and safety performance. Placement of over-liner material on the new Stage VI leach pad commenced approximately six weeks ahead of schedule, and concrete foundation work for the Merrill-Crowe process plant and crusher corridor is scheduled to begin in the third quarter. Overall project progress was approximately 31% complete at the end of the second quarter
  • Accelerating investment at Silvertip based on positive results – The Company is increasing its investment at Silvertip during the second half of 2021 to complete several surface projects to support a potential restart of active mining and processing activities in 2023
  • Strategic investment in Victoria – Coeur acquired a 17.8% ownership interest in Victoria Gold Corp. (“Victoria”) during the second quarter for consideration of approximately $118.8 million. Victoria owns and operates the new open pit, heap leach Eagle gold mine located in central Yukon Territory, Canada. The investment is consistent with the Company’s strategy and complements its existing portfolio of gold and silver assets located in high-quality jurisdictions

“Second quarter revenue and cash flow increased quarter-over-quarter and year-over-year, primarily due to stronger silver production from our Palmarejo and Rochester operations as well as higher average realized silver prices,” said Mitchell J. Krebs, President and Chief Executive Officer. “We anticipate production to continue increasing during the second half of 2021, particularly from our Wharf and Rochester operations, and expect to achieve our full-year production guidance for both gold and silver. We also accelerated investment on the POA 11 expansion project at Rochester during the quarter. Construction is advancing on schedule and is expected to be largely completed late next year, leading to an anticipated step change in production and cash flow despite seeing some early signs of inflationary pressures in certain areas.”

Mr. Krebs continued, “Similarly, we continued to increase our investment in exploration and established a new quarterly drilling record, which is leading to additional positive results from the largest campaign in Company history. A third source of high-return organic growth is the potential expansion and restart of our Silvertip mine in northern British Columbia. We are accelerating investment at Silvertip to take advantage of the current construction season based on positive results from our exploration and technical programs to preserve the option of a potential restart in 2023. Finally, we further bolstered our portfolio by acquiring a 17.8% interest in Victoria, which aligns with our strategy of having a balanced collection of long-life, low-cost precious metals assets in high-quality jurisdictions that can generate strong returns for our stockholders.”

“Collectively, these initiatives reflect our strategy of discovering, developing and operating a balanced, multi-asset portfolio of precious metals assets located in high-quality jurisdictions to maximize free cash flow, returns and net asset value. Together with a flexible balance sheet and industry-leading environmental, social and governance practices, we believe we are well positioned to deliver solid results and generate meaningful value for our stockholders,” concluded Mr. Krebs.

Financial and Operating Highlights (Unaudited)

(Amounts in millions, except per share amounts, gold/silver ounces produced & sold, and per-ounce metrics)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

 

Gold Sales

$

146.2

 

 

$

138.3

 

 

$

162.0

 

$

167.1

 

$

127.9

 

 

Silver Sales

$

68.7

 

 

$

63.8

 

 

$

66.4

 

$

62.6

 

$

26.3

 

 

Consolidated Revenue

$

214.9

 

 

$

202.1

 

 

$

228.3

 

$

229.7

 

$

154.2

 

 

Costs Applicable to Sales2

$

132.6

 

 

$

108.1

 

 

$

118.6

 

$

112.8

 

$

90.0

 

 

General and Administrative Expenses

$

10.5

 

 

$

11.6

 

 

$

8.4

 

$

7.8

 

$

8.6

 

 

Net Income (Loss)

$

32.1

 

 

$

2.1

 

 

$

11.9

 

$

26.9

 

$

(1.2

)

 

Net Income (Loss) Per Share

$

0.13

 

 

$

0.01

 

 

$

0.05

 

$

0.11

 

$

(0.01

)

 

Adjusted Net Income (Loss)1

$

(0.8

)

 

$

13.9

 

 

$

19.1

 

$

38.2

 

$

2.6

 

 

Adjusted Net Income (Loss)Per Share

$

0.00

 

 

$

0.06

 

 

$

0.08

 

$

0.16

 

$

0.01

 

 

Weighted Average Shares Outstanding

252.1

 

 

244.5

 

 

244.3

 

243.8

 

240.9

 

 

EBITDA1

$

84.6

 

 

$

49.7

 

 

$

76.7

 

$

77.3

 

$

35.3

 

 

Adjusted EBITDA1

$

52.7

 

 

$

65.9

 

 

$

84.0

 

$

90.8

 

$

42.2

 

 

Cash Flow from Operating Activities

$

58.1

 

 

$

(4.4

)

 

$

67.3

 

$

79.5

 

$

9.9

 

 

Capital Expenditures

$

78.2

 

 

$

59.4

 

 

$

37.4

 

$

23.0

 

$

16.7

 

 

Free Cash Flow1

$

(20.2

)

 

$

(63.8

)

 

$

29.8

 

$

56.5

 

$

(6.7

)

 

Cash, Equivalents & Short-Term Investments

$

124.1

 

 

$

154.1

 

 

$

92.8

 

$

77.1

 

$

70.9

 

 

Total Debt3

$

414.2

 

 

$

412.1

 

 

$

275.5

 

$

301.1

 

$

348.6

 

 

Average Realized Price Per Ounce – Gold

$

1,651

 

 

$

1,664

 

 

$

1,663

 

$

1,754

 

$

1,641

 

 

Average Realized Price Per Ounce – Silver

$

26.60

 

 

$

26.19

 

 

$

24.21

 

$

24.15

 

$

16.25

 

 

Gold Ounces Produced

87,275

 

 

85,225

 

 

96,377

 

95,995

 

78,229

 

 

Silver Ounces Produced

2.6

 

 

2.4

 

 

2.8

 

2.6

 

1.6

 

 

Gold Ounces Sold

88,501

 

 

83,112

 

 

97,400

 

95,283

 

77,933

 

 

Silver Ounces Sold

2.6

 

 

2.4

 

 

2.7

 

2.6

 

1.6

 

 

Financial Results

Second quarter 2021 revenue totaled $214.9 million compared to $202.1 million in the prior period and $154.2 million in the second quarter of 2020. The Company produced 87,275 and 2.6 million ounces of gold and silver, respectively, during the quarter. Metal sales totaled 88,501 ounces of gold and 2.6 million ounces of silver.

Average realized gold and silver prices for the quarter were $1,651 and $26.60 per ounce, respectively, compared to $1,664 and $26.19 per ounce in the prior period. Gold and silver sales accounted for 68% and 32% of quarterly revenue, respectively. The Company’s U.S. operations accounted for approximately 60% of second quarter revenue, consistent with the prior period.

Costs applicable to sales2 increased to $132.6 million, largely due to higher throughput rates, an increase in maintenance costs, higher consumable costs and a non-cash inventory charge at Rochester.

General and administrative expenses for the quarter totaled $10.5 million compared to $11.6 million in the prior period, reflecting lower employee-related expenses. Full-year general and administrative expenses are expected to be slightly higher at $40 – $45 million (previous guidance of $37 – $41 million) largely driven by increased accruals for previously-granted long-term performance share awards.

Coeur invested approximately $18.6 million ($12.4 million expensed and $6.2 million capitalized) in exploration during the quarter, compared to roughly $14.9 million ($9.7 million expensed and $5.2 million capitalized) in the prior period, reflecting an increase in drilling activity across most sites. Notably, the Company completed approximately 320,400 feet (97,675 meters) of expansion and infill drilling during the period, establishing a new Company record. See the “Operations” and “Exploration” sections for additional detail on the Company’s exploration activities.

Operating costs related to COVID-19 mitigation and response efforts totaled $2.3 million during the second quarter, compared to $3.0 million in the prior period. These costs were primarily driven by employee-related expenses at Kensington and Palmarejo, and are included in “Pre-development, reclamation, and other expenses” on the Company’s income statement. Coeur continues to implement and maintain rigorous health and safety protocols across its operations and in surrounding communities aimed at limiting the exposure and transmission of COVID-19 while minimizing business interruptions.

The Company recorded an income tax expense of $15.3 million during the second quarter. Cash income and mining taxes paid during the period totaled approximately $12.4 million.

Quarterly operating cash flow totaled $58.1 million compared to $(4.4) million in the prior period, largely driven by higher metal sales and favorable changes in working capital. Changes in working capital during the quarter were $26.6 million, compared to $(45.9) million in the prior period.

Capital expenditures during the second quarter were $78.2 million compared to $59.4 million in the prior period, primarily driven by increased investment at Rochester and Silvertip. Investment related to the POA 11 expansion project at Rochester totaled $33.2 million during the quarter, compared to $28.1 million in the first quarter. Sustaining and development capital expenditures accounted for approximately 38% and 62%, respectively, of the Company’s total capital investment during the quarter.

The Company satisfied the remaining $7.1 million obligation under its prepayment agreement at Kensington and exercised an option to receive an additional $15.0 million prepayment, resulting in a net cash inflow of approximately $7.9 million in the second quarter. Coeur expects the $15.0 million cash outflow under the arrangement to occur over the next two quarters.

Strategic Investment in Victoria

During the second quarter, Coeur entered into an agreement to acquire roughly 11.1 million outstanding common shares of Victoria (approximately 17.8% of issued and outstanding shares on an undiluted basis at time of transaction) from Orion Co-VI Ltd. (“Orion”) at a price of C$13.20 per share, reflecting a 5% discount to the trailing 30-day volume weighted price for the period ended May 7, 2021.

In connection with the transaction, Orion received roughly 12.8 million shares of Coeur common stock (approximately 4.9% of issued and outstanding shares on an undiluted basis at time of transaction), based on the trailing 30-day volume weighted price of $9.17 per share, for the period ended May 7, 2021. The transaction was completed on May 14, 2021 for consideration of approximately $118.8 million. The value of Victoria’s shares held by Coeur totaled approximately $164.7 million as of June 30, 2021.

Liquidity Update

Maintaining balance sheet flexibility remains a key element of Coeur’s strategy. The Company ended the second quarter with total liquidity of approximately $389.1 million, including $124.1 million of cash and no borrowings under its $300.0 million revolving credit facility (“RCF”)4. Additionally, the aggregate borrowing capacity under its RCF may be increased by up to $100.0 million.

As of June 30, 2021, the Company also had $174.4 million of strategic investments in equity securities and the full $100.0 million available under its at-the-market common stock offering program it established in April 2020.

Hedging Update

During the second quarter, the Company added to its hedge position by executing additional zero-cost collar hedges on 6,000 ounces of its expected 2022 gold production. Coeur previously completed its gold hedging program for 2021 and continues to proactively monitor market conditions to potentially layer in additional hedges on up to 50% of expected gold production in 2022. The Company’s silver price exposure remains unhedged. An overview of the hedges currently implemented is outlined below:

 

2021

2022

Gold Ounces Hedged

79,350

132,000

Avg. Ceiling ($/oz)

$1,882

$2,038

Avg. Floor ($/oz)

$1,600

$1,630

Rochester Expansion

The Company continued to execute major construction activities on the POA 11 expansion project at Rochester during the second quarter, with overall progress approximately 31% complete at the end of the period. Key elements of the project timeline remain on schedule and are highlighted below:

 

Expected Start Date

Target Completion Date

Leach Pad (Incl. Ancillary Facilities)

2H 2020 ?

Mid-2022

Merrill-Crowe Process Plant

1H 2021 ?

YE 2022

Crushing Circuit

1H 2021 ?

YE 2022

Supporting Infrastructure

2H 2020 ?

Mid-2022

Coeur began placing over-liner material on the Stage VI leach pad approximately six weeks ahead of schedule following the successful swap-out of the secondary crushing unit. The Company also mobilized a cement batch plant, began construction of a new high-voltage power line and started executing electrical substation upgrades during the period. Concrete foundation work for the Merrill-Crowe process plant and crusher corridor is expected to commence during the third quarter. Additionally, structural steel erection for the crusher corridor is expected to begin in early 2022.

As of June 30, 2021, the Company has committed approximately $334 million of capital since the inception of the expansion project in the third quarter of 2020, including 76 executed contracts valued at approximately $309 million. There are six packages yet to be awarded, including two structural, mechanical, piping, electrical and instrumentation construction contracts for the Merrill-Crowe process plant and crushing circuit, respectively. The Company has begun to see signs of inflationary pressures on recent bids received for the remaining uncommitted contracts related to building materials, fuel and overall tightness in the construction market.

Additionally, Coeur has elected to allocate approximately $20 million of additional capital investment to further enhance the project’s economics and de-risk the execution of the project. The majority of this incremental capital is expected to be incurred in 2022.

The Company is also reviewing additional optimization opportunities based on key learnings from HPGR-placed material onto the current Stage IV leach pad since late 2019. The results from this work are expected to be available during the second half of 2021.

Coeur secured a capital lease package for nearly $60 million during the quarter, higher than its original target of $50 million. The package is earmarked for planned equipment purchases for the project in 2021 and 2022, and has an interest rate of 5.20%.

Operations

Second quarter 2021 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Tons milled

517,373

484,390

509,848

492,474

269,641

Average gold grade (oz/t)

0.058

0.062

0.076

0.065

0.066

Average silver grade (oz/t)

3.94

4.07

4.30

4.37

4.46

Average recovery rate – Au

92.4%

95.7%

88.9%

91.3%

86.0%

Average recovery rate – Ag

81.9%

81.3%

81.3%

82.8%

72.2%

Gold ounces produced

27,595

28,605

34,511

29,296

15,223

Silver ounces produced (000’s)

1,667

1,603

1,783

1,784

867

Gold ounces sold

30,516

25,687

35,359

27,252

16,924

Silver ounces sold (000’s)

1,640

1,638

1,767

1,765

875

Average realized price per gold ounce

$1,351

$1,462

$1,395

$1,446

$1,399

Average realized price per silver ounce

$26.71

$26.12

$24.45

$23.98

$16.35

Metal sales

$85.0

$80.3

$92.5

$81.8

$38.0

Costs applicable to sales2

$41.9

$34.0

$36.1

$34.3

$18.8

Adjusted CAS per AuOz1

$662

$621

$542

$602

$686

Adjusted CAS per AgOz1

$13.34

$10.98

$9.61

$10.06

$8.13

Exploration expense

$1.8

$1.7

$2.6

$2.0

$0.9

Cash flow from operating activities

$33.4

$13.2

$43.2

$49.7

$(3.5)

Sustaining capital expenditures (excludes capital lease payments)

$9.8

$10.0

$9.0

$4.9

$4.5

Development capital expenditures

$—

$—

$(0.1)

$0.1

$—

Total capital expenditures

$9.8

$10.0

$8.9

$5.0

$4.5

Free cash flow1

$23.6

$3.2

$34.3

$44.7

$(8.0)

Operational

  • Second quarter gold and silver production totaled 27,595 and 1.7 million ounces, respectively, compared to 28,605 and 1.6 million ounces in the prior period. Gold and silver production in the second quarter of 2020 totaled 15,223 and 0.9 million ounces, respectively, reflecting a temporary suspension to comply with a COVID-19-related government decree
  • Production during the quarter benefited from a 7% increase in mill throughput driven by a re-sequencing of the mine plan due to geotechnically-challenging conditions encountered during the first half of the year, partially offset by lower average gold and silver grades

Financial

  • Second quarter adjusted CAS1 for gold and silver on a co-product basis increased 7% and 21% to $662 and $13.34 per ounce, respectively, compared to the prior quarter, largely driven by slightly lower average grades, higher mining rates, underground rehabilitation activities, and comparatively higher gold sales under Palmarejo’s gold stream agreement, which impacted the allocation of costs on a co-product basis
  • Capital expenditures remained relatively consistent quarter-over-quarter at $9.8 million, reflecting continued investment in business improvement projects, underground development and infill drilling
  • Free cash flow1 in the second quarter totaled $23.6 million compared to $3.2 million in the prior period, largely driven by the payment of cash income and mining taxes in the first quarter

Exploration

  • Exploration investment for the second quarter totaled approximately $3.6 million ($1.8 million expensed and $1.8 million capitalized), compared to roughly $3.0 million ($1.7 million expensed and $1.3 million capitalized) in the prior period
  • Up to eight surface and underground core rigs were active during the quarter. A total of approximately 71,200 feet (21,675 meters) were drilled during the period, including 22,900 feet (6,975 meters) of expansion and 48,300 feet (14,700 meters) of infill drilling
  • Infill drilling focused on specific zones within the Independencia and Guadalupe deposits. Surface rigs targeted areas of the Hidalgo and La Patria zones (located within the Independencia and Guadalupe deposits, respectively) as well as the northern portion of the Independencia zone, while underground rigs focused on the southern portion of the Independencia zone
  • Expansion drilling during the quarter focused on the Hidalgo and El Ojito (located in the northeastern portion of the Independencia deposit) zones
  • Expansion and greenfield target generation is anticipated to continue moving north, northwest and east from the Independencia and Guadalupe deposits while infill drilling is expected to continue on the La Patria, North Independencia, Hidalgo and La Bavisa zones
  • In parallel, a new initiative to evaluate, target and drill the Guazapares district (located east of the Palmarejo district and outside of the gold stream area of influence) was launched with the expectation of drilling to begin in the second half of the year
  • Coeur plans for nine drill rigs to be active at Palmarejo in the third quarter and expects to maintain that pace for the remainder of the year

Other

  • Approximately 46% (14,097 ounces) of Palmarejo’s gold sales in the second quarter were sold under its gold stream agreement at a price of $800 per ounce. The Company anticipates approximately 40% – 45% of Palmarejo’s gold sales for 2021 will be sold under the stream agreement

Guidance

  • Full-year 2021 production is expected to be 100,000 – 110,000 ounces of gold and 6.5 – 7.8 million ounces of silver
  • CAS1 are expected to be $635 – $735 per gold ounce (previously $710 – $810 per ounce) and $11.75 – $12.75 per silver ounce (previously $11.00 – $12.00 per ounce). The revised figures largely reflect an anticipated change in the allocation of costs on a co-product basis
  • Capital expenditures are expected to be approximately $40 – $45 million

Rochester, Nevada

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Ore tons placed

3,195,777

3,240,917

4,000,889

4,523,767

3,743,331

Average silver grade (oz/t)

0.38

0.45

0.53

0.49

0.51

Average gold grade (oz/t)

0.003

0.003

0.002

0.002

0.002

Silver ounces produced (000’s)

888

774

1,020

740

728

Gold ounces produced

7,232

6,904

9,590

6,462

5,159

Silver ounces sold (000’s)

912

771

912

786

724

Gold ounces sold

7,818

6,934

8,672

6,834

5,278

Average realized price per silver ounce

$26.38

$26.34

$24.35

$24.49

$16.11

Average realized price per gold ounce

$1,794

$1,794

$1,825

$1,882

$1,702

Metal sales

$38.1

$32.8

$38.2

$32.1

$20.6

Costs applicable to sales2

$38.0

$24.0

$31.7

$19.1

$18.3

Adjusted CAS per AgOz1

$26.09

$19.07

$20.18

$14.98

$13.75

Adjusted CAS per AuOz1

$1,787

$1,300

$1,537

$1,148

$1,481

Exploration expense

$0.9

$0.5

$0.8

$0.5

$1.8

Cash flow from operating activities

$4.0

$(8.7)

$4.7

$2.1

$(5.6)

Sustaining capital expenditures (excludes capital lease payments)

$7.3

$2.0

$2.9

$2.5

$1.5

Development capital expenditures

$35.0

$28.2

$13.9

$7.3

$4.3

Total capital expenditures

$42.3

$30.2

$16.8

$9.8

$5.8

Free cash flow1

$(38.3)

$(38.9)

$(12.1)

$(7.7)

$(11.4)

Operational

  • Silver and gold production increased 15% and 5% quarter-over-quarter to 0.9 million and 7,232 ounces, respectively. Year-over-year silver and gold production increased 22% and 40%, respectively
  • Higher silver production was primarily driven by the breakthrough of material placed on inter-lift liners in the prior period, while gold production continued to benefit from the stacking of additional run-of-mine material during the first half of the year
  • Coeur successfully completed the swap-out of the secondary crushing unit, helping the Company begin placing over-liner material on the Stage VI leach pad approximately six weeks ahead of schedule. Importantly, initial results from the new crusher have shown improvements in throughput, particle size distribution and leachability
  • The Company also completed the fourth phase of its inter-lift liner strategy late in the quarter, helping to facilitate the placement of HPGR-crushed ore on shallower portions of the Stage IV leach pad

Financial

  • Second quarter costs applicable to sales2 figures shown in the table above and highlighted below include a non-cash inventory charge of approximately $8.6 million related to a change in the Company’s recovery rate assumption on the Stage IV leach pad
  • Second quarter adjusted CAS1 for silver and gold on a co-product basis totaled $26.09 and $1,787 per ounce, respectively, compared to $19.07 and $1,300 per ounce in the prior period, largely driven by the non-cash charge as well as higher diesel and maintenance costs. Excluding the non-cash charge, second quarter adjusted CAS1 for silver and gold on a co-product basis totaled $20.13 and $1,379 per ounce, respectively
  • Capital expenditures increased 40% quarter-over-quarter to $42.3 million, reflecting an acceleration in the level of investment in the POA 11 expansion project as well as the ramp up of sustaining projects
  • Free cash flow1 in the second quarter remained relatively consistent at $(38.3) million

Exploration

  • Quarterly exploration investment totaled approximately $2.0 million ($0.9 million expensed and $1.1 million capitalized), compared to roughly $0.7 million ($0.5 million expensed and $0.2 million capitalized) in the prior period
  • Two reverse circulation rigs and two core rigs were active during the quarter. Expansion drilling tested Nevada Packard, North Rochester and Lincoln Hill, while infill drilling focused on the Rochester and Nevada Packard pits. A total of approximately 27,500 feet (8,375 meters) were drilled during the period, including 12,700 feet (3,875 meters) focused on expansion and 14,800 feet (4,500 meters) focused on infill drilling
  • Coeur plans to have up to four drill rigs active at Rochester for the remainder of the year. One core and one reverse circulation rig are expected to focus on infill targets at East Rochester as well as in the Rochester and Nevada Packard pits. Additionally, one core and one reverse circulation rig are anticipated to focus on expansion drilling at North Rochester, the southern portion of East Rochester and East Packard
  • Greenfields and expansion drilling are scheduled to continue at Lincoln Hill, Independence Hill and Gold Ridge late in the third quarter

Guidance

  • Full-year 2021 production is expected to be 3.2 – 4.4 million ounces of silver and 22,500 – 32,500 ounces of gold
  • CAS1 in 2021 are expected to be $20.00 – $22.00 per silver ounce (previously $15.00 – $17.00 per ounce) and $1,350 – $1,500 per gold ounce (previously $1,180 – $1,330 per ounce). The revised figures reflect the non-cash charge as well as higher anticipated diesel, labor and maintenance costs
  • Capital expenditures are expected to be approximately $155 – $200 million (previously $155 – $195 million)

Kensington, Alaska

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Tons milled

168,311

170,358

179,636

163,276

170,478

Average gold grade (oz/t)

0.18

0.19

0.20

0.18

0.21

Average recovery rate

92.7%

93.2%

93.0%

93.7%

92.0%

Gold ounces produced

28,322

30,681

32,990

26,797

33,058

Gold ounces sold

26,796

31,595

31,830

27,815

32,367

Average realized price per gold ounce, gross

$1,851

$1,754

$1,837

$1,917

$1,762

Treatment and refining charges per gold ounce

$30

$30

$37

$35

$57

Average realized price per gold ounce, net

$1,821

$1,724

$1,800

$1,882

$1,705

Metal sales

$48.8

$54.5

$57.2

$52.4

$55.2

Costs applicable to sales2

$29.2

$31.4

$29.3

$31.5

$30.4

Adjusted CAS per AuOz1

$1,088

$989

$919

$1,128

$934

Prepayment, working capital cash flow

$7.9

$(7.9)

$5.1

$(5.1)

$7.0

Exploration expense

$1.3

$1.1

$0.8

$3.4

$2.6

Cash flow from operating activities

$19.4

$11.0

$31.0

$9.1

$27.8

Sustaining capital expenditures (excludes capital lease payments)

$6.0

$7.2

$5.8

$5.3

$3.9

Development capital expenditures

$—

$—

$—

$—

$—

Total capital expenditures

$6.0

$7.2

$5.8

$5.3

$3.9

Free cash flow1

$13.4

$3.8

$25.2

$3.8

$23.9

Operational

  • Gold production in the second quarter totaled 28,322 ounces, compared to 30,681 ounces in the prior period and 33,058 ounces in the second quarter of 2020
  • Lower production during the quarter was driven by a modest reduction in mill throughput largely due to additional planned mill maintenance as well as slightly lower average head grade due to stope and development ore sequencing
  • Jualin accounted for approximately 20% of Kensington’s second quarter production, slightly higher than the prior period of roughly 17%, due to the processing of additional development ore

Financial

  • Adjusted CAS1 increased 10% quarter-over-quarter to $1,088 per ounce, largely driven by fewer gold ounces sold as well as additional contractor support and higher diesel prices
  • Capital expenditures decreased 17% quarter-over-quarter to $6.0 million, primarily due to lower capital development and a shift towards more expansion drilling during the period
  • Free cash flow1 in the second quarter totaled $13.4 million, including a net cash inflow of $7.9 million associated with the Company’s prepayment agreement at Kensington. Excluding the effect of the prepayment, free cash flow1 totaled approximately $5.5 million in the second quarter

Exploration

  • Exploration investment in the quarter totaled approximately $1.9 million ($1.3 million expensed and $0.6 million capitalized), compared to $2.1 million ($1.1 million expensed and $1.0 million capitalized) in the prior period
  • Two underground core rigs were active during the quarter, drilling from the Elmira development drift established in 2020. A total of approximately 32,800 feet (9,975 meters) were drilled during the period, including 21,900 feet (6,675 meters) of expansion and 10,900 feet (3,300 meters) of infill drilling
  • Infill and expansion drilling primarily focused on the Elmira vein, while expansion holes into the Johnson vein (located roughly 500 feet east of Elmira) were also completed
  • A third underground rig was added, and all three rigs are expected to remain active during the remainder of the year targeting the Elmira and Johnson veins as well as the Kensington Main, Eureka and Raven veins
  • Additionally, two surface core rigs began drilling the upper portions of the Jualin, Big Lake, Gold King and Valentine-Tremming targets in July

Guidance

  • Production in 2021 is expected to be 115,000 – 130,000 ounces of gold
  • CAS1 in 2021 are expected to be $1,010 – $1,110 per gold ounce
  • Capital expenditures are expected to be approximately $23 – $30 million

Wharf, South Dakota

(Dollars in millions, except per ounce amounts)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Ore tons placed

1,025,481

1,114,043

1,047,647

1,315,542

1,401,237

Average gold grade (oz/t)

0.032

0.030

0.024

0.025

0.032

Gold ounces produced

24,126

19,035

19,286

33,440

24,789

Silver ounces produced (000’s)

33

26

33

42

25

Gold ounces sold

23,371

18,896

21,539

33,382

23,364

Silver ounces sold (000’s)

31

26

35

41

23

Average realized price per gold ounce

$1,801

$1,791

$1,835

$1,872

$1,715

Metal sales

$42.9

$34.5

$40.3

$63.5

$40.5

Costs applicable to sales2

$23.4

$18.7

$21.4

$27.9

$22.5

Adjusted CAS per AuOz1

$963

$952

$954

$804

$804

Exploration expense

$0.1

$0.1

$0.3

$0.5

$0.1

Cash flow from operating activities

$17.3

$7.8

$14.1

$39.1

$19.1

Sustaining capital expenditures (excludes capital lease payments)

$0.3

$0.4

$1.2

$0.5

$0.3

Development capital expenditures

$1.1

$1.1

$—

$—

$—

Total capital expenditures

$1.4

$1.5

$1.2

$0.5

$0.3

Free cash flow1

$15.9

$6.3

$12.9

$38.6

$18.8

Operational

  • Gold production increased 27% quarter-over-quarter to 24,126 ounces, largely driven by the placement of higher average grade material during the first half of the year. Year-over-year gold production decreased 3%

Financial

  • Adjusted CAS1 on a by-product basis remained relatively consistent quarter-over-quarter at $963 per ounce, largely driven by higher gold ounces sold, additional material moved and processed, and increased diesel costs
  • Second quarter capital expenditures remained relatively consistent quarter-over-quarter at $1.4 million, reflecting continued investment in infill drilling and timing of sustaining projects
  • Free cash flow1 was $15.9 million in the second quarter compared to $6.3 million in the first quarter, largely driven by higher operating cash flow

Exploration

  • Exploration investment remained relatively consistent quarter-over-quarter at approximately $1.2 million (substantially all capitalized), reflecting the continuation of Coeur’s largest drilling campaign at the operation since acquisition
  • A total of approximately 38,100 feet (11,600 meters) were drilled during the period using one reverse circulation rig, focused on infill targets at the Portland Ridge – Boston claim group (located on the southern edge of the operation), and in the Flossie (located west of Portland Ridge), Sunshine (near Flossie) and Juno areas (located north of the Portland pit)
  • Coeur plans to continue drilling in the Flossie, eastern Portland Ridge and Juno areas, and expects to complete the program during the third quarter

Guidance

  • Gold production in 2021 is expected to be 85,000 – 95,000 ounces
  • CAS1 in 2021 are expected to be $960 – $1,060 per gold ounce
  • Capital expenditures are expected to be approximately $5 – $8 million

Silvertip, British Columbia

(Dollars in millions)

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Metal sales

$—

$—

$—

$—

$—

Costs applicable to sales2

$—

$—

$—

$—

$—

Exploration expense

$3.6

$2.9

$5.1

$3.9

$2.9

Cash flow from operating activities

$(9.6)

$(7.5)

$(8.2)

$(8.2)

$(14.9)

Sustaining capital expenditures (excludes capital lease payments)

$6.0

$5.7

$(0.5)

$(1.8)

$1.9

Development capital expenditures

$12.5

$4.7

$5.0

$3.9

$—

Total capital expenditures

$18.5

$10.4

$4.5

$2.1

$1.9

Free cash flow1

$(28.1)

$(17.9)

$(12.7)

$(10.3)

$(16.8)

  • Mining and processing activities were temporarily suspended at Silvertip on February 19, 2020 (unrelated to COVID-19)

Operational

  • Ongoing technical work and successful exploration results continue to bolster Coeur’s confidence in a potential expansion and restart of Silvertip. The Company is currently working with SNC-Lavalin to complete engineering for the expansion, better define the estimated capital investment and develop a new mine plan based on continued successful drilling results
  • Coeur also signed an early works construction contract with Kiewit Corporation during the quarter to (i) take advantage of the summer construction season to complete several surface projects to de-risk the schedule, (ii) help facilitate the execution of major construction, and (iii) preserve optionality for a potential restart of active mining and processing activities in 2023
  • The scope of early works includes foundation preparation and decommissioning of certain sections of the mill, primarily focused on the flotation, de-watering and filtration circuits, that would be upgraded as part of an expansion
  • The Company plans to release an updated mine plan and economic analysis for Silvertip in early 2022 and file a new technical report that will incorporate an updated reserve and resource as well as an optimized capital estimate reflecting a 1,750 tonnes per day flowsheet

Financial

  • Ongoing carrying costs in the second quarter were $6.4 million, compared to $6.9 million in the prior period
  • Capital expenditures during the second quarter totaled $18.5 million compared to $10.4 million in the prior period, largely reflecting additional work related to the potential restart and expansion of Silvertip

Exploration

  • Exploration investment in the second quarter totaled approximately $5.2 million ($3.6 million expensed and $1.6 million capitalized), compared to roughly $4.5 million ($2.9 million expensed and $1.6 million capitalized) in the prior period
  • Five core rigs were active during the quarter, three rigs were on surface and two were underground. A total of approximately 86,200 feet (26,250 meters) were drilled during the period, including 62,400 feet (19,000 meters) of expansion and 23,800 feet (7,250 meters) of infill drilling
  • Infill and expansion drilling (both from surface and underground) focused on the 65 zone (including the recently discovered Southern Silver zone), and Discovery, Camp Creek and Tour Ridge zones
  • After successfully intercepting mineralization, underground drilling ramped up with two rigs focused on expanding the 65 zone, including the Southern Silver zone
  • As modeling began to show the shape of the Southern Silver zone, a surface rig commenced infill drilling to better define the zone. Notably, it appears that the Southern Silver zone connects the Silver Creek zone (an original source of mining material) with the Discovery South zone (drilled in 2020), representing potential for meaningful resource growth at Silvertip
  • Underground drilling is scheduled to remain focused on expansion and infill targets within the Southern Silver zone over the coming months, while three to four active surface rigs are expected to continue targeting the Camp Creek, Southern Silver and Tour Ridge zones

Other

  • Coeur repurchased an existing net smelter returns royalty (“NSR”) at Silvertip for $7.0 million during the second quarter. The terms of the NSR required payment of 1.429% (plus gross up for applicable withholding taxes) of net smelter returns on the first 1,434,000 metric tonnes of mineralized material mined, and 1.00% (plus gross up for applicable withholding taxes) thereafter, from the mining lease that covers the current Silvertip mine resource base and exploration targets described in the Company’s press release published on June 15, 2021

Guidance

  • Given ongoing engineering and technical work as well as the commencement of early works with respect to a potential expansion and restart, capital expenditures are expected to total $75 – $90 million (previously $35 – $45 million) in 2021 depending on weather conditions and availability of supplies and labor

Exploration

During the second quarter, the Company drilled a record of roughly 320,400 feet (97,675 meters) at a total investment of approximately $18.6 million ($12.4 million expensed and $6.2 million capitalized), compared to roughly 256,500 feet (78,175 meters) at a total investment of approximately $14.9 million ($9.7 million expensed and $5.2 million capitalized) in the prior period. The increase in exploration activity was largely driven by a ramp up of drilling at Palmarejo, Rochester and Crown as well as the continuation of expansion and infill programs across the rest of the Company’s portfolio.

Up to four drill rigs were active at Crown during the second quarter. Three reverse circulation rigs drilled expansion holes at Daisy, SNA and C-Horst, while one diamond core rig was active at Daisy, Secret Pass, SNA and C-Horst to better characterize metallurgic and geologic domains. The Company drilled approximately 64,800 feet (19,750 meters) during the quarter, compared to approximately 40,300 feet (12,275 meters) in the prior period.

Coeur plans to continue the same pace of exploration at Crown for the remainder of the year, with three reverse circulation rigs scheduled to conduct expansion drilling within its 300-acre disturbance permit on the property. The Company also expects to receive an amended disturbance permit during the third quarter to begin expanding C-Horst to the south. A core rig is planned to be used intermittently at Crown, shared with Rochester, to infill specific resource shapes to gather additional metallurgical and engineering information.

Coeur’s exploration programs continue to generate meaningful new discoveries and identify future growth opportunities. Accordingly, the Company expects to invest $70 – $80 million in exploration in 2021 (previously $63 – $72 million), including $52 – $57 million (previously $46 – $51 million) and $18 – $23 million (previously $17 – $21 million) of expensed and capitalized drilling, respectively. The increase in expected expensed exploration reflects additional planned expansion drilling at Silvertip and Crown, while higher capitalized exploration is largely related to additional planned infill drilling at Kensington.

2021 Production Guidance

 

 

 

Gold

 

Silver

 

 

 

(oz)

 

(K oz)

Palmarejo

 

 

100,000 – 110,000

 

6,500 – 7,750

Rochester

 

 

22,500 – 32,500

 

3,200 – 4,400

Kensington

 

 

115,000 – 130,000

 

Wharf

 

 

85,000 – 95,000

 

Total

 

 

322,500 – 367,500

 

9,700 – 12,150

2021 Costs Applicable to Sales Guidance

 

Previous

 

Updated

 

Gold

Silver

 

Gold

Silver

 

($/oz)

($/oz)

 

($/oz)

($/oz)

Palmarejo (co-product)

$710 – $810

$11.00 – $12.00

 

$635 – $735

$11.75 – $12.75

Rochester (co-product)

$1,180 – $1,330

$15.00 – $17.00

 

$1,350 – $1,500

$20.00 – $22.00

Kensington

$1,010 – $1,110

 

$1,010 – $1,110

Wharf (by-product)

$960 – $1,060

 

$960 – $1,060

2021 Capital, Exploration and G&A Guidance

 

 

 

Previous

 

Updated

 

 

 

($M)

 

($M)

Capital Expenditures, Sustaining

 

 

$80 – $100

 

$80 – $100

Capital Expenditures, Development

 

 

$180 – $225

 

$220 – $275

Exploration, Expensed

 

 

$46 – $51

 

$52 – $57

Exploration, Capitalized

 

 

$17 – $21

 

$18 – $23

General & Administrative Expenses

 

 

$37 – $41

 

$40 – $45

 

Note: The Company’s previous guidance assumes $1,850/oz gold and $24.00/oz silver as well as CAD of 1.27 and MXN of 19.50, and exclude the impact of any metal sales or foreign exchange hedges. The Company’s updated guidance reflects realized prices and hedge gains/losses through May 31, 2021, estimated prices of $1,750/oz gold and $25.00/oz silver as well as CAD of 1.20 and MXN of 20.50.

Financial Results and Conference Call

Coeur will host a conference call to discuss its second quarter 2021 financial results on July 29, 2021 at 11:00 a.m. Eastern Time.

Dial-In Numbers:

 

(855) 560-2581 (U.S.)

 

 

(855) 669-9657 (Canada)

 

 

(412) 542-4166 (International)

Conference ID:

 

Coeur Mining

Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice President and Chief Financial Officer, Michael “Mick” Routledge, Senior Vice President and Chief Operating Officer, and other members of management. A replay of the call will be available through August 5, 2021.

Replay numbers:

 

(877) 344-7529 (U.S.)

 

 

(855) 669-9658 (Canada)

 

 

(412) 317-0088 (International)

Conference ID:

 

101 57 175

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Cautionary Statements

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding strategy, cash flow, capital allocation and investment, returns, results, value, liquidity, exploration and development efforts and plans, resource growth, expectations regarding the potential restart at Silvertip, expectations regarding the Rochester POA 11 expansion project, technical report timing, hedging strategies, the impact of inflation, anticipated production, costs and expenses, COVID-19 mitigation efforts, and operations at Palmarejo, Rochester, Wharf, Kensington and Silvertip. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated production, cost and expense levels are not attained, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically-related conditions), changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, the uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and, grade variability, any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), the uncertainties inherent in the estimation of mineral reserves, changes that could result from Coeur’s future acquisition of new mining properties or businesses, the loss of access or insolvency of any third-party refiner or smelter to which Coeur markets its production, the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production and on the communities where we operate, the effects of environmental and other governmental regulations and government shut-downs, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities. This does not constitute an offer of any securities for sale.

Christopher Pascoe, Coeur’s Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur’s mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur’s properties, including the recently-filed Technical Report for Rochester, as filed on SEDAR at www.sedar.com.

Non-U.S. GAAP Measures

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow before changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (zinc or lead). We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss) and adjusted costs applicable to sales per ounce (gold and silver) and pound (zinc and lead) are important measures in assessing the Company’s overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2020 and our Form 10-Q for the quarter ended March 31, 2021.

Notes

1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow before changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (lead and zinc) are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Free cash flow is defined as cash flow from operating activities less capital expenditures. Please see table in Appendix for the calculation of consolidated free cash flow.
2. Excludes amortization.
3. Includes capital leases. Net of debt issuance costs and premium received.
4. As of June 30, 2021, Coeur had $35.0 million in outstanding letters of credit under its RCF.

Average Spot Prices

 

2Q 2021

1Q 2021

4Q 2020

3Q 2020

2Q 2020

Average Gold Spot Price Per Ounce

$

1,816

 

$

1,794

 

$

1,874

 

$

1,908

 

$

1,711

 

Average Silver Spot Price Per Ounce

$

26.69

 

$

26.26

 

$

24.39

 

$

24.26

 

$

16.38

 

Average Zinc Spot Price Per Pound

$

1.32

 

$

1.25

 

$

1.19

 

$

1.06

 

$

0.89

 

Average Lead Spot Price Per Pound

$

0.97

 

$

0.91

 

$

0.86

 

$

0.85

 

$

0.76

 

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

June 30,
2021

 

December 31,
2020

ASSETS

In thousands, except share data

CURRENT ASSETS

 

 

 

Cash and cash equivalents

$

124,075

 

 

$

92,794

 

Receivables

22,867

 

 

23,484

 

Inventory

54,471

 

 

51,210

 

Ore on leach pads

81,773

 

 

74,866

 

Prepaid expenses and other

20,949

 

 

27,254

 

 

304,135

 

 

269,608

 

NON-CURRENT ASSETS

 

 

 

Property, plant and equipment, net

272,558

 

 

230,139

 

Mining properties, net

786,695

 

 

716,790

 

Ore on leach pads

73,487

 

 

81,963

 

Restricted assets

9,274

 

 

9,492

 

Equity securities

174,370

 

 

12,943

 

Receivables

26,642

 

 

26,447

 

Other

60,847

 

 

56,595

 

TOTAL ASSETS

$

1,708,008

 

 

$

1,403,977

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts payable

$

107,362

 

 

$

90,577

 

Accrued liabilities and other

89,311

 

 

119,158

 

Debt

28,876

 

 

22,074

 

Reclamation

2,299

 

 

2,299

 

 

227,848

 

 

234,108

 

NON-CURRENT LIABILITIES

 

 

 

Debt

385,370

 

 

253,427

 

Reclamation

140,936

 

 

136,975

 

Deferred tax liabilities

39,598

 

 

34,202

 

Other long-term liabilities

45,847

 

 

51,786

 

 

611,751

 

 

476,390

 

COMMITMENTS AND CONTINGENCIES

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, par value $0.01 per share; authorized 300,000,000 shares, 257,046,847 issued and outstanding at June 30, 2021 and 243,751,283 at December 31, 2020

2,570

 

 

2,438

 

Additional paid-in capital

3,732,296

 

 

3,610,297

 

Accumulated other comprehensive income (loss)

7,457

 

 

(11,136

)

Accumulated deficit

(2,873,914

)

 

(2,908,120

)

 

868,409

 

 

693,479

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,708,008

 

 

$

1,403,977

 

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

In thousands, except share data

Revenue

$

214,858

 

 

$

154,249

 

 

$

416,975

 

 

$

327,416

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

Costs applicable to sales(1)

132,595

 

 

90,015

 

 

240,742

 

 

208,932

 

Amortization

31,973

 

 

27,876

 

 

61,910

 

 

64,038

 

General and administrative

10,467

 

 

8,616

 

 

22,021

 

 

17,536

 

Exploration

12,446

 

 

11,855

 

 

22,112

 

 

18,241

 

Pre-development, reclamation, and other

12,738

 

 

18,675

 

 

26,450

 

 

25,230

 

Total costs and expenses

200,219

 

 

157,037

 

 

373,235

 

 

333,977

 

OTHER INCOME (EXPENSE), NET

 

 

 

 

 

 

 

Loss on debt extinguishment

 

 

 

 

(9,173

)

 

 

Fair value adjustments, net

37,239

 

 

10,067

 

 

33,440

 

 

1,248

 

Interest expense, net of capitalized interest

(5,093

)

 

(5,765

)

 

(10,003

)

 

(10,893

)

Other, net

701

 

 

121

 

 

4,328

 

 

2,002

 

Total other income (expense), net

32,847

 

 

4,423

 

 

18,592

 

 

(7,643

)

Income (loss) before income and mining taxes

47,486

 

 

1,635

 

 

62,332

 

 

(14,204

)

Income and mining tax (expense) benefit

(15,340

)

 

(2,844

)

 

(28,126

)

 

1,095

 

NET INCOME (LOSS)

$

32,146

 

 

$

(1,209

)

 

$

34,206

 

 

$

(13,109

)

OTHER COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

Change in fair value of derivative contracts designated as cash flow hedges

(2,982

)

 

(7,097

)

 

24,376

 

 

(6,891

)

Reclassification adjustments for realized (gain) loss on cash flow hedges

(3,061

)

 

(679

)

 

(5,783

)

 

(679

)

Other comprehensive income (loss)

(6,043

)

 

(7,776

)

 

18,593

 

 

(7,570

)

COMPREHENSIVE INCOME (LOSS)

$

26,103

 

 

$

(8,985

)

 

$

52,799

 

 

$

(20,679

)

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

Basic

$

0.13

 

 

$

(0.01

)

 

$

0.14

 

 

$

(0.05

)

 

 

 

 

 

 

 

 

Diluted

$

0.13

 

 

$

(0.01

)

 

$

0.14

 

 

$

(0.05

)

(1) Excludes amortization.

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

 

In thousands

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income (loss)

$

32,146

 

 

$

(1,209

)

 

$

34,206

 

 

$

(13,109

)

Adjustments:

 

 

 

 

 

 

 

Amortization

31,973

 

 

27,876

 

 

61,910

 

 

64,038

 

Accretion

2,965

 

 

2,908

 

 

5,870

 

 

5,755

 

Deferred taxes

5,100

 

 

(1,545

)

 

5,224

 

 

(7,032

)

Loss on debt extinguishment

 

 

 

 

9,173

 

 

 

Fair value adjustments, net

(37,239

)

 

(10,067

)

 

(33,440

)

 

(1,248

)

Stock-based compensation

3,256

 

 

2,287

 

 

7,512

 

 

4,300

 

Gain on modification of right of use lease

 

 

 

 

 

 

(4,051

)

Write-downs

 

 

5,208

 

 

 

 

15,589

 

Deferred revenue recognition

(7,255

)

 

(8,134

)

 

(15,601

)

 

(15,682

)

Other

496

 

 

(913

)

 

(1,832

)

 

(2,005

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

961

 

 

(1,536

)

 

1,960

 

 

(2,349

)

Prepaid expenses and other current assets

1,328

 

 

1,081

 

 

673

 

 

735

 

Inventory and ore on leach pads

3,259

 

 

(8,056

)

 

(14,227

)

 

(29,981

)

Accounts payable and accrued liabilities

21,069

 

 

2,047

 

 

(7,728

)

 

(13,004

)

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

58,059

 

 

9,947

 

 

53,700

 

 

1,956

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Capital expenditures

(78,223

)

 

(16,682

)

 

(137,647

)

 

(38,890

)

Proceeds from the sale of assets

968

 

 

9

 

 

5,556

 

 

4,515

 

Purchase of investments

(876

)

 

 

 

(876

)

 

 

Sale of investments

 

 

19,802

 

 

935

 

 

19,802

 

Other

(13

)

 

(183

)

 

(30

)

 

(200

)

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

(78,144

)

 

2,946

 

 

(132,062

)

 

(14,773

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Issuance of notes and bank borrowings, net of issuance costs

 

 

100,000

 

 

367,493

 

 

150,000

 

Payments on debt, finance leases, and associated costs

(9,611

)

 

(95,713

)

 

(253,578

)

 

(101,614

)

Silvertip contingent consideration

 

 

 

 

 

 

(18,750

)

Other

(233

)

 

141

 

 

(4,158

)

 

(1,832

)

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(9,844

)

 

4,428

 

 

109,757

 

 

27,804

 

Effect of exchange rate changes on cash and cash equivalents

(56

)

 

929

 

 

(107

)

 

303

 

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(29,985

)

 

18,250

 

 

31,288

 

 

15,290

 

Cash, cash equivalents and restricted cash at beginning of period

155,443

 

 

54,058

 

 

94,170

 

 

57,018

 

Cash, cash equivalents and restricted cash at end of period

$

125,458

 

 

$

72,308

 

 

$

125,458

 

 

$

72,308

 

Adjusted EBITDA Reconciliation

 

(Dollars in thousands except per share amounts)

LTM 2Q
2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Net income (loss)

$

72,942

 

 

$

32,146

 

 

$

2,060

 

 

$

11,880

 

 

$

26,856

 

 

$

(1,209

)

Interest expense, net of capitalized interest

19,818

 

 

5,093

 

 

4,910

 

 

4,719

 

 

5,096

 

 

5,765

 

Income tax provision (benefit)

66,266

 

 

15,340

 

 

12,786

 

 

25,027

 

 

13,113

 

 

2,844

 

Amortization

129,259

 

 

31,973

 

 

29,937

 

 

35,133

 

 

32,216

 

 

27,876

 

EBITDA

288,285

 

 

84,552

 

 

49,693

 

 

76,759

 

 

77,281

 

 

35,276

 

Fair value adjustments, net

(39,793

)

 

(37,239

)

 

3,799

 

 

(4,110

)

 

(2,243

)

 

(10,067

)

Foreign exchange (gain) loss

3,452

 

 

499

 

 

773

 

 

1,581

 

 

599

 

 

(11

)

Asset retirement obligation accretion

11,869

 

 

2,965

 

 

2,905

 

 

3,031

 

 

2,968

 

 

2,908

 

Inventory adjustments and write-downs

715

 

 

267

 

 

572

 

 

105

 

 

(230

)

 

793

 

(Gain) loss on sale of assets and securities

(1,807

)

 

(621

)

 

(4,053

)

 

391

 

 

2,476

 

 

(9

)

Loss on debt extinguishment

9,172

 

 

 

 

9,172

 

 

 

 

 

 

 

Silvertip inventory write-down

1,232

 

 

 

 

 

 

 

 

1,232

 

 

2,104

 

Silvertip temporary suspension costs

1,930

 

 

 

 

 

 

1,092

 

 

838

 

 

1,725

 

COVID-19 costs

14,495

 

 

2,315

 

 

3,005

 

 

5,138

 

 

4,037

 

 

6,108

 

Novation

3,819

 

 

 

 

 

 

 

 

3,819

 

 

 

Wharf inventory write-down

 

 

 

 

 

 

 

 

 

 

3,323

 

Adjusted EBITDA

$

293,369

 

 

$

52,738

 

 

$

65,866

 

 

$

83,987

 

 

$

90,777

 

 

$

42,150

 

Revenue

$

875,020

 

 

$

214,858

 

 

$

202,117

 

 

$

228,317

 

 

$

229,728

 

 

$

154,249

 

Adjusted EBITDA Margin

34

%

 

25

%

 

33

%

 

37

%

 

40

%

 

27

%

Adjusted Net Income (Loss) Reconciliation

 

(Dollars in thousands except per share amounts)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Net income (loss)

$

32,146

 

 

$

2,060

 

 

$

11,880

 

 

$

26,856

 

 

$

(1,209

)

Fair value adjustments, net

(37,239

)

 

3,799

 

 

(4,110

)

 

(2,243

)

 

(10,067

)

Foreign exchange loss (gain)

1,503

 

 

(43

)

 

4,692

 

 

1,233

 

 

626

 

(Gain) loss on sale of assets and securities

(621

)

 

(4,053

)

 

391

 

 

2,476

 

 

(9

)

Loss on debt extinguishment

 

 

9,172

 

 

 

 

 

 

 

Silvertip inventory write-down

 

 

 

 

 

 

1,232

 

 

2,104

 

Silvertip temporary suspension costs

 

 

 

 

1,092

 

 

838

 

 

1,725

 

COVID-19 costs

2,315

 

 

3,005

 

 

5,138

 

 

4,037

 

 

6,108

 

Novation

 

 

 

 

 

 

3,819

 

 

 

Wharf inventory write-down

 

 

 

 

 

 

 

 

3,323

 

Tax effect of adjustments

1,056

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

(840

)

 

$

13,940

 

 

$

19,083

 

 

$

38,248

 

 

$

2,601

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) per share – Basic

$

0.00

 

 

$

0.06

 

 

$

0.08

 

 

$

0.16

 

 

$

0.01

 

Adjusted net income (loss) per share – Diluted

$

0.00

 

 

$

0.06

 

 

$

0.08

 

 

$

0.16

 

 

$

0.01

 

Consolidated Free Cash Flow Reconciliation

 

(Dollars in thousands)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Cash flow from operations

$

58,059

 

 

$

(4,359

)

 

$

67,289

 

 

$

79,464

 

 

$

9,947

 

Capital expenditures

78,223

 

 

59,424

 

 

37,393

 

 

22,996

 

 

16,682

 

Free cash flow

$

(20,164

)

 

$

(63,783

)

 

$

29,896

 

 

$

56,468

 

 

$

(6,735

)

Consolidated Operating Cash Flow

Before Changes in Working Capital Reconciliation

 

(Dollars in thousands)

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

Cash provided by (used in) operating activities

$

58,059

 

 

$

(4,359

)

 

$

67,289

 

 

$

79,464

 

 

$

9,947

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Receivables

(961

)

 

(999

)

 

5,617

 

 

1,497

 

 

1,536

 

Prepaid expenses and other

(1,328

)

 

655

 

 

1,435

 

 

1,921

 

 

(1,081

)

Inventories

(3,259

)

 

17,486

 

 

1,491

 

 

3,066

 

 

8,056

 

Accounts payable and accrued liabilities

(21,069

)

 

28,797

 

 

(17,331

)

 

(28,570

)

 

(2,047

)

Operating cash flow before changes in working capital

$

31,442

 

 

$

41,580

 

 

$

58,501

 

 

$

57,378

 

 

$

16,411

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended June 30, 2021

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

50,189

 

 

$

44,537

 

 

$

41,913

 

 

$

26,437

 

 

$

1,185

 

 

$

164,261

 

Amortization

(8,271

)

 

(6,506

)

 

(12,710

)

 

(2,994

)

 

(1,185

)

 

(31,666

)

Costs applicable to sales

$

41,918

 

 

$

38,031

 

 

$

29,203

 

 

$

23,443

 

 

$

 

 

$

132,595

 

Inventory Adjustments

155

 

 

(272

)

 

(57

)

 

(91

)

 

 

 

(265

)

By-product credit

 

 

 

 

 

 

(839

)

 

 

 

(839

)

Adjusted costs applicable to sales

$

42,073

 

 

$

37,759

 

 

$

29,146

 

 

$

22,513

 

 

$

 

 

$

131,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

30,516

 

 

7,818

 

 

26,796

 

 

23,371

 

 

 

 

88,501

 

Silver ounces

1,639,620

 

 

911,861

 

 

 

 

31,421

 

 

 

 

2,582,902

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

48

%

 

37

%

 

100

%

 

100

%

 

 

 

 

Silver

52

%

 

63

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

662

 

 

$

1,787

 

 

$

1,088

 

 

$

963

 

 

 

 

 

Silver ($/oz)

$

13.34

 

 

$

26.09

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended March 31, 2021

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

43,047

 

 

$

27,610

 

 

$

44,839

 

 

$

21,207

 

 

$

1,086

 

 

$

137,789

 

Amortization

(9,059

)

 

(3,577

)

 

(13,445

)

 

(2,475

)

 

(1,086

)

 

(29,642

)

Costs applicable to sales

$

33,988

 

 

$

24,033

 

 

$

31,394

 

 

$

18,732

 

 

$

 

 

$

108,147

 

Inventory Adjustments

(57

)

 

(313

)

 

(151

)

 

(52

)

 

 

 

(573

)

By-product credit

 

 

 

 

 

 

(700

)

 

 

 

(700

)

Adjusted costs applicable to sales

$

33,931

 

 

$

23,720

 

 

$

31,243

 

 

$

17,980

 

 

$

 

 

$

106,874

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

25,687

 

 

6,934

 

 

31,595

 

 

18,896

 

 

 

 

83,112

 

Silver ounces

1,637,695

 

 

771,354

 

 

 

 

26,455

 

 

 

 

2,435,504

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

47

%

 

38

%

 

100

%

 

100

%

 

 

 

 

Silver

53

%

 

62

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

621

 

 

$

1,300

 

 

$

989

 

 

$

952

 

 

 

 

 

Silver ($/oz)

$

10.98

 

 

$

19.07

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended December 31, 2020

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

48,672

 

 

$

36,828

 

 

$

42,486

 

 

$

24,300

 

 

$

 

 

$

152,286

 

Amortization

(12,516

)

 

(5,112

)

 

(13,179

)

 

(2,848

)

 

 

 

(33,655

)

Costs applicable to sales

$

36,156

 

 

$

31,716

 

 

$

29,307

 

 

$

21,452

 

 

$

 

 

$

118,631

 

Inventory Adjustments

(24

)

 

24

 

 

(56

)

 

(49

)

 

 

 

(105

)

By-product credit

 

 

 

 

 

 

(864

)

 

 

 

(864

)

Adjusted costs applicable to sales

$

36,132

 

 

$

31,740

 

 

$

29,251

 

 

$

20,539

 

 

$

 

 

$

117,662

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

35,359

 

 

8,672

 

 

31,830

 

 

21,539

 

 

 

 

97,400

 

Silver ounces

1,766,714

 

 

912,335

 

 

 

 

35,794

 

 

 

 

2,714,843

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

53

%

 

42

%

 

100

%

 

100

%

 

 

 

 

Silver

47

%

 

58

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

542

 

 

$

1,537

 

 

$

919

 

 

$

954

 

 

 

 

 

Silver ($/oz)

$

9.61

 

 

$

20.18

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended September 30, 2020

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

46,163

 

 

$

22,382

 

 

$

43,053

 

 

$

31,887

 

 

$

1,185

 

 

$

144,670

 

Amortization

(11,912

)

 

(3,278

)

 

(11,523

)

 

(4,000

)

 

(1,185

)

 

(31,898

)

Costs applicable to sales

$

34,251

 

 

$

19,104

 

 

$

31,530

 

 

$

27,887

 

 

$

 

 

$

112,772

 

Inventory Adjustments

(100

)

 

517

 

 

(141

)

 

(46

)

 

 

 

230

 

By-product credit

 

 

 

 

 

 

(1,007

)

 

 

 

(1,007

)

Adjusted costs applicable to sales

$

34,151

 

 

$

19,621

 

 

$

31,389

 

 

$

26,834

 

 

$

 

 

$

111,995

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

27,252

 

 

6,834

 

 

27,815

 

 

33,382

 

 

 

 

95,283

 

Silver ounces

1,765,371

 

 

785,887

 

 

 

 

40,521

 

 

 

 

2,591,779

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

48

%

 

40

%

 

100

%

 

100

%

 

 

 

 

Silver

52

%

 

60

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

602

 

 

$

1,148

 

 

$

1,128

 

 

$

804

 

 

 

 

 

Silver ($/oz)

$

10.06

 

 

$

14.98

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales

for Three Months Ended June 30, 2020

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

26,095

 

 

$

21,348

 

 

$

43,235

 

 

$

25,653

 

 

$

1,231

 

 

$

117,562

 

Amortization

(7,270

)

 

(3,012

)

 

(12,853

)

 

(3,181

)

 

(1,231

)

 

(27,547

)

Costs applicable to sales

$

18,825

 

 

$

18,336

 

 

$

30,382

 

 

$

22,472

 

 

$

 

 

$

90,015

 

Inventory Adjustments

(106

)

 

(566

)

 

(139

)

 

(3,304

)

 

 

 

(4,115

)

By-product credit

 

 

 

 

 

 

(385

)

 

 

 

(385

)

Adjusted costs applicable to sales

$

18,719

 

 

$

17,770

 

 

$

30,243

 

 

$

18,783

 

 

$

 

 

$

85,515

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

16,924

 

 

5,278

 

 

32,367

 

 

23,364

 

 

 

 

77,933

 

Silver ounces

874,642

 

 

723,679

 

 

 

 

22,707

 

 

 

 

1,621,028

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

62

%

 

44

%

 

100

%

 

100

%

 

 

 

 

Silver

38

%

 

56

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

686

 

 

$

1,481

 

 

$

934

 

 

$

804

 

 

 

 

 

Silver ($/oz)

$

8.13

 

 

$

13.75

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales Adjusted for Recovery Rate Adjustment

for Three Months Ended June 30, 2021

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

 

Silvertip

 

Total

Costs applicable to sales, including amortization (U.S. GAAP)

$

50,189

 

 

$

44,537

 

 

$

41,913

 

 

$

26,437

 

 

$

1,185

 

 

$

164,261

 

Amortization

(8,271

)

 

(6,506

)

 

(12,710

)

 

(2,994

)

 

(1,185

)

 

(31,666

)

Costs applicable to sales

$

41,918

 

 

$

38,031

 

 

$

29,203

 

 

$

23,443

 

 

$

 

 

$

132,595

 

Inventory Adjustments

155

 

 

(272

)

 

(57

)

 

(91

)

 

 

 

(265

)

Rochester recovery rate adjustment

 

 

(8,628

)

 

 

 

 

 

 

 

 

By-product credit

 

 

 

 

 

 

(839

)

 

 

 

(839

)

Adjusted costs applicable to sales

$

42,073

 

 

$

29,131

 

 

$

29,146

 

 

$

22,513

 

 

$

 

 

$

131,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

30,516

 

 

7,818

 

 

26,796

 

 

23,371

 

 

 

 

88,501

 

Silver ounces

1,639,620

 

 

911,861

 

 

 

 

31,421

 

 

 

 

2,582,902

 

Zinc pounds

 

 

 

 

 

 

 

 

 

 

 

Lead pounds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

48

%

 

37

%

 

100

%

 

100

%

 

 

 

 

Silver

52

%

 

63

%

 

 

 

 

 

%

 

 

Zinc

 

 

 

 

 

 

 

 

%

 

 

Lead

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

662

 

 

$

1,379

 

 

$

1,088

 

 

$

963

 

 

 

 

 

Silver ($/oz)

$

13.34

 

 

$

20.13

 

 

 

 

 

 

$

 

 

 

Zinc ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Lead ($/lb)

 

 

 

 

 

 

 

 

$

 

 

 

Reconciliation of Costs Applicable to Sales for Updated 2021 Guidance

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

Costs applicable to sales, including amortization (U.S. GAAP)

$

200,530

 

 

$

122,480

 

 

$

190,150

 

 

$

102,610

 

Amortization

(37,530

)

 

(14,930

)

 

(60,800

)

 

(10,910

)

Costs applicable to sales

$

163,000

 

 

$

107,550

 

 

$

129,350

 

 

$

91,700

 

By-product credit

 

 

 

 

 

 

(2,730

)

Adjusted costs applicable to sales

$

163,000

 

 

$

107,550

 

 

$

129,350

 

 

$

88,970

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

Gold ounces

110,000

 

 

29,110

 

 

127,500

 

 

89,200

 

Silver ounces

7,021,200

 

 

3,312,230

 

 

 

 

106,150

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

Gold

46%

 

38%

 

100%

 

100%

Silver

54%

 

62%

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

Gold ($/oz)

$635 – $735

 

$1,350 – $1,500

 

$1,010 – $1,110

 

$960 – $1,060

Silver ($/oz)

$11.75 – $12.75

 

$20.00 – $22.00

 

 

 

 

Reconciliation of Costs Applicable to Sales for Previous 2021 Guidance

 

In thousands (except metal sales, per ounce or per pound amounts)

Palmarejo

 

Rochester

 

Kensington

 

Wharf

Costs applicable to sales, including amortization (U.S. GAAP)

$

196,255

 

 

$

105,557

 

 

$

188,349

 

 

$

99,746

 

Amortization

(39,208

)

 

(15,899

)

 

(59,756

)

 

(11,524

)

Costs applicable to sales

$

157,047

 

 

$

89,658

 

 

$

128,593

 

 

$

88,222

 

By-product credit

 

 

 

 

 

 

(2,255

)

Adjusted costs applicable to sales

$

157,047

 

 

$

89,658

 

 

$

128,593

 

 

$

85,967

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

Gold ounces

107,900

 

 

27,200

 

 

127,000

 

 

89,000

 

Silver ounces

7,128,000

 

 

3,807,000

 

 

 

 

93,000

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

Gold

49%

 

36%

 

100%

 

100%

Silver

51%

 

64%

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

Gold ($/oz)

$710 – $810

 

$1,180 – $1,330

 

$1,010 – $1,110

 

$960 – $1,060

Silver ($/oz)

$11.00 – $12.00

 

$15.00 – $17.00

 

 

 

 

 

Contacts

Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, IL 60603
Attention: Paul DePartout, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com

Comstock Forms Joint Venture with Lakeview Energy


Comstock Forms Joint Venture with Lakeview Energy

 

Acquires 50% Stake in 200,000 Pound Per Day Hemp Extraction, Remediation, and Refinement Facility

VIRGINIA CITY, NEVADA, July 29, 2021 – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced the execution of a series of agreements with Lakeview Energy LLC (“Lakeview”) and its subsidiaries, pursuant to which the Company acquired 50% of the equity of Lakeview’s subsidiary, LP Biosciences LLC (“LPB”), and agreed to provide the financing needed to retrofit LPB’s pre-existing industrial scale solvent extraction and valorization facility in Merrill, Iowa (“LPB Facility”), for the production of an array of wholesale products from up to 200,000 pounds per day of industrial hemp. Comstock issued 3,500,000 restricted shares of its common stock to LPB in connection with its acquisition and financing commitments, and simultaneously acquired 100% of MANA Corporation (“MANA”), an industrial hemp technology development, marketing, and management company, for 4,200,000 restricted shares of Comstock common stock.

Industrial Scale Infrastructure

Industrial hemp is an extraordinary natural resource with tens of thousands of known applications, including food, feed, fuel, and fiber, and an array of emerging applications in batteries, bioplastics, and other renewable alternatives to fossil fuel derived products. However, hemp’s ability to produce over 400 natural phytochemicals, such as cannabidiol (“CBD”) and cannabigerol (“CBG”), has recently garnered significant attention as some of those chemicals are seen to have compelling potential in health and wellness applications. The corresponding green rush propelled global demand and sales of industrial hemp products to an estimated $1.9 billion as of 2020, and the industry is expected to grow to $6.9 billion worldwide by 2025, according to Hemp Industry Daily.

“The processing infrastructure needed to achieve those aspirations does not exist today at the scales and sophistication expected of mature supply chains for comparable commodities,” said MANA’s Chief Executive Officer, William McCarthy. “The absence of large scale capacity represents the hemp industry’s most significant bottleneck today. MANA is addressing that deficiency by acquiring and partnering with experienced agriproducts management teams and pre-existing industrial scale facilities in adjacent agricultural markets. We are excited to do so today with Comstock, Lakeview, and the LPB Facility, and we’re looking forward to making a market leading contribution to the debottlenecking and evolution of the industry.”

Mature Agriproducts Management

Lakeview is an experienced agriproducts management company that owns and operates three renewable fuels facilities, including two 55 million gallon dry mill corn ethanol facilities located in Ohio and Iowa, and a 10 million gallon per year biodiesel production facility located in Missouri. Importantly, LPB’s LPB Facility is ideally co-located with Lakeview’s ethanol facility in Iowa, where the two facilities can exploit operational and other synergies to maximize throughput, profitability, and cash flow. Comstock’s and MANA’s agreements with Lakeview call for Lakeview to provide construction, operating, administrative, logistics, commodities, risk management and other services to LPB as the parties work together to build, operate and grow the LPB Facility. MANA additionally agreed to provide a suite of complimentary technology, marketing and other management services, with a focus on acquiring and using pre-existing and new feedstock and offtake arrangements to fill the LPB Facility.

“Industrial hemp has remarkable potential in several important respects, including its potential for new jobs and stimulating economic, environmental and social value creation in our community,” said Jim Galvin, Lakeview’s Chief Executive Officer. “We’re pleased to partner with Comstock and MANA as we upgrade and use the LPB Facility to provide comprehensive hemp extraction, remediation, and refinement services at scales that are currently unheard of in the hemp industry.”

Industry Leading Scale, Quality, Compliance, and Flexibility

Comstock’s Executive Chairman and Chief Executive Officer, Corrado DeGasperis, added: “We are proud to have assembled a world class asset with a team of industry veterans, process engineers, and partners to rapidly retrofit and commence operations with the LPB Facility, thereby setting a global standard for quality, compliance, consistency, flexibility and speed at an extraordinary scale. Once retrofits are complete in mid-2022, the LPB Facility will generate significant free cash flow by servicing the most astute, demanding, and rapidly growing buyers of wholesale hemp products with custom tailored solutions.”

The LPB Facility is conservatively expected to scale up to its initial nameplate capacity exceeding 200,000 pounds per day and 36,500 tons per year of industrial hemp over its first three years of operations, as it extracts, remediates, and refines oil from industrial hemp to generate annualized revenues exceeding $53,000,000, $154,000,000, and $409,000,000 per year during LPB’s first, second, and third full years of operations, respectively, as shown in the following excerpt from LPB’s internal projections:

Ecosystem of Strategic Feedstocks, Processes and Products

DeGasperis concluded: “Comstock is focused on the rapid and simultaneous maximization of financial, natural, and social impact, in large part by building an ecosystem of strategic extraction and valorization facilities with complimentary feedstocks and products. In this example, the LPB Facility’s revenue estimates are based only on the oil fraction of industrial hemp, which corresponds to a small portion of total feedstock biomass. The rest of that biomass is mostly comprised of cellulose with many known co-product applications, as well as some very exciting new applications that we are actively evaluating for use in our existing and planned new decarbonization efforts.”

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future operating margins; available resources; environmental conservation outcomes; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact Information    
Comstock Mining Inc.

P.O. Box 1118

Virginia City, NV 89440

www.comstockmining.com

Corrado De Gasperis

Executive Chairman & CEO

Tel (775) 847-4755

degasperis@comstockmining.com

Zach Spencer

Director of External Relations

Tel (775) 847-5272 Ext.151

questions@comstockmining.com

Virtual Roadshow with Chakana Copper (CHKKF)(PERU.V) CEO David Kelley


Chakana Copper CEO David Kelley makes a formal corporate presentation. Afterwards, he is joined by Noble Capital Markets Senior Research Analyst Mark Reichman for a Q & A session.

Research, News, and Advanced Market Data on CHKKF


Information on upcoming live virtual roadshows

About Chakana Copper

Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 55,000 metres of exploration and resource definition drilling has been completed since 2017, testing 15 of 110 total exploration targets, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

Great Bear Resources Ltd. (GTBAF)(GBR:CA) – Phase 2 Drilling Expected to Commence in August

Thursday, July 29, 2021

Great Bear Resources Ltd. (GTBAF)(GBR:CA)
Phase 2 Drilling Expected to Commence in August

Noble Capital Markets research on Great Bear Resources is published under ticker symbols GTBAF and GBR:CA. The price target is in USD and based on ticker symbol GTBAF. Great Bear Resources Ltd is a gold exploration company. It explores for mineral properties in the Red Lake District in Ontario, Canada. Its property portfolio includes Great Bear’s Red Lake Properties with the flagship Dixie project, Pakwash property, and Sobel property.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Completion of Phase 1 drilling. Since May 2019, Great Bear has completed 440 drill holes, representing 222,500 meters of drilling, at the LP Fault. The company’s Phase 1 drill program is largely complete to an average of 450 meters depth over ~4 kilometers of strike length. Of the 440 drill holes, results for 109 remaining are expected to be released during the next several months. The company expects to publish a maiden mineral resource estimate by the end of the first quarter of 2022. In total, Great Bear has completed 630 drill holes into all four gold zones since drilling commenced in the summer of 2017.

    Phase 2 expected to commence in August.  Great Bear expects to begin Phase 2 drilling in the second week of August. The program will include expansion drilling of the LP Fault below 450 meters depth and along strike, additional infill drilling of the upper 450 meters of the LP Fault, expansion and infill drilling of the Hinge, Limb, and Arrow zones, and testing of new regional targets …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Chakana Copper Corp (CHKKF)(PERU:CA) – Impressive Drill Results Among Four Targets at Soledad

Wednesday, July 28, 2021

Chakana Copper Corp (CHKKF)(PERU:CA)
Impressive Drill Results Among Four Targets at Soledad

Noble Capital Markets research on Chakana Copper Corp is published under ticker symbols CHKKF and PERU:CA. The price target is in USD and based on ticker symbol CHKKF. Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the high-grade gold-copper-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 33,353 metres of drilling has been completed to-date, testing nine (9) of twenty-three (23) confirmed breccia pipes with more than 92 total targets. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Latest drill results. Chakana Copper released results from 9 resource definition and exploration holes, representing 1,993.2 meters of drilling, at the Huancarama East, Paloma West, Bx1, and Bx7 tourmaline breccia pipe discoveries. Mineralization was encountered in all holes drilled. The drilling program continues to yield impressive results and affirm zones of massive sulfide at the Soledad project. To date, only 15 out of 110 targets on the Soledad property have been drill-tested.

    Initial resource estimate expected in Q4′ 2021.  Including drilling activities that commenced in August 2020, a total of 32,000 meters of drilling is anticipated through 2021. This includes 76 drill holes, representing 15,939.35 meters of drilling in the Paloma and Huancarama areas, for which results have been released. For the 26,000 meters of drilling planned in 2021, the company expects to …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Palladium One Mining Inc. (NKORF)(PDM:CA) – Tyko Nickel-Copper Project Area Enlarged with Purchase and Earn-In Agreements

Wednesday, July 28, 2021

Palladium One Mining Inc. (NKORF)(PDM:CA)
Tyko Nickel-Copper Project Area Enlarged with Purchase and Earn-In Agreements

Palladium One Mining Inc is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa and Kostonjarvi PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. LK is targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly. Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 2,500-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Expansion of the Tyko project. The Tyko Nickel-Copper project area has been increased to 24,550 hectares from 20,100 hectares with the purchase of new claims representing 3,500 hectares, along with two separate earn-in agreements representing an additional 950 hectares. These acquisitions follow the completion of the Phase II drill program which revealed high-grade nickel intercepts and significant exploration potential.

    Airborne geophysical survey completed.  An airborne versatile time-domain electromagnetic (VTEM) survey has been completed across the entire Tyko project. A key focus of the program is to trace the Smoke Lake sulphide lens to depth and identify the source of sulphide mineralization, along with identifying other zones of nickel-copper sulphide mineralization on the Tyko property. The results will be …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.