IDAHO |
(State or other jurisdiction of incorporation or organization) |
1-8641 (Commission File Number) |
82-0109423 (IRS Employer Identification No.) |
505 Front Ave., P.O. Box “I” Coeur d'Alene, Idaho, 83816 |
(Address of Principal Executive Offices) |
Exhibit Number | Description of Exhibit |
99.1 | Press Release issued by the Company on February 21, 2013. |
Date: February 21, 2013 | Coeur d'Alene Mines Corporation By: /s/ Frank L. Hanagarne, Jr. Name:Frank L. Hanagarne, Jr. Title: Senior Vice President, Chief Operating Officer and Chief Financial Officer |
• | Silver production was 18.0 million ounces, a 6% decrease from 2011. |
• | Gold production was a record 226,486 ounces, up 3% from 2011. |
• | Average realized prices were $30.92 per silver ounce and $1,665 per gold ounce, down 12% for silver and up 7% for gold from 2011. |
• | Net metal sales totaled $895.5 million, down 12% from 2011. |
• | Operating cash flow1 totaled $338.7 million, down 25% from 2011. Including changes in working capital, net cash from operating activities was $271.6 million compared with $416.2 million in 2011. |
• | Consolidated cash operating costs1 were $7.57 per silver ounce compared with $6.31 per silver ounce in 2011. |
• | Kensington's cash operating costs1 per gold ounce were $1,358 compared with $1,088 in 2011 and ended 2012 at $950 per ounce during December. |
• | Adjusted earnings1 were $121.5 million or $1.36 per share, compared with $232.5 million, or $2.60 per share, in 2011. Net income for 2012, which included a non-cash fair market value adjustment of negative $23.5 million, was $48.7 million, or $0.54 per share, compared with net income of $93.5 million, or $1.05 per share, in 2011. |
• | Cash, cash equivalents and short-term investments were $126.4 million at December 31, 2012, compared with $195.3 million a year ago. |
• | Coeur expects to produce 18.0 - 19.5 million ounces of silver and 250,000 - 265,000 ounces of gold in 2013. |
• | Cash operating costs1 per ounce are estimated at $8.00 - $9.00 per silver ounce, assuming a gold by-product price of $1,650 per ounce. Kensington's cash operating costs1 are estimated at $900 - $950 per gold ounce. |
• | Coeur expects to invest $40.0 million in exploration with the goal of increasing estimated mineral reserves and resources at year-end 2013. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
• | Achieve excellence in employee health and safety, environmental stewardship and community relations. |
• | Double our efforts to achieve operational consistency and reliability by improving planning, maintenance and execution of our key capital projects. |
• | Invest in accretive, high-return internal and external growth opportunities - including our own shares - in order to build net asset value and resources on a per share basis. |
• | Maximize free cash flow by containing operating costs, identifying revenue enhancement opportunities, and proactively managing working capital. |
• | Continue strengthening our organizational structure and management. |
• | Maintain an aggressive approach toward investing in exploration, which served the Company well in 2012.” |
(All amounts in millions, except per share amounts, average realized prices and gold ounces sold) | 4Q 2012 | 4Q 2011 | Quarter Variance | YTD 2012 | YTD 2011 | YTD Variance | |||||||||||||||
Sales of Metal | $ | 205.9 | $ | 246.9 | (17 | %) | $ | 895.5 | $ | 1,021.2 | (12 | %) | |||||||||
Production Costs | $ | 107.4 | $ | 109.1 | (2 | %) | $ | 456.8 | $ | 420.0 | 9 | % | |||||||||
EBITDA (1) | $ | 86.2 | $ | 119.7 | (28 | %) | $ | 372.4 | $ | 531.3 | (30 | %) | |||||||||
Adjusted Earnings (1) | $ | 26.2 | $ | 43.2 | (39 | %) | $ | 121.5 | $ | 232.5 | (48 | %) | |||||||||
Adjusted Earnings Per Share(1) | $ | 0.29 | $ | 0.48 | (40 | %) | $ | 1.36 | $ | 2.60 | (48 | %) | |||||||||
Net Income | $ | 37.6 | $ | 11.4 | 230 | % | $ | 48.7 | $ | 93.5 | (48 | %) | |||||||||
Earnings Per Share | $ | 0.42 | $ | 0.13 | 223 | % | $ | 0.54 | $ | 1.05 | (49 | %) | |||||||||
Operating Cash Flow (1) | $ | 79.2 | $ | 97.5 | (19 | %) | $ | 338.7 | $ | 454.4 | (25 | %) | |||||||||
Cash From Operating Activities | $ | 61.7 | $ | 87.4 | (29 | %) | $ | 271.6 | $ | 416.2 | (35 | %) | |||||||||
Capital Expenditures | $ | 21.8 | $ | 40.2 | (46 | %) | $ | 115.6 | $ | 120.0 | (4 | %) | |||||||||
Cash, Cash Equivalents & Short-Term Investments | $ | 126.4 | $ | 195.3 | (35 | %) | $ | 126.4 | $ | 195.3 | (35 | %) | |||||||||
Total Debt(1) (net of debt discount) | $ | 48.1 | $ | 121.5 | (60 | %) | $ | 48.1 | $ | 121.5 | (60 | %) | |||||||||
Weighted Average Shares Issued & Outstanding | 89.1 | 89.5 | — | % | 89.4 | 89.4 | — | % | |||||||||||||
Average Realized Price Per Ounce - Silver | $ | 32.52 | $ | 30.87 | 5 | % | $ | 30.92 | $ | 35.15 | (12 | %) | |||||||||
Average Realized Price Per Ounce - Gold | $ | 1,709 | $ | 1,674 | 2 | % | $ | 1,665 | $ | 1,558 | 7 | % | |||||||||
Silver Ounces Sold | 3.6 | 5.1 | (29 | %) | 18.0 | 19.1 | (6 | %) | |||||||||||||
Gold Ounces Sold | 55,565 | 55,308 | — | % | 213,185 | 238,551 | (11 | %) |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
(silver ounces in thousands) | 4Q 2012 | 4Q 2011 | Quarter Variance | 2012 | 2011 | YTD Variance | |||||||||||||||||||
Silver | Gold | Silver | Gold | Silver | Gold | Silver | Gold | Silver | Gold | Silver | Gold | ||||||||||||||
Palmarejo | 1,554 | 19,998 | 2,690 | 34,108 | (42 | %) | (41 | %) | 8,236 | 106,038 | 9,042 | 125,071 | (9 | %) | (15 | %) | |||||||||
San Bartolomé | 1,343 | — | 1,997 | — | (33 | %) | n.a. | 5,930 | — | 7,501 | — | (21 | %) | n.a. | |||||||||||
Rochester | 828 | 12,055 | 373 | 1,993 | 122 | % | 505 | % | 2,801 | 38,066 | 1,392 | 6,276 | 101 | % | 507 | % | |||||||||
Martha | — | — | 130 | 144 | n.a. | n.a. | 323 | 257 | 530 | 615 | (39 | %) | (58 | %) | |||||||||||
Kensington | — | 28,717 | — | 13,299 | n.a. | 116 | % | — | 82,125 | — | 88,420 | n.a. | (7 | %) | |||||||||||
Endeavor | 106 | — | 112 | — | (5 | %) | n.a. | 734 | — | 613 | — | 20 | % | n.a. | |||||||||||
Total | 3,831 | 60,770 | 5,302 | 49,544 | (28 | %) | 23 | % | 18,025 | 226,486 | 19,078 | 220,382 | (6 | %) | 3 | % |
4Q 2012 | 4Q 2011 | Quarter Variance | 2012 | 2011 | YTD Variance | |||||||||||||||||
Palmarejo | $ | 7.55 | $ | (2.13 | ) | 454 | % | $ | 1.33 | $ | (0.97 | ) | 237 | % | ||||||||
San Bartolomé | 13.97 | 9.18 | 52 | % | 11.76 | 9.10 | 29 | % | ||||||||||||||
Rochester | 2.17 | 37.99 | (94 | %) | 9.62 | 22.97 | (58 | %) | ||||||||||||||
Martha | — | 33.75 | n.a. | 49.77 | 32.79 | 52 | % | |||||||||||||||
Endeavor | 19.92 | 14.74 | 35 | % | 17.27 | 18.87 | (8 | %) | ||||||||||||||
Total | $ | 8.97 | $ | 6.19 | 45 | % | $ | 7.57 | $ | 6.31 | 20 | % | ||||||||||
Kensington | $ | 1,065 | $ | 1,807 | (41 | %) | $ | 1,358 | $ | 1,088 | 25 | % |
• | Palmarejo produced 8.2 million ounces of silver and 106,038 ounces of gold in 2012, down 9% and 15%, respectively, compared with 2011. |
• | Cash operating costs1 per silver ounce of $1.33 in 2012 compared with negative cash operating costs1 of $0.97 in 2011 were a result of lower production, remediation work in the underground operations, accelerated open pit mining and higher maintenance costs. |
• | Normal mining rates resumed in the underground operation late in the fourth quarter in the upper 76 zone and production from zone 108 commenced as planned. A lower overall mining rate in zone 76 was partially offset by planned mining rates in zone 108, which contains lower grade ore. |
• | A record 465,498 tons were mined in the open pit in the fourth quarter, a 10% increase from the third quarter 2012 and 45% higher than open pit tons mined in the fourth quarter 2011. Silver grades in the new phase of the pit are expected to increase gradually over 2013. |
• | A record 563,123 tons of ore processed partially offset lower mill feed grades in 2012.The Palmarejo mill recorded solid recovery rates of 84.2% in silver and 91.4% in gold for the fourth quarter. |
• | Sales and operating cash flow1 totaled $442.1 million and $233.1 million, respectively, in 2012, including $79.4 million and $33.2 million in the fourth quarter. Capital expenditures were $38.5 million in 2012. |
• | The Company is optimizing the mine plan for Guadalupe and will provide operational details during the second half of the year. Guadalupe is expected to commence initial production in the second half of 2013. |
• | Silver production was 5.9 million ounces in 2012, compared with 7.5 million ounces in 2011. Fourth quarter production of 1.3 million ounces of silver decreased from the third quarter due to lower silver grade and downtime resulting from grinding mill maintenance. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
• | Cash operating costs1 per silver ounce were $11.76 in 2012 compared to $9.10 in 2011, primarily due to lower production despite flat operational spending. |
• | Sales and operating cash flow1 totaled $178.0 million and $72.4 million, respectively, in 2012, including $37.0 million and $17.4 million, respectively, in the fourth quarter 2012. Capital expenditures were $25.7 million. |
• | The Company plans to increase mill capacity approximately 15% through an estimated capital expenditure of $17.0 - $20.0 million. This expansion is expected to increase the mine's annual production to 6.0 million ounces of silver over the next seven years at reduced cash operating costs per ounce1. |
• | Duilio Rivero has joined the Company as General Manager of San Bartolomé. Mr. Rivero was most recently the General Manager at Nyrstar's Campo Morado Mine in Mexico. Previously, he was General Manager for Nyrstar's El Toqui mine in Chile and for Yamana's Gualcamayo mine in Argentina. He is a mining engineer with over 20 years of experience in diverse roles in open pit and underground mines in South America. Mr. Rivero graduated from the University of San Juan, Argentina. |
• | Rochester achieved its highest production quarter of the year in the fourth quarter, reaching full year production of 2.8 million silver ounces and 38,066 gold ounces, significantly higher than 2011. Increased production was the result of the first full year of production from a new heap leach pad, which was commissioned in late 2011. |
• | Cash operating costs1 of $9.62 per silver ounce in 2012 were 58% lower than $22.97 in 2011. Fourth quarter cash operating costs1 were $2.17 per silver ounce compared to $37.99 per silver ounce in the fourth quarter of 2011. |
• | Sales and operating cash flow1 totaled $132.4 million and $53.5 million, respectively, in 2012, including $43.2 million and $21.5 million, respectively, in the fourth quarter 2012. Capital expenditures were $11.8 million. |
• | In 2013, the Company plans a major crusher and heap leach capacity expansion at Rochester to boost production to 4.5 - 4.9 million ounces of silver and 44,000 - 46,000 ounces of gold. |
• | Total capital expenditures are expected to be $30.0 - $35.0 million in 2013, including $23.0 - $26.0 million of growth capital and the remainder for sustaining capital. The Company is investing $4.0 million during 2013 to expand the capacity of the primary crusher from 9.0 million tons to the currently permitted annual rate of 14.0 million tons. In addition (subject to final permits) the Company expects to expand the mine's heap leach capacity on existing pads to approximately 67.0 million tons at an estimated capital cost of approximately $15.0 million to accommodate higher production rates of ore coming from historic stockpiles. |
• | Further expansion potential is being planned. Engineering and permitting are underway for 40.0 million tons of additional pad capacity with expected initial production in 2016 to further extend the mine life and increase production rates from historic stockpiles. This capital project is estimated to cost $10.0 million scheduled for 2015-2016. |
• | Kensington produced 28,717 ounces of gold in the fourth quarter, its highest quarterly production for the year, and 18% higher than third quarter. Full year 2012 gold production was 82,125 ounces. |
• | Cash operating costs1 per gold ounce were $1,358 in 2012, compared to $1,088 per ounce in 2011, due to a short-term production scale back to complete several underground and surface infrastructure projects and to establish increased underground development footage. |
• | As production ramped up in April 2012, cash operating costs1 per gold ounce declined 40% through year-end to $1,065 per ounce in the fourth quarter and to $950 per ounce in December 2012. |
• | Sales totaled $111.0 million in 2012 and $43.0 million in the fourth quarter 2012. Kensington generated $14.5 million in operating cash flow1 in the fourth quarter and $14.5 million for the full year 2012 after roughly breaking even on a cash flow basis after the first nine months of 2012. Capital expenditures were $37.0 million in 2012. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
2. | Please refer to the tables in the Appendix for tons and average grades associated with references of contained ounces in each category in this news release. All reserves and resources reported herein comply with Canadian National Instrument 43-101. |
• | Year-end silver and gold measured and indicated resources grew 169% from 17.0 million to 45.7 million ounces of silver and 370% from 205,000 to 964,000 ounces of gold compared to year-end 2011. Gains were realized in the immediate Palmarejo mine area followed by La Patria and Guadalupe. |
• | Guadalupe grew by 42% in silver and 31% in gold measured and indicated resources to 11.9 million ounces of silver and 134,000 ounces of gold, respectively. |
• | First time indicated resources from La Patria, located approximately nine kilometers from the main Palmarejo mine processing facility, totaled 9.8 million ounces of silver and 0.5 million ounces of gold. La Patria is being evaluated for standalone mining and processing and as feed for Palmarejo. |
• | During 2012, drilling to expand the main known Palmarejo deposits focused on the Tucson-Chapotillo zones with surface drilling and on the Rosario, 76 and 108 zones with underground drilling. |
• | At year-end 2012, Palmarejo's proven and probable reserves totaled 53.1 million ounces of silver and 665,000 ounces of gold. |
• | Drilling on just two of six historic stockpiles was successful in defining new mineral resources and mineral reserves at Rochester. Drilling will continue on these and the other stockpiles in 2013. |
• | Rochester's year-end silver proven and probable reserves were 44.9 million ounces of silver and 308,000 of gold, up 52% and 25%, respectively, over 2011. Silver measured and indicated resources increased 7% from 112.3 million ounces at year-end 2011 to 120.7 million ounces at year-end 2012. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
2. | Please refer to the tables in the Appendix for tons and average grades associated with references of contained ounces in each category in this news release. All reserves and resources reported herein comply with Canadian National Instrument 43-101. |
• | Increased definition drilling to $3.9 million improved model reconciliation to production in 2012 has improved the Company's overall understanding of the Kensington deposit. This has enabled the Company to develop a more reliable and accurate mine plan, and improve exploration targeting, which is expected to subsequently add to the reserve and resource base. |
• | Drilling results at the Raven vein, located approximately 2,000 feet (600 meters) from the main underground workings at Kensington, identified initial proven and probable reserves of 50,400 ounces contained within 151,000 tons, at an average gold grade of 0.33 opt, 51% higher than the overall average reserve grade at Kensington. |
• | Kensington's proven and probable reserves totaled 1.0 million ounces of gold compared with 1.3 million ounces of gold in 2011. |
• | Exploration in the second half of 2012 confirmed a new silver discovery called Pucka Loma, which occurs approximately 2.4 miles (4 kilometers) northwest of the San Bartolomé mill facility. Exploration trenching and sampling has defined silver mineralization in two separate zones. The largest of which, Pucka Loma Main, measures approximately 1,300 feet (400 meters) east to west by 2,800 feet (850 meters) north to south. Infill trenching and sampling are underway now, the results of which will be used to prepare an estimate of the in-situ silver tons and grade. |
• | San Bartolomé has long lived proven and probable reserves of 109.1 million ounces of silver, after production of 5.9 million ounces of silver in 2012, compared with 118.0 million ounces of silver at year-end 2011. |
• | Joaquin's silver and gold ounces of measured and indicated resources increased by over 234% and 74%, respectively, from the pro forma 100% interest year-end 2011 mineral estimates, to 65.2 million ounces of silver and 61,000 ounces of gold. |
• | The average silver grade of the measured and indicated mineral resources increased 52% from 2.48 to 3.78 ounces per ton. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
2. | Please refer to the tables in the Appendix for tons and average grades associated with references of contained ounces in each category in this news release. All reserves and resources reported herein comply with Canadian National Instrument 43-101. |
(silver ounces in thousands) | Country | Silver | Gold |
Palmarejo | Mexico | 7,700-8,300 | 98,000-105,000 |
San Bartolomé | Bolivia | 5,300-5,700 | — |
Rochester | Nevada, USA | 4,500-4,900 | 44,000-46,000 |
Endeavor | Australia | 500-600 | — |
Kensington | Alaska, USA | — | 108,000-114,000 |
Total | 18,000-19,500 | 250,000-265,000 |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
2012 | 2011 | 2010 | |||||||||
PRIMARY SILVER OPERATIONS: | |||||||||||
Palmarejo(1) | |||||||||||
Tons milled | 2,114,366 | 1,723,056 | 1,835,408 | ||||||||
Ore grade/Ag oz | 4.70 | 6.87 | 4.60 | ||||||||
Ore grade/Au oz | 0.05 | 0.08 | 0.06 | ||||||||
Recovery/Ag oz (%)(1) | 83.0 | 76.4 | 69.8 | ||||||||
Recovery/Au oz (%)(1) | 94.4 | 92.2 | 91.1 | ||||||||
Silver production ounces(3) | 8,236,013 | 9,041,488 | 5,887,576 | ||||||||
Gold production ounces(3) | 106,038 | 125,071 | 102,440 | ||||||||
Cash operating costs/oz(4) | $ | 1.33 | $ | (0.97 | ) | $ | 4.10 | ||||
Cash cost/oz(4) | $ | 1.33 | $ | (0.97 | ) | $ | 4.10 | ||||
Total production cost/oz | $ | 19.26 | $ | 16.80 | $ | 19.66 | |||||
San Bartolomé | |||||||||||
Tons milled | 1,477,271 | 1,567,269 | 1,504,779 | ||||||||
Ore grade/Ag oz | 4.49 | 5.38 | 5.03 | ||||||||
Recovery/Ag oz (%) | 89.5 | 88.9 | 88.6 | ||||||||
Silver production ounces(3) | 5,930,394 | 7,501,367 | 6,708,775 | ||||||||
Cash operating costs/oz(4) | $ | 11.76 | $ | 9.10 | $ | 7.87 | |||||
Cash cost/oz(4) | $ | 12.95 | $ | 10.64 | $ | 8.67 | |||||
Total production cost/oz | $ | 15.81 | $ | 13.75 | $ | 11.72 | |||||
Rochester(2) | |||||||||||
Tons Mined | 11,710,795 | 2,028,889 | — | ||||||||
Ore grade/Ag oz | 0.55 | 0.47 | — | ||||||||
Ore grade/Au oz | 0.0047 | 0.0047 | — | ||||||||
Recovery/Ag oz (%)(2) | 57.0 | 165.1 | — | ||||||||
Recovery/Au oz (%)(2) | 89.9 | 75.6 | — | ||||||||
Silver production ounces(3) | 2,801,405 | 1,392,433 | 2,023,423 | ||||||||
Gold production ounces(3) | 38,066 | 6,276 | 9,641 | ||||||||
Cash operating costs/oz(4) | 9.62 | 22.97 | 2.93 | ||||||||
Cash cost/oz(4) | 11.65 | 24.82 | 3.78 | ||||||||
Total production cost/oz | 14.05 | 27.21 | 4.82 |
1. | Recoveries are affected by timing inherent in the leaching process. |
2. | Recoveries at Rochester are affected by residual leaching on Stage IV pad and timing differences inherent in the heap leaching process. |
2012 | 2011 | 2010 | |||||||||
Martha(5) | |||||||||||
Tons milled | 100,548 | 101,167 | 56,401 | ||||||||
Ore grade/Ag oz | 4.01 | 6.29 | 31.63 | ||||||||
Ore grade/Au oz | 0.0035 | 0.0082 | 0.04 | ||||||||
Recovery/Ag oz (%) | 80.3 | 83.2 | 88.3 | ||||||||
Recovery/Au oz (%) | 72.2 | 74.0 | 84.1 | ||||||||
Silver production ounces | 323,386 | 529,602 | 1,575,827 | ||||||||
Gold production ounces | 257 | 615 | 1,838 | ||||||||
Cash operating costs/oz(4) | $ | 49.77 | $ | 32.79 | $ | 13.16 | |||||
Cash cost/oz(4) | $ | 50.71 | $ | 34.08 | $ | 14.14 | |||||
Total production cost/oz | $ | 55.03 | $ | 36.19 | $ | 20.02 | |||||
Endeavor | |||||||||||
Tons milled | 791,209 | 743,936 | 653,550 | ||||||||
Ore grade/Ag oz | 2.26 | 1.83 | 1.96 | ||||||||
Recovery/Ag oz (%) | 41.0 | 45.0 | 44.3 | ||||||||
Silver production ounces | 734,008 | 613,361 | 566,134 | ||||||||
Cash operating costs/oz(4) | $ | 17.27 | $ | 18.87 | $ | 10.15 | |||||
Cash cost/oz(4) | $ | 17.27 | $ | 18.87 | $ | 10.15 | |||||
Total production cost/oz | $ | 23.52 | $ | 24.00 | $ | 13.66 | |||||
GOLD OPERATIONS: | |||||||||||
Kensington | |||||||||||
Tons milled | 394,780 | 415,340 | 174,028 | ||||||||
Ore grade/Au oz | 0.22 | 0.23 | 0.28 | ||||||||
Recovery/Au oz (%) | 95.6 | 92.7 | 89.9 | ||||||||
Gold production ounces(3) | 82,125 | 88,420 | 43,143 | ||||||||
Cash operating costs/oz(4) | $ | 1,358 | $ | 1,088 | $ | 989 | |||||
Cash cost/oz(4) | $ | 1,358 | $ | 1,088 | $ | 989 | |||||
Total production cost/oz | $ | 1,865 | $ | 1,494 | $ | 1,394 | |||||
CONSOLIDATED PRODUCTION TOTALS | |||||||||||
Silver ounces(3) | 18,025,206 | 19,078,251 | 16,761,735 | ||||||||
Gold ounces(3) | 226,486 | 220,382 | 157,062 | ||||||||
Cash operating costs/oz(4) | $ | 7.57 | $ | 6.31 | $ | 6.53 | |||||
Cash cost per oz/silver(4) | $ | 8.30 | $ | 7.09 | $ | 7.05 | |||||
Total production cost/oz | $ | 18.14 | $ | 17.14 | $ | 14.52 | |||||
CONSOLIDATED SALES TOTALS | |||||||||||
Silver ounces sold(3) | 17,965,383 | 19,057,503 | 17,221,335 | ||||||||
Gold ounces sold(3) | 213,185 | 238,551 | 130,142 | ||||||||
Realized price per silver ounce | $ | 30.92 | $ | 35.15 | $ | 20.99 | |||||
Realized price per gold ounce | $ | 1,665 | $ | 1,558 | $ | 1,237 |
(1) | Palmarejo commenced commercial production on April 20, 2009. Mine statistics do not represent normal operating results |
(2) | The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the metallurgical recovery to be approximately 61% for silver and 92% for gold. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates — Ore on Leach Pad. |
(3) | Current production ounces and recoveries reflect final metal settlements of previously reported production ounces. |
(4) | See "Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs." |
(5) | The Martha mine ceased active mining operations in September of 2012. |
December 31, 2012 | December 31, 2011 | |||||||
ASSETS | (In thousands, except share data) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 125,440 | $ | 175,012 | ||||
Short term investments | 999 | 20,254 | ||||||
Receivables | 62,438 | 83,497 | ||||||
Ore on leach pad | 22,991 | 27,252 | ||||||
Metal and other inventory | 170,670 | 132,781 | ||||||
Deferred tax assets | 2,458 | 1,869 | ||||||
Restricted assets | 396 | 60 | ||||||
Prepaid expenses and other | 20,790 | 24,218 | ||||||
406,182 | 464,943 | |||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 683,860 | 687,676 | ||||||
Mining properties, net | 1,991,951 | 2,001,027 | ||||||
Ore on leach pad, non-current portion | 21,356 | 6,679 | ||||||
Restricted assets | 24,970 | 28,911 | ||||||
Marketable securities | 27,065 | 19,844 | ||||||
Receivables, non-current portion | 48,767 | 40,314 | ||||||
Debt issuance costs, net | 3,713 | 1,889 | ||||||
Deferred tax assets | 955 | 263 | ||||||
Other | 12,582 | 12,895 | ||||||
TOTAL ASSETS | $ | 3,221,401 | $ | 3,264,441 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 57,482 | $ | 78,590 | ||||
Accrued liabilities and other | 10,002 | 13,126 | ||||||
Accrued income taxes | 27,108 | 47,803 | ||||||
Accrued payroll and related benefits | 21,306 | 16,240 | ||||||
Accrued interest payable | 478 | 559 | ||||||
Current portion of debt and capital leases | 55,983 | 32,602 | ||||||
Current portion of royalty obligation | 65,104 | 61,721 | ||||||
Current portion of reclamation and mine closure | 668 | 1,387 | ||||||
Deferred tax liabilities | 121 | 53 | ||||||
238,252 | 252,081 | |||||||
NON-CURRENT LIABILITIES | ||||||||
Long-term debt and capital leases | 3,460 | 115,861 | ||||||
Non-current portion of royalty obligation | 141,879 | 169,788 | ||||||
Reclamation and mine closure | 34,670 | 32,371 | ||||||
Deferred tax liabilities | 577,488 | 527,573 | ||||||
Other long-term liabilities | 27,372 | 30,046 | ||||||
784,869 | 875,639 | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, par value $0.01 per share; authorized 150,000,000 shares, issued and outstanding 90,342,338 at December 31, 2012 and 89,655,124 at December 31, 2011 | 903 | 897 | ||||||
Additional paid-in capital | 2,601,254 | 2,585,632 | ||||||
Accumulated deficit | (396,156 | ) | (444,833 | ) | ||||
Accumulated other comprehensive loss | (7,721 | ) | (4,975 | ) | ||||
2,198,280 | 2,136,721 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,221,401 | $ | 3,264,441 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands, except share data) | |||||||||||
Sales of metal | $ | 895,492 | $ | 1,021,200 | $ | 515,457 | |||||
Production costs applicable to sales | (456,757 | ) | (419,956 | ) | (257,636 | ) | |||||
Depreciation, depletion and amortization | (218,857 | ) | (224,500 | ) | (141,619 | ) | |||||
Gross profit | 219,878 | 376,744 | 116,202 | ||||||||
COSTS AND EXPENSES | |||||||||||
Administrative and general | 32,977 | 31,379 | 24,176 | ||||||||
Exploration | 26,270 | 19,128 | 14,249 | ||||||||
Loss on impairment | 5,825 | — | — | ||||||||
Pre-development, care, maintenance and other | 1,261 | 19,441 | 2,877 | ||||||||
Total cost and expenses | 66,333 | 69,948 | 41,302 | ||||||||
OPERATING INCOME | 153,545 | 306,796 | 74,900 | ||||||||
OTHER INCOME AND EXPENSE, NET | |||||||||||
Loss on debt extinguishments | (1,036 | ) | (5,526 | ) | (20,300 | ) | |||||
Fair value adjustments, net | (23,487 | ) | (52,050 | ) | (117,094 | ) | |||||
Interest income and other, net | 14,436 | (6,610 | ) | 771 | |||||||
Interest expense, net of capitalized interest | (26,169 | ) | (34,774 | ) | (30,942 | ) | |||||
Total other income and expense, net | (36,256 | ) | (98,960 | ) | (167,565 | ) | |||||
Income (loss) from continuing operations before income taxes | 117,289 | 207,836 | (92,665 | ) | |||||||
Income tax (provision) benefit | (68,612 | ) | (114,337 | ) | 9,481 | ||||||
Income (loss) from continuing operations | $ | 48,677 | $ | 93,499 | $ | (83,184 | ) | ||||
Loss from discontinued operations | — | — | (6,029 | ) | |||||||
Loss on sale of net assets of discontinued operations | — | — | (2,095 | ) | |||||||
NET INCOME (LOSS) | $ | 48,677 | $ | 93,499 | $ | (91,308 | ) | ||||
BASIC AND DILUTED INCOME (LOSS) PER SHARE | |||||||||||
Basic income (loss) per share: | |||||||||||
Net income (loss) from continuing operations | $ | 0.54 | $ | 1.05 | $ | (0.95 | ) | ||||
Net income (loss) from discontinued operations | — | — | (0.10 | ) | |||||||
Net income (loss) | 0.54 | 1.05 | (1.05 | ) | |||||||
Diluted income (loss) per share: | |||||||||||
Net income (loss) from continuing operations | $ | 0.54 | $ | 1.04 | $ | (0.95 | ) | ||||
Net income (loss) from discontinued operations | $ | — | $ | — | $ | (0.10 | ) | ||||
Net income (loss) | $ | 0.54 | $ | 1.04 | $ | (1.05 | ) | ||||
Weighted average number of shares of common stock | |||||||||||
Basic | 89,437 | 89,383 | 87,185 | ||||||||
Diluted | 89,603 | 89,725 | 87,185 |
Years ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | 48,677 | $ | 93,499 | $ | (91,308 | ) | ||||
Add (deduct) non-cash items | |||||||||||
Depreciation, depletion and amortization | 218,857 | 224,500 | 143,813 | ||||||||
Accretion of discount on debt and other assets, net | 3,431 | 4,041 | 3,374 | ||||||||
Accretion of royalty obligation | 18,294 | 21,550 | 19,018 | ||||||||
Deferred income taxes | 16,163 | 51,792 | (37,628 | ) | |||||||
Loss on debt extinguishment | 1,036 | 5,526 | 20,300 | ||||||||
Fair value adjustments, net | 18,421 | 46,450 | 115,458 | ||||||||
Loss (gain) on foreign currency transactions | (1,381 | ) | 380 | 3,867 | |||||||
Share-based compensation | 8,010 | 8,122 | 7,217 | ||||||||
Loss (gain) on sale of assets | 1,101 | (1,145 | ) | (25 | ) | ||||||
Loss on impairment | 5,825 | — | — | ||||||||
Loss (gain) on asset retirement | 279 | (335 | ) | (167 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables and other current assets | 9,756 | (21,950 | ) | (6,228 | ) | ||||||
Prepaid expenses and other | 2,489 | (8,839 | ) | 5,871 | |||||||
Inventories | (48,305 | ) | (30,408 | ) | (47,887 | ) | |||||
Accounts payable and accrued liabilities | (31,019 | ) | 22,990 | 29,888 | |||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 271,634 | 416,173 | 165,563 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (115,641 | ) | (119,988 | ) | (155,994 | ) | |||||
Acquisition of Joaquin mineral interests | (29,297 | ) | — | — | |||||||
Purchase of short term investments and marketable securities | (12,959 | ) | (49,501 | ) | (5,872 | ) | |||||
Proceeds from sales and maturities of short term investments, marketable securities | 21,695 | 6,246 | 24,244 | ||||||||
Other | 3,087 | 2,282 | 5,927 | ||||||||
CASH USED IN INVESTING ACTIVITIES | (133,115 | ) | (160,961 | ) | (131,695 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from issuance of notes and bank borrowings | — | 27,500 | 176,166 | ||||||||
Payments on long-term debt, capital leases, and associated costs | (97,170 | ) | (85,519 | ) | (106,827 | ) | |||||
Payments on gold production royalty | (74,734 | ) | (73,191 | ) | (43,125 | ) | |||||
Proceeds from gold lease facility | — | — | 18,445 | ||||||||
Payments on gold lease facility | — | (13,800 | ) | (37,977 | ) | ||||||
Proceeds from sale-leaseback transactions | — | — | 4,853 | ||||||||
Reductions of (additions to) restricted assets associated with the Kensington Term Facility | 4,645 | (1,326 | ) | (2,353 | ) | ||||||
Share repurchases | (19,971 | ) | — | — | |||||||
Other | (861 | ) | 18 | 286 | |||||||
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (188,091 | ) | (146,318 | ) | 9,468 | ||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (49,572 | ) | 108,894 | 43,336 | |||||||
Cash and cash equivalents at beginning of period | 175,012 | 66,118 | 22,782 | ||||||||
Cash and cash equivalents at end of period | $ | 125,440 | $ | 175,012 | $ | 66,118 |
(in thousands) | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||
Cash provided by operating activities | $ | 61,694 | $ | 79,735 | $ | 113,203 | $ | 17,002 | $ | 87,412 | |||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | (8,040 | ) | 5,648 | (10,319 | ) | 2,956 | (8,904 | ) | |||||||
Prepaid expenses and other | (3,054 | ) | 2,481 | 2,857 | (4,774 | ) | 8,839 | ||||||||
Inventories | 12,919 | 13,762 | (3,097 | ) | 24,722 | 17,574 | |||||||||
Accounts payable and accrued liabilities | 15,706 | (24,341 | ) | (14,276 | ) | 53,929 | (7,452 | ) | |||||||
Operating Cash Flow | $ | 79,225 | $ | 77,285 | $ | 88,368 | $ | 93,835 | $ | 97,469 |
(in thousands) | 2012 | 2011 | ||||
Cash provided by operating activities | $ | 271,634 | $ | 416,173 | ||
Changes in operating assets and liabilities: | ||||||
Receivables and other current assets | (9,756 | ) | 21,950 | |||
Prepaid expenses and other | (2,489 | ) | 8,839 | |||
Inventories | 48,305 | 30,408 | ||||
Accounts payable and accrued liabilities | 31,019 | (22,990 | ) | |||
Operating Cash Flow | $ | 338,713 | $ | 454,380 |
(in thousands) | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||
Net income (loss) | $ | 37,550 | $ | (15,821 | ) | $ | 22,973 | $ | 3,975 | $ | 11,364 | ||||
Income tax provision | 11,839 | 17,475 | 23,862 | 15,436 | 52,390 | ||||||||||
Interest expense, net of capitalized interest | 4,591 | 7,351 | 7,557 | 6,670 | 8,222 | ||||||||||
Interest and other income | 14 | (12,664 | ) | 3,221 | (5,007 | ) | 4,697 | ||||||||
Fair value adjustments, net | (21,235 | ) | 37,648 | (16,039 | ) | 23,113 | (19,035 | ) | |||||||
Loss on debt extinguishments | 1,036 | — | — | — | 3,886 | ||||||||||
Depreciation and depletion | 52,397 | 52,844 | 61,024 | 52,592 | 58,166 | ||||||||||
EBITDA | $ | 86,192 | $ | 86,833 | $ | 102,598 | $ | 96,779 | $ | 119,690 |
(in thousands) | 2012 | 2011 | ||||
Net income (loss) | $ | 48,677 | $ | 93,499 | ||
Income tax provision | 68,612 | 114,337 | ||||
Interest expense, net of capitalized interest | 26,169 | 34,774 | ||||
Interest and other income (loss), net | (14,436 | ) | 6,610 | |||
Fair value adjustments, net | 23,487 | 52,050 | ||||
Loss on debt extinguishments | 1,036 | 5,526 | ||||
Depreciation, depletion, and amortization | 218,857 | 224,500 | ||||
EBITDA | $ | 372,402 | $ | 531,296 |
(in thousands) | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||
Net income (loss) | $ | 37,550 | $ | (15,821 | ) | $ | 22,973 | $ | 3,975 | $ | 11,364 | ||||
Share based compensation | 1,476 | 3,364 | 1,033 | 2,137 | 2,861 | ||||||||||
Deferred income tax provision | 3,738 | (4,942 | ) | 9,690 | 7,677 | 38,614 | |||||||||
Interest expense, accretion of royalty obligation | 3,946 | 4,276 | 5,492 | 4,580 | 5,523 | ||||||||||
Fair value adjustments, net | (21,235 | ) | 37,648 | (16,039 | ) | 23,113 | (19,035 | ) | |||||||
Loss on impairment | (281 | ) | 1,293 | 4,813 | — | — | |||||||||
Gain on debt extinguishments | 1,036 | — | — | — | 3,886 | ||||||||||
Adjusted Earnings | $ | 26,230 | $ | 25,818 | $ | 27,962 | $ | 41,482 | $ | 43,213 |
(in thousands) | 2012 | 2011 | ||||
Net income (loss) | $ | 48,677 | $ | 93,499 | ||
Share based compensation | 8,010 | 8,122 | ||||
Deferred income tax provision | 16,163 | 51,792 | ||||
Interest expense, accretion of royalty obligation | 18,294 | 21,550 | ||||
Fair value adjustments, net | 23,487 | 52,050 | ||||
Loss on impairment | 5,825 | — | ||||
Loss on debt extinguishments | 1,036 | 5,526 | ||||
Adjusted Earnings | $ | 121,492 | $ | 232,539 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 |
Sales of metal | $442.1 | $79.4 | $102.6 | $136.4 | $123.7 | $134.3 |
Production costs | $197.5 | $40.4 | $48.7 | $62.5 | $45.9 | $47.0 |
EBITDA | $237.0 | $36.6 | $51.6 | $72.3 | $76.5 | $83.7 |
Operating income | $90.4 | $4.5 | $17.7 | $29.5 | $38.8 | $38.7 |
Operating cash flow | $233.1 | $33.2 | $54.9 | $63.6 | $81.4 | $77.4 |
Capital expenditures | $38.5 | $8.8 | $11.3 | $11.2 | $7.2 | $12.1 |
Gross profit | $98.0 | $6.8 | $20.0 | $31.1 | $40.1 | $44.7 |
Gross margin | 22.2% | 8.7% | 19.5% | 22.8% | 32.4% | 33.3% |
2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |
Underground Operations: | ||||||
Tons mined | 604,522 | 139,925 | 143,747 | 162,820 | 158,030 | 191,966 |
Average silver grade (oz/t) | 6.99 | 4.70 | 6.13 | 8.91 | 7.82 | 8.04 |
Average gold grade (oz/t) | 0.11 | 0.08 | 0.09 | 0.14 | 0.11 | 0.11 |
Surface Operations: | ||||||
Tons mined | 1,559,245 | 465,498 | 424,380 | 321,758 | 347,609 | 321,881 |
Average silver grade (oz/t) | 3.58 | 2.62 | 2.79 | 4.14 | 5.32 | 5.88 |
Average gold grade (oz/t) | 0.03 | 0.02 | 0.03 | 0.04 | 0.04 | 0.05 |
Processing: | ||||||
Total tons milled | 2,114,366 | 563,123 | 532,775 | 489,924 | 528,543 | 505,619 |
Average recovery rate – Ag | 83.0% | 84.2% | 90.0% | 84.2% | 76.8% | 77.9% |
Average recovery rate – Au | 94.4% | 91.4% | 102.5% | 92.0% | 93.3% | 92.4% |
Silver production - oz (000's) | 8,236 | 1,555 | 1,833 | 2,365 | 2,483 | 2,690 |
Gold production - oz | 106,038 | 19,998 | 23,702 | 31,258 | 31,081 | 34,108 |
Cash operating costs/Ag Oz | $1.33 | $7.55 | $3.75 | $(0.85) | $(2.27) | $(2.13) |
2012 | 2011 | 2010 | ||||||||
Cash operating cost per ounce: | ||||||||||
Silver | $ | 13.45 | $ | 12.82 | $ | 19.90 | ||||
Gold | $ | 742 | $ | 581 | $ | 328 | ||||
Total cash cost per ounce: | ||||||||||
Silver | $ | 13.45 | $ | 12.82 | $ | 19.90 | ||||
Gold | $ | 742 | $ | 581 | $ | 328 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Sales of metal | $ | 442.1 | $ | 79.4 | $ | 102.6 | $ | 136.4 | $ | 123.7 | $ | 134.3 | ||||||
Production costs applicable to sales | $ | (197.5 | ) | $ | (40.4 | ) | $ | (48.7 | ) | $ | (62.5 | ) | $ | (45.9 | ) | $ | (47.0 | ) |
Administrative and general | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Exploration | $ | (7.6 | ) | $ | (2.4 | ) | $ | (2.3 | ) | $ | (1.6 | ) | $ | (1.3 | ) | $ | (2.8 | ) |
Pre-development care and maintenance and other | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (0.8 | ) | |||||
EBITDA | $ | 237.0 | $ | 36.6 | $ | 51.6 | $ | 72.3 | $ | 76.5 | $ | 83.7 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Cash provided by operating activities | $ | 237.0 | $ | 22.9 | $ | 58.2 | $ | 90.5 | $ | 65.3 | $ | 70.9 | ||||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | $ | (12.5 | ) | $ | (1.3 | ) | $ | (4.1 | ) | $ | (12.5 | ) | $ | 5.4 | $ | 5.7 | ||
Prepaid expenses and other | $ | (3.2 | ) | $ | (1.0 | ) | $ | (0.8 | ) | $ | 0.5 | $ | (1.9 | ) | $ | (3.2 | ) | |
Inventories | $ | (0.8 | ) | $ | 3.6 | $ | 2.5 | $ | (11.5 | ) | $ | 4.6 | $ | 9.9 | ||||
Accounts payable and accrued liabilities | $ | 12.6 | $ | 9.0 | $ | (0.9 | ) | $ | (3.4 | ) | $ | 8.0 | $ | (5.9 | ) | |||
Operating Cash Flow | $ | 233.1 | $ | 33.2 | $ | 54.9 | $ | 63.6 | $ | 81.4 | $ | 77.4 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |
Sales of metal | $178.0 | $37.0 | $46.2 | $53.4 | $41.4 | $62.8 | |
Production costs | $71.4 | $15.1 | $19.9 | $22.8 | $13.6 | $21.4 | |
EBITDA | $106.3 | $21.9 | $26.2 | $30.5 | $27.7 | $41.2 | |
Operating income | $89.6 | $17.5 | $22.0 | $26.6 | $23.5 | $34.9 | |
Operating cash flow | $72.4 | $17.4 | $11.2 | $23.0 | $20.8 | $28.7 | |
Capital expenditures | $25.7 | $3.3 | $4.4 | $7.8 | $10.2 | $6.5 | |
Gross profit | $89.7 | $17.6 | $22.1 | $26.5 | $23.5 | $35.3 | |
Gross margin | 50.5% | 47.7% | 47.8% | 49.6% | 56.8% | 56.2% | |
2012 | 4Q 2012 | 3Q 2012 | 1Q 2012 | 1Q 2012 | 4Q 2011 | ||
Tons milled | 1,477,271 | 363,813 | 344,349 | 391,005 | 378,104 | 371,983 | |
Average silver grade (oz/t) | 4.5 | 4.2 | 4.9 | 4.3 | 4.6 | 5.4 | |
Average recovery rate | 89.5% | 88% | 90.3% | 88.3% | 91.2% | 90.5% | |
Silver production (000's) | 5,930 | 1,343 | 1,526 | 1,470 | 1,591 | 1,997 | |
Cash operating costs/Ag Oz | $11.76 | $13.97 | $12.13 | $11.05 | $10.21 | $9.18 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Sales of metal | $ | 178.0 | $ | 37.1 | $ | 46.2 | $ | 53.4 | $ | 41.4 | $ | 62.8 | ||||||
Production costs applicable to sales | (71.4 | ) | (15.1 | ) | (19.9 | ) | (22.8 | ) | (13.6 | ) | (21.4 | ) | ||||||
Administrative and general | — | — | — | — | — | — | ||||||||||||
Exploration | (0.3 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | — | |||||||
Pre-development care and maintenance and other | — | — | — | — | — | (0.2 | ) | |||||||||||
EBITDA | $ | 106.3 | $ | 21.9 | $ | 26.2 | $ | 30.5 | $ | 27.7 | $ | 41.2 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Cash provided by (used in) operating activities | $ | 33.0 | $ | 9.5 | $ | 19.8 | $ | 31.0 | $ | (27.4 | ) | $ | 22.3 | |||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | $ | 5.6 | $ | (3.0 | ) | $ | 7.1 | $ | (0.6 | ) | $ | 2.2 | $ | 0.2 | ||||
Prepaid expenses and other | $ | 0.9 | $ | (1.4 | ) | $ | 0.8 | $ | 4.4 | $ | (2.8 | ) | $ | 4.6 | ||||
Inventories | $ | 16.0 | $ | 9.6 | $ | 5.0 | $ | (3.4 | ) | $ | 4.7 | $ | 2.9 | |||||
Accounts payable and accrued liabilities | $ | 16.9 | $ | 2.7 | $ | (21.5 | ) | $ | (8.4 | ) | $ | 44.1 | $ | (1.3 | ) | |||
Operating Cash Flow | $ | 72.4 | $ | 17.4 | $ | 11.2 | $ | 23.0 | $ | 20.8 | $ | 28.7 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 |
Sales of metal | $111.0 | $43.0 | $36.5 | $21.1 | $10.4 | $32.9 |
Production costs | $87.1 | $27.0 | $26.9 | $16.1 | $17.1 | $31.7 |
EBITDA | $20.6 | $14.7 | $8.1 | $4.7 | $(6.9) | $0.5 |
Operating income/(loss) | $(21.1) | $0.9 | $(3.5) | $(5.0) | $(13.6) | $(6.6) |
Operating cash flow | $14.6 | $14.5 | $7.3 | $0.6 | $(7.8) | $(4.1) |
Capital expenditures | $37.0 | $7.8 | $9.0 | $9.3 | $10.9 | $12.0 |
Gross profit/(loss) | $(17.7) | $2.2 | $(1.9) | $(4.7) | $(13.3) | $(5.7) |
Gross margin | (15.9)% | 5.1% | (5.2)% | (22.3)% | (127.9)% | (17.3)% |
2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |
Tons mined | 395,843 | 140,626 | 113,770 | 84,632 | 56,815 | 68,831 |
Tons milled | 394,780 | 129,622 | 123,428 | 97,794 | 43,936 | 71,700 |
Average gold grade (oz/t) | 0.20 | 0.23 | 0.21 | 0.23 | 0.18 | 0.19 |
Average recovery rate | 95.6% | 96.9% | 95.9% | 94.2% | 93.4% | 96.5% |
Gold production | 82,125 | 28,718 | 24,391 | 21,572 | 7,444 | 13,299 |
Cash operating costs/Ag Oz | $1,358 | $1,065 | $1,298 | $1,348 | $2,709 | $1,807 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Sales of metal | $ | 111.0 | $ | 43.0 | $ | 36.5 | $ | 21.1 | $ | 10.4 | $ | 32.9 | ||||||
Production costs applicable to sales | (87.1 | ) | (27.0 | ) | (26.9 | ) | (16.1 | ) | (17.1 | ) | (31.7 | ) | ||||||
Administrative and general | — | — | — | — | — | — | ||||||||||||
Exploration | (3.2 | ) | (1.3 | ) | (1.5 | ) | (0.3 | ) | (0.2 | ) | (0.5 | ) | ||||||
Pre-development care and maintenance and other | (0.1 | ) | — | — | — | — | (0.2 | ) | ||||||||||
EBITDA | $ | 20.6 | $ | 14.7 | $ | 8.1 | $ | 4.7 | $ | (6.9 | ) | $ | 0.5 |
2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |||||||||||||
Cash provided by operating activities | $ | 10.1 | $ | 16.5 | $ | 5.0 | $ | (12.5 | ) | $ | 1.1 | $ | 9.3 | |||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | $ | (6.0 | ) | $ | (2.6 | ) | $ | 2.3 | $ | 4.6 | $ | (10.3 | ) | $ | (5.1 | ) | ||
Prepaid expenses and other | $ | (1.3 | ) | $ | (0.4 | ) | $ | 0.5 | $ | (0.5 | ) | $ | (1.0 | ) | $ | 0.5 | ||
Inventories | $ | 14.6 | $ | (0.3 | ) | $ | 1.8 | $ | 9.9 | $ | 3.3 | $ | (10.1 | ) | ||||
Accounts payable and accrued liabilities | $ | (2.8 | ) | $ | 1.3 | $ | (2.3 | ) | $ | (0.9 | ) | $ | (0.9 | ) | $ | 1.3 | ||
Operating Cash Flow | $ | 14.6 | $ | 14.5 | $ | 7.3 | $ | 0.6 | $ | (7.8 | ) | $ | (4.1 | ) |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |||||
Sales of metal | $132.4 | $43.2 | $36.2 | $34.2 | $18.8 | $11.1 | |||||
Production costs | $74.3 | $22.9 | $21.0 | $20.8 | $9.6 | $4.2 | |||||
EBITDA | $53.1 | $21.4 | $12.9 | $11.6 | $7.2 | $3.2 | |||||
Operating income | $45.1 | $19.2 | $10.9 | $9.5 | $5.5 | $4.6 | |||||
Operating cash flow | $53.5 | $21.5 | $13.0 | $11.8 | $7.2 | $3.4 | |||||
Capital expenditures | $11.8 | $1.5 | $4.8 | $2.9 | $2.6 | $7.7 | |||||
Gross profit | $50.1 | $18.0 | $13.2 | $11.3 | $7.6 | $5.9 | |||||
Gross margin | 37.8% | 41.7% | 36.5% | 33.0% | 40.4% | 53.2% | |||||
2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||
Tons mined | 11,710,795 | 3,031,428 | 3,170,129 | 2,585,914 | 2,923,324 | 1,170,397 | |||||
Average silver grade (oz/t) | 0.55 | 0.51 | 0.52 | 0.63 | 0.55 | 0.54 | |||||
Average gold grade (oz/t) | 0.005 | 0.005 | 0.004 | 0.005 | 0.004 | 0.004 | |||||
Silver production (000's) | 2,801 | 828 | 819 | 713 | 441 | 373 | |||||
Gold production | 38,066 | 12,055 | 10,599 | 10,120 | 5,292 | 1,993 | |||||
Cash operating costs/Ag Oz | $9.62 | $2.17 | $9.58 | $9.83 | $23.35 | $37.99 |
2012 | 2011 | 2010 | ||||||||
Cash operating cost per ounce: | ||||||||||
Silver | $ | 19.20 | $ | 25.34 | $ | 4.20 | ||||
Gold | $ | 962 | $ | 1,050 | $ | 952 | ||||
Total cash cost per ounce: | ||||||||||
Silver | $ | 20.40 | $ | 26.91 | $ | 4.61 | ||||
Gold | $ | 1,023 | $ | 1,115 | $ | 1,045 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Sales of metal | $ | 132.4 | $ | 43.2 | $ | 36.2 | $ | 34.2 | $ | 18.8 | $ | 11.1 | ||||||
Production costs applicable to sales | (74.3 | ) | (22.9 | ) | (21.0 | ) | (20.8 | ) | (9.6 | ) | (4.2 | ) | ||||||
Administrative and general | — | — | — | — | — | — | ||||||||||||
Exploration | (3.6 | ) | (0.6 | ) | (1.2 | ) | (1.1 | ) | (0.7 | ) | (1.5 | ) | ||||||
Pre-development care and maintenance and other | (1.4 | ) | 1.7 | (1.1 | ) | (0.7 | ) | (1.3 | ) | (2.2 | ) | |||||||
EBITDA | $ | 53.1 | $ | 21.4 | $ | 12.9 | $ | 11.6 | $ | 7.2 | $ | 3.2 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Cash provided by (used in) operating activities | $ | 28.4 | $ | 18.2 | $ | 7.3 | $ | 10.1 | $ | (7.1 | ) | $ | (11.4 | ) | ||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | $ | 0.3 | $ | (0.6 | ) | $ | 0.6 | $ | (0.1 | ) | $ | 0.3 | $ | (0.2 | ) | |||
Prepaid expenses and other | $ | 0.9 | $ | 0.3 | $ | 0.2 | $ | (1.0 | ) | $ | 1.4 | $ | 0.7 | |||||
Inventories | $ | 22.5 | $ | 0.9 | $ | 6.5 | $ | 3.9 | $ | 11.2 | $ | 14.2 | ||||||
Accounts payable and accrued liabilities | $ | 1.4 | $ | 2.7 | $ | (1.6 | ) | $ | (1.1 | ) | $ | 1.4 | $ | 0.1 | ||||
Operating Cash Flow | $ | 53.5 | $ | 21.5 | $ | 13.0 | $ | 11.8 | $ | 7.2 | $ | 3.4 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 |
Sales of metal | $13.2 | $0.5 | $4.9 | $4.1 | $3.6 | $2.8 |
Production costs | $17.7 | $0.4 | $6.5 | $7.1 | $3.7 | $3.9 |
EBITDA | $(21.1) | $(2.7) | $(4.2) | $(10.6) | $(3.7) | $(3.3) |
Operating loss | $(21.8) | $(2.0) | $(4.2) | $(11.3) | $(4.3) | $(3.0) |
Operating cash flow | $(16.8) | $(2.8) | $(3.4) | $(5.5) | $(5.1) | $(5.0) |
Capital expenditures | $1.2 | $— | $— | $0.5 | $0.7 | $1.4 |
Gross profit (loss) | $(5.2) | $0.7 | $(1.5) | $(3.7) | $(0.7) | $(1.7) |
Gross margin | (39.4)% | 140.0% | (32.7)% | (90.2)% | (19.4)% | (60.7)% |
2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |
Total tons milled | 100,548 | — | 27,281 | 39,199 | 34,068 | 37,141 |
Average silver grade (oz/t) | 4.00 | — | 4.17 | 3.52 | 4.43 | 4.65 |
Average gold grade (oz/t) | — | — | — | — | — | 0.01 |
Average recovery rate – Ag | 80.3% | —% | 81.5% | 78.2% | 81.4% | 75.2% |
Average recovery rate – Au | 72.2% | —% | 82.6% | 72.4% | 64.6% | 74.2% |
Silver production (000's) | 323 | — | 93 | 108 | 123 | 130 |
Cash operating costs/Ag Oz | $49.77 | $— | $48.12 | $55.07 | $46.48 | $33.75 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Sales of metal | $ | 13.2 | $ | 0.5 | $ | 4.9 | $ | 4.1 | $ | 3.6 | $ | 2.8 | ||||||
Production costs applicable to sales | (17.7 | ) | (0.4 | ) | (6.5 | ) | (7.1 | ) | (3.7 | ) | (3.9 | ) | ||||||
Administrative and general | — | — | — | — | — | — | ||||||||||||
Exploration | (8.7 | ) | (1.3 | ) | (1.2 | ) | (2.8 | ) | (3.4 | ) | (2.1 | ) | ||||||
Pre-development care and maintenance and other | (7.9 | ) | (1.5 | ) | (1.4 | ) | (4.8 | ) | (0.2 | ) | (0.1 | ) | ||||||
EBITDA | $ | (21.1 | ) | $ | (2.7 | ) | $ | (4.2 | ) | $ | (10.6 | ) | $ | (3.7 | ) | $ | (3.3 | ) |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Cash provided by (used in) operating activities | $ | (16.6 | ) | $ | (2.2 | ) | $ | (3.9 | ) | $ | (3.3 | ) | $ | (7.1 | ) | $ | (3.2 | ) |
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | 1.3 | (0.8 | ) | (0.9 | ) | (0.6 | ) | 3.5 | (0.9 | ) | ||||||||
Prepaid expenses and other | (0.1 | ) | — | (0.1 | ) | 0.1 | (0.1 | ) | (0.3 | ) | ||||||||
Inventories | (4.1 | ) | (0.5 | ) | (1.7 | ) | (2.3 | ) | 0.4 | 0.4 | ||||||||
Accounts payable and accrued liabilities | 2.7 | 0.7 | 3.2 | 0.6 | (1.8 | ) | (1.0 | ) | ||||||||||
Operating Cash Flow | $ | (16.8 | ) | $ | (2.8 | ) | $ | (3.4 | ) | $ | (5.5 | ) | $ | (5.1 | ) | $ | (5.0 | ) |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 |
Sales of metal | $18.8 | $2.8 | $4.1 | $5.2 | $6.7 | $2.8 |
Production costs | $8.8 | $1.6 | $2.0 | $2.6 | $2.7 | $1.0 |
EBITDA | $10.0 | $1.3 | $2.1 | $2.6 | $4.0 | $1.8 |
Operating income | $5.4 | $0.8 | $1.3 | $1.1 | $2.3 | $1.1 |
Operating cash flow | $10.0 | $1.3 | $1.7 | $2.8 | $4.2 | $2.1 |
Capital expenditures | $— | $— | $— | $— | $— | $— |
Gross profit | $5.4 | $0.8 | $1.3 | $1.1 | $2.3 | $1.1 |
Gross margin | 28.7% | 28.6% | 31.7% | 21.2% | 34.3% | 39.3% |
2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | |
Silver Production (000's) | 734 | 105 | 140 | 240 | 248 | 111 |
Cash operating costs/Ag Oz | $17.27 | $19.92 | $15.97 | $17.50 | $16.64 | $14.74 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Sales of metal | $ | 18.8 | $ | 2.8 | $ | 4.1 | $ | 5.2 | $ | 6.7 | $ | 2.8 | ||||||
Production costs applicable to sales | (8.8 | ) | (1.5 | ) | (2.0 | ) | (2.6 | ) | (2.7 | ) | (1.0 | ) | ||||||
Administrative and general | — | — | — | — | — | — | ||||||||||||
Exploration | — | — | — | — | — | — | ||||||||||||
Pre-development care and maintenance and other | — | — | — | — | — | — | ||||||||||||
EBITDA | $ | 10.0 | $ | 1.3 | $ | 2.1 | $ | 2.6 | $ | 4.0 | $ | 1.8 |
in millions of US$ | 2012 | 4Q 2012 | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | ||||||||||||
Cash provided by operating activities | $ | 10.0 | $ | 1.6 | $ | 1.5 | $ | 3.6 | $ | 3.2 | $ | 2.1 | ||||||
Changes in operating assets and liabilities: | ||||||||||||||||||
Receivables and other current assets | 0.2 | (0.3 | ) | 0.5 | (1.7 | ) | 1.7 | (1.2 | ) | |||||||||
Prepaid expenses and other | — | — | — | — | — | — | ||||||||||||
Inventories | 0.2 | (0.3 | ) | (0.3 | ) | 0.2 | 0.6 | 0.1 | ||||||||||
Accounts payable and accrued liabilities | (0.4 | ) | 0.3 | 0.7 | (1.3 | ) | 1.1 | |||||||||||
Operating Cash Flow | $ | 10.0 | $ | 1.3 | $ | 1.7 | $ | 2.8 | $ | 4.2 | $ | 2.1 |
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha(1) | Endeavor | Total | |||||||||||||||||||||
Total Cash Operating Cost (Non-U.S. GAAP) | $ | 11,732 | $ | 18,765 | $ | 30,588 | $ | 1,795 | $ | (16 | ) | $ | 2,104 | $ | 64,968 | |||||||||||||
Royalties | — | 1,712 | — | 1,528 | — | — | 3,240 | |||||||||||||||||||||
Production taxes | — | — | — | 940 | — | — | 940 | |||||||||||||||||||||
Total Cash Costs (Non-U.S. GAAP) | $ | 11,732 | $ | 20,477 | $ | 30,588 | $ | 4,263 | $ | (16 | ) | $ | 2,104 | $ | 69,148 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (3,865 | ) | — | 16 | (805 | ) | (4,654 | ) | ||||||||||||||||||
By-product credit | 34,314 | — | — | 20,682 | — | — | 54,996 | |||||||||||||||||||||
Other adjustments | 317 | (387 | ) | — | (1,755 | ) | — | — | (1,825 | ) | ||||||||||||||||||
Change in inventory | (5,955 | ) | (4,980 | ) | 288 | (265 | ) | 407 | 253 | (10,252 | ) | |||||||||||||||||
Depreciation, depletion and amortization | 32,058 | 4,258 | 13,809 | 2,302 | (702 | ) | 457 | 52,182 | ||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 72,466 | $ | 19,368 | $ | 40,820 | $ | 25,227 | $ | (295 | ) | $ | 2,009 | $ | 159,595 | |||||||||||||
Production of silver (ounces) | 1,554,606 | 1,343,035 | — | 828,013 | — | 105,615 | 3,831,269 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | 7.55 | $ | 13.97 | $ | — | $ | 2.17 | $ | — | $ | 19.92 | $ | 8.97 | ||||||||||||||
Cash costs per silver ounce | $ | 7.55 | $ | 15.25 | $ | — | $ | 5.15 | $ | — | $ | 19.92 | $ | 10.06 | ||||||||||||||
Production of gold (ounces) | — | — | 28,718 | — | — | — | 28,718 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,065 | $ | — | $ | — | $ | — | $ | 1,065 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,065 | $ | — | $ | — | $ | — | $ | 1,065 |
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha(1) | Endeavor | Total | |||||||||||||||||||||
Total Cash Operating Cost (Non-U.S. GAAP) | $ | 10,958 | $ | 69,771 | $ | 111,499 | $ | 26,959 | $ | 16,094 | $ | 12,675 | $ | 247,956 | ||||||||||||||
Royalties | — | 7,084 | — | 3,487 | 306 | — | 10,877 | |||||||||||||||||||||
Production taxes | — | — | — | 2,195 | — | — | 2,195 | |||||||||||||||||||||
Total Cash Costs (Non-U.S. GAAP) | $ | 10,958 | $ | 76,855 | $ | 111,499 | $ | 32,641 | $ | 16,400 | $ | 12,675 | $ | 261,028 | ||||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (10,910 | ) | — | (3,943 | ) | (3,648 | ) | (18,501 | ) | |||||||||||||||||
By-product credit | 176,237 | — | — | 63,440 | 422 | — | 240,099 | |||||||||||||||||||||
Other adjustments | 1,108 | 256 | 17 | (1,355 | ) | 882 | — | 908 | ||||||||||||||||||||
Change in inventory | 9,175 | (5,683 | ) | (13,517 | ) | (20,470 | ) | 3,922 | (204 | ) | (26,777 | ) | ||||||||||||||||
Depreciation, depletion and amortization | 146,557 | 16,707 | 41,645 | 8,065 | 515 | 4,591 | 218,080 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 344,035 | $ | 88,135 | $ | 128,734 | $ | 82,321 | $ | 18,198 | $ | 13,414 | $ | 674,837 | ||||||||||||||
Production of silver (ounces) | 8,236,013 | 5,930,394 | — | 2,801,405 | 323,386 | 734,008 | 18,025,206 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | 1.33 | $ | 11.76 | $ | — | $ | 9.62 | $ | 49.77 | $ | 17.27 | $ | 7.57 | ||||||||||||||
Cash costs per silver ounce | $ | 1.33 | $ | 12.95 | $ | — | $ | 11.65 | $ | 50.71 | $ | 17.27 | $ | 8.30 | ||||||||||||||
Production of gold (ounces) | — | — | 82,125 | — | — | — | 82,125 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,358 | $ | — | $ | — | $ | — | $ | 1,358 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,358 | $ | — | $ | — | $ | — | $ | 1,358 |
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha(1) | Endeavor | Total | |||||||||||||||||||||
Total Cash Operating Cost (Non-U.S. GAAP) | $ | (5,730 | ) | $ | 18,332 | $ | 24,035 | $ | 14,191 | $ | 4,386 | $ | 1,647 | $ | 56,861 | |||||||||||||
Royalties | — | 3,279 | — | — | 98 | — | 3,377 | |||||||||||||||||||||
Production taxes | — | — | — | 124 | — | — | 124 | |||||||||||||||||||||
Total Cash Costs (Non-U.S. GAAP) | $ | (5,730 | ) | $ | 21,611 | $ | 24,035 | $ | 14,315 | $ | 4,484 | $ | 1,647 | $ | 60,362 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (1,881 | ) | — | (516 | ) | (483 | ) | (2,880 | ) | |||||||||||||||||
By-product credit | 57,501 | — | — | 3,344 | 242 | — | 61,087 | |||||||||||||||||||||
Other adjustments | 233 | 608 | — | 266 | 97 | — | 1,204 | |||||||||||||||||||||
Change in inventory | (5,054 | ) | (869 | ) | 9,407 | (13,722 | ) | (296 | ) | (112 | ) | (10,646 | ) | |||||||||||||||
Depreciation, depletion and amortization | 42,646 | 6,021 | 7,016 | 1,152 | 475 | 750 | 58,060 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 89,596 | $ | 27,371 | $ | 38,577 | $ | 5,355 | $ | 4,486 | $ | 1,802 | $ | 167,187 | ||||||||||||||
Production of silver (ounces) | 2,690,368 | 1,997,416 | — | 373,589 | 129,972 | 111,723 | 5,303,068 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | (2.13 | ) | $ | 9.18 | $ | — | $ | 37.99 | $ | 33.75 | $ | 14.74 | $ | 6.19 | |||||||||||||
Cash costs per silver ounce | $ | (2.13 | ) | $ | 10.82 | $ | — | $ | 38.32 | $ | 34.50 | $ | 14.74 | $ | 6.85 | |||||||||||||
Production of gold (ounces) | — | — | 13,299 | — | — | — | 13,299 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,807 | $ | — | $ | — | $ | — | $ | 1,807 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,807 | $ | — | $ | — | $ | — | $ | 1,807 |
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha | Endeavor | Total | |||||||||||||||||||||
Total Cash Operating Cost (Non-U.S. GAAP) | $ | (8,743 | ) | $ | 68,277 | $ | 96,234 | $ | 31,978 | $ | 17,367 | $ | 11,573 | $ | 216,686 | |||||||||||||
Royalties | — | 11,561 | — | 2,177 | 685 | — | 14,423 | |||||||||||||||||||||
Production taxes | — | — | — | 409 | — | — | 409 | |||||||||||||||||||||
Total Cash Costs (Non-U.S. GAAP) | $ | (8,743 | ) | $ | 79,838 | $ | 96,234 | $ | 34,564 | $ | 18,052 | $ | 11,573 | $ | 231,518 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (11,003 | ) | — | (2,882 | ) | (2,872 | ) | (16,757 | ) | |||||||||||||||||
By-product credit | 197,342 | — | — | 9,898 | 949 | — | 208,189 | |||||||||||||||||||||
Other adjustments | 1,441 | 906 | 19 | 522 | 559 | — | 3,447 | |||||||||||||||||||||
Change in inventory | (3,839 | ) | (1,065 | ) | 16,422 | (16,727 | ) | (1,165 | ) | (67 | ) | (6,441 | ) | |||||||||||||||
Depreciation, depletion and amortization | 159,231 | 22,408 | 35,839 | 2,807 | 554 | 3,148 | 223,987 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 345,432 | $ | 102,087 | $ | 137,511 | $ | 31,064 | $ | 16,067 | $ | 11,782 | $ | 643,943 | ||||||||||||||
Production of silver (ounces) | 9,041,488 | 7,501,367 | — | 1,392,433 | 529,602 | 613,361 | 19,078,251 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | (0.97 | ) | $ | 9.10 | $ | — | $ | 22.97 | $ | 32.79 | $ | 18.87 | $ | 6.31 | |||||||||||||
Cash costs per silver ounce | $ | (0.97 | ) | $ | 10.64 | $ | — | $ | 24.82 | $ | 34.08 | $ | 18.87 | $ | 7.09 | |||||||||||||
Production of gold (ounces) | — | — | 82,125 | — | — | — | 82,125 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,088 | $ | — | $ | — | $ | — | $ | 1,088 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,088 | $ | — | $ | — | $ | — | $ | 1,088 |
Palmarejo | Rochester | |||||||
Total cash operating costs | $ | 187,195 | $ | 90,400 | ||||
Total cash costs | $ | 187,195 | $ | 96,081 | ||||
Revenue | ||||||||
Silver | 59% | 59% | ||||||
Gold | 41% | 41% | ||||||
Ounces produced | ||||||||
Silver | 8,236,013 | 2,801,405 | ||||||
Gold | 103,068 | 38,066 | ||||||
Total cash operating costs per ounce | ||||||||
Silver | $ | 13.45 | $ | 19.20 | ||||
Gold | $ | 742 | $ | 962 | ||||
Total cash costs per ounce | ||||||||
Silver | $ | 13.45 | $ | 20.40 | ||||
Gold | $ | 742 | $ | 1,023 |
Palmarejo | Rochester | |||||||
Total cash operating costs | $ | 188,599 | $ | 41,876 | ||||
Total cash costs | $ | 188,599 | $ | 44,463 | ||||
Revenue | ||||||||
Silver | 61% | 84% | ||||||
Gold | 39% | 16% | ||||||
Ounces produced | ||||||||
Silver | 9,041,488 | 1,392,433 | ||||||
Gold | 125,071 | 6,276 | ||||||
Total cash operating costs per ounce | ||||||||
Silver | $ | 12.82 | $ | 25.34 | ||||
Gold | $ | 581 | $ | 1,050 | ||||
Total cash costs per ounce | ||||||||
Silver | $ | 12.82 | $ | 26.91 | ||||
Gold | $ | 581 | $ | 1,115 |
SHORT TONS | GRADE (Oz/Ton) | OUNCES | |||||||||||||
YEAR END 2012 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||||||
PROVEN RESERVES | |||||||||||||||
Rochester | Nevada, USA | 56,304,000 | 0.54 | 0.004 | 30,501,000 | 230,000 | |||||||||
Martha | Argentina | — | — | — | — | — | |||||||||
San Bartolomé | Bolivia | 1,187,000 | 2.92 | — | 3,460,000 | — | |||||||||
Kensington | Alaska, USA | 647,000 | — | 0.277 | — | 179,000 | |||||||||
Endeavor | Australia | 2,258,000 | 4.32 | — | 9,757,000 | — | |||||||||
Palmarejo | Mexico | 5,747,000 | 4.67 | 0.061 | 26,858,000 | 348,000 | |||||||||
Joaquin | Argentina | — | — | — | — | — | |||||||||
Total | 66,143,000 | 70,577,000 | 757,000 | ||||||||||||
PROBABLE RESERVES | |||||||||||||||
Rochester | Nevada, USA | 23,619,000 | 0.61 | 0.003 | 14,396,000 | 78,000 | |||||||||
Mina Martha | Argentina | — | — | — | — | — | |||||||||
San Bartolomé | Bolivia | 41,699,000 | 2.53 | — | 105,628,000 | — | |||||||||
Kensington | Alaska, USA | 4,020,000 | — | 0.208 | — | 837,000 | |||||||||
Endeavor | Australia | 2,508,000 | 1.43 | — | 3,588,000 | — | |||||||||
Palmarejo | Mexico | 7,105,000 | 3.69 | 0.045 | 26,251,000 | 317,000 | |||||||||
Joaquin | Argentina | — | — | — | — | — | |||||||||
Total | 78,951,0000 | 149,863,000 | 1,231,000 | ||||||||||||
PROVEN AND PROBABLE RESERVES | |||||||||||||||
Rochester | Nevada, USA | 79,923,000 | 0.56 | 0.004 | 44,896,000 | 308,000 | |||||||||
Martha | Argentina | — | — | — | — | — | |||||||||
San Bartolomé | Bolivia | 42,886,000 | 2.54 | — | 109,088,000 | — | |||||||||
Kensington | Alaska, USA | 4,667,000 | — | 0.218 | — | 1,016,000 | |||||||||
Endeavor | Australia | 4,766,000 | 2.80 | — | 13,345,000 | — | |||||||||
Palmarejo | Mexico | 12,852,000 | 4.13 | 0.052 | 53,110,000 | 665,000 | |||||||||
Joaquin | Argentina | — | — | — | — | — | |||||||||
Total Proven and Probable | 145,094,000 | 220,439,000 | 1,988,000 |
SHORT TONS | GRADE (Oz/Ton) | OUNCES | |||||||||||||
YEAR END 2012 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||||||
MEASURED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 135,558,000 | 0.47 | 0.004 | 63,921,000 | 498,000 | |||||||||
Martha | Argentina | — | — | — | — | — | |||||||||
San Bartolomé | Bolivia | — | — | — | — | — | |||||||||
Kensington | Alaska, USA | 382,000 | — | 0.239 | — | 91,000 | |||||||||
Endeavor | Australia | 10,639,000 | 1.98 | — | 21,088,000 | — | |||||||||
Palmarejo | Mexico | 3,186,000 | 7.13 | 0.099 | 22,720,000 | 315,000 | |||||||||
Joaquin | Argentina | 5,942,000 | 4.58 | 0.003 | 27,191,000 | 19,000 | |||||||||
Total | 155,707,000 | 134,920,000 | 924,000 | ||||||||||||
INDICATED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 128,724,000 | 0.44 | 0.003 | 56,795,000 | 367,000 | |||||||||
Mina Martha | Argentina | 57,000 | 13.57 | 0.017 | 775,000 | 1,000 | |||||||||
San Bartolomé | Bolivia | 20,040,000 | 2.27 | — | 45,463,000 | — | |||||||||
Kensington | Alaska, USA | 2,224,000 | — | 0.196 | — | 435,000 | |||||||||
Endeavor | Australia | 302,000 | 10.23 | — | 3,090,000 | — | |||||||||
Palmarejo | Mexico | 20,526,000 | 1.12 | 0.032 | 23,021,000 | 649,000 | |||||||||
Joaquin | Argentina | 11,398,000 | 3.33 | 0.004 | 37,980,000 | 42,000 | |||||||||
Lejano | Argentina | 1,233,000 | 2.42 | 0.008 | 2,983,000 | 10,000 | |||||||||
Total | 184,504,000 | 170,108,000 | 1,504,000 | ||||||||||||
MEASURED AND INDICATED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 264,283,000 | 0.46 | 0.003 | 120,717,000 | 865,000 | |||||||||
Martha | Argentina | 57,000 | 13.57 | 0.017 | 775,000 | 1,000 | |||||||||
San Bartolomé | Bolivia | 20,040,000 | 2.27 | — | 45,463,000 | — | |||||||||
Kensington | Alaska, USA | 2,606,000 | — | 0.202 | — | 526,000 | |||||||||
Endeavor | Australia | 10,941,000 | 2.21 | — | 24,179,000 | — | |||||||||
Palmarejo | Mexico | 23,712,000 | 1.93 | 0.041 | 45,741,000 | 964,000 | |||||||||
Joaquin | Argentina | 17,340,000 | 3.76 | 0.004 | 65,171,000 | 61,000 | |||||||||
Lejano | Argentina | 1,233,000 | 2.42 | 0.008 | 2,983,000 | 10,000 | |||||||||
Total Measured and Indicated | 340,210,000 | 305,028,000 | 2,427,000 |
SHORT TONS | GRADE (Oz/Ton) | OUNCES | |||||||||||||
YEAR END 2012 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||||||
INFERRED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 45,643,000 | 0.60 | 0.003 | 27,201,000 | 123,000 | |||||||||
Martha | Argentina | 204,000 | 4.75 | 0.005 | 969,000 | 1,000 | |||||||||
San Bartolomé | Bolivia | 2,826,000 | 1.17 | — | 3,319,000 | — | |||||||||
Kensington | Alaska, USA | 704,000 | — | 0.244 | — | 172,000 | |||||||||
Endeavor | Australia | 3,527,000 | 1.09 | — | 3,836,000 | — | |||||||||
Palmarejo | Mexico | 11,903,000 | 1.86 | 0.038 | 22,104,000 | 457,000 | |||||||||
Joaquin | Argentina | 1,060,000 | 2.94 | 0.003 | 3,113,000 | 4,000 | |||||||||
Lejano | Argentina | 3,307,000 | 1.73 | 0.006 | 5,713,000 | 19,000 | |||||||||
Total Inferred | 69,174,000 | 66,254,000 | 775,000 |
1. | Effective December 31, 2012. |
2. | Metal prices used for mineral reserves were $27.50 per ounce of silver and $1,450 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $34.00 per ounce of silver. Metal prices used for |
3. | Palmarejo mineral resources are the addition of Palmarejo, Guadalupe and La Patria (Measured, Indicated and Inferred). |
4. | Mineral Resources are in addition to mineral reserves and have not demonstrated economic viability. |
5. | Current mineral resources were inclusive of disputed and undisputed claims at Rochester. While the Company believes it holds a superior position in the ongoing claims dispute, the Company believes an adverse legal outcome would cause it to modify mineral resources. |
6. | Rounding of tons and ounces, as required by reporting guidelines may result in apparent differences between tons, grade and contained metal content. |
7. | For details on the estimation of mineral resources and reserves for each property, please refer to the relevant Technical Report on file at www.sedar.com. |
SHORT TONS | GRADE (Oz/Ton) | OUNCES | |||||||||||||
YEAR END 2011 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||||||
PROVEN RESERVES | |||||||||||||||
Rochester | Nevada, USA | 31,532,000 | 0.59 | 0.006 | 18,681,000 | 179,000 | |||||||||
Martha | Argentina | — | — | — | — | — | |||||||||
San Bartolomé | Bolivia | 959,000 | 3.01 | — | 2,888,000 | — | |||||||||
Kensington | Alaska, USA | 1,164,000 | — | 0.280 | — | 326,000 | |||||||||
Endeavor | Australia | 2,635,000 | 1.39 | — | 3,674,000 | — | |||||||||
Palmarejo | Mexico | 4,916,000 | 5.31 | 0.067 | 26,091,000 | 330,000 | |||||||||
Joaquin (51%) | Argentina | — | — | — | — | — | |||||||||
Total | 41,206,000 | 51,334,000 | 835,000 | ||||||||||||
PROBABLE RESERVES | |||||||||||||||
Rochester | Nevada, USA | 15,747,000 | 0.69 | 0.004 | 10,892,000 | 68,000 | |||||||||
Martha | Argentina | 53,000 | 12.79 | 0.011 | 671,000 | 1,000 | |||||||||
San Bartolomé | Bolivia | 43,556,000 | 2.64 | — | 115,192,000 | — | |||||||||
Kensington | Alaska, USA | 4,842,000 | — | 0.209 | — | 1,104,000 | |||||||||
Endeavor | Australia | 2,998,000 | 2.50 | — | 7,501,000 | — | |||||||||
Palmarejo | Mexico | 7,581,000 | 4.05 | 0.047 | 30,727,000 | 358,000 | |||||||||
Joaquin (51%) | Argentina | — | — | — | — | — | |||||||||
Total | 74,777,0000 | 164,983,000 | 1,441,000 | ||||||||||||
PROVEN AND PROBABLE RESERVES | |||||||||||||||
Rochester | Nevada, USA | 47,280,000 | 0.63 | 0.005 | 29,573,000 | 247,000 | |||||||||
Martha | Argentina | 53,000 | 12.79 | 0.011 | 671,000 | 1,000 | |||||||||
San Bartolomé | Bolivia | 44,515,000 | 2.65 | — | 118,080,000 | — | |||||||||
Kensington | Alaska, USA | 6,006,000 | — | 0.223 | — | 1,340,000 | |||||||||
Endeavor | Australia | 5,633,000 | 1.98 | — | 11,175,000 | — | |||||||||
Palmarejo | Mexico | 12,497,000 | 4.55 | 0.055 | 56,818,000 | 688,000 | |||||||||
Joaquin (51%) | Argentina | — | — | — | — | — | |||||||||
Total Proven and Probable | 115,983,000 | 216,317,000 | 2,276,000 |
SHORT TONS | GRADE (Oz/Ton) | OUNCES | |||||||||||||
YEAR END 2011 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||||||
MEASURED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 131,085,000 | 0.46 | 0.004 | 60,586,000 | 501,000 | |||||||||
Martha | Argentina | — | — | — | — | — | |||||||||
San Bartolomé | Bolivia | — | — | — | — | — | |||||||||
Kensington | Alaska, USA | 495,000 | — | 0.234 | — | 116,000 | |||||||||
Endeavor | Australia | 10,924,000 | 2.67 | — | 29,149,000 | — | |||||||||
Palmarejo | Mexico | 1,793,000 | 4.24 | 0.052 | 7,594,000 | 93,000 | |||||||||
Joaquin (51%) | Argentina | — | — | — | — | — | |||||||||
Total | 144,297,000 | 97,329,000 | 710,000 | ||||||||||||
INDICATED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 120,387,000 | 0.43 | 0.003 | 51,762,000 | 366,000 | |||||||||
Martha | Argentina | 35,000 | 12.15 | 0.011 | 427,000 | — | |||||||||
San Bartolomé | Bolivia | 21,264,000 | 2.59 | — | 54,968,000 | — | |||||||||
Kensington | Alaska, USA | 2,544,000 | — | 0.185 | — | 471,000 | |||||||||
Endeavor | Australia | 124,000 | 0.01 | — | 2,,000 | — | |||||||||
Palmarejo | Mexico | 3,269,000 | 2.88 | 0.034 | 9,399,000 | 111,000 | |||||||||
Joaquin (51%) | Argentina | 4,050,000 | 2.48 | 0.005 | 10,043,000 | 18,000 | |||||||||
Lejano | Argentina | — | — | — | — | — | |||||||||
Total | 151,672,000 | 126,601,000 | 968,000 | ||||||||||||
MEASURED AND INDICATED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 251,472,000 | 0.45 | 0.003 | 112,349,000 | 867,000 | |||||||||
Martha | Argentina | 35,000 | 12.15 | 0.011 | 427,000 | — | |||||||||
San Bartolomé | Bolivia | 21,264,000 | 2.59 | — | 54,968,000 | — | |||||||||
Kensington | Alaska, USA | 3,039,000 | — | 0.193 | — | 587,000 | |||||||||
Endeavor | Australia | 11,047,000 | 2.64 | — | 29,151,000 | — | |||||||||
Palmarejo | Mexico | 5,062,000 | 3.36 | 0.040 | 16,993,000 | 205,000 | |||||||||
Joaquin (51%) | Argentina | 4,050,000 | 2.48 | 0.005 | 10,043,000 | 18,000 | |||||||||
Lejano | Argentina | — | — | — | — | — | |||||||||
Total Measured and Indicated | 295,969,000 | 223,930,000 | 1,677,000 |
SHORT TONS | GRADE (Oz/Ton) | OUNCES | |||||||||||||
YEAR END 2011 | LOCATION | SILVER | GOLD | SILVER | GOLD | ||||||||||
INFERRED RESOURCES | |||||||||||||||
Rochester | Nevada, USA | 40,543,000 | 0.58 | 0.003 | 23,619,000 | 122,000 | |||||||||
Martha | Argentina | 259,000 | 4.32 | 0.005 | 1,121,000 | 1,000 | |||||||||
San Bartolomé | Bolivia | 3,385,000 | 1.07 | — | 3,617,000 | — | |||||||||
Kensington | Alaska, USA | 731,000 | — | 0.232 | — | 170,000 | |||||||||
Endeavor | Australia | 3,527,000 | 1.09 | — | 3,836,000 | — | |||||||||
Palmarejo | Mexico | 11,653,000 | 2.40 | 0.052 | 27,928,000 | 612,000 | |||||||||
Joaquin (51%) | Argentina | 7,755,000 | 3.15 | 0.003 | 24,456,000 | 21,000 | |||||||||
Lejano | Argentina | — | — | — | — | — | |||||||||
Total | 67,853,000 | 84,576,000 | 926,000 |
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