Delaware (State or other jurisdiction of incorporation or organization) | 1-8641 (Commission File Number) | 82-0109423 (IRS Employer Identification No.) |
Exhibit No. | Description |
Exhibit 99.1 | Press Release dated August 4, 2015 |
COEUR MINING, INC. | |
Date: August 4, 2015 | By: /s/ Peter C. Mitchell |
Name: Peter C. Mitchell Title: Senior Vice President and Chief Financial Officer |
Exhibit No. | Description |
Exhibit 99.1 | Press Release dated August 4, 2015 |
• | Silver production was 4.3 million ounces and gold production was 80,855 ounces, or 9.1 million silver equivalent1 ounces, a 13% increase as previously announced on July 9, 2015 |
• | Adjusted costs applicable to sales were $12.56 and adjusted all-in sustaining costs were $16.60 per silver equivalent ounce1, the lowest level since Coeur began reporting this metric in 2013 |
• | Adjusted costs applicable to sales per gold ounce1 at Kensington of $745 fell 7% from the first quarter |
• | Adjusted costs applicable to sales per silver equivalent ounce1 at Palmarejo declined 9% from the first quarter to $13.21 |
• | Adjusted costs applicable to sales per silver equivalent ounce1 at Rochester were $12.01, down 7% from the first quarter |
• | Adjusted costs applicable to sales per silver ounce1 at San Bartolomé dropped 8% from the first quarter to $13.26 |
• | Completed the acquisition of Paramount Gold and Silver Corp. and announced an 89% increase in silver reserves and a 76% increase in gold reserves at Palmarejo at a 31% higher average silver grade |
• | On June 24, Coeur announced a 39% increase in Wharf's gold reserves. The addition of Wharf represents a 35% increase in Coeur's total gold reserves |
• | On June 25, Coeur closed a new $100 million, five-year, senior secured term loan and repaid a pre-existing $50 million bridge loan due in the first quarter of 2016 |
• | Cash, cash equivalents, and short-term investments were $205.9 million at June 30 |
(silver and silver equivalent ounces in thousands) | Silver | Gold | Total Silver Equivalent |
Palmarejo | 4,200 - 4,700 | 62,000 - 67,000 | 7,920 - 8,720 |
San Bartolomé | 5,300 - 5,500 | — | 5,300 - 5,500 |
Rochester | 4,700 - 5,000 | 55,000 - 65,000 | 8,000 - 8,900 |
Endeavor | 500 - 600 | — | 500 - 600 |
Kensington | — | 115,000 - 125,000 | 6,900 - 7,500 |
Wharf | — | 74,000 - 78,000 | 4,440 - 4,680 |
Total | 14,700 - 15,800 | 306,000 - 335,000 | 33,060 - 35,900 |
(dollars in millions, except per ounce amounts) | New 2015 Guidance | Old 2015 Guidance |
Costs Applicable to Sales per Silver Equivalent Ounce1 - Palmarejo | $15.00 - $16.00 | $16.25 - $17.75 |
Costs Applicable to Sales per Silver Ounce1 - San Bartolomé | $13.50 - $15.00 | $13.50 - $15.00 |
Costs Applicable to Sales per Silver Equivalent Ounce1 - Rochester | $12.50 - $14.00 | $12.50 - $14.00 |
Costs Applicable to Sales per Gold Ounce - Kensington | $850 - $900 | $900 - $975 |
Costs Applicable to Sales per Gold Equivalent Ounce1 - Wharf | $750 - $825 | $750 - $825 |
Capital Expenditures | $95 - $105 | $95 - $105 |
General and Administrative Expenses | $36 - $39 | $36 - $39 |
Exploration Expense | $13 - $16 | $13 - $16 |
All-in Sustaining Costs per Silver Equivalent Ounce1 | $17.00 - $18.00 | $17.50 - $18.50 |
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 | ||||||||||
Revenue | $ | 166.3 | $ | 153.0 | $ | 140.6 | $ | 170.9 | $ | 164.6 | |||||
Costs Applicable to Sales | $ | 119.1 | $ | 115.1 | $ | 126.5 | $ | 125.9 | $ | 118.7 | |||||
General and Administrative Expenses | $ | 8.5 | $ | 8.8 | $ | 9.0 | $ | 8.5 | $ | 9.4 | |||||
Adjusted EBITDA1 | $ | 34.7 | $ | 23.7 | $ | 7.8 | $ | 30.7 | $ | 32.9 | |||||
Net Income (Loss) | $ | (16.7 | ) | $ | (33.3 | ) | $ | (1,079.1 | ) | $ | 3.5 | $ | (43.1 | ) | |
Net Income (Loss) Per Share | $ | (0.12 | ) | $ | (0.32 | ) | $ | (10.53 | ) | $ | 0.03 | $ | (0.42 | ) | |
Adjusted Net Income (Loss)1 | $ | (14.5 | ) | $ | (22.7 | ) | $ | (37.5 | ) | $ | (18.5 | ) | $ | (21.5 | ) |
Adjusted Net Income (Loss)1 Per Share | $ | (0.11 | ) | $ | (0.22 | ) | $ | (0.37 | ) | $ | (0.18 | ) | $ | (0.21 | ) |
Weighted Average Shares | 135.0 | 102.6 | 102.4 | 102.6 | 102.4 | ||||||||||
Cash Flow From Operating Activities | $ | 36.9 | $ | (4.0 | ) | $ | 0.7 | $ | 31.3 | $ | 30.5 | ||||
Capital Expenditures | $ | 23.7 | $ | 17.6 | $ | 20.1 | $ | 16.8 | $ | 15.4 | |||||
Cash, Equivalents & Short-Term Investments | $ | 205.9 | $ | 179.6 | $ | 270.9 | $ | 295.4 | $ | 316.8 | |||||
Total Debt2 | $ | 547.7 | $ | 513.5 | $ | 468.5 | $ | 469.5 | $ | 480.1 | |||||
Average Realized Price Per Ounce - Silver | $ | 16.23 | $ | 16.77 | $ | 16.40 | $ | 19.46 | $ | 19.60 | |||||
Average Realized Price Per Ounce - Gold | $ | 1,179 | $ | 1,204 | $ | 1,186 | $ | 1,260 | $ | 1,277 | |||||
Silver Ounces Produced | 4.3 | 3.8 | 4.3 | 4.3 | 4.5 | ||||||||||
Gold Ounces Produced | 80,855 | 69,734 | 64,534 | 64,989 | 61,025 | ||||||||||
Silver Equivalent Ounces Produced1 | 9.1 | 8.0 | 8.3 | 8.2 | 8.1 | ||||||||||
Silver Ounces Sold | 4.0 | 4.1 | 4.6 | 4.3 | 4.6 | ||||||||||
Gold Ounces Sold | 84,312 | 68,420 | 52,785 | 69,541 | 57,751 | ||||||||||
Silver Equivalent Ounces Sold1 | 9.1 | 8.2 | 7.9 | 8.4 | 8.1 | ||||||||||
Adjusted Costs Applicable to Sales per AgEq Oz1 | $ | 12.56 | $ | 13.71 | $ | 14.43 | $ | 14.19 | $ | 14.00 | |||||
Adjusted Costs Applicable to Sales per AuEq Oz1 | $ | 816 | $ | 797 | $ | 792 | $ | 889 | $ | 821 | |||||
Adjusted All-in Sustaining Costs per AgEq Oz1 | $ | 16.60 | $ | 17.66 | $ | 19.25 | $ | 18.27 | $ | 19.10 |
(Dollars in millions, except per ounce amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 |
Underground Operations: | |||||
Tons mined | 172,730 | 149,150 | 187,730 | 169,656 | 177,359 |
Average silver grade (oz/t) | 3.90 | 4.34 | 4.49 | 4.88 | 6.15 |
Average gold grade (oz/t) | 0.09 | 0.07 | 0.06 | 0.10 | 0.11 |
Surface Operations: | |||||
Tons mined | 257,862 | 281,481 | 320,802 | 343,001 | 320,583 |
Average silver grade (oz/t) | 3.47 | 3.79 | 2.90 | 3.09 | 3.72 |
Average gold grade (oz/t) | 0.03 | 0.04 | 0.03 | 0.03 | 0.03 |
Processing: | |||||
Total tons milled | 435,841 | 451,918 | 510,813 | 518,212 | 534,718 |
Average recovery rate – Ag | 78.5% | 78.7% | 80.2% | 82.7% | 75.6% |
Average recovery rate – Au | 76.2% | 73.9% | 78.7% | 86.9% | 78.9% |
Silver ounces produced (000's) | 1,247 | 1,354 | 1,444 | 1,533 | 1,761 |
Gold ounces produced | 18,127 | 15,495 | 15,237 | 22,514 | 23,706 |
Silver equivalent ounces produced1 (000's) | 2,335 | 2,284 | 2,359 | 2,883 | 3,183 |
Silver ounces sold (000's) | 1,228 | 1,330 | 1,375 | 1,605 | 1,983 |
Gold ounces sold | 15,706 | 13,793 | 16,255 | 23,600 | 25,753 |
Silver equivalent ounces sold1 (000's) | 2,170 | 2,158 | 2,350 | 3,021 | 3,528 |
Revenues | $38.9 | $39.4 | $42.2 | $61.4 | $72.4 |
Costs applicable to sales | $30.1 | $34.5 | $48.1 | $46.0 | $49.6 |
Adjusted costs applicable to sales per AgEq ounce1 | $13.21 | $14.56 | $15.70 | $14.43 | $13.48 |
Exploration expense | $1.8 | $1.1 | $1.5 | $2.6 | $1.6 |
Cash flow from operating activities | $9.7 | $(0.2) | $(3.2) | $20.2 | $27.4 |
Sustaining capital expenditures | $2.7 | $3.1 | $5.5 | $1.9 | $5.3 |
Development capital expenditures | $8.0 | $6.1 | $5.4 | $4.0 | $0.3 |
Total capital expenditures | $10.7 | $9.2 | $10.9 | $5.9 | $5.6 |
Free cash flow (before royalties) | $(1.0) | $(9.4) | $(14.1) | $14.3 | $21.8 |
Royalties paid | $9.8 | $10.4 | $10.0 | $11.4 | $12.3 |
Free cash flow3 | $(10.8) | $(19.8) | $(24.1) | $2.9 | $9.5 |
• | Adjusted costs applicable to sales per silver equivalent ounce1 of $13.21 decreased 9% from the first quarter due to lower underground mining costs, which also represented a higher proportion of production. Underground mining costs of $44 per ton quarter declined more than 30% from $64 per ton in the first quarter |
• | Palmarejo continues the transition to underground mining at the Guadalupe mine and the Independencia mine (expected beginning early 2016) while mining activities in the historic zones gradually decline. Open-pit mining is expected to end during the second half of 2015 |
• | Development of the tunnel to Independencia is on track and expected to reach the ore body by the end of 2015 |
• | Raising 2015 production guidance by approximately 9% to 4.2 - 4.7 million ounces of silver and 62,000 - 67,000 ounces of gold from 3.9 - 4.3 million ounces of silver and 55,000 - 65,000 ounces of gold, while lowering costs applicable to sales per silver equivalent ounce1 guidance by approximately 9% to $15.00 - $16.00 from $16.25 - $17.75 |
(Dollars in millions, except per ounce amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 |
Ore tons placed | 3,859,965 | 4,013,879 | 3,876,944 | 3,892,421 | 3,329,582 |
Average silver grade (oz/t) | 0.61 | 0.74 | 0.60 | 0.51 | 0.58 |
Average gold grade (oz/t) | 0.003 | 0.004 | 0.004 | 0.005 | 0.003 |
Silver ounces produced (000's) | 1,294 | 1,144 | 1,170 | 1,156 | 1,112 |
Gold ounces produced | 16,411 | 13,721 | 15,764 | 11,702 | 9,230 |
Silver equivalent ounces produced1 (000's) | 2,279 | 1,967 | 2,116 | 1,858 | 1,666 |
Silver ounces sold (000's) | 1,120 | 1,351 | 1,154 | 1,067 | 1,006 |
Gold ounces sold | 15,085 | 17,754 | 14,131 | 8,932 | 8,970 |
Silver equivalent ounces sold1 (000's) | 2,025 | 2,416 | 2,002 | 1,603 | 1,544 |
Revenues | $36.3 | $44.0 | $36.0 | $32.4 | $31.2 |
Costs applicable to sales | $24.4 | $31.4 | $28.7 | $23.7 | $24.4 |
Adjusted costs applicable to sales per silver equivalent ounce1 | $12.01 | $12.95 | $13.82 | $14.78 | $15.73 |
Exploration expense | $0.5 | $0.7 | $0.6 | $0.1 | $0.7 |
Cash flow from operating activities | $8.8 | $16.4 | $10.2 | $8.2 | $4.3 |
Sustaining capital expenditures | $2.4 | $0.8 | $2.7 | $4.2 | $4.0 |
Development capital expenditures | $3.5 | $2.5 | $— | $— | $— |
Total capital expenditures | $5.9 | $3.3 | $2.7 | $4.2 | $4.0 |
Free cash flow3 | $2.9 | $13.1 | $7.5 | $4.0 | $0.3 |
• | Second quarter adjusted costs applicable to sales per silver equivalent ounce1 were $12.01, down 7% from the first quarter due to lower crushing and leaching costs. Mining costs per ton of $1.39 declined 9% from $1.53 per ton in the first quarter |
• | Operating cash flow of $8.8 million declined from the first quarter due to an increase in metal inventory and a decrease in accounts payable |
• | Expected completion of the crushing capacity expansion and increased Stage III leach pad capacity during the third quarter |
• | Approval for POA 10 (expansion of Stage IV leach pad and construction of new Stage V leach pad) is expected by early 2016. Minimal preparatory work for the Stage V leach pad expected in 2016 with major construction activity planned for 2017 |
• | In 2015, Rochester is expected to produce 4.7 - 5.0 million ounces of silver and 55,000 - 65,000 ounces of gold at costs applicable to sales per silver equivalent ounce1 of $12.50 - $14.00 |
(Dollars in millions, except per ounce amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 |
Tons milled | 170,649 | 164,951 | 167,417 | 145,097 | 163,749 |
Average gold grade (oz/t) | 0.18 | 0.24 | 0.21 | 0.23 | 0.18 |
Average recovery rate | 94.9% | 94.8% | 94.2% | 93.0% | 94.5% |
Gold ounces produced | 29,845 | 33,909 | 33,533 | 30,773 | 28,089 |
Gold ounces sold | 36,607 | 36,873 | 22,399 | 37,009 | 23,028 |
Revenues | $42.5 | $44.0 | $26.0 | $45.9 | $29.0 |
Costs applicable to sales | $27.5 | $29.4 | $18.9 | $34.7 | $23.2 |
Adjusted costs applicable to sales per gold ounce1 | $745 | $797 | $792 | $889 | $821 |
Exploration expense | $0.4 | $1.7 | $2.8 | $2.6 | $1.6 |
Cash flow from operating activities | $12.0 | $12.3 | $(3.7) | $17.0 | $(0.6) |
Sustaining capital expenditures | $4.2 | $4.1 | $3.3 | $3.6 | $4.0 |
Development capital expenditures | $0.5 | $— | $0.6 | $— | $— |
Total capital expenditures | $4.7 | $4.1 | $3.9 | $3.6 | $4.0 |
Free cash flow3 | $7.3 | $8.2 | $(7.6) | $13.4 | $(4.6) |
• | Strong mill throughput of approximately 1,875 tons per day and lower diesel and mining costs ($51 per ton, down from $55 per ton in the first quarter) caused a 7% decline in adjusted costs applicable to sales per gold ounce1 to $745 in the second quarter. Mining costs per ton declined 7% to $51 from $55 in the first quarter |
• | Development of the decline into the high-grade Jualin deposit is now underway. Underground drilling at Jualin is expected to begin in early 2016 |
• | Raising 2015 production guidance and lowering 2015 cost guidance to 115,000 - 125,000 ounces of gold at costs applicable to sales per gold ounce of $850 - $900, improved approximately 7% from prior guidance of 110,000 - 115,000 ounces of gold at costs applicable to sales per gold ounce of $900 - $975 |
(Dollars in millions, except per ounce amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 |
Tons milled | 457,232 | 406,951 | 454,135 | 471,938 | 437,975 |
Average silver grade (oz/t) | 3.73 | 3.65 | 3.77 | 3.70 | 3.87 |
Average recovery rate | 87.6% | 81.6% | 88.0% | 86.5% | 87.5% |
Silver ounces produced (000's) | 1,495 | 1,213 | 1,507 | 1,509 | 1,481 |
Silver ounces sold (000's) | 1,439 | 1,290 | 1,987 | 1,438 | 1,494 |
Revenues | $23.4 | $21.5 | $32.6 | $28.4 | $29.1 |
Costs applicable to sales | $19.2 | $19.1 | $29.6 | $20.4 | $20.7 |
Adjusted costs applicable to sales per silver ounce1 | $13.26 | $14.47 | $14.38 | $13.67 | $13.85 |
Exploration expense | $— | $— | $— | $— | $0.1 |
Cash flow from operating activities | $5.4 | $5.0 | $2.3 | $12.3 | $18.9 |
Sustaining capital expenditures | $1.0 | $0.9 | $2.0 | $2.8 | $1.7 |
Development capital expenditures | $— | $— | $— | $— | $— |
Total capital expenditures | $1.0 | $0.9 | $2.0 | $2.8 | $1.7 |
Free cash flow3 | $4.4 | $4.1 | $0.3 | $9.5 | $17.2 |
• | Higher throughput, grade and recovery resulted in higher production and an 8% decline in adjusted costs applicable to sales per silver ounce to $13.26 |
• | On July 10, political protests in Potosi, Bolivia prompted a temporary cessation of mining activity at San Bartolomé. Processing activities were restarted on July 31 and mining activities have fully resumed. As a result, 2015 production guidance has been lowered to 5.3 - 5.5 million ounces of silver, down from 5.8 - 6.1 million previously while maintaining costs applicable to sales guidance of $13.50 - $15.00 per silver equivalent ounce1 |
(Dollars in millions, except per ounce amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 |
Ore tons placed | 887,409 | 415,996 | — | — | — |
Average gold grade (oz/t) | 0.025 | 0.020 | — | — | — |
Gold equivalent ounces produced1 | 16,794 | 6,609 | — | — | — |
Gold equivalent ounces sold1 | 17,131 | — | — | — | — |
Revenues | $20.4 | $— | — | — | — |
Costs applicable to sales | $16.6 | $— | — | — | — |
Adjusted costs applicable to sales per gold equivalent ounce1 | $970 | $— | — | — | — |
Exploration expense | $— | $— | — | — | — |
Cash flow from operating activities | $8.2 | $(7.2) | — | — | — |
Sustaining capital expenditures | $1.2 | $0.1 | — | — | — |
Development capital expenditures | $— | $— | — | — | — |
Total capital expenditures | $1.2 | $0.1 | — | — | — |
Free cash flow3 | $7.0 | $(7.3) | — | — | — |
• | The second quarter was the first full quarter of operating results since the acquisition closed on February 20, 2015 |
• | In June, Coeur announced a 39% increase in Wharf's gold reserves. A technical report was filed today, reflecting an after-tax NPV10% of $138 million based on the current mine plan, average annual gold production of almost 90,000 ounces, and average annual operating cash flow of more than $30 million |
• | Significantly higher production is expected in the second half of 2015 at lower unit costs mainly due to higher mining rates. For the full year, Wharf is expected to produce 74,000 - 78,000 ounces of gold at costs applicable to sales per gold equivalent ounce1 of $750 - $825. Capital expenditures are expected to be approximately $3.0 million in 2015 |
(Dollars in millions, except per ounce amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 |
Tons milled | 191,175 | 185,299 | 214,180 | 199,757 | 185,538 |
Average silver grade (oz/t) | 2.35 | 1.69 | 1.99 | 1.44 | 1.41 |
Average recovery rate | 45.4% | 42.4% | 44.9% | 49.1% | 42.4% |
Silver ounces produced (000's) | 204 | 133 | 191 | 141 | 111 |
Silver ounces sold (000's) | 209 | 118 | 192 | 141 | 106 |
Metal sales | $3.1 | $1.9 | $2.7 | $2.4 | $2.0 |
Royalty revenue | $1.8 | $2.0 | $0.7 | $0.6 | $0.9 |
Costs applicable to sales (Endeavor silver stream) | $1.4 | $0.6 | $1.1 | $1.1 | $0.8 |
Costs applicable to sales per silver equivalent ounce1 | $6.46 | $5.37 | $5.69 | $7.71 | $7.94 |
Cash flow from operating activities | $2.1 | $2.2 | $1.5 | $2.4 | $0.8 |
Free cash flow3 | $2.1 | $2.2 | $1.5 | $2.4 | $0.8 |
• | There are five cash-flowing royalties and streams, four non-cash-flowing royalties, and several investments in junior mining companies held in Coeur Capital or its affiliates |
• | Coeur Capital's largest source of cash flow is the silver stream on the Endeavor mine in New South Wales, Australia in which the Company owns 100% of the silver up to a total of 20.0 million payable ounces. At June 30, 2015, the Company has received 5.8 million ounces, or 29.0% of the total |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
In thousands, except share data | |||||||||||||||
Revenue | $ | 166,263 | $ | 164,562 | $ | 319,219 | $ | 324,195 | |||||||
COSTS AND EXPENSES | |||||||||||||||
Costs applicable to sales | 119,097 | 118,687 | 234,160 | 225,583 | |||||||||||
Amortization | 38,974 | 41,422 | 72,064 | 81,849 | |||||||||||
General and administrative | 8,451 | 9,398 | 17,286 | 23,294 | |||||||||||
Exploration | 3,579 | 5,153 | 7,845 | 9,370 | |||||||||||
Pre-development, reclamation, and other | 2,267 | 8,760 | 9,030 | 15,775 | |||||||||||
Total costs and expenses | 172,368 | 183,420 | 340,385 | 355,871 | |||||||||||
OTHER INCOME (EXPENSE), NET | |||||||||||||||
Fair value adjustments, net | 2,754 | (8,282 | ) | (2,130 | ) | (19,717 | ) | ||||||||
Impairment of equity securities | (31 | ) | (934 | ) | (1,545 | ) | (3,522 | ) | |||||||
Interest income and other, net | (2,821 | ) | (116 | ) | (3,817 | ) | (2,100 | ) | |||||||
Interest expense, net of capitalized interest | (10,734 | ) | (12,310 | ) | (21,499 | ) | (25,365 | ) | |||||||
Total other income (expense), net | (10,832 | ) | (21,642 | ) | (28,991 | ) | (50,704 | ) | |||||||
Income (loss) before income and mining taxes | (16,937 | ) | (40,500 | ) | (50,157 | ) | (82,380 | ) | |||||||
Income and mining tax (expense) benefit | 260 | (2,621 | ) | 192 | 2,068 | ||||||||||
NET INCOME (LOSS) | $ | (16,677 | ) | $ | (43,121 | ) | $ | (49,965 | ) | $ | (80,312 | ) | |||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | |||||||||||||||
Unrealized gain (loss) on equity securities, net of tax of $7 for the three months ended June 30, 2015 and $487 and $253 for the three and six months ended June 30, 2014, respectively | (1,312 | ) | (773 | ) | (2,813 | ) | (401 | ) | |||||||
Reclassification adjustments for impairment of equity securities, net of tax of $(362) and $(1,363) for the three and six months ended June 30, 2014, respectively | 31 | 572 | 1,545 | 2,159 | |||||||||||
Reclassification adjustments for realized loss on sale of equity securities, net of tax of $(10) for the three and six months ended June 30, 2014, respectively | 904 | 17 | 904 | 17 | |||||||||||
Other comprehensive income (loss) | (377 | ) | (184 | ) | (364 | ) | 1,775 | ||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (17,054 | ) | $ | (43,305 | ) | $ | (50,329 | ) | $ | (78,537 | ) | |||
NET INCOME (LOSS) PER SHARE | |||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.42 | ) | $ | (0.42 | ) | $ | (0.78 | ) | |||
Diluted | $ | (0.12 | ) | $ | (0.42 | ) | $ | (0.42 | ) | $ | (0.78 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
In thousands | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
Net income (loss) | $ | (16,677 | ) | $ | (43,121 | ) | $ | (49,965 | ) | (80,312 | ) | ||||
Adjustments: | |||||||||||||||
Amortization | 38,974 | 41,422 | 72,064 | 81,849 | |||||||||||
Accretion | 3,526 | 4,502 | 6,676 | 9,093 | |||||||||||
Deferred income taxes | (5,053 | ) | (3,844 | ) | (7,237 | ) | (15,705 | ) | |||||||
Loss on termination of revolving credit facility | — | — | — | 3,035 | |||||||||||
Fair value adjustments, net | (2,754 | ) | 8,282 | 2,130 | 19,717 | ||||||||||
Stock-based compensation | 2,604 | 2,385 | 4,754 | 4,950 | |||||||||||
Impairment of equity securities | 31 | 934 | 1,545 | 3,522 | |||||||||||
Foreign exchange and other | 4,224 | (54 | ) | 5,303 | (869 | ) | |||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables | (2,342 | ) | 4,921 | 214 | 10,544 | ||||||||||
Prepaid expenses and other current assets | 160 | 3,551 | (1,167 | ) | (4,558 | ) | |||||||||
Inventory and ore on leach pads | 4,649 | (1,606 | ) | 5,333 | (15,519 | ) | |||||||||
Accounts payable and accrued liabilities | 9,521 | 13,118 | (6,759 | ) | 5,117 | ||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 36,863 | 30,490 | 32,891 | 20,864 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
Capital expenditures | (23,677 | ) | (15,356 | ) | (41,297 | ) | (27,292 | ) | |||||||
Acquisitions, net of cash acquired | (9,152 | ) | (2,250 | ) | (111,170 | ) | (2,250 | ) | |||||||
Other | (103 | ) | 12 | (1,676 | ) | (13 | ) | ||||||||
Purchase of short-term investments and equity securities | (1,597 | ) | (2,139 | ) | (1,873 | ) | (48,360 | ) | |||||||
Sales and maturities of short-term investments | 399 | 800 | 469 | 890 | |||||||||||
CASH USED IN INVESTING ACTIVITIES | (34,130 | ) | (18,933 | ) | (155,547 | ) | (77,025 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
Issuance of notes and bank borrowings | 100,000 | — | 153,500 | 153,000 | |||||||||||
Payments on debt, capital leases, and associated costs | (66,626 | ) | (2,851 | ) | (75,220 | ) | (6,962 | ) | |||||||
Gold production royalty payments | (9,754 | ) | (12,345 | ) | (20,122 | ) | (27,028 | ) | |||||||
Other | (72 | ) | (160 | ) | (495 | ) | (406 | ) | |||||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 23,548 | (15,356 | ) | 57,663 | 118,604 | ||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 26,281 | (3,799 | ) | (64,993 | ) | 62,443 | |||||||||
Cash and cash equivalents at beginning of period | 179,587 | 272,932 | 270,861 | 206,690 | |||||||||||
Cash and cash equivalents at end of period | $ | 205,868 | $ | 269,133 | $ | 205,868 | $ | 269,133 |
June 30, 2015 (Unaudited) | December 31, 2014 | |||||||
ASSETS | In thousands, except share data | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 205,868 | $ | 270,861 | ||||
Receivables | 112,159 | 116,921 | ||||||
Inventory | 109,207 | 114,931 | ||||||
Ore on leach pads | 67,458 | 48,204 | ||||||
Deferred tax assets | 7,262 | 7,364 | ||||||
Prepaid expenses and other | 17,442 | 15,523 | ||||||
519,396 | 573,804 | |||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 254,574 | 227,911 | ||||||
Mining properties, net | 864,884 | 501,192 | ||||||
Ore on leach pads | 32,663 | 37,889 | ||||||
Restricted assets | 8,377 | 7,037 | ||||||
Equity securities | 4,216 | 5,982 | ||||||
Receivables | 26,738 | 21,686 | ||||||
Deferred tax assets | 64,120 | 60,151 | ||||||
Other | 11,681 | 9,915 | ||||||
TOTAL ASSETS | $ | 1,786,649 | $ | 1,445,567 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 42,522 | $ | 49,052 | ||||
Accrued liabilities and other | 47,590 | 51,513 | ||||||
Debt | 9,121 | 17,498 | ||||||
Royalty obligations | 41,999 | 43,678 | ||||||
Reclamation | 3,786 | 3,871 | ||||||
Deferred tax liabilities | 8,078 | 8,078 | ||||||
153,096 | 173,690 | |||||||
NON-CURRENT LIABILITIES | ||||||||
Debt | 538,589 | 451,048 | ||||||
Royalty obligations | 12,675 | 27,651 | ||||||
Reclamation | 87,538 | 66,943 | ||||||
Deferred tax liabilities | 223,868 | 111,006 | ||||||
Other long-term liabilities | 43,233 | 29,911 | ||||||
905,903 | 686,559 | |||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, issued and outstanding 137,122,762 at June 30, 2015 and authorized 150,000,000 shares, issued and outstanding 103,384,408 at December 31, 2014 | 1,371 | 1,034 | ||||||
Additional paid-in capital | 2,982,019 | 2,789,695 | ||||||
Accumulated other comprehensive income (loss) | (3,172 | ) | (2,808 | ) | ||||
Accumulated deficit | (2,252,568 | ) | (2,202,603 | ) | ||||
727,650 | 585,318 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,786,649 | $ | 1,445,567 |
(Dollars in thousands except per share amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 | ||||||||||||||
Net income (loss) | $ | (16,677 | ) | $ | (33,287 | ) | $ | (1,079,038 | ) | $ | 3,466 | $ | (43,121 | ) | |||||
Interest expense, net of capitalized interest | 10,734 | 10,765 | 10,566 | 11,615 | 12,311 | ||||||||||||||
Interest income and other, net | 2,821 | 997 | (3,688 | ) | 213 | 4,083 | |||||||||||||
Income tax provision (benefit) | (260 | ) | 68 | (440,594 | ) | (16,582 | ) | 2,621 | |||||||||||
Amortization | 38,974 | 33,090 | 38,570 | 41,985 | 41,422 | ||||||||||||||
EBITDA | 35,592 | 11,633 | (1,474,184 | ) | 40,697 | 17,316 | |||||||||||||
Fair value adjustments, net | (2,754 | ) | 4,884 | (7,229 | ) | (16,106 | ) | 8,281 | |||||||||||
Impairment of equity securities | 31 | 1,514 | 1,979 | 1,092 | 934 | ||||||||||||||
Inventory adjustments | 1,805 | 3,684 | 14,482 | 4,993 | 6,353 | ||||||||||||||
Transaction-related costs | 38 | 1,975 | — | — | — | ||||||||||||||
Write-downs | — | — | 1,472,721 | — | — | ||||||||||||||
Adjusted EBITDA | $ | 34,712 | $ | 23,690 | $ | 7,769 | $ | 30,676 | $ | 32,884 |
(Dollars in thousands except per share amounts) | 2Q 2015 | 1Q 2015 | 4Q 2014 | 3Q 2014 | 2Q 2014 | ||||||||||||||
Net income (loss) | $ | (16,677 | ) | $ | (33,287 | ) | $ | (1,079,038 | ) | $ | 3,466 | $ | (43,121 | ) | |||||
Fair value adjustments, net | (2,618 | ) | 4,339 | (5,622 | ) | (13,026 | ) | 6,498 | |||||||||||
Stock-based compensation | 2,529 | 2,410 | 1,807 | 2,417 | 2,299 | ||||||||||||||
Impairment of equity securities | 31 | 1,514 | 1,979 | 1,092 | 934 | ||||||||||||||
Accretion of royalty obligation | 1,147 | 1,315 | 1,992 | 1,374 | 1,789 | ||||||||||||||
Write-downs | — | — | 1,021,756 | — | — | ||||||||||||||
(Gain) loss on debt extinguishments | 524 | (253 | ) | (426 | ) | — | — | ||||||||||||
Inventory adjustments | 1,805 | 3,684 | 14,482 | 4,993 | 6,353 | ||||||||||||||
Transaction-related costs | 38 | 1,975 | — | — | — | ||||||||||||||
Deferred tax asset valuation allowance | 76 | (3,464 | ) | — | — | — | |||||||||||||
Foreign exchange (gain) loss on deferred taxes | (1,305 | ) | (929 | ) | 5,615 | (18,801 | ) | 3,711 | |||||||||||
Adjusted net income (loss) | $ | (14,450 | ) | $ | (22,696 | ) | $ | (37,455 | ) | $ | (18,485 | ) | $ | (21,537 | ) | ||||
Adjusted net income (loss) per share | $ | (0.11 | ) | $ | (0.22 | ) | $ | (0.37 | ) | $ | (0.18 | ) | $ | (0.21 | ) |
Silver | Gold | |||||||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | San Bartolomé | Rochester | Endeavor | Total Silver | Kensington | Wharf | Total Gold | Total Combined | |||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 39,158 | $ | 24,428 | $ | 37,076 | $ | 3,204 | $ | 103,866 | $ | 40,136 | $ | 20,123 | $ | 60,259 | $ | 164,125 | ||||||||||||||||||
Amortization | 9,046 | 5,271 | 12,684 | 1,852 | 28,853 | 12,684 | 3,491 | 16,175 | 45,028 | |||||||||||||||||||||||||||
Costs applicable to sales | $ | 30,112 | $ | 19,157 | $ | 24,392 | $ | 1,352 | $ | 75,013 | $ | 27,452 | $ | 16,632 | $ | 44,084 | $ | 119,097 | ||||||||||||||||||
Silver equivalent ounces sold | 2,169,960 | 1,439,388 | 2,024,856 | 209,130 | 5,843,334 | 9,067,614 | ||||||||||||||||||||||||||||||
Gold equivalent ounces sold | 36,607 | 17,131 | 53,738 | |||||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 13.88 | $ | 13.31 | $ | 12.05 | $ | 6.46 | $ | 12.84 | $ | 750 | $ | 971 | $ | 820 | $ | 13.13 | ||||||||||||||||||
Inventory adjustments | (0.67 | ) | (0.05 | ) | (0.04 | ) | — | (0.28 | ) | (5 | ) | (1 | ) | (4 | ) | (0.20 | ) | |||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 13.21 | $ | 13.26 | $ | 12.01 | $ | 6.46 | $ | 12.56 | $ | 745 | $ | 970 | $ | 816 | $ | 12.93 | ||||||||||||||||||
Costs applicable to sales | $ | 119,097 | ||||||||||||||||||||||||||||||||||
Treatment and refining costs | 1,526 | |||||||||||||||||||||||||||||||||||
Sustaining capital | 13,625 | |||||||||||||||||||||||||||||||||||
General and administrative | 8,451 | |||||||||||||||||||||||||||||||||||
Exploration | 3,579 | |||||||||||||||||||||||||||||||||||
Reclamation | 4,036 | |||||||||||||||||||||||||||||||||||
Project/pre-development costs | 2,030 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 152,344 | ||||||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,843,334 | |||||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,224,280 | |||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 9,067,614 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 16.80 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.20 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 16.60 |
Silver | Gold | |||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | San Bartolomé | Rochester | Endeavor | Total | Kensington | Total | |||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 41,824 | $ | 23,818 | $ | 38,235 | $ | 1,892 | $ | 105,769 | $ | 40,973 | $ | 146,742 | ||||||||||||||
Amortization | 7,333 | 4,691 | 6,843 | 1,259 | 20,126 | 11,554 | 31,680 | |||||||||||||||||||||
Costs applicable to sales | $ | 34,491 | $ | 19,127 | $ | 31,392 | $ | 633 | $ | 85,643 | $ | 29,419 | $ | 115,062 | ||||||||||||||
Silver equivalent ounces sold | 2,157,612 | 1,289,867 | 2,416,103 | 117,863 | 5,981,445 | 8,193,825 | ||||||||||||||||||||||
Gold ounces sold | 36,873 | |||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 15.99 | $ | 14.83 | $ | 12.99 | $ | 5.37 | $ | 14.32 | $ | 798 | $ | 14.04 | ||||||||||||||
Inventory adjustments | (1.43 | ) | (0.36 | ) | (0.04 | ) | — | (0.61 | ) | (1 | ) | (0.45 | ) | |||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 14.56 | $ | 14.47 | $ | 12.95 | $ | 5.37 | $ | 13.71 | $ | 797 | $ | 13.59 | ||||||||||||||
Costs applicable to sales | $ | 115,062 | ||||||||||||||||||||||||||
Treatment and refining costs | 1,490 | |||||||||||||||||||||||||||
Sustaining capital | 10,909 | |||||||||||||||||||||||||||
General and administrative | 8,834 | |||||||||||||||||||||||||||
Exploration | 4,266 | |||||||||||||||||||||||||||
Reclamation | 2,924 | |||||||||||||||||||||||||||
Project/pre-development costs | 4,873 | |||||||||||||||||||||||||||
All-in sustaining costs | $ | 148,358 | ||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,981,445 | |||||||||||||||||||||||||||
Kensington silver equivalent ounces sold | 2,212,380 | |||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,193,825 | |||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 18.11 | ||||||||||||||||||||||||||
Inventory adjustments | $ | (0.45 | ) | |||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 17.66 |
Silver | Gold | |||||||||||||||||||||||||||
(Dollars in thousands except per ounce amounts) | Palmarejo | San Bartolomé | Rochester | Endeavor | Total | Kensington | Total | |||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 64,397 | $ | 34,610 | $ | 34,611 | $ | 2,678 | $ | 136,296 | $ | 27,383 | $ | 163,679 | ||||||||||||||
Amortization | 16,235 | 4,993 | 5,955 | 1,586 | 28,769 | 8,458 | 37,227 | |||||||||||||||||||||
Costs applicable to sales | $ | 48,162 | $ | 29,617 | $ | 28,656 | $ | 1,092 | $ | 107,527 | $ | 18,925 | $ | 126,452 | ||||||||||||||
Silver equivalent ounces sold | 2,350,080 | 1,985,952 | 2,001,976 | 191,983 | 6,529,991 | 7,873,931 | ||||||||||||||||||||||
Gold ounces sold | 22,399 | |||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 20.49 | $ | 14.91 | $ | 14.31 | $ | 5.69 | $ | 16.47 | $ | 845 | $ | 16.06 | ||||||||||||||
Inventory adjustments | (4.79 | ) | (0.53 | ) | (0.49 | ) | — | (2.04 | ) | (53 | ) | (1.84 | ) | |||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 15.70 | $ | 14.38 | $ | 13.82 | $ | 5.69 | $ | 14.43 | $ | 792 | $ | 14.22 | ||||||||||||||
Costs applicable to sales | $ | 126,452 | ||||||||||||||||||||||||||
Treatment and refining costs | 994 | |||||||||||||||||||||||||||
Sustaining capital | 18,492 | |||||||||||||||||||||||||||
General and administrative | 9,036 | |||||||||||||||||||||||||||
Exploration | 5,783 | |||||||||||||||||||||||||||
Reclamation | 1,549 | |||||||||||||||||||||||||||
Project/pre-development costs | 3,721 | |||||||||||||||||||||||||||
All-in sustaining costs | $ | 166,027 | ||||||||||||||||||||||||||
Silver equivalent ounces sold | 6,529,991 | |||||||||||||||||||||||||||
Kensington silver equivalent ounces sold | 1,343,940 | |||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 7,873,931 | |||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 21.09 | ||||||||||||||||||||||||||
Inventory adjustments | $ | (1.84 | ) | |||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 19.25 |
Silver | Gold | |||||||||||||||||||||||||||
(Dollars in thousands except per ounce amounts) | Palmarejo | San Bartolomé | Rochester | Endeavor | Total | Kensington | Total | |||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 62,481 | $ | 25,564 | $ | 29,077 | $ | 1,998 | $ | 119,120 | $ | 47,555 | $ | 166,675 | ||||||||||||||
Amortization | 16,493 | 5,117 | 5,359 | 909 | 27,878 | 12,887 | 40,765 | |||||||||||||||||||||
Costs applicable to sales | $ | 45,988 | $ | 20,447 | $ | 23,718 | $ | 1,089 | $ | 91,242 | $ | 34,668 | $ | 125,910 | ||||||||||||||
Silver equivalent ounces sold | 3,021,448 | 1,438,409 | 1,602,676 | 141,291 | 6,203,824 | 8,424,364 | ||||||||||||||||||||||
Gold ounces sold | 37,009 | |||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 15.22 | $ | 14.22 | $ | 14.80 | $ | 7.71 | $ | 14.71 | $ | 937 | $ | 14.95 | ||||||||||||||
Inventory adjustments | (0.79 | ) | (0.55 | ) | (0.02 | ) | — | (0.52 | ) | (48 | ) | (0.59 | ) | |||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 14.43 | $ | 13.67 | $ | 14.78 | $ | 7.71 | $ | 14.19 | $ | 889 | $ | 14.36 | ||||||||||||||
Costs applicable to sales | $ | 125,910 | ||||||||||||||||||||||||||
Treatment and refining costs | 1,425 | |||||||||||||||||||||||||||
Sustaining capital | 12,239 | |||||||||||||||||||||||||||
General and administrative | 8,515 | |||||||||||||||||||||||||||
Exploration | 6,587 | |||||||||||||||||||||||||||
Reclamation | 2,041 | |||||||||||||||||||||||||||
Project/pre-development costs | 2,154 | |||||||||||||||||||||||||||
All-in sustaining costs | $ | 158,871 | ||||||||||||||||||||||||||
Silver equivalent ounces sold | 6,203,824 | |||||||||||||||||||||||||||
Kensington silver equivalent ounces sold | 2,220,540 | |||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,424,364 | |||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 18.86 | ||||||||||||||||||||||||||
Inventory adjustments | $ | (0.59 | ) | |||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 18.27 |
Silver | Gold | |||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | San Bartolomé | Rochester | Endeavor | Total | Kensington | Total | |||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 67,595 | $ | 25,550 | $ | 29,406 | $ | 1,701 | $ | 124,252 | $ | 34,784 | $ | 159,036 | ||||||||||||||
Amortization | 18,044 | 4,855 | 5,025 | 859 | 28,783 | 11,566 | 40,349 | |||||||||||||||||||||
Costs applicable to sales | $ | 49,551 | $ | 20,695 | $ | 24,381 | $ | 842 | $ | 95,469 | $ | 23,218 | $ | 118,687 | ||||||||||||||
Silver equivalent ounces sold | 3,528,240 | 1,494,100 | 1,544,461 | 106,126 | 6,672,927 | 8,054,607 | ||||||||||||||||||||||
Gold ounces sold | 23,028 | |||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 14.04 | $ | 13.85 | $ | 15.79 | $ | 7.94 | $ | 14.31 | $ | 1,008 | $ | 14.74 | ||||||||||||||
Inventory adjustments | (0.56 | ) | — | (0.06 | ) | — | (0.31 | ) | (187 | ) | (0.79 | ) | ||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 13.48 | $ | 13.85 | $ | 15.73 | $ | 7.94 | $ | 14.00 | $ | 821 | $ | 13.95 | ||||||||||||||
Costs applicable to sales | $ | 118,687 | ||||||||||||||||||||||||||
Treatment and refining costs | 963 | |||||||||||||||||||||||||||
Sustaining capital | 17,617 | |||||||||||||||||||||||||||
General and administrative | 9,398 | |||||||||||||||||||||||||||
Exploration | 5,153 | |||||||||||||||||||||||||||
Reclamation | 1,964 | |||||||||||||||||||||||||||
Project/pre-development costs | 6,388 | |||||||||||||||||||||||||||
All-in sustaining costs | $ | 160,170 | ||||||||||||||||||||||||||
Silver equivalent ounces sold | 6,672,927 | |||||||||||||||||||||||||||
Kensington silver equivalent ounces sold | 1,381,680 | |||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,054,607 | |||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 19.89 | ||||||||||||||||||||||||||
Inventory adjustments | $ | (0.79 | ) | |||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 19.10 |