Coeur D Alene Mines Nov 2009 Presentation

8/14/2019 Coeur D Alene Mines Nov 2009 Presentation

1/21

VeryIndependentResearch,LLC

KnightCapital

Group

MetalsConferenceNovember18th &19th,2009

NEWKENSINGTON GOLDMINE


2/21
http://www.sec.gov/edgar.shtmlhttp://www.sedar.com/


3/21

3

Incorporated

in

1928

(CDE:NYSE,

CDM:TSX,

CXC:ASX) Rapidlygrowingsilverandgoldproducer

18millionouncesofsilverproductionexpectedin2009

up

50%

from

previous

year DiversifiedpreciousmetalsassetbasewithKensington

Goldmineopeningin2010

3new

large,

long

life

mines

+cost

reductions

=rapidly

risingcashflow

Solidifiedliquidityposition

Industryleading

reserve

and

resource

base

CompanySnapshot


4/21

4

Cerro

Bayo

Mine,

Chile2.5mozsilver*

Martha Mine,Argentina

3moz

silver,

10k

oz

gold

KensingtonGoldMine

Alaska

120koz

gold*

EndeavorMine,Australia

.5mozsilver

SanBartolom Silver

Mine,Bolivia

89mozsilver

RochesterMine,Nevada

12mozsilver

PalmarejoSilverGold

Mine

Mexico9mozsilver

110kozgold

DiversePrecious

Metals

Asset

Base

Volumesrepresentannualestimatedproduction

*KensingtonandCerroBayoarenotcurrentlyinproductionbutareforecasttoproducein2010

Largernewmines


5/21

5

86%increaseinsilverproductionover3Q2008toall

timequarterly

record

of

5.2

million

ounces

3Qgoldproductionup222%comparedtolastyeartonearly29,000ounces

146%increase

in

revenue

to

all

time

quarterly

record

of

$89.8millioncomparedto3Q2008

Quarterlyoperatingcashflowof$23.0millionversus

$1.2

million

during

last

years

3Q NewmineralreservesatGuadalupeboostPalmarejo

silverandgoldouncesnearly40%relativetobeginningoftheyear

NewMines

Driving

Unparalleled

Growth


6/21

6

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

3Q'08 3Q '09

Palmarejo

San

Bartolome

Endeavor

Martha

CerroBayo

Rochester

SilverOuncesofProduction

86%Production

Growth

vs 3Q

08


7/21

7

Thirdconsecutivequarterofconsistentproductionand

operatingcosts

YTDsilverproductionof6.1

millionounceswithaverage

cashoperatingcostsof

$7.54/oz

SanBartolom,Bolivia

OurThree

Newest

Mines


8/21

8

OurThree

Newest

Mines

Palmarejo,Mexico

Productioncontinues

to

increase;

costscontinuetodecline

Favorableupwardtrendinrecoveries

Nowapproachingfullscaleproductionrates

Wellpositionedtoachieveits

fullyear

2010

production

targets:

9millionouncesofsilverproduction

110,000ouncesofgoldproduction

Cashoperatingcosts1 of

approximately$1.50/oz

(1) NonGAAPmeasure:Definedasoperatingcostslessbyproductcredits(ifany)

dividedbysilverproduction;excludesroyaltiesandtaxes


9/21

9

OurThree

Newest

Mines

Finalconstructionactivitiesbeganduring3Q

Ontrack

for

a2H

2010

startup;

40,000ouncesofexpected2010goldproduction;120,000ouncesofproductionexpectedin

2011

$45milliontermloannowinplacetoensuresufficientfinancial

flexibility

Kensington,Alaska


10/21

10

RochesterMine, Nevada

Rebirthof

Rochester

Mine

Large,highqualitymineralresource

Newleach

pad

to

be

constructed

Incrementalannualproductionexpect

toaddsixaddl years:

Averageof2.9millionsilverouncesannually

Averageof30,000goldouncesannually

Totalexpected

production

16.5

million

silverouncesand204,000goldounces

Residualleachingcontinuesandis

expectedto

continue

through

2014


11/21

11

$50

$40 $42$50

$73

$90

$115

$0

$20

$40

$60

$80

$100

$120

$140

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09Est

ImpressiveTop

Line

Growth


12/21

12

$2.5

$1.2 $1.5 $1.6

$17

$23

$40

5

0

5

10

15

20

25

30

3540

45

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09Est

Inmillions

ofUS$

RapidlyGrowing

Cash

Flow


13/21

13

$104

$88

$108.6

$78

$43

$55$48

$0

$20

$40

$60

$80

$100

$120

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09Est

Inmillions

ofUS$

CapitalSpending

Trends


14/21

14

$29 $46

$180 $65

$431 $170

$50 $0

$230 $150

Cash&Equivalents

1.25%Converts

3.25%Converts

FloatingRate

Notes

+59%

64%

61%

100%

35%

Asof12/31/08 Asof9/30/09 %Change

NetDebt

Inmillions

BalanceSheet

Update


15/21

15

ContinuedStrong

Price

Environment

Up74%YTDtohighof$18.76inNov.

18%increase

during

3Q

Continuedstronginvestordemand

GrowingsilverETFvehicles

Increasingindustrialdemandwith

globaleconomic

recovery

Up32%YTD,breaching$1,150mark

6.6%

increase

during

3Q RecentpricesupportthroughIMFsaleof

200mouncestoReserveBankofIndia

Chinaassertingitselfinglobalgoldmarket

Expandingbudgetdeficits,dollarweakness,

inflation

outlook


16/21

16

Continueprimarysilverproductionprofileandasignificant

gold

component

Leverage

substantial

investments

now

in

place to

generatesuperiorrates ofreturnforshareholders

Focusedbutsignificantexplorationaround/nearexistingoperations,suchasPalmarejo andKensington

Pursueminingopportunitiesinareaswithanexistingpresence,likeRochester

Maintain aconservative,flexiblebalancesheet

Commitmentto

Company

Strategy


17/21

17

FirstfullyearofoperationsatPalmarejo willleadtosubstantial

cashflow

growth

Continuedexplorationactivity

Construction/startupatKensington

Renewedexploration

program

already

underway

Rochesterrestart

Substantiallyreducedcapitalexpenditureprogram

Abilityto

fund

growth

without

dilution

Improvedcoststructure/continuednosilverhedgingpolicy

willleadtoexcellentleveragetostrongpreciousmetals price

SignificantUpside

for

Coeur

in

2010


18/21

Pleasedirectinquiries,requestsforassistanceandcopiesoftheCompanysAnnual

Reportto:

KarliAnderson

Director,InvestorRelationsNorthAmerica

(208)771

2728

[email protected]

ForcurrentpressreleasesandCompanynews,visittheCoeurwebsiteat

www.coeur.com.

Inquiries

18


19/21

Appendix

19


20/21

20

NewMineral

Reserves

at

Guadalupe,

Palmarejo District

Mineral Reserve

Classification Tonnes

AverageGrade (g/t) Contained Ounces

Au Ag Au Ag

Proven 657,000 1.91 183.3 40,400 3,872,300

Probable 4,314,200 1.98 158.3 274,800 21,961,400

Proven+Probable 4,971,200 1.97 161.6 315,200 25,833,700

Guadalupe effective November 4, 2009 at $800/Au ounce and $14/Ag ounce.

AuEq (equivalent)=Aug/t+(Agg/t/57).

AuEq Cutoffforreserves=(miningcostpertonne +processingcostpertonne +transportationcostpertonne +G&Acostpertonne)/(((gold

price

per

ounce

refining

cost

per

ounce)/31.103)*%

recovery

Au*

%

payable

Au).Miningstopes weredilutedwithinternaldilution(materiallessthan2.5g/tAuEq)andexternaldilutionofaminimumof0.2metersinthe

hangingwallandfootwall.

Designedminingstopes hadaminimumdilutedthicknessof3meters.


21/21

21

MineralResources

at

Rochester,

Nevada

Mineral Resource

Classification ShortTons

AverageGrade (oz/t) Contained Ounces

Au Ag Au Ag

Measured 83,179,000 0.005 183.3 408,100 43,640,000

Indicated 30,879,000 0.004 158.3 122,900 18,120,000

Measured+

Indicated 114,058,000 0.005 161.6 531,000 61,810,000

Rochester effective January 1, 2009 at $1,000/Au ounce and $16/Ag ounce.

Total mineral resources

Ag

Eq (equivalent)

=

Silver

(Ag

opt)

+

[Gold

(Au

opt)*Gold

Multiplier1

]1 GoldMultiplier=[(goldprice/ozrefiningcost/oz)*%goldrecovery]/[(Silverprice/ozrefiningcost/oz)*%silverrecovery]

CrushedorecutoffAgEq =0.49opt

RunofMineorecutoffAgEq =0.56opt

Coeur D Alene Mines Nov 2009 Presentation

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