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| 8-K - 8-K - Coeur Mining, Inc. | a1q17earningsrelease8-k.htm |
NEWS RELEASE 
Coeur Reports First Quarter 2017 Results
Chicago, Illinois - April 26, 2017 - Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) today reported first quarter 2017 financial results, achieving $206.1 million of revenue, which represented increases of 29% quarter-over-quarter and 39% year-over-year. Net income during the first quarter was $18.7 million, or $0.10 per share, and adjusted net income1 was $7.0 million, or $0.04 per share.
Quarterly cash flow from operating activities was $55.3 million, increases of $29.8 million quarter-over-quarter and $48.7 million year-over-year. First quarter adjusted EBITDA1 totaled $56.6 million, representing a 29% increase quarter-over-quarter and a 51% increase year-over-year. Last twelve month (LTM) adjusted EBITDA1 was $235.4 million, representing increases of 9% quarter-over-quarter and 71% year-over-year. Free cash flow1 increased $35.8 million quarter-over-quarter and $56.0 million year-over-year to $31.3 million.
Balance sheet improvements since the beginning of 2016 resulted in a $7.5 million, or 68%, year-over-year decline in quarterly interest expense. Combined with higher LTM adjusted EBITDA1, the Company's significant debt reductions resulted in total and net debt-to-LTM adjusted EBITDA1 ratios of 0.9x and 0.04x, respectively, compared to 3.7x and 2.5x a year earlier.
First Quarter Highlights
• | Silver and gold production were 3.9 million ounces and 88,218 ounces, respectively, or 9.2 million silver equivalent ounces (AgEqOz)1, representing a decline of 8% quarter-over-quarter and an increase of 14% year-over-year |
• | Sales of 4.5 million ounces of silver and 110,874 ounces of gold, or 11.1 million AgEqOz1, increased 29% quarter-over-quarter and 34% year-over-year |
• | Companywide all-in sustaining costs (AISC) and adjusted AISC per average spot AgEqOz1 were $13.65 and $13.66, respectively, both declining 6% quarter-over-quarter. On a 60:1 price equivalence basis, companywide AISC and adjusted AISC per AgEqOz1 were $15.01 and $15.02, both representing quarter-over-quarter decreases of 7% |
• | Primary silver operations delivered costs applicable to sales (CAS) and adjusted CAS per average spot AgEqOz1 of $10.64 and $10.63, respectively, representing quarter-over-quarter decreases of 7% and 6% |
• | For primary gold operations, CAS and adjusted CAS per gold equivalent ounce (AuEqOz)1 were $788 and $791, respectively, representing 17% increases compared to the prior quarter |
• | Cash and equivalents totaled $210.0 million at March 31, 2017, an increase of nearly $50 million compared to year-end |
• | The Company completed the sale of the Joaquin project for consideration of $27.4 million, realizing a gain of $21.1 million; Coeur also retained a 2.0% NSR royalty on the Joaquin project |
• | Quarterly expensed exploration tripled year-over-year to $5.3 million primarily due to expanded drilling activities at Palmarejo and Kensington and the near-completion of a 25,000 meter drill program at La Preciosa to support a revised Preliminary Economic Assessment (PEA) expected later this year |
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"Coeur delivered a solid first quarter with strong earnings and cash flows, affirming the steps we have taken to reposition our portfolio and balance sheet," said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. "Rising production levels at our Palmarejo mine and higher metal sales more than offset the impact of record rainfall at our Rochester mine in Nevada and persistent drought conditions at our San Bartolomé mine in Bolivia. Companywide costs also continued to trend lower with first quarter metrics coming in well below full-year guidance. Combined with considerable interest savings from recent balance sheet improvements, we reported significantly higher earnings and cash flows compared to the same period last year.
"Near-mine and early-stage exploration programs have been accelerated as planned with 17 drill rigs active at the end of the quarter compared to three a year earlier. In addition to the encouraging drill results we have seen at Palmarejo, we are nearing completion of a 25,000 meter drill program at La Preciosa to support a revised PEA expected later this year targeting a potential smaller, higher-grade, lower capital silver-gold operation.
"Concurrent with our increased exploration activities, our expansion initiatives at Palmarejo, Rochester and Kensington remain on schedule and on budget. At Palmarejo, we are on track to achieve 50% production increases this year from higher-grade underground operations. At Rochester, we are completing the last element of a multi-year expansion effort to position the mine for strong and sustainable cash flow. At Kensington, we expect higher-grade ore from the Jualin deposit to boost production and further reduce unit costs starting late this year. This strong execution continues to support our trajectory toward a higher-margin, higher cash flowing precious metals mining company."
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Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 | ||||||||||
Revenue | $ | 206.1 | $ | 159.2 | $ | 176.2 | $ | 182.0 | $ | 148.4 | |||||
Costs Applicable to Sales | $ | 132.7 | $ | 102.0 | $ | 105.4 | $ | 100.5 | $ | 101.6 | |||||
General and Administrative Expenses | $ | 10.1 | $ | 6.6 | $ | 7.1 | $ | 7.4 | $ | 8.3 | |||||
Net Income (Loss) | $ | 18.7 | $ | (8.3 | ) | $ | 69.6 | $ | 14.5 | $ | (20.4 | ) | |||
Net Income (Loss) Per Share | $ | 0.10 | $ | (0.03 | ) | $ | 0.42 | $ | 0.09 | $ | (0.14 | ) | |||
Adjusted Net Income (Loss)1 | $ | 7.0 | $ | 2.8 | $ | 38.6 | $ | 16.9 | $ | (10.5 | ) | ||||
Adjusted Net Income (Loss)1 Per Share | $ | 0.04 | $ | 0.01 | $ | 0.23 | $ | 0.11 | $ | (0.06 | ) | ||||
Weighted Average Shares Outstanding | 178.9 | 178.6 | 161.0 | 157.9 | 150.2 | ||||||||||
EBITDA1 | $ | 73.4 | $ | 27.4 | $ | 50.9 | $ | 62.1 | $ | 20.8 | |||||
Adjusted EBITDA1 | $ | 56.6 | $ | 44.0 | $ | 62.7 | $ | 72.0 | $ | 37.4 | |||||
Cash Flow from Operating Activities | $ | 55.3 | $ | 25.5 | $ | 47.8 | $ | 45.9 | $ | 6.6 | |||||
Capital Expenditures | $ | 24.0 | $ | 29.9 | $ | 25.6 | $ | 23.3 | $ | 22.2 | |||||
Free Cash Flow1 | $ | 31.3 | $ | (4.5 | ) | $ | 14.6 | $ | 12.2 | $ | (24.7 | ) | |||
Cash, Equivalents & Short-Term Investments | $ | 210.0 | $ | 162.2 | $ | 222.5 | $ | 257.6 | $ | 173.4 | |||||
Total Debt2 | $ | 219.1 | $ | 210.9 | $ | 401.7 | $ | 511.1 | $ | 511.1 | |||||
Average Realized Price Per Ounce – Silver | $ | 17.61 | $ | 16.64 | $ | 19.61 | $ | 17.38 | $ | 15.16 | |||||
Average Realized Price Per Ounce – Gold | $ | 1,149 | $ | 1,170 | $ | 1,317 | $ | 1,255 | $ | 1,178 | |||||
Silver Ounces Produced | 3.9 | 3.9 | 3.5 | 4.0 | 3.4 | ||||||||||
Gold Ounces Produced | 88,218 | 102,500 | 84,871 | 92,727 | 78,072 | ||||||||||
Silver Equivalent Ounces Produced1 | 9.2 | 10.0 | 8.6 | 9.6 | 8.1 | ||||||||||
Silver Ounces Sold | 4.5 | 3.4 | 3.4 | 4.0 | 3.5 | ||||||||||
Gold Ounces Sold | 110,874 | 87,108 | 83,389 | 88,543 | 79,091 | ||||||||||
Silver Equivalent Ounces Sold1 | 11.1 | 8.6 | 8.4 | 9.3 | 8.3 | ||||||||||
Silver Equivalent Ounces Sold (Average Spot)1 | 12.2 | 9.6 | 9.1 | 10.6 | 9.8 | ||||||||||
Adjusted CAS per AgEqOz1 | $ | 11.38 | $ | 12.05 | $ | 12.10 | $ | 10.71 | $ | 12.05 | |||||
Adjusted CAS per Average Spot AgEqOz1 | $ | 10.63 | $ | 11.34 | $ | 11.64 | $ | 9.90 | $ | 11.00 | |||||
Adjusted CAS per AuEqOz1 | $ | 791 | $ | 676 | $ | 712 | $ | 644 | $ | 721 | |||||
Adjusted AISC per AgEqOz1 | $ | 15.02 | $ | 16.13 | $ | 16.46 | $ | 14.82 | $ | 16.05 | |||||
Adjusted AISC per Average Spot AgEqOz1 | $ | 13.66 | $ | 14.52 | $ | 15.23 | $ | 12.95 | $ | 13.51 | |||||
Financial Results
First quarter revenue increased 29% to $206.1 million primarily due to a reduction in metal inventory. Silver sales contributed 38% while gold sales contributed 62%. Average realized silver and gold prices were $17.61 and $1,149 per ounce, respectively, representing an increase of 6% and decrease of 2% quarter-over-quarter. The average realized gold price reflects the sale of 19,300 ounces to Franco-Nevada at a price of $800 per ounce.
Costs applicable to sales were $132.7 million for the quarter, increasing 30% as a result of higher silver and gold ounces sold. General and administrative expenses were $10.1 million, $3.5 million higher than the preceding quarter, largely attributable to higher outside service fees and increased employee-related costs, including one-time severance costs.
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Net income, EBITDA1 and free cash flow1 were positively impacted quarter-over-quarter by a reduction in metal inventory, lower companywide unit costs, and the sale of the Joaquin project in Argentina for total consideration of $27.4 million.
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Operations
Highlights of first quarter 2017 results for each of the Company's operating segments are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 |
Underground Operations: | |||||
Tons mined | 355,793 | 293,706 | 253,681 | 283,971 | 215,642 |
Average silver grade (oz/t) | 4.84 | 5.00 | 3.96 | 5.40 | 4.21 |
Average gold grade (oz/t) | 0.09 | 0.09 | 0.08 | 0.08 | 0.07 |
Surface Operations: | |||||
Tons mined | — | — | — | 1,695 | 35,211 |
Average silver grade (oz/t) | — | — | — | 7.77 | 4.18 |
Average gold grade (oz/t) | — | — | — | 0.07 | 0.04 |
Processing: | |||||
Total tons milled | 360,383 | 287,569 | 274,644 | 270,142 | 246,533 |
Average recovery rate – Ag | 86.5% | 89.1% | 85.5% | 89.5% | 89.1% |
Average recovery rate – Au | 93.7% | 90.4% | 77.7% | 86.4% | 92.1% |
Silver ounces produced (000's) | 1,531 | 1,269 | 933 | 1,307 | 933 |
Gold ounces produced | 30,792 | 23,906 | 16,608 | 18,731 | 14,668 |
Silver equivalent ounces produced1 (000's) | 3,378 | 2,703 | 1,930 | 2,431 | 1,813 |
Silver ounces sold (000's) | 1,965 | 937 | 778 | 1,350 | 928 |
Gold ounces sold | 41,045 | 15,558 | 11,410 | 19,214 | 12,899 |
Silver equivalent ounces sold1 (000's) | 4,427 | 1,872 | 1,462 | 2,502 | 1,702 |
Silver equivalent ounces sold1 (average spot) (000's) | 4,837 | 2,042 | 1,555 | 2,792 | 1,955 |
Metal sales | $77.7 | $32.5 | $30.7 | $48.3 | $29.8 |
Costs applicable to sales | $43.0 | $20.9 | $16.0 | $22.9 | $21.0 |
Adjusted CAS per AgEqOz1 | $9.68 | $11.01 | $10.70 | $9.02 | $11.54 |
Adjusted CAS per average spot AgEqOz1 | $8.87 | $10.11 | $10.05 | $8.09 | $10.03 |
Exploration expense | $1.6 | $2.4 | $1.3 | $0.6 | $0.8 |
Cash flow from operating activities | $50.5 | $(1.7) | $13.7 | $11.3 | $3.4 |
Sustaining capital expenditures | $5.0 | $3.9 | $6.7 | $5.5 | $6.6 |
Development capital expenditures | $1.2 | $4.2 | $3.3 | $3.4 | $2.2 |
Total capital expenditures | $6.2 | $8.1 | $10.0 | $8.9 | $8.8 |
Free cash flow (before royalties) | $44.3 | $(9.8) | $3.7 | $2.4 | $(5.4) |
Gold production royalty payments | $— | $— | $7.6 | $10.5 | $9.1 |
Free cash flow1 | $44.3 | $(9.8) | $(3.9) | $(8.1) | $(14.5) |
• | Mining rates at Guadalupe and Independencia averaged 2,700 and 1,225 tons per day, respectively, during the quarter and remain on-track to reach a year-end combined target of 4,500 tons per day |
• | Higher mining rates drove a 25% quarter-over-quarter and 86% year-over-year increase in silver equivalent1 production to 3.4 million ounces |
• | In addition to higher production, metal sales were also positively impacted by a reduction in metal inventory, with silver sales more than doubling both quarter-over-quarter and year-over-year to 2.0 million and gold sales increasing to 41,045 ounces, up 164% quarter-over-quarter and 218% year-over-year |
• | Gold sales to Franco-Nevada were 19,300 ounces at a price of $800 per ounce. For the full year, the Company expects 40% - 45% of Palmarejo's gold sales to be to Franco-Nevada at $800 per ounce |
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• | First quarter adjusted CAS per average spot AgEqOz1 was $8.87, declining 12% quarter-over-quarter and 12% year-over-year and below full-year guidance of $9.00 - $9.50 per ounce as a result of lower unit costs |
• | Palmarejo achieved quarterly free cash flow1 of $44.3 million, its highest in nearly four years |
Rochester, Nevada
(Dollars in millions, except per ounce amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 |
Ore tons placed | 3,513,708 | 3,878,487 | 4,901,039 | 6,402,013 | 4,374,459 |
Average silver grade (oz/t) | 0.58 | 0.57 | 0.54 | 0.54 | 0.64 |
Average gold grade (oz/t) | 0.002 | 0.002 | 0.003 | 0.003 | 0.004 |
Silver ounces produced (000's) | 1,127 | 1,277 | 1,161 | 1,197 | 929 |
Gold ounces produced | 10,356 | 14,231 | 12,120 | 13,940 | 10,460 |
Silver equivalent ounces produced1 (000's) | 1,749 | 2,131 | 1,888 | 2,033 | 1,557 |
Silver ounces sold (000's) | 1,289 | 1,205 | 1,163 | 1,137 | 1,079 |
Gold ounces sold | 13,592 | 12,988 | 11,751 | 12,909 | 11,672 |
Silver equivalent ounces sold1 (000's) | 2,104 | 1,984 | 1,868 | 1,912 | 1,779 |
Silver equivalent ounces sold1 (average spot) (000's) | 2,240 | 2,128 | 1,963 | 2,106 | 2,009 |
Metal sales | $39.0 | $36.2 | $37.9 | $35.8 | $30.0 |
Costs applicable to sales | $26.4 | $23.7 | $21.8 | $21.7 | $22.5 |
Adjusted CAS per AgEqOz1 | $12.57 | $11.99 | $11.56 | $11.30 | $12.61 |
Adjusted CAS per average spot AgEqOz1 | $11.81 | $11.16 | $11.02 | $10.24 | $11.17 |
Exploration expense | $0.1 | $0.4 | $0.1 | $0.2 | $0.1 |
Cash flow from operating activities | $5.7 | $7.6 | $9.5 | $9.2 | $2.1 |
Sustaining capital expenditures | $0.2 | $1.5 | $1.2 | $2.6 | $2.5 |
Development capital expenditures | $10.4 | $4.3 | $2.2 | $1.3 | $0.8 |
Total capital expenditures | $10.6 | $5.8 | $3.4 | $3.9 | $3.3 |
Free cash flow1 | $(4.9) | $1.8 | $6.1 | $5.3 | $(1.2) |
• | Record precipitation in the first half of the quarter negatively impacted crushing and placement rates and diluted process solutions. While operations normalized in March, quarter-over-quarter silver equivalent1 production was 18% lower, although 12% higher year-over-year. Production is expected to improve in the second quarter and increase modestly following the anticipated completion of the Stage IV leach pad expansion in the third quarter |
• | Silver and gold sales increased 7% and 5%, respectively, quarter-over-quarter to 1.3 million ounces and 13,592 ounces due to a reduction in metal inventory |
• | Adjusted CAS per average spot AgEqOz1 increased 6% to $11.81 during the quarter and are expected to trend lower throughout the remainder of the year as production and sales increase |
• | Negative quarterly free cash flow1 was primarily driven by weather-related lower production and higher capital expenditures, principally related to the Stage IV leach pad expansion |
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Kensington, Alaska
(Dollars in millions, except per ounce amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 |
Tons milled | 165,895 | 163,410 | 140,322 | 157,117 | 159,360 |
Average gold grade (oz/t) | 0.17 | 0.22 | 0.20 | 0.22 | 0.21 |
Average recovery rate | 94.0% | 94.4% | 94.8% | 94.1% | 95.8% |
Gold ounces produced | 26,197 | 33,688 | 26,459 | 32,210 | 31,974 |
Gold ounces sold | 32,144 | 28,864 | 30,998 | 30,178 | 31,648 |
Metal sales | $38.0 | $34.2 | $40.2 | $36.5 | $35.7 |
Costs applicable to sales | $28.4 | $23.0 | $26.7 | $22.6 | $24.4 |
Adjusted CAS per AuOz1 | $884 | $801 | $859 | $740 | $761 |
Exploration expense | $0.8 | $1.3 | $1.2 | $1.0 | $— |
Cash flow from operating activities | $4.5 | $11.4 | $18.0 | $7.7 | $13.7 |
Sustaining capital expenditures | $2.5 | $8.9 | $5.2 | $4.3 | $4.4 |
Development capital expenditures | $3.0 | $3.7 | $3.4 | $3.2 | $3.7 |
Total capital expenditures | $5.5 | $12.6 | $8.6 | $7.5 | $8.1 |
Free cash flow1 | $(1.0) | $(1.2) | $9.4 | $0.2 | $5.6 |
• | As anticipated, first quarter production declined 22% quarter-over-quarter to 26,197 ounces as a result of lower grades. Higher grades and production are expected in the second half of the year |
• | Adjusted CAS per gold ounce (AuOz) increased 10% quarter-over-quarter to $884 due to lower grades; unit costs are expected to trend lower through the remainder of the year as grades improve |
• | Development of the Jualin decline remains on track for initial production later this year |
• | The Company is increasing its exploration program by $6 million largely to expand the size of Jualin and support sustained mining activities from this high-grade deposit. This increase in exploration expense will be equally offset by lower underground capital development |
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Wharf, South Dakota
(Dollars in millions, except per ounce amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 |
Ore tons placed | 1,292,181 | 1,178,803 | 1,199,008 | 915,631 | 974,663 |
Average silver grade (oz/t) | 0.22 | 0.29 | 0.24 | 0.28 | 0.30 |
Average gold grade (oz/t) | 0.027 | 0.027 | 0.033 | 0.037 | 0.031 |
Average plant recovery rate – Au | 97.4% | 98.9% | 94.4% | 88.5% | 95.9% |
Gold ounces produced | 20,873 | 30,675 | 29,684 | 27,846 | 20,970 |
Silver ounces produced (000's) | 20 | 32 | 25 | 35 | 13 |
Gold equivalent ounces produced1 | 21,207 | 31,202 | 30,106 | 28,433 | 21,186 |
Silver ounces sold (000's) | 33 | 30 | 17 | 33 | 15 |
Gold ounces sold | 24,093 | 29,698 | 29,230 | 26,242 | 22,872 |
Gold equivalent ounces sold1 | 24,636 | 30,204 | 29,508 | 26,786 | 23,122 |
Metal sales | $30.3 | $35.5 | $39.3 | $34.0 | $27.9 |
Costs applicable to sales | $16.3 | $16.9 | $19.7 | $14.3 | $15.5 |
Adjusted CAS per AuEqOz1 | $670 | $556 | $559 | $534 | $667 |
Exploration expense | $— | $— | $— | $— | $— |
Cash flow from operating activities | $8.6 | $15.4 | $21.1 | $16.2 | $9.7 |
Sustaining capital expenditures | $0.9 | $1.3 | $0.6 | $1.5 | $1.4 |
Development capital expenditures | $— | $— | $— | $— | $— |
Total capital expenditures | $0.9 | $1.3 | $0.6 | $1.5 | $1.4 |
Free cash flow1 | $7.7 | $14.1 | $20.5 | $14.7 | $8.3 |
• | Gold production during the first quarter declined 32% to 20,873 ounces as a result of leach pad offload timing; production is expected to increase in the second and third quarters as the remainder of the high-grade Golden Reward deposit is mined |
• | Sales of 24,093 ounces of gold represented a 19% quarter-over-quarter decline due to lower production, which was partially offset by a reduction of metal inventory |
• | As a result of lower production during the quarter, adjusted CAS per AuEqOz1 increased 21% to $670, well below full-year guidance of $775 - $825 |
• | During the quarter, Wharf generated $7.7 million of free cash flow1, bringing cumulative free cash flow1 since its acquisition in February 2015 for $99 million to $94.1 million |
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San Bartolomé, Bolivia
(Dollars in millions, except per ounce amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 |
Tons milled | 384,267 | 368,131 | 450,409 | 440,441 | 407,806 |
Average silver grade (oz/t) | 3.49 | 3.96 | 3.43 | 3.79 | 3.64 |
Average recovery rate | 90.7% | 86.3% | 88.7% | 87.4% | 93.1% |
Silver ounces produced (000's) | 1,215 | 1,259 | 1,370 | 1,458 | 1,382 |
Silver ounces sold (000's) | 1,148 | 1,218 | 1,391 | 1,418 | 1,384 |
Metal sales | $20.6 | $19.9 | $27.5 | $25.2 | $21.3 |
Costs applicable to sales | $18.2 | $17.3 | $20.8 | $18.6 | $17.5 |
Adjusted CAS per AgOz1 | $15.88 | $13.97 | $14.40 | $12.97 | $12.56 |
Exploration expense | $— | $— | $— | $— | $— |
Cash flow from operating activities | $11.3 | $4.1 | $8.6 | $11.2 | $5.5 |
Sustaining capital expenditures | $0.4 | $1.8 | $3.0 | $1.3 | $0.5 |
Development capital expenditures | $— | $— | $— | $— | $— |
Total capital expenditures | $0.4 | $1.8 | $3.0 | $1.3 | $0.5 |
Free cash flow1 | $10.9 | $2.3 | $5.6 | $9.9 | $5.0 |
• | Persistent nationwide drought conditions resulted in a 3% quarter-over-quarter decline in silver production to 1.2 million ounces; higher production is expected in the second quarter as a result of more precipitation and a greater contribution of higher-grade third party ore purchases |
• | Adjusted CAS per silver ounce (AgOz) increased 14% during the quarter due to lower production and sales; unit costs are expected to decrease during the second quarter as production and sales increase |
• | Free cash flow1 for the first quarter increased almost fourfold to $10.9 million due to the timing of cash flows related to sales |
Endeavor Silver Stream
(Dollars in millions, except per ounce amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 |
Tons milled | 45,340 | 52,711 | 42,335 | 37,521 | 86,863 |
Average silver grade (oz/t) | 1.71 | 2.09 | 2.28 | 1.66 | 3.17 |
Average recovery rate | 51.4% | 39.8% | 58.2% | 52.5% | 41.9% |
Silver ounces produced (000's) | 40 | 44 | 56 | 33 | 115 |
Silver ounces sold (000's) | 40 | 58 | 46 | 35 | 123 |
Metal sales | $0.7 | $0.9 | $0.8 | $0.5 | $1.9 |
Royalty revenue | $— | $(0.2) | $(0.1) | $1.8 | $1.8 |
Costs applicable to sales (Endeavor silver stream) | $0.3 | $— | $0.4 | $0.3 | $1.0 |
CAS per AgOz1 | $7.22 | $7.06 | $8.10 | $7.94 | $5.35 |
Cash flow from operating activities | $0.2 | $2.2 | $0.4 | $(3.2) | $0.8 |
Free cash flow1 | $0.2 | $2.2 | $0.4 | $(3.2) | $0.8 |
• | Silver production from the Company's silver stream on the Endeavor mine in Australia was 39,941 ounces for the quarter, declining 9% quarter-over-quarter |
• | In response to higher zinc and lead prices, the operator of the mine has begun to ramp up with higher production and free cash flow1 expected throughout the remainder of the year |
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Exploration
First quarter expensed exploration was $5.3 million, unchanged from the previous quarter and up from $1.7 million from the same period in 2016, while capitalized exploration totaled $2.3 million. At quarter-end, the Company had 17 drill rigs active across its portfolio compared to just three a year earlier.
Highlights from Coeur's expanded exploration activities include:
• | A 25,000 meter drill program at La Preciosa is nearing completion with an updated PEA anticipated later this year |
• | Since early 2017, four drills have been active underground at Guadalupe and Independencia focused on both resource expansion and conversion. Three to four additional drills have been active on surface, targeting resource expansion at North Independencia, North Guadalupe, La Nación and La Bavisa. Preliminary results from the Zapeta vein, located at the north end of Guadalupe, and the Hidalgo vein, located at the north end of Independencia, have been encouraging and are expected to be included in the Company's year-end resource statement |
• | Exploration efforts at Kensington are accelerating with an incremental $6 million allocated to the 2017 budget of $4 million. These funds are expected to expand the size of Jualin and support sustained mining activities from this high-grade deposit. Resource expansion of veins #4 and #5 remains a strong priority, while drilling on vein #4 focused on resource conversion also progresses. As a result, the Company is increasing its full-year exploration expense guidance to $29 - $31 million |
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Full-Year 2017 Outlook
Production guidance remains unchanged from guidance originally published January 5, 2017 and affirmed on April 6, 2017. Cost guidance per average spot silver equivalent ounce using 69:1 silver-to-gold equivalence was updated by applying 70:1 equivalence on March 23, 2017.
Exploration expense guidance has been increased by $6 million to further accelerate the expansion of Kensington's Jualin deposit. Capital expenditure guidance has been equally reduced due to lower anticipated underground capital development expenditures at Kensington.
2017 Production Outlook
(silver and silver equivalent ounces in thousands) | Silver | Gold | Silver Equivalent1 |
Palmarejo | 6,500 - 7,000 | 110,000 - 120,000 | 13,100 - 14,200 |
Rochester | 4,200 - 4,700 | 47,000 - 52,000 | 7,020 - 7,820 |
San Bartolomé | 5,400 - 5,900 | — | 5,400 - 5,900 |
Endeavor | 300 - 400 | — | 300 - 400 |
Kensington | — | 120,000 - 125,000 | 7,200 - 7,500 |
Wharf | — | 85,000 - 90,000 | 5,100 - 5,400 |
Total | 16,400 - 18,000 | 362,000 - 387,000 | 38,120 - 41,220 |
2017 Cost Outlook
Original Guidance (if changed) | Current Guidance | ||||
(dollars in millions, except per ounce amounts) | 60:1 | 69:1 Spot | 60:1 | 70:1 Spot | |
CAS per AgEqOz1 – Palmarejo | $9.25 - $9.75 | $10.00 - $10.50 | $9.00 - $9.50 | ||
CAS per AgEqOz1 – Rochester | $10.75 - $11.25 | $11.50 - $12.00 | $10.50 - $11.00 | ||
CAS per AgOz1 – San Bartolomé | $14.00 - $14.50 | ||||
CAS per AuOz1 – Kensington | $800 - $850 | ||||
CAS per AuEqOz1 – Wharf | $775 - $825 | ||||
Capital Expenditures | $115 - $135 | $109 - $129 | |||
General and Administrative Expenses | $28 - $32 | ||||
Exploration Expense | $23 - $25 | $29 - $31 | |||
AISC per AgEqOz1 | $14.50 - $15.00 | $15.75 - $16.25 | $14.25 - $14.75 | ||
11
Financial Results and Conference Call
Coeur will report its operational and financial results for first quarter 2017 on April 26, 2017 after the New York Stock Exchange closes for trading. There will be a conference call on April 27, 2017 at 11:00 a.m. Eastern time.
Dial-In Numbers: (855) 560-2581 (US)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID: Coeur Mining
The conference call and presentation will also be webcast on the Company’s website www.coeur.com. Hosting the call will be Mitchell J. Krebs, President and Chief Executive Officer of Coeur, who will be joined by Peter C. Mitchell, Senior Vice President and Chief Financial Officer, Frank L. Hanagarne, Jr., Senior Vice President and Chief Operating Officer, Hans Rasmussen, Senior Vice President of Exploration, and other members of management. A replay of the call will be available through May 11, 2017.
Replay numbers: (877) 344-7529 (US)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID: 101 02 991
About Coeur
Coeur Mining is a well-diversified, growing precious metals producer with five precious metals mines in the Americas employing approximately 2,000 people. Coeur produces from its wholly-owned operations: the Palmarejo silver-gold complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé silver mine in Bolivia. The Company also has a non-operating interest in the Endeavor mine in Australia. In addition, the Company owns the La Preciosa project in Mexico, a silver-gold exploration stage project. Coeur conducts exploration activities in North and South America.
Cautionary Statement
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated production, costs, grades, margin, cash flow, expectations regarding the La Preciosa project and the timing of publication of a PEA, operations at the Palmarejo complex, expectations regarding the Palmarejo gold stream agreement, expansion at Rochester, grades and development efforts at Kensington, operations at Wharf, third party ore purchases at San Bartolomé, and cash flow and production levels at the Endeavor mine. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated production, cost, and expense levels are not attained, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and a sustained lower price environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of gold and silver reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, the loss of any third-party smelter to which Coeur markets silver and gold, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, the political risks and uncertainties associated with operations in Bolivia, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission,
12
and the Canadian securities regulators, including, without limitation, Coeur's most recent reports on Form 10-K or Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.
Christopher Pascoe, Coeur's Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur's mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur's properties as filed on SEDAR at sedar.com.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA, net debt, net debt-to-LTM adjusted EBITDA, total debt-to-LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, net debt, net debt-to-LTM adjusted EBITDA, total debt-to-LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs are important measures in assessing the Company's overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2016 and our quarterly report on Form 10-Q for the quarter ended March 31, 2017.
Notes
1. EBITDA, adjusted EBITDA, net debt, net debt-to-LTM adjusted EBITDA, total debt-to-LTM adjusted EBITDA, adjusted net income (loss), costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), adjusted costs applicable to sales per silver equivalent ounce (or per gold equivalent ounce or per average spot silver equivalent ounce), all-in sustaining costs, and adjusted all-in sustaining costs are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. For purposes of silver and gold equivalence, a 60:1 silver to gold ratio is assumed except where noted as average spot prices. Please see table below for average silver and gold spot prices during the period and the silver to gold ratio. Free cash flow is defined as cash flow from operating activities less capital expenditures and gold production royalty payments. Please see table in Appendix for the calculation of consolidated free cash flow.
2. Includes capital leases. Net of debt issuance costs and premium received.
Average Spot Prices
1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 | |||||||||||
Average Silver Spot Price Per Ounce | $ | 17.42 | $ | 17.19 | $ | 19.61 | $ | 16.78 | $ | 14.85 | |||||
Average Gold Spot Price Per Ounce | $ | 1,219 | $ | 1,222 | $ | 1,335 | $ | 1,260 | $ | 1,183 | |||||
Average Silver to Gold Spot Equivalence | 70:1 | 71:1 | 68:1 | 75:1 | 80:1 | ||||||||||
For Additional Information:
Courtney Lynn, Vice President, Investor Relations and Treasurer
(312) 489-5910
www.coeur.com
13
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Loss)
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
In thousands, except share data | |||||||
Revenue | $ | 206,138 | $ | 148,387 | |||
COSTS AND EXPENSES | |||||||
Costs applicable to sales(1) | 132,712 | 101,555 | |||||
Amortization | 40,104 | 27,964 | |||||
General and administrative | 10,133 | 8,276 | |||||
Exploration | 5,252 | 1,731 | |||||
Write-downs | — | 4,446 | |||||
Pre-development, reclamation, and other | 4,581 | 4,204 | |||||
Total costs and expenses | 192,782 | 148,176 | |||||
OTHER INCOME (EXPENSE), NET | |||||||
Fair value adjustments, net | (1,200 | ) | (8,695 | ) | |||
Interest expense, net of capitalized interest | (3,586 | ) | (11,120 | ) | |||
Other, net | 21,139 | 1,314 | |||||
Total other income (expense), net | 16,353 | (18,501 | ) | ||||
Income (loss) before income and mining taxes | 29,709 | (18,290 | ) | ||||
Income and mining tax (expense) benefit | (11,046 | ) | (2,106 | ) | |||
NET INCOME (LOSS) | $ | 18,663 | $ | (20,396 | ) | ||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax: | |||||||
Unrealized gain (loss) on equity securities, net of tax of ($1,101) for the three months ended March 31, 2016 | (2,182 | ) | 1,043 | ||||
Reclassification adjustments for impairment of equity securities | 121 | — | |||||
Reclassification adjustments for realized (gain) loss on sale of equity securities | 1,471 | 588 | |||||
Other comprehensive income (loss) | (590 | ) | 1,631 | ||||
COMPREHENSIVE INCOME (LOSS) | $ | 18,073 | $ | (18,765 | ) | ||
NET INCOME (LOSS) PER SHARE | |||||||
Basic | $ | 0.10 | $ | (0.14 | ) | ||
Diluted | $ | 0.10 | $ | (0.14 | ) | ||
14
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
In thousands | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 18,663 | (20,396 | ) | |||
Adjustments: | |||||||
Amortization | 40,104 | 27,964 | |||||
Accretion | 2,514 | 3,169 | |||||
Deferred income taxes | 1,375 | (2,105 | ) | ||||
Fair value adjustments, net | 1,200 | 8,695 | |||||
Stock-based compensation | 3,307 | 2,915 | |||||
Gain on sale of the Joaquin project | (21,138 | ) | — | ||||
Write-downs | — | 4,446 | |||||
Other | (2,198 | ) | (1,435 | ) | |||
Changes in operating assets and liabilities: | |||||||
Receivables | 13,106 | 3,481 | |||||
Prepaid expenses and other current assets | (4,299 | ) | 1,279 | ||||
Inventory and ore on leach pads | 14,292 | (7,822 | ) | ||||
Accounts payable and accrued liabilities | (11,655 | ) | (13,574 | ) | |||
CASH PROVIDED BY OPERATING ACTIVITIES | 55,271 | 6,617 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (23,979 | ) | (22,172 | ) | |||
Proceeds from the sale of assets | 15,019 | 4,009 | |||||
Purchase of investments | (1,016 | ) | (7 | ) | |||
Sale of investments | 10,020 | 997 | |||||
Other | (1,546 | ) | (1,473 | ) | |||
CASH USED IN INVESTING ACTIVITIES | (1,502 | ) | (18,646 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payments on debt, capital leases, and associated costs | (3,226 | ) | (5,971 | ) | |||
Gold production royalty payments | — | (9,131 | ) | ||||
Other | (3,247 | ) | (280 | ) | |||
CASH USED IN FINANCING ACTIVITIES | (6,473 | ) | (15,382 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 555 | 86 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 47,851 | (27,325 | ) | ||||
Cash and cash equivalents at beginning of period | 162,182 | 200,714 | |||||
Cash and cash equivalents at end of period | $ | 210,033 | $ | 173,389 | |||
15
Coeur Mining, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, 2017 (Unaudited) | December 31, 2016 | ||||||
ASSETS | In thousands, except share data | ||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 210,033 | $ | 162,182 | |||
Receivables | 67,064 | 60,431 | |||||
Inventory | 73,760 | 106,026 | |||||
Ore on leach pads | 66,585 | 64,167 | |||||
Prepaid expenses and other | 22,450 | 17,981 | |||||
439,892 | 410,787 | ||||||
NON-CURRENT ASSETS | |||||||
Property, plant and equipment, net | 222,617 | 216,796 | |||||
Mining properties, net | 549,207 | 558,455 | |||||
Ore on leach pads | 72,461 | 67,231 | |||||
Restricted assets | 18,954 | 17,597 | |||||
Equity securities | 3,796 | 4,488 | |||||
Receivables | 15,558 | 30,951 | |||||
Other | 15,265 | 12,604 | |||||
TOTAL ASSETS | $ | 1,337,750 | $ | 1,318,909 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 47,370 | $ | 53,335 | |||
Accrued liabilities and other | 37,999 | 42,743 | |||||
Debt | 13,451 | 12,039 | |||||
Royalty obligations | 4,961 | 4,995 | |||||
Reclamation | 3,604 | 3,522 | |||||
107,385 | 116,634 | ||||||
NON-CURRENT LIABILITIES | |||||||
Debt | 205,625 | 198,857 | |||||
Royalty obligations | 4,316 | 4,292 | |||||
Reclamation | 97,595 | 95,804 | |||||
Deferred tax liabilities | 76,363 | 74,798 | |||||
Other long-term liabilities | 59,846 | 60,037 | |||||
443,745 | 433,788 | ||||||
STOCKHOLDERS’ EQUITY | |||||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, issued and outstanding 181,492,911 at March 31, 2017 and 180,933,287 at December 31, 2016 | 1,815 | 1,809 | |||||
Additional paid-in capital | 3,314,644 | 3,314,590 | |||||
Accumulated other comprehensive income (loss) | (3,078 | ) | (2,488 | ) | |||
Accumulated deficit | (2,526,761 | ) | (2,545,424 | ) | |||
786,620 | 768,487 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,337,750 | $ | 1,318,909 | |||
16
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts) | LTM 1Q 2017 | 1Q 2017 | 2016 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 | LTM 1Q 2016 | |||||||||||||||||||||||
Net income (loss) | $ | 94,411 | $ | 18,663 | $ | 55,352 | $ | (8,306 | ) | $ | 69,557 | $ | 14,497 | $ | (20,396 | ) | $ | (354,292 | ) | ||||||||||||
Interest expense, net of capitalized interest | 29,386 | 3,586 | 36,920 | 6,857 | 8,068 | 10,875 | 11,120 | 46,058 | |||||||||||||||||||||||
Income tax provision (benefit) | (45,299 | ) | 11,046 | (54,239 | ) | (1,122 | ) | (54,455 | ) | (768 | ) | 2,106 | (24,225 | ) | |||||||||||||||||
Amortization | 135,301 | 40,104 | 123,161 | 29,929 | 27,763 | 37,505 | 27,964 | 138,625 | |||||||||||||||||||||||
EBITDA | 213,799 | 73,399 | 161,194 | 27,358 | 50,933 | 62,109 | 20,794 | (193,834 | ) | ||||||||||||||||||||||
Fair value adjustments, net | 4,086 | 1,200 | 11,581 | (1,654 | ) | 961 | 3,579 | 8,695 | (1,391 | ) | |||||||||||||||||||||
Impairment of equity securities | 824 | 121 | 703 | 683 | — | 20 | — | 832 | |||||||||||||||||||||||
Foreign exchange loss | 9,207 | (1,349 | ) | 10,720 | 3,435 | 1,466 | 5,655 | 164 | 13,727 | ||||||||||||||||||||||
Gain on sale of Joaquin project | (21,138 | ) | (21,138 | ) | — | — | — | — | — | — | |||||||||||||||||||||
(Gain) loss on sale of assets | (8,183 | ) | 2,066 | (11,334 | ) | 339 | (7,462 | ) | (3,126 | ) | (1,085 | ) | (778 | ) | |||||||||||||||||
(Gain) loss on debt extinguishment | 21,365 | — | 21,365 | 11,325 | 10,040 | — | — | (15,700 | ) | ||||||||||||||||||||||
Corporate reorganization costs | — | — | — | — | — | — | — | 647 | |||||||||||||||||||||||
Transaction-related costs | 819 | — | 1,199 | 1 | 26 | 792 | 380 | 517 | |||||||||||||||||||||||
Asset retirement obligation accretion | 8,699 | 2,390 | 8,369 | 2,147 | 2,096 | 2,066 | 2,060 | 8,542 | |||||||||||||||||||||||
Inventory adjustments and write-downs | 5,896 | (104 | ) | 6,917 | 389 | 4,665 | 946 | 1,944 | 6,957 | ||||||||||||||||||||||
Write-downs | — | — | 4,446 | — | — | — | 4,446 | 317,783 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 235,374 | $ | 56,585 | $ | 215,160 | $ | 44,023 | $ | 62,725 | $ | 72,041 | $ | 37,398 | $ | 137,302 | |||||||||||||||
Adjusted Net Income (Loss) Reconciliation
(Dollars in thousands except per share amounts) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 | ||||||||||||||
Net income (loss) | $ | 18,663 | $ | (8,306 | ) | $ | 69,557 | $ | 14,497 | $ | (20,396 | ) | |||||||
Fair value adjustments, net | 1,200 | (1,654 | ) | 961 | 3,579 | 8,695 | |||||||||||||
Impairment of equity securities | 121 | 683 | — | 20 | — | ||||||||||||||
Write-downs | — | — | — | — | 4,446 | ||||||||||||||
Inventory write-downs | — | — | 3,689 | — | — | ||||||||||||||
Gain on sale of Joaquin project | (21,138 | ) | — | — | — | — | |||||||||||||
(Gain) loss on sale of assets | 2,066 | 339 | (7,462 | ) | (3,126 | ) | (1,085 | ) | |||||||||||
(Gain) loss on debt extinguishments | — | 11,325 | 10,040 | — | — | ||||||||||||||
Corporate reorganization costs | — | — | — | — | — | ||||||||||||||
Transaction-related costs | — | 1 | 26 | 792 | 380 | ||||||||||||||
Deferred tax on reorganization | — | — | (40,767 | ) | — | — | |||||||||||||
Foreign exchange (gain) loss | 4,268 | 351 | 2,549 | (2,810 | ) | (1,124 | ) | ||||||||||||
Tax effect of adjustments | 1,807 | — | (38 | ) | $ | 3,996 | $ | (1,375 | ) | ||||||||||
Adjusted net income (loss) | $ | 6,987 | $ | 2,739 | $ | 38,555 | $ | 16,948 | $ | (10,459 | ) | ||||||||
Adjusted net income (loss) per share - Basic | $ | 0.04 | $ | 0.01 | $ | 0.24 | $ | 0.11 | $ | (0.06 | ) | ||||||||
Adjusted net income (loss) per share - Diluted | $ | 0.04 | $ | 0.01 | $ | 0.23 | $ | 0.11 | $ | (0.06 | ) | ||||||||
17
Consolidated Debt Reconciliation
(Dollars in thousands) | 1Q 2017 | 2016 | 1Q 2016 | ||||||||
Cash and cash equivalents | $ | 210,033 | $ | 162,182 | $ | 171,389 | |||||
Total debt | 219,076 | 210,896 | 511,101 | ||||||||
Net debt | 9,043 | 48,714 | 339,712 | ||||||||
LTM adjusted EBITDA | 235,374 | 215,160 | 137,302 | ||||||||
Total debt / LTM adjusted EBITDA | 0.9 | x | 1.0 | x | 3.7 | x | |||||
Net debt / LTM adjusted EBITDA | 0.04 | x | 0.2 | x | 2.5 | x | |||||
Consolidated Free Cash Flow Reconciliation
(Dollars in thousands) | 1Q 2017 | 4Q 2016 | 3Q 2016 | 2Q 2016 | 1Q 2016 | ||||||||||||||
Cash flow from operating activities | $ | 55,271 | $ | 25,449 | $ | 47,812 | $ | 45,939 | $ | 6,617 | |||||||||
Capital expenditures | (23,979 | ) | (29,926 | ) | (25,627 | ) | (23,288 | ) | (22,172 | ) | |||||||||
Gold production royalty payments | — | — | (7,563 | ) | (10,461 | ) | (9,131 | ) | |||||||||||
Free cash flow | 31,292 | (4,477 | ) | 14,622 | 12,190 | (24,686 | ) | ||||||||||||
18
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended March 31, 2017
Silver | Gold | Total | ||||||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 63,151 | $ | 32,255 | $ | 19,633 | $ | 400 | $ | 115,439 | $ | 37,621 | $ | 19,431 | $ | 57,052 | $ | 172,491 | ||||||||||||||||||
Amortization | 20,150 | 5,816 | 1,411 | 113 | 27,490 | 9,178 | 3,111 | 12,289 | 39,779 | |||||||||||||||||||||||||||
Costs applicable to sales | $ | 43,001 | $ | 26,439 | $ | 18,222 | $ | 287 | $ | 87,949 | $ | 28,443 | $ | 16,320 | $ | 44,763 | $ | 132,712 | ||||||||||||||||||
Silver equivalent ounces sold | 4,427,346 | 2,104,209 | 1,148,006 | 39,765 | 7,719,326 | 11,126,126 | ||||||||||||||||||||||||||||||
Gold equivalent ounces sold | 32,144 | 24,636 | 56,780 | |||||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 9.71 | $ | 12.56 | $ | 15.87 | $ | 7.22 | $ | 11.39 | $ | 885 | $ | 662 | $ | 788 | $ | 11.93 | ||||||||||||||||||
Inventory adjustments | (0.03 | ) | 0.01 | 0.01 | — | (0.01 | ) | (1 | ) | 8 | 3 | 0.01 | ||||||||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 9.68 | $ | 12.57 | $ | 15.88 | $ | 7.22 | $ | 11.38 | $ | 884 | $ | 670 | $ | 791 | $ | 11.94 | ||||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 8.89 | $ | 11.80 | $ | 10.64 | $ | 10.85 | ||||||||||||||||||||||||||||
Inventory adjustments | (0.02 | ) | 0.01 | (0.01 | ) | 0.01 | ||||||||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 8.87 | $ | 11.81 | $ | 10.63 | $ | 10.86 | ||||||||||||||||||||||||||||
Costs applicable to sales | $ | 132,712 | ||||||||||||||||||||||||||||||||||
Treatment and refining costs | 1,616 | |||||||||||||||||||||||||||||||||||
Sustaining capital(1) | 11,600 | |||||||||||||||||||||||||||||||||||
General and administrative | 10,133 | |||||||||||||||||||||||||||||||||||
Exploration | 5,252 | |||||||||||||||||||||||||||||||||||
Reclamation | 3,818 | |||||||||||||||||||||||||||||||||||
Project/pre-development costs | 1,889 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 167,020 | ||||||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 7,719,326 | |||||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,406,800 | |||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 11,126,126 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 15.01 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | 0.01 | ||||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 15.02 | ||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 12,235,897 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 13.65 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | 0.01 | ||||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 13.66 | ||||||||||||||||||||||||||||||||||
19
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended December 31, 2016
Silver | Gold | Total | ||||||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 29,667 | $ | 29,581 | $ | 18,514 | $ | 557 | $ | 78,319 | $ | 31,577 | $ | 21,861 | $ | 53,438 | $ | 131,757 | ||||||||||||||||||
Amortization | 8,784 | 5,844 | 1,303 | 148 | 16,079 | 8,584 | 4,982 | 13,566 | 29,645 | |||||||||||||||||||||||||||
Costs applicable to sales | $ | 20,883 | $ | 23,737 | $ | 17,211 | $ | 409 | $ | 62,240 | $ | 22,993 | $ | 16,879 | $ | 39,872 | $ | 102,112 | ||||||||||||||||||
Silver equivalent ounces sold | 1,871,178 | 1,983,393 | 1,217,659 | 57,903 | 5,130,133 | 8,674,273 | ||||||||||||||||||||||||||||||
Gold equivalent ounces sold | 28,864 | 30,205 | 59,069 | |||||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 11.16 | $ | 11.97 | $ | 14.13 | $ | 7.06 | $ | 12.13 | $ | 797 | $ | 559 | $ | 675 | $ | 11.77 | ||||||||||||||||||
Inventory adjustments | (0.15 | ) | 0.02 | (0.16 | ) | — | (0.08 | ) | 4 | (3 | ) | 1 | (0.04 | ) | ||||||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 11.01 | $ | 11.99 | $ | 13.97 | $ | 7.06 | $ | 12.05 | $ | 801 | $ | 556 | $ | 676 | $ | 11.73 | ||||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 10.24 | $ | 11.14 | $ | 11.42 | $ | 10.59 | ||||||||||||||||||||||||||||
Inventory adjustments | (0.13 | ) | 0.02 | (0.08 | ) | (0.04 | ) | |||||||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 10.11 | $ | 11.16 | $ | 11.34 | $ | 10.55 | ||||||||||||||||||||||||||||
Costs applicable to sales | $ | 102,112 | ||||||||||||||||||||||||||||||||||
Treatment and refining costs | 1,261 | |||||||||||||||||||||||||||||||||||
Sustaining capital | 19,850 | |||||||||||||||||||||||||||||||||||
General and administrative | 6,587 | |||||||||||||||||||||||||||||||||||
Exploration | 5,261 | |||||||||||||||||||||||||||||||||||
Reclamation | 3,537 | |||||||||||||||||||||||||||||||||||
Project/pre-development costs | 1,693 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 140,301 | ||||||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,130,133 | |||||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,544,140 | |||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,674,273 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 16.17 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.04 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 16.13 | ||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 9,636,058 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 14.56 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.04 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 14.52 | ||||||||||||||||||||||||||||||||||
20
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended September 30, 2016
Silver | Gold | Total | ||||||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 21,794 | $ | 27,027 | $ | 22,536 | $ | 486 | $ | 71,843 | $ | 34,755 | $ | 26,158 | $ | 60,913 | $ | 132,756 | ||||||||||||||||||
Amortization | 5,761 | 5,244 | 1,723 | 113 | 12,841 | 8,046 | 6,461 | 14,507 | 27,348 | |||||||||||||||||||||||||||
Costs applicable to sales | $ | 16,033 | $ | 21,783 | $ | 20,813 | $ | 373 | $ | 59,002 | $ | 26,709 | $ | 19,697 | $ | 46,406 | $ | 105,408 | ||||||||||||||||||
Silver equivalent ounces sold | 1,462,401 | 1,868,085 | 1,390,552 | 46,069 | 4,767,107 | 8,397,467 | ||||||||||||||||||||||||||||||
Gold equivalent ounces sold | 30,998 | 29,508 | 60,506 | |||||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 10.96 | $ | 11.66 | $ | 14.97 | $ | 8.10 | $ | 12.38 | $ | 862 | $ | 668 | $ | 767 | $ | 12.55 | ||||||||||||||||||
Inventory adjustments | (0.26 | ) | (0.10 | ) | (0.57 | ) | — | (0.28 | ) | (3 | ) | (109 | ) | (55 | ) | (0.56 | ) | |||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 10.70 | $ | 11.56 | $ | 14.40 | $ | 8.10 | $ | 12.10 | $ | 859 | $ | 559 | $ | 712 | $ | 11.99 | ||||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 10.29 | $ | 11.11 | $ | 11.91 | $ | 11.62 | ||||||||||||||||||||||||||||
Inventory adjustments | (0.24 | ) | (0.09 | ) | (0.27 | ) | (0.52 | ) | ||||||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 10.05 | $ | 11.02 | $ | 11.64 | $ | 11.10 | ||||||||||||||||||||||||||||
Costs applicable to sales | $ | 105,408 | ||||||||||||||||||||||||||||||||||
Treatment and refining costs | 761 | |||||||||||||||||||||||||||||||||||
Sustaining capital | 19,762 | |||||||||||||||||||||||||||||||||||
General and administrative | 7,113 | |||||||||||||||||||||||||||||||||||
Exploration | 3,706 | |||||||||||||||||||||||||||||||||||
Reclamation | 4,036 | |||||||||||||||||||||||||||||||||||
Project/pre-development costs | 2,133 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 142,919 | ||||||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 4,767,107 | |||||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,630,360 | |||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,397,467 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 17.02 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.56 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 16.46 | ||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 9,074,222 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 15.75 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.52 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 15.23 | ||||||||||||||||||||||||||||||||||
21
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended June 30, 2016
Silver | Gold | Total | ||||||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 37,630 | $ | 27,158 | $ | 20,498 | $ | 365 | $ | 85,651 | $ | 32,419 | $ | 19,470 | $ | 51,889 | $ | 137,540 | ||||||||||||||||||
Amortization | 14,765 | 5,437 | 1,853 | 84 | 22,139 | 9,808 | 5,128 | 14,936 | 37,075 | |||||||||||||||||||||||||||
Costs applicable to sales | $ | 22,865 | $ | 21,721 | $ | 18,645 | $ | 281 | $ | 63,512 | $ | 22,611 | $ | 14,342 | $ | 36,953 | $ | 100,465 | ||||||||||||||||||
Silver equivalent ounces sold | 2,502,442 | 1,911,885 | 1,418,455 | 35,411 | 5,868,193 | 9,286,033 | ||||||||||||||||||||||||||||||
Gold equivalent ounces sold | 30,178 | 26,786 | 56,964 | |||||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 9.14 | $ | 11.36 | $ | 13.14 | $ | 7.94 | $ | 10.82 | $ | 749 | $ | 535 | $ | 649 | $ | 10.82 | ||||||||||||||||||
Inventory adjustments | (0.12 | ) | (0.06 | ) | (0.17 | ) | — | (0.11 | ) | (9 | ) | (1 | ) | (5 | ) | (0.10 | ) | |||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 9.02 | $ | 11.30 | $ | 12.97 | $ | 7.94 | $ | 10.71 | $ | 740 | $ | 534 | $ | 644 | $ | 10.72 | ||||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 8.20 | $ | 10.30 | $ | 10.00 | $ | 9.45 | ||||||||||||||||||||||||||||
Inventory adjustments | (0.11 | ) | (0.06 | ) | (0.10 | ) | (0.09 | ) | ||||||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 8.09 | $ | 10.24 | $ | 9.90 | $ | 9.36 | ||||||||||||||||||||||||||||
Costs applicable to sales | $ | 100,465 | ||||||||||||||||||||||||||||||||||
Treatment and refining costs | 1,128 | |||||||||||||||||||||||||||||||||||
Sustaining capital | 21,019 | |||||||||||||||||||||||||||||||||||
General and administrative | 7,400 | |||||||||||||||||||||||||||||||||||
Exploration | 2,233 | |||||||||||||||||||||||||||||||||||
Reclamation | 4,170 | |||||||||||||||||||||||||||||||||||
Project/pre-development costs | 2,098 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 138,513 | ||||||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 5,868,193 | |||||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,417,840 | |||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 9,286,033 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 14.92 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.10 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 14.82 | ||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 10,622,163 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 13.04 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.09 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 12.95 | ||||||||||||||||||||||||||||||||||
22
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for Three Months Ended March 31, 2016
Silver | Gold | Total | ||||||||||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total | Kensington | Wharf | Total | ||||||||||||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 28,327 | $ | 27,798 | $ | 19,251 | $ | 955 | $ | 76,331 | $ | 32,767 | $ | 19,512 | $ | 52,279 | $ | 128,610 | ||||||||||||||||||
Amortization | 7,289 | 5,313 | 1,754 | 299 | 14,655 | 8,349 | 4,051 | 12,400 | 27,055 | |||||||||||||||||||||||||||
Costs applicable to sales | $ | 21,038 | $ | 22,485 | $ | 17,497 | $ | 656 | $ | 61,676 | $ | 24,418 | $ | 15,461 | $ | 39,879 | $ | 101,555 | ||||||||||||||||||
Silver equivalent ounces sold | 1,702,290 | 1,779,377 | 1,384,391 | 122,694 | 4,988,752 | 8,274,952 | ||||||||||||||||||||||||||||||
Gold equivalent ounces sold | 31,648 | 23,122 | 54,770 | |||||||||||||||||||||||||||||||||
Costs applicable to sales per ounce | $ | 12.36 | $ | 12.64 | $ | 12.64 | $ | 5.35 | $ | 12.36 | $ | 772 | $ | 669 | $ | 728 | $ | 12.27 | ||||||||||||||||||
Inventory adjustments | (0.82 | ) | (0.03 | ) | (0.08 | ) | — | (0.31 | ) | (11 | ) | (2 | ) | (7 | ) | (0.23 | ) | |||||||||||||||||||
Adjusted costs applicable to sales per ounce | $ | 11.54 | $ | 12.61 | $ | 12.56 | $ | 5.35 | $ | 12.05 | $ | 761 | $ | 667 | $ | 721 | $ | 12.04 | ||||||||||||||||||
Costs applicable to sales per average spot ounce | $ | 10.74 | $ | 11.20 | $ | 11.28 | $ | 10.34 | ||||||||||||||||||||||||||||
Inventory adjustments | (0.71 | ) | (0.03 | ) | (0.28 | ) | (0.20 | ) | ||||||||||||||||||||||||||||
Adjusted costs applicable to sales per average spot ounce | $ | 10.03 | $ | 11.17 | $ | 11.00 | $ | 10.14 | ||||||||||||||||||||||||||||
Costs applicable to sales | $ | 101,555 | ||||||||||||||||||||||||||||||||||
Treatment and refining costs | 1,158 | |||||||||||||||||||||||||||||||||||
Sustaining capital | 16,710 | |||||||||||||||||||||||||||||||||||
General and administrative | 8,276 | |||||||||||||||||||||||||||||||||||
Exploration | 1,731 | |||||||||||||||||||||||||||||||||||
Reclamation | 3,759 | |||||||||||||||||||||||||||||||||||
Project/pre-development costs | 1,558 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs | $ | 134,747 | ||||||||||||||||||||||||||||||||||
Silver equivalent ounces sold | 4,988,752 | |||||||||||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 3,286,200 | |||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 8,274,952 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce | $ | 16.28 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.23 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per silver equivalent ounce | $ | 16.05 | ||||||||||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold (average spot) | 9,828,373 | |||||||||||||||||||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce | $ | 13.71 | ||||||||||||||||||||||||||||||||||
Inventory adjustments | $ | (0.20 | ) | |||||||||||||||||||||||||||||||||
Adjusted all-in sustaining costs per average spot silver equivalent ounce | $ | 13.51 | ||||||||||||||||||||||||||||||||||
23
Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce
for 2017 Guidance
Silver | Gold | ||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total Silver | Kensington | Wharf | Total Gold | Total Combined | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 211,000 | $ | 108,380 | $ | 102,000 | $ | 3,750 | $ | 425,130 | $ | 130,500 | $ | 83,800 | $ | 214,300 | $ | 639,430 | |||||||||
Amortization | 69,200 | 19,860 | 18,500 | — | 107,560 | 29,100 | 11,500 | 40,600 | 148,160 | ||||||||||||||||||
Costs applicable to sales | $ | 141,800 | $ | 88,520 | $ | 83,500 | $ | 3,750 | $ | 317,570 | $ | 101,400 | $ | 72,300 | $ | 173,700 | $ | 491,270 | |||||||||
Silver equivalent ounces sold | 14,000,000 | 7,680,000 | 5,900,000 | 380,000 | 27,960,000 | 40,800,000 | |||||||||||||||||||||
Gold equivalent ounces sold | 124,000 | 90,000 | 214,000 | ||||||||||||||||||||||||
Costs applicable to sales per ounce guidance | $10.00 - $10.50 | $11.50 - $12.00 | $14.00 - $14.50 | $800 - $850 | $775 - $825 | ||||||||||||||||||||||
Costs applicable to sales | $ | 491,270 | |||||||||||||||||||||||||
Treatment and refining costs | 4,300 | ||||||||||||||||||||||||||
Sustaining capital, including capital lease payments | 82,000 | ||||||||||||||||||||||||||
General and administrative | 30,000 | ||||||||||||||||||||||||||
Exploration | 30,000 | ||||||||||||||||||||||||||
Reclamation | 14,000 | ||||||||||||||||||||||||||
Project/pre-development costs | 5,700 | ||||||||||||||||||||||||||
All-in sustaining costs | $ | 657,270 | |||||||||||||||||||||||||
Silver equivalent ounces sold | 27,960,000 | ||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 12,840,000 | ||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 40,800,000 | ||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce guidance | $15.75 - $16.25 | ||||||||||||||||||||||||||
Reconciliation of All-in Sustaining Costs per 70:1 Spot Silver Equivalent Ounce
for 2017 Guidance
Silver | Gold | ||||||||||||||||||||||||||
In thousands except per ounce amounts | Palmarejo | Rochester | San Bartolomé | Endeavor | Total Silver | Kensington | Wharf | Total Gold | Total Combined | ||||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP) | $ | 211,000 | $ | 108,380 | $ | 102,000 | $ | 3,750 | $ | 425,130 | $ | 130,500 | $ | 83,800 | $ | 214,300 | $ | 639,430 | |||||||||
Amortization | 69,200 | 19,860 | 18,500 | — | 107,560 | 29,100 | 11,500 | 40,600 | 148,160 | ||||||||||||||||||
Costs applicable to sales | $ | 141,800 | $ | 88,520 | $ | 83,500 | $ | 3,750 | $ | 317,570 | $ | 101,400 | $ | 72,300 | $ | 173,700 | $ | 491,270 | |||||||||
Silver equivalent ounces sold | 15,380,000 | 8,160,000 | 5,900,000 | 380,000 | 29,820,000 | 44,800,000 | |||||||||||||||||||||
Gold equivalent ounces sold | 124,000 | 90,000 | 214,000 | ||||||||||||||||||||||||
Costs applicable to sales per ounce guidance | $9.00 - $9.50 | $10.50 - $11.00 | $14.00 - $14.50 | $800 - $850 | $775 - $825 | ||||||||||||||||||||||
Costs applicable to sales | $ | 491,270 | |||||||||||||||||||||||||
Treatment and refining costs | 4,300 | ||||||||||||||||||||||||||
Sustaining capital, including capital lease payments | 82,000 | ||||||||||||||||||||||||||
General and administrative | 30,000 | ||||||||||||||||||||||||||
Exploration | 30,000 | ||||||||||||||||||||||||||
Reclamation | 14,000 | ||||||||||||||||||||||||||
Project/pre-development costs | 5,700 | ||||||||||||||||||||||||||
All-in sustaining costs | $ | 657,270 | |||||||||||||||||||||||||
Silver equivalent ounces sold | 29,820,000 | ||||||||||||||||||||||||||
Kensington and Wharf silver equivalent ounces sold | 14,980,000 | ||||||||||||||||||||||||||
Consolidated silver equivalent ounces sold | 44,800,000 | ||||||||||||||||||||||||||
All-in sustaining costs per silver equivalent ounce guidance | $14.25 - $14.75 | ||||||||||||||||||||||||||
24