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8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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VeryIndependentResearch,LLC
KnightCapital
Group
MetalsConferenceNovember18th &19th,2009
NEWKENSINGTON GOLDMINE
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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http://www.sec.gov/edgar.shtmlhttp://www.sedar.com/8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
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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
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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7
Thirdconsecutivequarterofconsistentproductionand
operatingcosts
YTDsilverproductionof6.1
millionounceswithaverage
cashoperatingcostsof
$7.54/oz
SanBartolom,Bolivia
OurThree
Newest
Mines
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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
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OurThree
Newest
Mines
Finalconstructionactivitiesbeganduring3Q
Ontrack
for
a2H
2010
startup;
40,000ouncesofexpected2010goldproduction;120,000ouncesofproductionexpectedin
2011
$45milliontermloannowinplacetoensuresufficientfinancial
flexibility
Kensington,Alaska
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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$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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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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
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Continueprimarysilverproductionprofileandasignificant
gold
component
Leverage
substantial
investments
now
in
place to
generatesuperiorrates ofreturnforshareholders
Focusedbutsignificantexplorationaround/nearexistingoperations,suchasPalmarejo andKensington
Pursueminingopportunitiesinareaswithanexistingpresence,likeRochester
Maintain aconservative,flexiblebalancesheet
Commitmentto
Company
Strategy
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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
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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Pleasedirectinquiries,requestsforassistanceandcopiesoftheCompanysAnnual
Reportto:
KarliAnderson
Director,InvestorRelationsNorthAmerica
(208)771
2728
ForcurrentpressreleasesandCompanynews,visittheCoeurwebsiteat
www.coeur.com.
Inquiries
18
8/14/2019 Coeur D Alene Mines Nov 2009 Presentation
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Appendix
19
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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.
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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