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NEWS RELEASE
Coeur Reports Third Quarter Financial and Operating Results
COEUR D'ALENE, Idaho - November 6, 2012 - Coeur d'Alene Mines Corporation (NYSE:CDE, TSX:CDM) produced 4.4 million ounces of silver and 58,768 ounces of gold during the third quarter, which resulted in $230.6 million in sales and $77.3 million of operating cash flow1. The Company repurchased $10.0 million of its common shares during the quarter and repaid $72.0 million of outstanding debt, resulting in total remaining debt of $47.4 million2 and cash, cash equivalents and short-term investments of $143.6 million as of September 30, 2012.
Third Quarter Highlights
• | Silver production totaled 4.4 million ounces, 10% lower than second quarter 2012 levels. |
• | Gold production totaled 58,768 ounces, down 7% from the second quarter. |
• | Net metal sales totaled $230.6 million, down 9% from the second quarter. |
• | Operating cash flow1 totaled $77.3 million, down 13% from the second quarter. Including changes in working capital, net cash from operating activities was $79.7 million compared to $113.2 million in the second quarter. |
• | Consolidated cash operating costs1 were $9.05 per silver ounce compared to $6.41 per silver ounce in the second quarter. |
• | Kensington's cash operating costs1 per gold ounce declined 4% from the second quarter to $1,298. These costs are expected to decline to under $950 per ounce in 2013. |
• | Adjusted earnings1 were $25.8 million, or $0.29 per share, compared with $28.0 million, or $0.31 per share, in the second quarter 2012. Net loss for the quarter, which included a non-cash fair market value adjustment of $37.6 million, was $15.8 million, or $0.18 per share, compared with net income of $23.0 million, or $0.26 per share, in the second quarter. |
• | Cash, cash equivalents and short-term investments were $143.6 million as of September 30, 2012. |
Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, “The Company's third quarter was negatively impacted by lower production and higher unit costs at the Palmarejo mine in Mexico, which were due to unfavorable underground conditions encountered during September and a transition in open pit production. Open pit production has been accelerated to partially offset the impact, which has led to higher unit costs and lower overall grades."
Mr. Krebs added, "Our Rochester silver and gold mine in Nevada and our Kensington gold mine in Alaska continued to accelerate production rates during the quarter. Despite experiencing power outages that resulted in unanticipated mill downtime during August, our San Bartolomé silver mine in Bolivia delivered consistent operational results."
The Company expects 2012 full-year production to total 18.5 - 19.0 million silver ounces and 215,000 - 225,000 gold ounces. Cash operating costs1 are expected to be approximately $7.50 per silver ounce. The Company expects cash operating costs1 per ounce of gold at Kensington to average approximately $1,350 for the full year 2012.
"As we look ahead to 2013, we expect silver and gold production to be consistent with 2011 and 2012 levels," Mr. Krebs commented.
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
2. | Net of debt discount of $1.3 million. |
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Table 1: Financial Highlights (Unaudited)
(All amounts in millions, except per share amounts, average realized prices and gold ounces sold) | 3Q 2012 | 3Q 2011 | Quarter Variance | YTD 2012 | YTD 2011 | YTD Variance | |||||||||||||||
Sales of Metal | $ | 230.6 | $ | 343.6 | (33 | %) | $ | 689.6 | $ | 774.3 | (11 | %) | |||||||||
Production Costs | $ | 125.0 | $ | 141.3 | (12 | %) | $ | 349.3 | $ | 310.8 | 12 | % | |||||||||
EBITDA (1) | $ | 86.8 | $ | 186.0 | (53 | %) | $ | 286.2 | $ | 411.6 | (30 | %) | |||||||||
Adjusted Earnings (1) | $ | 25.8 | $ | 93.8 | (72 | %) | $ | 95.3 | $ | 189.3 | (50 | %) | |||||||||
Adjusted Earnings Per Share(1) | $ | 0.29 | $ | 1.05 | (72 | %) | $ | 1.06 | $ | 2.12 | (50 | %) | |||||||||
Net Income (Loss) | $ | (15.8 | ) | $ | 31.1 | (151 | %) | $ | 11.1 | $ | 82.1 | (86 | %) | ||||||||
Earnings (Loss) Per Share | $ | (0.18 | ) | $ | 0.35 | (151 | %) | $ | 0.12 | $ | 0.92 | (87 | %) | ||||||||
Operating Cash Flow (1) | $ | 77.3 | $ | 151.0 | (49 | %) | $ | 259.5 | $ | 356.9 | (27 | %) | |||||||||
Cash From Operating Activities | $ | 79.7 | $ | 181.9 | (56 | %) | $ | 209.9 | $ | 328.8 | (36 | %) | |||||||||
Capital Expenditures | $ | 30.0 | $ | 38.1 | (21 | %) | $ | 93.9 | $ | 79.8 | 18 | % | |||||||||
Cash, Cash Equivalents, and Short-Term Investments | $ | 143.6 | $ | 209.0 | (31 | %) | $ | 143.6 | $ | 209.0 | (31 | %) | |||||||||
Total Debt(1) (net of debt discount) | $ | 47.4 | $ | 146.7 | (68 | %) | $ | 47.4 | $ | 146.7 | (68 | %) | |||||||||
Weighted Average Shares Issued & Outstanding | 89.4 | 89.4 | — | % | 89.6 | 89.4 | — | % | |||||||||||||
Average Realized Price Per Ounce - Silver | $ | 30.09 | $ | 38.28 | (21 | %) | $ | 30.52 | $ | 36.69 | (17 | %) | |||||||||
Average Realized Price Per Ounce - Gold | $ | 1,654 | $ | 1,681 | (2 | %) | $ | 1,649 | $ | 1,523 | 8 | % | |||||||||
Silver Ounces Sold | 4.5 | 6.2 | (27 | %) | 14.4 | 13.9 | 4 | % | |||||||||||||
Gold Ounces Sold | 59,156 | 67,391 | (12 | %) | 157,621 | 183,243 | (14 | %) | |||||||||||||
Lower net metal sales in the third quarter resulted primarily from lower production rates at Palmarejo, lower average realized silver and gold prices, and fewer ounces of silver and gold sold compared to the third quarter 2011. Silver contributed 59% of the Company's total metal sales during the third quarter 2012 compared to 68% during the third quarter 2011.
Consolidated production costs of $125.0 million were primarily due to lower production levels during the quarter. Consolidated cash operating costs1 were $9.05 per silver ounce compared to $7.57 per silver ounce in the third quarter 2011. Increased cash operating costs1 per silver ounce reflect higher mining costs associated with additional underground support measures, higher maintenance costs, and waste haulage costs in the open pit at Palmarejo and lower mill production rates at San Bartolomé during the quarter due to power interruptions. As previously announced, the Company ceased operating activities and commenced reclamation at the Martha underground silver mine in Argentina in September 2012.
Prior to changes in working capital, Coeur generated $77.3 million in operating cash flow1 in the third quarter 2012 compared to $88.4 million in the second quarter 2012 and $151.0 million in the third quarter 2011. After working capital changes, the Company generated $79.7 million in cash from operating activities in the third quarter 2012 compared to $113.2 million in the second quarter 2012 and $181.9 million during the third quarter 2011.
Coeur reports a non-U.S. GAAP metric of adjusted earnings1 as a measure of operating income, which excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. Third quarter 2012 adjusted earnings1 were $25.8 million, or $0.29 per share, compared with $28.0 million, or $0.31 per share, in the second quarter 2012 and $93.8 million, or $1.05 per share, in the third quarter 2011. On a U.S. GAAP basis, the Company realized a net loss of $15.8 million, or $0.18 per share, compared with net income of $23.0 million, or $0.26 per share, in the second quarter and net income of $31.1 million, or $0.35 per share, in the third quarter 2011. Reduced metal sales and negative fair value adjustments of $37.6 million impacted third quarter net income. In the third quarter 2011, fair value adjustments were negative $53.4 million. Fair value adjustments are driven primarily by lower or higher gold prices, which decrease or increase, respectively, the estimated future liabilities related to a gold royalty obligation at Palmarejo.
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
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Capital expenditures totaled $30.0 million during the third quarter 2012 compared to $32.2 million in the second quarter and $38.1 million in the third quarter 2011. Capital expenditures in the third quarter were primarily related to capitalized exploration drilling and development of the Guadalupe satellite operation located six kilometers from the main Palmarejo operation, underground development at Palmarejo, completion of a dry stack tailings facility at San Bartolomé and an expansion of the tailings facility at Kensington.
Cash, cash equivalents and short-term investments totaled $143.6 million after full payment of the Kensington term facility balance of $72.0 million and repurchasing $10.0 million of Company stock in the third quarter. Shares outstanding at quarter-end totaled 89.4 million.
Table 2: Operational Highlights: Production
(silver ounces in thousands) | 3Q 2012 | 3Q 2011 | Quarter Variance | YTD 2012 | YTD 2011 | YTD Variance | |||||||||||||||||||
Silver | Gold | Silver | Gold | Silver | Gold | Silver | Gold | Silver | Gold | Silver | Gold | ||||||||||||||
Palmarejo | 1,833 | 23,702 | 2,251 | 29,815 | (19 | %) | (21 | %) | 6,682 | 86,040 | 6,351 | 90,963 | 5 | % | (5 | %) | |||||||||
San Bartolomé | 1,526 | — | 2,051 | — | (26 | %) | n.a. | 4,587 | — | 5,504 | — | (17 | %) | n.a. | |||||||||||
Rochester | 819 | 10,599 | 352 | 1,435 | 133 | % | 639 | % | 1,973 | 26,012 | 1,019 | 4,283 | 94 | % | 507 | % | |||||||||
Martha | 93 | 76 | 118 | 115 | (21 | %) | (34 | %) | 323 | 257 | 399 | 471 | (19 | %) | (45 | %) | |||||||||
Kensington | — | 24,391 | — | 25,687 | n.a. | (5 | %) | — | 53,407 | — | 75,121 | n.a. | (29 | %) | |||||||||||
Endeavor | 140 | — | 138 | — | 1 | % | n.a. | 628 | — | 502 | — | 25 | % | n.a. | |||||||||||
Total | 4,411 | 58,768 | 4,910 | 57,052 | (10 | %) | 3 | % | 14,193 | 165,716 | 13,775 | 170,838 | 3 | % | (3 | %) | |||||||||
*Additional operating statistics can be found in the tables in the appendix.
Table 3: Operational Highlights: Cash Operating Costs Per Ounce 1
3Q 2012 | 3Q 2011 | Quarter Variance | YTD 2012 | YTD 2011 | YTD Variance | |||||||||||||||||
Palmarejo | $ | 3.75 | $ | (1.16 | ) | 423 | % | $ | (0.12 | ) | $ | (0.47 | ) | 74 | % | |||||||
San Bartolomé | 12.13 | 9.32 | 30 | % | 11.12 | 9.07 | 23 | % | ||||||||||||||
Rochester | 9.58 | 36.71 | (74 | %) | 12.75 | 17.46 | (27 | %) | ||||||||||||||
Martha | 48.12 | 39.31 | 22 | % | 49.82 | 32.48 | 53 | % | ||||||||||||||
Endeavor | 15.97 | 22.26 | (28 | %) | 16.82 | 19.79 | (15 | %) | ||||||||||||||
Total | $ | 9.05 | $ | 7.57 | 20 | % | $ | 7.19 | $ | 6.36 | 13 | % | ||||||||||
Kensington | $ | 1,298 | $ | 973 | 33 | % | $ | 1,515 | $ | 961 | 58 | % | ||||||||||
*Additional operating statistics can be found in the tables in the appendix.
Palmarejo, Mexico - Reduced Underground Mining Rate Impacts Production
• | Third quarter production at Palmarejo was 1.8 million ounces of silver and 23,702 ounces of gold, down 23% and 24%, respectively, compared to the second quarter. |
• | Reduced production rates were due to unfavorable underground conditions in a high-grade area of the underground mine, which required additional ground support and resulted in slower advances. The mine also experienced lower ore grade from a transition of mining to the next push back in the open pit operation. |
• | Lower grade ore from surface operations, a 32% increase in tons milled from third quarter 2011 and a record silver recovery rate of 90.0% partially offset the decreased underground production rates. |
• | Higher cash operating costs1 of $3.75 per silver ounce in the third quarter were primarily due to lower production and temporarily higher mining costs for additional ground support, maintenance, and waste haulage in the open pit. |
• | Sales and operating cash flow1 totaled $102.6 million and $54.9 million, respectively, in the third quarter. Capital expenditures were $11.3 million. |
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
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San Bartolomé, Bolivia - Consistent Production
• | Silver production was 1.5 million ounces in the third quarter, consistent with second quarter production. |
• | Cash operating costs1 were $12.13 per silver ounce compared to $11.05 per silver ounce in the prior quarter, primarily due to lower mill production rates from unplanned mill downtime from power interruptions in August. |
• | Optimization of the process circuit has led to a higher recovery rate of 90% year-to-date. |
• | Sales and operating cash flow1 totaled $46.2 million and $11.2 million, respectively, in the third quarter. Capital expenditures were $4.4 million. |
Rochester, Nevada - Strong Third Quarter Gearing for Best Quarter to Come
• | Production increased to 819,349 ounces of silver and 10,599 ounces of gold in the third quarter, 15% and 5% higher than the second quarter, respectively. |
• | Cash operating costs1 of $9.58 per silver ounce in the third quarter were slightly lower than the second quarter. |
• | Metal sales totaled $36.2 million in the third quarter. Third quarter operating cash flow1 totaled $13.0 million. Capital expenditures were $4.8 million. |
Kensington, Alaska - Production Continues to Rise
• | Third quarter production at Kensington was 24,391 ounces of gold, a 13% increase over the second quarter. |
• | Continuous improvements at the mill resulted in a 95.9% recovery rate compared to 94.2% in the second quarter 2012. |
• | Cash operating costs1 per gold ounce declined 4% from the second quarter to $1,298 in the third quarter. Cash operating costs1 are expected to decline to less than $950 per gold ounce in 2013 as a result of higher production rates, reduced contractor-related costs and lower rental equipment expenses. |
• | Sales totaled $36.5 million and operating cash flow1 totaled $7.3 million in the third quarter. Capital expenditures were $9.0 million. |
Exploration Highlights
During the third quarter, the Company invested $7.0 million in expensed exploration and $1.6 million in capitalized exploration, completing 147,023 feet (44,813 meters) of drilling and trenching in its global exploration program.
Palmarejo
The Company invested $3.7 million in exploration at Palmarejo and completed 75,814 feet (23,108 meters) of core drilling in the third quarter. Encouraging results were obtained from underground drilling at Rosario and the Inter-Clavos zone (a new target between the Rosario and 76 zones). Results range from narrow, high-grade intervals such as 0.5 meter true width grading 2,600 grams per tonne silver and 30.5 grams per tonne gold, to much wider intervals such as 15.5 meters true width grading 74.6 grams per tonne silver and 1.2 grams per tonne gold. Favorable in-fill drilling results were received from Guadalupe Norte, notably 15.0 meters true width of 304 grams per tonne silver and 2.76 grams per tonne gold. Drilling also commenced at La Union, a new target located southeast of the Chapotillo surface mine, where wide zones of alteration and veining occur near surface in association with the projection of the main ore-bearing structure in Chapotillo.
San Bartolomé
Trenching recommenced late in the quarter on a new target, Pucka Loma, which is about 150 feet (500 meters) west of the Company's existing reserves and covers an area approximately 100 feet, east-west (350 meters) by 275 feet (900 meters) north-south. Assay results from these trench samples yielded silver values averaging 113 grams per tonne (3.3 ounces per ton) over an average of 13.1 feet (4 meters) deep. Thirty-seven shallow trenches were excavated and sampled. Sampling will continue during the fourth quarter 2012.
Rochester
A total of 33,056 feet (10,075 meters) of drilling in 132 reverse circulation holes and 11 sonic twin holes were completed
in the third quarter at various historic stockpiles. Favorable silver and gold grade intercepts in drill assays, including
assays at higher than the current average reserve grade, allowed mining and placement of 350,000 tons of stockpile
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
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material on the Rochester leach pads in September 2012. These positive results will also be used to update the estimate of mineral resources and reserves at year-end 2012.
Kensington
Drilling at Kensington focused on new targets around the main mine. Encouraging results were obtained from Kensington South and Elmira. Hole KX12-003 at Kensington South cut 10 feet of mineralization grading 1.72 ounces per ton. This drill intercept is situated about 750 feet south of the current Kensington mine and over 500 feet deeper on the south-striking mine trend.
2012 Outlook
The Company has updated its full-year production guidance to 18.5 - 19.0 million ounces of silver and 215,000 - 225,000 ounces of gold.
Cash operating costs1 per silver ounce for 2012 are expected to be approximately $7.50. Cash operating costs1 per gold ounce at Kensington are expected to be approximately $1,350 for 2012, declining to less than $950 per ounce in 2013.
Table 5: 2012 Production Outlook
(silver ounces in thousands) | Country | Silver | Gold |
Palmarejo | Mexico | 8,400-8,600 | 100,000-105,000 |
San Bartolomé | Bolivia | 6,200-6,300 | — |
Rochester | Nevada, USA | 2,900-3,000 | 32,000-35,000 |
Martha1 | Argentina | 323 | 257 |
Endeavor | Australia | 700-750 | — |
Kensington | Alaska, USA | — | 82,750-84,750 |
Total | 18,500-19,000 | 215,000-225,000 | |
1. Actual production for Martha, which ceased production in September 2012.
# # #
1. | EBITDA, operating cash flow, adjusted earnings and cash operating costs are non-GAAP measures. Please see tables in the Appendix for reconciliation to U.S. GAAP. Total debt includes short and long-term indebtedness and excludes capital leases and royalty obligations. |
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Conference Call Information
Coeur will hold a conference call to discuss the Company's third quarter 2012 results at 2 p.m. Eastern time on November 6, 2012.
Dial-In Numbers: (877) 464-2820 (U.S. and Canada)
(660) 422-4718 (International)
Conference ID: 3832 1596
The conference call and presentation will also be webcast on the Company's website at www.coeur.com. A replay of the call will be available through November 20, 2012.
Replay number: (855) 859-2056 (U.S. and Canada)
International replay: (404) 537-3406 (International)
Conference ID: 3832 1596
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 operating results, production levels and operating costs. 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 risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays and disputed mining claims, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of gold and silver ore reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves, 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, 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, and the Canadian securities regulators, including, without limitation, Coeur's most recent reports on Form 10-K and 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. Current mineralized material estimates include disputed and undisputed claims at Rochester. While the Company believes it holds a superior position in the ongoing claim dispute, the Company believes an adverse legal outcome would cause it to modify mineralized material estimates. 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.
Donald J. Birak, Coeur's Senior Vice President of Exploration and a qualified person under Canadian National Instrument 43-101, supervised the preparation of 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, please see the Technical Reports for each of Coeur's properties as filed on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors-The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and
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legally extract or produce. We may use certain terms in public disclosures, such as "measured," "indicated," "inferred” and “resources," that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov.
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 cash operating costs, operating cash flow, adjusted earnings, and EBITDA. 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 cash operating costs, operating cash flow, adjusted earnings and EBITDA are important measures in assessing the Company's overall financial performance.
About Coeur
Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company built and commenced production from three wholly-owned, long-lived mines between 2008 and 2010: the San Bartolomé silver mine in Bolivia, the Palmarejo silver-gold mine in Mexico and the Kensington gold mine in Alaska. Further production has commenced from a new heap leach pad at Coeur's long-time Rochester silver-gold mine in Nevada. The Company also owns a non-operating interest in a silver-base metal mine in Australia. Coeur conducts ongoing exploration activities near and within its properties in Argentina, Mexico, Alaska, Nevada and Bolivia. In addition, Coeur owns strategic minority shareholdings in eight silver and gold development companies in North and South America.
For Additional Information:
Wendy Yang, Vice President of Investor Relations
(208) 665-0345
Stefany Bales, Director of Corporate Communications
(208) 667-8263
www.coeur.com
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Table 6: Operating Statistics from Continuing Operations:
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Silver Operations: | |||||||||||||||
Palmarejo | |||||||||||||||
Tons milled | 532,775 | 403,978 | 1,551,242 | 1,217,437 | |||||||||||
Ore grade/Ag oz | 3.82 | 7.34 | 5.21 | 6.88 | |||||||||||
Ore grade/Au oz | 0.04 | 0.08 | 0.06 | 0.08 | |||||||||||
Recovery/Ag oz(1) | 90.0 | % | 75.9 | % | 82.7 | % | 75.8 | % | |||||||
Recovery/Au oz(1) | 102.5 | % | 93.6 | % | 95.1 | % | 92.2 | % | |||||||
Silver production ounces | 1,833,109 | 2,250,818 | 6,681,407 | 6,351,120 | |||||||||||
Gold production ounces | 23,702 | 29,815 | 86,040 | 90,963 | |||||||||||
Cash operating cost/oz | $ | 3.75 | $ | (1.16 | ) | $ | (0.12 | ) | $ | (0.47 | ) | ||||
Cash cost/oz | $ | 3.75 | $ | (1.16 | ) | $ | (0.12 | ) | $ | (0.47 | ) | ||||
Total production cost/oz | $ | 22.53 | $ | 17.33 | $ | 17.14 | $ | 18.07 | |||||||
San Bartolomé | |||||||||||||||
Tons milled | 344,349 | 428,978 | 1,113,458 | 1,195,286 | |||||||||||
Ore grade/Ag oz | 4.91 | 5.40 | 4.58 | 5.21 | |||||||||||
Recovery/Ag oz(1) | 90.3 | % | 88.6 | % | 90.0 | % | 88.3 | % | |||||||
Silver production ounces | 1,525,725 | 2,051,426 | 4,587,359 | 5,503,951 | |||||||||||
Cash operating cost/oz | $ | 12.13 | $ | 9.32 | $ | 11.12 | $ | 9.07 | |||||||
Cash cost/oz | $ | 13.36 | $ | 10.89 | $ | 12.29 | $ | 10.58 | |||||||
Total production cost/oz | $ | 16.56 | $ | 13.90 | $ | 15.14 | $ | 13.61 | |||||||
Martha | |||||||||||||||
Tons milled | 27,281 | 24,086 | 100,548 | 64,025 | |||||||||||
Ore grade/Ag oz | 4.17 | 5.33 | 4.01 | 7.24 | |||||||||||
Ore grade/Au oz | 0.003 | 0.01 | 0.004 | 0.01 | |||||||||||
Recovery/Ag oz(1) | 81.5 | % | 92.3 | % | 80.3 | % | 86.2 | % | |||||||
Recovery/Au oz(1) | 82.6 | % | 72.9 | % | 72.2 | % | 74.0 | % | |||||||
Silver production ounces | 92,698 | 118,523 | 323,286 | 399,630 | |||||||||||
Gold production ounces | 76 | 115 | 257 | 471 | |||||||||||
Cash operating cost/oz | $ | 48.12 | $ | 39.31 | $ | 49.82 | $ | 32.48 | |||||||
Cash cost/oz | $ | 49.20 | $ | 41.29 | $ | 50.76 | $ | 33.95 | |||||||
Total production cost/oz | $ | 58.52 | $ | 45.73 | $ | 57.25 | $ | 35.31 | |||||||
Rochester (A) | |||||||||||||||
Tons milled | 2,361,951 | 607,031 | 6,640,365 | 607,031 | |||||||||||
Ore grade/Ag oz | 0.52 | 0.34 | 0.56 | 0.34 | |||||||||||
Ore grade/Au oz | 0.004 | 0.007 | 0.005 | 0.007 | |||||||||||
Recovery/Ag oz(2) | 67.0 | % | 168.3 | % | 52.6 | % | 487.5 | % | |||||||
Recovery/Au oz(2) | 102.4 | % | 35.8 | % | 84.1 | % | 106.8 | % | |||||||
Silver production ounces | 819,349 | 351,717 | 1,973,392 | 1,018,844 | |||||||||||
Gold production ounces | 10,599 | 1,435 | 26,012 | 4,283 | |||||||||||
Cash operating cost/oz | $ | 9.58 | $ | 36.71 | $ | 12.75 | $ | 17.46 | |||||||
Cash cost/oz | $ | 11.34 | $ | 39.80 | $ | 14.38 | $ | 19.87 | |||||||
Total production cost/oz | $ | 13.96 | $ | 41.72 | $ | 17.50 | $ | 21.75 | |||||||
1. | Recoveries are affected by timing inherent in the leaching process. |
2. | Recoveries at Rochester are affected by residual leaching on Stage IV pad and timing differences inherent in the heap leaching process. |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Endeavor | |||||||||||||||
Tons milled | 205,096 | 182,226 | 601,999 | 556,901 | |||||||||||
Ore grade/Ag oz | 1.22 | 1.43 | 2.61 | 1.97 | |||||||||||
Recovery/Ag oz(1) | 56.0 | % | 53.0 | % | 40.0 | % | 45.8 | % | |||||||
Silver production ounces | 140,267 | 137,843 | 628,393 | 501,638 | |||||||||||
Cash operating cost/oz | $ | 15.97 | $ | 22.26 | $ | 16.82 | $ | 0.02 | |||||||
Cash cost/oz | $ | 15.97 | $ | 22.26 | $ | 16.82 | $ | 0.02 | |||||||
Total production cost/oz | $ | 22.37 | $ | 28.88 | $ | 23.40 | $ | 24.57 | |||||||
Gold Operation: | |||||||||||||||
Kensington(B) | |||||||||||||||
Tons milled | 123,428 | 116,255 | 265,158 | 343,640 | |||||||||||
Ore grade/Au oz | 0.21 | 0.24 | 0.21 | 0.24 | |||||||||||
Recovery/Au oz(1) | 95.9 | % | 91.7 | % | 94.9 | % | 92.3 | % | |||||||
Gold production ounces | 24,391 | 25,687 | 53,407 | 75,121 | |||||||||||
Cash operating cost/oz | $ | 1,298 | $ | 973 | $ | 1,515 | $ | 961 | |||||||
Cash cost/oz | $ | 1,298 | $ | 973 | $ | 1,515 | $ | 961 | |||||||
Total production cost/oz | $ | 1,770 | $ | 1,346 | $ | 2,037 | $ | 1,345 | |||||||
CONSOLIDATED PRODUCTION TOTALS (B) | |||||||||||||||
Total silver ounces | 4,411,148 | 4,910,326 | 14,193,197 | 13,775,183 | |||||||||||
Total gold ounces | 58,768 | 57,052 | 165,716 | 170,838 | |||||||||||
Silver Operations:(C) | |||||||||||||||
Cash operating cost per oz - silver | $ | 9.05 | $ | 7.57 | $ | 7.19 | $ | 6.36 | |||||||
Cash cost per oz - silver | $ | 9.83 | $ | 8.49 | $ | 7.82 | $ | 7.18 | |||||||
Total production cost oz - silver | $ | 19.62 | $ | 18.65 | $ | 17.74 | $ | 17.30 | |||||||
Gold Operation:(D) | |||||||||||||||
Cash operating cost per oz - gold | $ | 1,298 | $ | 973 | $ | 1,515 | $ | 961 | |||||||
Cash cost per oz - gold | $ | 1,298 | $ | 973 | $ | 1,515 | $ | 961 | |||||||
Total production cost per oz - gold | $ | 1,770 | $ | 1,346 | $ | 2,037 | $ | 1,345 | |||||||
CONSOLIDATED SALES TOTALS (E) | |||||||||||||||
Silver ounces sold | 4,520,500 | 6,200,397 | 14,412,503 | 13,922,833 | |||||||||||
Gold ounces sold | 59,156 | 67,391 | 157,621 | 183,243 | |||||||||||
Realized price per silver ounce | $ | 30.09 | $ | 38.28 | $ | 30.52 | $ | 36.69 | |||||||
Realized price per gold ounce | $ | 1,654 | $ | 1,681 | $ | 1,649 | $ | 1,523 | |||||||
(A) | The Rochester mine recommenced production in the fourth quarter of 2011. The leach cycle at Rochester requires five to ten years to recover gold and silver contained in the ore. The Company estimates the ultimate recovery to be approximately 61% for silver and 92% for gold. However, ultimate recoveries will not be known until leaching operations cease, which is currently estimated for 2017. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates – Ore on Leach Pad in the Company’s Form 10-K for the year ended December 31, 2011. |
(B) | Current production ounces and recoveries reflect final metal settlements of previously reported production ounces. |
(C) | Amount includes by-product gold credits deducted in computing cash costs per ounce. |
(D) | Amounts reflect Kensington per ounce statistics only. |
(E) | Units sold at realized metal prices will not match reported metal sales due primarily to the effects on revenues of mark-to-market adjustments on embedded derivatives in the Company’s provisionally priced sales contracts. |
9
Table 7:
COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2012 | December 31, 2011 | |||||||
ASSETS | (In thousands, except share data) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 142,915 | $ | 175,012 | ||||
Short term investments | 657 | 20,254 | ||||||
Receivables | 70,963 | 83,497 | ||||||
Ore on leach pad | 30,394 | 27,252 | ||||||
Metal and other inventory | 156,130 | 132,781 | ||||||
Deferred tax assets | 2,090 | 1,869 | ||||||
Restricted assets | 396 | 60 | ||||||
Prepaid expenses and other | 25,460 | 24,218 | ||||||
429,005 | 464,943 | |||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment, net | 691,219 | 687,676 | ||||||
Mining properties, net | 1,923,251 | 2,001,027 | ||||||
Ore on leach pad, non-current portion | 15,575 | 6,679 | ||||||
Restricted assets | 24,790 | 28,911 | ||||||
Marketable securities | 31,243 | 19,844 | ||||||
Receivables, non-current portion | 48,614 | 40,314 | ||||||
Debt issuance costs, net | 4,056 | 1,889 | ||||||
Deferred tax assets | 68 | 263 | ||||||
Other | 12,619 | 12,895 | ||||||
TOTAL ASSETS | $ | 3,180,440 | $ | 3,264,441 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 68,709 | $ | 78,590 | ||||
Accrued liabilities and other | 7,160 | 13,126 | ||||||
Accrued income taxes | 28,659 | 47,803 | ||||||
Accrued payroll and related benefits | 22,892 | 16,240 | ||||||
Accrued interest payable | 125 | 559 | ||||||
Current portion of debt and capital leases | 56,340 | 32,602 | ||||||
Current portion of royalty obligation | 69,959 | 61,721 | ||||||
Current portion of reclamation and mine closure | 3,372 | 1,387 | ||||||
Deferred tax liabilities | 53 | 53 | ||||||
257,269 | 252,081 | |||||||
NON-CURRENT LIABILITIES | ||||||||
Long-term debt and capital leases | 5,053 | 115,861 | ||||||
Non-current portion of royalty obligation | 164,272 | 169,788 | ||||||
Reclamation and mine closure | 32,636 | 32,371 | ||||||
Deferred tax liabilities | 540,023 | 527,573 | ||||||
Other long-term liabilities | 37,888 | 30,046 | ||||||
779,872 | 875,639 | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, par value $0.01 per share; authorized 150,000,000 shares, issued and outstanding 89,446,482 at September 30, 2012 and 89,655,124 at December 31, 2011 | 894 | 897 | ||||||
Additional paid-in capital | 2,579,707 | 2,585,632 | ||||||
Accumulated deficit | (433,706 | ) | (444,833 | ) | ||||
Accumulated other comprehensive loss | (3,596 | ) | (4,975 | ) | ||||
2,143,299 | 2,136,721 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,180,440 | $ | 3,264,441 | ||||
10
Table 8:
COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands, except share data) | |||||||||||||||
Sales of metal | $ | 230,593 | $ | 343,575 | $ | 689,563 | $ | 774,289 | |||||||
Production costs applicable to sales | (124,967 | ) | (141,253 | ) | (349,344 | ) | (310,829 | ) | |||||||
Depreciation, depletion and amortization | (52,844 | ) | (58,652 | ) | (166,460 | ) | (166,334 | ) | |||||||
Gross profit | 52,782 | 143,670 | 173,759 | 297,126 | |||||||||||
COSTS AND EXPENSES | |||||||||||||||
Administrative and general | 10,266 | 8,236 | 26,456 | 22,294 | |||||||||||
Exploration | 6,957 | 4,772 | 19,829 | 11,611 | |||||||||||
Loss on impairment and other | 1,293 | — | 6,106 | — | |||||||||||
Pre-development, care, maintenance and other | 277 | 3,271 | 1,618 | 17,949 | |||||||||||
Total cost and expenses | 18,793 | 16,279 | 54,009 | 51,854 | |||||||||||
OPERATING INCOME | 33,989 | 127,391 | 119,750 | 245,272 | |||||||||||
OTHER INCOME AND EXPENSE | |||||||||||||||
Loss on debt extinguishments | — | (784 | ) | — | (1,640 | ) | |||||||||
Fair value adjustments, net | (37,648 | ) | (53,351 | ) | (44,722 | ) | (71,051 | ) | |||||||
Interest income and other, net | 12,664 | (6,610 | ) | 14,450 | (1,946 | ) | |||||||||
Interest expense, net of capitalized interest | (7,351 | ) | (7,980 | ) | (21,578 | ) | (26,553 | ) | |||||||
Total other income and expense, net | (32,335 | ) | (68,725 | ) | (51,850 | ) | (101,190 | ) | |||||||
Income before income taxes | 1,654 | 58,666 | 67,900 | 144,082 | |||||||||||
Income tax provision | (17,475 | ) | (27,606 | ) | (56,773 | ) | (61,947 | ) | |||||||
NET INCOME (LOSS) | $ | (15,821 | ) | $ | 31,060 | $ | 11,127 | $ | 82,135 | ||||||
BASIC AND DILUTED INCOME (LOSS) PER SHARE | |||||||||||||||
Basic income per share: | |||||||||||||||
Net income (loss) | $ | (0.18 | ) | $ | 0.35 | $ | 0.12 | $ | 0.92 | ||||||
Diluted income per share: | |||||||||||||||
Net income (loss) | $ | (0.18 | ) | $ | 0.35 | $ | 0.12 | $ | 0.92 | ||||||
Weighted average number of shares of common stock | |||||||||||||||
Basic | 89,429 | 89,449 | 89,550 | 89,350 | |||||||||||
Diluted | 89,429 | 89,739 | 89,690 | 89,702 | |||||||||||
11
Table 9:
COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
Net income (loss) | $ | (15,821 | ) | $ | 31,060 | $ | 11,127 | $ | 82,135 | ||||||
Add (deduct) non-cash items | |||||||||||||||
Depreciation, depletion and amortization | 52,844 | 58,652 | 166,460 | 166,334 | |||||||||||
Accretion of discount on debt and other assets, net | 585 | 516 | 1,683 | 1,460 | |||||||||||
Accretion of royalty obligation | 4,276 | 4,990 | 14,348 | 16,027 | |||||||||||
Deferred income taxes | (4,944 | ) | 3,084 | 12,425 | 13,177 | ||||||||||
Loss on debt extinguishment | — | 784 | — | 1,640 | |||||||||||
Fair value adjustments, net | 35,270 | 50,767 | 39,288 | 71,360 | |||||||||||
Gain (loss) on foreign currency transactions | (1,577 | ) | 137 | (1,208 | ) | (600 | ) | ||||||||
Share-based compensation | 3,364 | 457 | 6,534 | 5,261 | |||||||||||
(Gain) loss on sale of assets | 108 | 4 | 372 | (1,220 | ) | ||||||||||
Loss on impairment | 1,848 | — | 6,621 | — | |||||||||||
Other non-cash charges | 1,331 | 506 | 1,838 | 1,337 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | (5,648 | ) | (10,513 | ) | 1,717 | (23,492 | ) | ||||||||
Prepaid expenses and other | (2,481 | ) | (8,697 | ) | (564 | ) | (7,362 | ) | |||||||
Inventories | (13,762 | ) | 23,234 | (35,387 | ) | (12,834 | ) | ||||||||
Accounts payable and accrued liabilities | 24,342 | 26,930 | (15,313 | ) | 15,538 | ||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 79,735 | 181,911 | 209,941 | 328,761 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Purchase of short term investments and marketable securities | (4,093 | ) | (8,804 | ) | (11,959 | ) | (21,914 | ) | |||||||
Proceeds from sales and maturities of short term investments | 337 | 495 | 21,038 | 3,855 | |||||||||||
Capital expenditures | (29,972 | ) | (38,099 | ) | (93,857 | ) | (79,780 | ) | |||||||
Other | 479 | 1,397 | 1,659 | 1,670 | |||||||||||
CASH USED IN INVESTING ACTIVITIES | (33,249 | ) | (45,011 | ) | (83,119 | ) | (96,169 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
Proceeds from issuance of notes and bank borrowings | — | — | — | 27,500 | |||||||||||
Payments on long-term debt, capital leases, and associated costs | (80,318 | ) | (16,405 | ) | (94,562 | ) | (51,640 | ) | |||||||
Payments on gold production royalty | (17,458 | ) | (19,510 | ) | (58,119 | ) | (51,569 | ) | |||||||
Payments on gold lease facility | — | — | — | (13,800 | ) | ||||||||||
Reductions of (additions to) restricted assets associated with the Kensington Term Facility | 4,645 | — | 4,645 | (1,325 | ) | ||||||||||
Share repurchases | (9,971 | ) | — | (9,971 | ) | — | |||||||||
Other | 134 | 67 | (912 | ) | 6 | ||||||||||
CASH USED IN FINANCING ACTIVITIES | (102,968 | ) | (35,848 | ) | (158,919 | ) | (90,828 | ) | |||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (56,482 | ) | 101,052 | (32,097 | ) | 141,764 | |||||||||
Cash and cash equivalents at beginning of period | 199,397 | 106,830 | 175,012 | 66,118 | |||||||||||
Cash and cash equivalents at end of period | $ | 142,915 | $ | 207,882 | $ | 142,915 | $ | 207,882 | |||||||
12
Table 10:
Operating Cash Flow Reconciliation
(in thousands) | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by operating activities | $ | 79,735 | $ | 113,203 | $ | 17,002 | $ | 87,412 | $ | 181,911 | |||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | 5,648 | (10,319 | ) | 2,956 | (8,904 | ) | 10,513 | ||||||||
Prepaid expenses and other | 2,481 | 2,857 | (4,774 | ) | 8,839 | 8,697 | |||||||||
Inventories | 13,762 | (3,097 | ) | 24,722 | 17,574 | (23,234 | ) | ||||||||
Accounts payable and accrued liabilities | (24,342 | ) | (14,276 | ) | 53,929 | (7,452 | ) | (26,930 | ) | ||||||
Operating Cash Flow | $ | 77,284 | $ | 88,368 | $ | 93,835 | $ | 97,469 | $ | 150,957 | |||||
Table 11:
EBITDA Reconciliation
(in thousands) | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Net income (loss) | $ | (15,821 | ) | $ | 22,973 | $ | 3,975 | $ | 11,364 | $ | 31,060 | ||||
Income tax provision | 17,475 | 23,862 | 15,436 | 52,390 | 27,606 | ||||||||||
Interest expense, net of capitalized interest | 7,351 | 7,557 | 6,670 | 8,222 | 7,980 | ||||||||||
Interest and other income | (12,664 | ) | 3,221 | (5,007 | ) | 4,697 | 6,610 | ||||||||
Fair value adjustments, net | 37,648 | (16,039 | ) | 23,113 | (19,035 | ) | 53,351 | ||||||||
Loss on debt extinguishments | — | — | — | 3,886 | 784 | ||||||||||
Depreciation and depletion | 52,844 | 61,024 | 52,592 | 58,166 | 58,652 | ||||||||||
EBITDA | $ | 86,833 | $ | 102,598 | $ | 96,779 | $ | 119,690 | $ | 186,043 | |||||
Table 12:
Adjusted Earnings Reconciliation
(in thousands) | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Net income (loss) | $ | (15,821 | ) | $ | 22,973 | $ | 3,975 | $ | 11,364 | $ | 31,060 | ||||
Share Based Compensation | 3,364 | 1,033 | 2,137 | 2,861 | 457 | ||||||||||
Deferred income tax provision | (4,944 | ) | 9,690 | 7,677 | 38,614 | 3,110 | |||||||||
Interest expense, accretion of royalty obligation | 4,276 | 5,492 | 4,580 | 5,523 | 4,990 | ||||||||||
Fair value adjustments, net | 37,648 | (16,039 | ) | 23,113 | (19,035 | ) | 53,351 | ||||||||
Loss on impairment | 1,293 | 4,813 | — | — | — | ||||||||||
Gain on debt extinguishments | — | — | — | 3,886 | 784 | ||||||||||
Adjusted Earnings (Loss) | $ | 25,816 | $ | 27,962 | $ | 41,482 | $ | 43,213 | $ | 93,752 | |||||
Table 13:
Operating Cash Flow Reconciliation - YTD
(in thousands) | YTD 2012 | YTD 2011 | ||||
Cash provided by operating activities | $ | 209,941 | $ | 328,761 | ||
Changes in operating assets and liabilities: | ||||||
Receivables and other current assets | (1,717 | ) | 23,492 | |||
Prepaid expenses and other | 564 | 7,362 | ||||
Inventories | 35,387 | 12,834 | ||||
Accounts payable and accrued liabilities | 15,313 | (15,538 | ) | |||
Operating Cash Flow | $ | 259,488 | $ | 356,911 | ||
13
Table 14:
EBITDA Reconciliation - YTD
(in thousands) | YTD 2012 | YTD 2011 | ||||
Net income (loss) | $ | 11,127 | $ | 82,135 | ||
Income tax provision | 56,773 | 61,947 | ||||
Interest expense, net of capitalized interest | 21,578 | 26,552 | ||||
Interest and other income | (14,450 | ) | 1,913 | |||
Fair value adjustments, net | 44,722 | 71,051 | ||||
Loss on debt extinguishments | — | 1,640 | ||||
Depreciation and depletion | 166,460 | 166,334 | ||||
EBITDA | $ | 286,210 | $ | 411,572 | ||
Table 15:
Adjusted Earnings Reconciliation - YTD
(in thousands) | YTD 2012 | YTD 2011 | ||||
Net income (loss) | $ | 11,127 | $ | 82,135 | ||
Share Based Compensation | 6,534 | 5,261 | ||||
Deferred income tax provision | 12,425 | 13,178 | ||||
Interest expense, accretion of royalty obligation | 14,348 | 16,027 | ||||
Fair value adjustments, net | 44,722 | 71,051 | ||||
Loss on impairment | 6,106 | — | ||||
Gain on debt extinguishments | — | 1,640 | ||||
Adjusted Earnings (Loss) | $ | 95,262 | $ | 189,292 | ||
14
Table 16:
Results of Operations by Mine - Palmarejo
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 |
Sales of metal | $102.6 | $136.4 | $123.7 | $134.3 | $166.9 |
Production costs | $48.7 | $62.5 | $45.9 | $47.0 | $64.1 |
EBITDA | $51.6 | $72.3 | $76.5 | $83.7 | $100.4 |
Operating income | $17.7 | $29.5 | $38.8 | $38.7 | $61.6 |
Operating cash flow | $54.9 | $63.6 | $81.4 | $77.4 | $91.2 |
Capital expenditures | $11.3 | $11.2 | $7.2 | $12.1 | $9.5 |
Gross profit | $20.0 | $31.1 | $40.1 | $44.7 | $61.6 |
Gross margin | 19.5% | 22.8% | 32.4% | 33.3% | 36.9% |
3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | |
Underground Operations: | |||||
Tons mined | 143,747 | 162,820 | 158,030 | 191,966 | 143,010 |
Average silver grade (oz/t) | 6.13 | 8.91 | 7.82 | 8.04 | 9.36 |
Average gold grade (oz/t) | 0.09 | 0.14 | 0.11 | 0.11 | 0.13 |
Surface Operations: | |||||
Tons mined | 424,380 | 321,758 | 347,609 | 321,881 | 260,618 |
Average silver grade (oz/t) | 2.79 | 4.14 | 5.32 | 5.88 | 6.56 |
Average gold grade (oz/t) | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 |
Processing: | |||||
Total tons milled | 532,775 | 489,924 | 528,543 | 505,619 | 403,978 |
Average recovery rate – Ag | 90.0% | 84.2% | 76.8% | 77.9% | 75.9% |
Average recovery rate – Au | 102.5% | 92.0% | 93.3% | 92.4% | 93.6% |
Silver production - oz (000's) | 1,833 | 2,365 | 2,483 | 2,690 | 2,251 |
Gold production - oz | 23,702 | 31,258 | 31,081 | 34,108 | 29,815 |
Cash operating costs/Ag Oz | $3.75 | $(0.85) | $(2.27) | $(2.13) | $(1.16) |
Table 17:
Reconciliation of EBITDA for Palmarejo
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Sales of metal | $ | 102.6 | $ | 136.4 | $ | 123.7 | $ | 134.3 | $ | 166.9 | |||||
Production costs applicable to sales | $ | (48.7 | ) | $ | (62.5 | ) | (45.9 | ) | (47.0 | ) | (64.1 | ) | |||
Administrative and general | $ | — | $ | — | — | — | — | ||||||||
Exploration | $ | (2.3 | ) | $ | (1.6 | ) | (1.3 | ) | (2.8 | ) | (2.2 | ) | |||
Care and maintenance and other | $ | — | $ | — | — | (0.8 | ) | (0.2 | ) | ||||||
Pre-development | $ | — | $ | — | — | — | — | ||||||||
EBITDA | $ | 51.6 | $ | 72.3 | $ | 76.5 | $ | 83.7 | $ | 100.4 | |||||
15
Table 18:
Operating Cash Flow for Palmarejo
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by operating activities | $ | 58.2 | $ | 90.5 | $ | 65.3 | $ | 70.9 | $ | 104.7 | |||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | $ | (4.1 | ) | $ | (12.5 | ) | 5.4 | 5.7 | (0.8 | ) | |||||
Prepaid expenses and other | $ | (0.8 | ) | $ | 0.5 | (1.9 | ) | (3.2 | ) | 3.4 | |||||
Inventories | $ | 2.5 | $ | (11.5 | ) | 4.6 | 9.9 | (16.2 | ) | ||||||
Accounts payable and accrued liabilities | $ | (0.9 | ) | $ | (3.4 | ) | 8.0 | (5.9 | ) | 0.1 | |||||
Operating Cash Flow | $ | 54.9 | $ | 63.6 | $ | 81.4 | $ | 77.4 | $ | 91.2 | |||||
Table 19:
Results of Operations by Mine - San Bartolomé
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 |
Sales of metal | $46.2 | $53.4 | $41.4 | $62.8 | $102.8 |
Production costs | $19.9 | $22.8 | $13.6 | $21.4 | $30.1 |
EBITDA | $26.2 | $30.5 | $27.7 | $41.2 | $72.5 |
Operating income | $22.0 | $26.6 | $23.5 | $34.9 | $66.7 |
Operating cash flow | $11.2 | $24.8 | $20.8 | $28.7 | $49.6 |
Capital expenditures | $4.4 | $7.8 | $10.2 | $6.5 | $4.4 |
Gross profit | $22.1 | $26.5 | $23.5 | $35.3 | $66.7 |
Gross margin | 47.8% | 49.6% | 56.8% | 56.2% | 64.9% |
3Q 2012 | 1Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | |
Tons milled | 344,349 | 391,005 | 378,104 | 371,983 | 428,978 |
Average silver grade (oz/t) | 4.9 | 4.3 | 4.6 | 5.4 | 5.4 |
Average recovery rate | 90.3% | 88.3% | 91.2% | 90.5% | 88.6% |
Silver production (000's) | 1,526 | 1,470 | 1,591 | 1,997 | 2,051 |
Cash operating costs/Ag Oz | $12.13 | $11.05 | $10.21 | $9.18 | $9.32 |
Table 20:
Reconciliation of EBITDA for San Bartolomé
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Sales of metal | $ | 46.2 | $ | 53.4 | $ | 41.4 | $ | 62.8 | $ | 102.8 | |||||
Production costs applicable to sales | (19.9 | ) | (22.8 | ) | (13.6 | ) | (21.4 | ) | (30.1 | ) | |||||
Administrative and general | — | — | — | — | — | ||||||||||
Exploration | (0.1 | ) | (0.1 | ) | (0.1 | ) | — | (0.1 | ) | ||||||
Care and maintenance and other | — | — | — | (0.2 | ) | (0.1 | ) | ||||||||
Pre-development | — | — | — | — | — | ||||||||||
EBITDA | $ | 26.2 | $ | 30.5 | $ | 27.7 | $ | 41.2 | $ | 72.5 | |||||
16
Table 21:
Operating Cash Flow for San Bartolomé
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by (used in) operating activities | $ | 19.8 | $ | 31.0 | $ | (27.4 | ) | $ | 22.3 | $ | 78.1 | ||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | $ | 7.1 | $ | (0.7 | ) | 2.2 | 0.2 | 5.0 | |||||||
Prepaid expenses and other | $ | 0.8 | $ | 4.4 | (2.8 | ) | 4.6 | 0.2 | |||||||
Inventories | $ | 5.0 | $ | (3.4 | ) | 4.7 | 2.9 | (7.2 | ) | ||||||
Accounts payable and accrued liabilities | $ | (21.5 | ) | $ | (6.5 | ) | 44.1 | (1.3 | ) | (26.5 | ) | ||||
Operating Cash Flow | $ | 11.2 | $ | 24.8 | $ | 20.8 | $ | 28.7 | $ | 49.6 | |||||
Table 22:
Results of Operations by Mine - Kensington
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 |
Sales of metal | $36.5 | $21.1 | $10.4 | $32.9 | $44.2 |
Production costs | $26.9 | $16.1 | $17.1 | $31.7 | $24.3 |
EBITDA | $8.1 | $4.7 | $(6.9) | $0.5 | $19.6 |
Operating income/(loss) | $(3.5) | $(5.0) | $(13.6) | $(6.6) | $10.3 |
Operating cash flow | $7.3 | $0.6 | $(7.8) | $(4.1) | $14.5 |
Capital expenditures | $9.0 | $9.3 | $10.9 | $12.0 | $9.2 |
Gross profit/(loss) | $(1.9) | $(4.7) | $(13.3) | $(5.7) | $10.3 |
Gross margin | (5.2)% | (22.3)% | (127.9)% | (17.3)% | 23.3% |
3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | |
Tons mined | 113,770 | 84,632 | 56,815 | 68,831 | 92,783 |
Tons milled | 123,428 | 97,794 | 43,936 | 71,700 | 116,255 |
Average gold grade (oz/t) | 0.21 | 0.23 | 0.18 | 0.19 | 0.24 |
Average recovery rate | 95.9% | 94.2% | 93.4% | 96.5% | 91.7% |
Gold production | 24,391 | 21,572 | 7,444 | 13,299 | 25,687 |
Cash operating costs/Ag Oz | $1,298 | $1,348 | $2,709 | $1,807 | $973 |
Table 23:
Reconciliation of EBITDA for Kensington
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Sales of metal | $ | 36.5 | $ | 21.1 | $ | 10.4 | $ | 32.9 | $ | 44.2 | |||||
Production costs applicable to sales | (26.9 | ) | (16.1 | ) | (17.1 | ) | (31.7 | ) | (24.3 | ) | |||||
Administrative and general | — | — | — | — | — | ||||||||||
Exploration | (1.5 | ) | (0.3 | ) | (0.2 | ) | (0.5 | ) | (0.3 | ) | |||||
Care and maintenance and other | — | — | — | (0.2 | ) | — | |||||||||
Pre-development | — | — | — | — | — | ||||||||||
EBITDA | $ | 8.1 | $ | 4.7 | $ | (6.9 | ) | $ | 0.5 | $ | 19.6 | ||||
17
Table 24:
Operating Cash Flow for Kensington
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by operating activities | $ | 5.0 | $ | (12.5 | ) | $ | 1.1 | $ | 9.3 | $ | 8.6 | ||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | $ | 2.3 | $ | 4.6 | (10.3 | ) | (5.1 | ) | 5.0 | ||||||
Prepaid expenses and other | $ | 0.5 | $ | (0.5 | ) | (1.0 | ) | 0.5 | 1.3 | ||||||
Inventories | $ | 1.8 | $ | 9.9 | 3.3 | (10.1 | ) | (1.3 | ) | ||||||
Accounts payable and accrued liabilities | $ | (2.3 | ) | $ | (0.9 | ) | (0.9 | ) | 1.3 | 0.9 | |||||
Operating Cash Flow | $ | 7.3 | $ | 0.6 | $ | (7.8 | ) | $ | (4.1 | ) | $ | 14.5 | |||
Table 25:
Results of Operations by Mine - Rochester
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | |
Sales of metal | $36.2 | $34.2 | $18.8 | $11.1 | $17.5 | |
Production costs | $21.0 | $20.8 | $9.6 | $4.2 | $11.4 | |
EBITDA | $12.9 | $11.6 | $7.2 | $3.2 | $2.7 | |
Operating income | $10.9 | $9.5 | $5.5 | $4.6 | $2.1 | |
Operating cash flow | $13.0 | $11.8 | $7.2 | $3.4 | $2.7 | |
Capital expenditures | $4.8 | $2.9 | $2.6 | $7.7 | $13.6 | |
Gross profit | $13.2 | $11.3 | $7.6 | $5.9 | $5.5 | |
Gross margin | 36.5% | 33.0% | 40.4% | 53.2% | 31.4% | |
3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||
Tons mined | 3,170,129 | 2,585,914 | 2,723,324 | 1,170,397 | 761,845 | |
Average silver grade (oz/t) | 0.52 | 0.63 | 0.55 | 0.54 | n.a. | |
Average gold grade (oz/t) | 0.004 | 0.005 | 0.004 | 0.004 | n.a. | |
Silver production (000's) | 819 | 713 | 441 | 373 | 352 | |
Gold production | 10,599 | 10,120 | 5,292 | 1,993 | 1,435 | |
Cash operating costs/Ag Oz | $9.58 | $9.83 | $23.35 | $37.99 | $36.71 | |
Table 26:
Reconciliation of EBITDA for Rochester
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Sales of metal | $ | 36.2 | $ | 34.2 | $ | 18.8 | $ | 11.1 | $ | 17.5 | |||||
Production costs applicable to sales | (21.0 | ) | (20.8 | ) | (9.6 | ) | (4.2 | ) | (11.4 | ) | |||||
Administrative and general | — | — | — | — | — | ||||||||||
Exploration | (1.2 | ) | (1.1 | ) | (0.7 | ) | (1.5 | ) | (0.2 | ) | |||||
Care and maintenance and other | (1.1 | ) | (0.7 | ) | (1.3 | ) | (2.2 | ) | (3.2 | ) | |||||
Pre-development | — | — | — | — | — | ||||||||||
EBITDA | $ | 12.9 | $ | 11.6 | $ | 7.2 | $ | 3.2 | $ | 2.7 | |||||
18
Table 27:
Operating Cash Flow for Rochester
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by (used in) operating activities | $ | 7.3 | $ | 10.1 | $ | (7.1 | ) | $ | (11.4 | ) | $ | 0.9 | |||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | $ | 0.6 | $ | (0.1 | ) | 0.3 | (0.2 | ) | 0.2 | ||||||
Prepaid expenses and other | $ | 0.2 | $ | (1.0 | ) | 1.4 | 0.7 | 0.7 | |||||||
Inventories | $ | 6.5 | $ | 3.9 | 11.2 | 14.2 | 5.9 | ||||||||
Accounts payable and accrued liabilities | $ | (1.6 | ) | $ | (1.1 | ) | 1.4 | 0.1 | (5.0 | ) | |||||
Operating Cash Flow | $ | 13.0 | $ | 11.8 | $ | 7.2 | $ | 3.4 | $ | 2.7 | |||||
Table 28:
Results of Operations by Mine - Martha
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 |
Sales of metal | $4.9 | $4.1 | $3.6 | $2.8 | $6.0 |
Production costs | $6.5 | $7.1 | $3.7 | $3.9 | $8.1 |
EBITDA | $(2.9) | $(10.6) | $(3.7) | $(3.3) | $(3.8) |
Operating loss | $(4.2) | $(11.3) | $(4.3) | $(3.0) | $(4.0) |
Operating cash flow | $(3.4) | $(5.5) | $(5.1) | $(5.0) | $(1.7) |
Capital expenditures | $— | $0.5 | $0.7 | $1.4 | $1.1 |
Gross loss | $(1.6) | $(3.7) | $(0.7) | $(1.7) | $(2.3) |
Gross margin | (32.7)% | (90.2)% | (19.4)% | (60.7)% | (38.3)% |
3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | |
Total tons milled | 27,281 | 39,199 | 34,069 | 37,141 | 24,086 |
Average silver grade (oz/t) | 4.17 | 3.52 | 4.43 | 4.65 | 5.33 |
Average gold grade (oz/t) | — | — | — | 0.01 | 0.01 |
Average recovery rate – Ag | 81.5% | 78.2% | 81.4% | 75.2% | 92.3% |
Average recovery rate – Au | 82.6% | 72.4% | 64.6% | 74.2% | 72.9% |
Silver production (000's) | 93 | 108 | 123 | 130 | 119 |
Cash operating costs/Ag Oz | $48.12 | $55.07 | $46.48 | $33.75 | $39.31 |
Table 29:
Reconciliation of EBITDA for Martha
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Sales of metal | $ | 4.9 | $ | 4.1 | $ | 3.6 | $ | 2.8 | $ | 6.0 | |||||
Production costs applicable to sales | (6.5 | ) | (7.1 | ) | (3.7 | ) | (3.9 | ) | (8.2 | ) | |||||
Administrative and general | — | — | — | — | — | ||||||||||
Exploration | (1.2 | ) | (2.8 | ) | (3.4 | ) | (2.1 | ) | (1.5 | ) | |||||
Care and maintenance and other | (0.1 | ) | (4.8 | ) | (0.2 | ) | (0.1 | ) | (0.1 | ) | |||||
Pre-development | — | — | — | — | — | ||||||||||
EBITDA | $ | (2.9 | ) | $ | (10.6 | ) | $ | (3.7 | ) | $ | (3.3 | ) | $ | (3.8 | ) |
19
Table 30:
Operating Cash Flow for Martha
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by (used in) operating activities | $ | (3.9 | ) | $ | (3.3 | ) | $ | (7.1 | ) | $ | (3.2 | ) | $ | 0.2 | |
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | (0.9 | ) | (0.6 | ) | 3.5 | (0.9 | ) | 2.3 | |||||||
Prepaid expenses and other | (0.1 | ) | 0.1 | (0.1 | ) | (0.3 | ) | 0.4 | |||||||
Inventories | (1.7 | ) | (2.3 | ) | 0.4 | 0.4 | (3.3 | ) | |||||||
Accounts payable and accrued liabilities | 3.2 | 0.6 | (1.8 | ) | (1.0 | ) | (1.3 | ) | |||||||
Operating Cash Flow | $ | (3.4 | ) | $ | (5.5 | ) | $ | (5.1 | ) | $ | (5.0 | ) | $ | (1.7 | ) |
Table 31:
Results of Operations by Mine - Endeavor
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 |
Sales of metal | $4.1 | $5.2 | $6.7 | $2.8 | $6.2 |
Production costs | $2.0 | $2.6 | $2.7 | $1.0 | $3.2 |
EBITDA | $2.1 | $2.6 | $4.0 | $1.8 | $3.0 |
Operating income | $1.3 | $1.1 | $2.3 | $1.1 | $2.1 |
Operating cash flow | $1.6 | $2.8 | $3.5 | $2.1 | $1.3 |
Capital expenditures | $— | $— | $— | $— | $— |
Gross profit | $1.3 | $1.1 | $2.3 | $1.1 | $2.1 |
Gross margin | 31.7% | 21.2% | 34.3% | 39.3% | 33.9% |
3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | |
Silver Production (000's) | 140 | 240 | 248 | 111 | 138 |
Cash Operating Costs/Ag Oz | $15.97 | $17.50 | $16.64 | $14.74 | $22.26 |
Table 32:
Reconciliation of EBITDA for Endeavor
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Sales of metal | $ | 4.1 | $ | 5.2 | $ | 6.7 | $ | 2.8 | $ | 6.2 | |||||
Production costs applicable to sales | (2.0 | ) | (2.6 | ) | (2.7 | ) | (1.0 | ) | (3.2 | ) | |||||
Administrative and general | — | — | — | — | — | ||||||||||
Exploration | — | — | — | — | — | ||||||||||
Care and maintenance and other | — | — | — | — | — | ||||||||||
Pre-development | — | — | — | — | — | ||||||||||
EBITDA | $ | 2.1 | $ | 2.6 | $ | 4.0 | $ | 1.8 | $ | 3.0 | |||||
20
Table 33:
Operating Cash Flow for Endeavor
in millions of US$ | 3Q 2012 | 2Q 2012 | 1Q 2012 | 4Q 2011 | 3Q 2011 | ||||||||||
Cash provided by operating activities | $ | 1.5 | $ | 3.6 | $ | 2.5 | $ | 2.1 | $ | 2.4 | |||||
Changes in operating assets and liabilities: | |||||||||||||||
Receivables and other current assets | 0.5 | (1.7 | ) | 1.7 | (1.2 | ) | (1.4 | ) | |||||||
Prepaid expenses and other | — | — | — | — | — | ||||||||||
Inventories | (0.3 | ) | 0.2 | 0.6 | 0.1 | (0.9 | ) | ||||||||
Accounts payable and accrued liabilities | (0.1 | ) | 0.7 | (1.3 | ) | 1.1 | 1.2 | ||||||||
Operating Cash Flow | $ | 1.6 | $ | 2.8 | $ | 3.5 | $ | 2.1 | $ | 1.3 | |||||
Table 34:
Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended September 30, 2012
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha | Endeavor | Total | |||||||||||||||||||||
Total cash operating cost (Non-U.S. GAAP) | $ | 6,878 | $ | 18,504 | $ | 31,660 | $ | 7,853 | $ | 4,461 | $ | 2,241 | $ | 71,597 | ||||||||||||||
Royalties | — | 1,879 | — | 1,441 | 100 | — | 3,420 | |||||||||||||||||||||
Production taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Total cash costs (Non-U.S. GAAP) | $ | 6,878 | $ | 20,383 | $ | 31,660 | $ | 9,294 | $ | 4,561 | $ | 2,241 | $ | 75,017 | ||||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (3,141 | ) | — | (541 | ) | (605 | ) | (4,287 | ) | |||||||||||||||||
By-product credit | 39,034 | — | — | 17,506 | 124 | — | 56,664 | |||||||||||||||||||||
Other adjustments | 424 | 720 | 2 | 85 | 798 | — | 2,029 | |||||||||||||||||||||
Change in inventory | 2,337 | (1,166 | ) | (1,639 | ) | (5,871 | ) | 1,539 | 345 | (4,455 | ) | |||||||||||||||||
Depreciation, depletion and amortization | 33,997 | 4,161 | 11,512 | 2,061 | 66 | 898 | 52,695 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 82,670 | $ | 24,098 | $ | 38,394 | $ | 23,075 | $ | 6,547 | $ | 2,879 | $ | 177,663 | ||||||||||||||
Production of silver (ounces) | 1,833,109 | 1,525,725 | — | 819,349 | 92,698 | 140,267 | 4,411,148 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | 3.75 | $ | 12.13 | $ | — | $ | 9.58 | $ | 48.12 | $ | 15.97 | $ | 9.05 | ||||||||||||||
Cash costs per silver ounce | $ | 3.75 | $ | 13.36 | $ | — | $ | 11.34 | $ | 49.20 | $ | 15.97 | $ | 9.83 | ||||||||||||||
Production of gold (ounces) | — | — | 24,391 | — | — | — | 24,391 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,298 | $ | — | $ | — | $ | — | $ | 1,298 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,298 | $ | — | $ | — | $ | — | $ | 1,298 | ||||||||||||||
21
Table 35:
Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Nine months ended September 30, 2012
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha | Endeavor | Total | |||||||||||||||||||||
Total cash operating cost (Non-U.S. GAAP) | $ | (774 | ) | $ | 51,006 | $ | 80,911 | $ | 25,164 | $ | 16,110 | $ | 10,571 | $ | 182,988 | |||||||||||||
Royalties | — | 5,372 | — | 1,959 | 305 | — | 7,636 | |||||||||||||||||||||
Production taxes | — | — | — | 1,255 | — | — | 1,255 | |||||||||||||||||||||
Total cash costs (Non-U.S. GAAP) | $ | (774 | ) | $ | 56,378 | $ | 80,911 | $ | 28,378 | $ | 16,415 | $ | 10,571 | $ | 191,879 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (7,044 | ) | — | (3,959 | ) | (2,843 | ) | (13,846 | ) | |||||||||||||||||
By-product credit | 141,923 | — | — | 42,758 | 422 | — | 185,103 | |||||||||||||||||||||
Other adjustments | 792 | 642 | 17 | 401 | 882 | — | 2,734 | |||||||||||||||||||||
Change in inventory | 15,129 | (703 | ) | (13,805 | ) | (20,206 | ) | 3,516 | (457 | ) | (16,526 | ) | ||||||||||||||||
Depreciation, depletion and amortization | 114,499 | 12,450 | 27,836 | 5,763 | 1,216 | 4,134 | 165,898 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 271,569 | $ | 68,767 | $ | 87,915 | $ | 57,094 | $ | 18,492 | $ | 11,405 | $ | 515,242 | ||||||||||||||
Production of silver (ounces) | 6,681,407 | 4,587,359 | — | 1,973,392 | 323,286 | 628,393 | 14,193,197 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | (0.12 | ) | $ | 11.12 | $ | — | $ | 12.75 | $ | 49.82 | $ | 16.82 | $ | 7.19 | |||||||||||||
Cash costs per silver ounce | $ | (0.12 | ) | $ | 12.29 | $ | — | $ | 14.38 | $ | 50.76 | $ | 16.82 | $ | 7.82 | |||||||||||||
Production of gold (ounces) | — | — | 53,407 | — | — | — | 53,407 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,515 | $ | — | $ | — | $ | — | $ | 1,515 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,515 | $ | — | $ | — | $ | — | $ | 1,515 | ||||||||||||||
Table 36:
Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended September 30, 2011
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha | Endeavor | Total | |||||||||||||||||||||
Total cash operating cost (Non-U.S. GAAP) | $ | (2,607 | ) | $ | 19,120 | $ | 25,000 | $ | 12,912 | $ | 4,660 | $ | 3,068 | $ | 62,153 | |||||||||||||
Royalties | — | 3,217 | — | 827 | 234 | — | 4,278 | |||||||||||||||||||||
Production taxes | — | — | — | 260 | — | — | 260 | |||||||||||||||||||||
Total cash costs (Non-U.S. GAAP) | $ | (2,607 | ) | $ | 22,337 | $ | 25,000 | $ | 13,999 | $ | 4,894 | $ | 3,068 | $ | 66,691 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (3,096 | ) | — | (566 | ) | (808 | ) | (4,470 | ) | |||||||||||||||||
By-product credit | 51,185 | — | — | 2,433 | 198 | — | 53,816 | |||||||||||||||||||||
Other adjustments | 435 | 111 | — | 117 | 290 | — | 953 | |||||||||||||||||||||
Change in inventory | 15,099 | 7,637 | 2,443 | (5,193 | ) | 3,328 | 949 | 24,263 | ||||||||||||||||||||
Depreciation, depletion and amortization | 41,174 | 6,062 | 9,568 | 556 | 237 | 914 | 58,511 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 105,286 | $ | 36,147 | $ | 33,915 | $ | 11,912 | $ | 8,381 | $ | 4,123 | $ | 199,764 | ||||||||||||||
Production of silver (ounces) | 2,250,818 | 2,051,426 | — | 351,717 | 118,523 | 137,843 | 4,910,327 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | (1.16 | ) | $ | 9.32 | $ | — | $ | 36.71 | $ | 39.31 | $ | 22.26 | $ | 7.57 | |||||||||||||
Cash costs per silver ounce | $ | (1.16 | ) | $ | 10.89 | $ | — | $ | 39.80 | $ | 41.29 | $ | 22.26 | $ | 8.49 | |||||||||||||
Production of gold (ounces) | — | — | 25,687 | — | — | — | 25,687 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 973 | $ | — | $ | — | $ | — | $ | 973 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 973 | $ | — | $ | — | $ | — | $ | 973 | ||||||||||||||
22
Table 37:
Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Nine months ended September 30, 2011
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha | Endeavor | Total | |||||||||||||||||||||
Total cash operating cost (Non-U.S. GAAP) | $ | (3,014 | ) | $ | 49,946 | $ | 72,199 | $ | 17,787 | $ | 12,981 | $ | 9,926 | $ | 159,825 | |||||||||||||
Royalties | — | 8,281 | — | 1,734 | 587 | — | 10,602 | |||||||||||||||||||||
Production taxes | — | — | — | 728 | — | — | 728 | |||||||||||||||||||||
Total cash costs (Non-U.S. GAAP) | $ | (3,014 | ) | $ | 58,227 | $ | 72,199 | $ | 20,249 | $ | 13,568 | $ | 9,926 | $ | 171,155 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (9,122 | ) | — | (2,366 | ) | (2,390 | ) | (13,878 | ) | |||||||||||||||||
By-product credit | 139,842 | — | — | 6,554 | 706 | — | 147,102 | |||||||||||||||||||||
Other adjustments | 1,208 | 298 | 19 | 256 | 462 | — | 2,243 | |||||||||||||||||||||
Change in inventory | 1,216 | (196 | ) | 7,015 | (3,005 | ) | (869 | ) | 45 | 4,206 | ||||||||||||||||||
Depreciation, depletion and amortization | 116,584 | 16,387 | 28,823 | 1,655 | 81 | 2,398 | 165,928 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 255,836 | $ | 74,716 | $ | 98,934 | $ | 25,709 | $ | 11,582 | $ | 9,979 | $ | 476,756 | ||||||||||||||
Production of silver (ounces) | 6,351,120 | 5,503,951 | — | 1,018,844 | 399,630 | 501,638 | 13,775,183 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | (0.47 | ) | $ | 9.07 | $ | — | $ | 17.46 | $ | 32.48 | $ | 0.02 | $ | 6.36 | |||||||||||||
Cash costs per silver ounce | $ | (0.47 | ) | $ | 10.58 | $ | — | $ | 19.87 | $ | 33.95 | $ | 18.85 | $ | 7.18 | |||||||||||||
Production of gold (ounces) | — | — | 75,121 | — | — | — | 75,121 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 961 | $ | — | $ | — | $ | — | $ | 961 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 961 | $ | — | $ | — | $ | — | $ | 961 | ||||||||||||||
Table 38:
Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended June 30, 2012
(In thousands except ounces and per ounce costs) | Palmarejo | San Bartolomé | Kensington | Rochester | Martha | Endeavor | Total | |||||||||||||||||||||
Total cash operating cost (Non-U.S. GAAP) | $ | (2,009 | ) | $ | 16,249 | $ | 29,083 | $ | 7,008 | $ | 5,942 | $ | 4,204 | $ | 60,477 | |||||||||||||
Royalties | — | 1,457 | — | 510 | 124 | — | 2,091 | |||||||||||||||||||||
Production taxes | — | — | — | 641 | — | — | 641 | |||||||||||||||||||||
Total cash costs (Non-U.S. GAAP) | $ | (2,009 | ) | $ | 17,706 | $ | 29,083 | $ | 8,159 | $ | 6,066 | $ | 4,204 | $ | 63,209 | |||||||||||||
Add/Subtract: | ||||||||||||||||||||||||||||
Third party smelting costs | — | — | (2,820 | ) | — | (1,444 | ) | (1,449 | ) | (5,713 | ) | |||||||||||||||||
By-product credit | 50,363 | — | — | 16,295 | 157 | — | 66,815 | |||||||||||||||||||||
Other adjustments | 124 | 117 | 7 | 229 | 26 | — | 503 | |||||||||||||||||||||
Change in inventory | 14,060 | 4,950 | (10,165 | ) | (3,931 | ) | 2,297 | (202 | ) | 7,009 | ||||||||||||||||||
Depreciation, depletion and amortization | 42,741 | 4,070 | 9,719 | 2,060 | 631 | 1,592 | 60,813 | |||||||||||||||||||||
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) | $ | 105,279 | $ | 26,843 | $ | 25,824 | $ | 22,812 | $ | 7,733 | $ | 4,145 | $ | 192,636 | ||||||||||||||
Production of silver (ounces) | 2,365,484 | 1,470,342 | — | 712,706 | 107,895 | 240,168 | 4,896,595 | |||||||||||||||||||||
Cash operating cost per silver ounce | $ | (0.85 | ) | $ | 11.05 | $ | — | $ | 9.83 | $ | 55.07 | $ | 17.50 | $ | 6.41 | |||||||||||||
Cash costs per silver ounce | $ | (0.85 | ) | $ | 12.04 | $ | — | $ | 11.45 | $ | 56.21 | $ | 17.50 | $ | 6.97 | |||||||||||||
Production of gold (ounces) | — | — | 21,572 | — | — | — | 21,572 | |||||||||||||||||||||
Cash operating cost per gold ounce | $ | — | $ | — | $ | 1,348 | $ | — | $ | — | $ | — | $ | 1,348 | ||||||||||||||
Cash cost per gold ounce | $ | — | $ | — | $ | 1,348 | $ | — | $ | — | $ | — | $ | 1,348 | ||||||||||||||
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