Coeur Mining, Inc.

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be doing a corporate presentation. Welcome, Tom. I see. And I control the clicker. Thanks, yeah, please. OK. Well, good afternoon. Always fun to be back in Zurich. This 3rd year in a row, Mitch has kind of let me get out and speak to all of you and. I mean it's been just an amazing transformation for this company. I mean I think folks know the Coors name well. It's been around since 1928. New York Stock Exchange listed company, and we've really transformed the narrative about Coors, and I can't wait to spend the next 15 or 20 minutes or so just walking you through that transformation. When people thought of Coors before, they thought of short mine lives. They thought about lousy balance sheets. You know, not necessarily that balanced of a portfolio. Maybe the team was pretty weak, but I'm joined today by, my colleague Mick Routledge, 30+ years at Rio Tinto, my partner in crime, as we've helped transform this, this company. Jeff Woolhoy, investor relations guru, well known to many of you, as we've transformed not just the business but our shareholder registry and our. Even, even our analysts, for example, that list looked very different five years ago and happy to have added Cosmos and Wayne Lamb from TD in, in recent times. So if you need to get up to speed, there's a big selection of folks that you can look to to get an update. So here's, here's the brand new core. A very unique beast in terms of North America. Only 20+ million ounces of silver, 750,000 ounces of gold, and now, interestingly enough, 60 million pounds of copper from the new gold transaction. When you look at this, what should stand out to you is that absolutely North American footprint. You know we like to operate in jurisdictions where you heard from Magnico earlier, you can feel comfortable about the investments that you're going to make. That is a key part of our strategy. You look at this, you see a lot of balance too, right? See that mix between Canada, the US, Mexico. That was a big attraction for new gold was to add a big meaningful chunk of Canadian production. Probably my bias is the token Canadian on the core executive team as well. To have added that and then again that mix of one question, are you still in the silver business? Still 30% of our silver of our revenue will be in silver. Silver is in Coors DNA always will be, and go from there. So again, here's just a summary of, of kind of what we've been able to achieve in terms of. Of growth And in particular, I mean Core is now up to a $20 billion market cap, on the cusp of some pretty interesting index inclusion as a US listed company. We're pretty unique in that perspective. So right now there's one gold precious metals company on the S&P 500, that's Newmont. Our objective would be to become that second. New York Stock Exchange listed precious metals company on there. We're on the cusp from a market cap perspective, and the other key piece of this is growth in net income, constantly achieving positive net income. We've done that seven quarters in a row, and that's another key factor. That S&P 500 is dominated by tech companies, and I know they're looking for more materials. Type of companies like ours, so that will be something interesting to watch. One of the reasons why we did these last two transactions, we bought Silvercrest announced it in 24, closed it in February 25, did new gold in 20 announced in 25, closed just a couple of weeks back, was we always thought we wanted to get bigger, but only if we were going to get better. And both of those assets, both the company acquisitions made us significantly better. They drove us much further down the cost curve. The mine lives are right in line with what we'd like to have. They both were very core like assets, right? We love to invest in infrastructure in communities that are really no mining and then get after it with the exploration drill bit over the last. Six years we've invested over $300 million and have really tackled those short mine lives and again one of the initial pushbacks on the conversations around new gold was jeez those mine lives are pretty short and I'm going to show you in a second here why we're feeling really good about that. I mean $3 billion of EIDA, $2 billion of free cash flow, that is a big. That's a lot of money to deliver and we're really confident about that. And for the first time we can after years of investment, our shareholders can now expect to begin to see returns. So we announced their initial return in capital, and I'll talk about that in a moment. This slide is a summary of the big announcement that we made on Monday, March 23 after closing the new gold transaction on Friday, March 20. We debated, should we do this, Jack, we should have called you and asked for your advice, but should we do this 11 bit of news at a time or drop it all at once? And we had a lot of confidence that our shareholders can handle all this news at once, but in that news release, we talked about a brand new guidance for the year, so 12 months of Core which we previously announced and just 9 months. Of the new gold assets we announced two brand new technical reports. We had to be ready to have those done by mid February, which was sort of the earliest that we thought we'd anticipate having it close. Really exciting news on that front with Rainy River now out to a mine life of 2035. So again, that's not a short mine life by any stretch of the imagination. And then the very much anticipated news about the zone, excuse me, the zone maiden resource, over 45 million tons, you know, rainy rivers throughput rate 16,000 tons per day. That's metric. We've gone metric, by the way, but that's a topic for another discussion. 16,360 a day. Let's call it 6 million. tons a year, 6 million into 48, you can see we have very much a line of sight to mining at New Afton for the next decade, and I would argue. Again, not my Canadian bias, but it's one of the best mines in Canada, right just outside the city of Kamloops. Great infrastructure, very supportive local community, great indigenous relationships, a place where people want to live and work, and we've had the pleasure of meeting a few of our new colleagues over the course of the due diligence and integration planning and really pleased to have them added in. And then the updated financial policy that we announced. So basically the three things that you'll see us do in terms of what we're going to do with our cash is we're going to continue to invest in exploration and sustaining capital and growth capital. Underpinned by what's in our DNA is return on invested capital and free cash flow per share. So that will always be our number one priority. Number 2 is to actually build up a balance sheet. With the liquidity that's kind of in line with our peers, a ballpark number to keep in mind is kind of in that 15 to 25% of your market cap, so we're 20 billion now, obviously a little undervalued. That number will go up. So you see us build up some meaningful cash. We have no reason to be ashamed of building up our cash balance after years of, I think I've signed off 28 quarters. I would say 26 of those quarters we had less than $100 million in cash, so it would be nice to have that final. Financial flexibility for when prices do go down, and they will go down. I don't think they're going down anytime soon, but when they do go down, Core will be in a position of strength to be opportunistic, which it's never been able to do in its 90 plus year history. And then the last piece is a return of capital. So we received plenty of feedback from shareholders, many of you in this room, on what to do with our return on capital, wide divergences you might suspect between dividends and buybacks, and we landed on an initial dividend of 2 cents semiannually, as well as a $750 million buyback. There's been a bit of a muted response, $750 million. That doesn't seem like enough. I just remind everyone, 3 years ago our market cap was about $750 million so to have gone there I think was a really good start and looking forward to that. So just a couple of highlights on on the new Afton technical report, you know you can sort of see that right now the mine life goes out to 2031. So again, on the balance that looks a little short, but when you see the size of this K zone and where it's at. We're pretty excited. We had the opportunity to obviously be part of the due diligence and had a pretty good sense of where the resource was heading. I think it's fair to say, Mickey, you can back me up on this, that this initial resource ended up being larger than we thought as we. Doing the due diligence, so we're really pleased on this. We're continuing to have the drill bots going here for the rest of the year. We'll launch a feasibility study towards the end of the year. Once that feasibility study is done, you can go into permitting. a couple of thoughts there. Permitting in British Columbia when it's a permanent amendment is actually relatively straightforward. I think 9 to 12 months. That's what New Afton has done each of the previous times that they've. Gotten a new permit. So that's one thing to bear in mind is how much is this going to cost. We don't know. We haven't done the work yet, but the last season zone cost about $600 million just to give you a sense. And so if it's $600 million it's a billion dollars with sort of the free cash flow that we're generating, we're feeling very comfortable about that and we're really excited about the long term prospects. And then what I think will be the gem of this transaction is Rainy River, and Rainy River has had a long shadow. I think it was one of the reasons why we were able to get in and acquire new gold. It's had a long checkered past, $800 million capital turned into $2 billion. They had to sell Blackwater, had to. Sell half of New AFA at at some stage with Ontario teachers, etc. etc. and they did a fantastic job to stay alive, but we're really excited about the potential at Rainy River, you know, much like Pal Moreo, open pit, then went to underground, you know, they're busy working and improving their underground mining development rates. They were struggling a bit on their own. They brought in Tyson, that's someone we're really familiar with. We brought them in. Up at Kensington, so we're really excited and the other hidden gem here, I mean they just never had any money to do any exploration. They just had enough before Pat got there. I think they had actually given up on the exploration potential. And so they really have come up with a long term game plan and again that's just kind of right in Coors, that's our sweet spot. Take that beautiful 25,000 ton a day mill and try to keep it fed and so we're really excited about that. And these two assets will be our number one and number two free cash flow contributors during 2026 even though we've only owned them for nine months. I've really touched base on the updated financial policy. A couple of small things that we did, we've upgraded our revolving credit facility from $400 million to a billion dollars. You might say, you know, why did you do that? Was it necessary? I mean, my experience is when you get offered the money, you take it. And so the standby fees on that billion dollars facility are the same as they were on the $400 million facility, and we're happy to add really high quality banks to the facility along with the continuing support of others. And then the other thing that we did was, we'll talk about this in a second, around our capital structure. We have $300 million of bonds. New Gold had $400 million of bonds, and we did an obliger exchange. Which essentially makes the new gold bond core bonds, and that was important to have one indenture so that does not limit our ability in terms of capital returns. It's going to save us some money as well, so that was kind of a neat transaction. Got 96% uptake on that transaction that will be close here in the next week or so. So here's just some of the staggering transformation that that we talked about and you know sometimes we kind of have to pinch ourselves and at times I think maybe the market. Still doesn't quite believe us that we're going to deliver this, but you can see that step change in EBDA from $142 million in 2003 to over a billion dollars on its way to $3 billion negative $300 million of free cash flow, obviously that was at the back of the Rochester expansion, 666 333 $313 of which was in. In that 4th quarter as metal prices really started rising and that number is going to be over $2 billion with only 9 months. There's that capital structure. I remember being here vividly being here, met with some skepticism. I said we're going to be net debt, we're going to be net cash positive by the end of 26, and sure enough we did. I mean that is a balance sheet that people will not remember as it relates to Core and we're really excited about that. And again, this is a number that we're also particularly proud about that return on invested capital, so 2026%. Again, that's taken from Bloomberg. That's not a non-gap measure. You can go look it up yourselves. That's peer leading, right? We've been driven by that. Mick and I are compensated by return on invested capital and free cash flow per share. That's in our long term, long-term comp. So that's what we're driven. We use that with all of our conversations and to have achieved that level of, of peer leading Roick is, you know, extremely rewarding and, and really exciting. It's a lot of numbers. We've got 7 mines now, so we've got to spread the wealth on that exploration, almost $170 million investment coming. One of the great things that we've done in the last few years is really fix that exploration triangle. You need to have opportunities throughout the throughout your exploration pipeline to really make sure that you're you're continuously replacing reserves and growing your inferred pipeline. We've done a really nice job. Ethan McGrath joined us a few years back and has helped us really get that in good shape. And so the two largest allocations of of capital are Las Chispas, again, maybe one of the criticisms. Oh, I thought Las Chispas is only going to have a 7 year mine life and that's it. Here we are year one, we already replaced what we mined the previous year, and then the other one is Silvertip, and Silvertip's our exploration project in northern British Columbia. We're investing a lot. We kicked off an initial PEA last year. That work has wound up. Nick and I are presenting to our board in May, going to ask for permission to move to PFS. Don't want to get ahead of the board, but obviously with this higher silver price environment, all of the work that we've done, we're starting to get pretty excited and just to give you a sense of order and magnitude of what that could look like. Silver tips 11 million ton resource, 300 g silver. If you take 2 to 3000 tons a day, that's 6 to 8 million more ounces of silver. So again, back to that comment about silver is in our DNA, it gets us pushing almost 30 million ounces of silver. So definitely a core part of our business. I'm just about wrapping up here. I don't want to leave without talking about wharf. Wharf is a little asset that we bought from Gold Corp back in 2015 for less than $100 million. It's always had a five year mine life. We spent a whole $11 million on exploration last year. It now has an 11 year mine life. so we're really excited about that. It's an amazing asset, a great story about M&A. Quickly on, on Paul Morejo, there's a lot of lines on here. I'd ask everyone to focus their attention to this area of the east. It took us many, many years to consolidate that whole land piece. finally was able to achieve that. We're now spending 70% of our exploration dollars over to the east, and why that's important is that all that area to the east is not infested by the Franco Nevada stream that burdens the left hand side of that picture. So very much keep an eye on that. I mention quickly. everyone always wants to talk. Last three years I always wanted to talk about Rochester. It's kind of nice to go to meetings now where we don't have to talk about Rochester all the time. Mick's got that project on the rails, 88,000 tons a day open pit heat bleach, gold silver. It's a massive, impressive project, and Mick and his team did an amazing job building. Everyone who's been on site walks away incredibly impressed. Both companies who we did transactions with did their own reverse due diligence and walked away very impressed that this is a mine that's going to last for many, many decades in Nevada, arguably the best mining jurisdiction in the world. And again, the number I'd like to point to is this one right here as we've managed that throughput, $80 million of free cash flow in the fourth quarter. Rochester is going to be our 3rd largest free cash flow contributor during the year. So we've got a little bit about guidance. The one area I'd ask everyone to focus in on, we, unlike other companies, we don't just give the guidance by 25% and then let the analysts divide by 4. We give the guidance by quarter. It's a little bit more math. I apologize to the analysts or those who do their own model, but it's really important to understand that. You know, unlike, not unlike a lot of mining companies, we are particularly second half weighted at Rochester this year, so I just, I just wanted to highlight that. And with that, I'll stop talking and take some questions from the audience. OK, I think we have time for one question. Do we have one question from the audience? No, I'm, I'm being told that there's no time for any questions. So thank you very much, Tom. Thank you. OK, that ends the session with corporate presentations, and I wanna introduce our keynote speaker, Nikki Shields, head of research and metal strategy at MKS. Her bio.