美国银矿公司：科尔矿业公司 Coeur Mining Inc.(CDE)

美股之家 9
2017年4月21日 5F
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Dear Fellow Stockholders,
2016 marked a key inflection point in Coeur’s strategic repositioning.
We entered the year challenged by depressed gold and silver prices, a highly
levered balance sheet, ambitious capital investment plans, and unfavorable
capital markets conditions. With little margin for error, we successfully executed
on our multi-year strategy to transform Coeur into a lower-cost, high-quality,
profitable precious metals producer.
Central to this strategy, we made significant progress on our high-return
organic growth initiatives. At our Palmarejo silver-gold complex in Mexico,
we completed the transition to 100% underground mining from two new,
high-grade deposits – Guadalupe and Independencia. We plan to accelerate
the mining rates at these deposits during 2017, which is expected to lead
to silver and gold production increases of over 50% this year and, more
importantly, significantly higher cash flow. At our Rochester mine in Nevada,
we commenced construction of an expanded leach pad, which remains
on-schedule and on-budget with expected completion in the third quarter. This
project represents the culmination of several years of investment at Rochester
to position our longest-running operation for strong, sustainable cash flow.
At our Kensington gold mine in Alaska, we advanced development of the
high-grade Jualin deposit and are on schedule to commence production
from this important new ore source late this year. With Jualin contributing
higher-grade ore, we expect Kensington to join Palmarejo and Rochester
as sources of strong and sustained cash flows for the Company. Further
supplementing the cash flow from these assets is the Wharf gold mine in
South Dakota, which we acquired in February of 2015 for $99 million. In 2016
alone, Wharf generated $58 million of free cash flow
1
for the Company, which
demonstrates the high rate of return on this acquisition.
Concurrent with these development and portfolio enhancing efforts, we
maintained strong operating discipline, resulting in record production levels and
a continuation of our industry-leading cost reductions. Coupled with modest
improvements to gold and silver prices, we generated positive net income of
$55 million in 2016 and adjusted EBITDA
2
of $215 million, an increase of
nearly $90 million, or 68%, year-over-year.
Mitchell J. Krebs,
President & Chief Executive Officer
(1) Free cash flow calculated as cash provided by operating activities less capital expenditures and gold production royalty payments.
(2) See non-GAAP reconciliation tables in Item 7 of the Form 10-K included with this Annual Report.
Coeur Mining
|
2016 Annual Report
5
This strong operational and financial performance also provided critical
support as we delivered on our commitment to reduce leverage and strengthen
our balance sheet. Over the course of 2016, we reduced debt by $280 million,
or nearly 60%, resulting in significant expected annual interest savings and
greater balance sheet flexibility.
Over the past several months, our more conservative balance sheet has
allowed us to allocate more capital to future growth initiatives, including
an expansion of our exploration program. Following years of limited explora
–
tion investment due to a declining metal price environment and a focus on
repositioning our core assets, we increased our exploration budget in
mid-2016 and expanded it further in early 2017, prioritizing high-return,
near-mine exploration and mine life extensions.
Our expanded exploration efforts have already started to yield results.
Earlier this year, we reported a 40% increase in silver reserves and a 70%
increase in gold reserves at our Rochester mine from targeted drilling that
was completed during 2016. In 2017, the largest portion of our exploration
budget is planned to be spent at Palmarejo, followed by Kensington and the La
Preciosa exploration project located in Mexico. While ongoing drilling efforts
will take time and analysis before translating into mineralized material and
potential reserves, we believe there is significant exploration upside within our
existing portfolio of assets.
The past year also upheld the Company’s enduring commitment to health
and safety, with lost-time and reportable incidents declining by 79% and
68%, respectively, since 2010. Beyond these measures, we redefined
our companywide vision for corporate stewardship and introduced greater
structure to our investments in wellness and community partnership. As an
employer of over 2,000 people across the Americas, Coeur recognizes the
importance of demonstrating responsibility to each of its stakeholders.
In 2017, gold and silver prices remain volatile and macroeconomic and
geopolitical environments uncertain, yet we believe we are better positioned
to face these challenges today than ever before in our Company’s history. This
more resilient posture has been made possible by the hard work and thoughtful
contributions of the team here at Coeur. Our employees’ dedication, strong work
ethic, and ambition have reinvigorated our culture and invigorated our pursuit
of a higher standard in all areas of our business. It remains a great honor to lead
such a talented and driven team as the Company’s President and CEO as we
continue to transform Coeur into the leader in precious metals mining. I’d also
like to express my appreciation and gratitude to the Chairman of the Board for
his support and leadership as well as to the Board of Directors for their guidance
and encouragement, and – most importantly – to our investors whom we all
proudly serve.
Mitchell J. Krebs
President & Chief Executive Officer

美股之家 9
2016年12月14日 1F
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本站研究数据显示，基于资产价值和公司规模，PAAS和CDE是价值最高的两只银价股。