What were key operational milestones in 2023 and 2024?

In 2023, we produced 317,000 oz of gold and 10.3 million oz of silver. For 2024, our gold production guidance range is 310,000-355,000 oz. We expect double digit increases for silver, primarily due to Rochester’s expansion, projected to be between 10.7 million-13.3 million oz. 

The key operational milestone was the completion of our Rochester expansion. We completed the construction of a new processing facility and a new heap leach pad. In March 2024, we completed the new crusher. We ramped up this crusher to its annual run rate of about 32 million t/y at the end of the second quarter of 2024.

Our unsung hero is our Wharf gold mine in South Dakota. We acquired this gold open-pit heap leach operation in 2015. Today, Wharf has generated US$400 million in free cash flow and has a seven-year mine life based on current gold reserves, with potential for further extension with incremental exploration investment. In 2023, it delivered record free cash flow, which helped to fund the Rochester expansion. In Mexico, our Palmarejo gold and silver mine in Chihuahua is expected to benefit from the recent consolidation of key land parcels located to the east of the operation, which were acquired from Fresnillo. This consolidation opens multiple new opportunities for Palmarejo. In Alaska, our Kensington gold mine faced a limited reserve mine life of less than two years about two years ago. We implemented a multi-year development and drilling program to extend its mine life. For the second consecutive year, we replaced more than what we mined in 2023. 

What are the strategic and financial benefits of the Rochester expansion?

Rochester is now one of the world's largest open pit heap leach operations, and the largest source of domestically produced and refined silver in the USA. The expansion was a US$730 million investment. Rochester’s silver production will increase from approximately 3 million oz/y to roughly 7-8 million oz/y and gold production from approximately 30-35,000 oz/y to 70-80,000 oz/y. With throughput 2.5 times larger than before, costs will decline significantly, and cash flow will increase. At current prices, Rochester should generate around US$100 million a year in free cash flow, pushing the company back into a positive cash flow position. 

How has Coeur Mining's exploration investment strategy evolved?

Over the last five years, we invested around US$250 million in exploration, boosting our reserves by 35% and increasing resources by 45% on a gold equivalent basis. This investment has extended mine lives across our operations, except Kensington, where we expect to show a sizeable mine life increase by the end of this year. We expect Kensington to return to positive cash flow in the second half of 2025.

In 2024, we will allocate approximately US$55 million to exploration. Exploration will remain a key focus, funded by the positive cash flow generated from our recent investments.

What are the market dynamics supporting high silver and gold prices?

Demand for silver is growing driven particularly by photovoltaics. 2023 saw nearly 500 gigawatts of new photovoltaic installations globally, and experts predict this could exceed a billion gigawatts every year by 2030. Each gigawatt requires nearly 500,000 oz of silver, which could result in more demand for silver than total global annual supply. Silver is also essential in electric vehicles circuitry. This extends to charging stations and other infrastructure supporting EVs. 

Gold benefits from the global de-dollarization trend. Central banks are diversifying away from the US dollar, boosting gold demand. 

How does Coeur view ESG?

We focus on emissions, water, tailings impoundments, increasing our use of renewable power sources, safety, and long-standing community relationships. Our governance is top-rated, reflecting our commitment as a company listed on the NYSE. In 2023, we were the safest metals mining company in America. We are implementing the global tailings standard and tied a significant portion of our executive incentive compensation to a three-year emissions reduction target, aiming for a 35% reduction in carbon intensity by the end of 2024. We are on track to achieve this goal. We introduced a biodiversity standard last year and have also implemented innovative sage grouse conservation programs in Nevada.