What are the most recent updates regarding expansion plans at Rochester?

We embarked on a large expansion of Rochester in 2020, which is expected to be wrapped up in mid-2023. The total cost of the expansion is expected to be approximately US$600 million: Q3 and Q4 2022 represent the peak investment quarters for us as we are looking to complete the three main components of the expansion, a new leach pad, a new processing facility, and a new crushing circuit capable of more than twice the annual throughput we historically mined in Rochester. The scale of the operation is expected to drive down costs and dramatically increase cash flow and production over a long mine life.

On the back of this expansion, operating cash flow is expected to be about US$145 million a year, and free cash flow is expected to be approximately US$90 million a year. Production is expected to grow from 4 million oz/y of silver per year to approximately 8 million, and from 40,000 oz/y of gold per year to about 70,000.

How does Coeur fit rising costs in its exploration and expansion strategy?

Regarding productivity and optimizing costs, we implement business improvement innovations to help offset the impact of higher costs. One example of this is on-demand ventilation at our underground mines. The High-Pressure Grinding Roll technology we use at Rochester is also efficient for crushing high volumes of ore to a fine level. There are also incremental opportunities that, once added, make a meaningful impact. We also have a team of data scientists focusing on machine learning and using data to allow us to become more predictive in terms of maintenance.

How does Coeur remain an ESG leader?

ESG is key to being successful in mining, and we are aligned from the board level to frontline operators to implement sustainable goals. We aim to keep building on that leadership position, by continuing with the GHG emission reduction target we rolled out in 2020, and subsequently strengthening it to a 35% reduction by the end of 2024. What sets Coeur apart is that we tie our compensation to achieving these targets. We hold ourselves accountable, which is critical to be a credible ESG leader.

What are the advantages of operating in Nevada?

The geology is second-to-none and the state is still massively under-explored. There is high-quality infrastructure, a diverse workforce, and a regulatory framework that is managed by people that understand the complexity of mining.

Mining is a key part of Nevada’s economy. If Nevada were a country, it would be the 5th largest gold producer in the world. It is fantastic that we have the largest primary silver mine in the “Silver State”. Politically, all Representatives and the two Senators are open to mining-related discussions. But there remain challenges on the regulatory and agency side. We need to act quickly to pass on that knowledge and allow Nevada to remain a leader.

Why is it key for the U.S. to strengthen its supply chain of precious metals?

Themes such as electrification, the “green transition”, and the exposure of the reliance on China for critical minerals led mining to be at the center of key U.S. policy initiatives. With the mineral endowment of the U.S., we can become the source of reliable raw materials to drive key initiatives beyond electrification: healthcare, defense, and water purification.

What is the near-term focus for Coeur Mining?

In the past two years, we have invested in our business. In the short term, investors don’t always appreciate this, but those investments are expected to pay off and create significant value in the medium and long term. Over the past five years, we have invested about US$240 million in exploration, US$70 million of that in 2021 alone. That has led to significant reserve and resource growth. Over the last five years, our gold reserves have increased by 45% and silver reserves have increased by 100%. Our near-term focus is completing the Rochester expansion. We will prioritize capital there but continue to invest heavily in our assets in Mexico, Canada, and the US.