Coeur Mining, Inc.

Good day and welcome to the second quarter 2024 financial results for CoAir Mining conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would like now to turn the conference over to Mr. Mitchell Krebs, President and CEO of Coair Mining. Please go ahead.

Hello, everyone, and thanks for joining our call. Before we start, I want to point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll kick off with some highlights on slide three before turning the call over to the team, and then we'll open it up for questions. The main focus during the second quarter was getting Rochester ramped up and positioning the company to make the transition to positive free cash flow in the second half of the year. We were successful in that effort with Rochester now consistently crushing and placing around 90,000 tons per day, which should drive sharp production increases and unit cost reductions in the second half. Rochester's silver and gold production both jumped nearly 40% in the second quarter, which was a great sign that the team out in Nevada is building momentum heading into the back half of the year. Nick will provide some additional details on Rochester in a few minutes. Our three other operations are also on track for solid years as we pass the midway point. Palmareo generated another strong free cash flow quarter. Wharf remained consistent and on plan. And Kensington is now establishing a good rhythm after a couple of years of elevated investment and implementing several operational enhancements, which Mick will cover in greater detail. Our leading leverage to higher prices was on full display during the quarter. Prices in the second quarter were about 10% higher year over year, yet our quarterly adjusted EBITDA jumped 136%, and our LTM adjusted EBITDA increased 90% to $192 million. On the back of Rochester's ramp up, Kensington is set to have its own free cash flow inflection point in the second half of next year. The elevated levels of underground development and drilling over the past two years are expected to drop off mid next year, leaving Kensington positioned to deliver positive free cash flow with greater operational flexibility and a longer mine life. Mick and Aoife will both touch on the progress at Kensington. It was great to close the acquisition last month of two key concessions from Fresneo and consolidate the land package to the east of Palmareo. Kiefer will talk in a couple minutes about our plans and priorities for this large prospective land position that sits outside the Franco-Nevada Gold Stream boundary and provides a whole new set of higher margin mine life extension opportunities at Palmareo. IFA will also cover the objectives and progress from the summer exploration program underway at Silver Tip. We continue to believe that the convergence of all of these catalysts, higher commodity prices, a ramped-up Rochester, a stable suite of U.S.-centric mines full of organic growth opportunities, and a world-class Canadian exploration project along with our impending transition to positive free cash flow, followed by a period of aggressive debt reduction, sets us apart from our peers and leaves us in a great place heading into the second half.

Mick, over to you. Thanks, Mitch. Rochester's successful ramp up and consistent contributions from across our portfolio have the company well positioned at the midway point of 2024. More importantly, Curl's deeply embedded safety culture continues to show through in our overall safety performance. I'm pleased to report that a clean slate at Wharf in June marked one year of the operation without a lost time incident. Also in June, seven individuals at Rochester were honoured with safety awards by the Nevada Mining Association. Congratulations to the team there for their contributions to pursuing a higher standard in safety. Turning to our second quarter results on slide four and kicking off with Rochester. Silver production in the second quarter increased to 973,000 ounces, while gold production increased to over 8,000 ounces, driven by more crushed tons placed with the new circuit. As reported on July 11th, placement of ounces during the second quarter was lighter than initially planned, but Rochester remains on track to deliver on 2024 production guidance. Over the first several weeks of the third quarter, throughput rates have regularly achieved or exceeded expected average running capacity of 88,000 tonnes per day and the team continues to take full advantage of down periods to optimise and refine the operation. We crushed and placed nearly 2 million tonnes in July and we remain well positioned to deliver crushing and placement rates of 7 to 8 million tonnes per quarter in the second half and into 2025. Concurrent with delivering these higher crushing replacement rates, our focus in the second half of 2024 will be on working down material crush size towards a targeted five-eighths of an inch in order to maximise recoveries. Moving on to Palmarejo, the mine followed up a very strong first quarter with another solid three months delivering over 25,000 ounces of gold and nearly 1.6 million ounces of silver. In June, the team broke ground on a third access portal at Hidalgo, which is expected to significantly enhance our underground mine development and exploration efforts at this future ore source located just north and west of Independencia. Following the completion of the transaction with Fresnillo, the operating team is working closely with the exploration team on plans to pursue near-term development opportunities, which IFA will discuss further in a moment. At Kensington, the operation continues to regain momentum where significant improvements have been realized in long-haul drilling capacity, paste placement, and getting more stoke feed to the surface. As Mitch mentioned, the Kensington team have gone the hard yards to position the operation as a long-lived, revitalized source of free cash flow generation starting in the second half of next year. The multi-year capital development investment continues to advance well with progress ahead of schedule with additional funds being allocated to the programme to provide more operating flexibility and to access new ore zones. The programme now stands at about 82% complete for the current scope of the project. Finishing up with wharf, strong grades drove increased road production to 22,000 ounces in the quarter, while adjusted casts decreased 29% compared to the first quarter to an impressive $822 per ounce. When Worf was acquired by Kerr in 2015, reserves stood at approximately 560,000 ounces. A year in 2023, nine years later, Worf's gold reserves stood at over 760,000 ounces, with even further exploration upside. The team there has recently identified two new opportunities near existing mining areas aimed at substantially extending Worf's already long life. The two targets, North Foley and Juneau, will be drill tested over the remainder of 2024 and 2025 to demonstrate the scope of the potential opportunity. With that, I'll pass the call over to Tom.