Q1 2024 Coeur Mining Inc Earnings Call

May 2, 2024

Operator: Good morning, and welcome to the Coeur Mining first quarter of 2024 financial results conference call. All participants will be in a listen-only mode, and should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your touch-tone phone. And to withdraw a question, please press the star, then 2. Please also note that this event is being recorded today. I would now like to turn the conference over to Mitch Krebs, President and Chief Executive Officer. Please go ahead.

Good morning, and welcome to the core mining first quarter of 2024 financial results Conference call.

Operator: All participants will be in a listen only mode and should you need any assistance. Please signal a conference specialist by pressing the star key followed by zero.

Operator: After today's remarks, there will be an opportunity to ask questions.

Operator: To ask a question you May press Star then one on your Touchtone phone and to withdraw your question. Please press Star then two please.

Operator: Please also note that this event is being recorded today.

Operator: I would now like to turn the conference over to Mitch Krebs, President and Chief Executive Officer. Please go ahead.

Mitchell J. Krebs: Okay, hello everyone, and thanks for joining our call. Before we start, I want to point out our cautionary language on forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll kick off with some brief highlights on slide 3 before turning the call over to Mick, Tom, and Aoife. Overall, we had a solid first three months of the year. Both Palmareo and Wharf had strong quarters compared to plan, which puts the company in a great position for a successful 2024.

Mitchell J. Krebs: Okay. Hello, everyone, and thanks for joining our call. Before we start, I want to point out our cautionary language on forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll kick off with some brief highlights on slide 3 before turning the call over to Mick, Tom, and Aoife. Overall, we had a solid first three months of the year. Both Palmareo and Wharf had strong quarters compared to plan, which puts the company in a great position for a successful 2024.

Mitchell J. Krebs: Okay, Hello, everyone and thanks for joining our call.

Mitchell J. Krebs: Before we start I want to point out our cautionary language on forward looking statements in today's slide deck and refer you to our SEC filings on our website.

Mitchell J. Krebs: Slide four does a nice job of showing where production stood after the first quarter compared to the quarterly by-quarter guidance profile we provided earlier this year. We often talk about the strategic importance of being a multi-asset company and having a balanced portfolio of operations, and the first quarter was a great example of that. Palmareo's and Whorf's outperformance helped to offset Rochester's planned transitional quarter over to the new crusher, which began to process fresh ore on March 8.

Mitchell J. Krebs: Slide four does a nice job of showing where production stood after the first quarter compared to the quarterly-by-quarter guidance profile we provided earlier this year. We often talk about the strategic importance of being a multi-asset company and having a balanced portfolio of operations, and the first quarter was a great example of that.

Mitchell J. Krebs: I'll kick off with some brief highlights on slide three before turning the call over to Nick Com and Eva.

Mitchell J. Krebs: Overall, we had a solid first three months of the year, both summer ale and wharf had strong quarters compared to plan, which puts the company in a great position for a successful 2024.

Mitchell J. Krebs: Slide four does a nice job of showing what production still it after the first quarter compared to the quarter by quarter guidance profile. We provided earlier this year.

Mitchell J. Krebs: We often talk about the strategic importance of being a multi asset company and having a balanced portfolio of operations in the first quarter was a great example of that.

Mitchell J. Krebs: Palmareo's and Whorf's outperformance helped to offset Rochester's planned transitional quarter over to the new crusher, which began to process fresh ore on March 8. Commercial production was achieved just three weeks later, which was a great accomplishment, but it's what has been happening underneath the hood there that leads to our excitement for the balance of 2024 and beyond. More on Rochester in a minute. On a company-wide basis, overall revenue increased 14% year-over-year, while adjusted EBITDA jumped 76%. Capital expenditures dropped off significantly during the quarter, with the Rochester expansion now in the rear-view mirror.

Mitchell J. Krebs: Tom Rayos at worst outperformance helped to offset rochester's planned transitional quarter over to the new crusher, which began to process fresh ore on March eight.

Mitchell J. Krebs: Commercial production was achieved just three weeks later, which was a great accomplishment. But it's what has been happening underneath the hood there that leads to our excitement for the balance of 2024 and beyond. More on Rochester in a minute. On a company-wide basis, overall revenue increased 14% year-over-year, while adjusted EBITDA jumped 76%. Capital expenditures dropped off significantly during the quarter, with the Rochester expansion now in the rearview mirror

Mitchell J. Krebs: <unk> production was achieved just three weeks later, which was a great accomplishment, but it's what has been happening underneath the hood there that leads to our excitement for the balance of 2024 and beyond.

Mitchell J. Krebs: More on Rochester in a minute.

Mitchell J. Krebs: On a companywide basis overall revenue increased 14% year over year, while adjusted EBITDA jumped 76%.

Mitchell J. Krebs: Capital expenditures dropped off that.

Mitchell J. Krebs: That deleveraging process can be further accelerated assuming current silver and gold prices continue.

Mitchell J. Krebs: We're on track to flip to positive free cash flow in the second half of the year, which will be earmarked for debt repayment. That deleveraging process can be further accelerated, assuming the current silver and gold prices continue, leading to a rapid and dramatic improvement in our overall financial condition and outlook. In the middle of all of these positive catalysts stands Rochester, which is routinely processing and placing over 70,000 tons of ore per day and occasionally exceeding run rate throughput levels as we put the new crushing circuit through its paces.

Mitchell J. Krebs: We're on track to flip to positive free cash flow in the second half of the year, which will be earmarked for debt repayment. That deleveraging process can be further accelerated assuming the current silver and gold prices continue, leading to a rapid and dramatic improvement in our overall financial condition and outlook. In the middle of all of these positive catalysts stands Rochester, which is routinely processing and placing over 70,000 tons of ore per day and occasionally exceeding run rate throughput levels as we put the new crushing circuit through its paces.

Mitchell J. Krebs: Leading to a rapid and dramatic improvement in our overall financial condition and outlook.

Mitchell J. Krebs: In the middle of all of these positive catalysts stands Rochester, which is routinely processing and placing over 70000 tonnes of ore per day.

Mitchell J. Krebs: Occasionally exceeding run rate throughput levels as we put the new crushing circuit through its paces.

Mitchell J. Krebs: The rapid ramp up curve is a real testament to the knowledge and operating experience. The team is bringing to bear at this world class operation.

Mitchell J. Krebs: Before turning the call over to Nick for some additional Rochester details I want to touch briefly on our progress and plans at some other key initiatives that are expected to augment the near term growth we anticipate from Rochester.

Mitchell J. Krebs: The rapid ramp-up curve is a real testament to the knowledge and operating experience the team is bringing to bear at this world-class operation. Before turning the call over to Mick for some additional Rochester details, I want to touch briefly on our progress and plans on some other key initiatives that are expected to augment the near-term growth we anticipate from Rochester. First up is Kensington, which is in its final full year of elevated investment aimed at extending its mine life and enhancing its operational flexibility. Positive exploration results and impressive underground development progress are pointing to the potential for a substantial mine life extension by the end of this year, which Aoife will talk more about in a few minutes.

Mitchell J. Krebs: First up is Kensington, which is in its final full year of elevated investment aimed at extending its mine life and enhancing its operational flexibility.

Mitchell J. Krebs: Positive exploration results and he presses underground development progress.

Mitchell J. Krebs: Pointing to the potential for a substantial mine life extension by the end of this year, which equals will talk more about in a few minutes.

Mitchell J. Krebs: Over the medium term, we continue developing our comprehensive drilling and development plan at Columbia rail on the recently acquired lands located to the east of the current operation.

Mick: The goal is to hit the ground running once the acquisition of these concessions from Fresno is completed hopefully later this year.

Mitchell J. Krebs: Over the medium term, we continue developing a comprehensive drilling and development plan at Palmareo on the recently acquired lands located to the east of the current operation. The goal is to hit the ground running once the acquisition of these concessions from Fresneo is completed, hopefully later this year. The nearest of the two acquired blocks to Palmareo's existing infrastructure sits just outside the boundaries of Franklin, Nevada Gold Street, and has the potential to materially supplement our production and cash flow profile within the next three years.

Mitchell J. Krebs: Over the medium term, we continue developing a comprehensive drilling and development plan at Palmareo on the recently acquired lands located to the east of the current operation. The goal is to hit the ground running once the acquisition of these concessions from Fresnillo is completed, hopefully later this year. The nearest of the two acquired blocks to Palmareo's existing infrastructure sits just outside the boundaries of the Franco-Nevada Gold Strait and has the potential to materially supplement our production and cash flow profile within the next three years.

Mitchell J. Krebs: The nearest of the two acquired blocks to Palmer rayos existing infrastructure sits just outside the boundaries of the Franco Nevada Gold stream a.

Mitchell J. Krebs: It has the potential to materially supplement our production and cash flow profile within the next three years.

Mitchell J. Krebs: Over the longer term excitement continues to build at our high grade silver tip poly metallic exploration project in British Columbia.

Mitchell J. Krebs: Which equaled will cover shortly.

Mitchell J. Krebs: The convergence of all of these catalysts higher commodity prices.

Mitchell J. Krebs: Over the longer term, excitement continues to build at our high-grade silver tip polymetallic exploration project in British Columbia, which Aoife will cover shortly. The convergence of all of these catalysts, higher commodity prices, completed Rochester. A stable suite of U.S.-centric mines in North America and a world-class Canadian exploration project sets us apart from our peers and leaves us very well positioned. Finally, we published our 2023 ESG report last week, which is summarized on slide 16.

Mitchell J. Krebs: Over the longer term, excitement continues to build at our high-grade silver tip polymetallic exploration project in British Columbia, which IFA will cover shortly. The convergence of all of these catalysts, higher commodity prices, completed Rochester, a stable suite of U.S.-centric mines in North America, and a world-class Canadian exploration project sets us apart from our peers and leaves us very well positioned. Finally, we published our 2023 ESG report last week, which is summarized on slide 16.

Mitchell J. Krebs: Completed in Rochester.

Mitchell J. Krebs: Our stable suite of U S centric mines in North America, and a world class Canadian exploration project sets us apart from our peers and leaves us very well positioned.

Mitchell J. Krebs: Finally, we published our 2023 ESG report last week, which is summarized on slide 16.

Mitchell J. Krebs: The report does a great job detailing our leadership in this area and highlights our efforts to continue raising the bar as we try to keep pursuing a higher standard.

Mitchell J. Krebs: With that I'll turn the call over to Mick.

Mitchell J. Krebs: The report does a great job detailing our leadership in this area and highlights our efforts to continue raising the bar as we try to keep pursuing a higher standard. With that, I'll turn the call over to Mitch.

Aoife: Thanks Mitch.

Mitch: During our first quarter operating results.

Mitch: Our recommendation to spend some time with.

Mitch: <unk> 2023, ESG report if you haven't already.

Mitch: Well, what you have because construction was a significant year over the last three years.

Mitchell J. Krebs: Before reviewing our first quarter operating results, I'll admit our recommendation to spend some time with Coeur's 2023 ESG report if you haven't already. While Rochester's construction was a significant priority over the last three years, I'm an operator at heart, and experience has taught me that building a very strong foundation in sustainability, responsibility, and safety delivers operational success. In addition to the strong results Mitch highlighted, I'm particularly proud to call out two headlines from the ESG report.

Mitchell J. Krebs: Before reviewing our first quarter operating results, I'll add another recommendation to spend some time with Coeur's 2023 ESG report, if you haven't already. While Rochester's construction was a significant priority over the last three years, I'm an operator at heart, and experience has taught me that building a very strong foundation in sustainability, responsibility, and safety delivers operational success. In addition to the strong results Mitch highlighted, I'm particularly proud to call out two headlines from the ESG report.

Mitchell J. Krebs: Operator at heart and experiences told that.

Mitchell J. Krebs: Building, a very strong foundation in sustainability responsibility CFT deliver operational success.

Mitchell J. Krebs: In addition to the strong results Mitch highlighted.

Mitchell J. Krebs: I'm proud to call them two headlines from ESG report.

Mitchell J. Krebs: First our number one position among our peers in key safety indicators.

Mitchell J. Krebs: And second our decision to adopt global industry standard on tailings management, one of them, 70% non ICM.

Mitchell J. Krebs: First, our number one position among our peer group in key safety indicators for the second year in a row. And second, our decision to adopt the global industry standard on tailings management, one of only 17% of non-ICMM member companies in the industry to do so. Setting the pace is not always the easy thing to do, but it is the right thing to do, and we'll continue to dedicate ourselves to leading in both these areas.

Mitchell J. Krebs: At least in the industry to do so.

Mitchell J. Krebs: Got it in the past.

Mitchell J. Krebs: He seemed to do dedicated I think Manuel.

Mitchell J. Krebs: And we'll continue to get a kid ourselves to lead in both categories.

Mitchell J. Krebs: Turning to our quarterly results.

Mitchell J. Krebs: Setting the pace is not always the easy thing to do, but it is the right thing to do, and we'll continue to dedicate ourselves to leading in both these areas, paying attention to our important results. We're pleased with the solid start to the year. As slide 4 illustrates, 2024 production is expected to be significantly moving towards the second half, consistent with the production guidance we provided earlier this year. Workshops have ramped up, and day-to-day operating improvement will drive most of that change in coal production. Dean is from Rochester.

Mitchell J. Krebs: We are pleased with cold start to the year.

Mitchell J. Krebs: Slide four illustrates 2020 full production is expected to be significantly weighted towards the second half.

Mitchell J. Krebs: Tune in to our quarterly results. We're pleased with the solid start to the year. As Slade 4 illustrates, 2024 production is expected to be significantly weighted toward the second half, consistent with the production guidance we provided earlier this year. Workshops have ramped up, and day-to-day operating improvement will drive most of that change in quarterly production. Dean is Rochester.

Mitchell J. Krebs: Consistent with the production guidance, we provided earlier this year.

Dean: Well chip as one on day to day operating improvement will drive most of the change in quarterly production.

Mitchell J. Krebs: Things won't Chester.

Mitchell J. Krebs: Gold production in the first quarter totaled nearly 17005 stages.

Dean: Right in line with our expectations.

Mitchell J. Krebs: Following the fourth quarter flu benches from old piece, the closeness to the new product lineup.

Mitchell J. Krebs: Silver and gold production in the first quarter totaled nearly 700,000 and 5,800 ounces, respectively, right in line with our expectations. Following the fourth quarter flush of ounces from ore placed closest to the new pad 6 liner, our focus in 1Q was commissioning the crusher and starting the placement of ore into cells using only crushed ore from the new circuit, which commenced on March 6. The Christian circuit runs when we want it to run, and we're maximizing our planned ends to refine and optimize operations.

Mitchell J. Krebs: Silver and gold production in the first quarter totaled nearly 700,000 and 5,800 ounces, respectively, right in line with our expectations. Following the fourth quarter flush of ounces from ore placed closest to the new pad 6 liner, our focus in 1Q was commissioning the crusher and starting the placement of ore in the cells using only crushed ore from the new circuit, which commenced in March. The cushion circuit runs when we want it to run, and we're maximizing our planned ends to refine and optimize operations.

Mitchell J. Krebs: Our focus in <unk> with commissioning the crusher installing the placement of ore in the cells.

Mitchell J. Krebs: When we pushed off from the immune system, which commenced in March.

Mitchell J. Krebs: Of course, you can see it wouldn't when we wanted to one somehow.

Mitchell J. Krebs: Using our plum tends to refine and optimize operations.

Mitchell J. Krebs: What has really stood out in the early going it's a tremendous flexibility.

Mitchell J. Krebs: The interesting part.

Mitchell J. Krebs: Intermediates stockpiled ore feed can bypass certain stages arguably you did given the unprecedented levels of control or the ultimate satisfaction or go into politics.

Mitchell J. Krebs: What has really stood out in the early going is the tremendous flexibility of the new three-stage line. Having intermediate stockpiles and ore feed can bypass certain stages as needed, giving your team unprecedented levels of control over the ultimate size fraction of the ore going to the pad. Mining rates and refining capacity are more than keeping up with the increased throughput. Looking ahead, we remain on track to reach the conclusion of the Rumble by the end of the second quarter.

Mitchell J. Krebs: What has really stood out in the early growing is the tremendous flexibility of the new three-stage line. Having intermediate stockpiles and ore feed can bypass certain stages as needed, giving your team unprecedented levels of control over the ultimate size fraction of the ore going to pad. Mining rates and refining capacity are more than keeping up with the increased throughput. Looking ahead, we remain on track to reach the conclusion of the Rumble by the end of the second quarter.

Mitchell J. Krebs: And we're finding capacity of more than keeping up with the increased throughput.

Mitchell J. Krebs: Looking ahead, we remain on track to reach a conclusion one second.

Mitchell J. Krebs: Cool.

Mitchell J. Krebs: The priority in the second half of the year, we'll be optimizing mining and processing rates daily win per site used to maximize throughput.

Mitchell J. Krebs: What's your thought remains on track for 2020 full guidance.

Speaker Change: It's an exciting time in their opinions with our progress, but we're keeping our heads down.

Mitchell J. Krebs: The priority in the second half of the year will be on optimizing mining and processing rates and dialing in crush size to maximize recovery. Watch if they remain on track for 2024. It's an exciting time, and we're pleased with our progress, but we're keeping our heads down as there remains more work to be done to get this operation properly positioned for its long run in Northern Nevada. Moving on to Palmorego on slate 23.

Mitchell J. Krebs: The priority in the second half of the year will be on optimizing mining and processing rates and downing and pushing size to maximize recovery. Rochester remains on track for 2024. It's an exciting time, and we're pleased with our progress, but we're keeping our heads down as there remains more work to be done to get this operation properly positioned for its long run in Northern Nevada. Moving on to Palmorego on slate 23.

Mitchell J. Krebs: More work to do.

Mitchell J. Krebs: To get itself, where you should put in position for too long in northern Nevada.

Mitchell J. Krebs: Moving onto polymer Eagle on slide 22.

Mitchell J. Krebs: He hit the ground in the fourth quarter, reaching its highest gold and silver production levels in several years.

Mitchell J. Krebs: Unexpected grades from Guadalupe and Independencia.

Mitchell J. Krebs: Importantly, free cash flow and positions us well for the balance of 2024.

Mitchell J. Krebs: The team hit the ground running in the first quarter, reaching its highest quarterly gold and silver production levels in several years. Higher unexpected grades from Guadalupe and Independencia to a strong quarterly free cash flow and positions as well for the balance of 2020. Continued high diesel prices in Mexico and other headwinds on the cost side of Palmo de Huevo were more than a chance.

Mitchell J. Krebs: The team hit the ground running in the first quarter, reaching its highest quarterly gold and silver production levels in several years. Higher unexpected grades from Guadalupe and Independencia to a strong quarterly free cash flow and positions as well for the balance of 2021. Continued high diesel prices in Mexico and other headwinds on the cost-savings palm reval with more in the charts.

Mitchell J. Krebs: Continued high diesel prices in Mexico, or the headwinds caused some pause illegal but more of a challenge.

Mitchell J. Krebs: The team continues to focus on mining and plant efficiency programs aimed at leaning in costs.

Mitchell J. Krebs: Can you the inflationary pressures in Mexico.

Mitchell J. Krebs: Moving to Kensington.

Mitchell J. Krebs: Our focus in the first quarter was on stabilizing the alkylation following a challenging 2023 as a multi year investment in mine development continues.

Mitchell J. Krebs: The team continues to focus on mining and plant efficiency programs aimed at reeling in costs amid continued inflationary pressures in Mexico. Moving to Kensington, the focus in the first quarter was on stabilizing the operation following a challenging 2023 as our multi-year investment in mine development continues. Mitch mentioned the positive results on that front, with our investment now about 71% complete for the current scope of the project. We're seeing a clear path to substantial mine life extension there, and perhaps more importantly, to the prospect of increased workplaces underground and, with it, more consistent performance.

Mitchell J. Krebs: The team continues to focus on mining and plant efficiency programs aimed at reeling in costs amid continued inflationary pressures in Mexico. Moving to Kensington, the focus in the first quarter was on stabilizing the operation following the challenging 2023 as our multi-year investment in mine development continues. Mitch mentioned the positive results on that front, with that investment now about 71% complete for the current scope of the project. We are seeing a clear path to substantial mine life extension there, and perhaps more importantly, to the prospect of increased work phases underground and with it more consistent performance.

Mitchell J. Krebs: Mitch mentioned the positive results of my formed we've got investment model.

Mitchell J. Krebs: 71% complete scope of the project.

Mitchell J. Krebs: We're seeing a clear path to substantial mine life extension.

Mitchell J. Krebs: It's more important to the prospect of increased will citizens underground with a more consistent performance.

Mitchell J. Krebs: Lastly at Wharf results were ahead of plan this quarter benefiting from <unk>. Please don't reach.

Mitchell J. Krebs: <unk> seen them all of them. The first quarter is typically works most of the year. So we're particularly pleased to see after a good start in 2024.

Mitchell J. Krebs: Lastly, at war, results were ahead of plan, with the first quarter benefiting from timing events as placed on the agenda. Due to seasonality, the first quarter is typically the worst of the year, so we're particularly pleased to see the mine off to a good start in 2024. With three mains performing well and Rochester well positioned to complete the ramp-up, we remain comfortable with our 2024 production date. With that, I'll pass the call over to Thomas.

Mitchell J. Krebs: Lastly, at war, results were ahead of plan, with the first quarter benefiting from timing events as placed on the agenda. Due to seasonality, the first quarter is typically the worst of the year, so we're particularly pleased to see the mine off to a good start in 2024. With three mines performing well and Rochester well positioned to complete the ramp-up, we remain comfortable with our 2024 production date. With that, I'll pass the call over to Thomas.

Thomas: With three brands performing well walk just are well positioned to compete the waffle.

Thomas: I'm comfortable with that.

Thomas: For production guidance.

Thomas: With that I'll pass the cold over the top.

Thomas: Thanks, Nick.

Thomas: I'll touch briefly on our first quarter financial results before spending a moment discussing our financial position and balance sheet, including our plan to materially Delever beginning in the third quarter.

Thomas: As detailed on slide nine higher year over year gold production led to a 14% increase in consolidated revenue and a 76% increase in adjusted EBITDA.

Thomas S. Whelan: I'll touch briefly on our first quarter financial results before spending a moment discussing our financial position and balance sheet, including our plans to materially delever beginning in the third quarter. As detailed on slide 9, higher year-over-year gold production led to a 14% increase in consolidated revenue and a 76% increase in adjusted EBITDA, driven by the strong starts to the year at Palmorejo and Wharf, along with continued favorable metals prices. As expected, we had lower Q1 production at Rochester due to the decision to dismantle the Stage 4 crusher during 4Q2023. However, the dismantling of the Stage 4 crusher is now complete, which has provided access to higher grades from the Yankee.

Thomas S. Whelan: I'll touch briefly on our first quarter financial results before spending a moment discussing our financial position and balance sheet, including our plans to materially delever beginning in the third quarter. As detailed on slide 9, higher year-over-year gold production led to a 14% increase in consolidated revenue and a 76% increase in adjusted EBITDA, driven by the strong starts to the year at Palmorejo and Wharf, along with continued favorable metals prices. As expected, we had lower Q1 production at Rochester due to the decision to dismantle the Stage 4 crusher during 4Q2023. The dismantling of the Stage 4 Crusher is now complete, which has provided access to higher grades from the Yankee.

Thomas S. Whelan: And by the strong start to the year at Palmer, Reno and worth along with continued favorable metals prices.

Thomas S. Whelan: As expected, we had lower Q1 production at Rochester due to the decision to dismantle the stage four crusher during <unk> 2023.

Thomas S. Whelan: The dismantling of the stage four crusher is now complete which has provided access to higher grades from the Yankees.

Thomas S. Whelan: Turning to costs on slide 11, we continue to see moderating inflationary pressures across our U S. Operations. However, we are experiencing inflationary pressures in Mexico costs in Mexico has also been affected by the continued strong peso.

Thomas S. Whelan: Turning to costs on slide 11, we continue to see moderating inflationary pressures across our U.S. operations. However, we are experiencing inflationary pressures in Mexico, and costs in Mexico have also been affected by the continued strong pace.

Thomas S. Whelan: Operating cash flow during the quarter was impacted by two one time annual payments totaling $22 million.

Thomas S. Whelan: The annual EBITDA mining tax in Mexico, and the companywide 2023 annual incentive pads, along with the 8 million semiannual interest payment on our senior notes.

Thomas S. Whelan: Operating cash flow during the quarter was impacted by two one-time annual payments totaling $22 million, the annual EBITDA mining tax in Mexico and the company-wide 2023 annual incentive payouts, along with the $8 million semiannual interest payment on our senior note. Turning to the balance sheet, the company is poised for a sustained period of positive free cash flow following the successful ramp-up at Rochester, as Nick described earlier. Capital expenditures at Rochester were approximately $20 million during the first quarter, a $45 million decrease from the average quarterly Rochester CapEx in 2023, which contributed to the lowest quarterly capital expenditure level at Coeur since the fourth quarter of 2020.

Thomas S. Whelan: Turning to the balance sheet. The company is poised for a sustained period of positive free cash flow following the successful ramp up at Rochester and Memphis.

Thomas S. Whelan: Bribed earlier.

Thomas S. Whelan: Capital expenditures at Rochester, where approximately $20 million during the first quarter.

Thomas S. Whelan: $45 million decrease from the average quarterly Rochester, Capex in 2023, which contributed to the lowest quarterly capital expenditures level at course since the fourth quarter of 2020.

Thomas S. Whelan: As noted on slide 12, we ended the quarter with an improved net debt to EBITDA ratio of three two times and approximately $225 million drawn on our $400 million revolving credit facility.

Thomas S. Whelan: As noted on slide 12, we ended the quarter with an improved net debt to EBITDA ratio of 3.2 times and approximately $225 million drawn on our $400 million revolving credit facility. We would note that we do expect to draw further on the revolver during the second quarter as we await the breakthrough of silver ounces at Rochester. However, beginning in the third quarter, the company expects to begin aggressively paying down the revolver and our prepaid gold sales agreements as we drive towards achieving our long-term leverage targets of total debt to EBITDA of one times and net debt to EBITDA of nil.

Thomas S. Whelan: We would note that we do expect to drive further on the revolver during the second quarter as we await the breakthrough of silver ounces at Rochester, However, beginning in the third quarter the company expects to begin aggressively paying down the revolver.

Thomas S. Whelan: Our prepaid gold sales agreements as we drive towards achieving our long term leverage targets of total debt to EBITDA of one times and net debt to EBITDA now.

Thomas S. Whelan: While our work is not yet done we entered 2020 for a significantly stronger company with improving flexibility to fund our robust asset portfolio and maximize our potential in a strengthening commodity price environment.

Thomas S. Whelan: While our work is not yet done, we enter 2024 as a significantly stronger company with improving flexibility to fund our robust asset portfolio and maximize our potential in a strengthening commodity price environment. Two final important reminders. No ATM is currently in place or is being contemplated, and the company's remaining hedges roll off at the end of the second quarter commensurate with the Rochester ramp-up to full main plate capacity. I'll now pass the call to Aoife.

Thomas S. Whelan: Two final important reminders.

Aoife: No ATM is currently in place or is being contemplated and the company's remaining hedges roll off at the end of the second quarter commensurate with the Rochester ramp up to full nameplate capacity.

Aoife: I'll now pass the call to EBIT.

Thomas S. Whelan: Yeah.

Aoife: Thanks, Tom and good morning, everyone.

Aoife: To continue the good news story presented by Mitch, Mike and Tom exploration is off to a great start in 2024.

Aoife: Key highlights of this quarter is the drilling at Kensington, where the program is going very well and the rigs are over performing relative to but you said such edge.

Aoife Mairead McGrath: Thanks, Tom, and good morning, everyone. To continue the good news story presented by Mitch, Mick, and Tom, exploration is off to a great start in 2024. A key highlight of this quarter is the drilling at Kensington, where the program is going very well and the rigs are overperforming relative to budgeted footage. At Lower Kensington, the recently identified Zone 50 is being traced over additional strike length and is continuing to be a focus for exploration to add to mine life in the very near term.

Aoife Mairead McGrath: At lower Kensington.

Aoife Mairead McGrath: She identified zone 50 has been traced over additional strike length, and it's continuing to be a focus for exploration to add to mine life in the very near term.

Aoife Mairead McGrath: And up at Kensington at least have some already outlined pushing compelling Turkey continued to impress and excitingly potential for new parallel zones has recently been identified and is being investigated.

Aoife Mairead McGrath: In Upper Kensington, results from already outlined portions of Zone 30 continue to impress, and excitingly, potential for new parallel zones has recently been identified and is being investigated. At the nearby Elmira deposit, infill and extension drilling continue to intersect wide and rich zones, especially in the upper portions of the deposit. There is high confidence that inferred resources here will be converted this year.

Aoife Mairead McGrath: At the nearby my read deposit infill and extension drilling continue to intersect wise enriched zone, especially in the upper portions of the deposit.

Aoife Mairead McGrath: There is high confidence that inferred resources here will be converted this year.

Aoife Mairead McGrath: By the end of 'twenty 'twenty, four we anticipate extending mine life to approximately five years, representing roughly a doubling since the start of the program two years ago.

Aoife Mairead McGrath: At Rochester drilling commenced early in the second quarter with the program their designs to test high grade potential when raising kids identified structures around the Rochester pet.

Mitchell J. Krebs: By the end of 2024, we anticipate extending the mine life to approximately five years, representing roughly a doubling since the start of the program two years ago. At Rochester, drilling commenced early in the second quarter, with a program there designed to test high-grade potential on recently identified structures around the Rochester pit. Preparation work for drilling at Nevada Packard, located south of Rochester, is also well underway. At Silvertip, we began the year with a comprehensive project review that included one of the world's foremost carbonate replacement deposit experts.

Mitchell J. Krebs: Preparation work for drilling is Nevada, Patkars location South of Rochester is also well underway.

Aoife Mairead McGrath: At Rochester, drilling commenced early in the second quarter, with a program there designed to test high-grade potential on recently identified structures around the Rochester pit. Preparation work for drilling at Nevada Packard, located south of Rochester, is also well underway. At Silvertip, we began the year with a comprehensive project review that included one of the world's foremost carbonate replacement deposit experts. Significant leaps forward are being taken in our understanding of the controls for mineralization, and this new knowledge is guiding the planning for Coeur's busiest summer program ever.

Mitchell J. Krebs: At Silvertip, we began the year with a comprehensive project reviews. That's included as one of the world's foremost carbonaceous placement deposits expect significant leaps forward are being taken in our understanding of the controls to mineralization and this new knowledge is guiding the planning for Coors busiest summer program.

Mitchell J. Krebs: Ever.

Mitchell J. Krebs: Aimed to gel and much more aggressive step outs from known deposits and to identify high potential targets.

Mitchell J. Krebs: Significant leaps forward are being taken in our understanding of the controls for mineralization, and this new knowledge is guiding the planning for Coeur's busiest summer program ever. We aim to drill much more aggressive steppites from known deposits and to identify high-potential targets. Ultimately, the goal is to ensure rapid resource growth over the next few years in order to allow a restart decision on this world-class, high-grade deposit. At Palmarejo, our Aggressive 2024 programs are well underway, with the key focus being scout and expansion drilling across the district in order to fast-track the growth of our unfurled pipeline.

Mitchell J. Krebs: Ultimately the goal is to ensure rapid resource growth over the next few years in order to allow a restart decision on this world class high grade deposits.

Aoife Mairead McGrath: We aim to drill much more aggressive step-outs from known deposits and to identify high potential targets. Ultimately, the goal is to ensure rapid resource growth over the next few years in order to allow a restart decision on this world-class, high-grade deposit. At Palmarejo, our Aggressive 2024 programs are well underway, with the key focus being scout and expansion drilling across the district in order to fast track the growth of our unfurled pipeline.

Mitchell J. Krebs: I Palmeraie huh.

Mitchell J. Krebs: The rest of 2024 programs are well underway with a key focus being scarce and expansion drilling across the district in order to fast track the growth of our unfunded pipeline.

Mitchell J. Krebs: This will include scout drilling on three new targets.

Mitchell J. Krebs: The area burdened by the Franco Nevada stream.

Mitchell J. Krebs: At Wharf, we're finalizing preparations for brownfields drill programs aimed at adding very high return anchors to our mine life.

Mitchell J. Krebs: This will include scout drilling on three new targets outside the area burdened by the Franco-Nevada Stream. At Wharf, we're finalizing preparations for brownfield drill programs aimed at adding very high-return ounces to our mine life. With that, I'll hand the call back.

Aoife Mairead McGrath: This will include scout drilling on three new targets outside the area burdened by the Franco-Nevada Stream. At Wharf, we're finalizing preparations for brownfield drill programs aimed at adding very high-return ounces to our mine life. With that, I'll hand the call back.

Mitchell J. Krebs: With that I'll hand, the call back to Mitch.

Speaker Change: Thanks Eva.

Speaker Change: Before moving to the Q&A I want to quickly highlight slide 13.

Mitchell J. Krebs: Summarizing our top priorities for the remainder of the year.

Mitchell J. Krebs: Following seemingly every conceivable challenge thrown our way we've arrived at this inflection point that we've been working toward for almost four years.

Mitchell J. Krebs: Before moving to the Q&A, I want to quickly highlight slide 13 that summarizes our top priorities for the remainder of the year. Following seemingly every conceivable challenge thrown our way, we've arrived at this inflection point that we've been working toward for almost four years, with the Safe Ramp-Up and Optimization Initiatives at Rochester remaining job one. We will continue pursuing the opportunities at our other assets I mentioned earlier. As we reach the free cash flow inflection point in the second half, we look forward to beginning the deleveraging process and ending the year with a lot of momentum as we head into what should be a very strong 2025.

Mitchell J. Krebs: With the safe ramp up and optimization initiatives at Rochester remaining job one.

Mitchell J. Krebs: We will continue pursuing the opportunities at our other assets I mentioned earlier.

Mitchell J. Krebs: As we reach the free cash flow inflection point in the second half we look forward to beginning the deleveraging process and ended the year with a lot of momentum as we head into what should be a very strong 2025.

Mitchell J. Krebs: Our U S centric exclusively north American precious metals assets offer investors a unique investment proposition that is extremely well positioned for success.

Mitchell J. Krebs: Particularly in this current metals price environment.

Mitchell J. Krebs: Our U.S.-centric, exclusively North American precious metals assets offer investors a unique investment proposition that is extremely well-positioned for success, particularly in this current metals price environment and with silver's supply-demand fundamentals now better than I've ever seen them. With that, let's go ahead and open it up for questions. We will now begin the question.

Mitchell J. Krebs: Our US-centric, exclusively North American precious metals assets offer investors a unique investment proposition that is extremely well-positioned for success, particularly in this current metals price environment and with silver's supply-demand fundamentals now better than I've ever seen them. With that, let's go ahead and open it up for questions. We will now begin the question.

Mitchell J. Krebs: And with silver supply demand fundamentals now better than I've ever seen them.

Mitchell J. Krebs: With that let's go ahead and open it up for questions.

Mitchell J. Krebs: Yeah.

Mitchell J. Krebs: We will now begin the question and answer session.

Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys to.

Mitchell J. Krebs: To withdraw a question. Please press Star then two.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-toned phone. If you are using a speakerphone, please pick up your handset before pressing the key. And to withdraw a question, please press star, then 2. At this time, we will pause just momentarily to assemble our roster, and our first question will come from Michael Dudas of Vertical Research Partners. Please go ahead.

Operator: At this time, we will pause momentarily to assemble our roster.

Operator: And our first question will come from Michael Dudas with vertical research partners. Please go ahead.

Michael Stephan Dudas: Hi, good morning, Mitch and team.

Michael Stephan Dudas: Hi, Mike.

Michael Stephan Dudas: I have three quick questions first Mitch relative to Rochester, It seems like things are going quite well we hit some milestones.

Michael Stephan Dudas: Good morning Mitch and team. Bye, Mike. I have three quick questions. First, Mitch, relative to Rochester, it seems like things are going quite well. You're hitting some milestones. As you reach these end of second quarter milestones and look at the second half, how do you feel relative to productivity, to, you know, getting kind of a more normalized basis on this mine given all the changes that have occurred the last three years?

Michael Stephan Dudas: Good morning Mitch and team. Bye, Mike. I have three quick questions. First, Mitch, relative to Rochester, it seems like things are going quite well. You're hitting some milestones. As you reach these end of second quarter milestones and look at the second half, how do you feel relative to productivity, to getting kind of a more normalized basis on this mine, given all the changes that have occurred the last three years or so?

Michael Stephan Dudas: As you reached in the second quarter milestones and looking at the second half how do you how do you feel relative to productivity to you know getting kind of a more normalized basis on this mind given all the changes that have occurred last the last three years or so.

Michael Stephan Dudas: Yeah.

Speaker Change: I'll hand that one over to make in a second but I think it's fair to say that we get into the second half of the year at that run rate of around 88000 tons a day there'll.

Michael Stephan Dudas: There'll still be a lot of optimization work to do particularly around crush size and making sure we get.

Mitchell J. Krebs: I'll hand that one over to Mick in a second, but I think it's fair to say that if we get into the second half of the year at that run rate of around 88,000 tons a day, there'll still be a lot of optimization work to do, particularly around crush size and making sure we get to where we want to get there in terms of more of a 5-8-inch average product size out there on the new Stage 6 le So there'll be some dialing in to be done, but we'll still see that pretty significant drop in our cost structure, driven mostly by the volume pickup, and then hopefully, we'll be heading into 2025 with some of those tweaks behind us and set up to see even some further improvements on the productivity and cost side. Mick, did I leave anything for you?

Mitchell J. Krebs: I'll hand that one over to Mick in a second, but I think it's fair to say that if we get into the second half of the year at that run rate of around 88,000 tons a day, there'll still be a lot of optimization work to do, particularly around crush size and making sure we get to where we want to get there in terms of more of a five-eighths inch average product size out there on the new So there'll be some dialing in to be done, but we'll still see that pretty significant drop-off in our cost structure, driven mostly by the volume pickup, and then hopefully, we'll be heading into 2025 with some of those tweaks behind us and set up to see even some further improvements on the productivity and cost side. Mick, did I leave anything for you?

Mick: To where we want to get there in terms of more of a five eighths inch Ah <unk>.

Mitchell J. Krebs: Average.

Mick: Product size out there onto the new stage six leach pad, so there'll be some some dialing in to be done.

Mick: But we will still see that you know pretty significant drop off in our cost structure, driven mostly by the volume pick up.

Mick: And then hopefully we'll be heading into 2025 with some of those tweaks are behind us and set up to see even further improvements on the productivity and cost side.

Mick: Did I leave anything for for you a little bit it's great Q.

Mick: Q2 is really about getting the open beta steadily running on average and its an average return yet so we're already seeing up and down a little bit higher than that which gives us good opportunity to really study that read out the data itself.

Mitchell J. Krebs: A little bit. No, it's great.

Mick: So second half of the year at which point when we dial in the criticize if you remember the technical report was five years.

Mitchell J. Krebs: Q2 is really about getting up and being steadily running at that average rate, and it's an average rate of 88. So we're already seeing that we're going to run a little bit higher than that, which gives us a good opportunity to really steady that rate out at 88,000 tons for the second half of the year. At which point, when we dial in the crush size, if you remember, the technical report was 5.8, and we're seeing signs of that and some confidence that we should be able to dial in that 5.8 crush size.

Mitchell J. Krebs: Q2 is really about getting up and being steadily running at that average rate, and it's an average rate at 88. So we're already seeing that we're going to run a little bit higher than that, which gives us that good opportunity to really steady that rate out at 88,000 tonnes for the second half of the year, at which point when we dial in the crush size, if you remember, the technical report was five-eighths, and we're seeing signs of that, and some confidence that we should be able to dial into that five-eighths crush size.

Mitchell J. Krebs: So you can say you thought.

Mitchell J. Krebs: And some confidence that we should be able to designate for about five years for size. We don't know exactly how quickly, but we certainly expect that to be designated well through the second half.

Mitchell J. Krebs: This year.

Mitchell J. Krebs: Then it's not all.

Mitchell J. Krebs: It comes together then we should learn that Recoups and we should see the performance that we expected to see.

Mitchell J. Krebs: We don't know exactly how quickly, but we certainly expect that to be dialed in well through the second half of this year. And then, if that all comes together, then we should land on one of our recovery curves, and we should see the performance that we expected to see.

Speaker Change: Thanks for that secondly, regarding Palmeraie al I'm encouraged about some of the activity Youre doing there on the exploration front the.

Mitchell J. Krebs: Going on on some of the opportunities outside the royalty boundary, which would be very helpful. Given where current coal prices are do you see some interesting opportunities in line of sight, there to kind of work that through over the next couple of years into into the mine plant.

Mitchell J. Krebs: Thanks for that. Secondly, regarding Palmareo, I'm encouraged about some of the activity you're doing there on the exploration front. The thought of some of the opportunities outside the royalty bounty, which would be very helpful given where current gold prices are. Do you see some interesting opportunities in line of sight there to kind of work those through over the next couple years into the mine plans?

Mitchell J. Krebs: Thanks for that. Secondly, regarding Palmoreo, I'm encouraged about some of the activity you're doing there on the exploration front. The thought of some of the opportunities outside the royalty bounty, which would be very helpful given where current gold prices are. Do you see some interesting opportunities in line of sight there to kind of work those through over the next couple years into the mine plans?

Speaker Change: Yeah, Yeah, we share your excitement.

Mitchell J. Krebs: They're kind of in my mind are sort of three.

Mitchell J. Krebs: Levels of opportunities there there's the.

Mitchell J. Krebs: Extensional stuff that's right.

Mitchell J. Krebs: Yeah, we share your excitement. In my mind, there are sort of three levels of opportunities there. There's the extensional stuff that's right to the east of that Franco-Nevada property line or the AOI boundary, and those are extensions of things like Nacion and Independencia, where we are currently mining. So those represent more of a near-term opportunity. And then if you skip over further to the east, the company we acquired back in 2015, Paramount Gold and Silver, which gave us all that land over there to the east, they had a large resource in what's called the Guadalupares area.

Mitchell J. Krebs: Yeah, we share your excitement. In my mind, there are sort of three levels of opportunities there. There's the extensional stuff that's right to the east of that Franco-Nevada property line or the AOI boundary, and those are extensions of things like Nacion and Independencea, where we are currently mining. Those represent more of a near-term opportunity. And then if you skip over further to the east, the company we acquired back in 2015, Paramount Gold & Silver, which gave us all that land over there to the east, they had a large resource in what's called the Guadalupares area.

Mitchell J. Krebs: Hmm.

Mitchell J. Krebs: To the east of that Franco Nevada prop.

Mitchell J. Krebs: Property line or the the ally boundary and those are extensions of things like nausea, one in Independencia, where we're currently mining so those represent more kind of near term.

Mitchell J. Krebs: <unk> opportunities.

Mitchell J. Krebs: Then if you skip over further to the east.

Mitchell J. Krebs: Company, we acquired back in 2015, Paramount Gold and silver, which gave us all that land over there to the east they had a large.

Mitchell J. Krebs: Resource over in what's called the glass of Paris area. So I think with in the medium term, we look at that as an opportunity to get in there between some of that historical drilling.

Mitchell J. Krebs: And get a resource onto our books in the medium term and then longer term in between those two.

Mitchell J. Krebs: So I think in the medium term, we look at that as an opportunity to get in there, double some of that historical drilling, and get a resource on our books in the medium term. And then, longer term, in between those two, our team has been busy out there sampling and mapping and developing some drill targets that we think represent some big longer-term opportunities to add new sources of production out there to the east. Aoife, anything you want to add to that?

Mitchell J. Krebs: Our team has been busy out there sampling and mapping and developing some drill targets that we think represents some some big longer term opportunities to add new new sources of production.

Mitchell J. Krebs: Out there to the east.

Mitchell J. Krebs: People.

Aoife: Thank you want to add to that.

Aoife: No I think it's pretty much covered it but yeah I think there's.

Aoife: There are definitely short medium and long term opportunities out there.

Aoife: Alright, that's it.

Aoife: It's it didn't think in case I suppose in exploration until the work is actually the basically go out and work is done don't fully understood understand the perspective, and we've been really busy over the last two years getting that lapping I'm, saying and as we get to understand the aerie entity slot more we're seeing the same level of productivity, especially been higher.

Aoife Mairead McGrath: I think you've pretty much covered it, Mitch, but yeah, there are definitely short, medium, and long-term opportunities out there. And just to reiterate that it's a typical case, I suppose, in exploration; until the basic groundwork is done, you don't fully understand the prospectivity. And we've been really busy over the last two years doing that mapping and sampling, and as we get to understand the area to the east a lot more, we're seeing the same level of prospectivity, if not even higher in places than we see on the project. So we're very happy with how that's progressed.

Mitchell J. Krebs: I think you've pretty much covered it, Mitch, but yeah, there are definitely short, medium, and long-term opportunities out there. And just to reiterate that it's a typical case, I suppose, in exploration; until the work is actually, the basic groundwork is done, you don't fully understand the prospectivity. And we've been really busy over the last two years doing that mapping and sampling. And as we get to understand the area to the east a lot more, we're seeing the same level of prospectivity, if not even higher in places than we see on the project. So we're very happy with how that's progressed.

Mitchell J. Krebs: Let me see him on the project and we're very happy with how that's progressing.

Speaker Change: I appreciate that Mike just my third finish up here.

Mitchell J. Krebs: Good to see that the hedging grow off here in Q2.

Mitchell J. Krebs: Given where prices are and maybe <unk>.

Speaker Change: Further what are your thoughts on any hedging potential going forward and what would be the rationale behind doing it not to doing that.

Mitchell J. Krebs: Appreciate that. And just my third to finish up here. Good to see the hedging grow off here in Q2. Given where prices are and maybe even further, what are your thoughts on any hedging potential going forward and what would be the rationale behind doing it?

Mitchell J. Krebs: Appreciate that. And just my third to finish up here. Good to see the hedging grow off here in Q2. Given where prices are and maybe further, what are your thoughts on any hedging potential going forward and what would be the rationale behind doing it?

Mitchell J. Krebs: Yeah.

Speaker Change: Our thinking there Mike right now as you know, we we had a we've had hedges in.

Mitchell J. Krebs: <unk> during the construction of the Rochester expansion to serve as sort of our.

Mitchell J. Krebs: Yeah, our thinking there, Mike, right now is that we've had hedgers in place during the construction of the Rochester expansion to serve as sort of an insurance policy, in essence, as we've gone through this period of capital intensity. For now, we have nothing, as you pointed out, beyond the end of the second quarter and don't have any current plans to add anything, at least as we sit here today, but, Tom, anything you want to say? No, I think, yeah, that's correct. People understood the need, both from our equity holders as well as our creditors, understood the importance of hedging, but they had no plans to hedge once the ramp-up is complete. Excellent Thanks.

Mitchell J. Krebs: Yeah, our thinking there, Mike, right now is that we've had hedges in place during the construction of the Rochester expansion to serve as sort of an insurance policy, in essence, as we've gone through this period of capital intensity. For now, we have nothing, as you pointed out, beyond the end of the second quarter and don't have any current plans to add anything, at least as we sit here today, but Tom, anything you want to say?

Mitchell J. Krebs: Insurance policy in essence.

Tom: As we've gone through this period of capital intensity.

Tom: For now we have nothing as you pointed out beyond the end of the second quarter and don't have any current plans to add anything.

Mitchell J. Krebs: At least as we sit here today, but Tom anything you want to know.

Tom: Yeah, that's that's correct.

Tom: People understand the need both upfront alright.

Tom: Alright equity holders as long as there.

Tom: Our creditors understood the importance of hedging, but no plans to hedge.

Mitchell J. Krebs: No, I think, yeah, that's correct. People understood the need, both from our equity holders as well as our creditors, understood the importance of hedging, but they had no plans to hedge once the ramp-up is complete. Excellent. Thanks.

Tom: When thats complete.

Speaker Change: Excellent. Thank you everyone.

Speaker Change: Okay. Thanks, Mike.

Mitchell J. Krebs: And our next question will come from Mike Parkin with National Bank. Please go ahead.

Speaker Change: Hi, guys.

Michael Stephan Dudas: Excellent. Thank you, everyone.

Speaker Change: Hey, Mike.

Mitchell J. Krebs: Going so well thanks, how are you.

Speaker Change: Okay. Thanks.

Michael Parkin: And our next question will come from Mike Parkin with National Bank. Please go ahead. All right, guys.

Michael Parkin: And our next question will come from Mike Parkin with National Bank. Please go ahead.

Speaker Change: A couple of questions, mostly tied to Rochester, a couple of other questions were answered already.

Michael Parkin: Hi guys, nice to hear that Rochester is going so well. Thanks, how are you?

Michael Parkin: Hi guys, nice to hear the process is going so well. Thanks, how are you?

Michael Parkin: First line of questioning.

Michael Parkin: With Nevada.

Michael Parkin: Okay, thanks. A couple questions, mostly tied to Rochester. A couple other questions were answered already on the first line of questioning. With Nevada, you know, Barrick seems to certainly talk about labor tightness. Is that something you're seeing at Rochester, or are you guys managing pretty well on staffing?

Michael Parkin: Okay, thanks. Just a couple questions, mostly tied to Rochester. A couple other questions were answered already on the first line of questioning. With Nevada, Barrick seems to certainly talk about labor tightness. Is that something you're seeing at Rochester, or are you guys managing pretty well on staffing?

Michael Parkin: Barrick seems to certainly talked about labor tightness is that something.

Michael Parkin: Youre seeing at Rochester or are you guys.

Speaker Change: Managing pretty well on staffing.

Speaker Change: Yeah, we were just talking about that earlier this morning, Mike.

Speaker Change: We have had to had to add some people out there with this expansion, although not not that many and the team has not had.

Mitchell J. Krebs: Yeah, we were just talking about that earlier this morning, Mike. We have had to add some people out there with this expansion, although not that many, and the team has not had an extremely difficult time filling those roles. I'd say where we do see things similar to Nevada gold mines is in some of those skilled trades that I think not only mining but other industries are challenged to find electricians, mechanics, welders, things like that.

Mitchell J. Krebs: Yeah, we were just talking about that earlier this morning, Mike, that... We have had to add some people out there with this expansion, although not that many, and the team has not had an extremely difficult time filling those roles. I'd say where we do see things similar to Nevada gold mines is in some of those skilled trades that I think not only mining but other industries are challenged to find electricians, mechanics, welders, things like that.

Michael Parkin: An extremely difficult time filling those roles I'd say, where we do see.

Mitchell J. Krebs: Things similar.

Mitchell J. Krebs: To Nevada Gold mines is in some of those skilled trades that I think not only mining, but other industries are challenged to find electricians mechanics, welders things like that that that is.

Mitchell J. Krebs: More challenging part of the of the labor pool, but in terms of what we've had to.

Mitchell J. Krebs: Do at Rochester, We've had a lot of success on the labor front, Nick anything you want to add to that yes.

Mitchell J. Krebs: That's a more challenging part of the labor pool. But in terms of what we've had to do at Rochester, we've had a lot of success on the labor front. Nick, anything you want to add to that? Yeah, I mean,

Mitchell J. Krebs: Super efficient expansion of course on a 20% increase in head count and that 20%, we managed to get those folks all around the theory to support the operational readiness program and that's why we really saw.

Mitchell J. Krebs: We're having a super efficient expansion, of course, only a 20% increase in the headcount. And that 20%, we managed to get those folks all on early to support the operational readiness program. And that's why we really saw that commissioning and this ramp up going so well; everyone was really conversant with the project. And now we're just seeing really quite typical turnover. I mean, everywhere, specialist skills like electrical; you sometimes wait a little bit longer to get the right person on the team. But otherwise, we're not seeing anything that's really given cause for a lot of concern.

Mitchell J. Krebs: Super efficient expansion, of course, only a 20% increase in the headcount, and that 20% we managed to get those folks all on early to support the operational readiness program, and that's why we really saw that commissioning and this ramp up going so well; everyone was really conversant with the project, and now we're just seeing really quite typical turnover. I mean, everywhere, specialist skills like electrical, you sometimes wait a little bit longer to get the right person on

Nick: That commission in this ramp of goods well, everyone was really consistent with the project and now what you're seeing really quite typical turnover I mean everywhere specialist skill looks like electrical you, sometimes and we had a little bit longer to get the right person on the team, but otherwise we don't see anything that's really getting a lot of <unk>.

Mitchell J. Krebs: So.

Mitchell J. Krebs: Lot of excitement out there as you can imagine Mike long.

Mitchell J. Krebs: Good long mine life.

Mitchell J. Krebs: Good culture long track record out there.

Mitchell J. Krebs: In the community.

Mitchell J. Krebs: It.

Mitchell J. Krebs: A lot of excitement out there, as you can imagine, good long mine life, good culture, and a long track record in the community, so it has a lot going for it, and it's a place people enjoy working. We've got a lot going for us out there.

Mitchell J. Krebs: It has a lot going for it and it's a place people enjoy working so well.

Mitchell J. Krebs: We've got a lot going for us out there.

Speaker Change: I guess, that's an excellent point your honor.

Mitchell J. Krebs: On a relative basis, you're a lot better to commute two versus a lot of the Nevada gold mines operations.

Mitchell J. Krebs: But in terms of like location relative to our local communities with decent sized labor forces.

Mitchell J. Krebs: I guess that's an excellent point. On a relative basis, you're a lot better to commute to versus a lot of the Nevada gold mines operation, in terms of like location relative to local communities with a decent-sized labor force.

Speaker Change: No fair point, and we bring people from a lot of different directions than otherwise.

Mitchell J. Krebs: Probably couldn't or wouldn't make the drive all the way over to the east there.

Mitchell J. Krebs: Around I'll call it the Lovelock area Persian counties, a little bit more centrally located up there in the northern part of the state so.

Mitchell J. Krebs: Now, fair point, you know, we bring people from a lot of different directions that otherwise probably couldn't or wouldn't make the drive all the way over further to the east there around Elko. The Lovelock area, Pershing County's a little bit more centrally located up there in the northern part of the state, so. A fair number of our workforce comes from further to the west and to the southwest, Fallon, places like that.

Mitchell J. Krebs: Now, fair point, you know, we bring people from a lot of different directions that otherwise would not have been able to employ them. A fair number of our workforce comes from further to the west and to the southwest, Fallon, places like that.

Mitchell J. Krebs: A fair number of our workforce comes from from.

Mitchell J. Krebs: From further to the west and to the southwest Val and places like that.

Speaker Change: Alright, okay.

Mitchell J. Krebs: And then you guys took down the old crushing circuit access better grades.

Mitchell J. Krebs: Can you give us a sense in terms of what you would expect to be stacking on a blended grade basis is that something that will improve.

Mitchell J. Krebs: All right, okay. And then you guys took down the old crushing circuit to access better grades. Can you give us a sense in terms of what you'd expect to be stacking on a blended grade basis? Is that something that will improve over the course of the year, or should that be fairly steady?

Mitchell J. Krebs: Right, okay. And then you guys took down the old crushing circuit to access better grades. Can you give us a sense in terms of what you'd expect to be stacking on a blended grade basis? Is that something that will improve over the course of the year, or should that be fairly steady?

Mitchell J. Krebs: Over the course of the year or should that be fairly steady state.

Mitchell J. Krebs: Yeah.

Mitchell J. Krebs: Well this year now that we're into that area under the old accident that we call Yankee a Yankee pit Yankee zone. It does have some higher grade materially material, particularly on the silver side and that was one of the big incentives for getting in there and getting that ex pit removed.

Mitchell J. Krebs: Well, this year, now that we're into that area under the old X-Pit that we call Yankee, the Yankee Pit, Yankee Zone, does have some higher-grade material, particularly on the silver side. And that was one of the big incentives for getting in there and getting that X-Pit removed when we did, so that we could start prepping that area so that we could be in there here in 2024 from a mining standpoint, which we are, and those grades seem to be as advertised.

Mitchell J. Krebs: When we did so that we could start prepping that area. So that we could be in there here in 2024 from a mining standpoint, which we are in and those grades seem to be.

Mitchell J. Krebs: As advertised and so this year you will see a little bit on the on the silver a kick on the silver gold or silver grade profile relative to the outer years as a result of being in that.

Mitchell J. Krebs: Yankee here yet.

Mitchell J. Krebs: And so, this year, you will see a little bit on the silver, a kick on the silver gold or silver grade profile relative to other years as a result of being in that Yankee area. Mike, did I miss anything there? No, spot on. The gold grade is inherently low at Rochester, right? So we'll see that that isn't changing too much, but we're getting a decent kick, at least in the short term, from the Yankee area for silver, which we're looking forward to seeing coming through the pike.

Mitchell J. Krebs: Okay.

Mitchell J. Krebs: If anything their notes split on the gold grade is inherently low Rochester right. So we'll see.

Speaker Change: Isn't changing too much.

Mike: We're getting a decent kick in at least in the short term from Yankee area for silver, which one we're looking forward to seeing coming through the pipe.

Mitchell J. Krebs: The gold grid is inherently low at Rochester 8, so we'll see that that isn't changing too much, but we're getting a decent kick, at least in the short term, from the Yankee area for silver, which we're looking forward to seeing coming through the pike.

Speaker Change: And then on your Leach curves, usually golds, obviously steeper than silver on a heat when when do you expect to kind of achieve steady state recovery.

Speaker Change: Right or you know call it within the.

Mitchell J. Krebs: And then on your leach curves, usually gold's obviously steeper than silver on a heap. When would you expect to kind of achieve a steady state recovery? Rate or call it within the 90th percentile or 95th percentile; you're going to get up to maximum throughput around quarter end. Would it be fair to assume it takes a couple more quarters? After that, so kind of starting in 2025, you probably will see silver recovery stabilizing at that point.

Speaker Change: The 19th percentile 97 percentile.

Mitchell J. Krebs: You know you're going to get up to maximum throughput around quarter end would it be fair to assume it takes a couple more quarters.

Mitchell J. Krebs: After that so kind of starting in 2025, you'd probably see silver recoveries stabilizing at that point.

Speaker Change: Yes, great question.

Mitchell J. Krebs: In the third quarter when we.

Speaker Change: On this call to talk about third quarter, and we will have.

Mitchell J. Krebs: Some data to talk about and then obviously with in conjunction with our year end, we'll have a lot more.

Mitchell J. Krebs: Yeah, great question. Probably in the third quarter when we are on this call to talk about the third quarter, we'll have some data to talk about. And then obviously, in conjunction with our year end, we'll have a lot more visibility to share and talk about. But, Mick, you want to talk a little bit about the curves and reaching kind of steady state? Yeah, and I think...

Mitchell J. Krebs: Yeah, great question. Probably in the third quarter when we are on this call to talk about the third quarter. We'll have. [inaudible]

Mitchell J. Krebs: Visibility to share and talk about but Nick do you want to talk a little bit.

Mick: Curves and reaching kind of a steady state yeah, and I think you nailed it exactly the ghouls curve, we're going to see where we land.

Mick: The second half of this year and silver curve, we will steady and we expect to be steady on both silver and gold through 2025.

Mitchell J. Krebs: Yeah, I think you nailed it exactly. The gold curve. We're going to see where we land in the second half of this year. And the silver curve really will steady out, and we expect it to be steady on both silver and gold through 2025.

Mitchell J. Krebs: Yeah, and I think you nailed it exactly. The gold curve. We're going to see where we land in the second half of this year. And the silver curve really will steady out, and we expect it to be steady on both silver and gold through 2025.

Mick: Okay. Thanks, very much guys and all the best with the final ramp up.

Mick: Yeah. Thanks, a lot Mike appreciate it.

Mitchell J. Krebs: Yeah.

Mitchell J. Krebs: Our next question will come from Kevin O'halloran with BMO capital markets. Please go ahead.

Michael Parkin: Thanks very much, guys, and all the best with the final ramp-up.

Michael Parkin: Super. Thanks very much, guys, and all the best with the final ramp up.

Speaker Change: Hey, Mitch and team thanks for taking my question.

Mitchell J. Krebs: Yeah, thanks a lot, Mike. I appreciate it.

Speaker Change: Yeah, I gave you just us.

Kevin O'halloran: Our next question will come from Kevin O'Halloran with BMO Capital Markets. Please go ahead.

Speaker Change: Hey, maybe just a first one on the LCM adjustment at Rochester, You mentioned there was a positive revaluation on some of the legacy Leach pads was that included in this Q1 LCM adjustment or is that something we should be looking for in future quarters.

Kevin O'halloran: Hey Mitch and team, thanks for taking my question. Yeah, I can. Hey, hey, maybe just the first one on the LCM adjustment at Rochester. You mentioned there was a positive revaluation on some of the legacy leach pads. Was that included in this Q1 LCM adjustment, or is that something we should be looking for in future quarters?

Kevin O'halloran: Hey Mitch and team, thanks for taking my question. Yeah, I can. Maybe just the first one on the LCM adjustment at Rochester. You mentioned there was a positive revaluation on some of the legacy leach pads. Was that included in this Q1 LCM adjustment, or is that something we should be looking for in future quarters?

Kevin O'halloran: Tom you want to take that yeah.

Speaker Change: So yeah.

Speaker Change: We added.

Kevin O'halloran: Approximately 900000 ounces of silver and 6000 ounces of gold. So we actually updated our model is a change in estimate.

Thomas S. Whelan: Tom, do you want to take that? Yeah.

Tom: <unk> recorded that in the first quarter. So the LCM would've been actually much higher had we not made that adjustment, but again the teams had gathered enough data in there.

Thomas S. Whelan: So, we added approximately 900,000 ounces of silver and 6,000 ounces of gold. So we actually updated our model as a change in estimate, and we recorded that in the first quarter. So the LCM would actually have been much higher had we not made that adjustment, but again, the team had gathered enough data, and we felt confident that the recovery curves on the historic pads supported that the higher the higher amount of gold and silver that we're expecting to see here in 24. So I hope that made sense.

Thomas S. Whelan: Confident that.

Thomas S. Whelan: Recovery curves on the historic pads are supported that that the higher the <unk>.

Thomas S. Whelan: Amount of gold and silver that we're expecting to see here in 'twenty four so hope that makes sense.

Speaker Change: Yeah No. That's that's helpful for sure do you do you have a sense of where that number would have been without the positive offset or maybe even just more broadly what should we be looking for going forward on on the LCM.

Thomas S. Whelan: Yeah, no that's helpful for sure. Do you have a sense of where that number would have been without the positive offset or maybe even more broadly, what should we be looking for going forward with the LCM?

Kevin O'halloran: Yeah, no that's helpful for sure. Do you have a sense of where that number would have been without the positive offset or maybe even more broadly, what should we be looking for going forward with the LCM?

Speaker Change: Yeah look.

Kevin O'halloran: It would it would have added in the $10 million to $12 million range benefit. So we wouldn't have otherwise had a larger L. P M.

Kevin O'halloran: The question I always get is that so this is this it for LCM.

Thomas S. Whelan: Yeah, look, it would have added in a 10 to $12 million range benefit. So we would have otherwise had a larger LCM. You know, the question I always get is, so is this it for LCM?

Speaker Change: I'd like to hedge a little bit just to give me.

Thomas S. Whelan: The bandwidth to get this ramped up done safely and make sure things go really smoothly could we have one in the second quarter, maybe it depends on pricing silver silver prices are how fast we start to see some of that.

Thomas S. Whelan: I'd like to hedge a little bit, just to give Nick the bandwidth to get this ramp up done safely and make sure things go really smoothly. Could we have one in the second quarter? Maybe. Depends on prices, silver prices, how fast we start to see some of that silver come through. But certainly, Q3 forward, absolutely. We're out of the LCM business.

Thomas S. Whelan: Silver come through.

Thomas S. Whelan: But certainly Q3 forward, absolutely, where we're out of the LCM business.

Speaker Change: Okay, great. Thanks for that.

Thomas S. Whelan: And maybe you guys touched already on on the higher grades under the ex pit crusher at Rochester, but can you maybe comment more broadly on where you're seeing or what are you looking for upside at Rochester in terms of the grade profile, maybe sort of beyond this year.

Kevin O'halloran: Okay, great, thanks for that. Maybe you guys touched already on the higher grades under the XPIC crusher at Rochester, but can you maybe comment more broadly on where you're seeing or where you're looking for upside at Rochester in terms of the grade profile, maybe sort of beyond this year?

Kevin O'halloran: Okay, great. Thanks for that. Maybe you guys touched already on the higher grades under the XPIC crusher at Rochester, but can you maybe comment more broadly on where you're seeing or where you're looking for upside at Rochester in terms of the grade profile, maybe sort of beyond this year?

Speaker Change: Yeah, no great question.

Speaker Change: In 2024 are bunch of it out there is somewhere around $9 million.

Kevin O'halloran: For Rochester, which is a big increase relative to recent periods when we've been more focused on that.

Mitchell J. Krebs: Yeah, no, great question. We In 2024, our budget out there is somewhere around $9 million for Rochester, which is a big increase relative to recent periods when we've been more focused on the construction of the expansion. Go back to the mid-1980s at Rochester. When the Rochester pit was first identified, the blinders were put on, I think, and all focus was on that structure and that deposit and, ultimately, that project. Only in the last few years have the blinders been taken off, and we've started to look more regionally.

Mitchell J. Krebs: Yeah, no, great question. We In 2024, our budget out there is somewhere around $9 million for Rochester, which is a big increase relative to recent periods when we've been more focused on the construction of the expansion. If you go back to the mid-1980s at Rochester, when the Rochester pit was first identified, the blinders were sort of put on, I think, and all focus was on that structure and that deposit and, ultimately, that project. And only in the last few years have the blinders kind of been taken off, and we've started to look more regionally.

Kevin O'halloran: On the construction of the expansion.

Mitchell J. Krebs: You go back to the mid eighties at Rochester.

Mitchell J. Krebs: When the Rochester pit was first identified the blinders were sort of put on I think and I'll focus was on that.

Mitchell J. Krebs: Structure in that deposit and ultimately that project and only in the last.

Mitchell J. Krebs: Few years has to have the blinders kind of been taken off and we started to look more regionally you might recall, we added almost double of our land position out there when we acquired a lot of the land off to the tune of west from Alio gold.

Mitchell J. Krebs: You might recall we added, almost doubled our land position out there when we acquired a lot of the land off to the west from Aleo Gold a few years ago. Aoife came into the picture here a couple of years ago and has really helped accelerate our thinking around where some higher-grade material could be on our existing land package. I'll turn it over to her in a second.

Mitchell J. Krebs: You might recall we almost doubled our land position out there when we acquired a lot of the land off to the west from Allio Gold a few years ago. Aoife came into the picture here a couple of years ago and has really helped accelerate our thinking around where some higher-grade material could be on our existing land package. I'll turn it over to her in a second.

Mitchell J. Krebs: A few years ago. So Eva came into the picture here couple of years ago, and has really helped accelerate our thinking around where some higher grade material could be on our existing land package and I'll turn it over to her in a second but.

Aoife: Most of the focus right now is really.

Aoife: On the eastern.

Aoife: <unk> of the existing pit one area, we called East Rochester.

Mitchell J. Krebs: And then about three or four or five miles to the south of the Rochester is a historic mining area called Nevada Packard.

Mitchell J. Krebs: Most of the focus right now is really on the eastern side of the existing pit, an area we call East Rochester. And then about three, four, five miles to the south of the Rochester pit is a historic mining area called Nevada Packard. There's going to be some drilling down there as well, where we think there's some potential for some higher grades. And then between those two, from the Rochester pit down to Nevada Packard. There's a lot of opportunity, and untapped potential there that we'll start to investigate going forward. Aoife, did I steal all your thunder, or is there anything else you want to highlight?

Mitchell J. Krebs: Most of the focus right now is really on the eastern side of the existing pit in an area we call East Rochester. And then about three, four, five miles to the south of the Rochester pit is a historic mining area called Nevada Packard. There's going to be some drilling down there as well, where we think there's some potential for some higher grades. And then between those two, from the Rochester pit down to Nevada Packard. There's a lot of opportunity, and untapped potential there that we'll start to investigate going forward. Aoife, did I steal all your thunder, or is there anything else you want to highlight?

Aoife: There's going to be some drilling down there as well, where we think there's some potential for some higher grade and then between those two from the Rochester pit down to Nevada Packard Theres, a lot of opportunity untapped potential there that will start to.

Aoife: Investigate going forward.

Aoife: If it did I steal all your Thunder or is there anything else you want to highlight.

Aoife: Yeah, that's that's that suggests that.

Speaker Change: But Chad just to me yesterday that 16 is from those two pets.

Aoife: And that's it's not going to let you know we have that much mine life ahead of it.

Aoife Mairead McGrath: That's about the gist of it. Just to reiterate that the 16-year mine life really is from those two pits. It's phenomenal that we have that much mine life ahead of us, and we're beginning to look more seriously at the area between them, and because of the work we're doing on the geology models, we're seeing that there's potential for higher grades on a whole suite of structures that make up a really wide deformation zone between those two deposits. Most of what we will be looking at in the next few years is already on POA 11. It's right there. It's permitted.

Speaker Change: Getting to.

Aoife: They're getting less worse here he can't be here any between them because it gave them the geology model.

Aoife Mairead McGrath: It does seem that there is potential for hire great honor.

Aoife Mairead McGrath: Yeah.

Aoife Mairead McGrath: The structures that make up a really wide declamations nowadays can between those two deposits. So it's not.

Aoife Mairead McGrath: Most of you will be looking out for the next few years as they already own Poa 11 right.

Aoife Mairead McGrath: We have good access.

Aoife Mairead McGrath: Every day, we're increasing our understanding was that the allergy.

Aoife Mairead McGrath: So there's a lot of attention right on our doorstep.

Aoife Mairead McGrath: They position demand given the renminbi.

Aoife Mairead McGrath: We have good access. Every day we're increasing our understanding of the geology, so there's a lot of potential right on our doorstep. It's a great position to be in, given the runway we have at that mine line ahead of us already. It's been really good.

Mitchell J. Krebs: We have good access. Every day we're increasing our understanding of the geology, so there's a lot of potential right on our doorstep. It's a great position to be in, given the runway we have at that mine line ahead of us already. It's been really good.

Aoife Mairead McGrath: Might lie ahead of us already.

Mitchell J. Krebs: Really good.

Speaker Change: And yes.

Mitchell J. Krebs: Additional to that though is one area, which is the least one old historic Leach pad number one right adjacent to the pit and we call. It the wedge actually it's currently in our mine plans as we asked because we can't drill them through deals.

Mitchell J. Krebs: And in addition to that, there is one area which is underneath our old historic leach pad number one, right adjacent to the current pit. We call it the wedge, actually. It's currently in my main plans as a waste because we can't drill down through the old leach pad, but we have put some horizontal drills into that, and it's given me a little bit of excitement. We still have to investigate it, but that's 40 million tons of waste currently in my plan, and in the next couple of years, we'll look to investigate that and see how much of that we can convert, but we're optimistic that that'll present some really interesting material that may be higher grade than the current main plan.

Mitchell J. Krebs: And in addition to that, there is one area which is underneath our old historic leach pad number one, right adjacent to the current pit. We call it the wedge, actually. It's currently in my mine plans as a waste because we can't drill down through the old leach pad, but we have put some horizontal drills into that, and it's given me a little bit of excitement. We still have to investigate it, but that's 40 million tons of waste currently in my plan, and in the next couple of years, we'll look to investigate that and see how much of that we can convert, but we're optimistic that that'll present some really interesting material that may be higher grade than the current mine plan.

Mitchell J. Krebs: We'll reach product, but we have put some horizontal drilled into that and it's it's getting a little bit of excitement, we still have to investigate it but thats 40 million tonnes of waste.

Mitchell J. Krebs: Applause.

Mitchell J. Krebs: And the next couple of years, we will look to investigate that and see how much of that we can convert.

Mitchell J. Krebs: We're optimistic that and that'll that'll results presented some really interesting material.

Mitchell J. Krebs: That might be high agreed that the current mine plan.

Speaker Change: Okay, great. Thanks, I appreciate the answers and I'll pass it onto the next caller.

Speaker Change: Thanks, Kevin.

Mitchell J. Krebs: And our next question will come from Joseph Reagor with Roth F. Can please go ahead.

Kevin O'halloran: Okay, great. Thanks. I appreciate the answers, and I'll pass them on to the next caller.

Speaker Change: He mentioned team thanks for taking the questions.

Speaker Change: Hey, Joe good to hear from you.

Kevin O'halloran: Yeah.

Joseph George Reagor: And our next question will come from Joseph Reagor, with Roth MKM. Please go ahead.

Joseph George Reagor: And our next question will come from Joseph Rigor, with Roth MKM. Please go ahead.

Speaker Change: So most of my questions been answered, but I did have a question in the cash flow for Q1. There was 50 $55 2 million dollar impact from deferred revenue recognition, which you know compared to prior quarter seemed a bit high.

Joseph George Reagor: Hey Mitch and team, thanks for taking the questions.

Joseph George Reagor: Great, Mitch and team, thanks for taking the questions.

Mitchell J. Krebs: Hey Joe, good to hear from you.

Joseph George Reagor: So, most of my questions have been answered, but I did have a question. In the cash flow for Q1, there was a $55.2 million impact from deferred revenue recognition, which compared to prior quarters seemed a bit high. What was driving that? What are the components that go into that, and should we expect that to be low?

Joseph George Reagor: So most of my questions have been answered, but I did have a question. In the cash flow for Q1, there was a $55.2 million impact from deferred revenue recognition, which, you know, compared to prior quarters, seemed a bit high. What was driving that? You know, what are the components that go into that? And, you know, should we expect that to level out?

Joseph George Reagor: What was driving that and you know what are the components that go into that and you know.

Joseph George Reagor: We expect that to be lower in the quarter had.

Joseph George Reagor: Tom do you want to cover that sure.

Joseph George Reagor: In the financial statements, you'll see a reference to some.

Joseph George Reagor: Some gold prepaid activity. So we've got a prepay at Kansas.

Joseph George Reagor: Kensington, which we've historically used to help us manage short term working capital and last year, we added.

Thomas S. Whelan: Tom, do you want to cover that? Sure.

Thomas S. Whelan: So, in the financial statements, you'll see a reference to some gold prepaid activity. So, we have a gold prepaid program at Kensington, which we historically used to help us manage short-term working capital. And last year, we added prepaids at both Rochester and Morph. Again, all just in the effort to smooth out the working capital as we went through the last of the expansion and are awaiting these wonderful announcements that Nick is placing on the pad. So we extended those, and we renewed those prepaids again. There was $55 million outstanding at the end of December.

Thomas S. Whelan: So, in the financial statements, you'll see a reference to some gold prepaid activity. So, we have a gold prepaid program at Kensington, which we historically used to help us manage short-term working capital. And last year, we added gold prepaid. So, we've got gold prepaid at Kensington, which we historically used to help us manage short-term working capital. And last year, we added gold prepaid at both Rochester and Morph. Again, all just in the effort to smooth out the working capital as we went through the last of the expansion and are awaiting these wonderful announcements that Nick is placing on the pad. So we extended those, and we renewed those prepaids again. There was $55 million outstanding at the end of December.

Thomas S. Whelan: Prepaid that both Rochester, and wharf again I'll just in the effort to smooth out the working capital as we went through the last of the expansion and are awaiting these.

Thomas S. Whelan: We paid it all back and then drew down on those prepaids again. So it's just a nice way to help us manage working capital. In particular, the first quarter has three lumpy payments, the annual incentive bonus we pay the Mexican EBITDA tax, as well as the semiannual payment on the bond coupon. And so it was just, it's a helpful way to manage working capital. But as I mentioned in the, Starting in the third quarter, once all the free cash flow starts to arrive, the plan would be to begin de-levering, and we'll de-lever based on what's going to be the highest interest rates between the revolver and prepaid, so expect to see those balances decrease in the second half.

Thomas S. Whelan: Wonderful ounces at Nic is placing on the bad so we extended those we renewed those prepaid again.

Thomas S. Whelan: There was $55 million outstanding at.

Thomas S. Whelan: At the end of December we paid it all back in and drill down on those prepaid again. So it's just it's a nice way to help us manage working capital.

Thomas S. Whelan: In particular, the first quarter has three lumpy payments the annual.

Thomas S. Whelan: Annual incentive bonus we paid the Mexican EBITDA tax.

Thomas S. Whelan: As well as the semiannual payment on that on the bond coupon and so it was just it's a helpful way to.

Thomas S. Whelan: Working capital, but as I mentioned in the.

Thomas S. Whelan: Starting in the third quarter once all the free cash flow starts to.

Thomas S. Whelan: Arrived the plan would be to begin delevering will.

Thomas S. Whelan: We'll delever based on what's going to be the highest interest rate so the.

Thomas S. Whelan: Between the revolver and prepaid so expect to see those balances decreased in the second half.

Speaker Change: Okay. Thanks.

Speaker Change: Thanks, I appreciate the color on that and then one other.

Thomas S. Whelan: And just.

Speaker Change: On kind of the overall company performance in Q1. It seems like you guys are already ahead of plan.

Joseph George Reagor: Okay, thanks. I appreciate the color on that.

Mitchell J. Krebs: Okay. Thanks. I appreciate the call around that. And then one other question just on the overall company performance in Q1. It seems like you guys are already ahead of plan. You know, and the range on guidance at Rochester is a little wide. Is the plan, like, later this year to tighten that up once, you know, you kind of see what the first two or three quarters look like?

Speaker Change: You know and the range on guidance at Rochester, as a little wide is the plan like later this year to tighten that up once you kind of see what the first two or three quarters look like.

Mitchell J. Krebs: And then one other question, just on kind of the overall company performance in Q1. It seems like, you guys are already ahead of plan. You know, and the range of guidance at Rochester is a little wide. Is the plan, like, later this year to tighten that up once you kind of see what the first two or three quarters look like?

Speaker Change: Yeah, I think that's a fair.

Speaker Change: Fair point Joe.

Mitchell J. Krebs: As we get past the end of the second quarter.

Mitchell J. Krebs: With that run rate.

Mitchell J. Krebs: Chester.

Mitchell J. Krebs: Yeah, I think that's a fair point, Joe, that as we get past the end of the second quarter. With that run rate at Rochester, that's a big milestone for us. On the backside of that, refreshing Rochester's full-year guidance would be a good thing to do. You can look for that probably as we think about third-quarter results.

Mitchell J. Krebs: That's a big big milestone for us on the on the back side of that.

Mitchell J. Krebs: Yeah, I think that's a fair point, Joe, that as we get past the end of the second quarter. With that run rate at Rochester, you know, that's a big milestone for us. On the backside of that, refreshing Rochester's full-year guidance would be a good thing to do, so you can look for that probably as we think about third-quarter results.

Mitchell J. Krebs: Refreshing rochester's full year guide.

Mitchell J. Krebs: Our guidance would be.

Mitchell J. Krebs: Probably a good thing to to do so.

Mitchell J. Krebs: You can look for that probably as we think about third quarter results.

Speaker Change: Okay, Alright that sounds good thanks, guys I'll turn it over okay. Thanks, Joe.

Mitchell J. Krebs: As a reminder, if you have a question you May press Star then one to join the queue.

Mitchell J. Krebs: Our next question here will come from Brian Macarthur with Raymond James. Please go ahead.

Joseph George Reagor: Okay, all right, that sounds good. Thanks, guys.

Joseph George Reagor: Okay. All right. That sounds good. Thanks guys. I'll turn it over. Okay. Yeah. Thanks Joe.

Mitchell J. Krebs: I'll turn it over. Okay. Yeah. Thanks.

Mitchell J. Krebs: Okay, yeah. Thanks, Joe.

Speaker Change: Good morning, and thank you for taking my question can you just review, where we are on your Nols or tax pools in the United States because as you eventually start to ramp up Rochester, and generate cash and you have worse in the U S and Kensington in the U. S is is most of that going to the bottom line because if I remember that.

Mitchell J. Krebs: Okay, yeah. Thanks, Joe.

Brian MacArthur: As a reminder, if you have a question, you may press star then 1 to join the queue. Our next question here will come from Brian McArthur with Raymond James. Please go ahead.

Brian MacArthur: As a reminder, if you have a question, you may press star then 1 to join the queue. Our next question here will come from Brian MacArthur with Raymond James. Please go ahead.

Brian MacArthur: Good morning, and thank you for taking my question. Can you just review where we are on your NOLs, your tax pools in the United States, because as you eventually start to ramp up Rochester and generate cash, and you have Wharf in the U.S. and Kensington in the U.S., is most of that going to the bottom line? Because, if I remember correctly, there were significant tax pools. If you could just review how that works, because that should impact, I guess, how much free cash flow there is available.

Brian MacArthur: There were significant tax pools or if you can just review how that works because that should impact I guess, how much free cash flow there is available.

Speaker Change: Yeah, Great point, it's it's an often underappreciated asset that we that we have and that we will start to take advantage of Tom do you want <unk>.

Speaker Change: Brian the yeah right.

Brian MacArthur: My memory in the 10-K is over $630 million of the Nols.

Mitchell J. Krebs: Yeah, great point. It's an often under-appreciated asset that we have and that we should start to take advantage of.

Mitchell J. Krebs: And so we're not going to be paying any federal income tax.

Thomas S. Whelan: Tom, do you want to give Brian the... By memory, in the 10K, there is over $630 million of NOLs. And so we're not going to be paying any federal income tax in the near future. So absolutely, you should be forecasting zero federal income taxes for the foreseeable future. We do pay taxes in Nevada; there's a state tax there, as well as Wharf. And at these higher prices, there's maybe a small amount at Kensington as well, but nothing particularly material.

Thomas S. Whelan: Tom, do you want to give Brian the... My memory in the 10K is over $630 million of NOLs. And so we're not going to be paying any federal income tax in the near future. So absolutely, you should be forecasting zero federal income taxes for the foreseeable future. We do pay taxes in Nevada. There's a state tax there, as well as in Wharf. And at these higher prices, there's maybe a small amount at Kensington as well, but nothing particular material.

Mitchell J. Krebs: In the near future.

Thomas S. Whelan: So absolutely we should be forecasting.

Thomas S. Whelan: Euro federal income taxes for our core for for for the <unk>.

Thomas S. Whelan: Foreseeable future, we do pay tax in Nevada, There's a there's a statement state tax there as.

Thomas S. Whelan: As well as wharf and at these higher prices or maybe a small amount of at Kensington as well, but.

Thomas S. Whelan: Nothing particularly material.

Tom: Alright, and that was kind of my second question. So just in Nevada do you pay it or do you get to credit all the capital you've just spent so that gets deferred a little bit too or do you start paying that right away.

Thomas S. Whelan: Now there's of Nevada net proceeds tax that we will start paying right away.

Brian MacArthur: And that was my second question. So, just in Nevada, do you pay it, or do you get to credit all the capital you've just spent, so that gets deferred a little bit too, or do you start paying that right away?

Brian MacArthur: And that was going to be my second question. So, just in Nevada, do you pay it, or do you get to credit all the capital you've just spent, so that gets deferred a little bit too, or do you start paying that right away?

Tom: Alright, thanks, very much that's very helpful.

Tom: Thanks, Brian.

Speaker Change: And this will conclude our question and answer session.

Thomas S. Whelan: There is a Nevada Net Proceeds Tax that we will start paying right away.

Thomas S. Whelan: I'd now like to turn the conference back over to Mitch Krebs for any closing remarks.

Brian MacArthur: Great. Thanks very much. That's very helpful.

Speaker Change: Alright, well hey, we appreciate everybody's time today and look forward to speaking with you all.

Mitchell J. Krebs: and This will conclude our question and answer session, and we'd now like to turn the conference back over to Mitch Krebs for any closing remarks. All right.

Mitchell J. Krebs: And that will conclude our question and answer session, and we'd now like to turn the conference back over to Mitch Krebs for any closing remarks. All right.

Brian MacArthur: In August to discuss our second quarter results.

Mitchell J. Krebs: Have a great rest of the day. Thanks again.

Mitchell J. Krebs: All right. Well, hey, we appreciate everybody's time today and look forward to speaking with you all in August to discuss our second quarter results. Have a great rest of the day. Thanks again.

Mitchell J. Krebs: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your line.

Q1 2024 Coeur Mining Inc Earnings Call

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