Q2 2024 Coeur Mining Inc Earnings Call

August 8, 2024

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

Operator: Good day and welcome to the second quarter of 2024 financial results for Coeur Mining conference call. All participants will be in list and only mode. Should you need assistance, please signate a conference specialist by pressing the star key followed by zero.

Good day and welcome to the second quarter 2024 financial results for Coeur Mining conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

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

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded.

After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would like now to turn the conference over to Mr. Mitchell Krebs, President and CEO of Coeur Mining. Please go ahead.

Mitchell Krebs: I would like now to turn that conference over to Mr. Mitchell Krebs, President and CEO of Coeur Mining. Please go ahead.

Mitchell Krebs: Hello everyone, and thanks for joining our call. Before we start, I want to point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll kick off with some highlights on slide three before turning the call over to the team, and then we'll open it up for questions.

Mitchell Krebs: Hello, everyone, and thanks for joining our call. Before we start, I want to point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll kick off with some highlights on slide three before turning the call over to the team, and then we'll open it up for questions.

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

Mitchell Krebs: Before we start, I want to point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll kick off with some highlights on slide three before turning the call over to the team, and then we'll open it up for questions. The main focus during the second quarter was getting Rochester ramped up and positioning the company to make the transition to positive free cash flow in the second half of the year. We were successful in that effort, with Rochester now consistently crushing and placing around 90,000 tons per day, which should drive sharp production increases and unit cost reductions in the second half.

Speaker Change: Hello, everyone, and thanks for joining our call.

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

Mitchell Krebs: The main focus during the second quarter was getting Rochester ramped up and positioning the company to make the transition to positive free cash flow in the second half of the year. We were successful in that effort, with Rochester now consistently crushing and placing around 90,000 tons per day, which should drive sharp production increases and unit cost reductions in the second half. Rochester's silver and gold production both jumped nearly 40% in the second quarter, which was a great sign that the team out in Nevada is building momentum heading into the back half of the year. Nick will provide some additional details on Rochester in a few minutes.

Mitchell Krebs: I'll kick off with some highlights on slide 3 before turning the call over to the team and then we'll open it up for questions.

Speaker Change: The main focus during the second quarter was getting Rochester ramped up and positioning the company to make the transition to positive free cash flow in the second half of the year.

Speaker Change: We were successful in that effort, with Rochester now consistently crushing and placing around 90,000 tons per day, which should drive sharp production increases and unit cost reductions in the second half.

Mitchell Krebs: Rochester's silver and gold production both jumped nearly 40 percent in the second quarter, which was a great sign that the team out in Nevada is building momentum heading into the back half of the year. Mick will provide some additional details on Rochester in a few minutes. Our three other operations are also on track for solid years as we pass the main consistent and on plan, and Kensington is now establishing a good rhythm after a couple of years of elevated investment and implementing several operational enhancements, which Mick will cover in greater detail. Our leading leverage to higher prices was on full display during the quarter.

Speaker Change: Rochester's silver and gold production both jumped nearly 40% in the second quarter, which was a great sign that the team out in Nevada is building momentum heading into the back half of the year.

Speaker Change: Nick will provide some additional details on Rochester in a few minutes.

Mitchell Krebs: Our three other operations are also on track for solid years as we pass the midway point. Palmareo generated another strong free cash flow quarter, Wharf remained consistent and on plan, and Kensington is now establishing a good rhythm after a couple of years of elevated investment and implementing several operational enhancements, which Mick will cover in greater detail. Our leading leverage to higher prices was on full display during the quarter. Prices in the second quarter were about 10% higher year over year, yet our quarterly adjusted EBITDA jumped 136%, and our LTM adjusted EBITDA increased 90% to $192 million.

Speaker Change: Our three other operations are also on track for solid years as we pass the Midway Point.

Speaker Change: Palmareo generated another strong free cash flow quarter.

Mick: WRF remained consistent and on plan, and Kensington is now establishing a good rhythm after a couple of years of elevated investment and implementing several operational enhancements, which Mick will cover in greater detail.

Speaker Change: Our leading leverage to higher prices was on full display during the quarter. Prices in the second quarter were about 10% higher year over year, yet our quarterly adjusted EBITDA jumped 136%.

Mitchell Krebs: Prices in the second quarter were about 10 percent higher year over year, yet our quarterly adjusted EBITDA jumped 136 percent, and our LTM adjusted EBITDA increased 90 percent to $192 million. On the back of Rochester's ramp up, Kensington is set to have its own free cash flow inflection point in the second half of next year. The elevated levels of underground development and drilling over the past two years are expected to drop off mid next year, leaving Kensington positioned to deliver positive free cash flow with greater operational flexibility and a longer mine life. Mick and IFA will both touch on the progress at Kensington.

Mick: and our LTM adjusted EBITDA increased 90% to $192 million.

Mitchell Krebs: On the back of Rochester's ramp-up, Kensington is set to have its own free cash flow inflection point in the second half of next year. The elevated levels of underground development and drilling over the past two years are expected to drop off mid next year, leaving Kensington positioned to deliver positive free cash flow with greater operational flexibility and a longer mine life. Mick and Aoife will both touch on the progress at Kensington.

Mick: On the back of Rochester's ramp-up, Kensington is set to have its own free cash flow inflection point in the second half of next year.

Mick: The elevated levels of underground development and drilling over the past two years are expected to drop off mid-next year, leaving Kensington positioned to deliver positive free cash flow with greater operational flexibility and a longer mine life.

Speaker Change: Mick and Aoife will both touch on the progress at Kensington.

Mitchell Krebs: It was great to close the acquisition last month of two key concessions from Fresneo and consolidate the land package to the east of Palmareo. IFA will talk in a couple of minutes about our plans and priorities for this large prospective land position that sits outside the Franco Nevada Gold Stream boundary and provide a whole new set of higher margin mine life extension opportunities at Palmareo. IFA will also cover the objectives and progress from the summer exploration program underway at Silver. We continue to believe that the convergence of all of these catalysts, higher commodity prices, a ramped-up Broadchester, a stable suite of US-centric minds full of organic growth opportunities, and a world-class Canadian exploration project, along with our impending transition to positive free cash flow, followed by a period of aggressive debt reduction, sets us apart from our peers and leads us in a great place heading into the second half.

Mitchell Krebs: It was great to close the acquisition last month of two key concessions from Fresnillo and consolidate the land package to the east of Palmareo. Aoife will talk in a couple minutes about our plans and priorities for this large prospective land position that sits outside the Franco-Nevada Gold Stream boundary and provides a whole new set of higher-margin mine life extension opportunities at Palmareo. Aoife will also cover the objectives and progress from the Summer Exploration Program underway at Silverton.

Mitchell Krebs: It was great to close the acquisition last month of two key concessions from Fresnillo and consolidate the land package to the east of Palmareo. Aoife will talk in a couple minutes about our plans and priorities for this large, prospective land position that sits outside the Franco-Nevada Gold Stream boundary and provides a whole new set of higher-margin mine life extension opportunities at Palmareo. Aoife will also cover the objectives and progress from the Summer Exploration Program underway at Silverton.

Speaker Change: It was great to close the acquisition last month of two key concessions from Fresnillo and consolidate the land package to the east of Palmareo.

Speaker Change: Aoife will talk in a couple minutes about our plans and priorities for this large prospective land position that sits outside the Franco-Nevada Gold Stream boundary and provides a whole new set of higher margin mine life extension opportunities at Palmareo.

Aoife: IFA will also cover the objectives and progress from the summer exploration program underway at Silverton.

Mitchell Krebs: We continue to believe that the convergence of all of these catalysts, higher commodity prices, a ramped-up Rochester, a stable suite of U.S. central mines full of organic growth opportunities, and a world-class Canadian exploration project, along with our impending transition to positive free cash flow followed by a period of aggressive debt reduction sets us apart from our peers and leads us in a great place heading into the second half.

Mitchell Krebs: We continue to believe that the convergence of all of these catalysts..., higher commodity prices, a ramped-up Rochester... This is a stable suite of U.S.-centric mines full of organic growth opportunities, and a world-class Canadian exploration project, along with our impending transition to positive free cash flow followed by a period of aggressive debt reduction, sets us apart from our peers and puts us in a great place heading into the second half.

Speaker Change: We continue to believe that the convergence of all of these catalysts, higher commodity prices, a ramped up Rochester,

Mick: a stable suite of U.S.-centric mines full of organic growth opportunities.

Mick: and a world-class Canadian exploration project along with our impending transition to positive free cash flow followed by a period of aggressive debt reduction.

Mick: sets us apart from our peers and leads us in a great place heading into the second half.

Michael Dudas: Nick, over to you. Thanks, Mitch. Rochester's successful ramp-up and consistent contributions from across our portfolio have the company well-positioned at the midway point of 2024. More importantly, Coeur's deeply embedded safety culture continues to show through in our overall safety performance. I'm pleased to report that a key threat of war in June marked one year at the operation without a lost payment student. Also in June, several individuals at Rochester were honored with safety awards by the Nevada Manual Association. Congratulations to the team there for their contributions to pursuing a higher standard in safety.

Mitchell Krebs: Rochester's successful ramp-up and consistent contributions from across our portfolio have the company well positioned at the midway point of 2024. More importantly, Coeur's deeply embedded safety culture continues to show through in our overall safety performance. I'm pleased to report that a key inflated wharf in June marked one year of the operation without a lost payment. Also in June, seven individuals at Rochester were honored with safety awards by the Nevada Mining Association.

Mitchell Krebs: Rochester's successful ramp-up and consistent contributions from across our portfolio have the company well positioned at the midway point of 2024. More importantly, Coeur's deeply embedded safety culture continues to show through in our overall safety performance. I'm pleased to report that a key trade-up wharf in June marked one year of the operation without a lost payment. Also in June, seven individuals at Rochester were honored with safety awards by the Nevada Mining Association.

Nick: Nick, over to you.

Nick: Thanks much.

Nick: Rochester's successful ramp-up and consistent contributions from across our portfolio have the company well positioned at the midway point of 2024.

Nick: More importantly, Coeur's deeply embedded safety culture continues to show through in our overall safety performance.

Speaker Change: I'm pleased to report that a clean slate of wharf in June marked one year of the operation without a lost fame incident.

Speaker Change: Also in June , seven individuals at Rochester were honored with safety awards by the Nevada Mining Association.

Mitchell Krebs: Congratulations to the team there for their contributions to pursuing a higher standard and safety. Turning to our second quarter results on Slade 4, and kicking off with Rochester, silver production in the second quarter increased to 973,000 ounces, while gold production increased to over 8,000 ounces.

Speaker Change: Congratulations to the team there for their contributions to pursuing a higher standard and safety.

Michael Dudas: Turning to our second quarter results on slide four and kicking off with Rochester. Silver production in the second quarter increased to 973,000 ounces, while gold production increased to over 8,000 ounces, driven by more crushed tons placed with the new circuit. I've reported on July 11th, placement of answers during the second quarter was later than the mission planned, but Rochester remains on track to deliver on 2024 production gains. Over the first several weeks of the third quarter, throughput rates have regularly achieved or exceeded expected average running capacity of 88,000 tons per day, and the team continues to take full advantage of down periods to optimise and refine the operation.

Speaker Change: Turning to our second quarter results on Slade 4 and kicking off with Rochester.

Speaker Change: Silver production in the second quarter increased to 973,000 ounces, while gold production increased to over 8,000 ounces, driven by more crushed tons placed with the new circuit.

Mitchell Krebs: Driven by more crushed tons placed with the new circuit. As reported on July 11th, placement advances during the second quarter were later than initially planned, but Rochester remains on track to deliver on its 2024 prediction. Over the first several weeks of the third quarter, throughput rates have regularly achieved or exceeded expected average running capacity of 88,000 tons per day, and the team continues to take full advantage of down periods to optimize and refine the operation.

Mitchell Krebs: Driven by more crushed tons placed with the new circuit. However, as reported on July 11th, placement advances during the second quarter were lighter than initially planned. But Rochester remains on track to deliver on its 2024 prediction. Over the first several weeks of the third quarter, throughput rates have regularly achieved or exceeded expected average running capacity of 88,000 tonnes per day, and the team continues to take full advantage of down periods to optimize and refine the operation.

Nick: As reported on July 11th, placement of ounces during the second quarter was later than initially planned.

Nick: But Rochester remains on track to deliver on 2024 prediction gains.

Nick: Over the first several weeks of the third quarter, throughput rates have regularly achieved or exceeded expected average running capacity of 88,000 tonnes per day, and the team continues to take full advantage of down periods to optimise and refine the operation.

Michael Dudas: We crushed in place nearly 2 million tons in July, and we were in well-positioned to deliver a crushing and placement rate of 78 million tons per quarter in the second half and into 2025. Concerned with delivering these higher crushing and placement rates, our focus in the second half of 2024 will be on working down material crush size towards a targeted five-eighths of an inch in order to maximize recoveries.

Mitchell Krebs: We crushed and placed nearly 2 million tons in July, and we remain well positioned to deliver crushing emplacement rates of 7 to 8 million tons per quarter in the second half and into 2025. Concurrent with delivering these higher crushing and placement rates, our focus in the second half of 2024 will be on working down material crush size towards a targeted 5 eighths of an inch in order to maximize recovery. Moving on to Palmarejo, the mining company followed up a very strong first quarter with another solid three months delivering over 25,000 ounces of gold and nearly 1.6 million ounces of silver.

Mitchell Krebs: We crushed and placed nearly 2 million tonnes in July, and we remain well positioned to deliver crushing and placement rates of 7 to 8 million tonnes per quarter in the second half and into 2025. Concurrent with delivering these higher crushing and placement rates, our focus in the second half of 2024 will be on working down material crush size towards a targeted five-eighths of an inch in order to maximize recovery. Moving on to Palmarejo, the mining company followed up a very strong first quarter with another solid three months delivering over 25,000 ounces of gold and nearly 1.6 million ounces of silver.

Nick: We crushed and placed nearly 2 million tons in July , and we remain well positioned to deliver crushing emplacement rates of 7 to 8 million tons per quarter in the second half and into 2025.

Nick: Concurrent with delivering these higher crushing and placement rates, our focus in the second half of 2024 will be on working down material crush size towards a targeted 5 eighths of an inch in order to maximize recoveries.

Michael Dudas: Moving on to Palmeray Hall, the main follow-up of the very strong first quarter with another solid three months delivering about 25,000 tons of gold and nearly 1.6 million ounces of silver. In June, the team broke growing on a third access port or at Hidalgo, which is expected to significantly enhance our underground main development and exploration efforts at this future also, so we'll cater just north and west of Independence here. Following the completion of the transaction with Fresno, the operating team is working closely with the exploration team on plans to pursue near-term development opportunities, which I will discuss further in a moment.

Speaker Change: Moving on to Palmarejo, the mine followed up a very strong first quarter with another solid three months delivering over 25,000 ounces of gold and nearly 1.6 million ounces of silver.

Mitchell Krebs: In June, the team broke ground on a third access portal at Hidalgo, which is expected to significantly enhance our underground mine development and exploration efforts at this future ore source located just north and west of Independence. Following the completion of the transaction with Fresnillo, the operating team is working closely with the exploration team on plans to pursue near-term development opportunities, which Aoife will discuss further in a moment. At Kensington, the operation continues to regain momentum, where significant improvements have been made in long-haul drilling capacity, paste placement, and getting more stoke feed to the surface.

Mitchell Krebs: In June, the team broke ground on a third access portal at Hidalgo which is expected to significantly enhance our underground mine development and exploration efforts at this future ore source located just north and west of Independence. Following the completion of the transaction with Fresnillo, the operating team is working closely with the exploration team on plans to pursue near-term development opportunities, which Aoife will discuss further in a moment. At Kensington, the operation continues to regain momentum, where significant improvements have been made in long-haul drilling capacity, paste placement, and getting more stoke feed to the surface.

Speaker Change: in june the team grow room on a third access poort hdlgore which is expected to significantly enhance our underg main development and exploration efforts and this future also will care at just north and westtern independencecycihere

Speaker Change: Following the completion of the transaction with Fresnillo, the operating team is working closely with the exploration team on plans to pursue near-term development opportunities, which Aoife will discuss further in a moment.

Michael Dudas: At counting to, the operation continues to regain momentum, where significant improvements have been realised in long-haul drilling capacity, paste placement, and getting more stockpfeet to the surface. As Mitch mentioned, the Kensington team had gone the hard yards to position the operation as a long-lived, revitalized source of free cash flow generation starting in the second half of next year. The multi-air capital development investment continues to advance well, with progress ahead of schedule, with additional funds being allocated to the programme to provide more operator inflexibility and to access new all the ones. The programme now stands at an 82% complete for the current scope of the project.

Speaker Change: At Kensington, the operation continues to regain momentum, where significant improvements have been realized in long-haul drilling capacity, paste placement, and getting more stoke feed to the surface.

Mitchell Krebs: As Mitch mentioned, the Kensington team has gone the hard yards to position the operation as a long-lived, revitalized source of free cash flow generation, starting in the second half of next year. The multi-year capital development investment continues to advance well, with progress ahead of schedule, with additional funds being allocated to the program to provide more operating flexibility and to access new auditoriums. The program now stands at 82% complete for the current scope of the program.

Mitchell Krebs: As Mitch mentioned, the Kensington team has gone the hard yards to position the operation as a long-lived, revitalized source of free cash flow generation starting in the second half of next year. The multi-year capital development investment continues to advance well, with progress ahead of schedule, with additional funds being allocated to the program to provide more operating flexibility and to access new oil zones. The program now stands at 82% complete for the current scope of the program.

Aoife: As Mitch mentioned, the Kensington team have gone the hard yards to position the operation as a long-lived, revitalized source of free cash flow generation starting in the second half of next year.

Aoife: The multi-year capital development investment continues to advance well with progress ahead of schedule, with additional funds being allocated to the program to provide more operating flexibility and to access new ore zones.

Speaker Change: The programme now stands at an 82% complete for the current scope of the project.

Michael Dudas: Finishing up with Wharf, strong grades drove increased Wharf production to 22,000 ounces in the quarter, while adjusted costs decreased 29% compared to the first quarter to an impressive $822 price. When Wharf was acquired by Coeur in 2015, reserves stood at approximately 560,000 ounces. A year in 2023, nine years later, Wharf's gold reserves stood at over 760,000 ounces, with even further exploration upside. The team there has recently identified two new opportunities, near existing mining areas, aimed at substantially extending Wharf's already long life. The two targets, North-Forey and June Rule, will be tested over the remainder of 2024 and 2025 to demonstrate the scope of the potential opportunity.

Mitchell Krebs: Finishing up with Wharf, strong grades drove increased gold production to 22,000 ounces in the quarter, while adjusted casts decreased 29% compared to the first quarter to an impressive $822 per ounce. When Wharf was acquired by Coeur in 2015, reserves stood at approximately 560,000 ounces. At year-end 2023, nine years later, Warp's gold reserves stood at over 760,000 ounces, with even further exploration upsets. The team there recently identified two new opportunities, near existing mining areas, aimed at substantially extending Wharf's already long-running, The two targets, North Foley and Juneau, will be drill-tested over the remainder of 2024 and 2025 to demonstrate the scope of the potential opportunity. With that, I'll pass the call over to Tom.

Mitchell Krebs: Finishing up with Wharf, Strong Grades drove increased gold production to 22,000 ounces in the quarter, while Adjusted Casts decreased 29% compared to the first quarter to an impressive $822 per ounce. When Wharf was acquired by Coeur in 2015, reserves stood at approximately 560,000 ounces. A year in 2023, nine years later, Warp's gold reserves stood at over 760,000 ounces, with even further exploration upsets. The team there recently identified two new opportunities, near existing mining areas, aimed at substantially extending Wharf's already long-running, The two targets, North Foley and Juno, will be drill-tested over the remainder of 2024 and 2025 to demonstrate the scope of the potential opportunity. With that, I'll pass the call over to Tom.

Speaker Change: Finishing up with Wharf, strong grades drove increased gold production to 22,000 ounces in the quarter, while adjusted casts decreased 29% compared to the first quarter to an impressive $822 per ounce.

Speaker Change: When Wharf was acquired by Coeur in 2015, reserves stood at approximately 560,000 ounces.

Speaker Change: A year in 2023, nine years later, Warp's gold reserves stood at over 760,000 ounces, with even further exploration upside.

Speaker Change: The team there has recently identified two new opportunities near existing mining areas aimed at substantially extending Wharf's already long life.

Nick: The two targets, North Foley and Juneau, will be drill tested over the remainder of 2024 and 2025 to demonstrate the scope of the potential opportunity.

Thomas Whelan: With that, I'll pass the call over to Tom. Thanks, Mick. I'll begin with a brief review of our second quarter financial results before spending a moment on our refreshed cost guidance as we hit the midway mark of 2024. I'll finish with an update on our plans for delivering the balance sheet on the back of Rochester's and the overall company's return to free cash flow. As detailed on slide 10, Coeur's rapidly improving financial results are due to the three-way combination of stronger gold and silver production, higher metals prices, and declining levels of capital spending at Rochester.

Nick: With that, I'll pass the call over to Tom.

Tom: I'll begin with a brief review of our second quarter financial results before spending a moment on our refreshed cost guidance as we hit the midway mark of 2024. And I'll finish with an update on our plans for de-levering the balance sheet on the back of Rochester's and the overall company's return to free cash flows. As detailed on slide 10, Coeur's rapidly improving financial results are due to the three-way combination of stronger gold and silver production, higher metals prices, and declining levels of capital spending at ROCH.

Tom: I'll begin with a brief review of our second quarter financial results, before spending a moment on our refreshed cost guidance as we hit the midway mark of 2024. And I'll finish with an update on our plans for de-levering the balance sheet on the back of Rochester's and the overall company's return to free cash flow. As detailed on slide 10, Coeur's rapidly improving financial results are due to the three-way combination of stronger gold and silver production, higher metals prices, and declining levels of capital spending at Rochester.

Tom: Thanks, Nick

Tom: i'll begin with the brief review of our second quarter financial results before spending a moment on our refresh cost guidance as we it the midway market of two thousand andtwentyfour andi'll finish with an update on our pl for delevering the balance sheet on the back of rochesters and the overall companies return to free cash flow

Nick: As detailed on slide 10, Coeur's rapidly improving financial results are due to the three-way combination of stronger gold and silver production, higher metals prices, and declining levels of capital spending at Rochester.

Thomas Whelan: With Rochester continuing to settle into steady state operation, and the rest of the portfolio delivering 100% unhedged gold and silver production, that free cash flow inflection point is upon us. We remain on track to achieve 2024 production guidance at each of our operations, and have made the following refinements to our 2024 cost guidance. At Paul Morello, higher grades combined with easing inflationary pressures and a weaker Mexican peso have resulted in a reduction in its 2024 CAS guidance. 2024 CAS guidance at Wharf has also been reduced as a result of better-than-expected pressure performance and mining efficiencies due to ongoing business improvement initiatives.

Tom: With Rochester continuing to settle into steady state operation and the rest of the portfolio delivering 100% unhedged gold and silver production, that free cash flow inflection point is upon us. We remain on track to achieve 2024 production guidance at each of our operations and have made the following refinements to our 2024 cost guidance. At Palmarillo, higher grades combined with easing inflationary pressures and a weaker Mexican peso have resulted in a reduction in its 2024 CAS guide.

Tom: With Rochester continuing to settle into steady state operation, and the rest of the portfolio delivering 100% unhedged gold and silver production, that free cash flow inflection point is upon us. We remain on track to achieve 2024 production guidance at each of our operations and have made the following refinements to our 2024 cost guidance. At Palmarillo, higher grades combined with easing inflationary pressures and a weaker Mexican peso have resulted in a reduction in its 2024 CAS guide.

Nick: With Rochester continuing to settle into steady state operation and the rest of the portfolio delivering 100% unhedged gold and silver production, that free cash flow inflection point is upon us.

Nick: We remain on track to achieve 2024 production guidance at each of our operations and have made the following refinements to our 2024 cost guidance.

Nick: At Palmarillo, higher grades combined with easing inflationary pressures and a weaker Mexican peso have resulted in a reduction in its 2024 CAS guidance.

Tom: 2024 CAS guidance at WARF has also been reduced as a result of better than expected crusher performance and mining efficiencies due to ongoing business improvement initiatives. At Rochester, we increased our CAS guidance to reflect excess trucking capacity used during the first half of the year to place profitable but higher-cost runs of mine material, which helped to offset the lighter than planned tons placed on stage six through the first half of the year.

Tom: 2024 CAS Guidance at WARF has also been reduced as a result of better than expected crusher performance and mining efficiencies due to ongoing business improvement initiatives. At Rochester, we increased our CAS guidance to reflect excess trucking capacity used during the first half of the year to place profitable but higher-cost runs of mine material, which helped to offset the lighter than planned tons placed on stage six through the first half of the year.

Nick: 2024 CAVS guidance at work has also been reduced as a result of better than expected crusher performance and mining efficiencies due to ongoing business improvement initiatives.

Thomas Whelan: At Rochester, we increased our CAS guidance to reflect excess trucking capacity used during the first half of the year to place profitable but higher costs run in mine material, which helped to offset the lighter than planned tons placed on stage six through the first half of the year. In addition, overall 2024 CAS X and expiration guidance has also been adjusted to reflect the following. At Rochester, we have increased the full year capital guidance to reflect an earlier than planned final payment to our major contractor from the recently completed expansion. We also accelerated equipment purchases to lock in savings, and there were a handful of post start-up modifications.

Nick: At Rochester, we increased our CAS guidance to reflect excess trucking capacity used during the first half of the year to place profitable but higher cost run of mine material, which helped to offset the lighter than planned tons placed on Stage 6 through the first half of the year.

Tom: In addition, overall 2024 CapEx and expiration guidance has also been adjusted to reflect the following. At Rochester, we have increased the full-year capital guidance to reflect an earlier-than-planned final payment to our major contractor from the recently completed expansion. We also accelerated equipment purchases to lock in savings, and there were a handful of post-startup modifications. At Kensington, we increased our full-year capital range to reflect accelerated underground mine development and exploration investments, which reflect higher-than-planned productivity by both our underground mine development and drilling contracts.

Tom: In addition, overall 2024 CapEx and expiration guidance has also been adjusted to reflect the following. At Rochester, we have increased the full-year capital guidance to reflect an earlier-than-planned final payment to our major contractor from the recently completed expansion. We also accelerated equipment purchases to lock in savings, and there were a handful of post-startup modifications. At Kensington, we increased our full-year capital range to reflect accelerated underground mine development and exploration investments, which reflect higher-than-plan productivity by both our underground mine development and drilling content.

Nick: in addition overall two thousand and twenty-four capex and exexpiration guidance has also been adjusted to reflect the following

Nick: At Rochester, we have increased the full-year capital guidance to reflect an earlier-than-planned final payment to our major contractor from the recently completed expansion.

Nick: We also accelerated equipment purchases to lock in savings, and there were a handful of post-startup modifications.

Thomas Whelan: At Kensington, we increased our full-year capital range to reflect accelerated underground mine development and exploration investments, which reflect higher-than-plan productivity by both our underground mine development and drilling contractors. And at Wharf, we increased our full-year exploration guidance to reflect drilling we planned to carry out at the recently identified opportunities that Mac just mentioned. This allocation of capital is consistent with our capital allocation framework as highlighted on slide 13. Turning to the balance sheet on slide 12, we ended the quarter with approximately $275 million gone on our $400 million revolving credit facility. Our balance sheet ratios have already seen significant improvements since the high watermark one year ago, and we now sit below three times net debt to EBDA for the first time in over two years.

Nick: At Kensington, we increased our full-year capital range to reflect accelerated underground mine development and exploration investments, which reflect higher-than-planned productivity by both our underground mine development and drilling contractors.

Tom: And at WORF, we increased our full-year exploration guidance to reflect drilling we plan to carry out at the recently identified opportunities that Mick just mentioned. This allocation of capital is consistent with our capital allocation framework, as highlighted on slide 13. Turning to the balance sheet on slide 12, we ended the quarter with approximately $275 million drawn on our $400 million revolving credit facility. Our balance sheet ratios have already seen significant improvements since the high water mark one year ago, and we now sit below three times net debt to EBITDA for the first time in over two years.

Tom: And at Wharf, we increased our full-year exploration guidance to reflect drilling we plan to carry out at the recently identified opportunities that Mick just mentioned. This allocation of capital is consistent with our capital allocation framework, as highlighted on slide 13. Turning to the balance sheet on slide 12, we ended the quarter with approximately $275 million drawn on our $400 million revolving credit facility. Our balance sheet ratios have already seen significant improvements since the high water mark one year ago, and we now sit below three times net debt to EBITDA for the first time in over two years.

Nick: And at WORF, we increased our full-year exploration guidance to reflect drilling we plan to carry out at the recently identified opportunities that Mick just mentioned.

Nick: This allocation of capital is consistent with our capital allocation framework as highlighted on slide 13.

Nick: Turning to the balance sheet on slide 12, we ended the quarter with approximately $275 million drawn on our $400 million revolving credit facility.

Nick: Our balance sheet ratios have already seen significant improvements since the high water mark one year ago, and we now sit below three times net debt to EBITDA for the first time in over two years.

Thomas Whelan: We expect to begin aggressively paying down the revolver as cash flows begin to accelerate over the second half of the year as we drive towards our long-term leverage targets of total debt to EBDA of one times and net debt to EBDA of milk.

Tom: We expect to begin aggressively paying down the revolver as cash flows begin to accelerate over the second half of the year as we drive towards our long-term leverage targets of total debt-to-EBITDA of one times and net debt-to-EBITDA of nil. I will now pass the call to Aoife.

Nick: We expect to begin aggressively paying down the revolver as cash flows begin to accelerate over the second half of the year as we drive towards our long-term leverage targets of total debt-to-EBITDA of one times and net debt-to-EBITDA of nil.

Aoife McGrath: I will now pass the call to Ethan. Thanks, Tom. Starting at Pamareo on slide 8, the newly acquired concessions from Fresno provide us with full access to the four northwest-trending mineralized belts in the district. Of these belts, the mind trend has seen the most historic exploration, with a high percentage of resource and reserve answers coming from the deposits here. The new Independentia sewer claim block highlighted in the red oval in the center of the map contains the southeast extension of the mind trend. It sits directly adjacent to our existing mining infrastructure and contains the continuation of a number of key veins including Independentia and Lanacion.

Speaker Change: i will now pass the call to eit

Aoife McGrath: Starting at Palmareo on slide 8, the newly acquired concessions from Fresnillo provide us with full access to the four northwest trending mineralized belts in the district. Of these belts, the mine trend has seen the most historic expiration, with a high percentage of resource and reserve ounces coming from deposits here.

eit: Thanks, Tom.

eit: Starting at Palmareo on slide 8, the newly acquired concessions from Fresnillo provide us with full access to the four northwest trending mineralized belts in the district.

eit: Of these belts, the mine trend has seen the most historic expiration, with a high percentage of resource and reserve ounces coming from deposits here.

Aoife McGrath: The new Independencia sewer claim block, highlighted in the red oval in the center of the map, contains the southeast extension of the mine trend. It sits directly adjacent to our existing mining infrastructure and contains the continuation of a number of key veins, including Independencia and La Nacion. For neoconductor drilling on this block, we are hopeful that with additional exploration, we can outline new resources in the very near term. Mapping is already well underway, and re-logging of Fresnillo Coeur and incorporating it into Coeur's database and geological models are immediate aims, with drilling planned for early 2025.

Aoife McGrath: The new Independencia sewer claim block, highlighted in the red oval in the center of the map, contains the south-east extension of the mine trench. It sits directly adjacent to our existing mining infrastructure and contains the continuation of a number of key veins, including Independencia and La Nacion. For neoconductor drilling on this block, we are hopeful that with additional exploration, we can outline new resources in the very near term. Mapping is already well underway, and re-logging of Fresnillo Coeur and incorporating it into Coeur's database and geological models are immediate aims, with drilling planned for early 2025.

eit: The new Independencia sewer claim block, highlighted in the red oval in the centre of the map, contains the south-east extension of the mine trend.

Speaker Change: It sits directly adjacent to our existing mining infrastructure and contains the continuation of a number of key veins, including Independencia and La Nacion.

Aoife McGrath: For the new conductor drilling on this block, we are hopeful that with additional exploration we can outline new resources in the very near term. Mapping is already well underway, and re-logging of Fresno core and incorporating it into core database and geological models are immediate aims, with drilling planned for early 2025. The new Guazapare is block of concessions outlined in the large red oval on the top right of the map. It is the most easterly northwest trending belt of mineralization at Pamareo. It turns multiple advanced exploration targets containing significant drilling and historic resources that were added to core portfolio to the 2015 acquisition of Pyraman Gold and Silver.

Speaker Change: For neoconductor drilling on this block, and we are hopeful that with additional exploration, we can outline new resources in the very near term.

Speaker Change: mapping is already well underway and reloging of resnewo core and incorporating at intercore's database and geological models are immediate aims

Speaker Change: with drilling planned for early 2025.

Aoife McGrath: The New Guadalupare block of concessions, outlined in the large red oval on the top right of the map, is the most easterly, northwest-trending belt of mineralization at Tamareo. It surrounds multiple advanced exploration targets containing significant drilling and historic resources that were added to Coeur's portfolio through the 2015 acquisition of Pyramon Gold and Silver. This new block of Fresno concessions allows full access to these historic resources and opens up significant down debt and long strike opportunities.

Aoife McGrath: The New Guadalupare block of concessions, outlined in the large red oval on the top right of the map, is the most easterly, northwest-trending belt of mineralization at Pamareo. It surrounds multiple advanced exploration targets containing significant drilling and historic resources that were added to Coeur's portfolio through the 2015 acquisition of Paramount Gold and Silver. This new block of Fresno concessions allows full access to these historic resources and opens up significant down debt and long strike opportunities.

Speaker Change: The New Guadalupare's block of concessions, outlined in the large red oval on the top right of the map, is the most easterly, northwest-trending belt of mineralization at Pamareo.

Speaker Change: It surrounds multiple advanced exploration targets containing significant drilling and historic resources that were added to Coeur's portfolio through the 2015 acquisition of Pyramon Gold and Silver.

Aoife McGrath: This new block of Fresno concessions allows full access to these historic resources and opens up significant dam depth and the long strike opportunities. Validation of these historic resources and extension and long strike and dam depth is a short to medium-term exploration focus. Between the North West trending mine and Guazapari trends of mineralization exists the Camuchin Escondida trend. This is the third of four identified belts of Camareo and has a number of key exploration targets that are expected to spam the short to long term exploration focus.

Speaker Change: This new block of Fresno concessions allows full access to these historic resources and opens up significant down debt and the long strike opportunities.

Aoife McGrath: Validation of these historic resources and extension along strike and down dip is a short to medium-term exploration focus. Between the northwest trending mine and Guadalupare trends of mineralization, there is the Camuchin-Escondida trend. This is the third of four identified belts at Palmareo and has a number of key exploration targets that are expected to span the short- to long-term exploration forecast. Other key news for the quarter includes the commencement of the largest summer program ever at Silverton.

Speaker Change: Validation of these historic resources and extension along strike and down dip is a short to medium term exploration focus.

Speaker Change: Between the Northwest trending mine and Guadalupare's trends of mineralization exists the Camuchin-Escondida trend.

Speaker Change: This is the third of four identified belts at Palmareo and has a number of key exploration targets that are expected to span the short to long-term exploration focus.

Aoife McGrath: Other key news for the quarter includes commencement of the largest summer program ever at SilverTap. We are undertaking a three-pronged approach this year, including near-mine extensions to known mineralization via underground drilling, larger step-outs unknown structures to rapidly add resources via surface drilling, and regional scale exploration to identify silver-tipped and larger structures with potential to host larger ore bodies. We look forward to providing an update on the program later in the year. At Kensington, the multi-year program is progressing well and is outlining new zones in upper and lower Kensington and is showing continuity of mineralization between Almira and Almira Set.

Speaker Change: Other key news for the quarter includes commencement of the largest summer program ever at Silvertip.

Aoife McGrath: We are undertaking a three-pronged approach this year, including near mine extensions to known mineralization via underground drilling, larger step-outs on known structures to rapidly add resources via surface drawing, and regional scale exploration to identify silver tip lookalikes and larger structures with the potential to host larger ore bodies. We look forward to providing an update on the program later in the year. At Kensington, the multi-year program is progressing well and is outlining new zones in upper and lower Kensington and is showing continuity of mineralization between Elmira and Elmira South. We continue to be very encouraged by ongoing Mine Life Growth to write this program. With that, I'll have the call back to Mike.

Aoife McGrath: We are undertaking a three-pronged approach this year, including near mine extensions to known mineralization via underground drilling, larger step-outs on known structures to rapidly add resources via surface drawing, and Regional Scale Exploration to identify silver-tipped local likes and larger structures with the potential to host larger ore bodies. We look forward to providing an update on the program later in the year. At Kensington, the multi-year program is progressing well and is outlining new zones in upper and lower Kensington and is showing continuity of mineralization between Elmira and Elmira South. We continue to be very encouraged by ongoing Mine Life Growth to write this program. With that, I'll have the call back to Mike.

Speaker Change: We are undertaking a three-pronged approach this year, including near-mine extensions to known mineralization via underground drilling.

Speaker Change: Larger step-outs on known structures to rapidly add resources via surface drawing.

Speaker Change: and regional scale exploration to identify silver tip lookalikes and larger structures with potential to host larger ore bodies.

Speaker Change: we look forward to providing an update on the program later in the year

Speaker Change: At Kensington the multi-year program is progressing well and is outlining new zones in upper and lower Kensington and is showing continuity of mineralization between Elmira and Elmira South.

Aoife McGrath: We continue to be very encouraged for ongoing mine life growth to write this program.

Speaker Change: We continue to be very encouraged for ongoing mine life growth throughout this program. With that, I'll have the call back to Mitch.

Operator: Good day and welcome to the second quarter of 2024 financial results for Coeur Mining Conference Call. All participants will be in list and only mode. Should you need assistance, please signate a conference specialist by pressing the star key followed by zero.

Aoife McGrath: With that, I'll have the call back too much. Thanks, Eva.

Mitchell Krebs: Before moving to the Q&A, I want to quickly highlight slide 14 that summarizes our top priorities for the remainder of the year. We're looking forward to delivering a strong and safe second half highlighted by higher production levels, positive free cash flow, and lower debt levels as we build up momentum heading into what should be a fantastic 2025. With that, let's go ahead and open it up for questions. We will now begin the question and answer session.

Mitch: Thanks Aoife.

Mitch: Before moving to the Q&A, I want to quickly highlight slide 14 that summarizes our top priorities for the remainder of the year.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded.

Mitch: We're looking forward to delivering a strong and safe second half, highlighted by higher production levels, positive free cash flow, and lower debt levels, as we build up momentum heading into what should be a fantastic 2025.

Mitchell Krebs: I would like now to turn that conference over to Mr. Mitchell Krebs, President and CEO of Coeur Mining. Please go ahead. Hello everyone and thanks for joining our call.

Operator: With that, let's go ahead and open it up for questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, 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 touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been answered and you would like to withdraw it, please press star then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Joseph Reagor of Roth Capital Partners.

Mitch: With that, let's go ahead and open it up for questions.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been answered and you would like to withdraw it, please press star then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Joseph Reagor of Roth Capital Partners.

Speaker Change: We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.

Mitchell Krebs: Before we start, I want to point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC violence on our website. I'll kick off with some highlights on slide three before turning the call over to the team and then we'll open it up for questions. The main focus during the second quarter was getting Rochester ramped up and positioning the company to make the transition to positive free cash flow in the second half of the year.

Operator: If at any time your question has been addressed and you would like to withdraw it, please press star then 2. At this time, we will pause momentarily to assemble our roster.

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

Joseph Reagor: Our first question comes from Joseph Rhaegor of Roth Capital Partners. Please go ahead. Hey, Mitch and team. Thanks for taking my questions. Hi, Joe. First thing, on Rochester, you guys suggested the cost guidance there, and there was some note about that being related to placement timing. Can you give us a little more color on that? What exactly is driving that? If there were any changes to your expectations as far as cost, excluding that item? Yeah, sure.

Speaker Change: Our first question comes from Joseph Reagor of Roth Capital Partners.

Mitchell Krebs: We were successful in that effort with Rochester now consistently crushing and placing around 90,000 tons per day which should drive sharp production increases and unit cost reductions in the second half. Rochester's silver and gold production both jumped nearly 40 percent in the second quarter which was a great sign that the team out in Nevada is building momentum heading into the back half of the year.

Joseph Reagor: Hey Mitch and team, thanks for taking my question. All right, Joe. So, first thing, on Rochester, you guys suggested the cost guidance there, and there was some note about that being related to placement timing. Can you give us a little more color on that, like what exactly is driving that, and if there were any changes to your expectations as far as costs excluding that item?

Joseph Reagor: Hey Mitch and team, thanks for taking my questions. All right, Joe. So, first thing, on Rochester, you guys suggested the cost guidance there, and there was some note about that being related to placement timing. Can you give us a little more color on that, like what exactly is driving that, and if there were any changes to your expectations as far as costs excluding that item?

Speaker Change: Please go ahead.

Joseph Reagor: mentioned team thanks for taking my questions

Joseph Reagor: agjo

Joseph Reagor: So, first thing, on Rochester, you guys suggested the cost guidance there, and there was some note about that being related to placement timing. Can you give us a little more color on that, like what exactly is driving that?

Mitchell Krebs: Mick will provide some additional details on Rochester in a few minutes. Our three other operations are also on track for solid years as we pass the main consistent and on plan and Kensington is now establishing a good rhythm after a couple of years of elevated investment and implementing several operational enhancements which Mick will cover in greater detail. Our leading leverage to higher prices was on full display during the quarter.

Speaker Change: If there were any changes to your expectations as far as costs excluding that item?

Mitchell Krebs: Yeah, sure. I'll, I'll take a crack at it. And then Nick, maybe you can follow up.

Mitchell Krebs: I'll take a crack at it, and then Nick, maybe you can follow up. It's really Joe a function of the denominator versus the numerator. No real changes at all in any of the inputs. It was really a function of timing, of ounces placed out onto stage six. In the second quarter, we took a few more downs than planned to knock out some items that had been identified during the ramp up to try and make sure we've got a good, clean second half ahead of us. And so just by a function of the timing of tons being put out there on stage six, it's really the driver behind what we decided to do with the cost guidance in the back half of the year for Rochester.

Speaker Change: Yeah, sure, I'll take a crack at it, and then Nick, maybe you could...

Mitchell Krebs: It's really, Joe, a function of the denominator versus the numerator, so there are no real changes at all in any of the inputs. It was really a function of the timing of ounces placed out onto stage six. In the second quarter, we took a few more downs than planned to knock out some items that had been identified during the ramp-up to try and make sure we've got a good, clean second half ahead of us.

Nick: You can follow up.

Nick: it's really joea function of the denominator versus the numerator so no real changes at all in anyofthe the inputs

Nick: It was really a function of timing of ounces placed out onto stage six. In the second quarter, we took a few more downs than planned.

Mitchell Krebs: to knock out some some items that had been identified during the ramp- up to try and make sure we've got a good clean second half ahead of us and so just by a function of the timing of tons being put out there on stage six

Mitchell Krebs: Prices in the second quarter were about 10 percent higher year over year, yet our quarterly adjusted EBITDA jumped 136 percent and our LTM adjusted EBITDA increased 90 percent to $192 million. On the back of Rochester's ramp up Kensington is set to have its own free cash flow inflection point in the second half of next year. The elevated levels of underground development and drilling over the past two years are expected to drop off mid next year leaving Kensington positioned to deliver positive free cash flow with greater operational flexibility and a longer mine life. Mick and IFA will both touch on the progress at Kensington.

Mitchell Krebs: And so just by function of the timing of tons being put out there on stage six. It's really the driver behind what we decided to do with the cost guidance in the back half of the year for Rochester.

Mitchell Krebs: And so just by function of the timing of tons being put out there on stage six, that's really the driver behind what we decided to do with the cost guidance in the back half of the year for Rochester. Nick, anything you want to add?

Speaker Change: It's really the driver behind what we decided to do with the cost guidance in the back half of the year for Rochester.

Michael Dudas: Nick, anything you want to add? Yeah, we're really happy with the ramp up, and as Matt and Mitch said, we took the opportunity to really dim the work so that once we've got up to that name-played capacity and run rate, we could stay there while in the second half optimizing the size PSD so we can get those recoveries up. So everything's going the way we expect; the two just a little bit delayed on a few of those items to the part. And I guess just to follow up one last thing, Joe, there it was, I think in the comments we made or maybe in the release, just with some of that the downtime, then we took the opportunity to, with the trucks, to haul some run-of-mind material.

Nick: We're really happy with the ramp-up, but as Mitch said, we took the opportunity to really do the work so that once we got up to that nameplate capacity and run rate, we could stay there while in the second half optimizing the size PSD so we can get those recoveries up. So, everything's going the way we expected to, just a little bit delayed on a few of those entries to the pad.

Nick: We are really happy with the ramp up, but as Matt said, we took the opportunity to do the work so that once we got up to that nameplate capacity and run rate, we could stay there, while in the second half, optimizing the size PSD so we can get those recoveries up. Everything is going the way we expected it to, although there was a little bit of a delay on a few of those incidents...

Speaker Change: anyone add we're really happy withwhich the r book and with miss said we took the opportunity to do the work so what we've got up to that new and plead capacity and run ate look could stay there way in the second half optimizeing the size pd so we can get those recovery zor so everythings go the way we expect to just a little bit lead on a few events to and i guess just to follow up one last thing joe there was i think in that

Mitchell Krebs: And I guess just to follow up one last thing, Joe, there. It was, I think, in the comments we made or maybe in the release just with some of that downtime. Then we took the opportunity with the trucks to haul some run of mine material so that was also a part of the equation as we thought about second half cost guidance for Rochester.

Mitchell Krebs: It was great to close the acquisition last month of two key concessions from Fresneo and consolidate the land package to the east of Palmareo.

Speaker Change: comments we made or maybe in the release just with some of that the downtime then we took the opportunity to

Mitchell Krebs: IFA will talk in a couple of minutes about our plans and priorities for this large prospective land position that sits outside the Franco Nevada Gold Stream boundary and provide a whole new set of higher margin mine life extension opportunities at Palmareo. IFA will also cover the objectives and progress from the summer exploration program underway at Silver. We continue to believe that the convergence of all of these catalysts, higher commodity prices, a ramped-up broadchester, a stable suite of US-centric minds full of organic growth opportunities, and a world-class Canadian exploration project, along with our impending transition to positive free cash flow, followed by a period of aggressive debt reduction, sets us apart from our peers and leads us in a great place heading into the second half.

Mitchell Krebs: So that was also a part of the equation as we thought about second half cost guidance. We're right, just. Okay, that's helpful.

Speaker Change: with the trucks to haul some run-of-mine material. So that was also a part of the equation as we thought about second half cost guidance for Rochester.

Mitchell Krebs: Okay, that's helpful. Land that was acquired near Palmareo, when do you think the earliest time frame would be when you pull your first ounce out of the ground?

Joseph Reagor: On the land that was acquired near Palma Rio, when do you think the earliest timeframe would be, you know, you pull your first ounce out of the ground there? Good question. We'll probably start seeing some drilling, first part of next year, particularly in that nearer section that's outlined on that slide in the materials. Of course, a lot of the underground development then, we'll have to come on the heels of defining mineralization further there, really on the southeast or an extension of both Independencia and Nasione, which would, you know, probably put us into in the 2026 as far as the first window of seeing some ounces out of that, that nearer area that we just acquired from Fresno, EFA, Mac anything.

Speaker Change: okay that's the help helpful um on the the landthere was aacquired near palmmer o when do you think the earliest time frame would be worse you know you pull your first outside of the ground there

Mitchell Krebs: We'll probably start seeing some drilling in the first part of next year, particularly in that nearer section that's outlined on that slide in the materials. Of course, a lot of the underground development then will have to come on the heels of defining mineralization further there, really on the southeastern extension of both into Peninsula and Nacion, which would probably put us into 2026 as far as the first window of seeing some ounces out of that nearer area that we just acquired from Fresnillo.

Mitchell Krebs: We'll probably start seeing some drilling in the first part of next year, particularly in that nearer section that's outlined on that slide in the materials. Of course, a lot of the underground development then will have to come on the heels of defining mineralization further there, really, on the southeastern extension of both into Peninsula and Nacion, which would probably put us into 2026 as far as the first window of seeing some ounces out of that near area that we just acquired from Fresnillo. Aoife, Mick, anything?

Speaker Change: Good question.

Speaker Change: We'll probably start seeing some drilling.

Speaker Change: first part of next year.

Speaker Change: particularly in that nearer section that's outlined on that on that slide in the materials.

Mitchell Krebs: Of course, a lot of the underground development then will have to come on the heels of defining mineralization further there, really on the southeastern extension of both into Peninsula.

Michael Dudas: Nick, over to you. Thanks, Mitch. Rochester's successful ramp-up and consistent contributions from across our portfolio have the company well-positioned at the midway of point of 2024. More importantly, Coeur's deeply embedded safety culture continues to show through, in our overall safety performance. I'm pleased to report that a key threat of war in June marked one year at the operation without a lost payment student. Also in June, several individuals at Rochester were honored with safety awards by the Nevada Manual Association.

Speaker Change: and Nacion, which would, you know, probably put us into into 2026.

Speaker Change: as far as the first window of seeing some ounces out of that mirror.

Mitchell Krebs: Aoife, Mick, anything? The great thing is that underground, it's close to infrastructure, it's already areas that we're mining, so it's really extensions of those areas, so as Mitch said, that's some work to do. We'll have to characterize it, we'll have to develop towards it, but it's not too far away.

Mitchell Krebs: area that we just acquired from freso

Mitchell Krebs: Yeah, the great thing is that underground, it's close to infrastructure. It's already areas that have been mined, so it's really extensions of those areas. So, as Mitch said, there's some work to do. We'll have to characterize it, and we'll have to develop towards it, but it's not too far away.

Mitchell Krebs: Yeah, the other thing is that on the ground, it's close to infrastructure. It's already areas that were mining, so it's really extensions of those areas. So, as Mitch said, there's some work to do. We'll have to categorize it; might have to develop towards it, but it's not too far away. Yeah, the first, the first program that we're going to undertake there is some re-logging off that old Fresno core, and that's going to happen imminently. We've been mapping and sampling throughout that total land package this year, and we would aim to get the drills in early next year.

Speaker Change: Aoife, Nick anything? Yeah, the great thing is that underground it's close to infrastructure it's already areas that were mining so it's really extensions of those areas so as Mitch said that's there's some work to do we'll have to characterize it and we'll have to develop towards it but it's not too far away.

Mitchell Krebs: The first program that we're going to undertake there is some re-logging of that old Fresneo core, and that's going to happen imminently. We've been mapping and sampling throughout that whole land package this year, and we would aim to get the drills in there pretty early next year.

Aoife McGrath: The first program that we're going to undertake there is some re-logging of that old Fresneo core, and that's going to happen imminently. We've been mapping and sampling throughout that old land package this year, and we would aim to get the drills in there pretty early next year.

Michael Dudas: Congratulations to the team there for their contributions to pursuing a higher standard in safety. Turning to our second quarter results on slide four and kicking off with Rochester. Silver production in the second quarter increased to 973,000 ounces, while gold production increased to over 8,000 ounces, driven by more crushed tons placed with the new circuit. I've reported on July 11th, placement of answers during the second quarter was later than the mission planned, but Rochester remains on track to deliver on 2024 production gains.

Speaker Change: The first program that we're going to undertake there is some re-logging of that old Fresneo core and that's going to happen imminently. We've been mapping and sampling throughout that whole land package this year and we would aim to get the drills in there pretty early next year.

Joseph Reagor: Okay, sounds good.

Mitchell Krebs: Okay, sounds good. And then last thing, as cash flow increases and you guys are able to focus on debt repayment, what's the cash balance you guys would like to cover, and how much debt would you guys like to wipe out over the next couple of years?

Joseph Reagor: Okay, sounds good. And then last thing, as cash flow increases and you guys are able to focus on debt repayment, what's the cash balance you guys would like to cover, and how much debt would you guys like to wipe out over the next couple of years?

Thomas Whelan: And then last thing, as cash flow increases, and you guys are able to focus on that repayment, what's the cash balance you guys would like to cover, and how much debt would you guys like to wipe out over the next couple of years? Yeah, Tom, do you want to talk about how we see the balance sheet and where we're trying to get over the longer term? Yeah, morning, Joe. I just go back to our comments. We're always aiming for a total debt to be the long term of one time, and a net debt to be the mill.

Speaker Change: okay sounds good and then last thing as cash flow increases and you guysare able to folcus on their repayment what's the cash balance you guys would like to cover and how much debt would you guys like to wipe out or you know over the next couple of years

Michael Dudas: Over the first several weeks of the third quarter, throughput rates have regularly achieved or exceeded expected average running capacity of 88,000 tons per day, and the team continues to take full advantage of down periods to optimise and refine the operation. We crushed in place nearly 2 million tons in July, and we were in well-positioned to deliver a crushing and placement rate of 78 million tons per quarter in the second half and into 2025.

Tom: Yeah, Tom, you want to talk about how we see the balance sheet and where we are where we're trying to get in the longer term? Yeah. Morning, Joe. Just, uh...

Speaker Change: Yeah, Tom, you want to talk about how we see the balance sheet and where we're where we're trying to get over the longer term?

Tom: Yeah, Tom, do you want to talk about how we see the balance sheet and where we are where we're trying to get in the longer term? Yeah. Morning, Joe. Just, uh...

Tom: I'll just go back to our comments. We're always aiming for a total debt to EBITDA long term of one time and a net debt to EBITDA of nil. And so, you know, to get there, when you look at where our senior notes balance looks like right now, just under a shade under $300 million, that kind of marries up to what we think the long-term EBITDA of the company is going to be on a go-forward basis.

Joe: yes morning joe just

Tom: I just go back to our comments. We're always aiming for a total debt to EBITDA long term of one time and a net debt to EBITDA of nil.

Thomas Whelan: And so to get there, when you look at where a senior notes bounce looks like right now, just under a shade of shade under $300 million, that kind of marries up to what we think long-term EVDA of the company's going to be on a go-fold basis. So once the free cash flow starts happening in the second half of the year, it's all going to be geared towards repaying that revolver. I mean, how fast could we get that revolver paid? How fast could we get to those that long-term vol? I think it'd be a stretch to say we'd have it done by the end of '25, but certainly in '26.

Speaker Change: And so, you know, to get there, when you look at where our senior notes balance looks like right now, just under a shade, shade under $300 million, that kind of marries up to what we think long-term EBITDA of the company is going to be on a go-forward basis.

Michael Dudas: Concerned with delivering these higher crushing and placement rates, our focus in the second half of 2024 will be on working down material crush size towards a targeted five-eighths of an inch in order to maximise recoveries. Moving on to Palmeray Hall, the main follow-up of the very strong first quarter with another solid three months delivering about 25,000 tons of gold and nearly 1.6 million ounces of silver. In June, the team broke growing on a third access port or at Hidalgo, which is expected to significantly enhance our underground main development and exploration efforts at this future also, so we'll cater just north and west of independence here.

Tom: So once the free cash flow starts happening in the second half of the year, it's all going to be geared towards repaying that revolver. I mean, how fast could we get that revolver paid off, how fast could we get to that long-term goal? I think it would be a stretch to say we'd have it done by the end of 2025, but certainly in 2026. You know, it's not out of the question, though, in 2025 if commodity prices were to bounce back up and stay at levels just a little bit higher than this.

Tom: So once the free cash flow starts coming in the second half of the year, it's all going to be geared towards repaying that revolver. I mean, how fast could we get that revolver paid off? How fast could we get to that long-term goal? I think it would be a stretch to say we'd have it done by the end of 2025, but certainly in 2026. You know, it's not out of the question, though, in 2025 if commodity prices were to bounce back up and stay at levels just a little bit higher than this.

Tom: So, once the free cash flow starts happening in the second half of the year, it's all going to be geared towards repaying that revolver.

Speaker Change: I mean how fast can we get that revolver paid? How fast can we get to those

Speaker Change: that long-term goal. I think it'd be a stretch to say we'd have it done by the end of 25.

Thomas Whelan: You know, it's not out of the question, though, in 25, if the commodity prices were to bounce back up and stay at a level, it's just a little bit higher than this. So, in terms of the minimum cash, you know, we probably want to always have at least $50 million on the balance sheet, you know, operating in three jurisdictions. It's probably nice to be at maybe a little bit higher than that, but the bare minimum we need is $50 million. Okay, good stuff, guys.

Speaker Change: but certainly in 26. You know it's not out of the question though in 25 if commodity prices were to bounce back up and stay at levels just a little bit higher than this. So and in terms of the minimum cash

Tom: So, and in terms of the minimum cash, you know, we probably want to always have at least $50 million on the balance sheet, operating in three jurisdictions. It's probably nicer to be maybe a little bit higher than that, but the bare minimum we need is $50 million.

Michael Dudas: Following the completion of the transaction with Fresno, the operating team is working closely with the exploration team on plans to pursue near-term development opportunities, which I will discuss further in a moment. At counting to, the operation continues to regain momentum, where significant improvements have been realised in long-haul drilling capacity, paste placement and getting more stockpfeet to the surface. As Mitch mentioned, the Kensington team had gone the hard yards to position the operation as a long-lived, revitalized source of free cash flow generation starting in the second half of next year.

Tom: We probably want to always have at least $50 million on the balance sheet, operating in three jurisdictions. It's probably nicer to be maybe a little bit higher than that, but the bare minimum we need is $50 million.

Joseph Reagor: Okay, good stuff guys. I'll turn it over. Yeah, thanks, Joe. Once more, if you have a question, please press.

Joseph Reagor: Okay, good stuff guys, I'll turn it over. Yeah, thanks, Joe. Once more, if you have a question, please press.

Joseph Reagor: I'll turn it over.

Operator: Yeah, thanks, Jill. Once more, if you have a question, please press star, then one.

Joseph Reagor: Okay, good stuff guys. I'll turn it over.

Operator: Once more, if you have a question, please press star, then 1. Our next question comes from Marc Ferrari of the National Bank Fund.

Operator: Once more, if you have a question, please press star, then 1. Our next question comes from Mark Ferrari of National Bank Finance.

Joe: Yeah, thanks Joe.

Speaker Change: Once more, if you have a question, please press star then 1. Our next question comes from Mark Ferrari of National Bank Finance. Please go ahead.

Marc Ferrari: Our next question comes from Marc Ferrari of National Bank Finance. Please, go ahead. Hi, guys.

Michael Dudas: I'm wondering on just wondering how the Rochester Crushing Circuit is performing on a reliability basis, and if you guys are seeing any problem areas. Yeah, Mick, you want to give an update on kind of July, August, and then how do you see the back half of this year going and then into 2025? Yeah, really we're seeing good things. I mean, we're still only four, five months into what would be a longer rumble, and we hit the main plate. We're really happy about that. We're seeing consistent numbers on a daily basis, running at that sort of 90 to 100,000 tons per day.

Mark Ferrari: Hi, guys.

Michael Dudas: The multi-air capital development investment continues to advance well with progress ahead of schedule, with additional funds being allocated to the programme to provide more operator inflexibility and to access new all the ones. The programme now stands at an 82% complete for the current scope of the project. Finishing up with Wharf, strong grades drove increased Wharf production to 22,000 ounces in the quarter, while adjusted costs decreased 29% compared to the first quarter to an impressive $822 price.

Speaker Change: do ihavem wondering not just wondering how the rochester questioning circuit is performing on the reliability basis and if you guys you' seen any problem as

Mick: Yeah, Mick, do you want to give an update on kind of July, August, and then how you see the back half of this year going and then into 2025? Yeah, really. We're seeing good things. I mean, we're still only four or five months into what would be a longer rumble, then we hit the nameplate.

Mark Ferrari: Yeah, Mick, do you want to give an update on kind of July , August , and then how you see the...

Speaker Change: back half of this year going and then into...

Mick: 2025

Speaker Change: Yeah, really we're seeing good things. I mean, we're still only four or five months into

Mick: We're really happy about that. We're seeing consistent numbers on a daily basis, running at that sort of 90 to 100,000 tons per day. And so, you know, last month, even with a few downs, we delivered nearly 2 million tonnes to the pad. Our expectation is north of that for the rest of the year, expecting to land between 7 and 8 million tonnes per quarter. And that's really set up and worked well because, during that period of 78 million tons, we were continuing to optimize for size fraction.

Mick: What would be a longer ramp-up, and we hit the nameplate, we're really happy about that. We're seeing consistent numbers on a daily basis, running at 90 to 100,000 tonnes per day.

Michael Dudas: And so, you know, last month, even with a few downs, we delivered nearly two million tons to the pad. What expectation is north of that for the rest of the year and expect to line between 78 million tons per quarter. And that's really setting work well because during that period of 78 million tons, we are continuing to optimize for size fraction. We're already seeing that getting dialed in a little bit. We're seeing some really good results coming from July and a good start to August. And so, it's given us a lot of confidence that we'll hit the 32 million tons in 2025, and we'll have that size fraction dialed into the five years and be getting the recoveries that we expect going forward.

Michael Dudas: When Wharf was acquired by Coeur in 2015, Reserves stood at approximately 560,000 ounces. A year in 2023, nine years later, Wharf's Gold Reserves stood at over 760,000 ounces, with even further exploration upside. The team there has recently identified two new opportunities, near existing mining areas, aimed at substantially extending Wharf's already long-life.

Mick: and so last month even with the few gs we deliver near two million tonns to the pad

Mick: Our expectation is north of that for the rest of the year, expecting to land between 7 and 8 million tonnes.

Mick: per quarter.

Speaker Change: and that's really set work well because during that period of 78 million tons we are continuing to optimize for size fraction. We're already seeing that getting dialed in a little bit and we're seeing some really good results coming from July and a good start to August .

Mick: We're already seeing that getting dialed in a little bit, and we're seeing some really good results coming from July and a good start to August. And so it's given us a lot of confidence that we'll hit the 32 million tonnes in 2025, and we'll have that size fraction dialed into the five-eighths and be getting the recoveries that we expect going forward. So yeah, overall, everything's doing what we said it would do, and we're pretty happy with the performance.

Mick: We're already seeing that getting dialed in a little bit, and we're seeing some really good results coming from July and a good start to August. And so, it's given us a lot of confidence that we'll hit the 32 million tonnes in 2025, and we'll have that size fraction dialed into the five-eighths and be getting the recoveries that we expect going forward. So, yeah, overall, everything's doing what we said it would do, and we're pretty happy with the performance.

Michael Dudas: The two targets, North-Forey and June rule, will be tested over the remainder of 2024 and 2025 to demonstrate the scope of the potential opportunity.

Speaker Change: And so it's given us a lot of confidence that we'll hit the 32 million tons.

Mick: in two thousand and twenty five

Mick: and we'll have that size fraction dialled into the 5.8s and be getting the recoveries that we expect going forward. So yeah, overall, everything's doing what we said it would do and we're pretty happy with the performance. Yeah, the first half theme was stabilized and now the second half theme is optimized.

Michael Dudas: So, yeah, overall, everything's doing what we said it would do, and we're pretty happy with the performance. Yeah, the first half theme was stabilized, and now the second half theme is optimized, and I think it's fair to say we're comfortably into that optimized mode, their Rochester. Yeah, there's a few little jobs to do, but our day here, a couple of days there, to fine-tune as we go through the back end of the year and optimize that size fraction.

Mick: Yeah, the first half theme was stabilised, and now the second half theme is optimized, and I think it's fair to say we're comfortably into that optimized load there at Rochester. Yeah, there are a few little jobs to do, but there are a day here, a couple of days there to fine-tune as we go through the back end of the year, and we'll optimize that size bracket.

Mick: Yeah, the first half theme was stabilised, and now the second half theme is optimized, and I think it's fair to say we're comfortably into that, that optimized load there at Rochester. Yeah, there are a few little jobs to do, but there are a day here, a couple of days there.

Thomas Whelan: I'll finish with an update on our plans for delivering the balance sheet on the back of Rochester's and the overall company's return to free cash flow. As detailed on slide 10, Coeur's rapidly improving financial results are due to the three-way combination of stronger gold and silver production, higher metals prices, and declining levels of capital spending at Rochester. With Rochester continuing to settle into steady state operation, and the rest of the portfolio delivering 100% unheds gold and silver production, that free cash flow inflection point is upon us.

Mick: I think it's fair to say we're comfortably into that.

Mick: Yeah, there's a few little jobs to do, but there are days here, a couple of days there to fine-tune as we go through the back end of the year, and we'll optimize that size bracket.

Mick: that optimize mode their rochester yes a few little jobs to do but very third day year a couple of is there to f un as we will go through the back end of the end optimize that size structction

Marc Ferrari: Okay, perfect. That's great color. That's all for me. Thank you.

Speaker Change: Okay, perfect. That's great color. That's all for me. Thank you.

Operator: Yes.

Operator: This concludes our question and answer session.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Mr. Mitchell Krebs for any closing remarks.

Mitchell Krebs: This concludes our question and answer session. I would like to turn the conference back over to Mr. Mitchell Krebs for any closing remarks.

Speaker Change: Cheers!

Mitchell Krebs: I would like to turn the conference back over to Mr. Mitchell Krebs for any closing remarks. Okay. Well, hey, we appreciate everybody's time today, and we look forward to talking again in November to discuss our third quarter results.

Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to Mr. Mitchell Krebs for any closing remarks.

Thomas Whelan: We remain on track to achieve 2024 production guidance at each of our operations, and have made the following refinements to our 2024 cost guidance. At Paul Morello, higher grades combined with easing inflationary pressures and a weaker Mexican peso have resulted in a reduction in its 2024 CAS guidance. 2024 CAS guidance at Wharf has also been reduced as a result of better than expected pressure performance and mining efficiencies due to ongoing business improvement initiatives.

Mitchell Krebs: Okay, well, we appreciate everybody's time today, and we look forward to talking again in November to discuss our third quarter results. Until then, have a good end to the summer and fall. Bye-bye.

Speaker Change: okaywellll here we appreciate everybody's time today and we look forward to talking again in november to discuss our third quarter results

Mitchell Krebs: Until then, have a good end of the summer and fall. Bye-bye.

Speaker Change: until then have have a good end of the summer and fall thebyei

Operator: The conference is now concluded. Thank you for attending today's presentation.

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

Speaker Change: the conference is now concluded thank you for ing today's presentation now

Operator: You may now disconnect.

Thomas Whelan: We also accelerated equipment purchases to lock-in savings, and there were a handful of post start-up modifications. At Kensington, we increased our full-year capital range to reflect accelerated underground mine development and exploration investments, which reflect higher-than-plan productivity by both our underground mine development and drilling contractors. And at Wharf, we increased our full-year exploration guidance to reflect drilling we planned to carry out at the recently identified opportunities that Mac just mentioned.

Operator: In the name of God, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the Most Merciful, the

Thomas Whelan: This allocation of capital is consistent with our capital allocation framework as highlighted on slide 13. Turning to the balance sheet on slide 12, we ended the quarter with approximately $275 million gone on our $400 million revolving credit facility. Our balance sheet ratios have already seen significant improvements since the high watermark one year ago, and we now sit below three times net debt to EBDA for the first time in over two years.

Aoife McGrath: I will now pass the call to Ethan. Thanks, Tom. Starting at Pamareo on slide 8, the newly acquired concessions from Fresno provide us with full access to the four northwest trending mineralized belts in the district. Of these belts, the mind trend has seen the most historic exploration with a high percentage of resource and reserve answers coming from the deposits here. The new independentia sewer claim block highlighted in the red oval in the center of the map contains the southeast extension of the mind trend.

Aoife McGrath: It sits directly adjacent to our existing mining infrastructure and contains the continuation of a number of key veins including independentia and lanacion. For the new conductor drilling on this block and we are hopeful that with additional exploration we can outline new resources in the very near term.

Aoife McGrath: Mapping is already well underway and re-logging of Fresno core and incorporating it into core database and geological models are immediate aims with drilling planned for early 2025. The new Guazapare is block of concessions outlined in the large red oval on the top right of the map is the most easterly northwest trending belt of mineralization at Pamareo. It turns multiple advanced exploration targets containing significant drilling and historic resources that were added to core portfolio to the 2015 acquisition of Pyraman gold and silver.

Aoife McGrath: This new block of Fresno concessions allows full access to these historic resources and opens up significant dam depth and the long strike opportunities. Validation of these historic resources and extension and long strike and dam depth is a short to medium-term exploration focus, between the North West trending mine and Guazapari trends of mineralization exists the Camuchin Escondida trend. This is the third of four identified belts of Camareo and has a number of key exploration targets that are expected to spam the short to long term exploration focus.

Aoife McGrath: We look forward to providing an update on the program later in the year. At Kensington, the multi-year program is progressing well and is outlining new zones in upper and lower Kensington and is showing continuity of mineralization between Almira and Almira set. We continue to be very encouraged for ongoing mine life growth to write this program.

Aoife McGrath: With that, I'll have the call back too much. Thanks, Eva.

Mitchell Krebs: Before moving to the Q&A, I want to quickly highlight slide 14 that summarizes our top priorities for the remainder of the year. We're looking forward to delivering a strong and safe second half highlighted by higher production levels, positive free cash flow and lower debt levels as we build up momentum heading into what should be a fantastic 2025. With that, let's go ahead and open it up for questions. We will now begin the question and answer session.

Mitchell Krebs: To ask a question, you may press star then one on your touch tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, please press star then two. At this time, we will pause momentarily to assemble our roster.

Joseph Reagor: Our first question comes from Joseph Rhaegor of Roth Capital Partners. Please go ahead. Hey, Mitch and team. Thanks for taking my questions. Hi, Joe. First thing, on Rochester, you guys suggested the cost guidance there and there was some note about that being related to placement timing. Can you give us a little more color on that? What exactly is driving that? If there was any changes to your expectations as far as cost excluding that item? Yeah, sure.

Mitchell Krebs: I'll take a crack at it and then Nick, maybe you can follow up. It's really Joe a function of the denominator versus the numerator. No real changes at all in any of the inputs. It was really a function of timing, of ounces placed out onto stage six. In the second quarter, we took a few more downs than planned to knock out some items that had been identified during the ramp up to try and make sure we've got a good clean second half ahead of us.

Mitchell Krebs: And so just by a function of the timing of tons being put out there on stage six, it's really the driver behind what we decided to do with the cost guidance in the back half of the year for Rochester.

Michael Dudas: Nick, anything you want to add? Yeah, we're really happy with the ramp up and as Matt and Mitch said, we took the opportunity to really dim the work so that once we've got up to that name-played capacity and run rate, we could stay there while in the second half optimizing the size PSD so we can get those recoveries up. So everything's going the way we expect the two just a little bit delayed on a few of those items to the part.

Michael Dudas: And I guess just to follow up one last thing, Joe, there it was I think in the comments we made or maybe in the release, just with some of that the downtime then we took the opportunity to with the trucks to haul some run-of-mind material. So that was also a part of the equation as we thought about second half cost guidance. We're right, just. Okay, that's helpful.

Mitchell Krebs: On the land that was acquired near Palma Rio, when do you think the earliest timeframe would be, you know, you pull your first ounce out of the ground there? Good question. We'll probably start seeing some drilling, first part of next year, particularly in that nearer section that's outlined on that slide in the materials. Of course, a lot of the underground development then, we'll have to come on the heels of defining mineralization further there, really on the southeast or an extension of both independencia and nasione, which would, you know, probably put us into in the 2026 as far as the first window of seeing some ounces out of that, that nearer area that we just acquired from Fresno, EFA, Mac anything.

Mitchell Krebs: Yeah, the other thing is that on the ground, it's close to infrastructure. It's already areas that were mining, so it's really extensions of those areas. So as Mitch said, there's some work to do. We'll have to categorize it, might have to develop towards it, but it's not too far away. Yeah, the first, the first program that we're going to undertake there is some re-logging off that old Fresno core, and that's going to happen imminently. We've been mapping and sampling throughout that total land package this year, and we would aim to get the drills in the early next year.

Joseph Reagor: Okay, sounds good.

Thomas Whelan: We're always aiming for a total debt to be the long term of one time, and a net debt to be the mill. And so to get there, when you look at where a senior notes bounce looks like right now, just under a shade of shade under $300 million, that kind of marries up to what we think long-term EVDA of the company's going to be on a go-fold basis. So once the free cash flow starts happening in the second half of the year, it's all going to be geared towards repaying that revolver.

Thomas Whelan: I mean, how fast could we get that revolver paid? How fast could we get to those that long-term vol? I think it'd be a stretch to say we'd have it done by the end of 25, but certainly in 26. You know, it's not out of the question, though, in 25, if the commodity prices were to bounce back up and stay at a level, it's just a little bit higher than this. So, in terms of the minimum cash, you know, we probably want to always have at least $50 million on the balance sheet, you know, operating in three jurisdictions. It's probably nice to be at maybe a little bit higher than that, but the bare minimum we need is $50 million.

Joseph Reagor: Okay, good stuff, guys. I'll turn it over. Yeah, thanks, Jill. Once more, if you have a question, please press star then one.

Marc Ferrari: Our next question comes from Marc Ferrari of National Bank Finance. Please, go ahead. Hi, guys.

Michael Dudas: I'm wondering on just wondering how the Rochester Crushing Circuit is performing on reliability basis, and if you guys are seeing any problem areas. Yeah, Mick, you want to give an update on kind of July, August, and then how do you see the back half of this year going and then into 2025? Yeah, really we're seeing good things. I mean, we're still only four, five months into what would be a longer rumble, and we hit the main plate.

Michael Dudas: We're really happy about that. We're seeing consistent numbers on a daily basis, running at that sort of 90 to 100,000 tons per day. And so, you know, last month, even with a few downs, we delivered nearly two million tons to the pad. What expectation is north of that for the rest of the year and expect to line between 78 million tons per quarter. And that's really setting work well because during that period of 78 million tons, we are continuing to optimize for size fraction.

Michael Dudas: We're already seeing that getting dialed in a little bit. We're seeing some really good results coming from July and a good start to August. And so, it's given us a lot of confidence that we'll hit the 32 million tons in 2025, and we'll have that size fraction dialed into the five years and be getting the recoveries that we expect going forward. So, yeah, overall, everything's doing what we said it would do, and we're pretty happy with the performance.

Michael Dudas: Yeah, the first half theme was stabilized, and now the second half theme is optimized, and I think it's fair to say we're comfortably into that optimized mode, their Rochester. Yeah, there's a few little jobs to do, but our day here, a couple of days there, to fine tune as we go through the back end of the year and optimize that size fraction.

Marc Ferrari: Okay, perfect. That's great color. That's all for me. Thank you. Yes.

Operator: This concludes our question and answer session.

Operator: Until then, have a good end of the summer and fall. Bye-bye.

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

Q2 2024 Coeur Mining Inc Earnings Call

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