Kevin O'Halloran

Kevin O’Halloran with BMO Capital Markets asked for insights into unit cost trends and any prevailing cost pressures, noting the reduced cost guidance across most operations. He also inquired if Coeur Mining is processing lower-grade ore at operations other than Palmarejo due to higher metals prices.

Answer

Mitchell Krebs (President, CEO and Member of the Board of Directors, Coeur Mining) highlighted a 'sweet spot' of rising prices and flat input costs, with no significant cost pressures. Mick Routledge (SVP and COO, Coeur Mining) credited robust cost controls for maintaining discipline. Tom Whelan (SVP and CFO, Coeur Mining) added that despite higher royalties and a strong peso, cost guidance was lowered at three mines. Mick Routledge confirmed that while aiming to stick to mine plans, marginal ore is evaluated based on grade, tonnes, and recovery, as seen with positive outcomes at Palmarejo.

Kevin O’Halloran of BMO Capital Markets asked for more granularity on the Keno Hill ramp-up trajectory, specifically whether it would be gradual or lumpy. He also inquired about the company's current strategic thinking on advancing its Montana assets.

Answer

President & CEO Rob Krcmarov confirmed the Keno Hill ramp-up will be gradual, targeting around 330 tonnes per day in 2027 before reaching 440 tpd. Regarding the Montana assets, he stated the immediate focus is on the Casa Berardi review. SVP & General Counsel David Sienko added that they expect permit approval for Montana around October, which would allow exploration to begin. Mr. Krcmarov concluded that Montana is a non-core copper asset and the company would be receptive to a partnership.

Kevin O'Halloran questioned the expected timing for receiving permits at Keno Hill and the subsequent timeline for infrastructure construction. He also asked for the proportion of fixed versus variable costs at Keno and the specific capital allocation for the cooling project at Lucky Friday.

Answer

CEO Robert Krcmarov noted positive momentum on Keno Hill permitting but acknowledged it remains a risk. CFO Russell Lawlar outlined a two-year timeline for Phase 1 (440 tpd) infrastructure, with another two years for Phase 2 (600 tpd). An executive clarified Keno's costs are primarily fixed. Krcmarov specified the Lucky Friday cooling project capital is about $13 million for the next year, with mine development near $20 million.

Kevin O'Halloran from BMO Capital Markets asked if the Ying mine optimizations, such as XRT sorters and equipment upgrades, would be included in the updated life of mine plan and how they were tracking. He also requested an update on the development and production timeline for the Kuanping Project.

Answer

Lon Shaver, an executive, confirmed that all optimizations will be factored into the upcoming technical report's economics and life of mine plan, adding that progress is tracking well and has even uncovered new mineralized zones. For the Kuanping Project, he stated the plan is to break ground and begin mine construction by the end of the current fiscal year, using a 'bootstrapping' approach to reach early ore production, while advising to manage expectations for initial tonnage.

Kevin O'Halloran from BMO Capital Markets asked if optimizations like XRT sorters and equipment upgrades would be included in the updated Ying life of mine plan and how those initiatives are tracking. He also requested a reminder of the development and production timeline for the Kuanping project.

Answer

Lon Shaver, Executive, confirmed that all optimization factors (mining methods, costs, etc.) will be incorporated into the upcoming technical report and that these initiatives are tracking well to plan. For Kuanping, he stated the plan is to break ground and begin mine construction by the end of the current fiscal year, bootstrapping development to get into early ore, though initial tonnages will be modest.