Coeur Mining Inc.

Overview Key strengths Key risks Mineralization growth stemming from high investment in exploration. Cost overruns or delays related to the Rochester expansion project could pressure liquidity in 2022 and 2023. Current gold prices (above $1,800/oz) are higher than anticipated, which will provide additional support to the rating over the next 12 months. The potential for recurring increases in interest rates in 2022-2023 could cause gold prices to decline toward our assumption of $1,400/oz-$1,600/oz. Strong cash flow generation will continue to partly support high capital expenditure (capex) requirements related to the Rochester mine expansion project. Smaller scale operations (less than $1 billion of annual revenue) with a concentrated portfolio of five mines. The company?s S&P Global Ratings-adjusted leverage increased to 3.0x

...We expect Coeur to maintain S&P Global Ratings-adjusted leverage of less than 5x despite increased borrowing under its revolving credit facility to fund its cash flow deficits. The company's S&P Global Ratings-adjusted leverage increased to 3.0x in fiscal year 2021 (FY2021), which compares with our prior expectation of 2.2x, due to incremental debt related to its higher capex and exploration costs. Specifically, Coeur's capex increased to $298 million in FY2021, which compares with $97.8 million the prior year, because of its investments in the POA 11 expansion project at its Rochester mine. This expansion project includes constructing a new leach pad...

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