CHICAGO–(BUSINESS WIRE)–Coeur Mining, today announced the completion of three initiatives to bolster its liquidity and materially enhance its balance sheet flexibility as it advances the transformational expansion of its Rochester silver and gold operation in Nevada.
- Increased its gold hedging program to provide meaningful downside price protection – Coeur has added to its gold hedging program to now cover 70% of its 2022 expected gold production at an average forward price of $1,955 per ounce. Additionally, the Company has hedged 38% of its 2023 expected gold production at an average forward price $1,982 per ounce. By converting its existing zero-cost collars into gold forward sales and adding new forward sales to its hedging program, the Company has put significant downside price protection in place for the remainder of the Rochester expansion, which is scheduled for completion in mid-2023. The Company’s silver price exposure remains unhedged.
- Expanded its revolving credit facility (“RCF”) –The Company has worked with its bank lending syndicate to increase its total available borrowing capacity under its RCF to $390 million from $300 million. The RCF’s other key terms remain unchanged.
- Completed its existing $100 million at-the-market (“ATM”) equity offering – Coeur completed a previously announced ATM program in March with the sale of approximately 22 million shares of common stock at an average price of $4.53 per share for gross proceeds of $100 million.
“These three actions provide enhanced funding clarity and significantly greater balance sheet flexibility as we look to unlock the value of the ongoing major expansion of our Rochester silver and gold operation in Nevada, which is expected to help drive strong free cash flow following completion,” said Thomas S. Whelan, Senior Vice President and Chief Financial Officer.
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the Company wholly-owns the Silvertip silver-zinc-lead development project in British Columbia and has interests in several precious metals exploration projects throughout North America.