Coeur Mining Inc (CDE) To Acquire Wharf Mine Conference Call Transcript

Mitchell J. Krebs

Okay, two things there. One, weighted average cost of capital that we run — 10 or 11% is what we run all of our NPVs at. In terms of term sheets, it is all kind of sub-5%, at least the ones that we’ve adapt and at least we intend to move forward with, especially interesting exercise of different proposals but sub-5 is a good number to assume.

Jorge Beristain

Right, thanks a lot guys.

Mitchell J. Krebs

Yeah thanks.

Operator

Your next question comes from the line of Brett Levy from Jeffries. Your line is open.

Brett Levy, Jefferies & Company

Hey guys. Do you have an estimated EBITDA for the acquired assets for 2015? I mean it says increase 2015 by over 30%. Is there a range or is the anything along those lines? And then also talk about CapEx as you see it, for your acquired assets in 2015.

Mitchell J. Krebs

Yeah. We haven’t put out — for our company at 2015 is a done number. Probably the best way to back into the magnitude of EBITDA from Wharf, I guess you could triangulate it two ways. One, on an LTM basis, our EBITDA through the twelve months ended September 30th was $90 some million, so if you think about a 30 plus percent increase on that, that kind of gets you in the ball park. The other way I’d go at it is just based on the guidance for 2015 from Goldcorp of 85,000 to 90,000 ounces, if you use just today’s spot price of gold, and deduct that all-in sustaining cost, that simple math gets you to a number about in the same ball park kind of 30-ish. And then capital — I think this year is like $4.5 million.

Joe Philips

The big components of that are the repair of the liner on one of the leach pad that has been recycled and there is a liners and materials for pressure rebuild and the crank.

Brett Levy

Is there going to be any covenant issues of anything else that sort of — did you need anyway originally to get this done?\

Mitchell J. Krebs

No.

Brett Levy

Okay thanks for the time guys.

Mitchell J. Krebs

Thanks Brett.

Operator

Your next question comes from the line of Garreth Nelson from BB&T Capital Markets. Your line is open.

Garreth Nelson, BB&T Capital Markets

Hi Mitch. Just a follow-up on that last question on the mine’s EBITDA. Looking at Goldcorp’s filings, it looks like the mine generated $23 million of EBITDA in the first nine months of 2014. Is that where you’re sharing?

Mitchell J. Krebs

First nine months, yeah that is probably a pretty good run-rate.

Garreth Nelson

Okay so about 30. So that is the $30 million run-rate that you are referencing?

Mitchell J. Krebs

Yeah that looks — last year, I think with $15 million. A little bump into the graded material, you’ll probably be — if you added it into that number.

Garreth Nelson

Okay, just wanted to make sure I understand that. Thanks a lot.

Mitchell J. Krebs

No problem.