Double digit production increases and cost
reductions along with higher prices led to $49 million of net
income, $126 million of adjusted EBITDA1, and strong free cash
flow
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported third quarter 2024 financial results, including revenue of
$313 million and cash flow from operating activities of $111
million. The Company reported GAAP net income from continuing
operations of $49 million, or $0.12 per share. On an adjusted
basis1, Coeur reported EBITDA of $126 million, cash flow from
operating activities before changes in working capital of $87
million and net income from continuing operations of $47 million,
or $0.12 per share.
Key Highlights
- Strong production increases and lower costs across the
portfolio – Higher production at all four operations drove a
21% increase in gold production and 15% increase in silver
production, totaling 94,993 and 3.0 million ounces of gold and
silver, respectively. Costs applicable to sales per gold and silver
ounce both declined 12% compared to the prior quarter, leading to
margins more than double the prior period. Based on strong
year-to-date production and cost performance, the Company
reaffirmed its full-year guidance ranges
- Robust quarterly financial performance driven by higher
production and metals prices – Revenue of $313 million and
adjusted EBITDA1 of $126 million increased 41% and 140%
quarter-over-quarter, respectively. Operating cash flow totaled
$111 million and free cash flow reached $69 million during the
quarter, their highest levels in over a decade. Net income was $49
million and Adjusted EBITDA1 over the last twelve months (“LTM”)
increased 2.5x to $287 million compared to a year ago
- Rochester remains on-track to achieve year-end throughput
and production guidance – The recently expanded Rochester
silver and gold operation placed approximately 7.1 million tons
under leach during the quarter leading to production of 1.2 million
ounces of silver and 9,690 ounces of gold, representing
quarter-over-quarter increases of 19% and 21%, respectively. The
Company has reaffirmed full-year Rochester production guidance
ranges and expects approximately 7.0 - 8.0 million tons to be
placed under leach in the fourth quarter
- Announced acquisition of SilverCrest to create leading
global silver company – On October 4, 2024, Coeur announced an
agreement to acquire SilverCrest Metals Inc. (“SilverCrest”) in an
all-stock transaction with an implied value of approximately $1.7
billion as of the announcement date. The acquisition is anticipated
to close in the first quarter of 2025 and is expected to materially
enhance the Company’s cost and cash flow profile and immediately
accelerate the Company’s balance sheet de-leveraging
initiative
- Debt reduction initiative underway – During the third
quarter, the Company reduced its outstanding revolving credit
facility (“RCF”)2 balance by $50 million to $225 million, leading
to total liquidity of $222 million, including $77 million of cash,
and a net debt to EBITDA ratio below 2.0x for the first time in
three years
“Our strong third quarter operational and financial results
signal the beginning of what we expect to be a new chapter of
consistent free cash flow for Coeur,” said Mitchell J. Krebs,
Chairman, President and Chief Executive Officer. “Although higher
prices helped magnify our robust results, the team’s continued
focus on operational excellence drove costs down, leading to
significantly higher margins. Rochester continues to gather steam
during the second half and remains on-track to deliver a
step-change in production and cash flow during the remainder of the
year and be well-positioned to deliver a record breaking 2025.
“Furthermore, the recently announced acquisition of SilverCrest
and its high-grade, low-cost Las Chispas operation, coupled with
Rochester’s post-expansion profile, positions Coeur as a leading
silver company in terms of production, market capitalization and
liquidity, balance sheet flexibility, and cash flow profile at a
time when silver’s outlook continues to strengthen.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Gold Sales
$
223.8
$
154.1
$
151.8
$
187.7
$
139.5
Silver Sales
$
89.7
$
67.9
$
61.3
$
74.3
$
55.1
Consolidated Revenue
$
313.5
$
222.0
$
213.1
$
262.1
$
194.6
Costs Applicable to Sales3
$
156.7
$
144.7
$
146.0
$
192.3
$
147.9
General and Administrative
Expenses
$
11.0
$
11.2
$
14.4
$
10.2
$
9.5
Net Income (Loss)
$
48.7
$
1.4
$
(29.1
)
$
(25.5
)
$
(21.1
)
Net Income (Loss) Per Share
$
0.12
$
0.00
$
(0.08
)
$
(0.07
)
$
(0.06
)
Adjusted Net Income (Loss)1
$
47.2
$
(3.4
)
$
(19.0
)
$
(6.2
)
$
(18.6
)
Adjusted Net Income (Loss)1 Per
Share
$
0.12
$
(0.01
)
$
(0.05
)
$
(0.02
)
$
(0.05
)
Weighted Average Shares
Outstanding
400.8
399.9
385.0
380.5
356.7
EBITDA1
$
121.1
$
49.7
$
27.2
$
25.0
$
15.3
Adjusted EBITDA1
$
126.0
$
52.4
$
44.3
$
64.3
$
30.6
Cash Flow from Operating
Activities
$
111.1
$
15.2
$
(15.9
)
$
65.3
$
(2.4
)
Capital Expenditures
$
42.0
$
51.4
$
42.1
$
92.7
$
112.3
Free Cash Flow1
$
69.1
$
(36.2
)
$
(58.0
)
$
(27.4
)
$
(114.7
)
Cash, Equivalents & Short-Term
Investments
$
76.9
$
74.1
$
67.5
$
61.6
$
53.2
Total Debt4
$
605.2
$
629.3
$
585.6
$
545.3
$
512.2
Average Realized Price Per Ounce –
Gold
$
2,309
$
2,003
$
1,864
$
1,886
$
1,788
Average Realized Price Per Ounce –
Silver
$
29.86
$
26.20
$
23.57
$
24.79
$
24.88
Gold Ounces Produced
94,993
78,696
80,744
101,609
78,617
Silver Ounces Produced
3.0
2.6
2.6
3.1
2.3
Gold Ounces Sold
96,913
76,932
81,416
99,540
78,015
Silver Ounces Sold
3.0
2.6
2.6
3.0
2.2
Adjusted CAS per AuOz1
$
1,113
$
1,264
$
1,267
$
1,225
$
1,273
Adjusted CAS per AgOz1
$
15.67
$
17.71
$
14.63
$
17.03
$
17.85
Financial Results
Third quarter 2024 revenue totaled $313 million compared to $222
million in the prior period and $195 million in the third quarter
of 2023. The Company produced 94,993 and 3.0 million ounces of gold
and silver, respectively, during the quarter. Metal sales for the
quarter totaled 96,913 ounces of gold and 3.0 million ounces of
silver. Average realized gold and silver prices for the quarter
were $2,309 and $29.86 per ounce, respectively, compared to $2,003
and $26.20 per ounce in the prior period and $1,788 and $24.88 per
ounce in the third quarter of 2023.
Gold and silver sales represented 71% and 29% of quarterly
revenue, respectively, compared to 69% and 31% in the prior period.
The Company’s U.S. operations accounted for approximately 65% of
third quarter revenue compared to 63% in the second quarter of
2024.
Adjusted Costs applicable to sales per ounce1 of gold and silver
each decreased 12% quarter-over-quarter, largely due to higher
production in the period. General and administrative expenses
remained consistent quarter-over-quarter at $11 million.
Coeur invested approximately $25 million ($20 million expensed
and $5 million capitalized) in exploration during the quarter,
compared to approximately $18 million ($13 million expensed and $5
million capitalized) in the prior period. See the “Operations” and
“Exploration” sections for additional detail on the Company’s
exploration activities.
The Company recorded income tax expense of approximately $26
million during the third quarter. Cash income and mining taxes paid
during the period totaled approximately $9 million.
Quarterly operating cash flow totaled $111 million compared to
$15 million in the prior period, mainly driven by stronger
operating performance at each site and higher metals prices.
Third quarter capital expenditures were $42 million compared to
$51 million in the prior period, reflecting timing of payments
related to the Rochester expansion in the prior period. Sustaining
and development capital expenditures accounted for approximately
$35 million and $7 million, or 84% and 16%, respectively, of
Coeur’s total capital investment during the quarter.
SilverCrest Acquisition Transaction
On October 4, 2024, Coeur announced it had entered into a
definitive agreement (the “Agreement”) whereby a wholly-owned
subsidiary of Coeur will acquire all of the issued and outstanding
shares of SilverCrest pursuant to a British Columbia court-approved
plan of arrangement (the “Transaction”). Subject to satisfaction of
closing conditions, including requisite approvals by the
stockholders of Coeur, the shareholders of SilverCrest and
applicable regulators, the acquisition is expected to close late in
the first quarter of 2025.
Upon completion of the Transaction, existing Coeur stockholders
and SilverCrest shareholders will own approximately 63% and 37% of
the outstanding common stock of the combined company,
respectively.
Operations
Third quarter 2024 highlights for each of the Company’s
operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Tons milled
413,463
429,561
500,747
500,509
501,722
Average gold grade (oz/t)
0.070
0.066
0.070
0.060
0.055
Average silver grade (oz/t)
5.15
4.49
4.34
4.08
3.67
Average recovery rate – Au
94.8
%
89.9
%
95.2
%
89.4
%
97.6
%
Average recovery rate – Ag
85.6
%
82.8
%
83.7
%
79.4
%
86.9
%
Gold ounces produced
27,549
25,467
33,160
25,401
26,870
Silver ounces produced (000’s)
1,823
1,596
1,818
1,622
1,601
Gold ounces sold
28,655
24,313
33,462
24,848
26,018
Silver ounces sold (000’s)
1,861
1,542
1,796
1,644
1,534
Average realized price per gold
ounce
$
1,922
$
1,744
$
1,611
$
1,615
$
1,499
Average realized price per silver
ounce
$
29.71
$
26.48
$
23.64
$
24.78
$
24.96
Metal sales
$
110.4
$
83.2
$
96.4
$
80.9
$
77.3
Costs applicable to sales3
$
47.5
$
48.2
$
54.3
$
50.3
$
48.1
Adjusted CAS per AuOz1
$
818
$
1,006
$
901
$
1,010
$
917
Adjusted CAS per AgOz1
$
12.60
$
15.24
$
13.18
$
15.26
$
15.56
Exploration expense
$
4.3
$
2.6
$
2.5
$
2.7
$
2.2
Cash flow from operating
activities
$
55.6
$
23.7
$
25.6
$
24.1
$
22.6
Sustaining capital expenditures
(excludes capital lease payments)
$
4.0
$
3.1
$
4.7
$
6.9
$
8.4
Development capital
expenditures
$
4.0
$
2.8
$
2.1
$
2.0
$
2.4
Total capital expenditures
$
8.0
$
5.9
$
6.8
$
8.9
$
10.8
Free cash flow1
$
47.6
$
17.8
$
18.8
$
15.2
$
11.8
Operational
- Third quarter gold and silver production totaled 27,549 and 1.8
million ounces, respectively, compared to 25,467 and 1.6 million
ounces in the prior period and 26,870 and 1.6 million ounces in the
third quarter of 2023
- Higher production during the quarter was primarily driven by
higher average grades and recoveries, partially offset by lower
tons milled
Financial
- Adjusted CAS1 for gold and silver on a co-product basis
decreased 19% and 17% quarter-over-quarter to $818 and $12.60 per
ounce, respectively, driven by higher metal sales
- Capital expenditures increased 36% quarter-over-quarter to $8
million, reflecting higher underground development primarily
focused on Hidalgo, which is expected to create additional
operating flexibility by year-end
- Free cash flow1 in the third quarter totaled $48 million
compared to $18 million in the prior period
Exploration
- Exploration investment for the third quarter totaled
approximately $4 million (substantially all expensed) compared to
roughly $3 million (substantially all expensed) in the prior
period
- Up to seven rigs were active during the quarter, mainly focused
on the Zapata - Guadalupe corridor, expansion drilling along the
western extension of the Hidalgo corridor (La Libertad), and
targets within Hidalgo and multiple structures parallel to
Independencia
- Drilling along strike of La Libertad continues to encounter
favorable host rocks and hydrothermal quartz-calcite vein and
breccia splay zones with drilling showing potential for future
resource expansion
- Exploration and prospecting continue immediately east of the
current operation and outside of the area subject to the gold
stream. Mapping of recently acquired claims from Fresnillo located
immediately southeast of existing operations has identified
brecciated and silicified veins that are believed to be extensions
and parallel veins to those currently being mined
- Geological mapping continues to the east of Palmarejo in the
Guazapares area around the San Miguel and San Antonio prospects and
has successfully identified new vein extensions and parallel
structures, signaling promising prospects for future exploration.
Scout drilling commenced on one target in this district during the
quarter
Other
- Approximately 30% of Palmarejo’s gold sales in the third
quarter were sold under the gold stream agreement at a price of
$800 per ounce, totaling 8,720 ounces. The Company anticipates
approximately 30% - 40% of Palmarejo’s 2024 gold sales will be sold
under the gold stream agreement
Guidance
- Full-year 2024 production is expected to be 95,000 - 103,000
ounces of gold and 5.9 - 6.7 million ounces of silver
- CAS1 in 2024 are expected to be $950 - $1,150 per gold ounce
and $15.50 - $16.50 per silver ounce
- Capital expenditures are expected to be $27 - $37 million,
consisting primarily of sustaining capital and underground
development
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Ore tons placed
7,064,623
5,102,800
3,135,571
2,754,058
3,487,173
Average silver grade (oz/t)
0.57
0.59
0.52
0.44
0.50
Average gold grade (oz/t)
0.002
0.002
0.002
0.003
0.003
Silver ounces produced (000’s)
1,155
973
699
1,340
608
Gold ounces produced
9,690
8,006
5,755
19,847
4,459
Silver ounces sold (000’s)
1,098
985
735
1,269
606
Gold ounces sold
9,186
8,150
6,185
19,175
4,432
Average realized price per silver
ounce
$
30.13
$
25.78
$
23.32
$
24.59
$
24.63
Average realized price per gold
ounce
$
2,492
$
2,131
$
2,050
$
1,991
$
1,967
Metal sales
$
56.0
$
42.8
$
29.8
$
69.4
$
23.6
Costs applicable to sales3
$
39.4
$
36.7
$
27.0
$
71.8
$
30.5
Adjusted CAS per AgOz1
$
20.88
$
21.58
$
18.17
$
19.33
$
23.64
Adjusted CAS per AuOz1
$
1,735
$
1,813
$
1,630
$
1,564
$
1,899
Prepayment, working capital cash
flow
$
—
$
—
$
—
$
—
$
7.5
Exploration expense
$
1.0
$
1.0
$
0.4
$
0.2
$
0.3
Cash flow from operating
activities
$
3.2
$
(5.9
)
$
(18.7
)
$
11.6
$
(17.3
)
Sustaining capital expenditures
(excludes capital lease payments)
$
7.0
$
9.9
$
15.3
$
13.8
$
7.7
Development capital
expenditures
$
3.1
$
17.6
$
5.9
$
51.7
$
76.7
Total capital expenditures
$
10.1
$
27.5
$
21.2
$
65.5
$
84.4
Free cash flow1
$
(6.9
)
$
(33.4
)
$
(39.9
)
$
(53.9
)
$
(101.7
)
Operational
- Silver and gold production in the third quarter totaled 1.2
million and 9,690 ounces, respectively, compared to 973,057 and
8,006 ounces in the prior period and 607,735 and 4,459 ounces in
the third quarter of 2023
- Ore tons placed increased 38% quarter-over-quarter to 7.1
million tons, including approximately 6.4 million tons through the
new crushing circuit and roughly 650,000 tons of high-grade
backfill direct-to-pad material placed on the stage six leach pad.
The Company expects to place approximately 7.0 - 8.0 million tons
on the stage six leach pad in the fourth quarter
Financial
- Third quarter adjusted CAS1 for silver and gold on a co-product
basis totaled $20.88 and $1,735 per ounce, respectively, mainly
driven by higher metals sales
- Capital expenditures decreased 63% quarter-over-quarter to $10
million, reflecting lower spend after an earlier-than-expected
conclusion of final negotiations with a key construction contractor
and corresponding earlier payment of costs in the previous
quarter
- Free cash flow1 in the third quarter totaled $(7) million
compared to $(33) million in the prior period
Exploration
- Exploration investment in the third quarter totaled
approximately $3 million ($1 million expensed and $2 million
capitalized) compared to roughly $2 million ($1 million expensed
and $1 million capitalized) in the prior quarter
- Near-term exploration objectives at Rochester aim to augment
the grade profile of the current 16-year reserve-only mine life
with the goal of enhancing cash flow
- Two diamond drill rigs were active at East Rochester during the
quarter targeting the Wedge and Black Ridge Fault areas located
immediately east of the Rochester pit. The holes are testing for
extensions to mineralization and for higher grades located along
structures
- Other activities during the quarter included re-logging,
reinterpreting and geological modeling of core and reverse
circulation chips from legacy drillholes, with new geology models
for Nevada Packard and Lincoln Hill underway. Additionally, a
geophysical magnetics survey was flown over the land package to aid
district exploration
- Drilling at Nevada Packard is planned for the fourth quarter to
confirm the new model and establish controls on higher-grade
mineralization that is expected to guide further exploration
Guidance
- Full-year 2024 production is expected to be 4.8 - 6.6 million
ounces of silver and 37,000 - 50,000 ounces of gold
- CAS1 for the second half of 2024 are expected to be $18.00 -
$20.00 per silver ounce and $1,500 - $1,700 per gold ounce
- Capital expenditures are expected to be $61 - $79 million,
which reflects the ramp-up of the completed Rochester expansion as
well as sustaining capital and an earlier-than-expected conclusion
to certain final negotiations and payments related to the Rochester
expansion that were originally estimated to take place in 2025
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Tons milled
165,916
182,043
167,439
177,382
167,950
Average gold grade (oz/t)
0.16
0.14
0.14
0.16
0.16
Average recovery rate
90.4
%
92.3
%
90.8
%
92.3
%
92.6
%
Gold ounces produced
24,104
23,202
21,434
26,686
24,614
Gold ounces sold
24,800
23,539
21,183
25,980
24,516
Average realized price per gold ounce,
gross
$
2,563
$
2,223
$
2,105
$
2,016
$
1,956
Treatment and refining charges per gold
ounce
$
56
$
52
$
52
$
58
$
60
Average realized price per gold ounce,
net
$
2,507
$
2,171
$
2,053
$
1,958
$
1,896
Metal sales
$
62.2
$
51.1
$
43.5
$
51.2
$
46.5
Costs applicable to sales3
$
38.1
$
40.7
$
39.3
$
37.9
$
38.3
Adjusted CAS per AuOz1
$
1,539
$
1,734
$
1,840
$
1,441
$
1,543
Prepayment, working capital cash
flow
$
11.8
$
(11.8
)
$
—
$
10.7
$
(10.7
)
Exploration expense
$
2.0
$
1.3
$
1.5
$
1.7
$
2.9
Cash flow from operating
activities
$
38.1
$
(7.2
)
$
1.5
$
16.9
$
(4.4
)
Sustaining capital expenditures
(excludes capital lease payments)
$
20.0
$
16.5
$
13.3
$
15.1
$
15.8
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
20.0
$
16.5
$
13.3
$
15.1
$
15.8
Free cash flow1
$
18.1
$
(23.7
)
$
(11.8
)
$
1.8
$
(20.2
)
Operational
- Gold production in the third quarter totaled 24,104 ounces
compared to 23,202 ounces in the prior period and 24,614 ounces in
the third quarter of 2023
- Higher production during the quarter was driven by higher
average gold grade, partially offset by lower tons milled and
average recoveries
Financial
- Third quarter adjusted CAS1 totaled $1,539 per ounce compared
to $1,734 per ounce in the prior period, reflecting increased metal
sales
- Capital expenditures increased 21% quarter-over-quarter to $20
million. Capital expenditures during the quarter continued to focus
on capital development to support the ongoing multi-year
development and exploration program aimed at extending mine
life
- Free cash flow1 in the third quarter totaled $18 million
compared to $(24) million in the prior period
Exploration
- Exploration investment in the quarter totaled approximately $5
million ($2 million expensed and $3 million capitalized), compared
to $6 million ($1 million expensed and $4 million capitalized) in
the prior period
- Up to three rigs were active at Kensington, with drilling
focused on both infill and extension of the current resource
boundaries, with some drilling on scout targets in Lower Kensington
east of current deposits. Additionally, an airborne geophysical
survey was flown during the quarter
- Geological modelling and interpretation of Lower Kensington,
Upper Kensington and Elmira continued during the quarter to better
understand the spectrum of vein types throughout the zones to
improve modeling and mining
- At Elmira Main and Elmira South, expansion and infill drilling
activities continued. The first detailed structural model has been
completed and is being incorporated into exploration targeting and
resource modeling
- Overall drilling at Kensington continues to demonstrate
meaningful progress toward building a reserve base to support mine
life for at least the next five years
Guidance
- Full-year 2024 production is expected to be 92,000 - 106,000
gold ounces
- CAS1 in 2024 are expected to be $1,525 - $1,725 per gold
ounce
- Capital expenditures are expected to be $63 - $68 million, of
which approximately $33 - $39 million and $6 - $13 million is
related to accelerated rates of underground development and infill
drilling, respectively, as part of the Company’s multi-year
exploration program
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
3Q24
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Ore tons placed
1,424,649
1,162,437
1,251,955
1,290,562
1,254,267
Average gold grade (oz/t)
0.046
0.032
0.021
0.027
0.023
Gold ounces produced
33,650
22,021
20,395
29,675
22,674
Silver ounces produced (000’s)
42
69
67
90
69
Gold ounces sold
34,272
20,930
20,586
29,537
23,049
Silver ounces sold (000’s)
45
65
69
86
74
Average realized price per gold
ounce
$
2,440
$
2,064
$
2,026
$
1,982
$
1,966
Metal sales
$
85.0
$
45.0
$
43.3
$
60.7
$
47.1
Costs applicable to sales3
$
31.8
$
19.1
$
25.4
$
32.4
$
31.0
Adjusted CAS per AuOz1
$
885
$
822
$
1,165
$
997
$
1,267
Prepayment, working capital cash
flow
$
—
$
—
$
—
$
—
$
2.5
Exploration expense
$
2.3
$
1.1
$
0.1
$
—
$
—
Cash flow from operating
activities
$
51.6
$
17.0
$
11.1
$
28.9
$
19.5
Sustaining capital expenditures
(excludes capital lease payments)
$
2.8
$
1.2
$
0.3
$
1.3
$
0.6
Development capital
expenditures
$
—
$
—
$
—
$
0.2
$
0.1
Total capital expenditures
$
2.8
$
1.2
$
0.3
$
1.5
$
0.7
Free cash flow1
$
48.8
$
15.8
$
10.8
$
27.4
$
18.8
Operational
- Gold production in the third quarter increased 53%
quarter-over-quarter to 33,650 ounces, largely due to timing of
ounces placed on the leach pads and higher average gold grade due
to positive reconciliation of the tons placed. Year-over-year
production for the quarter increased 48%
Financial
- Adjusted CAS1 on a by-product basis increased 8%
quarter-over-quarter to $885 per ounce, largely driven by
decreasing favorable recoveries on legacy pads from the prior
period
- Capital expenditures increased slightly quarter-over-quarter to
approximately $3 million
- Free cash flow1 in the third quarter totaled an all-time high
$49 million compared to $16 million in the prior period, reflecting
higher gold sales
Exploration
- Exploration investment during the quarter totaled $2 million
(substantially all expensed) compared to $1 million (substantially
all expensed) in the prior quarter
- Increased exploration investment during the quarter was mainly
driven by an expanded program that commenced after opportunities
were recognized to meaningfully extend the mine life at Wharf
- Two rigs were active during the quarter at the Juno and North
Foley deposits undertaking infill and expansion drilling
Guidance
- Full-year 2024 production is expected to be 86,000 - 96,000
gold ounces
- CAS1 in 2024 are expected to be $950 - $1,050 per gold
ounce
- Capital expenditures are expected to be $5 - $7 million
Exploration
The Company’s exploration investment in 2024 is expected to
total $40 - $50 million for expansion drilling (classified as
exploration expense) and $15 - $20 million for infill drilling
(capitalized exploration).
Top exploration priorities for the Company’s 2024 exploration
program include: (1) building reserves and extending mine life at
Kensington to over five years by year-end; (2) pursuing higher
grade structures at Rochester to enhance the near-term margin and
cash flow profile of the newly-expanded operation; (3) building out
a robust pipeline of inferred resources at Palmarejo to potentially
drive future reserve growth; (4) further extending Wharf’s
reserve-based mine life; and (5) expanding and enhancing the
understanding of the evolving world-class polymetallic Silvertip
system located in British Columbia.
During the third quarter, Coeur invested approximately $25
million ($20 million expensed and $5 million capitalized), compared
to roughly $18 million ($13 million expensed and $5 million
capitalized) in the prior period.
At Silvertip, exploration investment totaled approximately $9
million in the third quarter, compared to $6 million in the prior
period. The Company expects to invest $11 - $14 million in
exploration at Silvertip in 2024, which excludes $15 - $20 million
related to underground mine development and site support costs.
The objectives of the 2024 exploration program at Silvertip are
to: (1) grow the known mineralized structures such as the Southern
Silver zone from underground drilling focusing on along-strike and
down-dip potential that has been identified; (2) drill much larger
step-outs on major structures using surface drilling with a key
focus on the Southern Silver, Saddle and Camp Creek zones; and (3)
carry out district-scale field work to identify Silvertip
lookalikes and other large structures with potential to host large
ore bodies and to identify the outer limits of this large
system.
This three-pronged approach is progressing well with surface
mapping and sampling completed during the quarter, surface drilling
with two rigs were completed at the end of October and one
underground drill rig continuing in November.
2024 Guidance
Production during the third quarter was in-line with Coeur’s
expectations, leading the Company to reaffirm 2024 production and
cost guidance.
The below exploration expense guidance excludes $15 - $20
million of underground mine development and support costs
associated with Silvertip.
2024 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
95,000 - 103,000
5,900 - 6,700
Rochester
37,000 - 50,000
4,800 - 6,600
Kensington
92,000 - 106,000
—
Wharf
86,000 - 96,000
—
Total
310,000 - 355,000
10,700 - 13,300
2024 Costs Applicable to Sales Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$950 - $1,150
$15.50 - $16.50
Second Half 2024 Rochester
(co-product)
$1,500 - $1,700
$18.00 - $20.00
Kensington
$1,525 - $1,725
—
Wharf (by-product)
$950 - $1,050
—
2024 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures,
Sustaining
$124 - $158
Capital Expenditures,
Development
$36 - $42
Exploration, Expensed
$40 - $50
Exploration, Capitalized
$15 - $20
General & Administrative
Expenses
$36 - $40
Note: The Company’s guidance figures assume estimated prices of
$2,300/oz gold and $27.00/oz silver as well as CAD of 1.25 and MXN
of 17.00. Guidance figures exclude the impact of any metal sales or
foreign exchange hedges.
Financial Results and Conference Call
Coeur will host a conference call to discuss its third quarter
2024 financial results on November 7, 2024 at 11:00 a.m. Eastern
Time.
Dial-In Numbers:
(855) 560-2581 (U.S.)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID:
Coeur Mining
Hosting the call will be Mitchell J. Krebs, Chairman, President
and Chief Executive Officer of Coeur, who will be joined by Thomas
S. Whelan, Senior Vice President and Chief Financial Officer,
Michael “Mick” Routledge, Senior Vice President and Chief Operating
Officer, Aoife McGrath, Senior Vice President of Exploration, and
other members of management. A replay of the call will be available
through November 14, 2024.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
829 28 77
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 polymetallic critical minerals exploration project in
British Columbia.
Cautionary Statements
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding cash flow, production growth, costs,
capital expenditures, exploration and development efforts and plans
and potential impacts on reserves and resources, mine lives and
expected extensions, the gold stream agreement at Palmarejo,
anticipated production, costs and expenses and operations at
Palmarejo, Rochester, Wharf and Kensington, and expectations
regarding the planned acquisition of SilverCrest, including
expected impacts on production cash flow, financial condition and
timing of closing, if at all. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause Coeur’s actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the risk that the
Rochester expansion does not sustain planned performance, the risk
that anticipated production, cost and expense levels are not
attained, the risks and hazards inherent in the mining business
(including risks inherent in developing and expanding large-scale
mining projects, environmental hazards, industrial accidents,
weather or geologically-related conditions), changes in the market
prices of gold and silver and a sustained lower price or higher
treatment and refining charge environment, the uncertainties
inherent in Coeur’s production, exploration and development
activities, including risks relating to permitting and regulatory
delays (including the impact of government shutdowns) and mining
law changes, ground conditions, grade and recovery variability, any
future labor disputes or work stoppages (involving the Company and
its subsidiaries or third parties), the risk of adverse outcomes in
litigation, the uncertainties inherent in the estimation of mineral
reserves and resources, impacts from Coeur’s future acquisition of
new mining properties or businesses including the pending
acquisition of SilverCrest, the risk that the acquisition of
SilverCrest may be delayed or not occur at all, the loss of access
or insolvency of any third-party refiner or smelter to whom Coeur
markets its production, materials and equipment availability,
inflationary pressures, continued access to financing sources, the
effects of environmental and other governmental regulations and
government shut-downs, the risks inherent in the ownership or
operation of or investment in mining properties or businesses in
foreign countries, Coeur’s ability to raise additional financing
necessary to conduct its business, make payments or refinance its
debt, as well as other uncertainties and risk factors set out in
filings made from time to time with the United States Securities
and Exchange Commission, and the Canadian securities regulators,
including, without limitation, Coeur’s most recent reports on Form
10-K and Form 10-Q. Actual results, developments and timetables
could vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements.
Coeur disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of Coeur, its financial or operating
results or its securities. This does not constitute an offer of any
securities for sale.
The scientific and technical information concerning our mineral
projects in this news release have been reviewed and approved by a
“qualified person” under Item 1300 of SEC Regulation S-K, namely
our Senior Director, Technical Services, Christopher Pascoe. For a
description of the key assumptions, parameters and methods used to
estimate mineral reserves and mineral resources, as well as data
verification procedures and a general discussion of the extent to
which the estimates may be affected by any known environmental,
permitting, legal, title, taxation, sociopolitical, marketing or
other relevant factors, please review the Technical Report
Summaries for each of the Company’s material properties which are
available at www.sec.gov.
No Offer or Solicitation
Communications in the news release do not constitute an offer to
sell or the solicitation of an offer to subscribe for or buy any
securities or a solicitation of any vote or approval with respect
to the proposed Transaction or otherwise, nor shall there be any
sale, issuance or transfer of securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
Important Additional Information
In connection with the Transaction, Coeur and SilverCrest intend
to file materials with the Securities and Exchange Commission (the
“SEC”) and on SEDAR+, as applicable. Coeur intends to file a
definitive proxy statement on Schedule 14A (the “Proxy Statement”)
with the SEC in connection with the solicitation of proxies to
obtain Coeur stockholder approval of (A) the issuance of shares of
common stock of Coeur in connection with the Transaction (the
“Stock Issuance”) and (B) the amendment of the Coeur certificate of
incorporation to increase the number of authorized shares of Coeur
common stock (the “Charter Amendment”), and SilverCrest intends to
file a notice of the SilverCrest shareholder meeting and
accompanying management information circular (the “Circular”) with
the Toronto Stock Exchange and on SEDAR+ and with the SEC in
connection with the solicitation of proxies to obtain SilverCrest
shareholder approval of the Transaction. After the Proxy Statement
is cleared by the SEC, Coeur intends to mail a definitive Proxy
Statement to the stockholders of Coeur. This communication is not a
substitute for the Proxy Statement, the Circular or for any other
document that Coeur or SilverCrest may file with the SEC or on
SEDAR+ and/or send to Coeur stockholders and/or SilverCrest’s
shareholders in connection with the Transaction. INVESTORS AND
SECURITY HOLDERS OF COEUR AND SILVERCREST ARE URGED TO CAREFULLY
AND THOROUGHLY READ THE PROXY STATEMENT AND THE CIRCULAR,
RESPECTIVELY, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO
TIME, AND OTHER RELEVANT DOCUMENTS FILED BY COEUR AND/OR
SILVERCREST WITH THE SEC OR ON SEDAR+, WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT COEUR,
SILVERCREST, THE TRANSACTION, THE RISKS RELATED THERETO AND RELATED
MATTERS.
Stockholders of Coeur and shareholders of SilverCrest will be
able to obtain free copies of the Proxy Statement and the Circular,
as each may be amended from time to time, and other relevant
documents filed by Coeur and/or SilverCrest with the SEC or on
SEDAR+ (when they become available) through the website maintained
by the SEC at www.sec.gov or on SEDAR+ at www.sedarplus.ca, as
applicable. Copies of documents filed with the SEC by Coeur will be
available free of charge from Coeur’s website at www.coeur.com
under the “Investors” tab or by contacting Coeur’s Investor
Relations Department at (312) 489-5800 or investors@coeur.com.
Copies of documents filed with the SEC or on SEDAR+ by SilverCrest
will be available free of charge from SilverCrest’s website at
www.silvercrestmetals.com under the “Investors” tab or by
contacting SilverCrest’s Investor Relations Department at
(604)694-1730 ext. 104.
Participation in the Solicitation
Coeur, SilverCrest and their respective directors and certain of
their executive officers and other members of management and
employees may be deemed, under SEC rules, to be participants in the
solicitation of proxies from Coeur’s stockholders and SilverCrest’s
shareholders in connection with the Transaction. Information
regarding the executive officers and directors of Coeur is included
in its definitive proxy statement for its 2024 annual meeting under
the headings “Proposal No. 1 – Election of Directors”, “Information
about our Executive Officers”, “Compensation Discussion and
Analysis”, and “Director Compensation”, which was filed with the
SEC on April 4, 2024 and is available at
https://www.sec.gov/ix?doc=/Archives/edgar/data/215466/000114036124017966/ny20018623x1_def14a.htm.
Information regarding the directors and certain executive officers
of SilverCrest is included in its information circular and proxy
statement for its 2024 annual meeting under the headings
“Compensation of Executive Officers and Directors” and
“Compensation Discussion and Analysis”, which was filed on SEDAR+
on April 18, 2024 and is available at
https://www.silvercrestmetals.com/_resources/agm/2024-Information-Circular.pdf?v=093009.
Additional information regarding the persons who may be deemed
participants and their direct and indirect interests, by security
holdings or otherwise, will be set forth in the Proxy Statement,
the Circular and other materials when they are filed with the SEC
or on SEDAR+ in connection with the Transaction. Free copies of
these documents may be obtained as described in the paragraphs
above.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information
determined under United States generally accepted accounting
principles (U.S. GAAP) with certain non-U.S. GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted EBITDA
margin, free cash flow, adjusted net income (loss), operating cash
flow before changes in working capital and adjusted costs
applicable to sales per ounce (gold and silver) or pound (zinc or
lead). We believe that these adjusted measures provide meaningful
information to assist management, investors and analysts in
understanding our financial results and assessing our prospects for
future performance. We believe these adjusted financial measures
are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We believe EBITDA,
adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted
net income (loss) and adjusted costs applicable to sales per ounce
(gold and silver) and pound (zinc and lead) are important measures
in assessing the Company’s overall financial performance. For
additional explanation regarding our use of non-U.S. GAAP financial
measures, please refer to our Form 10-K for the year ended December
31, 2023.
Notes
- EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash
flow, adjusted net income (loss), operating cash flow before
changes in working capital and adjusted costs applicable to sales
per ounce (gold and silver) are non-GAAP measures. Please see
tables in the Appendix for the reconciliation to U.S. GAAP. Free
cash flow is defined as cash flow from operating activities less
capital expenditures. Liquidity is defined as cash and cash
equivalents plus availability under the Company’s RCF. Future
borrowing under the RCF may be subject to certain financial
covenants. Please see tables in Appendix for the calculation of
consolidated free cash flow and liquidity.
- As of September 30, 2024, Coeur had $30 million in outstanding
letters of credit and $225 million in outstanding borrowings under
its RCF. Future borrowing under the RCF may be subject to certain
financial covenants.
- Excludes amortization.
- Includes capital leases. Net of debt issuance costs and premium
received.
Average Spot Prices
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Average Gold Spot Price Per Ounce
$
2,474
$
2,338
$
2,070
$
1,971
$
1,928
Average Silver Spot Price Per Ounce
$
29.43
$
28.45
$
23.34
$
23.20
$
23.57
Average Zinc Spot Price Per Pound
$
1.26
$
1.29
$
1.11
$
1.13
$
1.10
Average Lead Spot Price Per Pound
$
0.92
$
0.98
$
0.94
$
0.96
$
0.98
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
September 30, 2024
December 31, 2023
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
76,916
$
61,633
Receivables
30,165
31,035
Inventory
74,727
76,661
Ore on leach pads
148,331
79,400
Prepaid expenses and other
15,833
18,526
345,972
267,255
NON-CURRENT ASSETS
Property, plant and equipment and mining
properties, net
1,759,454
1,688,288
Ore on leach pads
34,598
25,987
Restricted assets
9,339
9,115
Receivables
20,161
23,140
Other
58,276
67,063
TOTAL ASSETS
$
2,227,800
$
2,080,848
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
126,387
$
115,110
Accrued liabilities and other
153,285
140,913
Debt
27,458
22,636
Reclamation
10,954
10,954
318,084
289,613
NON-CURRENT LIABILITIES
Debt
577,725
522,674
Reclamation
211,136
203,059
Deferred tax liabilities
6,755
12,360
Other long-term liabilities
30,950
29,239
826,566
767,332
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 600,000,000 shares, 399,287,506 issued and outstanding
at September 30, 2024 and 386,282,957 at December 31, 2023
3,993
3,863
Additional paid-in capital
4,179,270
4,139,870
Accumulated other comprehensive income
(loss)
—
1,331
Accumulated deficit
(3,100,113
)
(3,121,161
)
1,083,150
1,023,903
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
2,227,800
$
2,080,848
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
In thousands, except share
data
Revenue
$
313,476
$
194,583
$
748,562
$
559,116
COSTS AND EXPENSES
Costs applicable to sales(1)
156,742
147,903
447,456
440,596
Amortization
33,216
22,884
88,441
65,187
General and administrative
10,966
9,512
36,611
31,384
Exploration
19,567
12,437
42,932
20,007
Pre-development, reclamation, and
other
8,583
8,699
35,401
29,949
Total costs and expenses
229,074
201,435
650,841
587,123
OTHER INCOME (EXPENSE), NET
Gain on debt extinguishment
—
774
417
3,735
Fair value adjustments, net
—
(2,010
)
—
4,629
Interest expense, net of capitalized
interest
(13,280
)
(7,402
)
(39,389
)
(21,703
)
Other, net
3,434
478
11,329
(10,090
)
Total other income (expense), net
(9,846
)
(8,160
)
(27,643
)
(23,429
)
Income (loss) before income and mining
taxes
74,556
(15,012
)
70,078
(51,436
)
Income and mining tax (expense)
benefit
(25,817
)
(6,097
)
(49,030
)
(26,671
)
NET INCOME (LOSS)
$
48,739
$
(21,109
)
$
21,048
$
(78,107
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges
—
7,227
(18,507
)
7,141
Reclassification adjustments for realized
(gain) loss on cash flow hedges
—
(4,920
)
17,176
(7,830
)
Other comprehensive income (loss)
—
2,307
(1,331
)
(689
)
COMPREHENSIVE INCOME (LOSS)
$
48,739
$
(18,802
)
$
19,717
$
(78,796
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
0.12
$
(0.06
)
$
0.05
$
(0.24
)
Diluted
$
0.12
$
(0.06
)
$
0.05
$
(0.24
)
(1) Excludes amortization.
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
48,739
$
(21,109
)
$
21,048
$
(78,107
)
Adjustments:
Amortization
33,216
22,884
88,441
65,187
Accretion
4,233
4,153
12,463
12,219
Deferred taxes
(816
)
(3,872
)
(5,604
)
1,536
Gain on debt extinguishment
—
(774
)
(417
)
(3,735
)
Fair value adjustments, net
—
2,010
—
(4,629
)
Stock-based compensation
2,809
2,635
9,789
8,462
Loss on the sale of assets
—
19
—
12,650
Write-downs
—
7,727
3,235
22,467
Deferred revenue recognition
(130
)
(143
)
(55,407
)
(25,358
)
Other
(1,119
)
657
10,259
2,798
Changes in operating assets and
liabilities:
Receivables
1,616
(478
)
(520
)
1,659
Prepaid expenses and other current
assets
(352
)
(3,000
)
3,185
764
Inventory and ore on leach pads
(14,320
)
(18,620
)
(53,788
)
(54,993
)
Accounts payable and accrued
liabilities
37,187
5,528
77,757
41,091
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
111,063
(2,383
)
110,441
2,011
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(41,980
)
(112,273
)
(135,468
)
(271,902
)
Acquisitions, net
(10,000
)
—
(10,000
)
—
Proceeds from the sale of assets
1
152
25
8,380
Sale of investments
—
—
—
41,558
Proceeds from notes receivable
—
—
—
5,000
Other
(70
)
(63
)
(285
)
(171
)
CASH USED IN INVESTING ACTIVITIES
(52,049
)
(112,184
)
(145,728
)
(217,135
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
—
57,522
22,823
168,964
Issuance of notes and bank borrowings, net
of issuance costs
77,500
163,000
327,500
388,000
Payments on debt, finance leases, and
associated costs
(133,250
)
(109,268
)
(297,128
)
(348,092
)
Other
(208
)
(23
)
(2,018
)
(2,345
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
(55,958
)
111,231
51,177
206,527
Effect of exchange rate changes on cash
and cash equivalents
(263
)
(278
)
(584
)
374
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
2,793
(3,614
)
15,306
(8,223
)
Cash, cash equivalents and restricted cash
at beginning of period
75,891
58,560
63,378
63,169
Cash, cash equivalents and restricted cash
at end of period
$
78,684
$
54,946
$
78,684
$
54,946
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
LTM 3Q 2024
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Net income (loss)
$
(4,457
)
$
48,739
$
1,426
$
(29,117
)
$
(25,505
)
$
(21,109
)
Interest expense, net of capitalized
interest
46,785
13,280
13,162
12,947
7,396
7,402
Income tax provision (benefit)
57,515
25,817
7,189
16,024
8,485
6,097
Amortization
123,076
33,216
27,928
27,297
34,635
22,884
EBITDA
222,919
121,052
49,705
27,151
25,011
15,274
Fair value adjustments, net
1,245
—
—
—
1,245
2,010
Foreign exchange (gain) loss
(3,079
)
(1,708
)
(2,089
)
365
353
(421
)
Asset retirement obligation accretion
16,649
4,233
4,154
4,076
4,186
4,153
Inventory adjustments and write-downs
24,954
1,231
1,071
4,188
18,464
8,934
(Gain) loss on sale of assets and
securities
16,899
176
640
3,536
12,547
19
RMC bankruptcy distribution
(1,199
)
—
(1,199
)
—
—
—
(Gain) loss on debt extinguishment
(119
)
—
21
(438
)
298
(774
)
Transaction costs
976
976
—
—
—
—
Other adjustments
7,834
81
104
5,461
2,188
1,453
Adjusted EBITDA
$
287,079
$
126,041
$
52,407
$
44,339
$
64,292
$
30,648
Revenue
$
1,010,652
$
313,476
$
222,026
$
213,060
$
262,090
$
194,583
Adjusted EBITDA Margin
28
%
40
%
24
%
21
%
25
%
16
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Net income (loss)
$
48,739
$
1,426
$
(29,117
)
$
(25,505
)
$
(21,109
)
Fair value adjustments, net
—
—
—
1,245
2,010
Foreign exchange loss (gain)
(2,247
)
(2,950
)
484
(156
)
5
(Gain) loss on sale of assets and
securities
176
640
3,536
12,547
19
RMC bankruptcy distribution
—
(1,199
)
—
—
—
(Gain) loss on debt extinguishment
—
21
(438
)
298
(774
)
Transaction costs
976
—
—
—
—
Other adjustments
81
104
5,461
2,188
1,453
Tax effect of adjustments
(568
)
(1,447
)
1,053
3,165
(223
)
Adjusted net income (loss)
$
47,157
$
(3,405
)
$
(19,021
)
$
(6,218
)
$
(18,619
)
Adjusted net income (loss) per share -
Basic
$
0.12
$
(0.01
)
$
(0.05
)
$
(0.02
)
$
(0.05
)
Adjusted net income (loss) per share -
Diluted
$
0.12
$
(0.01
)
$
(0.05
)
$
(0.02
)
$
(0.05
)
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Cash flow from operations
$
111,063
$
15,249
$
(15,871
)
$
65,277
$
(2,383
)
Capital expenditures
41,980
51,405
42,083
92,715
112,273
Free cash flow
$
69,083
$
(36,156
)
$
(57,954
)
$
(27,438
)
$
(114,656
)
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Cash provided by (used in) operating
activities
$
111,063
$
15,249
$
(15,871
)
$
65,277
$
(2,383
)
Changes in operating assets and
liabilities:
Receivables
(1,616
)
(3,180
)
5,316
726
478
Prepaid expenses and other
352
(4,176
)
639
1,225
3,000
Inventories
14,320
19,774
19,694
(7,401
)
18,620
Accounts payable and accrued
liabilities
(37,187
)
(185
)
(40,385
)
(14,490
)
(5,528
)
Operating cash flow before changes in
working capital
$
86,932
$
27,482
$
(30,607
)
$
45,337
$
14,187
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2024
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
59,439
$
49,640
$
45,711
$
34,198
$
794
$
189,782
Amortization
(11,984
)
(10,231
)
(7,612
)
(2,419
)
(794
)
(33,040
)
Costs applicable to sales
$
47,455
$
39,409
$
38,099
$
31,779
$
—
$
156,742
Inventory Adjustments
(572
)
(536
)
50
(119
)
—
(1,177
)
By-product credit
—
—
12
(1,332
)
—
(1,320
)
Adjusted costs applicable to
sales
$
46,883
$
38,873
$
38,161
$
30,328
$
—
$
154,245
Metal Sales
Gold ounces
28,655
9,186
24,800
34,272
—
96,913
Silver ounces
1,860,976
1,098,407
—
45,118
—
3,004,501
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
50
%
41
%
100
%
100
%
Silver
50
%
59
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
818
$
1,735
$
1,539
$
885
$
1,113
Silver ($/oz)
$
12.60
$
20.88
$
—
$
15.67
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2024
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
59,070
$
45,225
$
47,166
$
20,181
$
790
$
172,432
Amortization
(10,843
)
(8,570
)
(6,445
)
(1,067
)
(790
)
(27,715
)
Costs applicable to sales
$
48,227
$
36,655
$
40,721
$
19,114
$
—
$
144,717
Inventory Adjustments
(252
)
(617
)
55
(149
)
—
(963
)
By-product credit
—
—
50
(1,760
)
—
(1,710
)
Adjusted costs applicable to
sales
$
47,975
$
36,038
$
40,826
$
17,205
$
—
$
142,044
Metal Sales
Gold ounces
24,313
8,150
23,539
20,930
—
76,932
Silver ounces
1,542,395
985,269
65,063
—
2,592,727
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
51
%
41
%
100
%
100
%
Silver
49
%
59
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
1,006
$
1,813
$
1,734
$
822
$
1,264
Silver ($/oz)
$
15.24
$
21.58
$
—
$
17.71
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2024
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
66,896
$
33,632
$
44,885
$
26,808
$
852
$
173,073
Amortization
(12,602
)
(6,633
)
(5,596
)
(1,393
)
(852
)
(27,076
)
Costs applicable to sales
$
54,294
$
26,999
$
39,289
$
25,415
$
—
$
145,997
Inventory Adjustments
(468
)
(3,555
)
(283
)
198
—
(4,108
)
By-product credit
—
—
(34
)
(1,633
)
—
(1,667
)
Adjusted costs applicable to
sales
$
53,826
$
23,444
$
38,972
$
23,980
$
—
$
140,222
Metal Sales
Gold ounces
33,462
6,185
21,183
20,586
—
81,416
Silver ounces
1,796,468
735,254
68,713
—
2,600,435
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
56
%
43
%
100
%
100
%
Silver
44
%
57
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
901
$
1,630
$
1,840
$
1,165
$
1,267
Silver ($/oz)
$
13.18
$
18.17
$
—
$
14.63
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 31, 2023
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
60,345
$
85,155
$
46,207
$
34,150
$
858
$
226,715
Amortization
(9,949
)
(13,349
)
(8,366
)
(1,892
)
(858
)
(34,414
)
Costs applicable to sales
$
50,396
$
71,806
$
37,841
$
32,258
$
—
$
192,301
Inventory Adjustments
(195
)
(17,295
)
(131
)
(677
)
—
(18,298
)
By-product credit
—
—
(275
)
(2,146
)
—
(2,421
)
Adjusted costs applicable to
sales
$
50,201
$
54,511
$
37,435
$
29,435
$
—
$
171,582
Metal Sales
Gold ounces
24,849
19,174
25,980
29,538
—
99,541
Silver ounces
1,644,592
1,269,236
—
86,510
—
3,000,338
Zinc pounds
—
—
—
—
—
—
Lead pounds
—
—
—
—
—
—
Revenue Split
Gold
50
%
55
%
100
%
100
%
Silver
50
%
45
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
1,010
$
1,564
$
1,441
$
997
$
1,225
Silver ($/oz)
$
15.26
$
19.33
$
—
$
17.03
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2023
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
57,083
$
34,708
$
45,180
$
32,614
$
919
$
170,504
Amortization
(9,024
)
(4,176
)
(6,894
)
(1,588
)
(919
)
(22,601
)
Costs applicable to sales
$
48,059
$
30,532
$
38,286
$
31,026
$
—
$
147,903
Inventory Adjustments
(328
)
(7,788
)
(411
)
(16
)
—
(8,543
)
By-product credit
—
—
(57
)
(1,802
)
—
(1,859
)
Adjusted costs applicable to
sales
$
47,731
$
22,744
$
37,818
$
29,208
$
—
$
137,501
Metal Sales
Gold ounces
26,018
4,432
24,516
23,049
—
78,015
Silver ounces
1,533,975
606,083
—
73,677
—
2,213,735
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
50
%
37
%
100
%
100
%
Silver
50
%
63
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
917
$
1,899
$
1,543
$
1,267
$
1,273
Silver ($/oz)
$
15.56
$
23.64
$
—
$
17.85
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales for Updated 2024 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester(1)
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
261,913
$
147,456
$
195,337
$
102,091
Amortization
(46,953
)
(42,237
)
(28,757
)
(5,694
)
Costs applicable to sales
$
214,960
$
105,219
$
166,580
$
96,397
By-product credit
—
—
16
(5,328
)
Adjusted costs applicable to
sales
$
214,960
$
105,219
$
166,596
$
91,069
Metal Sales
Gold ounces
104,260
28,170
100,500
91,040
Silver ounces
6,652,590
3,197,910
205,600
Revenue Split
Gold
51
%
43
%
100
%
100
%
Silver
49
%
57
%
Adjusted costs applicable to
sales
Gold ($/oz)
$950 - $1,150
$1,500 - $1,700
$1,525 - $1,725
$950 - $1,050
Silver ($/oz)
$15.50 - $16.50
$18.00 - $20.00
- Cost guidance for Rochester reflects the second half of
2024.
Reconciliation of Costs
Applicable to Sales for Previous 2024 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester(1)
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
258,870
$
129,322
$
199,980
$
108,330
Amortization
(37,130
)
(36,990
)
(33,530
)
(6,330
)
Costs applicable to sales
$
221,740
$
92,332
$
166,450
$
102,000
By-product credit
—
—
—
(2,550
)
Adjusted costs applicable to
sales
$
221,740
$
92,332
$
166,450
$
99,450
Metal Sales
Gold ounces
100,350
28,130
103,790
90,000
Silver ounces
6,516,830
3,927,890
105,920
Revenue Split
Gold
51
%
38
%
100
%
100
%
Silver
49
%
62
%
Adjusted costs applicable to
sales
Gold ($/oz)
Silver ($/oz)
- Cost guidance for Rochester reflects the second half of
2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106838688/en/
Coeur Mining, Inc. 200 S. Wacker Drive, Suite 2100 Chicago, IL
60606 Attention: Jeff Wilhoit, Senior Director, Investor Relations
Phone: (312) 489-5800 www.coeur.com
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