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Coeur Reports Second Quarter 2024 Results

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Coeur Mining (NYSE: CDE) reported its second quarter 2024 financial results, with revenue hitting $222 million and a GAAP net income of $1 million. Adjusted EBITDA was $52 million, while the net loss from continuing operations stood at $3 million.

Key Achievements: The Rochester ramp-up hit throughput rates of over 88,000 tons/day. Both gold and silver production at Rochester rose by 39% QoQ. Average realized gold and silver prices increased by 11% and 10% respectively year-over-year.

Development Highlights: Exploration at Kensington is ongoing, targeting a reserve-based mine life of five years by year-end. The company completed the acquisition of concessions near Palmarejo for $25 million, unlocking significant potential. The hedging program concluded, leaving Coeur fully exposed to commodity prices going forward.

Despite strong performance in several areas, the company remains focused on improving cost management and achieving positive free cash flow in the latter half of 2024.

Coeur Mining (NYSE: CDE) ha riportato i risultati finanziari del secondo trimestre del 2024, con ricavi che hanno raggiunto i 222 milioni di dollari e un utile netto GAAP di 1 milione di dollari. L'EBITDA rettificato è stato di 52 milioni di dollari, mentre la perdita netta dalle operazioni continuative è stata di 3 milioni di dollari.

Risultati Chiave: L'espansione di Rochester ha raggiunto tassi di lavorazione superiori a 88.000 tonnellate/giorno. Sia la produzione di oro che quella di argento a Rochester sono aumentate del 39% su base trimestrale. I prezzi medi realizzati per oro e argento sono aumentati rispettivamente dell'11% e del 10% su base annua.

Risultati dello Sviluppo: L'esplorazione a Kensington è in corso, mirando a una vita mineraria basata sulle riserve di cinque anni entro la fine dell'anno. L'azienda ha completato l'acquisizione di concessioni vicino a Palmarejo per 25 milioni di dollari, sbloccando un potenziale significativo. Il programma di copertura è terminato, lasciando Coeur completamente esposta ai prezzi delle materie prime in futuro.

Nonostante le forti performance in diverse aree, l'azienda rimane concentrata sul miglioramento della gestione dei costi e sul raggiungimento di un flusso di cassa libero positivo nella seconda metà del 2024.

Coeur Mining (NYSE: CDE) reportó sus resultados financieros del segundo trimestre de 2024, con ingresos alcanzando los 222 millones de dólares y una ganancia neta GAAP de 1 millón de dólares. El EBITDA ajustado fue de 52 millones de dólares, mientras que la pérdida neta de las operaciones continuas se situó en 3 millones de dólares.

Logros Clave: La fase de expansión de Rochester alcanzó tasas de procesamiento superiores a 88,000 toneladas/día. Tanto la producción de oro como la de plata en Rochester aumentaron en un 39% en comparación trimestral. Los precios promedios realizados de oro y plata aumentaron un 11% y un 10%, respectivamente, en comparación anual.

Aspectos Destacados del Desarrollo: La exploración en Kensington continúa, con el objetivo de una vida útil minera basada en reservas de cinco años para fin de año. La empresa completó la adquisición de concesiones cerca de Palmarejo por 25 millones de dólares, desbloqueando un potencial significativo. El programa de cobertura concluyó, dejando a Coeur completamente expuesta a los precios de las materias primas en el futuro.

A pesar del sólido desempeño en varias áreas, la empresa se mantiene enfocada en mejorar la gestión de costos y alcanzar un flujo de caja libre positivo en la segunda mitad de 2024.

Coeur Mining (NYSE: CDE)는 2024년 2분기 재무 결과를 발표했으며, 수익이 2억 2천2백만 달러에 도달하고 GAAP 순이익이 100만 달러라고 보고했습니다. 조정 EBITDA는 5천2백만 달러였고, 계속되는 운영에서의 순손실은 300만 달러에 달했습니다.

주요 성과: 로체스터의 생산이 하루 8만8천 톤 이상의 처리 속도에 도달했습니다. 로체스터의 금과 은 생산은 각각 39% 증가했습니다. 평균 금과 은 가격은 전년 대비 각각 11% 및 10% 증가했습니다.

개발 하이라이트: 켄싱턴의 탐사는 계속 진행 중이며, 연말까지 5년의 자원 기반 광산 생애를 목표로 하고 있습니다. 회사는 2천5백만 달러에 팔마레호 근처의 채굴권을 인수 완료하여 상당한 잠재력을 열었습니다. 헤지 프로그램이 종료되어 앞으로 원자재 가격에 완전히 노출된 상태입니다.

여러 분야에서 강력한 성과에도 불구하고 회사는 비용 관리 개선과 2024년 하반기에 긍정적인 자유 현금 흐름을 달성하는 데 집중하고 있습니다.

Coeur Mining (NYSE: CDE) a annoncé ses résultats financiers du deuxième trimestre 2024, avec un chiffre d'affaires atteignant 222 millions de dollars et un bénéfice net GAAP de 1 million de dollars. L'EBITDA ajusté a été de 52 millions de dollars, tandis que la perte nette des opérations continues s'élevait à 3 millions de dollars.

Réalisations clés : L'augmentation de la production à Rochester a atteint des taux de traitement de plus de 88 000 tonnes/jour. La production d'or et d'argent à Rochester a augmenté de 39% par rapport au trimestre précédent. Les prix moyens réalisés pour l'or et l'argent ont augmenté de 11% et 10% respectivement d'une année sur l'autre.

Points saillants du développement : L'exploration à Kensington se poursuit, visant une durée de vie de mine basée sur les réserves de cinq ans d'ici la fin de l'année. L'entreprise a achevé l'acquisition de concessions près de Palmarejo pour 25 millions de dollars, débloquant ainsi un potentiel significatif. Le programme de couverture a pris fin, laissant Coeur complètement exposé aux prix des matières premières à l'avenir.

Malgré une bonne performance dans plusieurs domaines, l'entreprise reste concentrée sur l'amélioration de la gestion des coûts et l'atteinte d'un flux de trésorerie positif au cours de la deuxième moitié de 2024.

Coeur Mining (NYSE: CDE) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, wobei der Umsatz 222 Millionen Dollar erreichte und ein GAAP-Nettogewinn von 1 Million Dollar erzielt wurde. Das bereinigte EBITDA betrug 52 Millionen Dollar, während der Nettogewinn aus fortführenden Betrieben bei 3 Millionen Dollar lag.

Wichtige Errungenschaften: Die Hochlaufphase in Rochester erreichte Durchsatzraten von über 88.000 Tonnen pro Tag. Sowohl die Produktion von Gold als auch Silber in Rochester stieg im Quartalsvergleich um 39%. Die durchschnittlichen realisierten Gold- und Silberpreise erhöhten sich im Vergleich zum Vorjahr um 11% bzw. 10%.

Entwicklungshighlights: Die Erschließung in Kensington läuft weiterhin, mit dem Ziel einer reservebasierten Lebensdauer der Mine von fünf Jahren bis Ende des Jahres. Das Unternehmen hat die Akquisition von Konzessionen in der Nähe von Palmarejo für 25 Millionen Dollar abgeschlossen, was erhebliches Potenzial entfaltet. Das Hedging-Programm wurde abgeschlossen, sodass Coeur zukünftig vollständig den Rohstoffpreisen ausgesetzt ist.

Trotz der starken Leistung in mehreren Bereichen bleibt das Unternehmen darauf fokussiert, das Kostenmanagement zu verbessern und in der zweiten Hälfte des Jahres 2024 einen positiven freien Cash Flow zu erzielen.

Positive
  • Revenue increased to $222 million, a 25% year-over-year growth.
  • Adjusted EBITDA jumped 136% year-over-year to $52 million.
  • Rochester's silver and gold production increased by 39% QoQ.
  • Average realized gold and silver prices rose by 11% and 10% respectively.
  • Kensington's exploration program is progressing well, targeting a five-year mine life.
  • Acquisition of key concessions near Palmarejo for $25 million opens growth potential.
Negative
  • Reported a net loss from continuing operations of $3 million.
  • Free cash flow remains negative at $(36) million.

Ramp-up of Rochester Operation Complete; Maintaining 2024 Production Guidance Ranges

CHICAGO--(BUSINESS WIRE)-- Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported second quarter 2024 financial results, including revenue of $222 million and cash flow from operating activities of $15 million. The Company reported GAAP net income from continuing operations of $1 million, or $0.00 per share. On an adjusted basis1, Coeur reported EBITDA of $52 million, cash flow from operating activities before changes in working capital of $28 million and net loss from continuing operations of $3 million, or $0.01 per share.

Key Highlights

  • Recently expanded Rochester achieves mid-year target run rates – Rochester successfully completed ramp-up activities by achieving throughput rates of over 88,000 tons per day. Annual throughput levels are expected to be approximately 2.5 times higher than historical levels, or roughly 32 million tons per year, leading to expected strong increases in production and free cash flow and substantially lower unit costs. Rochester’s second quarter silver and gold production both increased 39% compared to the first quarter
  • Higher prices drove strong revenue and adjusted EBITDA1 increases – The Company’s average realized gold and silver prices increased by approximately 11% and 10% year-over-year, respectively. Together with a 76% year-over-year increase in gold production at Kensington, second quarter revenue increased 25% and adjusted EBITDA1 jumped 136% year-over-year. Adjusted EBITDA1 over the last twelve months increased to $192 million, representing an 89% year-over-year increase
  • Continued positive results from Kensington’s multi-year exploration program – The Company’s June 27, 2024 update highlighted Kensington’s successful multi-year development and exploration program, which is expected to be completed in the first half of 2025 and is targeting a year-end reserves-based mine life of over five years at year-end 2024 and a return to positive free cash flow during the second half of next year
  • Closed the acquisition of key concessions near Palmarejo – On July 8, 2024, the purchase of two strategic blocks of mining concessions adjacent to the Palmarejo gold-silver complex was completed. The purchase from a subsidiary of Fresnillo plc (“Fresnillo”) unlocks significant near-term and longer-term potential to extend Palmarejo’s mine life to the east of the existing operation
  • Hedging program concluded - The Company’s gold and silver hedging program that was utilized during the construction and ramp-up of Rochester was completed during the second quarter; Coeur is fully exposed to commodity prices going forward
  • Silvertip summer exploration program now underway - The robust 2024 program includes large step-out drilling on known structures, significant mapping and sampling, and geophysics to rapidly explore a wider portion of the permitted ground. The program aims to grow near-mine resources through underground drilling, take large step-outs on known structures to assist with rapid resource growth, identify the outer edges of the system, and identify additional, nearby structures with potential to host mineralization similar to Silvertip
  • 2024 production guidance ranges maintained; cost guidance adjusted - The Company is maintaining its full-year production guidance ranges of 310,000 - 355,000 gold ounces and 10.7 - 13.3 million silver ounces. Full-year CAS1 guidance at Palmarejo and Wharf have been reduced to reflect strong cost management efforts, while Rochester’s second half CAS1 guidance ranges have been increased to reflect timing of ounces placed under leach. Additionally, the Company is increasing its full-year exploration guidance to reflect additional investment at Wharf and Kensington based on recent results, while capital expenditure guidance is being increased to reflect the accelerated timing of certain equipment purchases and final payments related to the Rochester expansion

“The entire portfolio is hitting on all cylinders as we approach the second half free cash flow inflection point following the successful mid-year ramp-up of Rochester,” said Mitchell J. Krebs, Chairman, President and Chief Executive Officer. “Improved operating performance at Kensington was especially noteworthy as operational improvements and capital investments over the last two-plus years begin to take hold. Our Palmarejo operation in Mexico has also taken a major step forward with two large, newly-acquired concession blocks that create a highly prospective and contiguous land package to the east of existing operations and outside the gold stream area of interest, which now becomes a key focus of exploration going forward.

“Rochester now stands on the threshold of a sustained period of strong free cash flow generation beginning in the second half of this year, while Kensington continues to move toward its own anticipated return to free cash flow generation in the second half of 2025. Coupled with the near-term growth opportunities at Palmarejo East and at our Wharf operation, along with the longer-term potential at Silvertip, Coeur’s portfolio is well-positioned for success. Planned debt reduction efforts are set to further enhance our unique positioning within our sector as a multi-asset portfolio concentrated in top-tier jurisdictions with unmatched leverage to silver and significant cash flow growth driven by elevated levels of investments over the past five years.”

Financial and Operating Highlights (Unaudited)

(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics)

 

2Q 2024

 

 

1Q 2024

 

 

4Q 2023

 

 

3Q 2023

 

 

2Q 2023

 

Gold Sales

$

154.1

 

$

151.8

 

$

187.7

 

$

139.5

 

$

121.4

 

Silver Sales

$

67.9

 

$

61.3

 

$

74.3

 

$

55.1

 

$

55.9

 

Consolidated Revenue

$

222.0

 

$

213.1

 

$

262.1

 

$

194.6

 

$

177.2

 

Costs Applicable to Sales2

$

144.7

 

$

146.0

 

$

192.3

 

$

147.9

 

$

139.6

 

General and Administrative Expenses

$

11.2

 

$

14.4

 

$

10.2

 

$

9.5

 

$

9.8

 

Net Income (Loss)

$

1.4

 

$

(29.1

)

$

(25.5

)

$

(21.1

)

$

(32.4

)

Net Income (Loss) Per Share

$

0.00

 

$

(0.08

)

$

(0.07

)

$

(0.06

)

$

(0.10

)

Adjusted Net Income (Loss)1

$

(3.4

)

$

(19.0

)

$

(6.2

)

$

(18.6

)

$

(20.2

)

Adjusted Net Income (Loss)1 Per Share

$

(0.01

)

$

(0.05

)

$

(0.02

)

$

(0.05

)

$

(0.06

)

Weighted Average Shares Outstanding

 

399.9

 

 

385.0

 

 

380.5

 

 

356.7

 

 

333.1

 

EBITDA1

$

49.7

 

$

27.2

 

$

25.0

 

$

15.3

 

$

4.0

 

Adjusted EBITDA1

$

52.4

 

$

44.3

 

$

64.3

 

$

30.6

 

$

22.2

 

Cash Flow from Operating Activities

$

15.2

 

$

(15.9

)

$

65.3

 

$

(2.4

)

$

39.4

 

Capital Expenditures

$

51.4

 

$

42.1

 

$

92.7

 

$

112.3

 

$

85.6

 

Free Cash Flow1

$

(36.2

)

$

(58.0

)

$

(27.4

)

$

(114.7

)

$

(46.2

)

Cash, Equivalents & Short-Term Investments

$

74.1

 

$

67.5

 

$

61.6

 

$

53.2

 

$

56.8

 

Total Debt3

$

629.3

 

$

585.6

 

$

545.3

 

$

512.2

 

$

469.4

 

Average Realized Price Per Ounce – Gold

$

2,003

 

$

1,864

 

$

1,886

 

$

1,788

 

$

1,809

 

Average Realized Price Per Ounce – Silver

$

26.20

 

$

23.57

 

$

24.79

 

$

24.88

 

$

23.91

 

Gold Ounces Produced

 

78,696

 

 

80,744

 

 

101,609

 

 

78,617

 

 

68,406

 

Silver Ounces Produced

 

2.6

 

 

2.6

 

 

3.1

 

 

2.3

 

 

2.4

 

Gold Ounces Sold

 

76,932

 

 

81,416

 

 

99,540

 

 

78,015

 

 

67,090

 

Silver Ounces Sold

 

2.6

 

 

2.6

 

 

3.0

 

 

2.2

 

 

2.3

 

Adjusted CAS per AuOz1

$

1,264

 

$

1,267

 

$

1,225

 

$

1,273

 

$

1,464

 

Adjusted CAS per AgOz1

$

17.71

 

$

14.63

 

$

17.03

 

$

17.85

 

$

16.77

 

Financial Results

Second quarter 2024 revenue totaled $222 million compared to $213 million in the prior period and $177 million in the second quarter of 2023. The Company produced 78,696 and 2.6 million ounces of gold and silver, respectively, during the quarter. Metal sales for the quarter totaled 76,932 ounces of gold and 2.6 million ounces of silver. Average realized gold and silver prices for the quarter were $2,003 and $26.20 per ounce, respectively, compared to $1,864 and $23.57 per ounce in the prior period and $1,809 and $23.91 per ounce in the second quarter of 2023.

Gold and silver sales represented 69% and 31% of quarterly revenue, respectively, compared to 71% and 29% in the prior period. The Company’s U.S. operations accounted for approximately 63% of second quarter revenue compared to 55% in the first quarter of 2024.

Costs applicable to sales2 decreased 1% quarter-over-quarter to $145 million, largely due to lower production in the period. General and administrative expenses decreased 22% quarter-over-quarter to $11 million largely driven by annual incentive payouts in the prior period.

Coeur invested approximately $18 million ($13 million expensed and $5 million capitalized) in exploration during the quarter, compared to roughly $14 million ($11 million expensed and $3 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 $7 million during the second quarter. Cash income and mining taxes paid during the period totaled approximately $4 million.

Quarterly operating cash flow totaled $15 million compared to $(16) million in the prior period, mainly driven by stronger operating performance at Rochester, Kensington and Wharf as well as favorable changes in working capital, reflecting the timing of tax payments in Mexico and semi-annual interest payments on the Company’s 2029 5.125% Senior Notes in the previous period.

Second quarter capital expenditures were $51 million compared to $42 million in the prior period, reflecting timing of payments related to the Rochester expansion as well as increased underground mine development at Kensington. Sustaining and development capital expenditures accounted for approximately $31 million and $20 million, or 60% and 40%, respectively, of Coeur’s total capital investment during the quarter.

Fresnillo Concessions Transaction

On July 8, 2024, Coeur closed the purchase of mining concessions adjacent to the Palmarejo gold-silver complex located in the state of Chihuahua, Mexico from Fresnillo for total cash consideration of $25 million, including $10 million paid at closing, $10 million to be paid in 2025, $5 million to be paid in 2026 and a future royalty on certain ounces discovered on the purchased concessions. This transaction completes Coeur’s district scale land package from the existing operations to the Guazapares area to the Eastern Palmarejo district, filling in two strategic gaps and forming a single contiguous district spanning over 40,000 acres of highly prospective and under-explored ground that sits outside the Franco-Nevada gold stream area of interest.

The set of acquired concessions located nearest the existing operation — the Independencia Sur claim block — covers the southeast extensions of the Independencia and La Nacion veins where mining currently takes place and is expected to be a key focus of the Company’s near-term development efforts. Historical drilling by Fresnillo, mainly along the Independencia vein, comprises approximately 82,000 meters from 111 drillholes. Very little drilling was undertaken along the strike extension of the La Nacion structure and is a high priority for drilling. Other veins, including Portales and Bruno, comprise additional targets for drill testing. No resource estimation under Item 1300 of SEC Regulation S-K currently exists on the property.

Coeur began mapping and surface sampling of the Independencia Sur vein structures in 2023, which have successfully traced the surface expression of the known veins. Future work is initially expected to consist of re-logging drillholes, additional detailed surface mapping and sampling, and incorporation of data into district geographic information system and geologic models. The Company plans to undertake an initial drill program to validate historic drilling and refine targets, with a subsequent expansion program followed by a maiden resource estimate.

The set of acquired concessions located further to the northeast surrounds multiple targets containing mineralization and historic resources, portions of which were added through Coeur’s 2015 acquisition of Paramount Gold and Silver. These concessions are part of a larger and unexplored east Palmarejo district and are expected to be part of a systematic exploration program to consolidate previous exploration on Coeur’s claims, including confirmation and step-out drilling of several advanced targets on the old Paramount claims onto the new Fresnillo claims.

Another northwest trending, sub-parallel trend to Independencia Sur and Guazapares exists between these two areas known as the El Camuchin - Escondida trend. Detailed mapping and sampling over the last two years have outlined several key targets on this trend, one of which is planned to be drilled this year.

Operations

Second quarter 2024 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)

 

2Q 2024

 

 

1Q 2024

 

 

4Q 2023

 

 

3Q 2023

 

 

2Q 2023

 

Tons milled

 

429,561

 

 

500,747

 

 

500,509

 

 

501,722

 

 

472,622

 

Average gold grade (oz/t)

 

0.066

 

 

0.070

 

 

0.060

 

 

0.055

 

 

0.056

 

Average silver grade (oz/t)

 

4.49

 

 

4.34

 

 

4.08

 

 

3.67

 

 

4.10

 

Average recovery rate – Au

 

89.9

%

 

95.2

%

 

89.4

%

 

97.6

%

 

87.4

%

Average recovery rate – Ag

 

82.8

%

 

83.7

%

 

79.4

%

 

86.9

%

 

83.5

%

Gold ounces produced

 

25,467

 

 

33,160

 

 

25,401

 

 

26,870

 

 

23,216

 

Silver ounces produced (000’s)

 

1,596

 

 

1,818

 

 

1,622

 

 

1,601

 

 

1,617

 

Gold ounces sold

 

24,313

 

 

33,462

 

 

24,848

 

 

26,018

 

 

22,207

 

Silver ounces sold (000’s)

 

1,542

 

 

1,796

 

 

1,644

 

 

1,534

 

 

1,561

 

Average realized price per gold ounce

$

1,744

 

$

1,611

 

$

1,615

 

$

1,499

 

$

1,589

 

Average realized price per silver ounce

$

26.48

 

$

23.64

 

$

24.78

 

$

24.96

 

$

23.98

 

Metal sales

$

83.2

 

$

96.4

 

$

80.9

 

$

77.3

 

$

72.7

 

Costs applicable to sales2

$

48.2

 

$

54.3

 

$

50.3

 

$

48.1

 

$

46.6

 

Adjusted CAS per AuOz1

$

1,006

 

$

901

 

$

1,010

 

$

917

 

$

1,023

 

Adjusted CAS per AgOz1

$

15.24

 

$

13.18

 

$

15.26

 

$

15.56

 

$

15.16

 

Exploration expense

$

2.6

 

$

2.5

 

$

2.7

 

$

2.2

 

$

1.6

 

Cash flow from operating activities

$

23.7

 

$

25.6

 

$

24.1

 

$

22.6

 

$

18.6

 

Sustaining capital expenditures (excludes capital lease payments)

$

3.1

 

$

4.7

 

$

6.9

 

$

8.4

 

$

10.7

 

Development capital expenditures

$

2.8

 

$

2.1

 

$

2.0

 

$

2.4

 

$

1.2

 

Total capital expenditures

$

5.9

 

$

6.8

 

$

8.9

 

$

10.8

 

$

11.9

 

Free cash flow1

$

17.8

 

$

18.8

 

$

15.2

 

$

11.8

 

$

6.7

 

Operational

  • Second quarter gold and silver production totaled 25,467 and 1.6 million ounces, respectively, compared to 33,160 and 1.8 million ounces in the prior period and 23,216 and 1.6 million ounces in the second quarter of 2023
  • Lower production during the quarter was driven primarily by lower throughput due to mine sequencing and decreased average recoveries, partially offset by higher average silver grade

Financial

  • Adjusted CAS1 for gold and silver on a co-product basis increased 12% and 16% quarter-over-quarter to $1,006 and $15.24 per ounce, respectively, driven by lower metal sales
  • Capital expenditures decreased 13% quarter-over-quarter to $6 million, reflecting decreased fleet investment, partially offset by higher underground development primarily focused on Hidalgo which is expected to create additional operating flexibility in the latter part of 2024
  • Free cash flow1 in the second quarter totaled $18 million compared to $19 million in the prior period

Exploration

  • Exploration investment for the second quarter remained relatively consistent to the prior quarter at approximately $3 million (substantially all expensed)
  • Up to five rigs were active during the quarter, mainly focused on the Zapata - Guadalupe corridor, expansion drilling along the western extension of the Hidalgo corridor, and targets within Hidalgo and structures parallel to Independencia
  • Drilling along strike of La Libertad is encountering favorable host rocks and hydrothermal quartz-calcite vein and breccia zones west of mine resources with drilling ongoing
  • At the Zapata - Guadalupe target, drilling confirmed the westward strike extensions of the Guadalupe North and Zapata veins and revealed a new structure with promising indications of additional mineralization. This zone is showing excellent potential for future resource expansion
  • Exploration efforts continue immediately east of the current operation and outside of the area subject to the gold stream. Mapping has identified brecciated and silicified veins southeast of existing operations, which are believed to run parallel to the primary vein systems currently being mined nearby
  • Ongoing geological mapping in the Guazapares area to the east of Palmarejo has successfully identified new vein extensions and parallel structures, signaling promising prospects for future exploration

Other

  • Approximately 29% of Palmarejo’s gold sales in the second quarter were sold under the gold stream agreement at a price of $800 per ounce, totaling 7,021 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 (previously $1,075 - $1,275 per gold ounce and $16.50 - $17.50 per silver ounce)
  • Capital expenditures are expected to be $27 - $37 million (previously $32 - $42 million), consisting primarily of sustaining capital and underground development

Rochester, Nevada

(Dollars in millions, except per ounce amounts)

 

2Q 2024

 

 

1Q 2024

 

 

4Q 2023

 

 

3Q 2023

 

 

2Q 2023

 

Ore tons placed

 

5,102,800

 

 

3,135,571

 

 

2,754,058

 

 

3,487,173

 

 

2,690,840

 

Average silver grade (oz/t)

 

0.59

 

 

0.52

 

 

0.44

 

 

0.50

 

 

0.42

 

Average gold grade (oz/t)

 

0.002

 

 

0.002

 

 

0.003

 

 

0.003

 

 

0.003

 

Silver ounces produced (000’s)

 

973

 

 

699

 

 

1,340

 

 

608

 

 

683

 

Gold ounces produced

 

8,006

 

 

5,755

 

 

19,847

 

 

4,459

 

 

6,314

 

Silver ounces sold (000’s)

 

985

 

 

735

 

 

1,269

 

 

606

 

 

695

 

Gold ounces sold

 

8,150

 

 

6,185

 

 

19,175

 

 

4,432

 

 

6,493

 

Average realized price per silver ounce

$

25.78

 

$

23.32

 

$

24.59

 

$

24.63

 

$

23.70

 

Average realized price per gold ounce

$

2,131

 

$

2,050

 

$

1,991

 

$

1,967

 

$

1,946

 

Metal sales

$

42.8

 

$

29.8

 

$

69.4

 

$

23.6

 

$

29.1

 

Costs applicable to sales2

$

36.7

 

$

27.0

 

$

71.8

 

$

30.5

 

$

26.1

 

Adjusted CAS per AgOz1

$

21.58

 

$

18.17

 

$

19.33

 

$

23.64

 

$

20.39

 

Adjusted CAS per AuOz1

$

1,813

 

$

1,630

 

$

1,564

 

$

1,899

 

$

1,646

 

Prepayment, working capital cash flow

$

—

 

$

—

 

$

—

 

$

7.5

 

$

10.0

 

Exploration expense

$

1.0

 

$

0.4

 

$

0.2

 

$

0.3

 

$

0.3

 

Cash flow from operating activities

$

(5.9

)

$

(18.7

)

$

11.6

 

$

(17.3

)

$

(3.8

)

Sustaining capital expenditures (excludes capital lease payments)

$

9.9

 

$

15.3

 

$

13.8

 

$

7.7

 

$

5.1

 

Development capital expenditures

$

17.6

 

$

5.9

 

$

51.7

 

$

76.7

 

$

56.4

 

Total capital expenditures

$

27.5

 

$

21.2

 

$

65.5

 

$

84.4

 

$

61.5

 

Free cash flow1

$

(33.4

)

$

(39.9

)

$

(53.9

)

$

(101.7

)

$

(65.3

)

Operational

  • Silver and gold production in the second quarter totaled 973,057 and 8,006 ounces, respectively, compared to 699,190 and 5,755 ounces in the prior period and 682,656 and 6,314 ounces in the second quarter of 2023. Average silver grade increased by 13% and 40% compared to the previous period and the second quarter of 2023, respectively
  • The Company successfully completed the ramp-up of all three stages of the crushing circuit by the end the second quarter by achieving throughput rates of over 88,000 tons per day. Ore tons placed increased 63% quarter-over-quarter to 5.1 million tons, including approximately 4.3 million tons through the new crushing circuit and placed on the stage 6 leach pad and roughly 0.8 million tons of run-of-mine material placed on the legacy stage 4 leach pad. Crushing and placement rates were lighter than initially planned for the full quarter primarily driven by down days to address ramp-up related adjustments that were identified while mining rates exceeded plan

Financial

  • Second quarter adjusted CAS1 for silver and gold on a co-product basis totaled $21.58 and $1,813 per ounce, respectively, mainly driven by increased tons placed from the newly expanded operation as Coeur ramped up production
  • Capital expenditures increased 30% quarter-over-quarter to $28 million, reflecting an earlier-than-expected conclusion of final negotiations with the key construction contractor and corresponding earlier payment of costs originally estimated to take place in 2025
  • Free cash flow1 in the second quarter totaled $(33) million compared to $(40) million in the prior period

Exploration

  • Exploration investment in the second quarter totaled approximately $2 million ($1.0 million expensed and $0.9 million capitalized) compared to roughly $1 million ($0.4 million expensed and $0.1 million capitalized) in the prior quarter
  • One diamond rig commenced drilling at Rochester during the quarter. The rig is drilling from the east side of the Rochester pit to test the Wedge area located adjacent to the pit for potential grade enhancement opportunities in the Wedge area and on structures in the East Rochester portion of the deposit
  • Second quarter activities also included preparation for additional 2024 drill programs, core and RC chip re-logging, interpretation and geological modeling, with a new geology model for Nevada Packard underway. This work is expected to refine understanding on the controls to mineralization at this deposit and guide remaining 2024 drill planning
  • The primary focus of drilling over the balance of 2024 is the assessment of the potential for higher grades on structures identified at Rochester East, immediately east of the pit wall, and Nevada Packard. Near-term exploration objectives aim to augment the grade profile of the current 16-year reserves-only mine life with the goal of enhancing cash flow

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 (previously $14.00 - $16.00 per silver ounce and $1,200 - $1,400 per gold ounce)
  • Capital expenditures are expected to be $61 - $79 million (previously $50 - $70 million), which reflects fleet enhancements as part of the ramp-up of the newly 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)

 

2Q 2024

 

 

1Q 2024

 

 

4Q 2023

 

 

3Q 2023

 

 

2Q 2023

 

Tons milled

 

182,043

 

 

167,439

 

 

177,382

 

 

167,950

 

 

152,907

 

Average gold grade (oz/t)

 

0.14

 

 

0.14

 

 

0.16

 

 

0.16

 

 

0.09

 

Average recovery rate

 

92.3

%

 

90.8

%

 

92.3

%

 

92.6

%

 

90.9

%

Gold ounces produced

 

23,202

 

 

21,434

 

 

26,686

 

 

24,614

 

 

13,193

 

Gold ounces sold

 

23,539

 

 

21,183

 

 

25,980

 

 

24,516

 

 

13,273

 

Average realized price per gold ounce, gross

$

2,223

 

$

2,105

 

$

2,016

 

$

1,956

 

$

1,991

 

Treatment and refining charges per gold ounce

$

52

 

$

52

 

$

58

 

$

60

 

$

142

 

Average realized price per gold ounce, net

$

2,171

 

$

2,053

 

$

1,958

 

$

1,896

 

$

1,849

 

Metal sales

$

51.1

 

$

43.5

 

$

51.2

 

$

46.5

 

$

24.6

 

Costs applicable to sales2

$

40.7

 

$

39.3

 

$

37.9

 

$

38.3

 

$

39.1

 

Adjusted CAS per AuOz1

$

1,734

 

$

1,840

 

$

1,441

 

$

1,543

 

$

2,927

 

Prepayment, working capital cash flow

$

(11.8

)

$

—

 

$

10.7

 

$

(10.7

)

$

9.9

 

Exploration expense

$

1.3

 

$

1.5

 

$

1.7

 

$

2.9

 

$

2.3

 

Cash flow from operating activities

$

(7.2

)

$

1.5

 

$

16.9

 

$

(4.4

)

$

(3.7

)

Sustaining capital expenditures (excludes capital lease payments)

$

16.5

 

$

13.3

 

$

15.1

 

$

15.8

 

$

11.7

 

Development capital expenditures

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Total capital expenditures

$

16.5

 

$

13.3

 

$

15.1

 

$

15.8

 

$

11.7

 

Free cash flow1

$

(23.7

)

$

(11.8

)

$

1.8

 

$

(20.2

)

$

(15.4

)

Operational

  • Gold production in the second quarter totaled 23,202 ounces compared to 21,434 ounces in the prior period and 13,193 ounces in the second quarter of 2023
  • Higher production during the quarter was driven by increased tons milled and higher average recoveries

Financial

  • Second quarter adjusted CAS1 totaled $1,734 per ounce compared to $1,840 per ounce in the prior period, reflecting increased metal sales
  • Capital expenditures increased 24% quarter-over-quarter to $17 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 second quarter totaled $(24) million compared to $(12) million in the prior period

Exploration

  • Exploration investment in the quarter totaled approximately $6 million ($1 million expensed and $4 million capitalized), compared to $4 million ($2 million expensed and $3 million capitalized) in the prior period
  • Up to four rigs were active at Kensington, with drilling focused on both infill and extension of the current resource boundaries
  • At the recently identified Zone 50 in Lower Kensington, drilling continues to show significant growth of the zone, both along strike and down dip
  • At Elmira, expansion and infill drilling activities are ongoing, with consistent intersection of broad zones of mineralization, especially notable in the upper sections of the deposit. Elmira Main and Elmira South have now been connected, and recent results in Elmira South suggest that the Elmira Main structure splits into a hanging wall and a footwall structure. Both structures are being traced along strike, with mineralization observed throughout the zone between them. Additionally, detailed structure modelling is also continuing, with the Elmira deposit model now almost complete
  • 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 (previously $44 - $56 million), of which approximately $33 - $39 million (previously $23 - $29 million) and $6 - $13 million (previously $5 - $10 million) is related to accelerated rates of underground development and infill drilling, respectively, as part of the Company’s successful multi-year exploration program

Wharf, South Dakota

(Dollars in millions, except per ounce amounts)

2Q 2024

 

1Q 2024

 

4Q 2023

 

3Q 2023

 

2Q 2023

Ore tons placed

 

1,162,437

 

1,251,955

 

1,290,562

 

1,254,267

 

1,041,846

Average gold grade (oz/t)

 

0.032

 

0.021

 

0.027

 

0.023

 

0.022

Gold ounces produced

 

22,021

 

20,395

 

29,675

 

22,674

 

25,683

Silver ounces produced (000’s)

 

69

 

67

 

90

 

69

 

88

Gold ounces sold

 

20,930

 

20,586

 

29,537

 

23,049

 

25,117

Silver ounces sold (000’s)

 

65

 

69

 

86

 

74

 

82

Average realized price per gold ounce

$

2,064

$

2,026

$

1,982

$

1,966

$

1,946

Metal sales

$

45.0

$

43.3

$

60.7

$

47.1

$

50.8

Costs applicable to sales2

$

19.1

$

25.4

$

32.4

$

31.0

$

27.8

Adjusted CAS per AuOz1

$

822

$

1,165

$

997

$

1,267

$

1,035

Prepayment, working capital cash flow

$

—

$

—

$

—

$

2.5

$

10.0

Exploration expense

$

1.1

$

0.1

$

—

$

—

$

—

Cash flow from operating activities

$

17.0

$

11.1

$

28.9

$

19.5

$

33.8

Sustaining capital expenditures (excludes capital lease payments)

$

1.2

$

0.3

$

1.3

$

0.6

$

0.1

Development capital expenditures

$

—

$

—

$

0.2

$

0.1

$

0.1

Total capital expenditures

$

1.2

$

0.3

$

1.5

$

0.7

$

0.2

Free cash flow1

$

15.8

$

10.8

$

27.4

$

18.8

$

33.6

Operational

  • Gold production in the second quarter increased 8% quarter-over-quarter to 22,021 ounces, largely due to timing of ounces placed on the leach pads. Year-over-year production for the quarter decreased 14%

Financial

  • Adjusted CAS1 on a by-product basis decreased 29% quarter-over-quarter to $822 per ounce, largely driven by favorable recovery rates from legacy pads
  • Capital expenditures increased slightly quarter-over-quarter to approximately $1 million
  • Free cash flow1 in the second quarter totaled $16 million compared to $11 million in the prior period, reflecting higher gold sales and decreased costs

Exploration

  • Exploration investment during the quarter totaled $1 million (substantially all expensed) compared to $0.1 million (substantially all expensed) in the prior quarter
  • During the second quarter, exploration drilling commenced at the Juno deposit with one rig active
  • Recently-completed studies of two areas within existing and historical mining zones at Wharf have identified opportunities to meaningfully extend overall mine life. Supplemental funding has been approved for a two-phased drilling program in 2024 and 2025 to test the two targets, Juno and North Foley

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 (previously $1,100 - $1,200 per gold ounce)
  • Capital expenditures are expected to be $5 - $7 million

Exploration

The Company’s exploration investment in 2024 is now expected to total $40 - $50 million for expansion drilling (classified as exploration expense) and $15 - $20 million (previously $7 - $13 million) for infill drilling (capitalized exploration). The full-year guidance range for infill drilling has been increased to reflect additional exploration investment at Wharf to drill the Juno and North Foley targets and at Kensington to continue drilling in zones in Upper and Lower Kensington.

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 second quarter, Coeur invested approximately $18 million ($13 million expensed and $5 million capitalized), compared to roughly $14 million ($11 million expensed and $3 million capitalized) in the prior period.

At Silvertip, exploration investment totaled approximately $6 million in the second quarter, compared to $5 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.

2024 Guidance

The Company has reaffirmed its 2024 production guidance. Due to strong operational performance and cost control measures, Coeur has lowered cost guidance at Palmarejo and Wharf.

With the ramp-up of the new Merrill-Crowe facility and three-stage crusher corridor at Rochester completed, the Company has provided updated cost guidance for Rochester for the second half of 2024, which is reflected below. In addition, Coeur was able to conclude final negotiations with the key construction contractor during the second quarter, leading to an increase in expected 2024 development capital expenditures as certain costs that were originally planned for 2025 were paid during the second quarter. The Company has now paid $725 million of the total $730 million capital cost of the expansion.

Coeur has increased its planned exploration program at Wharf as the Company has identified opportunities to extend mine life at the Juno and North Foley deposits as well as at Kensington. 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

 

Previous

 

Updated

 

Gold

Silver

 

Gold

Silver

 

($/oz)

($/oz)

 

($/oz)

($/oz)

Palmarejo (co-product)

$1,075 - $1,275

$16.50 - $17.50

 

$950 - $1,150

$15.50 - $16.50

Second Half 2024 Rochester (co-product)

$1,200 - $1,400

$14.00 - $16.00

 

$1,500 - $1,700

$18.00 - $20.00

Kensington

$1,525 - $1,725

—

 

$1,525 - $1,725

—

Wharf (by-product)

$1,100 - $1,200

—

 

$950 - $1,050

—

2024 Capital, Exploration and G&A Guidance

 

 

 

Previous

 

Updated

 

 

 

($M)

 

($M)

Capital Expenditures, Sustaining

 

 

$116 - $158

 

$124 - $158

Capital Expenditures, Development

 

 

$19 - $26

 

$36 - $42

Exploration, Expensed

 

 

$40 - $50

 

$40 - $50

Exploration, Capitalized

 

 

$7 - $13

 

$15 - $20

General & Administrative Expenses

 

 

$36 - $40

 

$36 - $40

Note: The Company’s previous guidance figures assume estimated prices of $2,000/oz gold and $23.75/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. The Company’s updated 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 second quarter 2024 financial results on August 8, 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 August 15, 2024.

Replay numbers:

(877) 344-7529 (U.S.)

 

(855) 669-9658 (Canada)

 

(412) 317-0088 (International)

Conference ID:

379 87 57

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, expectations, plans, costs and timing regarding the Rochester expansion project including anticipated throughput, hedging strategies, and anticipated production, costs and expenses and operations at Palmarejo, Rochester, Wharf and Kensington. 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, 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.

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

1.

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.

2.

Excludes amortization.

3.

Includes capital leases. Net of debt issuance costs and premium received.

Average Spot Prices

 

2Q 2024

 

1Q 2024

 

4Q 2023

 

3Q 2023

 

2Q 2023

Average Gold Spot Price Per Ounce

$

2,338

$

2,070

$

1,971

$

1,928

$

1,976

Average Silver Spot Price Per Ounce

$

28.45

$

23.34

$

23.20

$

23.57

$

24.13

Average Zinc Spot Price Per Pound

$

1.29

$

1.11

$

1.13

$

1.10

$

1.15

Average Lead Spot Price Per Pound

$

0.98

$

0.94

$

0.96

$

0.98

$

0.96

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

June 30, 2024

 

December 31, 2023

ASSETS

In thousands, except share data

CURRENT ASSETS

 

 

 

Cash and cash equivalents

$

74,136

 

 

$

61,633

 

Receivables

 

32,087

 

 

 

31,035

 

Inventory

 

76,896

 

 

 

76,661

 

Ore on leach pads

 

116,897

 

 

 

79,400

 

Prepaid expenses and other

 

12,080

 

 

 

18,526

 

 

 

312,096

 

 

 

267,255

 

NON-CURRENT ASSETS

 

 

 

Property, plant and equipment and mining properties, net

 

1,695,951

 

 

 

1,688,288

 

Ore on leach pads

 

41,226

 

 

 

25,987

 

Restricted assets

 

9,026

 

 

 

9,115

 

Receivables

 

23,140

 

 

 

23,140

 

Other

 

61,610

 

 

 

67,063

 

TOTAL ASSETS

$

2,143,049

 

 

$

2,080,848

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts payable

$

107,323

 

 

$

115,110

 

Accrued liabilities and other

 

119,808

 

 

 

140,913

 

Debt

 

22,213

 

 

 

22,636

 

Reclamation

 

10,954

 

 

 

10,954

 

 

 

260,298

 

 

 

289,613

 

NON-CURRENT LIABILITIES

 

 

 

Debt

 

607,114

 

 

 

522,674

 

Reclamation

 

208,963

 

 

 

203,059

 

Deferred tax liabilities

 

7,571

 

 

 

12,360

 

Other long-term liabilities

 

27,295

 

 

 

29,239

 

 

 

850,943

 

 

 

767,332

 

COMMITMENTS AND CONTINGENCIES

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock, par value $0.01 per share; authorized 600,000,000 shares, 399,240,520 issued and outstanding at June 30, 2024 and 386,282,957 at December 31, 2023

 

3,992

 

 

 

3,863

 

Additional paid-in capital

 

4,176,668

 

 

 

4,139,870

 

Accumulated other comprehensive income (loss)

 

—

 

 

 

1,331

 

Accumulated deficit

 

(3,148,852

)

 

 

(3,121,161

)

 

 

1,031,808

 

 

 

1,023,903

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,143,049

 

 

$

2,080,848

 

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

In thousands, except share data

Revenue

$

222,026

 

 

$

177,235

 

 

$

435,086

 

 

$

364,533

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

Costs applicable to sales(1)

 

144,717

 

 

 

139,637

 

 

 

290,714

 

 

 

292,693

 

Amortization

 

27,928

 

 

 

19,595

 

 

 

55,225

 

 

 

42,303

 

General and administrative

 

11,241

 

 

 

9,789

 

 

 

25,645

 

 

 

21,872

 

Exploration

 

12,874

 

 

 

2,920

 

 

 

23,365

 

 

 

7,570

 

Pre-development, reclamation, and other

 

8,590

 

 

 

10,360

 

 

 

26,818

 

 

 

21,250

 

Total costs and expenses

 

205,350

 

 

 

182,301

 

 

 

421,767

 

 

 

385,688

 

OTHER INCOME (EXPENSE), NET

 

 

 

 

 

 

 

Gain on debt extinguishment

 

(21

)

 

 

2,961

 

 

 

417

 

 

 

2,961

 

Fair value adjustments, net

 

—

 

 

 

(3,922

)

 

 

—

 

 

 

6,639

 

Interest expense, net of capitalized interest

 

(13,162

)

 

 

(6,912

)

 

 

(26,109

)

 

 

(14,301

)

Other, net

 

5,122

 

 

 

(9,607

)

 

 

7,895

 

 

 

(10,568

)

Total other income (expense), net

 

(8,061

)

 

 

(17,480

)

 

 

(17,797

)

 

 

(15,269

)

Income (loss) before income and mining taxes

 

8,615

 

 

 

(22,546

)

 

 

(4,478

)

 

 

(36,424

)

Income and mining tax (expense) benefit

 

(7,189

)

 

 

(9,866

)

 

 

(23,213

)

 

 

(20,574

)

NET INCOME (LOSS)

$

1,426

 

 

$

(32,412

)

 

$

(27,691

)

 

$

(56,998

)

OTHER COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

Change in fair value of derivative contracts designated as cash flow hedges

 

(10,881

)

 

 

12,842

 

 

 

(18,507

)

 

 

(86

)

Reclassification adjustments for realized (gain) loss on cash flow hedges

 

17,028

 

 

 

1,224

 

 

 

17,176

 

 

 

(2,910

)

Other comprehensive income (loss)

 

6,147

 

 

 

14,066

 

 

 

(1,331

)

 

 

(2,996

)

COMPREHENSIVE INCOME (LOSS)

$

7,573

 

 

$

(18,346

)

 

$

(29,022

)

 

$

(59,994

)

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

Basic income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.00

 

 

$

(0.10

)

 

$

(0.07

)

 

$

(0.18

)

 

 

 

 

 

 

 

 

Diluted

$

0.00

 

 

$

(0.10

)

 

$

(0.07

)

 

$

(0.18

)

(1) Excludes amortization.

 

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

In thousands

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income (loss)

$

1,426

 

 

$

(32,412

)

 

$

(27,691

)

 

$

(56,998

)

Adjustments:

 

 

 

 

 

 

 

Amortization

 

27,928

 

 

 

19,595

 

 

 

55,225

 

 

 

42,303

 

Accretion

 

4,154

 

 

 

4,073

 

 

 

8,230

 

 

 

8,066

 

Deferred taxes

 

(9,217

)

 

 

(1,043

)

 

 

(4,788

)

 

 

5,408

 

Gain on debt extinguishment

 

21

 

 

 

(2,961

)

 

 

(417

)

 

 

(2,961

)

Fair value adjustments, net

 

—

 

 

 

3,922

 

 

 

—

 

 

 

(6,639

)

Stock-based compensation

 

2,732

 

 

 

2,676

 

 

 

6,980

 

 

 

5,827

 

Loss on the sale of assets

 

—

 

 

 

12,631

 

 

 

—

 

 

 

12,631

 

Write-downs

 

—

 

 

 

1,627

 

 

 

3,235

 

 

 

14,740

 

Deferred revenue recognition

 

(118

)

 

 

(15,100

)

 

 

(55,277

)

 

 

(25,215

)

Other

 

556

 

 

 

72

 

 

 

11,378

 

 

 

2,141

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

3,180

 

 

 

(913

)

 

 

(2,136

)

 

 

2,137

 

Prepaid expenses and other current assets

 

4,176

 

 

 

4,260

 

 

 

3,537

 

 

 

3,764

 

Inventory and ore on leach pads

 

(19,774

)

 

 

(18,738

)

 

 

(39,468

)

 

 

(36,373

)

Accounts payable and accrued liabilities

 

185

 

 

 

61,708

 

 

 

40,570

 

 

 

35,563

 

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

15,249

 

 

 

39,397

 

 

 

(622

)

 

 

4,394

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Capital expenditures

 

(51,405

)

 

 

(85,581

)

 

 

(93,488

)

 

 

(159,629

)

Proceeds from the sale of assets

 

—

 

 

 

8,228

 

 

 

24

 

 

 

8,228

 

Sale of investments

 

—

 

 

 

1,783

 

 

 

—

 

 

 

41,558

 

Proceeds from notes receivable

 

—

 

 

 

—

 

 

 

—

 

 

 

5,000

 

Other

 

(148

)

 

 

(64

)

 

 

(215

)

 

 

(108

)

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

(51,553

)

 

 

(75,634

)

 

 

(93,679

)

 

 

(104,951

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Issuance of common stock

 

—

 

 

 

13,013

 

 

 

22,823

 

 

 

111,442

 

Issuance of notes and bank borrowings, net of issuance costs

 

115,000

 

 

 

150,000

 

 

 

250,000

 

 

 

225,000

 

Payments on debt, finance leases, and associated costs

 

(71,653

)

 

 

(136,927

)

 

 

(163,878

)

 

 

(238,824

)

Other

 

(31

)

 

 

(225

)

 

 

(1,810

)

 

 

(2,322

)

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

43,316

 

 

 

25,861

 

 

 

107,135

 

 

 

95,296

 

Effect of exchange rate changes on cash and cash equivalents

 

(361

)

 

 

253

 

 

 

(321

)

 

 

652

 

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

6,651

 

 

 

(10,123

)

 

 

12,513

 

 

 

(4,609

)

Cash, cash equivalents and restricted cash at beginning of period

 

69,240

 

 

 

68,683

 

 

 

63,378

 

 

 

63,169

 

Cash, cash equivalents and restricted cash at end of period

$

75,891

 

 

$

58,560

 

 

$

75,891

 

 

$

58,560

 

Adjusted EBITDA Reconciliation

 

(Dollars in thousands except per share amounts)

LTM 2Q
2024

 

 

2Q 2024

 

 

 

1Q 2024

 

 

 

4Q 2023

 

 

 

3Q 2023

 

 

 

2Q 2023

 

Net income (loss)

$

(74,305

)

 

$

1,426

 

 

$

(29,117

)

 

$

(25,505

)

 

$

(21,109

)

 

$

(32,412

)

Interest expense, net of capitalized interest

 

40,907

 

 

 

13,162

 

 

 

12,947

 

 

 

7,396

 

 

 

7,402

 

 

 

6,912

 

Income tax provision (benefit)

 

37,795

 

 

 

7,189

 

 

 

16,024

 

 

 

8,485

 

 

 

6,097

 

 

 

9,866

 

Amortization

 

112,744

 

 

 

27,928

 

 

 

27,297

 

 

 

34,635

 

 

 

22,884

 

 

 

19,595

 

EBITDA

 

117,141

 

 

 

49,705

 

 

 

27,151

 

 

 

25,011

 

 

 

15,274

 

 

 

3,961

 

Fair value adjustments, net

 

3,255

 

 

 

—

 

 

 

—

 

 

 

1,245

 

 

 

2,010

 

 

 

3,922

 

Foreign exchange (gain) loss

 

(1,792

)

 

 

(2,089

)

 

 

365

 

 

 

353

 

 

 

(421

)

 

 

(627

)

Asset retirement obligation accretion

 

16,569

 

 

 

4,154

 

 

 

4,076

 

 

 

4,186

 

 

 

4,153

 

 

 

4,073

 

Inventory adjustments and write-downs

 

32,657

 

 

 

1,071

 

 

 

4,188

 

 

 

18,464

 

 

 

8,934

 

 

 

1,603

 

(Gain) loss on sale of assets and securities

 

16,742

 

 

 

640

 

 

 

3,536

 

 

 

12,547

 

 

 

19

 

 

 

12,622

 

RMC bankruptcy distribution

 

(1,199

)

 

 

(1,199

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,516

)

(Gain) loss on debt extinguishment

 

(893

)

 

 

21

 

 

 

(438

)

 

 

298

 

 

 

(774

)

 

 

(2,961

)

Other adjustments

 

9,206

 

 

 

104

 

 

 

5,461

 

 

 

2,188

 

 

 

1,453

 

 

 

1,158

 

Adjusted EBITDA

$

191,686

 

 

$

52,407

 

 

$

44,339

 

 

$

64,292

 

 

$

30,648

 

 

$

22,235

 

Revenue

$

891,759

 

 

$

222,026

 

 

$

213,060

 

 

$

262,090

 

 

$

194,583

 

 

$

177,235

 

Adjusted EBITDA Margin

 

21

%

 

 

24

%

 

 

21

%

 

 

25

%

 

 

16

%

 

 

13

%

Adjusted Net Income (Loss) Reconciliation

 

(Dollars in thousands except per share amounts)

 

2Q 2024

 

 

 

1Q 2024

 

 

 

4Q 2023

 

 

 

3Q 2023

 

 

 

2Q 2023

 

Net income (loss)

$

1,426

 

 

$

(29,117

)

 

$

(25,505

)

 

$

(21,109

)

 

$

(32,412

)

Fair value adjustments, net

 

—

 

 

 

—

 

 

 

1,245

 

 

 

2,010

 

 

 

3,922

 

Foreign exchange loss (gain)

 

(2,950

)

 

 

484

 

 

 

(156

)

 

 

5

 

 

 

154

 

(Gain) loss on sale of assets and securities

 

640

 

 

 

3,536

 

 

 

12,547

 

 

 

19

 

 

 

12,622

 

RMC bankruptcy distribution

 

(1,199

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,516

)

(Gain) loss on debt extinguishment

 

21

 

 

 

(438

)

 

 

298

 

 

 

(774

)

 

 

(2,961

)

Other adjustments

 

104

 

 

 

5,461

 

 

 

2,188

 

 

 

1,453

 

 

 

1,158

 

Tax effect of adjustments

 

(1,447

)

 

 

1,053

 

 

 

3,165

 

 

 

(223

)

 

 

(1,120

)

Adjusted net income (loss)

$

(3,405

)

 

$

(19,021

)

 

$

(6,218

)

 

$

(18,619

)

 

$

(20,153

)

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) per share - Basic

$

(0.01

)

 

$

(0.05

)

 

$

(0.02

)

 

$

(0.05

)

 

$

(0.06

)

Adjusted net income (loss) per share - Diluted

$

(0.01

)

 

$

(0.05

)

 

$

(0.02

)

 

$

(0.05

)

 

$

(0.06

)

Consolidated Free Cash Flow Reconciliation

 

(Dollars in thousands)

 

2Q 2024

 

 

 

1Q 2024

 

 

 

4Q 2023

 

 

 

3Q 2023

 

 

 

2Q 2023

 

Cash flow from operations

$

15,249

 

 

$

(15,871

)

 

$

65,277

 

 

$

(2,383

)

 

$

39,397

 

Capital expenditures

 

51,405

 

 

 

42,083

 

 

 

92,715

 

 

 

112,273

 

 

 

85,581

 

Free cash flow

$

(36,156

)

 

$

(57,954

)

 

$

(27,438

)

 

$

(114,656

)

 

$

(46,184

)

Consolidated Operating Cash Flow

Before Changes in Working Capital Reconciliation

 

(Dollars in thousands)

 

2Q 2024

 

 

 

1Q 2024

 

 

 

4Q 2023

 

 

 

3Q 2023

 

 

 

2Q 2023

 

Cash provided by (used in) operating activities

$

15,249

 

 

$

(15,871

)

 

$

65,277

 

 

$

(2,383

)

 

$

39,397

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Receivables

 

(3,180

)

 

 

5,316

 

 

 

726

 

 

 

478

 

 

 

913

 

Prepaid expenses and other

 

(4,176

)

 

 

639

 

 

 

1,225

 

 

 

3,000

 

 

 

(4,260

)

Inventories

 

19,774

 

 

 

19,694

 

 

 

(7,401

)

 

 

18,620

 

 

 

18,738

 

Accounts payable and accrued liabilities

 

(185

)

 

 

(40,385

)

 

 

(14,490

)

 

 

(5,528

)

 

 

(61,708

)

Operating cash flow before changes in working capital

$

27,482

 

 

$

(30,607

)

 

$

45,337

 

 

$

14,187

 

 

$

(6,920

)

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 Three Months Ended June 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)

$

54,608

 

 

$

29,717

 

 

$

43,950

 

 

$

29,634

 

 

$

1,021

 

 

$

158,930

 

Amortization

 

(8,017

)

 

 

(3,649

)

 

 

(4,801

)

 

 

(1,805

)

 

 

(1,021

)

 

 

(19,293

)

Costs applicable to sales

$

46,591

 

 

$

26,068

 

 

$

39,149

 

 

$

27,829

 

 

$

—

 

 

$

139,637

 

Inventory Adjustments

 

(209

)

 

 

(1,215

)

 

 

(239

)

 

 

77

 

 

 

—

 

 

 

(1,586

)

By-product credit

 

—

 

 

 

—

 

 

 

(63

)

 

 

(1,922

)

 

 

—

 

 

 

(1,985

)

Adjusted costs applicable to sales

$

46,382

 

 

$

24,853

 

 

$

38,847

 

 

$

25,984

 

 

$

—

 

 

$

136,066

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Sales

 

 

 

 

 

 

 

 

 

 

 

Gold ounces

 

22,207

 

 

 

6,493

 

 

 

13,273

 

 

 

25,117

 

 

 

—

 

 

 

67,090

 

Silver ounces

 

1,560,743

 

 

 

694,657

 

 

 

—

 

 

 

82,013

 

 

 

—

 

 

 

2,337,413

 

Zinc pounds

 

 

 

 

 

 

 

 

 

—

 

 

 

—

 

Lead pounds

 

 

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Split

 

 

 

 

 

 

 

 

 

 

 

Gold

 

49

%

 

 

43

%

 

 

100

%

 

 

100

%

 

 

 

 

Silver

 

51

%

 

 

57

%

 

 

 

 

 

 

—

%

 

 

Zinc

 

 

 

 

 

 

 

 

 

—

%

 

 

Lead

 

 

 

 

 

 

 

 

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted costs applicable to sales

 

 

 

 

 

 

 

 

 

 

 

Gold ($/oz)

$

1,023

 

 

$

1,646

 

 

$

2,927

 

 

$

1,035

 

 

 

 

$

1,464

 

Silver ($/oz)

$

15.16

 

 

$

20.39

 

 

 

 

 

 

$

—

 

 

$

16.77

 

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

 

 

 

 

  1. 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)

$1,075 - $1,275

 

$1,200 - $1,400

 

$1,525 - $1,725

 

$1,100 - $1,200

Silver ($/oz)

$16.50 - $17.50

 

$14.00 - $16.00

 

 

 

 

 
  1. Cost guidance for Rochester reflects the second half of 2024.

 

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

Source: Coeur Mining

FAQ

What were Coeur Mining's (CDE) Q2 2024 revenue and net income?

Coeur Mining reported Q2 2024 revenue of $222 million and a GAAP net income of $1 million.

How did Coeur Mining's Rochester operation perform in Q2 2024?

Rochester's silver and gold production increased by 39% QoQ, achieving throughput rates over 88,000 tons per day.

What is Coeur Mining's adjusted EBITDA for Q2 2024?

Coeur Mining reported an adjusted EBITDA of $52 million in Q2 2024, a 136% year-over-year increase.

What were Coeur Mining's average realized gold and silver prices in Q2 2024?

The average realized gold price was $2,003 per ounce and the silver price was $26.20 per ounce.

What significant acquisition did Coeur Mining complete in Q2 2024?

Coeur Mining completed the acquisition of key concessions near the Palmarejo complex for $25 million.

Is Coeur Mining maintaining its 2024 production guidance?

Yes, Coeur Mining is maintaining its full-year production guidance of 310,000 - 355,000 gold ounces and 10.7 - 13.3 million silver ounces.

What is the status of Coeur Mining's hedging program as of Q2 2024?

Coeur Mining's hedging program concluded in Q2 2024, leaving the company fully exposed to commodity prices.

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Coeur Mining, Inc.

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Coeur to Participate in Upcoming Conferences
Nov 7, 2024
Coeur to Participate in RBC Capital Markets London Precious Metals Conference

CDE Stock Data

2.57B
393.17M
1.48%
78.52%
9.63%
Gold
Gold and Silver Ores
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United States of America
CHICAGO