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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Coeur Mining Inc | NYSE:CDE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.10 | 1.86% | 5.47 | 5.62 | 5.405 | 5.49 | 4,806,461 | 00:57:52 |
Reaffirms Full-Year 2024 Guidance; Achieves Commercial Production at Rochester
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported first quarter 2024 financial results, including revenue of $213 million and cash flow from operating activities of $(16) million. The Company reported GAAP net loss from continuing operations of $29 million, or $0.08 per share. On an adjusted basis1, Coeur reported EBITDA of $44 million, cash flow from operating activities before changes in working capital of $(31) million and net loss from continuing operations of $19 million, or $0.05 per share.
Key Highlights
“Coeur began 2024 with solid first quarter production in a catalyst-rich year for the Company,” said Mitchell J. Krebs, President and Chief Executive Officer. “This strong start, highlighted by the achievement of commercial production at Rochester at the end of the first quarter, puts us in a great position to achieve full-year 2024 guidance and begin generating positive free cash flow in the second half of the year. Palmarejo achieved its highest quarterly production levels in several years thanks to strong contributions from both Guadalupe and Independencia underground operations while Wharf delivered a stronger than planned quarter after achieving record performance in 2023.
“The team at Rochester completed the pre-commissioning and commissioning of the new crushing circuit in the first quarter as planned. The next milestone will be to complete ramp-up to sustained nameplate capacity of 88,000 tons per day by the end of the second quarter. The combination of lower capex and significantly higher production, coupled with higher commodity prices, are expected to lead to strong cash flow generation in the second half of 2024 which will be allocated to debt reduction and funding near-mine exploration priorities. I am pleased with the progress of Kensington’s multi-year underground development and exploration program, which is expected to wrap up mid-year next year, and we look forward to achieving our goal of extending its mine life beyond five years by year-end.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Gold Sales
$
151.8
$
187.7
$
139.5
$
121.4
$
127.1
Silver Sales
$
61.3
$
74.3
$
55.1
$
55.9
$
60.2
Consolidated Revenue
$
213.1
$
262.1
$
194.6
$
177.2
$
187.3
Costs Applicable to Sales2
$
146.0
$
192.3
$
147.9
$
139.6
$
153.1
General and Administrative Expenses
$
14.4
$
10.2
$
9.5
$
9.8
$
12.1
Net Income (Loss)
$
(29.1
)
$
(25.5
)
$
(21.1
)
$
(32.4
)
$
(24.6
)
Net Income (Loss) Per Share
$
(0.08
)
$
(0.07
)
$
(0.06
)
$
(0.10
)
$
(0.08
)
Adjusted Net Income (Loss)1
$
(19.0
)
$
(6.2
)
$
(18.6
)
$
(20.2
)
$
(33.1
)
Adjusted Net Income (Loss)1 Per Share
$
(0.05
)
$
(0.02
)
$
(0.05
)
$
(0.06
)
$
(0.11
)
Weighted Average Shares Outstanding
385.0
380.5
356.7
333.1
301.0
EBITDA1
$
27.2
$
25.0
$
15.3
$
4.0
$
16.2
Adjusted EBITDA1
$
44.3
$
64.3
$
30.6
$
22.2
$
25.1
Cash Flow from Operating Activities
$
(15.9
)
$
65.3
$
(2.4
)
$
39.4
$
(35.0
)
Capital Expenditures
$
42.1
$
92.7
$
112.3
$
85.6
$
74.0
Free Cash Flow1
$
(58.0
)
$
(27.4
)
$
(114.7
)
$
(46.2
)
$
(109.0
)
Cash, Equivalents & Short-Term Investments
$
67.5
$
61.6
$
53.2
$
56.8
$
67.0
Total Debt3
$
585.6
$
545.3
$
512.2
$
469.4
$
494.1
Average Realized Price Per Ounce – Gold
$
1,864
$
1,886
$
1,788
$
1,809
$
1,794
Average Realized Price Per Ounce – Silver
$
23.57
$
24.79
$
24.88
$
23.91
$
23.25
Gold Ounces Produced
80,744
101,609
78,617
68,406
69,039
Silver Ounces Produced
2.6
$
3.1
2.3
2.4
2.5
Gold Ounces Sold
81,416
99,540
78,015
67,090
70,866
Silver Ounces Sold
2.6
$
3.0
2.2
2.3
2.6
Adjusted CAS per AuOz1
$
1,267
$
1,225
$
1,273
$
1,464
$
1,381
Adjusted CAS per AgOz1
$
14.63
$
17.03
$
17.85
$
16.77
$
15.83
Financial Results
First quarter 2024 revenue totaled $213 million compared to $262 million in the prior period and $187 million in the first quarter of 2023. The Company produced 80,744 and 2.6 million ounces of gold and silver, respectively, during the quarter. Metal sales for the quarter totaled 81,416 ounces of gold and 2.6 million ounces of silver. Average realized gold and silver prices for the quarter were $1,864 and $23.57 per ounce, respectively, compared to $1,886 and $24.79 per ounce in the prior period and $1,794 and $23.25 per ounce in the first quarter of 2023.
Gold and silver sales represented 71% and 29% of quarterly revenue, respectively, compared to 72% and 28% in the prior period. The Company’s U.S. operations accounted for approximately 55% of first quarter revenue compared to 65% in the fourth quarter of 2023.
Costs applicable to sales2 decreased 24% quarter-over-quarter to $146 million, largely due to lower production in the period. General and administrative expenses increased 41% quarter-over-quarter to $14 million largely driven by annual incentive payouts.
Coeur invested approximately $14 million ($11 million expensed and $3 million capitalized) in exploration during the quarter, consistent with 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 $16 million during the first quarter. Cash income and mining taxes paid during the period totaled approximately $20 million, including $9 million for payment of the annual Mexican mining royalty tax.
Quarterly operating cash flow totaled $(16) million compared to $65 million in the prior period, mainly driven by lower metal sales. Changes in working capital during the quarter were $15 million, compared to $20 million in the prior period, reflecting the timing of prepayments, tax payments in Mexico and semi-annual interest payments on the Company’s 2029 5.125% Senior Notes.
First quarter capital expenditures were $42 million compared to $93 million in the prior period, reflecting the final major investment quarter for the completed Rochester expansion. Sustaining and development capital expenditures accounted for approximately $34 million and $8 million, or 81% and 19%, respectively, of Coeur’s total capital investment during the quarter.
Balance Sheet and Liquidity Update
Coeur completed an amendment to its revolving credit facility (“RCF”) during the first quarter which included expanding total borrowing capacity to $400 million and extending the term so that it now matures in the first quarter of 2027. The Company ended the quarter with total liquidity of approximately $213 million, including $67 million of cash and $145 million of available capacity under its $400 million RCF4.
LTM adjusted EBITDA totaled $162 million at the end of the first quarter compared to $142 million at the end of the fourth quarter of 2023 and $123 million at the end of the first quarter of 2023. Total debt increased to $586 million at the end of the first quarter compared to $545 million at the end of the fourth quarter of 2023 and $494 million at the end of the first quarter of 2023 primarily due to final Rochester expansion-related payments, leading to a total debt to adjusted EBITDA leverage ratio of 3.6x at the end of the period compared to 4.0x at the end of the first quarter of 2023.
During the first quarter, Coeur satisfied $55 million associated with prepay agreements at Kensington, Rochester and Wharf. Additionally, the Company exercised options under amended agreements to receive an additional $25 million prepayment at Kensington, an approximately $18 million prepayment for deliveries of gold and silver doré from Rochester, and a roughly $13 million prepayment for deliveries of gold concentrate from Wharf. Coeur also completed a $25 million flow through financing program during the quarter to substantially fund Silvertip’s 2024 exploration program.
Hedging Update
The Company did not execute any additional hedges during the first quarter. An overview of remaining hedges in place is outlined below.
2Q 2024
Gold Ounces Hedged
49,950
Avg. Forward Price ($/oz)
$2,100
Silver Ounces Hedged
1,800,000
Avg. Forward Price ($/oz)
$26.00
Rochester LCM Adjustment
Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method. Decreases in the market price of gold and silver can affect the value of metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as impact carrying value of long-lived assets. At the end of the first quarter, the cost of ore on leach pads at Rochester exceeded its net realizable value, which resulted in a lower of cost or market (“LCM”) adjustment of $4 million (approximately $3 million in costs applicable to sales2 and $1 million of amortization).
Additionally, the Company completed a review of the estimated recoverable ounces of gold and silver on its leach pads and determined that as a result of longer expected leach time and favorable recoveries relative to previous estimates that the estimated recoverable gold and silver on the Rochester legacy (Stages II, III and IV) leach pads supported an upward revision.
Operations
First quarter 2024 highlights for each of the Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Tons milled
500,747
500,509
501,722
472,622
533,606
Average gold grade (oz/t)
0.070
0.060
0.055
0.056
0.052
Average silver grade (oz/t)
4.34
4.08
3.67
4.10
4.02
Average recovery rate – Au
95.2
%
89.4
%
97.6
%
87.4
%
90.1
%
Average recovery rate – Ag
83.7
%
79.4
%
86.9
%
83.5
%
81.7
%
Gold ounces produced
33,160
25,401
26,870
23,216
25,118
Silver ounces produced (000’s)
1,818
1,622
1,601
1,617
1,752
Gold ounces sold
33,462
24,848
26,018
22,207
25,970
Silver ounces sold (000’s)
1,796
1,644
1,534
1,561
1,795
Average realized price per gold ounce
$
1,611
$
1,615
$
1,499
$
1,589
$
1,564
Average realized price per silver ounce
$
23.64
$
24.78
$
24.96
$
23.98
$
23.23
Metal sales
$
96.4
$
80.9
$
77.3
$
72.7
$
82.3
Costs applicable to sales2
$
54.3
$
50.3
$
48.1
$
46.6
$
49.3
Adjusted CAS per AuOz1
$
901
$
1,010
$
917
$
1,023
$
926
Adjusted CAS per AgOz1
$
13.18
$
15.26
$
15.56
$
15.16
$
13.94
Exploration expense
$
2.5
$
2.7
$
2.2
$
1.6
$
1.3
Cash flow from operating activities
$
25.6
$
24.1
$
22.6
$
18.6
$
11.5
Sustaining capital expenditures (excludes capital lease payments)
$
4.7
$
6.9
$
8.4
$
10.7
$
8.6
Development capital expenditures
$
2.1
$
2.0
$
2.4
$
1.2
$
1.6
Total capital expenditures
$
6.8
$
8.9
$
10.8
$
11.9
$
10.2
Free cash flow1
$
18.8
$
15.2
$
11.8
$
6.7
$
1.3
Operational
Financial
Exploration
Other
Guidance
Rochester, Nevada
(Dollars in millions, except per ounce amounts)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Ore tons placed
3,135,571
2,754,058
3,487,173
2,690,840
2,456,586
Average silver grade (oz/t)
0.52
0.44
0.50
0.42
0.45
Average gold grade (oz/t)
0.002
0.003
0.003
0.003
0.003
Silver ounces produced (000’s)
699
1,340
608
683
761
Gold ounces produced
5,755
19,847
4,459
6,314
8,155
Silver ounces sold (000’s)
735
1,269
606
695
770
Gold ounces sold
6,185
19,175
4,432
6,493
8,349
Average realized price per silver ounce
$
23.32
$
24.59
$
24.63
$
23.70
$
23.19
Average realized price per gold ounce
$
2,050
$
1,991
$
1,967
$
1,946
$
1,922
Metal sales
$
29.8
$
69.4
$
23.6
$
29.1
$
33.9
Costs applicable to sales2
$
27.0
$
71.8
$
30.5
$
26.1
$
42.9
Adjusted CAS per AgOz1
$
18.17
$
19.33
$
23.64
$
20.39
$
20.24
Adjusted CAS per AuOz1
$
1,630
$
1,564
$
1,899
$
1,646
$
1,655
Prepayment, working capital cash flow
$
—
$
—
$
7.5
$
10.0
$
—
Exploration expense
$
0.4
$
0.2
$
0.3
$
0.3
$
0.4
Cash flow from operating activities
$
(18.7
)
$
11.6
$
(17.3
)
$
(3.8
)
$
(13.5
)
Sustaining capital expenditures (excludes capital lease payments)
$
15.4
$
13.8
$
7.7
$
5.1
$
4.3
Development capital expenditures
$
5.8
$
51.7
$
76.7
$
56.4
$
47.7
Total capital expenditures
$
21.2
$
65.5
$
84.4
$
61.5
$
52.0
Free cash flow1
$
(39.9
)
$
(53.9
)
$
(101.7
)
$
(65.3
)
$
(65.5
)
Operational
Financial
Exploration
Guidance
Kensington, Alaska
(Dollars in millions, except per ounce amounts)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Tons milled
167,439
177,382
167,950
152,907
153,337
Average gold grade (oz/t)
0.14
0.16
0.16
0.09
0.15
Average recovery rate
90.8
%
92.3
%
92.6
%
90.9
%
91.2
%
Gold ounces produced
21,434
26,686
24,614
13,193
20,296
Gold ounces sold
21,183
25,980
24,516
13,273
20,902
Average realized price per gold ounce, gross
$
2,105
$
2,016
$
1,956
$
1,991
$
1,983
Treatment and refining charges per gold ounce
$
52
$
58
$
60
$
142
$
63
Average realized price per gold ounce, net
$
2,053
$
1,958
$
1,896
$
1,849
$
1,920
Metal sales
$
43.5
$
51.2
$
46.5
$
24.6
$
40.2
Costs applicable to sales2
$
39.3
$
37.9
$
38.3
$
39.1
$
37.4
Adjusted CAS per AuOz1
$
1,840
$
1,441
$
1,543
$
2,927
$
1,775
Prepayment, working capital cash flow
$
—
$
10.7
$
(10.7
)
$
9.9
$
(9.9
)
Exploration expense
$
1.5
$
1.7
$
2.9
$
2.3
$
1.0
Cash flow from operating activities
$
1.5
$
16.9
$
(4.4
)
$
(3.7
)
$
(4.8
)
Sustaining capital expenditures (excludes capital lease payments)
$
13.3
$
15.1
$
15.8
$
11.7
$
10.7
Development capital expenditures
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
13.3
$
15.1
$
15.8
$
11.7
$
10.7
Free cash flow1
$
(11.8
)
$
1.8
$
(20.2
)
$
(15.4
)
$
(15.5
)
Operational
Financial
Exploration
Guidance
Wharf, South Dakota
(Dollars in millions, except per ounce amounts)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Ore tons placed
1,251,955
1,290,562
1,254,267
1,041,846
1,156,794
Average gold grade (oz/t)
0.021
0.027
0.023
0.022
0.032
Gold ounces produced
20,395
29,675
22,674
25,683
15,470
Silver ounces produced (000’s)
67
90
69
88
21
Gold ounces sold
20,586
29,537
23,049
25,117
15,645
Silver ounces sold (000’s)
69
86
74
82
24
Average realized price per gold ounce
$
2,026
$
1,982
$
1,966
$
1,946
$
1,938
Metal sales
$
43.3
$
60.7
$
47.1
$
50.8
$
30.9
Costs applicable to sales2
$
25.4
$
32.4
$
31.0
$
27.8
$
23.5
Adjusted CAS per AuOz1
$
1,165
$
997
$
1,267
$
1,035
$
1,466
Prepayment, working capital cash flow
$
—
$
—
$
2.5
$
10.0
$
—
Exploration expense
$
0.1
$
—
$
—
$
—
$
—
Cash flow from operating activities
$
11.1
$
28.9
$
19.5
$
33.8
$
1.9
Sustaining capital expenditures (excludes capital lease payments)
$
0.3
$
1.3
$
0.6
$
0.1
$
—
Development capital expenditures
$
—
$
0.2
$
0.1
$
0.1
$
0.1
Total capital expenditures
$
0.3
$
1.5
$
0.7
$
0.2
$
0.1
Free cash flow1
$
10.8
$
27.4
$
18.8
$
33.6
$
1.8
Operational
Financial
Exploration
Guidance
Exploration
Coeur had up to seven active rigs across all sites during the first quarter, for a total investment of approximately $14 million ($11 million expensed and $3 million capitalized), compared to roughly $14 million ($11 million expensed and $3 million capitalized) in the prior period.
Exploration investment at the high-grade Silvertip polymetallic exploration project in British Columbia, Canada totaled approximately $5 million in the first quarter, compared to $6 million in the prior period.
Following an extensive technical assessment conducted at the start of the first quarter, the geological model has been refined, with considerable effort dedicated to strategizing for the 2024 exploration campaign. This year’s programs at Silvertip will entail a reduction in underground drilling compared to prior years, with the upcoming summer surface programs anticipated to be the most extensive ever undertaken by Coeur.
The underground program is expected to continue systematically tracing mineralization in the Southern Silver Zone and Saddle Zone to the southeast and south, respectively. The surface programs will transition to a multi-pronged approach encompassing larger step outs from known mineralization and district-scale work aimed at identifying additional chimney structures hosting mineralization similar to the Southern Silver Zone. Ultimately, the goal is to identify multiple targets that could lead to resource growth over the next few years to allow a restart decision on this world-class high grade deposit.
The Company expects to invest $11 - $14 million in exploration in 2024 at Silvertip, which excludes $15 - $20 million related to underground mine development and site support costs.
Company-wide, exploration investment in 2024 is projected to comprise $40 - $50 million for scout and expansion drilling (classified as exploration expense) and $7 - $13 million on infill drilling (capitalized exploration). The key priorities this year include: building reserves and extending the life of mine at Kensington; investigating higher grade structures at Rochester; initiating development of a significant pipeline of inferred resources at Palmarejo to potentially facilitate rapid reserve growth over the coming years; augmenting mineral reserves at Wharf; and continuing to increase the mineral resource at Silvertip.
2024 Guidance
Gold and silver production is expected to increase compared to 2023, driven by the commissioning and ramp-up of the Rochester expansion. Overall cost guidance has increased compared to 2023 primarily driven by expected continued inflationary pressures on operating costs.
With the ramp-up of the new Merrill-Crowe facility and three-stage crusher corridor at Rochester expected to be completed during the first half of 2024, the Company has elected to defer providing cost guidance at Rochester for that period. The below cost guidance for Rochester reflects the second half of 2024.
Additionally, 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)
$1,075 - $1,275
$16.50 - $17.50
Second Half 2024 Rochester (co-product)
$1,200 - $1,400
$14.00 - $16.00
Kensington
$1,525 - $1,725
—
Wharf (by-product)
$1,100 - $1,200
—
2024 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures, Sustaining
$116 - $158
Capital Expenditures, Development
$19 - $26
Exploration, Expensed
$40 - $50
Exploration, Capitalized
$7 - $13
General & Administrative Expenses
$36 - $40
Note: The Company’s 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.
Financial Results and Conference Call
Coeur will host a conference call to discuss its first quarter 2024 financial results on May 2, 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, 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 May 9, 2024.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
612 39 52
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 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 and timeline for ramp-up, hedging strategies, anticipated production, costs and expenses and operations at Palmarejo, Rochester, Wharf and Kensington, and expected progress on ESG priorities including achievement of the Company’s greenhouse gas emissions net intensity goal. 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 ramp-up of the Rochester expansion project takes longer than expected or does not achieve 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. 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.
4.
As of March 31, 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.
Average Spot Prices
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Average Gold Spot Price Per Ounce
$
2,070
$
1,971
$
1,928
$
1,976
$
1,890
Average Silver Spot Price Per Ounce
$
23.34
$
23.20
$
23.57
$
24.13
$
22.55
Average Zinc Spot Price Per Pound
$
1.11
$
1.13
$
1.10
$
1.15
$
1.42
Average Lead Spot Price Per Pound
$
0.94
$
0.96
$
0.98
$
0.96
$
0.97
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, 2024
December 31, 2023
ASSETS
In thousands, except share data
CURRENT ASSETS
Cash and cash equivalents
$
67,489
$
61,633
Receivables
36,494
31,035
Inventory
78,230
76,661
Ore on leach pads
83,454
79,400
Prepaid expenses and other
18,943
18,526
284,610
267,255
NON-CURRENT ASSETS
Property, plant and equipment and mining properties, net
1,697,927
1,688,288
Ore on leach pads
43,073
25,987
Restricted assets
8,812
9,115
Receivables
23,140
23,140
Other
62,503
67,063
TOTAL ASSETS
$
2,120,065
$
2,080,848
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable
$
120,137
$
115,110
Accrued liabilities and other
131,845
140,913
Debt
23,242
22,636
Reclamation
10,954
10,954
286,178
289,613
NON-CURRENT LIABILITIES
Debt
562,310
522,674
Reclamation
206,035
203,059
Deferred tax liabilities
16,787
12,360
Other long-term liabilities
30,626
29,239
815,758
767,332
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 600,000,000 shares, 398,583,321 issued and outstanding at March 31, 2024 and 386,282,957 at December 31, 2023
3,986
3,863
Additional paid-in capital
4,170,568
4,139,870
Accumulated other comprehensive income (loss)
(6,147
)
1,331
Accumulated deficit
(3,150,278
)
(3,121,161
)
1,018,129
1,023,903
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,120,065
$
2,080,848
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended March 31,
2024
2023
In thousands, except share data
Revenue
$
213,060
$
187,298
COSTS AND EXPENSES
Costs applicable to sales(1)
145,997
153,056
Amortization
27,297
22,708
General and administrative
14,404
12,083
Exploration
10,491
4,650
Pre-development, reclamation, and other
18,228
10,890
Total costs and expenses
216,417
203,387
OTHER INCOME (EXPENSE), NET
Gain on debt extinguishment
438
—
Fair value adjustments, net
—
10,561
Interest expense, net of capitalized interest
(12,947
)
(7,389
)
Other, net
2,773
(961
)
Total other income (expense), net
(9,736
)
2,211
Income (loss) before income and mining taxes
(13,093
)
(13,878
)
Income and mining tax (expense) benefit
(16,024
)
(10,708
)
NET INCOME (LOSS)
$
(29,117
)
$
(24,586
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative contracts designated as cash flow hedges
(7,625
)
(12,928
)
Reclassification adjustments for realized (gain) loss on cash flow hedges
147
(4,134
)
Other comprehensive income (loss)
(7,478
)
(17,062
)
COMPREHENSIVE INCOME (LOSS)
$
(36,595
)
$
(41,648
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
(0.08
)
$
(0.08
)
Diluted
$
(0.08
)
$
(0.08
)
(1) Excludes amortization.
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended March 31,
2024
2023
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(29,117
)
$
(24,586
)
Adjustments:
Amortization
27,297
22,708
Accretion
4,076
3,993
Deferred taxes
4,429
6,451
Gain on debt extinguishment
(438
)
—
Fair value adjustments, net
—
(10,561
)
Stock-based compensation
4,248
3,151
Loss on the sale of assets
—
(9
)
Write-downs
3,235
13,113
Deferred revenue recognition
(55,159
)
(10,115
)
Other
10,822
2,078
Changes in operating assets and liabilities:
Receivables
(5,316
)
3,050
Prepaid expenses and other current assets
(639
)
(496
)
Inventory and ore on leach pads
(19,694
)
(17,635
)
Accounts payable and accrued liabilities
40,385
(26,145
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
(15,871
)
(35,003
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(42,083
)
(74,048
)
Proceeds from the sale of assets
24
—
Sale of investments
—
39,775
Proceeds from notes receivable
—
5,000
Other
(67
)
(44
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
(42,126
)
(29,317
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
22,823
98,429
Issuance of notes and bank borrowings, net of issuance costs
135,000
75,000
Payments on debt, finance leases, and associated costs
(92,225
)
(101,897
)
Other
(1,779
)
(2,097
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
63,819
69,435
Effect of exchange rate changes on cash and cash equivalents
40
399
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
5,862
5,514
Cash, cash equivalents and restricted cash at beginning of period
63,378
63,169
Cash, cash equivalents and restricted cash at end of period
$
69,240
$
68,683
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
LTM 1Q 2024
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Net income (loss)
$
(108,143
)
$
(29,117
)
$
(25,505
)
$
(21,109
)
$
(32,412
)
$
(24,586
)
Interest expense, net of capitalized interest
34,657
12,947
7,396
7,402
6,912
7,389
Income tax provision (benefit)
40,472
16,024
8,485
6,097
9,866
10,708
Amortization
104,411
27,297
34,635
22,884
19,595
22,708
EBITDA
71,397
27,151
25,011
15,274
3,961
16,219
Fair value adjustments, net
7,177
—
1,245
2,010
3,922
(10,561
)
Foreign exchange (gain) loss
(330
)
365
353
(421
)
(627
)
1,154
Asset retirement obligation accretion
16,488
4,076
4,186
4,153
4,073
3,993
Inventory adjustments and write-downs
33,189
4,188
18,464
8,934
1,603
14,187
(Gain) loss on sale of assets and securities
28,724
3,536
12,547
19
12,622
9
RMC bankruptcy distribution
(1,516
)
—
—
—
(1,516
)
—
(Gain) loss on debt extinguishment
(3,875
)
(438
)
298
(774
)
(2,961
)
—
Other adjustments
10,260
5,461
2,188
1,453
1,158
126
Adjusted EBITDA
$
161,514
$
44,339
$
64,292
$
30,648
$
22,235
$
25,127
Revenue
$
846,968
$
213,060
$
262,090
$
194,583
$
177,235
$
187,298
Adjusted EBITDA Margin
19
%
21
%
25
%
16
%
13
%
13
%
Adjusted Net Income (Loss) Reconciliation
(Dollars in thousands except per share amounts)
1Q 2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Net income (loss)
$
(29,117
)
$
(25,505
)
$
(21,109
)
$
(32,412
)
$
(24,586
)
Fair value adjustments, net
—
1,245
2,010
3,922
(10,561
)
Foreign exchange loss (gain)
484
(156
)
5
154
1,991
(Gain) loss on sale of assets and securities
3,536
12,547
19
12,622
9
RMC bankruptcy distribution
—
—
—
(1,516
)
—
(Gain) loss on debt extinguishment
(438
)
298
(774
)
(2,961
)
—
Other adjustments
5,461
2,188
1,453
1,158
126
Tax effect of adjustments
1,053
3,165
(223
)
(1,120
)
(37
)
Adjusted net income (loss)
$
(19,021
)
$
(6,218
)
$
(18,619
)
$
(20,153
)
$
(33,058
)
Adjusted net income (loss) per share - Basic
$
(0.05
)
$
(0.02
)
$
(0.05
)
$
(0.06
)
$
(0.11
)
Adjusted net income (loss) per share - Diluted
$
(0.05
)
$
(0.02
)
$
(0.05
)
$
(0.06
)
$
(0.11
)
Consolidated Free Cash Flow Reconciliation
(Dollars in thousands)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Cash flow from operations
$
(15,871
)
$
65,277
$
(2,383
)
$
39,397
$
(35,003
)
Capital expenditures
42,083
92,715
112,273
85,581
74,048
Free cash flow
$
(57,954
)
$
(27,438
)
$
(114,656
)
$
(46,184
)
$
(109,051
)
Consolidated Operating Cash Flow
Before Changes in Working Capital Reconciliation
(Dollars in thousands)
1Q 2024
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Cash provided by (used in) operating activities
$
(15,871
)
$
65,277
$
(2,383
)
$
39,397
$
(35,003
)
Changes in operating assets and liabilities:
Receivables
5,316
726
478
913
(3,050
)
Prepaid expenses and other
639
1,225
3,000
(4,260
)
496
Inventories
19,694
(7,401
)
18,620
18,738
17,635
Accounts payable and accrued liabilities
(40,385
)
(14,490
)
(5,528
)
(61,708
)
26,145
Operating cash flow before changes in working capital
$
(30,607
)
$
45,337
$
14,187
$
(6,920
)
$
6,223
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 Three Months Ended March 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)
$
57,984
$
48,083
$
43,226
$
24,953
$
1,221
$
175,467
Amortization
(8,719
)
(5,218
)
(5,844
)
(1,409
)
(1,221
)
(22,411
)
Costs applicable to sales
$
49,265
$
42,865
$
37,382
$
23,544
$
—
$
153,056
Inventory Adjustments
(201
)
(13,474
)
(207
)
(38
)
—
(13,920
)
By-product credit
—
—
(74
)
(570
)
(644
)
Adjusted costs applicable to sales
$
49,064
$
29,391
$
37,101
$
22,936
$
—
$
138,492
Metal Sales
Gold ounces
25,970
8,349
20,902
15,645
—
70,866
Silver ounces
1,795,159
769,804
—
23,956
—
2,588,919
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
49
%
47
%
100
%
100
%
Silver
51
%
53
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to sales
Gold ($/oz)
$
926
$
1,655
$
1,775
$
1,466
$
1,381
Silver ($/oz)
$
13.94
$
20.24
$
—
$
15.83
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs Applicable to Sales for 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240430044440/en/
For Additional Information Coeur Mining, Inc. 200 S. Wacker Drive, Suite 2100 Chicago, IL 60606 Attention: Jeff Wilhoit, Director, Investor Relations Phone: (312) 489-5800 www.coeur.com
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