Coeur Reports Third Quarter 2024 Results
Double digit production increases and cost reductions along with higher prices led to $49 million of net income, $126 million of adjusted EBITDA1, and strong free cash flow
CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported third quarter 2024 financial results, including revenue of $313 million and cash flow from operating activities of $111 million. The Company reported GAAP net income from continuing operations of $49 million, or $0.12 per share. On an adjusted basis1, Coeur reported EBITDA of $126 million, cash flow from operating activities before changes in working capital of $87 million and net income from continuing operations of $47 million, or $0.12 per share.
Key Highlights
- Strong production increases and lower costs across the portfolio – Higher production at all four operations drove a 21% increase in gold production and 15% increase in silver production, totaling 94,993 and 3.0 million ounces of gold and silver, respectively. Costs applicable to sales per gold and silver ounce both declined 12% compared to the prior quarter, leading to margins more than double the prior period. Based on strong year-to-date production and cost performance, the Company reaffirmed its full-year guidance ranges
- Robust quarterly financial performance driven by higher production and metals prices – Revenue of $313 million and adjusted EBITDA1 of $126 million increased 41% and 140% quarter-over-quarter, respectively. Operating cash flow totaled $111 million and free cash flow reached $69 million during the quarter, their highest levels in over a decade. Net income was $49 million and Adjusted EBITDA1 over the last twelve months (“LTM”) increased 2.5x to $287 million compared to a year ago
- Rochester remains on-track to achieve year-end throughput and production guidance – The recently expanded Rochester silver and gold operation placed approximately 7.1 million tons under leach during the quarter leading to production of 1.2 million ounces of silver and 9,690 ounces of gold, representing quarter-over-quarter increases of 19% and 21%, respectively. The Company has reaffirmed full-year Rochester production guidance ranges and expects approximately 7.0 – 8.0 million tons to be placed under leach in the fourth quarter
- Announced acquisition of SilverCrest to create leading global silver company – On October 4, 2024, Coeur announced an agreement to acquire SilverCrest Metals Inc. (“SilverCrest”) in an all-stock transaction with an implied value of approximately $1.7 billion as of the announcement date. The acquisition is anticipated to close in the first quarter of 2025 and is expected to materially enhance the Company’s cost and cash flow profile and immediately accelerate the Company’s balance sheet de-leveraging initiative
- Debt reduction initiative underway – During the third quarter, the Company reduced its outstanding revolving credit facility (“RCF”)2 balance by $50 million to $225 million, leading to total liquidity of $222 million, including $77 million of cash, and a net debt to EBITDA ratio below 2.0x for the first time in three years
“Our strong third quarter operational and financial results signal the beginning of what we expect to be a new chapter of consistent free cash flow for Coeur,” said Mitchell J. Krebs, Chairman, President and Chief Executive Officer. “Although higher prices helped magnify our robust results, the team’s continued focus on operational excellence drove costs down, leading to significantly higher margins. Rochester continues to gather steam during the second half and remains on-track to deliver a step-change in production and cash flow during the remainder of the year and be well-positioned to deliver a record breaking 2025.
“Furthermore, the recently announced acquisition of SilverCrest and its high-grade, low-cost Las Chispas operation, coupled with Rochester’s post-expansion profile, positions Coeur as a leading silver company in terms of production, market capitalization and liquidity, balance sheet flexibility, and cash flow profile at a time when silver’s outlook continues to strengthen.”
Financial and Operating Highlights (Unaudited)
|
(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics) |
|
3Q 2024 |
|
2Q 2024 |
|
|
1Q 2024 |
|
|
4Q 2023 |
|
|
3Q 2023 |
|
|
|
Gold Sales |
$ |
223.8 |
$ |
154.1 |
|
$ |
151.8 |
|
$ |
187.7 |
|
$ |
139.5 |
|
|
|
Silver Sales |
$ |
89.7 |
$ |
67.9 |
|
$ |
61.3 |
|
$ |
74.3 |
|
$ |
55.1 |
|
|
|
Consolidated Revenue |
$ |
313.5 |
$ |
222.0 |
|
$ |
213.1 |
|
$ |
262.1 |
|
$ |
194.6 |
|
|
|
Costs Applicable to Sales3 |
$ |
156.7 |
$ |
144.7 |
|
$ |
146.0 |
|
$ |
192.3 |
|
$ |
147.9 |
|
|
|
General and Administrative Expenses |
$ |
11.0 |
$ |
11.2 |
|
$ |
14.4 |
|
$ |
10.2 |
|
$ |
9.5 |
|
|
|
Net Income (Loss) |
$ |
48.7 |
$ |
1.4 |
|
$ |
(29.1 |
) |
$ |
(25.5 |
) |
$ |
(21.1 |
) |
|
|
Net Income (Loss) Per Share |
$ |
0.12 |
$ |
0.00 |
|
$ |
(0.08 |
) |
$ |
(0.07 |
) |
$ |
(0.06 |
) |
|
|
Adjusted Net Income (Loss)1 |
$ |
47.2 |
$ |
(3.4 |
) |
$ |
(19.0 |
) |
$ |
(6.2 |
) |
$ |
(18.6 |
) |
|
|
Adjusted Net Income (Loss)1 Per Share |
$ |
0.12 |
$ |
(0.01 |
) |
$ |
(0.05 |
) |
$ |
(0.02 |
) |
$ |
(0.05 |
) |
|
|
Weighted Average Shares Outstanding |
|
400.8 |
|
399.9 |
|
|
385.0 |
|
|
380.5 |
|
|
356.7 |
|
|
|
EBITDA1 |
$ |
121.1 |
$ |
49.7 |
|
$ |
27.2 |
|
$ |
25.0 |
|
$ |
15.3 |
|
|
|
Adjusted EBITDA1 |
$ |
126.0 |
$ |
52.4 |
|
$ |
44.3 |
|
$ |
64.3 |
|
$ |
30.6 |
|
|
|
Cash Flow from Operating Activities |
$ |
111.1 |
$ |
15.2 |
|
$ |
(15.9 |
) |
$ |
65.3 |
|
$ |
(2.4 |
) |
|
|
Capital Expenditures |
$ |
42.0 |
$ |
51.4 |
|
$ |
42.1 |
|
$ |
92.7 |
|
$ |
112.3 |
|
|
|
Free Cash Flow1 |
$ |
69.1 |
$ |
(36.2 |
) |
$ |
(58.0 |
) |
$ |
(27.4 |
) |
$ |
(114.7 |
) |
|
|
Cash, Equivalents & Short-Term Investments |
$ |
76.9 |
$ |
74.1 |
|
$ |
67.5 |
|
$ |
61.6 |
|
$ |
53.2 |
|
|
|
Total Debt4 |
$ |
605.2 |
$ |
629.3 |
|
$ |
585.6 |
|
$ |
545.3 |
|
$ |
512.2 |
|
|
|
Average Realized Price Per Ounce – Gold |
$ |
2,309 |
$ |
2,003 |
|
$ |
1,864 |
|
$ |
1,886 |
|
$ |
1,788 |
|
|
|
Average Realized Price Per Ounce – Silver |
$ |
29.86 |
$ |
26.20 |
|
$ |
23.57 |
|
$ |
24.79 |
|
$ |
24.88 |
|
|
|
Gold Ounces Produced |
|
94,993 |
|
78,696 |
|
|
80,744 |
|
|
101,609 |
|
|
78,617 |
|
|
|
Silver Ounces Produced |
|
3.0 |
|
2.6 |
|
|
2.6 |
|
|
3.1 |
|
|
2.3 |
|
|
|
Gold Ounces Sold |
|
96,913 |
|
76,932 |
|
|
81,416 |
|
|
99,540 |
|
|
78,015 |
|
|
|
Silver Ounces Sold |
|
3.0 |
|
2.6 |
|
|
2.6 |
|
|
3.0 |
|
|
2.2 |
|
|
|
Adjusted CAS per AuOz1 |
$ |
1,113 |
$ |
1,264 |
|
$ |
1,267 |
|
$ |
1,225 |
|
$ |
1,273 |
|
|
|
Adjusted CAS per AgOz1 |
$ |
15.67 |
$ |
17.71 |
|
$ |
14.63 |
|
$ |
17.03 |
|
$ |
17.85 |
|
Financial Results
Third quarter 2024 revenue totaled $313 million compared to $222 million in the prior period and $195 million in the third quarter of 2023. The Company produced 94,993 and 3.0 million ounces of gold and silver, respectively, during the quarter. Metal sales for the quarter totaled 96,913 ounces of gold and 3.0 million ounces of silver. Average realized gold and silver prices for the quarter were $2,309 and $29.86 per ounce, respectively, compared to $2,003 and $26.20 per ounce in the prior period and $1,788 and $24.88 per ounce in the third quarter of 2023.
Gold and silver sales represented 71% and 29% of quarterly revenue, respectively, compared to 69% and 31% in the prior period. The Company’s U.S. operations accounted for approximately 65% of third quarter revenue compared to 63% in the second quarter of 2024.
Adjusted Costs applicable to sales per ounce1 of gold and silver each decreased 12% quarter-over-quarter, largely due to higher production in the period. General and administrative expenses remained consistent quarter-over-quarter at $11 million.
Coeur invested approximately $25 million ($20 million expensed and $5 million capitalized) in exploration during the quarter, compared to approximately $18 million ($13 million expensed and $5 million capitalized) in the prior period. See the “Operations” and “Exploration” sections for additional detail on the Company’s exploration activities.
The Company recorded income tax expense of approximately $26 million during the third quarter. Cash income and mining taxes paid during the period totaled approximately $9 million.
Quarterly operating cash flow totaled $111 million compared to $15 million in the prior period, mainly driven by stronger operating performance at each site and higher metals prices.
Third quarter capital expenditures were $42 million compared to $51 million in the prior period, reflecting timing of payments related to the Rochester expansion in the prior period. Sustaining and development capital expenditures accounted for approximately $35 million and $7 million, or 84% and 16%, respectively, of Coeur’s total capital investment during the quarter.
SilverCrest Acquisition Transaction
On October 4, 2024, Coeur announced it had entered into a definitive agreement (the “Agreement”) whereby a wholly-owned subsidiary of Coeur will acquire all of the issued and outstanding shares of SilverCrest pursuant to a British Columbia court-approved plan of arrangement (the “Transaction”). Subject to satisfaction of closing conditions, including requisite approvals by the stockholders of Coeur, the shareholders of SilverCrest and applicable regulators, the acquisition is expected to close late in the first quarter of 2025.
Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63% and 37% of the outstanding common stock of the combined company, respectively.
Operations
Third quarter 2024 highlights for each of the Company’s operations are provided below.
Palmarejo, Mexico
|
(Dollars in millions, except per ounce amounts) |
|
3Q 2024 |
|
|
2Q 2024 |
|
|
1Q 2024 |
|
|
4Q 2023 |
|
|
3Q 2023 |
|
|
Tons milled |
|
413,463 |
|
|
429,561 |
|
|
500,747 |
|
|
500,509 |
|
|
501,722 |
|
|
Average gold grade (oz/t) |
|
0.070 |
|
|
0.066 |
|
|
0.070 |
|
|
0.060 |
|
|
0.055 |
|
|
Average silver grade (oz/t) |
|
5.15 |
|
|
4.49 |
|
|
4.34 |
|
|
4.08 |
|
|
3.67 |
|
|
Average recovery rate – Au |
|
94.8 |
% |
|
89.9 |
% |
|
95.2 |
% |
|
89.4 |
% |
|
97.6 |
% |
|
Average recovery rate – Ag |
|
85.6 |
% |
|
82.8 |
% |
|
83.7 |
% |
|
79.4 |
% |
|
86.9 |
% |
|
Gold ounces produced |
|
27,549 |
|
|
25,467 |
|
|
33,160 |
|
|
25,401 |
|
|
26,870 |
|
|
Silver ounces produced (000’s) |
|
1,823 |
|
|
1,596 |
|
|
1,818 |
|
|
1,622 |
|
|
1,601 |
|
|
Gold ounces sold |
|
28,655 |
|
|
24,313 |
|
|
33,462 |
|
|
24,848 |
|
|
26,018 |
|
|
Silver ounces sold (000’s) |
|
1,861 |
|
|
1,542 |
|
|
1,796 |
|
|
1,644 |
|
|
1,534 |
|
|
Average realized price per gold ounce |
$ |
1,922 |
|
$ |
1,744 |
|
$ |
1,611 |
|
$ |
1,615 |
|
$ |
1,499 |
|
|
Average realized price per silver ounce |
$ |
29.71 |
|
$ |
26.48 |
|
$ |
23.64 |
|
$ |
24.78 |
|
$ |
24.96 |
|
|
Metal sales |
$ |
110.4 |
|
$ |
83.2 |
|
$ |
96.4 |
|
$ |
80.9 |
|
$ |
77.3 |
|
|
Costs applicable to sales3 |
$ |
47.5 |
|
$ |
48.2 |
|
$ |
54.3 |
|
$ |
50.3 |
|
$ |
48.1 |
|
|
Adjusted CAS per AuOz1 |
$ |
818 |
|
$ |
1,006 |
|
$ |
901 |
|
$ |
1,010 |
|
$ |
917 |
|
|
Adjusted CAS per AgOz1 |
$ |
12.60 |
|
$ |
15.24 |
|
$ |
13.18 |
|
$ |
15.26 |
|
$ |
15.56 |
|
|
Exploration expense |
$ |
4.3 |
|
$ |
2.6 |
|
$ |
2.5 |
|
$ |
2.7 |
|
$ |
2.2 |
|
|
Cash flow from operating activities |
$ |
55.6 |
|
$ |
23.7 |
|
$ |
25.6 |
|
$ |
24.1 |
|
$ |
22.6 |
|
|
Sustaining capital expenditures (excludes capital lease payments) |
$ |
4.0 |
|
$ |
3.1 |
|
$ |
4.7 |
|
$ |
6.9 |
|
$ |
8.4 |
|
|
Development capital expenditures |
$ |
4.0 |
|
$ |
2.8 |
|
$ |
2.1 |
|
$ |
2.0 |
|
$ |
2.4 |
|
|
Total capital expenditures |
$ |
8.0 |
|
$ |
5.9 |
|
$ |
6.8 |
|
$ |
8.9 |
|
$ |
10.8 |
|
|
Free cash flow1 |
$ |
47.6 |
|
$ |
17.8 |
|
$ |
18.8 |
|
$ |
15.2 |
|
$ |
11.8 |
|
Operational
- Third quarter gold and silver production totaled 27,549 and 1.8 million ounces, respectively, compared to 25,467 and 1.6 million ounces in the prior period and 26,870 and 1.6 million ounces in the third quarter of 2023
- Higher production during the quarter was primarily driven by higher average grades and recoveries, partially offset by lower tons milled
Financial
- Adjusted CAS1 for gold and silver on a co-product basis decreased 19% and 17% quarter-over-quarter to $818 and $12.60 per ounce, respectively, driven by higher metal sales
- Capital expenditures increased 36% quarter-over-quarter to $8 million, reflecting higher underground development primarily focused on Hidalgo, which is expected to create additional operating flexibility by year-end
- Free cash flow1 in the third quarter totaled $48 million compared to $18 million in the prior period
Exploration
- Exploration investment for the third quarter totaled approximately $4 million (substantially all expensed) compared to roughly $3 million (substantially all expensed) in the prior period
- Up to seven rigs were active during the quarter, mainly focused on the Zapata – Guadalupe corridor, expansion drilling along the western extension of the Hidalgo corridor (La Libertad), and targets within Hidalgo and multiple structures parallel to Independencia
- Drilling along strike of La Libertad continues to encounter favorable host rocks and hydrothermal quartz-calcite vein and breccia splay zones with drilling showing potential for future resource expansion
- Exploration and prospecting continue immediately east of the current operation and outside of the area subject to the gold stream. Mapping of recently acquired claims from Fresnillo located immediately southeast of existing operations has identified brecciated and silicified veins that are believed to be extensions and parallel veins to those currently being mined
- Geological mapping continues to the east of Palmarejo in the Guazapares area around the San Miguel and San Antonio prospects and has successfully identified new vein extensions and parallel structures, signaling promising prospects for future exploration. Scout drilling commenced on one target in this district during the quarter
Other
- Approximately 30% of Palmarejo’s gold sales in the third quarter were sold under the gold stream agreement at a price of $800 per ounce, totaling 8,720 ounces. The Company anticipates approximately 30% – 40% of Palmarejo’s 2024 gold sales will be sold under the gold stream agreement
Guidance
- Full-year 2024 production is expected to be 95,000 – 103,000 ounces of gold and 5.9 – 6.7 million ounces of silver
- CAS1 in 2024 are expected to be $950 – $1,150 per gold ounce and $15.50 – $16.50 per silver ounce
- Capital expenditures are expected to be $27 – $37 million, consisting primarily of sustaining capital and underground development
Rochester, Nevada
|
(Dollars in millions, except per ounce amounts) |
|
3Q 2024 |
|
|
2Q 2024 |
|
|
1Q 2024 |
|
|
4Q 2023 |
|
|
3Q 2023 |
|
|
Ore tons placed |
|
7,064,623 |
|
|
5,102,800 |
|
|
3,135,571 |
|
|
2,754,058 |
|
|
3,487,173 |
|
|
Average silver grade (oz/t) |
|
0.57 |
|
|
0.59 |
|
|
0.52 |
|
|
0.44 |
|
|
0.50 |
|
|
Average gold grade (oz/t) |
|
0.002 |
|
|
0.002 |
|
|
0.002 |
|
|
0.003 |
|
|
0.003 |
|
|
Silver ounces produced (000’s) |
|
1,155 |
|
|
973 |
|
|
699 |
|
|
1,340 |
|
|
608 |
|
|
Gold ounces produced |
|
9,690 |
|
|
8,006 |
|
|
5,755 |
|
|
19,847 |
|
|
4,459 |
|
|
Silver ounces sold (000’s) |
|
1,098 |
|
|
985 |
|
|
735 |
|
|
1,269 |
|
|
606 |
|
|
Gold ounces sold |
|
9,186 |
|
|
8,150 |
|
|
6,185 |
|
|
19,175 |
|
|
4,432 |
|
|
Average realized price per silver ounce |
$ |
30.13 |
|
$ |
25.78 |
|
$ |
23.32 |
|
$ |
24.59 |
|
$ |
24.63 |
|
|
Average realized price per gold ounce |
$ |
2,492 |
|
$ |
2,131 |
|
$ |
2,050 |
|
$ |
1,991 |
|
$ |
1,967 |
|
|
Metal sales |
$ |
56.0 |
|
$ |
42.8 |
|
$ |
29.8 |
|
$ |
69.4 |
|
$ |
23.6 |
|
|
Costs applicable to sales3 |
$ |
39.4 |
|
$ |
36.7 |
|
$ |
27.0 |
|
$ |
71.8 |
|
$ |
30.5 |
|
|
Adjusted CAS per AgOz1 |
$ |
20.88 |
|
$ |
21.58 |
|
$ |
18.17 |
|
$ |
19.33 |
|
$ |
23.64 |
|
|
Adjusted CAS per AuOz1 |
$ |
1,735 |
|
$ |
1,813 |
|
$ |
1,630 |
|
$ |
1,564 |
|
$ |
1,899 |
|
|
Prepayment, working capital cash flow |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
7.5 |
|
|
Exploration expense |
$ |
1.0 |
|
$ |
1.0 |
|
$ |
0.4 |
|
$ |
0.2 |
|
$ |
0.3 |
|
|
Cash flow from operating activities |
$ |
3.2 |
|
$ |
(5.9 |
) |
$ |
(18.7 |
) |
$ |
11.6 |
|
$ |
(17.3 |
) |
|
Sustaining capital expenditures (excludes capital lease payments) |
$ |
7.0 |
|
$ |
9.9 |
|
$ |
15.3 |
|
$ |
13.8 |
|
$ |
7.7 |
|
|
Development capital expenditures |
$ |
3.1 |
|
$ |
17.6 |
|
$ |
5.9 |
|
$ |
51.7 |
|
$ |
76.7 |
|
|
Total capital expenditures |
$ |
10.1 |
|
$ |
27.5 |
|
$ |
21.2 |
|
$ |
65.5 |
|
$ |
84.4 |
|
|
Free cash flow1 |
$ |
(6.9 |
) |
$ |
(33.4 |
) |
$ |
(39.9 |
) |
$ |
(53.9 |
) |
$ |
(101.7 |
) |
Operational
- Silver and gold production in the third quarter totaled 1.2 million and 9,690 ounces, respectively, compared to 973,057 and 8,006 ounces in the prior period and 607,735 and 4,459 ounces in the third quarter of 2023
- Ore tons placed increased 38% quarter-over-quarter to 7.1 million tons, including approximately 6.4 million tons through the new crushing circuit and roughly 650,000 tons of high-grade backfill direct-to-pad material placed on the stage six leach pad. The Company expects to place approximately 7.0 – 8.0 million tons on the stage six leach pad in the fourth quarter
Financial
- Third quarter adjusted CAS1 for silver and gold on a co-product basis totaled $20.88 and $1,735 per ounce, respectively, mainly driven by higher metals sales
- Capital expenditures decreased 63% quarter-over-quarter to $10 million, reflecting lower spend after an earlier-than-expected conclusion of final negotiations with a key construction contractor and corresponding earlier payment of costs in the previous quarter
- Free cash flow1 in the third quarter totaled $(7) million compared to $(33) million in the prior period
Exploration
- Exploration investment in the third quarter totaled approximately $3 million ($1 million expensed and $2 million capitalized) compared to roughly $2 million ($1 million expensed and $1 million capitalized) in the prior quarter
- Near-term exploration objectives at Rochester aim to augment the grade profile of the current 16-year reserve-only mine life with the goal of enhancing cash flow
- Two diamond drill rigs were active at East Rochester during the quarter targeting the Wedge and Black Ridge Fault areas located immediately east of the Rochester pit. The holes are testing for extensions to mineralization and for higher grades located along structures
- Other activities during the quarter included re-logging, reinterpreting and geological modeling of core and reverse circulation chips from legacy drillholes, with new geology models for Nevada Packard and Lincoln Hill underway. Additionally, a geophysical magnetics survey was flown over the land package to aid district exploration
- Drilling at Nevada Packard is planned for the fourth quarter to confirm the new model and establish controls on higher-grade mineralization that is expected to guide further exploration
Guidance
- Full-year 2024 production is expected to be 4.8 – 6.6 million ounces of silver and 37,000 – 50,000 ounces of gold
- CAS1 for the second half of 2024 are expected to be $18.00 – $20.00 per silver ounce and $1,500 – $1,700 per gold ounce
- Capital expenditures are expected to be $61 – $79 million, which reflects the ramp-up of the completed Rochester expansion as well as sustaining capital and an earlier-than-expected conclusion to certain final negotiations and payments related to the Rochester expansion that were originally estimated to take place in 2025
Kensington, Alaska
|
(Dollars in millions, except per ounce amounts) |
|
3Q 2024 |
|
|
2Q 2024 |
|
|
1Q 2024 |
|
|
4Q 2023 |
|
|
3Q 2023 |
|
|
Tons milled |
|
165,916 |
|
|
182,043 |
|
|
167,439 |
|
|
177,382 |
|
|
167,950 |
|
|
Average gold grade (oz/t) |
|
0.16 |
|
|
0.14 |
|
|
0.14 |
|
|
0.16 |
|
|
0.16 |
|
|
Average recovery rate |
|
90.4 |
% |
|
92.3 |
% |
|
90.8 |
% |
|
92.3 |
% |
|
92.6 |
% |
|
Gold ounces produced |
|
24,104 |
|
|
23,202 |
|
|
21,434 |
|
|
26,686 |
|
|
24,614 |
|
|
Gold ounces sold |
|
24,800 |
|
|
23,539 |
|
|
21,183 |
|
|
25,980 |
|
|
24,516 |
|
|
Average realized price per gold ounce, gross |
$ |
2,563 |
|
$ |
2,223 |
|
$ |
2,105 |
|
$ |
2,016 |
|
$ |
1,956 |
|
|
Treatment and refining charges per gold ounce |
$ |
56 |
|
$ |
52 |
|
$ |
52 |
|
$ |
58 |
|
$ |
60 |
|
|
Average realized price per gold ounce, net |
$ |
2,507 |
|
$ |
2,171 |
|
$ |
2,053 |
|
$ |
1,958 |
|
$ |
1,896 |
|
|
Metal sales |
$ |
62.2 |
|
$ |
51.1 |
|
$ |
43.5 |
|
$ |
51.2 |
|
$ |
46.5 |
|
|
Costs applicable to sales3 |
$ |
38.1 |
|
$ |
40.7 |
|
$ |
39.3 |
|
$ |
37.9 |
|
$ |
38.3 |
|
|
Adjusted CAS per AuOz1 |
$ |
1,539 |
|
$ |
1,734 |
|
$ |
1,840 |
|
$ |
1,441 |
|
$ |
1,543 |
|
|
Prepayment, working capital cash flow |
$ |
11.8 |
|
$ |
(11.8 |
) |
$ |
— |
|
$ |
10.7 |
|
$ |
(10.7 |
) |
|
Exploration expense |
$ |
2.0 |
|
$ |
1.3 |
|
$ |
1.5 |
|
$ |
1.7 |
|
$ |
2.9 |
|
|
Cash flow from operating activities |
$ |
38.1 |
|
$ |
(7.2 |
) |
$ |
1.5 |
|
$ |
16.9 |
|
$ |
(4.4 |
) |
|
Sustaining capital expenditures (excludes capital lease payments) |
$ |
20.0 |
|
$ |
16.5 |
|
$ |
13.3 |
|
$ |
15.1 |
|
$ |
15.8 |
|
|
Development capital expenditures |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Total capital expenditures |
$ |
20.0 |
|
$ |
16.5 |
|
$ |
13.3 |
|
$ |
15.1 |
|
$ |
15.8 |
|
|
Free cash flow1 |
$ |
18.1 |
|
$ |
(23.7 |
) |
$ |
(11.8 |
) |
$ |
1.8 |
|
$ |
(20.2 |
) |
Operational
- Gold production in the third quarter totaled 24,104 ounces compared to 23,202 ounces in the prior period and 24,614 ounces in the third quarter of 2023
- Higher production during the quarter was driven by higher average gold grade, partially offset by lower tons milled and average recoveries
Financial
- Third quarter adjusted CAS1 totaled $1,539 per ounce compared to $1,734 per ounce in the prior period, reflecting increased metal sales
- Capital expenditures increased 21% quarter-over-quarter to $20 million. Capital expenditures during the quarter continued to focus on capital development to support the ongoing multi-year development and exploration program aimed at extending mine life
- Free cash flow1 in the third quarter totaled $18 million compared to $(24) million in the prior period
Exploration
- Exploration investment in the quarter totaled approximately $5 million ($2 million expensed and $3 million capitalized), compared to $6 million ($1 million expensed and $4 million capitalized) in the prior period
- Up to three rigs were active at Kensington, with drilling focused on both infill and extension of the current resource boundaries, with some drilling on scout targets in Lower Kensington east of current deposits. Additionally, an airborne geophysical survey was flown during the quarter
- Geological modelling and interpretation of Lower Kensington, Upper Kensington and Elmira continued during the quarter to better understand the spectrum of vein types throughout the zones to improve modeling and mining
- At Elmira Main and Elmira South, expansion and infill drilling activities continued. The first detailed structural model has been completed and is being incorporated into exploration targeting and resource modeling
- Overall drilling at Kensington continues to demonstrate meaningful progress toward building a reserve base to support mine life for at least the next five years
Guidance
- Full-year 2024 production is expected to be 92,000 – 106,000 gold ounces
- CAS1 in 2024 are expected to be $1,525 – $1,725 per gold ounce
- Capital expenditures are expected to be $63 – $68 million, of which approximately $33 – $39 million and $6 – $13 million is related to accelerated rates of underground development and infill drilling, respectively, as part of the Company’s multi-year exploration program
Wharf, South Dakota
|
(Dollars in millions, except per ounce amounts) |
|
3Q24 |
|
2Q 2024 |
|
1Q 2024 |
|
4Q 2023 |
|
3Q 2023 |
|
|
Ore tons placed |
|
1,424,649 |
|
1,162,437 |
|
1,251,955 |
|
1,290,562 |
|
1,254,267 |
|
|
Average gold grade (oz/t) |
|
0.046 |
|
0.032 |
|
0.021 |
|
0.027 |
|
0.023 |
|
|
Gold ounces produced |
|
33,650 |
|
22,021 |
|
20,395 |
|
29,675 |
|
22,674 |
|
|
Silver ounces produced (000’s) |
|
42 |
|
69 |
|
67 |
|
90 |
|
69 |
|
|
Gold ounces sold |
|
34,272 |
|
20,930 |
|
20,586 |
|
29,537 |
|
23,049 |
|
|
Silver ounces sold (000’s) |
|
45 |
|
65 |
|
69 |
|
86 |
|
74 |
|
|
Average realized price per gold ounce |
$ |
2,440 |
$ |
2,064 |
$ |
2,026 |
$ |
1,982 |
$ |
1,966 |
|
|
Metal sales |
$ |
85.0 |
$ |
45.0 |
$ |
43.3 |
$ |
60.7 |
$ |
47.1 |
|
|
Costs applicable to sales3 |
$ |
31.8 |
$ |
19.1 |
$ |
25.4 |
$ |
32.4 |
$ |
31.0 |
|
|
Adjusted CAS per AuOz1 |
$ |
885 |
$ |
822 |
$ |
1,165 |
$ |
997 |
$ |
1,267 |
|
|
Prepayment, working capital cash flow |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
2.5 |
|
|
Exploration expense |
$ |
2.3 |
$ |
1.1 |
$ |
0.1 |
$ |
— |
$ |
— |
|
|
Cash flow from operating activities |
$ |
51.6 |
$ |
17.0 |
$ |
11.1 |
$ |
28.9 |
$ |
19.5 |
|
|
Sustaining capital expenditures (excludes capital lease payments) |
$ |
2.8 |
$ |
1.2 |
$ |
0.3 |
$ |
1.3 |
$ |
0.6 |
|
|
Development capital expenditures |
$ |
— |
$ |
— |
$ |
— |
$ |
0.2 |
$ |
0.1 |
|
|
Total capital expenditures |
$ |
2.8 |
$ |
1.2 |
$ |
0.3 |
$ |
1.5 |
$ |
0.7 |
|
|
Free cash flow1 |
$ |
48.8 |
$ |
15.8 |
$ |
10.8 |
$ |
27.4 |
$ |
18.8 |
Operational
- Gold production in the third quarter increased 53% quarter-over-quarter to 33,650 ounces, largely due to timing of ounces placed on the leach pads and higher average gold grade due to positive reconciliation of the tons placed. Year-over-year production for the quarter increased 48%
Financial
- Adjusted CAS1 on a by-product basis increased 8% quarter-over-quarter to $885 per ounce, largely driven by decreasing favorable recoveries on legacy pads from the prior period
- Capital expenditures increased slightly quarter-over-quarter to approximately $3 million
- Free cash flow1 in the third quarter totaled an all-time high $49 million compared to $16 million in the prior period, reflecting higher gold sales
Exploration
- Exploration investment during the quarter totaled $2 million (substantially all expensed) compared to $1 million (substantially all expensed) in the prior quarter
- Increased exploration investment during the quarter was mainly driven by an expanded program that commenced after opportunities were recognized to meaningfully extend the mine life at Wharf
- Two rigs were active during the quarter at the Juno and North Foley deposits undertaking
Contacts
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
