Workflow
Coeur Mining(CDE) - 2024 Q3 - Quarterly Results
CDECoeur Mining(CDE)2024-11-06 21:31

Revenue and Financial Performance - Revenue for Q3 2024 totaled 313million,a41313 million, a 41% increase quarter-over-quarter and a 60% increase year-over-year[1][6] - Revenue for Q3 2024 increased to 313.5 million, up 61.1% from 194.6millioninQ32023[59]−RevenueforQ32024was194.6 million in Q3 2023[59] - Revenue for Q3 2024 was 313.5 million, compared to 194.6millioninQ32023,representinga61194.6 million in Q3 2023, representing a 61% increase[63] Adjusted EBITDA and Margins - Adjusted EBITDA for Q3 2024 was 126 million, a 140% increase quarter-over-quarter and a 2.5x increase over the last twelve months[1][2] - Adjusted EBITDA for Q3 2024 was 126.0million,withanAdjustedEBITDAMarginof28126.0 million, with an Adjusted EBITDA Margin of 28%, up from 16% in Q3 2023[63] Production Metrics - Gold production increased by 21% to 94,993 ounces, and silver production increased by 15% to 3.0 million ounces compared to the prior quarter[2] - 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[17] - 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[21] - Gold production in Q3 2024 at Kensington totaled 24,104 ounces, up from 23,202 ounces in Q2 2024 and 24,614 ounces in Q3 2023, driven by higher average gold grade[24] - Gold production at Wharf increased 53% quarter-over-quarter to 33,650 ounces in Q3 2024, driven by higher average gold grade and timing of ounces placed on leach pads[27] Costs and Margins - Costs applicable to sales per gold and silver ounce both declined by 12% quarter-over-quarter, leading to margins more than double the prior period[2] - Adjusted CAS for gold and silver decreased 19% and 17% quarter-over-quarter to 818 and 12.60perounce,respectively[17]−ThirdquarteradjustedCASforsilverandgoldonaco−productbasistotaled12.60 per ounce, respectively[17] - Third quarter adjusted CAS for silver and gold on a co-product basis totaled 20.88 and 1,735perounce,respectively[22]−AdjustedCASatKensingtondecreasedto1,735 per ounce, respectively[22] - Adjusted CAS at Kensington decreased to 1,539 per ounce in Q3 2024 from 1,734perounceinQ22024,reflectingincreasedmetalsales[24]−AdjustedCASatWharfincreased81,734 per ounce in Q2 2024, reflecting increased metal sales[24] - Adjusted CAS at Wharf increased 8% quarter-over-quarter to 885 per ounce in Q3 2024, due to decreasing favorable recoveries on legacy pads[27] Cash Flow and Liquidity - Operating cash flow for Q3 2024 was 111million,thehighestlevelinoveradecade,drivenbyhigherproductionandmetalsprices[2][10]−Freecashflowreached111 million, the highest level in over a decade, driven by higher production and metals prices[2][10] - Free cash flow reached 69 million during the quarter, a significant improvement from the prior period's negative 36.2million[2][5]−Freecashflowinthethirdquartertotaled36.2 million[2][5] - Free cash flow in the third quarter totaled 48 million compared to 18millioninthepriorperiod[17]−FreecashflowatKensingtonimprovedto18 million in the prior period[17] - Free cash flow at Kensington improved to 18 million in Q3 2024 from (24)millioninQ22024[24]−FreecashflowatWharfreachedanall−timehighof(24) million in Q2 2024[24] - Free cash flow at Wharf reached an all-time high of 49 million in Q3 2024, up from 16millioninQ22024,reflectinghighergoldsales[27]−CashflowfromoperatingactivitiesinQ32024was16 million in Q2 2024, reflecting higher gold sales[27] - Cash flow from operating activities in Q3 2024 was 111.1 million, a significant improvement from a negative 2.4millioninQ32023[61]−FreecashflowinQ32024was2.4 million in Q3 2023[61] - Free cash flow in Q3 2024 was 69.1 million, a significant improvement from a negative 114.7millioninQ32023[66]DebtandFinancialPosition−Thecompanyreduceditsoutstandingrevolvingcreditfacilitybalanceby114.7 million in Q3 2023[66] Debt and Financial Position - The company reduced its outstanding revolving credit facility balance by 50 million to 225million,achievinganetdebttoEBITDAratiobelow2.0xforthefirsttimeinthreeyears[2]−Coeurhad225 million, achieving a net debt to EBITDA ratio below 2.0x for the first time in three years[2] - Coeur had 30 million in outstanding letters of credit and 225millioninoutstandingborrowingsunderitsRCFasofSeptember30,2024[54]−Totaldebtincreasedto225 million in outstanding borrowings under its RCF as of September 30, 2024[54] - Total debt increased to 605.2 million, up 13.4% from 533.8millionattheendof2023[57]−Thecompanyissued533.8 million at the end of 2023[57] - The company issued 77.5 million in notes and bank borrowings in Q3 2024, compared to 163.0millioninQ32023[61]CapitalExpendituresandExploration−Explorationinvestmentduringthequarterwasapproximately163.0 million in Q3 2023[61] Capital Expenditures and Exploration - Exploration investment during the quarter was approximately 25 million, compared to 18millioninthepriorperiod[7][9]−Capitalexpendituresincreased3618 million in the prior period[7][9] - Capital expenditures increased 36% quarter-over-quarter to 8 million, reflecting higher underground development[17] - Capital expenditures in Q3 2024 were 42.0million,downfrom42.0 million, down from 112.3 million in Q3 2023[61] - Total 2024 exploration investment is expected to be 40−40 - 50 million for expansion drilling and 15−15 - 20 million for infill drilling[30] - 2024 capital expenditures guidance includes 124−124 - 158 million for sustaining capital and 36−36 - 42 million for development capital[40] Acquisitions and Strategic Moves - The acquisition of SilverCrest Metals Inc. was announced, with an implied value of approximately 1.7billion,expectedtocloseinQ12025[2][12]−CoeurisintheprocessofacquiringSilverCrest,withexpectedimpactsonproduction,cashflow,andfinancialcondition,thoughtheacquisitionmayfacedelaysorrisks[44]OperationalHighlights−Rochesteroperationplaced7.1milliontonsunderleach,producing1.2millionouncesofsilverand9,690ouncesofgold,representingquarter−over−quarterincreasesof191.7 billion, expected to close in Q1 2025[2][12] - Coeur is in the process of acquiring SilverCrest, with expected impacts on production, cash flow, and financial condition, though the acquisition may face delays or risks[44] Operational Highlights - Rochester operation placed 7.1 million tons under leach, producing 1.2 million ounces of silver and 9,690 ounces of gold, representing quarter-over-quarter increases of 19% and 21%, respectively[2] - Coeur operates four wholly-owned mining operations: Palmarejo (Mexico), Rochester (Nevada), Kensington (Alaska), and Wharf (South Dakota), along with the Silvertip exploration project in British Columbia[43] Metal Prices - Coeur's average gold spot price per ounce in Q3 2024 was 2,474, up from 2,338inQ22024and2,338 in Q2 2024 and 1,928 in Q3 2023[55] - The average silver spot price per ounce in Q3 2024 was 29.43,comparedto29.43, compared to 28.45 in Q2 2024 and 23.57inQ32023[55]−Coeur′saveragezincspotpriceperpoundinQ32024was23.57 in Q3 2023[55] - Coeur's average zinc spot price per pound in Q3 2024 was 1.26, down from 1.29inQ22024butupfrom1.29 in Q2 2024 but up from 1.10 in Q3 2023[55] - The average lead spot price per pound in Q3 2024 was 0.92,comparedto0.92, compared to 0.98 in Q2 2024 and 0.98inQ32023[55]NetIncomeandEarnings−NetincomeforQ32024was0.98 in Q3 2023[55] Net Income and Earnings - Net income for Q3 2024 was 48.7 million, compared to a net loss of 21.1millioninQ32023[59]−BasicearningspershareforQ32024were21.1 million in Q3 2023[59] - Basic earnings per share for Q3 2024 were 0.12, compared to a loss of 0.06pershareinQ32023[59]−AdjustednetincomeforQ32024was0.06 per share in Q3 2023[59] - Adjusted net income for Q3 2024 was 47.2 million, compared to an adjusted net loss of 18.6millioninQ32023[64]AssetsandLiabilities−Totalassetsincreasedto18.6 million in Q3 2023[64] Assets and Liabilities - Total assets increased to 2.23 billion as of September 30, 2024, up from 2.08billionattheendof2023[57]−Cashandcashequivalentsgrewto2.08 billion at the end of 2023[57] - Cash and cash equivalents grew to 76.9 million, a 24.8% increase from 61.6millionattheendof2023[57]−Oreonleachpadsincreasedsignificantlyto61.6 million at the end of 2023[57] - Ore on leach pads increased significantly to 148.3 million, up 86.8% from 79.4millionattheendof2023[57]−Cash,cashequivalents,andrestrictedcashattheendofQ32024were79.4 million at the end of 2023[57] - Cash, cash equivalents, and restricted cash at the end of Q3 2024 were 78.7 million, up from 54.9millionattheendofQ32023[61]CostsandExpenses−CostsapplicabletosalesforQ32024were54.9 million at the end of Q3 2023[61] Costs and Expenses - Costs applicable to sales for Q3 2024 were 156.7 million, up 6.0% from 147.9millioninQ32023[59]−ExplorationexpensesforQ32024increasedto147.9 million in Q3 2023[59] - Exploration expenses for Q3 2024 increased to 19.6 million, up 57.3% from 12.4millioninQ32023[59]−TotalcostsapplicabletosalesforQ32024were12.4 million in Q3 2023[59] - Total costs applicable to sales for Q3 2024 were 189,782 thousand, with adjusted costs applicable to sales at 154,245thousand[69]−AdjustedcostsapplicabletosalesforgoldinQ32024were154,245 thousand[69] - Adjusted costs applicable to sales for gold in Q3 2024 were 1,113 per ounce, while silver was 15.67perounce[69]SalesandRevenueSplit−GoldsalesforQ32024totaled96,913ounces,withrevenuesplitat5015.67 per ounce[69] Sales and Revenue Split - Gold sales for Q3 2024 totaled 96,913 ounces, with revenue split at 50% for Palmarejo and 100% for Kensington and Wharf[69] - Silver sales for Q3 2024 were 3,004,501 ounces, with revenue split at 50% for Palmarejo and 59% for Rochester[69] - Gold sales for the three months ended June 30, 2024, were 76,932 ounces, with adjusted costs at 1,264 per ounce[70] - Silver sales for the three months ended June 30, 2024, were 2,592,727 ounces, with adjusted costs at 17.71perounce[70]−GoldsalesforthethreemonthsendedMarch31,2024,were81,416ounces,withadjustedcostsat17.71 per ounce[70] - Gold sales for the three months ended March 31, 2024, were 81,416 ounces, with adjusted costs at 1,267 per ounce[71] - Total adjusted costs applicable to sales for Q4 2023 were 171.58million,withPalmarejocontributing171.58 million, with Palmarejo contributing 50.20 million, Rochester 54.51million,Kensington54.51 million, Kensington 37.44 million, and Wharf 29.44million[73]−GoldsalesforQ42023totaled99,541ounces,withPalmarejocontributing24,849ounces,Rochester19,174ounces,Kensington25,980ounces,andWharf29,538ounces[73]−SilversalesforQ42023totaled3,000,338ounces,withPalmarejocontributing1,644,592ounces,Rochester1,269,236ounces,andWharf86,510ounces[73]−AdjustedcostspergoldounceforQ42023were29.44 million[73] - Gold sales for Q4 2023 totaled 99,541 ounces, with Palmarejo contributing 24,849 ounces, Rochester 19,174 ounces, Kensington 25,980 ounces, and Wharf 29,538 ounces[73] - Silver sales for Q4 2023 totaled 3,000,338 ounces, with Palmarejo contributing 1,644,592 ounces, Rochester 1,269,236 ounces, and Wharf 86,510 ounces[73] - Adjusted costs per gold ounce for Q4 2023 were 1,225, with Palmarejo at 1,010,Rochesterat1,010, Rochester at 1,564, Kensington at 1,441,andWharfat1,441, and Wharf at 997[73] - Adjusted costs per silver ounce for Q4 2023 were 17.03,withPalmarejoat17.03, with Palmarejo at 15.26 and Rochester at 19.33[73]−TotaladjustedcostsapplicabletosalesforQ32023were19.33[73] - Total adjusted costs applicable to sales for Q3 2023 were 137.50 million, with Palmarejo contributing 47.73million,Rochester47.73 million, Rochester 22.74 million, Kensington 37.82million,andWharf37.82 million, and Wharf 29.21 million[74] - Gold sales for Q3 2023 totaled 78,015 ounces, with Palmarejo contributing 26,018 ounces, Rochester 4,432 ounces, Kensington 24,516 ounces, and Wharf 23,049 ounces[74] - Silver sales for Q3 2023 totaled 2,213,735 ounces, with Palmarejo contributing 1,533,975 ounces, Rochester 606,083 ounces, and Wharf 73,677 ounces[74] - Adjusted costs per gold ounce for Q3 2023 were 1,273,withPalmarejoat1,273, with Palmarejo at 917, Rochester at 1,899,Kensingtonat1,899, Kensington at 1,543, and Wharf at 1,267[74]−AdjustedcostspersilverounceforQ32023were1,267[74] - Adjusted costs per silver ounce for Q3 2023 were 17.85, with Palmarejo at 15.56andRochesterat15.56 and Rochester at 23.64[74] Guidance and Future Expectations - Full-year 2024 production is expected to be 95,000 - 103,000 ounces of gold and 5.9 - 6.7 million ounces of silver[18] - CAS in 2024 are expected to be 950−950 - 1,150 per gold ounce and 15.50−15.50 - 16.50 per silver ounce[18] - Capital expenditures are expected to be 27−27 - 37 million, consisting primarily of sustaining capital and underground development[18] - Full-year 2024 production is expected to be 4.8 - 6.6 million ounces of silver and 37,000 - 50,000 ounces of gold[22] - Full-year 2024 production guidance for Kensington is 92,000 - 106,000 gold ounces, with CAS expected to be 1,525−1,525 - 1,725 per ounce[25] - Full-year 2024 production guidance for Wharf is 86,000 - 96,000 gold ounces, with CAS expected to be 950−950 - 1,050 per ounce[29] Non-GAAP Financial Measures - Coeur uses non-GAAP financial measures such as EBITDA, adjusted EBITDA, and free cash flow to assess financial performance, with detailed reconciliations provided in its Form 10-K[53] Liquidity and Financial Covenants - The company's liquidity is defined as cash and cash equivalents plus availability under its RCF, subject to financial covenants[54] Conference Call and Investor Relations - Coeur will host a conference call to discuss its Q3 2024 financial results on November 7, 2024, at 11:00 a.m. Eastern Time[42] Operating Cash Flow - Operating cash flow before changes in working capital for Q3 2024 was 86,932thousand,asignificantincreasefrom86,932 thousand, a significant increase from 27,482 thousand in Q2 2024 and $14,187 thousand in Q3 2023[68]