Coeur Mining(CDE)2023-05-11 17:22Financial Data and Key Metrics Changes - The company's first quarter results were slightly ahead of expectations, driven by strong performance at Palmarejo, Rochester, and Wharf operations, which offset a weaker quarter from Kensington mine [3] - Revenue was essentially flat compared to the first quarter of 2022 despite lower gold production, benefiting from stronger metals prices [19] - Total liquidity stood at 1 million per day being spent during the first half of 2023 [38] Company Strategy and Development Direction - The company is focused on completing the Rochester expansion and ramping up production in the second half of the year, which is expected to be a key inflection point [4][40] - There is a commitment to enhancing understanding of the Silvertip deposit while prioritizing the successful commissioning and ramp-up of Rochester [10][41] - The company is also investing in high-value exploration priorities, particularly at Kensington, to set up for higher returns in future periods [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter is typically the softest due to weather and one-time payments, but they remain on track to deliver on full-year guidance [3] - The company is assessing the impact of recent changes to the Mexican Mining Law, which may face legal challenges [6] - Management expressed optimism about easing costs among three of the four largest cost buckets, indicating potential moderation of inflation [37] Other Important Information - The company published its ESG report, highlighting its commitment to environmental, social, and governance practices [7] - The first quarter financial results included two one-time annual payments totaling $23 million, impacting overall financial results [20] Q&A Session Summary Question: What are the thoughts on cost applicable to sales at Rochester for the remainder of the year? - Management indicated that first-quarter results were in line with plans and guidance for costs would be issued alongside Q2 results, with expectations of noise in the next two quarters [26] Question: Will the third quarter be the strongest for Rochester? - Management confirmed that the third quarter is expected to be the highest production quarter due to the initial surge in ounces from newly stacked material [27][45] Question: What is the status of liquidity and any covenants attached to the facility? - Management reassured that there is ample room under the facility and cash on hand for the completion of Rochester, with key covenants being monitored [50] Question: What mitigation strategies are in place for Kensington's production challenges? - Management highlighted onboarding new development contractor groups to improve production and extend mine life, with expectations of catching up over the next two quarters [52][53]