Rochester Expansion Near Completion
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported second quarter 2023 financial results, including revenue
of $177 million and cash flow from operating activities of $39
million. The Company reported GAAP net loss from continuing
operations of $32 million, or $0.10 per share. On an adjusted
basis1, Coeur reported EBITDA of $22 million, cash flow from
operating activities before changes in working capital of $(7)
million and net loss from continuing operations of $20 million, or
$0.06 per share.
Key Highlights
- Rochester expansion approximately 97% complete as of July
31 – Solution is now circulating through the completed Stage VI
leach pad and Merrill-Crowe process plant, with initial ounces
expected to be recovered next month. Construction completion of the
new three-stage crushing circuit is anticipated this quarter.
Ramp-up of the expanded operation is set to occur over the
remainder of 2023 and into early 2024, leading to expected
significant production growth and materially lower costs. The
estimated ultimate cost to complete the expansion is expected to be
approximately 6 - 9%, or $40 - $60 million, higher than the prior
high-end of guidance. The Company has incurred approximately $660
million of total project costs through the end of July
- Second quarter operating strength at Rochester and Wharf
offset lower production at Kensington – Gold and silver
production for the quarter totaled 68,406 ounces and 2.4 million
ounces, respectively. Stronger production at Rochester and Wharf
offset a weaker quarter at Kensington due to excessive water flows
and paste backfill issues, which delayed the timing of production
from certain stopes
- Full-year silver production guidance maintained; gold
production guidance revised to reflect lower outlook at
Kensington – 2023 silver production is expected to be 10 - 12
million ounces. 2023 gold production is expected to be 304,000 -
352,500 ounces, approximately 5% lower than prior full-year gold
production guidance, after taking Kensington’s lower than
anticipated second quarter production into account
- Balance sheet flexibility maintained to support remaining
capital investments – Coeur ended the quarter with total
liquidity of approximately $346 million including $57 million of
cash, $280 million of available capacity under its $390 million
revolving credit facility (“RCF”)2, and $9 million of marketable
securities
- State of South Dakota approves Boston Expansion at Wharf
- Coeur has received a state mine permit from the South Dakota
Board of Minerals and Environment allowing for a fifty-acre
expansion of mining operations at Wharf which is expected to add
significant certainty to Wharf’s current eight-year mine life
“With the bulk of the multi-year expansion at Rochester now
behind us, we look forward to beginning to deliver strong
production growth and lower costs from Nevada’s largest primary
silver mine,” said Mitchell J. Krebs, President and Chief Executive
Officer. “The team at Rochester is set to achieve a major milestone
next month by recovering the first silver and gold ounces from the
new leach pad and processing facility. The crushing facility is
also expected to be complete this quarter, followed by a ramp-up of
the newly expanded operation during the remainder of the year and
into early 2024. Once ramped up, Rochester is expected to be one of
the world’s largest operations of its kind with production rates
approximately 2.5x higher than recent levels, a significantly lower
cost structure, combined with the excellent potential to extend and
enhance the mine life from its large, prospective, and
under-explored land position.
“Our Palmarejo gold-silver mine in northern Mexico – Coeur’s
largest single operation – delivered another solid quarter and
continues to showcase its large, prospective land position with
additional positive exploration results, which were highlighted in
a recent press release. Although Kensington had a weaker than
anticipated second quarter, the team has worked hard to address
first half operational challenges in order to deliver a stronger
second half. Our Wharf operation in South Dakota – which is in its
40th year of operation this year and recently produced its three
millionth ounce of gold – continued to deliver solid results during
the quarter and received state approval to proceed with an
expansion that is expected to add certainty and operational
flexibility to its current eight-year mine life.
“We remain committed to our strategy of differentiating Coeur
Mining by delivering sector-leading growth and higher returns by
reinvesting in the attractive exploration and expansion
opportunities that exist throughout our portfolio of North American
assets.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Gold Sales
$
121.4
$
127.1
$
157.6
$
139.2
$
146.6
Silver Sales
$
55.9
$
60.2
$
52.5
$
43.8
$
57.5
Consolidated Revenue
$
177.2
$
187.3
$
210.1
$
183.0
$
204.1
Costs Applicable to Sales3
$
139.6
$
153.1
$
159.3
$
163.2
$
150.7
General and Administrative
Expenses
$
9.8
$
12.1
$
10.2
$
9.7
$
9.3
Net Income (Loss)
$
(32.4
)
$
(24.6
)
$
49.0
$
(57.4
)
$
(77.4
)
Net Income (Loss) Per Share
$
(0.10
)
$
(0.08
)
$
0.17
$
(0.21
)
$
(0.28
)
Adjusted Net Income (Loss)1
$
(20.2
)
$
(33.1
)
$
(17.5
)
$
(44.7
)
$
(13.1
)
Adjusted Net Income (Loss)1 Per
Share
$
(0.06
)
$
(0.11
)
$
(0.06
)
$
(0.16
)
$
(0.05
)
Weighted Average Shares
Outstanding
333.1
301.0
284.5
278.1
278.0
EBITDA1
$
4.0
$
16.2
$
84.9
$
(20.5
)
$
(32.8
)
Adjusted EBITDA1
$
22.2
$
25.1
$
35.9
$
18.3
$
43.3
Cash Flow from Operating
Activities
$
39.4
$
(35.0
)
$
28.5
$
(19.1
)
$
22.6
Capital Expenditures
$
85.6
$
74.0
$
113.1
$
96.6
$
73.2
Free Cash Flow1
$
(46.2
)
$
(109.0
)
$
(84.5
)
$
(115.7
)
$
(50.6
)
Cash, Equivalents & Short-Term
Investments
$
56.8
$
67.0
$
61.5
$
75.4
$
74.2
Total Debt4
$
469.4
$
494.1
$
515.9
$
635.7
$
547.5
Average Realized Price Per Ounce –
Gold
$
1,809
$
1,794
$
1,787
$
1,702
$
1,729
Average Realized Price Per Ounce –
Silver
$
23.91
$
23.25
$
21.14
$
19.09
$
22.61
Gold Ounces Produced
68,406
69,039
87,727
83,438
83,772
Silver Ounces Produced
2.4
2.5
2.4
2.4
2.5
Gold Ounces Sold
67,090
70,866
88,189
81,782
84,786
Silver Ounces Sold
2.3
2.6
2.5
2.3
2.5
Adjusted CAS per AuOz1
$
1,464
$
1,381
$
1,270
$
1,318
$
1,207
Adjusted CAS per AgOz1
$
16.77
$
15.83
$
15.57
$
14.52
$
15.09
Financial Results
Second quarter 2023 revenue totaled $177 million compared to
$187 million in the prior period and $204 million in the second
quarter of 2022. The Company produced 68,406 and 2.4 million ounces
of gold and silver, respectively, during the quarter. Metal sales
for the quarter totaled 67,090 ounces of gold and 2.3 million
ounces of silver. Average realized gold and silver prices for the
quarter were $1,809 and $23.91 per ounce, respectively, compared to
$1,794 and $23.25 per ounce in the prior period and $1,729 and
$22.61 per ounce in the first quarter of 2022.
Gold and silver sales represented 68% and 32% of quarterly
revenue, respectively, compared to 68% and 32% in the prior period.
The Company’s U.S. operations accounted for approximately 59% of
first quarter revenue compared to 56% in the first quarter of
2023.
Costs applicable to sales3 decreased 9% quarter-over-quarter to
$140 million, largely due to lower production in the period.
General and administrative expenses decreased 19%
quarter-over-quarter to $10 million.
Coeur invested approximately $5 million ($3 million expensed and
$2 million capitalized) in exploration during the quarter, compared
to roughly $7 million ($5 million expensed and $2 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 $9.9
million during the second quarter. Cash income and mining taxes
paid during the period totaled approximately $2.7 million. As of
December 31, 2022, Companywide U.S. net operating loss
carryforwards totaled approximately $535 million.
Quarterly operating cash flow totaled $39 million compared to
$(35) million in the prior period, mainly driven by strong
operating performances at Palmarejo, Rochester and Wharf as well as
favorable changes in working capital partially offset by the second
quarter challenges at Kensington related to stope sequencing.
During the second quarter, Coeur satisfied the remaining $15
million obligation under its prepayment agreement at Kensington and
exercised an option to receive an additional $25 million
prepayment. The Company also exercised options under new agreements
for a $10 million prepayment for deliveries of gold concentrate
from Wharf as well as a $10 million prepayment for deliveries of
gold and silver doré from Rochester, resulting in a net cash inflow
from prepayments of approximately $30 million.
Capital expenditures increased 16% quarter-over-quarter to $86
million as a result of timing of payments on Rochester expansion
capital. Expenditures related to the expansion project at Rochester
totaled $55 million during the second quarter compared to $47
million in the first quarter. Sustaining and development capital
expenditures accounted for approximately 34% and 66%, respectively,
of Coeur’s total capital investment during the quarter.
Rochester Expansion Project Update
Coeur continued making solid progress on the construction of the
Rochester expansion during the quarter as the project nears
completion. At the end of July, the project was approximately 97%
complete and the Company had incurred $660 million of the total
project costs.
Coeur expects to achieve mechanical completion of the crusher
corridor in the third quarter, with ramp-up anticipated throughout
the second half of 2023 and into early 2024.
The Company also updated its estimate for the expected ultimate
cost to complete the expansion, which reflects additional
contractor hours required to offset the loss of approximately
thirty days due to extreme weather and lower than planned
productivity rates driven by a lack of qualified skilled labor.
Together with ongoing inflationary impacts and required
construction re-work to address issues from previously completed
engineering designs, the Company expects the total cost for the
project to be approximately 6 - 9%, or $40 - $60 million, above the
high end of Coeur’s previous guidance range of $650 - $670
million.
Balance Sheet and Liquidity Update
Coeur ended the quarter with total liquidity of approximately
$346 million, including $57 million of cash, $280 million of
available capacity under its $390 million RCF2 subject to certain
financial covenants, and $9 million of marketable securities.
To further enhance the Company’s balance sheet flexibility and
liquidity during the final stages of the Rochester expansion, Coeur
and its RCF banks agreed to amend the terms of the RCF to raise the
maximum net leverage ratio from 4.25x to 5.50x for the third
quarter of 2023 followed by decreasing the ratio to 4.5x for the
fourth quarter of 2023 and the first quarter of 2024 before
reverting to a ratio of 3.50x thereafter, among other items.
Hedging Update
During the second quarter, the Company added to its hedge
position by executing additional hedges on 1.3 million ounces of
its expected 2023 silver production. The Company’s hedging strategy
continues to focus on mitigating risk during this period of capital
intensity. An overview of the hedges in place is outlined
below.
3Q 2023
4Q 2023
Total 2023
Gold Ounces Hedged
55,749
55,749
111,498
Avg. Forward Price ($/oz)
$1,977
$1,977
$1,977
Silver Ounces Hedged
1,245,000
1,245,000
2,490,000
Avg. Forward Price ($/oz)
$25.34
$25.47
25.41
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 second
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 $2 million (approximately $1.6 million in
costs applicable to sales2 and $0.5 million of amortization). The
non-cash write-down in the three months ended June 30, 2023
includes a $3.9 million recovery of losses recognized in the prior
quarter.
Operations
Second quarter 2023 highlights for each of the Company’s
operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Tons milled
472,622
533,606
554,247
538,750
539,600
Average gold grade (oz/t)
0.056
0.052
0.051
0.049
0.054
Average silver grade (oz/t)
4.10
4.02
3.16
3.53
3.95
Average recovery rate – Au
87.4
%
90.1
%
92.4
%
93.3
%
92.4
%
Average recovery rate – Ag
83.5
%
81.7
%
85.0
%
84.9
%
84.2
%
Gold ounces produced
23,216
25,118
25,935
24,807
27,109
Silver ounces produced (000’s)
1,617
1,752
1,489
1,612
1,795
Gold ounces sold
22,207
25,970
25,252
24,378
29,285
Silver ounces sold (000’s)
1,561
1,795
1,490
1,554
1,855
Average realized price per gold
ounce
$
1,589
$
1,564
$
1,509
$
1,447
$
1,507
Average realized price per silver
ounce
$
23.98
$
23.23
$
21.10
$
19.01
$
22.56
Metal sales
$
72.7
$
82.3
$
69.5
$
64.8
$
86.0
Costs applicable to sales3
$
46.6
$
49.3
$
47.1
$
43.2
$
49.1
Adjusted CAS per AuOz1
$
1,023
$
926
$
1,027
$
948
$
855
Adjusted CAS per AgOz1
$
15.16
$
13.94
$
14.23
$
12.67
$
12.97
Exploration expense
$
1.6
$
1.3
$
1.5
$
1.8
$
1.7
Cash flow from operating
activities
$
18.6
$
11.5
$
18.9
$
12.9
$
22.3
Sustaining capital expenditures
(excludes capital lease payments)
$
10.7
$
8.6
$
8.1
$
10.8
$
10.1
Development capital
expenditures
$
1.2
$
1.6
$
—
$
—
$
—
Total capital expenditures
$
11.9
$
10.2
$
8.1
$
10.8
$
10.1
Free cash flow1
$
6.7
$
1.3
$
10.8
$
2.1
$
12.2
Operational
- Gold and silver production totaled 23,216 and 1.6 million
ounces, respectively, compared to 25,118 and 1.8 million ounces in
the prior period and 27,109 and 1.8 million ounces in the second
quarter of 2022
- Production benefited from increased average grades, offset by
lower average gold recoveries and decreased mill throughput
Financial
- Adjusted CAS1 for gold and silver on a co-product basis
increased 10% and 9% quarter-over-quarter to $1,023 and $15.16 per
ounce, respectively, driven by lower metal sales and a stronger
Mexican Peso
- Capital expenditures increased 17% quarter-over-quarter to $12
million, reflecting increased underground mine development as well
as continued work on the open pit tailings backfill project
- Free cash flow1 totaled $7 million compared to $1 million in
the prior period
Exploration
- Exploration investment increased to approximately $2 million
(substantially all expensed), compared to roughly $1 million
(substantially all expensed) in the prior period
- Exploration activities focused on mapping and sampling to the
east of the current operation and outside of the area of interest
relating to the Franco-Nevada gold stream as well as drilling on
the northwest extension of the Hidalgo zone. The aim of the mapping
and sampling programs is to build a pipeline of targets for
drilling in the coming years
- One drill rig was active during the quarter, focused on
expansion drilling on the northwest extension of the Hidalgo zone
(located at the northwest end of the Independencia deposit). In
this portion of the system, three mineralized vein arrays have been
identified — Hidalgo, Libertad and San Juan. While some results are
still pending, visual indicators suggest all holes drilled during
the second quarter intersected mineralization
- Coeur expects four drill rigs to be active at Palmarejo in the
third quarter focused on expansion drilling at the Hidalgo zone.
Due to Hidalgo’s proximity to existing infrastructure, it remains a
key focus area for potential future resource additions
Other
- Approximately 33% of Palmarejo’s gold sales were sold under its
gold stream agreement at a price of $800 per ounce. The Company
anticipates approximately 30% - 40% of Palmarejo’s gold sales for
2023 will be sold under the gold stream agreement
Guidance
- Full-year 2023 production is expected to be 100,000 - 112,500
ounces of gold and 6.5 - 7.5 million ounces of silver
- CAS1 in 2023 are expected to be $900 - $1,050 per gold ounce
and $14.25 - $15.25 per silver ounce
- Capital expenditures are expected to be $35 - $47 million,
consisting primarily of underground development as well as
development of the high compression thickener and other elements of
the open pit backfill project, which is expected to be completed in
the fourth quarter
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Ore tons placed
2,690,840
2,456,586
2,754,118
3,551,353
4,236,459
Average silver grade (oz/t)
0.42
0.45
0.68
0.37
0.35
Average gold grade (oz/t)
0.003
0.003
0.003
0.004
0.003
Silver ounces produced (000’s)
683
761
973
745
689
Gold ounces produced
6,314
8,155
11,589
8,761
8,319
Silver ounces sold (000’s)
695
770
975
733
683
Gold ounces sold
6,493
8,349
11,646
8,725
8,071
Average realized price per silver
ounce
$
23.70
$
23.19
$
21.10
$
19.10
$
22.42
Average realized price per gold
ounce
$
1,946
$
1,922
$
1,893
$
1,852
$
1,883
Metal sales
$
29.1
$
33.9
$
42.6
$
30.2
$
30.5
Costs applicable to sales3
$
26.1
$
42.9
$
44.1
$
50.8
$
38.0
Adjusted CAS per AgOz1
$
20.39
$
20.24
$
17.60
$
18.46
$
20.85
Adjusted CAS per AuOz1
$
1,646
$
1,655
$
1,596
$
1,821
$
1,763
Exploration expense
$
0.3
$
0.4
$
0.6
$
0.6
$
1.5
Cash flow from operating
activities
$
(3.8
)
$
(13.5
)
$
(5.5
)
$
(13.7
)
$
(9.1
)
Sustaining capital expenditures
(excludes capital lease payments)
$
5.1
$
4.3
$
3.0
$
5.1
$
4.5
Development capital
expenditures
$
56.4
$
47.7
$
89.3
$
68.9
$
42.5
Total capital expenditures
$
61.5
$
52.0
$
92.3
$
74.0
$
47.0
Free cash flow1
$
(65.3
)
$
(65.5
)
$
(97.8
)
$
(87.7
)
$
(56.1
)
Operational
- Silver and gold production totaled 682,656 and 6,314 ounces,
respectively, compared to 761,346 and 8,155 ounces in the prior
period and 689,169 and 8,319 ounces in the second quarter of
2022
- Lower production quarter-over-quarter is a result of 2.4
million tons being placed on the new Stage VI leach pad in
preparation for the new Merrill-Crowe process plant startup in the
third quarter
- Tons placed increased 10% quarter-over-quarter to roughly 2.7
million, roughly 90% of which were placed on the new Stage VI leach
pad
Financial
- Second quarter adjusted CAS1 figures in the table above and
highlighted below exclude the impact of an LCM adjustment totaling
approximately $1.6 million related to the net realizable value of
metal and leach pad inventory due to higher operating costs
exceeding the lower market value of ounces under leach at
Rochester
- Adjusted CAS1 for silver and gold on a co-product basis totaled
$20.39 and $1,646 per ounce, respectively, due to continued higher
costs as well as the effect of current metals prices
- Capital expenditures increased 18% quarter-over-quarter to $62
million, reflecting timing of spending related to the Rochester
expansion project
- Free cash flow1 totaled $(65) million compared to $(66) million
in the prior period
Exploration
- Exploration investment decreased 14% quarter-over-quarter to
approximately $1 million ($0.3 million expensed and $0.3 million
capitalized)
- Exploration activities focused on geologic logging,
interpretation and geological modeling, which will continue through
next quarter with drilling planned for the second half of the year
at the Rochester pit
- Additionally, work continued on regional target assessment and
ranking. The program will continue for the remainder of the year
and systematically thereafter as geological knowledge and
understanding of the district increases
Guidance
- Full-year 2023 production is expected to be 3.5 - 4.5 million
ounces of silver and 35,000 - 50,000 ounces of gold. Production in
2023 is expected to be second half weighted with the construction
completion of the expansion occurring in the third quarter
- The Company expects second half 2023 adjusted CAS1 to be
similar to actual first half 2023 adjusted CAS1 as Coeur completes
and ramps up the Rochester expansion
- Capital expenditures are expected to be $290 - $310 million
(previously $228 - $252 million), which reflects Coeur’s current
estimate to complete the expansion project
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Tons milled
152,907
153,337
183,410
175,246
175,722
Average gold grade (oz/t)
0.09
0.15
0.18
0.18
0.17
Average recovery rate
90.9
%
91.2
%
92.4
%
91.1
%
91.6
%
Gold ounces produced
13,193
20,296
30,335
28,214
27,866
Gold ounces sold
13,273
20,902
30,863
27,609
27,666
Average realized price per gold ounce,
gross
$
1,991
$
1,983
$
1,942
$
1,808
$
1,842
Treatment and refining charges per gold
ounce
$
142
$
63
$
38
$
33
$
34
Average realized price per gold ounce,
net
$
1,849
$
1,920
$
1,904
$
1,775
$
1,808
Metal sales
$
24.6
$
40.2
$
58.8
$
49.1
$
50.3
Costs applicable to sales3
$
39.1
$
37.4
$
39.2
$
40.3
$
39.3
Adjusted CAS per AuOz1
$
2,927
$
1,775
$
1,265
$
1,455
$
1,399
Prepayment, working capital cash
flow
$
9.9
$
(9.9
)
$
9.6
$
(9.6
)
$
(0.1
)
Exploration expense
$
2.3
$
1.0
$
2.2
$
2.8
$
1.2
Cash flow from operating
activities
$
(3.7
)
$
(4.8
)
$
20.8
$
(0.2
)
$
10.7
Sustaining capital expenditures
(excludes capital lease payments)
$
11.7
$
10.7
$
7.7
$
7.1
$
8.8
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
11.7
$
10.7
$
7.7
$
7.1
$
8.8
Free cash flow1
$
(15.4
)
$
(15.5
)
$
13.1
$
(7.3
)
$
1.9
Operational
- Gold production totaled 13,193 ounces compared to 20,296 ounces
in the prior period and 27,866 ounces in the second quarter of
2022
- Lower production was driven by significant water inflows from
Spring runoff and paste backfill challenges in upper Kensington,
which led to stope extraction disruption as well as lower average
gold grade as development ore was sent to the mill to make up for
lower stope tonnage
Financial
- Adjusted CAS1 totaled $2,927 per ounce compared to $1,775 per
ounce in the prior period, reflecting decreased metal sales
- Capital expenditures increased 9% quarter-over-quarter to $12
million due to increased capital development to support the ongoing
multi-year exploration program aimed at extending mine life
- Free cash flow1 totaled $(15) million compared to $(16) million
in the prior period
Exploration
- Exploration investment totaled approximately $5 million ($2
million expensed and $3 million capitalized), compared to $3
million ($1 million expensed and $2 million capitalized) in the
prior period
- Up to four underground drill rigs were focused on expansion and
infill drilling at Elmira, Kensington and Johnson
- In 2023, Coeur aims to build on the 2022 success from Upper
Kensington (Zones 30, 30A and 30B) with further extensions of these
zones. Assay results from second quarter drilling are still
pending, but visual logging indicates that the mineralized zones
continue
- In the third quarter, the Company expects to continue with
infill and expansion drilling as well as commencing surface and
underground scout drilling at Raven and Johnson East targets
Guidance
- Full-year 2023 production is expected to be 84,000 - 95,000
gold ounces (previously 100,000 - 112,500)
- CAS1 in 2023 are expected to be $1,650 - $1,750 per gold ounce
(previously $1,500 - $1,700 per ounce). The revised figures reflect
the lower-than-expected production during the first half of the
year
- Capital expenditures are expected to be $50 - $62 million, of
which approximately $28 - $34 million and $6 - $10 million is
related to underground and infill drilling, respectively, as part
of the multi-year exploration program
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Ore tons placed
1,041,846
1,156,794
975,994
1,353,071
1,050,215
Average gold grade (oz/t)
0.022
0.032
0.024
0.019
0.015
Gold ounces produced
25,683
15,470
19,868
21,656
20,478
Silver ounces produced (000’s)
88
21
9
13
12
Gold ounces sold
25,117
15,645
20,428
21,070
19,764
Silver ounces sold (000’s)
82
24
17
8
6
Average realized price per gold
ounce
$
1,946
$
1,938
$
1,895
$
1,838
$
1,886
Metal sales
$
50.8
$
30.9
$
39.0
$
38.9
$
37.4
Costs applicable to sales3
$
27.8
$
23.5
$
28.9
$
28.9
$
24.4
Adjusted CAS per AuOz1
$
1,035
$
1,466
$
1,393
$
1,357
$
1,233
Exploration expense
$
—
$
—
$
—
$
—
$
—
Cash flow from operating
activities
$
33.8
$
1.9
$
10.3
$
6.9
$
10.3
Sustaining capital expenditures
(excludes capital lease payments)
$
0.1
$
—
$
0.7
$
0.3
$
0.3
Development capital
expenditures
$
0.1
$
0.1
$
0.1
$
0.2
$
0.2
Total capital expenditures
$
0.2
$
0.1
$
0.8
$
0.5
$
0.5
Free cash flow1
$
33.6
$
1.8
$
9.5
$
6.4
$
9.8
Operational
- Gold production increased 66% quarter-over-quarter to 25,683
ounces, largely driven by the timing of ounces placed on the leach
pad and due to higher grade ore placed in the first quarter.
Year-over-year production increased 25%
Financial
- Adjusted CAS1 on a by-product basis decreased 29%
quarter-over-quarter to $1,035 per ounce, largely driven by higher
metal sales
- Capital expenditures remained consistent quarter-over-quarter
at less than $1 million
- Free cash flow1 totaled $34 million compared to $2 million in
the prior period, reflecting higher metal sales
Exploration
- Exploration investment remained flat quarter-over-quarter
- Throughout 2023, the focus will remain on geological
modeling
Guidance
- Full-year 2023 production is expected to be 85,000 - 95,000
gold ounces
- CAS1 in 2023 are expected to be $1,200 - $1,350 per gold
ounce
- Capital expenditures are expected to be $1 - $4 million
Exploration
Coeur had up to 6 active rigs across all sites during the second
quarter, for a total investment of approximately $5 million ($3
million expensed and $2 million capitalized), compared to roughly
$7 million ($5 million expensed and $2 million capitalized) in the
prior period. The Company expects full year 2023 exploration
investment to be approximately $40 - $50 million ($30 - $35 million
expensed and $10 - $15 million capitalized), with the focus on
Kensington, Palmarejo and Silvertip. The Company has invested
nearly $245 million in exploration over the last five years, which
has resulted in significant additions to reserves and resources
across the portfolio.
Exploration investment at the Silvertip silver-zinc-lead
exploration project in British Columbia, Canada in the second
quarter totaled approximately $(3) million, which reflects the
filing for a $6 million refund for 2021 and 2022 Mining Exploration
Tax Credits from the province of British Columbia. Excluding the
refund, exploration investment at Silvertip totaled approximately
$3 million.
During the second quarter, compilation, analysis, interpretation
and modeling of all geological data continued at Silvertip. A new
detailed geological model is being developed to support year-end
resource calculations at the end of 2023. This work is already
bearing fruit with new concepts and exploration targets emerging.
Additionally, exploration drilling recommenced late in the second
quarter with 1 rig drilling scout holes from underground. Up to 2
underground and 2 surface rigs are expected to be active on the
property during the second half of the year. The program for the
second half of the year aims to add new resources to the south of
the existing resource and to perform scout drilling on some
high-priority targets. The Company expects to invest $10 - $14
million in exploration in 2023 at Silvertip, of which roughly $6 -
$8 million is underground development.
2023 Guidance
Coeur reiterated its 2023 production and cost guidance other
than (i) updating production and costs at Kensington and (ii)
modifying capital expenditures to reflect the updated estimate to
complete the Rochester expansion.
2023 Production Guidance
Previous
Updated
Gold
Silver
Gold
Silver
(oz)
(K oz)
(oz)
(K oz)
Palmarejo
100,000 - 112,500
6,500 - 7,500
100,000 - 112,500
6,500 - 7,500
Rochester
35,000 - 50,000
3,500 - 4,500
35,000 - 50,000
3,500 - 4,500
Kensington
100,000 - 112,500
—
84,000 - 95,000
—
Wharf
85,000 - 95,000
—
85,000 - 95,000
—
Total
320,000 - 370,000
10,000 - 12,000
304,000 - 352,500
10,000 - 12,000
2023 Costs Applicable to Sales Guidance
Previous
Updated
Gold
Silver
Gold
Silver
($/oz)
($/oz)
($/oz)
($/oz)
Palmarejo (co-product)
$900 - $1,050
$14.25 - $15.25
$900 - $1,050
$14.25 - $15.25
Rochester (co-product)
—
—
—
—
Kensington
$1,500 - $1,700
—
$1,650 - $1,750
—
Wharf (by-product)
$1,200 - $1,350
—
$1,200 - $1,350
—
The Company expects second half 2023 adjusted CAS1 at Rochester
to be similar to actual first half 2023 adjusted CAS1 as Coeur
completes and ramps up the expansion project.
2023 Capital, Exploration and G&A Guidance
Previous
Updated
($M)
($M)
Capital Expenditures,
Sustaining
$120 - $145
$148 - $168
Capital Expenditures,
Development
$200 - $235
$230 - $264
Exploration, Expensed
$30 - $35
$30 - $35
Exploration, Capitalized
$10 - $15
$10 - $15
General & Administrative
Expenses
$36 - $40
$36 - $40
Note: The Company’s previous guidance figures assume estimated
prices of $1,800/oz gold and $23.00/oz silver as well as CAD of
1.25 and MXN of 20.00. Guidance figures exclude the impact of any
metal sales or foreign exchange hedges. The Company’s updated
guidance figures assume estimated prices of $1,900/oz gold and
$23.00/oz silver as well as CAD of 1.25 and MXN of 20.00. 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
2023 financial results on August 10, 2023 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, and
other members of management. A replay of the call will be available
through August 17, 2023.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
682 69 64
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 silver-zinc-lead 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 strategy, cash flow, growth,
returns, capital allocation and investment, cost management,
liquidity and balance sheet management, exploration and development
efforts and plans, reserve and resource growth, mine life
extension, the gold stream agreement at Palmarejo, expectations,
plans, costs and timing regarding the Rochester expansion project
and the Silvertip project, hedging strategies, 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 project is not completed on a timely basis or
requires more capital than currently anticipated for completion,
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, the continued effects of the COVID-19
pandemic, including impacts to workforce, materials and equipment
availability, inflationary pressures, continued access to financing
sources, government orders that may require temporary suspension of
operations at one or more of our sites and effects on our suppliers
or the refiners and smelters to whom the Company markets its
production and on the communities where we operate, 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 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, 2022.
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, liquidity and adjusted liquidity.
2.
As of June 30, 2023, Coeur had $30 million
in outstanding letters of credit and $80 million in outstanding
borrowings under its RCF.
3.
Excludes amortization.
4.
Includes capital leases. Net of debt
issuance costs and premium received.
Average Spot Prices
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Average Gold Spot Price Per Ounce
$
1,976
$
1,890
$
1,726
$
1,729
$
1,871
Average Silver Spot Price Per Ounce
$
24.13
$
22.55
$
21.17
$
19.23
$
22.60
Average Zinc Spot Price Per Pound
$
1.15
$
1.42
$
1.36
$
1.49
$
1.77
Average Lead Spot Price Per Pound
$
0.96
$
0.97
$
0.95
$
0.90
$
0.99
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
June 30, 2023
December 31, 2022
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
56,845
$
61,464
Receivables
29,615
36,333
Inventory
64,523
61,831
Ore on leach pads
108,768
82,958
Equity securities
9,240
32,032
Prepaid expenses and other
20,194
25,814
289,185
300,432
NON-CURRENT ASSETS
Property, plant and equipment and mining
properties, net
1,553,733
1,389,755
Ore on leach pads
34,991
51,268
Restricted assets
8,851
9,028
Equity securities
—
12,120
Receivables
20,888
22,023
Other
64,456
61,517
TOTAL ASSETS
$
1,972,104
$
1,846,143
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
143,146
$
96,123
Accrued liabilities and other
110,386
92,863
Debt
21,110
24,578
Reclamation
5,796
5,796
280,438
219,360
NON-CURRENT LIABILITIES
Debt
448,276
491,355
Reclamation
202,163
196,635
Deferred tax liabilities
19,262
14,459
Other long-term liabilities
33,203
35,318
702,904
737,767
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 600,000,000
shares, 350,166,722 issued and outstanding at June 30, 2023 and
295,697,624 at December 31, 2022
3,502
2,957
Additional paid-in capital
4,050,460
3,891,265
Accumulated other comprehensive income
(loss)
9,347
12,343
Accumulated deficit
(3,074,547
)
(3,017,549
)
988,762
889,016
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
1,972,104
$
1,846,143
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
In thousands, except share
data
Revenue
$
177,235
$
204,123
$
364,533
$
392,527
COSTS AND EXPENSES
Costs applicable to sales(1)
139,637
150,679
292,693
283,946
Amortization
19,595
27,965
42,303
54,398
General and administrative
9,789
9,287
21,872
19,559
Exploration
2,920
5,279
7,570
10,697
Pre-development, reclamation, and
other
10,048
9,178
20,938
20,590
Total costs and expenses
181,989
202,388
385,376
389,190
OTHER INCOME (EXPENSE), NET
Gain on debt extinguishment
2,961
—
2,961
—
Fair value adjustments, net
(3,922
)
(62,810
)
6,639
(52,205
)
Interest expense, net of capitalized
interest
(6,912
)
(5,170
)
(14,301
)
(9,738
)
Other, net
(9,919
)
313
(10,880
)
2,050
Total other income (expense), net
(17,792
)
(67,667
)
(15,581
)
(59,893
)
Income (loss) before income and mining
taxes
(22,546
)
(65,932
)
(36,424
)
(56,556
)
Income and mining tax (expense)
benefit
(9,866
)
(11,502
)
(20,574
)
(13,196
)
NET INCOME (LOSS)
$
(32,412
)
$
(77,434
)
$
(56,998
)
$
(69,752
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges
12,842
34,245
(86
)
29,027
Reclassification adjustments for realized
(gain) loss on cash flow hedges
1,224
(1,731
)
(2,910
)
(1,271
)
Other comprehensive income (loss)
14,066
32,514
(2,996
)
27,756
COMPREHENSIVE INCOME (LOSS)
$
(18,346
)
$
(44,920
)
$
(59,994
)
$
(41,996
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
(0.10
)
$
(0.28
)
$
(0.18
)
$
(0.26
)
Diluted
$
(0.10
)
$
(0.28
)
$
(0.18
)
$
(0.26
)
(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,
2023
2022
2023
2022
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(32,412
)
$
(77,434
)
$
(56,998
)
$
(69,752
)
Adjustments:
Amortization
19,595
27,965
42,303
54,398
Accretion
4,073
3,529
8,066
6,992
Deferred taxes
(1,043
)
704
5,408
(7,558
)
Gain on debt extinguishment
(2,961
)
—
(2,961
)
—
Fair value adjustments, net
3,922
62,810
(6,639
)
49,066
Stock-based compensation
2,676
2,347
5,827
4,614
Loss on the disposition of assets
12,631
—
12,631
—
Write-downs
1,627
9,219
14,740
16,814
Deferred revenue recognition
(15,100
)
(241
)
(25,215
)
(556
)
Other
72
874
2,141
(466
)
Changes in operating assets and
liabilities:
Receivables
(913
)
(4,882
)
2,137
4,218
Prepaid expenses and other current
assets
4,260
3,523
3,764
3,014
Inventory and ore on leach pads
(18,738
)
(11,263
)
(36,373
)
(28,935
)
Accounts payable and accrued
liabilities
61,708
5,493
35,563
(15,632
)
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
39,397
22,644
4,394
16,217
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(85,581
)
(73,156
)
(159,629
)
(142,658
)
Proceeds from the sale of assets
8,228
630
8,228
16,001
Sale of investments
1,783
—
41,558
—
Proceeds from notes receivable
—
—
5,000
—
Other
(64
)
(10
)
(108
)
(21
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(75,634
)
(72,536
)
(104,951
)
(126,678
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
13,013
(62
)
111,442
98,335
Issuance of notes and bank borrowings, net
of issuance costs
150,000
70,000
225,000
155,000
Payments on debt, finance leases, and
associated costs
(136,927
)
(19,037
)
(238,824
)
(122,304
)
Other
(225
)
(160
)
(2,322
)
(3,563
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
25,861
50,741
95,296
127,468
Effect of exchange rate changes on cash
and cash equivalents
253
(13
)
652
259
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
(10,123
)
836
(4,609
)
17,266
Cash, cash equivalents and restricted cash
at beginning of period
68,683
74,719
63,169
58,289
Cash, cash equivalents and restricted cash
at end of period
$
58,560
$
75,555
$
58,560
$
75,555
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
LTM 2Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Net income (loss)
$
(65,353
)
$
(32,412
)
$
(24,586
)
$
49,089
$
(57,444
)
$
(77,434
)
Interest expense, net of capitalized
interest
28,424
6,912
7,389
8,191
5,932
5,170
Income tax provision (benefit)
22,036
9,866
10,708
(421
)
1,883
11,502
Amortization
99,531
19,595
22,708
28,077
29,151
27,965
EBITDA
84,638
3,961
16,219
84,936
(20,478
)
(32,797
)
Fair value adjustments, net
7,824
3,922
(10,561
)
1,396
13,067
62,810
Foreign exchange (gain) loss
311
(627
)
1,154
(123
)
(93
)
507
Asset retirement obligation accretion
15,306
4,073
3,993
3,643
3,597
3,529
Inventory adjustments and write-downs
46,520
1,603
14,187
8,725
22,005
9,763
(Gain) loss on sale of assets and
securities
(49,346
)
12,622
9
(62,064
)
87
(621
)
RMC bankruptcy distribution
(3,167
)
(1,516
)
—
(1,651
)
—
—
Gain on debt extinguishment
(2,961
)
(2,961
)
—
—
—
—
COVID-19 costs
526
21
56
155
294
318
Other adjustments
1,808
1,137
70
782
(181
)
(179
)
Adjusted EBITDA
$
101,459
$
22,235
$
25,127
$
35,799
$
18,298
$
43,330
Revenue
$
757,642
$
177,235
$
187,298
$
210,116
$
182,993
$
204,123
Adjusted EBITDA Margin
13
%
13
%
13
%
17
%
10
%
21
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Net income (loss)
$
(32,412
)
$
(24,586
)
$
49,089
$
(57,444
)
$
(77,434
)
Fair value adjustments, net
3,922
(10,561
)
1,396
13,067
62,810
Foreign exchange loss (gain)
154
1,991
458
(313
)
513
(Gain) loss on sale of assets and
securities
12,622
9
(62,064
)
87
(621
)
RMC bankruptcy distribution
(1,516
)
—
(1,651
)
—
—
Gain on debt extinguishment
(2,961
)
—
—
—
—
COVID-19 costs
21
56
155
294
318
Other adjustments
1,137
70
782
(181
)
(179
)
Tax effect of adjustments
(1,120
)
(37
)
(5,616
)
(231
)
1,488
Adjusted net income (loss)
$
(20,153
)
$
(33,058
)
$
(17,451
)
$
(44,721
)
$
(13,105
)
Adjusted net income (loss) per share -
Basic
$
(0.06
)
$
(0.11
)
$
(0.06
)
$
(0.16
)
$
(0.05
)
Adjusted net income (loss) per share -
Diluted
$
(0.06
)
$
(0.11
)
$
(0.06
)
$
(0.16
)
$
(0.05
)
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Cash flow from operations
$
39,397
$
(35,003
)
$
28,516
$
(19,117
)
$
22,644
Capital expenditures
85,581
74,048
113,094
96,602
73,156
Free cash flow
$
(46,184
)
$
(109,051
)
$
(84,578
)
$
(115,719
)
$
(50,512
)
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
2Q 2023
1Q 2023
4Q 2022
3Q 2022
2Q 2022
Cash provided by (used in) operating
activities
$
39,397
$
(35,003
)
$
28,516
$
(19,117
)
$
22,644
Changes in operating assets and
liabilities:
Receivables
913
(3,050
)
(353
)
119
4,882
Prepaid expenses and other
(4,260
)
496
699
2,075
(3,523
)
Inventories
18,738
17,635
8,798
13,715
11,263
Accounts payable and accrued
liabilities
(61,708
)
26,145
(18,022
)
1,880
(5,493
)
Operating cash flow before changes in
working capital
$
(6,920
)
$
6,223
$
19,638
$
(1,328
)
$
29,773
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 Three Months Ended
December 31, 2022
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)
$
55,325
$
50,211
$
49,887
$
30,716
$
1,133
$
187,272
Amortization
(8,281
)
(6,034
)
(10,672
)
(1,748
)
(1,133
)
(27,868
)
Costs applicable to sales
$
47,044
$
44,177
$
39,215
$
28,968
$
—
$
159,404
Inventory Adjustments
103
(8,429
)
(103
)
(106
)
—
(8,535
)
By-product credit
—
—
(59
)
(413
)
—
(472
)
Adjusted costs applicable to
sales
$
47,147
$
35,748
$
39,053
$
28,449
$
—
$
150,397
Metal Sales
Gold ounces
25,252
11,646
30,863
20,428
—
88,189
Silver ounces
1,490,444
974,810
—
17,387
—
2,482,641
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
55
%
52
%
100
%
100
%
Silver
45
%
48
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
1,027
$
1,596
$
1,265
$
1,393
$
1,270
Silver ($/oz)
$
14.23
$
17.60
$
—
$
15.57
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2022
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)
$
51,271
$
57,681
$
50,658
$
31,078
$
1,260
$
191,948
Amortization
(8,027
)
(6,921
)
(10,369
)
(2,191
)
(1,260
)
(28,768
)
Costs applicable to sales
$
43,244
$
50,760
$
40,289
$
28,887
$
—
$
163,180
Inventory Adjustments
(445
)
(21,331
)
(28
)
(152
)
—
(21,956
)
By-product credit
—
—
(97
)
(153
)
—
(250
)
Adjusted costs applicable to
sales
$
42,799
$
29,429
$
40,164
$
28,582
$
—
$
140,974
Metal Sales
Gold ounces
24,378
8,725
27,609
21,070
—
81,782
Silver ounces
1,554,288
733,383
—
7,931
—
2,295,602
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
54
%
54
%
100
%
100
%
Silver
46
%
46
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
948
$
1,821
$
1,455
$
1,357
$
1,318
Silver ($/oz)
$
12.67
$
18.46
$
—
$
14.52
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2022
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)
$
58,800
$
42,914
$
48,680
$
26,600
$
1,259
$
178,253
Amortization
(9,737
)
(4,961
)
(9,369
)
(2,248
)
(1,259
)
(27,574
)
Costs applicable to sales
$
49,063
$
37,953
$
39,311
$
24,352
$
—
$
150,679
Inventory Adjustments
45
(9,490
)
(362
)
147
—
(9,660
)
By-product credit
—
—
(233
)
(124
)
—
(357
)
Adjusted costs applicable to
sales
$
49,108
$
28,463
$
38,716
$
24,375
$
—
$
140,662
Metal Sales
Gold ounces
29,285
8,071
27,666
19,764
—
84,786
Silver ounces
1,854,695
682,677
—
5,828
—
2,543,200
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
51
%
50
%
100
%
100
%
Silver
49
%
50
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
855
$
1,763
$
1,399
$
1,233
$
1,207
Silver ($/oz)
$
12.97
$
20.85
$
—
$
15.09
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales for Updated 2023 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
233,198
$
183,769
$
118,406
Amortization
(37,547
)
(26,764
)
(6,319
)
Costs applicable to sales
$
195,651
$
157,005
$
112,087
By-product credit
—
—
(3,878
)
Adjusted costs applicable to
sales
$
195,651
$
157,005
$
108,209
Metal Sales
Gold ounces
104,618
90,673
88,732
Silver ounces
6,784,929
163,607
Revenue Split
Gold
50%
100%
100%
Silver
50%
Adjusted costs applicable to
sales
Gold ($/oz)
$900 - $1,050
$1,650 - $1,750
$1,200 - $1,350
Silver ($/oz)
$14.25 - $15.25
—
Reconciliation of Costs
Applicable to Sales for Previous 2023 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
240,135
$
198,827
$
115,365
Amortization
(39,570
)
(39,229
)
(5,803
)
Costs applicable to sales
$
200,565
$
159,598
$
109,562
By-product credit
—
—
(759
)
Adjusted costs applicable to
sales
$
200,565
$
159,598
$
108,803
Metal Sales
Gold ounces
106,452
106,863
87,388
Silver ounces
6,802,113
—
32,346
Revenue Split
Gold
51%
100%
100%
Silver
49%
Adjusted costs applicable to
sales
Gold ($/oz)
$900 - $1,050
$1,500 - $1,700
$1,200 - $1,350
Silver ($/oz)
$14.25 - $15.25
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230809908404/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
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From May 2024 to Jun 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Jun 2023 to Jun 2024