Stronger quarter-over-quarter revenue and cost
performance
Rochester expansion now complete; significant
production increase now underway
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported third quarter 2023 financial results, including revenue of
$195 million and cash flow from operating activities of $(2)
million. The Company reported GAAP net loss from continuing
operations of $21 million, or $0.06 per share. On an adjusted
basis1, Coeur reported EBITDA of $31 million, cash flow from
operating activities before changes in working capital of $14
million and net loss from continuing operations of $19 million, or
$0.05 per share.
Key Highlights
- Increased revenue and adjusted EBITDA driven by stronger
gold production and lower costs – Revenue increased 10% and
adjusted EBITDA increased 38% quarter-over-quarter, due to a 15%
quarter-over-quarter increase in gold production and a 13%
quarter-over-quarter decline in adjusted costs applicable to sales
per gold ounce
- Rochester expansion project now complete – First
production from the new leach pad and process plant was achieved in
mid-September. The legacy crushing circuit is now being
decommissioned in preparation of mining expected to begin in that
location in 2024
- Material step-up in Rochester production now occurring –
During the month of October, Rochester recovered 537,000 ounces of
silver and 8,050 ounces of gold, which is more than double the
year-to-date monthly average silver production and more than triple
the year-to-date monthly average gold production
- Gold production and cost guidance updated; silver guidance
remains unchanged – A stronger anticipated fourth quarter at
Wharf is expected to offset adjusted gold production guidance at
Kensington. The low end of total 2024 production guidance remains
unchanged and the overall range has narrowed to 304,000 - 342,500
ounces. Additionally, Kensington cost guidance has been revised to
reflect the impact of revised production expectations. Silver
full-year production guidance of 10 - 12 million ounces remains
unchanged
- Balance sheet and hedging initiatives supporting remaining
capital requirements – With elevated capital investment levels
related to the recently completed Rochester expansion expected
through year-end, Coeur ended the quarter with total liquidity2 of
approximately $280 million. Realized and unrealized gains from the
Company’s 2023 gold and silver hedges total nearly $20 million at
quarter-end, providing meaningful downside protection through this
period of capital intensity
“Our overall gold production increased 15% quarter-over-quarter
while costs applicable to sales per ounce of gold declined by 13%,
which led to a 38% increase in adjusted EBITDA,” said Mitchell J.
Krebs, President and Chief Executive Officer. “This production
growth was driven by an 87% increase at our Kensington gold
operation in Alaska and a 16% increase in gold production at our
Palmarejo gold-silver mine in northern Mexico. Despite slightly
lower gold production from our Wharf mine and the ongoing
transition to the newly expanded Rochester infrastructure, the
third quarter represented a marked improvement over the prior
quarter and sets up the Company to deliver a strong fourth quarter
and to achieve our full-year guidance.
“With the Rochester expansion complete, we are now seeing
materially higher production levels, a trend that is expected to
continue throughout the current quarter and into next year to help
drive strong Company-wide production growth, lower costs, and a
transition to positive free cash flow during 2024. Commissioning
and ramp-up activities will continue over the remainder of the year
and into the first half of 2024, which is expected to result in one
of the world’s largest operations of its kind and become the
country’s largest source of domestically produced and refined
silver.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Gold Sales
$
139.5
$
121.4
$
127.1
$
157.6
$
139.2
Silver Sales
$
55.1
$
55.9
$
60.2
$
52.5
$
43.8
Consolidated Revenue
$
194.6
$
177.2
$
187.3
$
210.1
$
183.0
Costs Applicable to Sales3
$
147.9
$
139.6
$
153.1
$
159.3
$
163.2
General and Administrative
Expenses
$
9.5
$
9.8
$
12.1
$
10.2
$
9.7
Net Income (Loss)
$
(21.1
)
$
(32.4
)
$
(24.6
)
$
49.0
$
(57.4
)
Net Income (Loss) Per Share
$
(0.06
)
$
(0.10
)
$
(0.08
)
$
0.17
$
(0.21
)
Adjusted Net Income (Loss)1
$
(18.6
)
$
(20.2
)
$
(33.1
)
$
(17.5
)
$
(44.7
)
Adjusted Net Income (Loss)1 Per
Share
$
(0.05
)
$
(0.06
)
$
(0.11
)
$
(0.06
)
$
(0.16
)
Weighted Average Shares
Outstanding
356.7
333.1
301.0
284.5
278.1
EBITDA1
$
15.3
$
4.0
$
16.2
$
84.9
$
(20.5
)
Adjusted EBITDA1
$
30.6
$
22.2
$
25.1
$
35.9
$
18.3
Cash Flow from Operating
Activities
$
(2.4
)
$
39.4
$
(35.0
)
$
28.5
$
(19.1
)
Capital Expenditures
$
112.3
$
85.6
$
74.0
$
113.1
$
96.6
Free Cash Flow1
$
(114.7
)
$
(46.2
)
$
(109.0
)
$
(84.5
)
$
(115.7
)
Cash, Equivalents & Short-Term
Investments
$
53.2
$
56.8
$
67.0
$
61.5
$
75.4
Total Debt4
$
512.2
$
469.4
$
494.1
$
515.9
$
635.7
Average Realized Price Per Ounce –
Gold
$
1,788
$
1,809
$
1,794
$
1,787
$
1,702
Average Realized Price Per Ounce –
Silver
$
24.88
$
23.91
$
23.25
$
21.14
$
19.09
Gold Ounces Produced
78,617
68,406
69,039
87,727
83,438
Silver Ounces Produced
2.3
2.4
2.5
2.4
2.4
Gold Ounces Sold
78,015
67,090
70,866
88,189
81,782
Silver Ounces Sold
2.2
2.3
2.6
2.5
2.3
Adjusted CAS per AuOz1
$
1,273
$
1,464
$
1,381
$
1,270
$
1,318
Adjusted CAS per AgOz1
$
17.85
$
16.77
$
15.83
$
15.57
$
14.52
Financial Results
Third quarter 2023 revenue totaled $195 million compared to $177
million in the prior period and $183 million in the third quarter
of 2022. The Company produced 78,617 and 2.3 million ounces of gold
and silver, respectively, during the quarter. Metal sales for the
quarter totaled 78,015 ounces of gold and 2.2 million ounces of
silver. Average realized gold and silver prices for the quarter
were $1,788 and $24.88 per ounce, respectively, compared to $1,809
and $23.91 per ounce in the prior period and $1,702 and $19.09 per
ounce in the third quarter of 2022.
Gold and silver sales represented 72% and 28% of quarterly
revenue, respectively, compared to 68% and 32% in the prior period.
The Company’s U.S. operations accounted for approximately 60% of
third quarter revenue compared to 59% in the second quarter of
2023.
Costs applicable to sales3 increased 6% quarter-over-quarter to
$148 million, largely due to an $8 million LCM adjustment at
Rochester. General and administrative expenses continued to trend
lower at less than $10 million in the quarter.
Coeur invested approximately $16 million ($12 million expensed
and $3 million capitalized) in exploration during the quarter,
compared to roughly $5 million ($3 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 $6.1
million during the third quarter. Cash income and mining taxes paid
during the period totaled approximately $6.6 million. As of
December 31, 2022, Companywide U.S. net operating loss
carryforwards totaled approximately $535 million.
Quarterly operating cash flow totaled $(2) million compared to
$39 million in the prior period, mainly driven by unfavorable
changes in working capital, timing of prepayments and the
semi-annual interest payments on the Company’s 2029 5.125% Senior
Notes.
Capital expenditures increased 31% quarter-over-quarter to $112
million, which was due to the timing of payments relating to the
Rochester expansion. Rochester expansion-related expenditures
totaled $76 million during the third quarter compared to $55
million in the second quarter. Sustaining and development capital
expenditures accounted for approximately $34 million and $78
million, or 31% and 69%, respectively, of Coeur’s total capital
investment during the quarter.
Rochester Expansion Project Update
Construction of the new three-stage crushing circuit is now
complete and first production from the new leach pad and process
plant began in mid-September. Commissioning of the process plant is
complete and commissioning of the new crusher corridor is underway,
with ramp-up expected throughout the remainder of 2023 and into the
first half of 2024.
Once operating at full capacity, throughput levels are expected
to average 32 million tons per year, which is approximately 2.5
times higher than historical levels, making Rochester one of the
largest open pit heap leach operations in the world. The total
estimated capital for the project remains at $710 - $730
million.
Balance Sheet and Liquidity Update
Coeur ended the quarter with total liquidity of approximately
$280 million, including $53 million of cash, $220 million of
available capacity under its $390 million revolving credit facility
(“RCF”)2, and $7 million of marketable securities.
During the third quarter, Coeur satisfied $11 million of the $25
million associated with the prepayment agreement at Kensington as
well as the full $10 million prepayment agreements at both
Rochester and Wharf, respectively. Additionally, the Company
exercised options under amended agreements for a $13 million
prepayment for deliveries of gold concentrate from Wharf as well as
an $18 million prepayment for deliveries of gold and silver doré
from Rochester.
Hedging Update
The Company did not execute any additional hedges during the
third quarter. Coeur’s hedging strategy continues to focus on
mitigating price risk during this period of capital intensity. An
overview of the hedges in place is outlined below.
4Q 2023
Gold Ounces Hedged
55,749
Avg. Forward Price ($/oz)
$1,977
Silver Ounces Hedged
1,245,000
Avg. Forward Price ($/oz)
$25.47
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 third
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 $9 million (approximately $8 million in costs
applicable to sales2 and $1 million of amortization).
Operations
Third quarter 2023 highlights for each of the Company’s
operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Tons milled
501,722
472,622
533,606
554,247
538,750
Average gold grade (oz/t)
0.055
0.056
0.052
0.051
0.049
Average silver grade (oz/t)
3.67
4.10
4.02
3.16
3.53
Average recovery rate – Au
97.6
%
87.4
%
90.1
%
92.4
%
93.3
%
Average recovery rate – Ag
86.9
%
83.5
%
81.7
%
85.0
%
84.9
%
Gold ounces produced
26,870
23,216
25,118
25,935
24,807
Silver ounces produced (000’s)
1,601
1,617
1,752
1,489
1,612
Gold ounces sold
26,018
22,207
25,970
25,252
24,378
Silver ounces sold (000’s)
1,534
1,561
1,795
1,490
1,554
Average realized price per gold
ounce
$
1,499
$
1,589
$
1,564
$
1,509
$
1,447
Average realized price per silver
ounce
$
24.96
$
23.98
$
23.23
$
21.10
$
19.01
Metal sales
$
77.3
$
72.7
$
82.3
$
69.5
$
64.8
Costs applicable to sales3
$
48.1
$
46.6
$
49.3
$
47.1
$
43.2
Adjusted CAS per AuOz1
$
917
$
1,023
$
926
$
1,027
$
948
Adjusted CAS per AgOz1
$
15.56
$
15.16
$
13.94
$
14.23
$
12.67
Exploration expense
$
2.2
$
1.6
$
1.3
$
1.5
$
1.8
Cash flow from operating
activities
$
22.6
$
18.6
$
11.5
$
18.9
$
12.9
Sustaining capital expenditures
(excludes capital lease payments)
$
8.4
$
10.7
$
8.6
$
8.1
$
10.8
Development capital
expenditures
$
2.4
$
1.2
$
1.6
$
—
$
—
Total capital expenditures
$
10.8
$
11.9
$
10.2
$
8.1
$
10.8
Free cash flow1
$
11.8
$
6.7
$
1.3
$
10.8
$
2.1
Operational
- Gold and silver production totaled 26,870 and 1.6 million
ounces, respectively, compared to 23,216 and 1.6 million ounces in
the prior period and 24,807 and 1.6 million ounces in the third
quarter of 2022
- Production benefited from higher average gold and silver
recoveries as well as increased mill throughput, offset by lower
average grades
- During the third quarter, the Company completed its high
compression thickener and open pit backfill project at Palmarejo
under budget and ahead of schedule. The project increases tailings
and waste rock storage capacity to accommodate future growth while
decreasing process water requirements by nearly 20%
Financial
- Adjusted CAS1 for gold and silver on a co-product basis
decreased 10% and increased 3% quarter-over-quarter to $917 and
$15.56 per ounce, respectively, driven by higher gold sales, lower
silver sales and a stronger Mexican Peso
- Capital expenditures decreased 9% quarter-over-quarter to $11
million, reflecting completion of the open pit tailings backfill
project
- Free cash flow1 totaled $12 million compared to $7 million in
the prior period
Exploration
- Exploration investment increased by 38% over the prior period
to approximately $2 million (substantially all expensed)
- The focus of exploration has transitioned from primarily
mapping and sampling to more intensive drilling from four rigs
during the quarter compared to one rig in the previous quarter. Two
rigs in the Hidalgo - Morelos area located at the northwest
extension of Independencia targeted the extension of the Libertad
vein and the San Juan vein along strike and down dip. An additional
drill rig in the Zapata - Guadalupe area focused on finding the
intersection of structures where there is potential for a
higher-grade shoot. The fourth rig focused on the Las Animas
target, aimed at extending the resource along strike and down
dip
- Mapping and sampling is also continuing to the east of the
current operation and outside of the area of interest relating to
the Franco-Nevada gold stream. The goal of the mapping and sampling
program is to build a pipeline of targets for drilling in the
coming years
- Coeur expects a total of five drill rigs to be active at
Palmarejo in the fourth quarter, focused on expansion drilling at
the Hidalgo, Las Animas and Zapata - Guadalupe zones
Other
- Approximately 41% 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
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Ore tons placed
3,487,173
2,690,840
2,456,586
2,754,118
3,551,353
Average silver grade (oz/t)
0.50
0.42
0.45
0.68
0.37
Average gold grade (oz/t)
0.003
0.003
0.003
0.003
0.004
Silver ounces produced (000’s)
608
683
761
973
745
Gold ounces produced
4,459
6,314
8,155
11,589
8,761
Silver ounces sold (000’s)
606
695
770
975
733
Gold ounces sold
4,432
6,493
8,349
11,646
8,725
Average realized price per silver
ounce
$
24.63
$
23.70
$
23.19
$
21.10
$
19.10
Average realized price per gold
ounce
$
1,967
$
1,946
$
1,922
$
1,893
$
1,852
Metal sales
$
23.6
$
29.1
$
33.9
$
42.6
$
30.2
Costs applicable to sales3
$
30.5
$
26.1
$
42.9
$
44.1
$
50.8
Adjusted CAS per AgOz1
$
23.64
$
20.39
$
20.24
$
17.60
$
18.46
Adjusted CAS per AuOz1
$
1,899
$
1,646
$
1,655
$
1,596
$
1,821
Prepayment, working capital cash
flow
$
7.5
$
10.0
$
—
$
—
$
—
Exploration expense
$
0.3
$
0.3
$
0.4
$
0.6
$
0.6
Cash flow from operating
activities
$
(17.3
)
$
(3.8
)
$
(13.5
)
$
(5.5
)
$
(13.7
)
Sustaining capital expenditures
(excludes capital lease payments)
$
7.7
$
5.1
$
4.3
$
3.0
$
5.1
Development capital
expenditures
$
76.7
$
56.4
$
47.7
$
89.3
$
68.9
Total capital expenditures
$
84.4
$
61.5
$
52.0
$
92.3
$
74.0
Free cash flow1
$
(101.7
)
$
(65.3
)
$
(65.5
)
$
(97.8
)
$
(87.7
)
Operational
- Silver and gold production totaled 607,735 and 4,459 ounces,
respectively, compared to 682,656 and 6,314 ounces in the prior
period and 744,880 and 8,761 ounces in the third quarter of 2022.
Lower production quarter-over-quarter is a result of the timing of
production from the new leach pad related to startup on the new
process plant
- Tons placed increased 30% quarter-over-quarter to roughly 3.5
million, roughly 80% of which were placed on the new leach pad
- On November 1, 2023 Coeur commenced the decommissioning of the
existing crushing circuit in preparation to begin mining in the
area at the beginning of 2024 and to affect a smooth transition of
the crusher workforce to the new crushing circuit
Financial
- Third quarter adjusted CAS1 figures in the table above and
highlighted below exclude the impact of an LCM adjustment totaling
approximately $8 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
$1,899 and $23.64 per ounce, respectively, due to continued higher
costs as well as lower metal sales
- Capital expenditures increased 37% quarter-over-quarter to $84
million, reflecting timing of spending related to the Rochester
expansion project
- Free cash flow1 totaled $(102) million compared to $(65)
million in the prior period
Exploration
- Exploration investment decreased 17% quarter-over-quarter to
approximately $1 million ($0.3 million expensed and $0.2 million
capitalized)
- Exploration activities focused on geologic logging,
interpretation and geological modeling. A new geological model for
the East Rochester pit is almost complete which clearly illustrates
the controls to mineralization and places the Rochester - Nevada
Packard corridor into geological context. In addition, the model
has outlined compelling new exploration targets for follow-up in
2024 and beyond
- 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 due to timing of
construction completion
- 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,
which reflects Coeur’s estimate to complete the expansion
project
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Tons milled
167,950
152,907
153,337
183,410
175,246
Average gold grade (oz/t)
0.16
0.09
0.15
0.18
0.18
Average recovery rate
92.6
%
90.9
%
91.2
%
92.4
%
91.1
%
Gold ounces produced
24,614
13,193
20,296
30,335
28,214
Gold ounces sold
24,516
13,273
20,902
30,863
27,609
Average realized price per gold ounce,
gross
$
1,956
$
1,991
$
1,983
$
1,942
$
1,808
Treatment and refining charges per gold
ounce
$
60
$
142
$
63
$
38
$
33
Average realized price per gold ounce,
net
$
1,896
$
1,849
$
1,920
$
1,904
$
1,775
Metal sales
$
46.5
$
24.6
$
40.2
$
58.8
$
49.1
Costs applicable to sales3
$
38.3
$
39.1
$
37.4
$
39.2
$
40.3
Adjusted CAS per AuOz1
$
1,543
$
2,927
$
1,775
$
1,265
$
1,455
Prepayment, working capital cash
flow
$
(10.7
)
$
9.9
$
(9.9
)
$
9.6
$
(9.6
)
Exploration expense
$
2.9
$
2.3
$
1.0
$
2.2
$
2.8
Cash flow from operating
activities
$
(4.4
)
$
(3.7
)
$
(4.8
)
$
20.8
$
(0.2
)
Sustaining capital expenditures
(excludes capital lease payments)
$
15.8
$
11.7
$
10.7
$
7.7
$
7.1
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
15.8
$
11.7
$
10.7
$
7.7
$
7.1
Free cash flow1
$
(20.2
)
$
(15.4
)
$
(15.5
)
$
13.1
$
(7.3
)
Operational
- Gold production totaled 24,614 ounces compared to 13,193 ounces
in the prior period and 28,214 ounces in the third quarter of
2022
- Higher production during the quarter was driven by improved
access to high grade stopes as a result of the resolution of water
inflow challenges and improvements in the paste backfill
process
Financial
- Adjusted CAS1 totaled $1,543 per ounce compared to $2,927 per
ounce in the prior period, reflecting increased metal sales
- Capital expenditures increased 35% quarter-over-quarter to $16
million due to increased capital development to support the ongoing
multi-year exploration program aimed at extending mine life
- Free cash flow1 totaled $(20) million compared to $(15) million
in the prior period
Exploration
- Exploration investment totaled approximately $6 million ($3
million expensed and $3 million capitalized), compared to $5
million ($2 million expensed and $3 million capitalized) in the
prior period
- Up to four underground drill rigs were focused on expansion and
infill drilling at Elmira, Kensington and Johnson with one surface
rig scout-drilling the Raven deposit. Drilling at both Upper and
Lower Kensington is continuing to demonstrate the continuation of
structures down dip and along strike
- At Lower Kensington, some of the best grade thickness
intercepts ever encountered were seen during the quarter, as
highlighted in the Company’s September 12, 2023 exploration update.
In addition, exploration has discovered a hanging wall splay and is
starting to outline linking structures between the main vein and
this splay, which presents the potential for higher-grade plunging
shoots. In Upper Kensington, a new zone, Zone 30C, has been
discovered that has so far been delineated over a strike length of
approximately 950 feet and 800 feet down dip
- In the fourth quarter, the Company expects to continue with
infill and expansion drilling from underground in addition to
continuing geological modeling to support year-end resource
calculations
Guidance
- Improved production and CAS1 trends at Kensington are expected
to continue in the fourth quarter, but the Company has refined 2023
gold production and cost guidance to reflect the cumulative impact
of paste backfill challenges earlier in the year
- Full-year 2023 production is now expected to be 81,000 - 85,000
(previously 84,000 - 95,000) gold ounces
- CAS1 in 2023 are now expected to be $1,850 - $1,950 (previously
$1,650 - $1,750) per gold ounce
- 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)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Ore tons placed
1,254,267
1,041,846
1,156,794
975,994
1,353,071
Average gold grade (oz/t)
0.023
0.022
0.032
0.024
0.019
Gold ounces produced
22,674
25,683
15,470
19,868
21,656
Silver ounces produced (000’s)
69
88
21
9
13
Gold ounces sold
23,049
25,117
15,645
20,428
21,070
Silver ounces sold (000’s)
74
82
24
17
8
Average realized price per gold
ounce
$
1,966
$
1,946
$
1,938
$
1,895
$
1,838
Metal sales
$
47.1
$
50.8
$
30.9
$
39.0
$
38.9
Costs applicable to sales3
$
31.0
$
27.8
$
23.5
$
28.9
$
28.9
Adjusted CAS per AuOz1
$
1,267
$
1,035
$
1,466
$
1,393
$
1,357
Prepayment, working capital cash
flow
$
2.5
$
10.0
$
—
$
—
$
—
Exploration expense
$
—
$
—
$
—
$
—
$
—
Cash flow from operating
activities
$
19.5
$
33.8
$
1.9
$
10.3
$
6.9
Sustaining capital expenditures
(excludes capital lease payments)
$
0.6
$
0.1
$
—
$
0.7
$
0.3
Development capital
expenditures
$
0.1
$
0.1
$
0.1
$
0.1
$
0.2
Total capital expenditures
$
0.7
$
0.2
$
0.1
$
0.8
$
0.5
Free cash flow1
$
18.8
$
33.6
$
1.8
$
9.5
$
6.4
Operational
- Gold production decreased 12% quarter-over-quarter to 22,674
ounces, largely driven by the timing of ounces placed on the leach
pad in the second quarter. Year-over-year production increased
5%
Financial
- Adjusted CAS1 on a by-product basis increased 22%
quarter-over-quarter to $1,267 per ounce, largely driven by lower
metal sales
- Capital expenditures remained consistent quarter-over-quarter
at less than $1 million
- Free cash flow1 totaled $19 million compared to $34 million in
the prior period, reflecting lower 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 88,000 - 95,000
(previously 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 13 active rigs across all sites during the
second quarter, for a total investment of approximately $16 million
($12 million expensed and $3 million capitalized), compared to
roughly $5 million ($3 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 totaled
approximately $7 million in the third quarter.
Drilling recommenced at Silvertip late in the second quarter and
ramped up significantly during the third quarter with two surface
and two underground rigs active. The two underground rigs continued
to trace the Southern Silver Zone chimney along strike to the
southeast and down dip. These rigs were also well placed to
intersect the Saddle zone manto mineralization from underground,
and by the end of the quarter 34 of 35 holes had successfully
intersected mineralization (visual confirmation). Manto
mineralization forms along stratigraphic units and can be more
flat-lying, compared to chimney style mineralization which forms on
vertical or steeply dipping structures. Surface rigs were focused
on the Saddle zone immediately south of the known resource. The aim
for this program is to infill-drill previous scout drilling and
define a resource in the zone for the first time. The program was
successfully completed during the quarter with eight of nine holes
intersecting manto-style mineralization at the top of the limestone
package (the McDame Limestone) directly below the overlying
sediments (the Earn sediments). In addition to mineralization at
this contact, drilling showed the potential for stacked manto
horizons throughout the McDame limestone unit. The program also
indicated that the manto at the Saddle zone likely connects with
the manto in the Discovery zone and to the Southern Silver zone
chimney mineralization.
Two rigs are expected to be active in the fourth quarter with
the goal of expanding resources along strike and down dip at the
Southern Silver zone. The Company expects to invest $10 - $14
million in exploration in 2023 at Silvertip, of which roughly $6 -
$8 million is underground development.
2023 Guidance
The Company has made the following changes to its 2023 gold
production and cost guidance: (i) the low end of Wharf’s gold
production guidance has been revised upward; and (ii) Kensington’s
2023 gold production and cost guidance have been refined to reflect
the cumulative impact of paste backfill challenges at Kensington
earlier in the year.
2023 Production Guidance
Previous
Updated
Gold
Silver
Gold
Silver
(oz)
(K oz)
(oz)
(K oz)
Palmarejo
100,000 - 112,500
6,500 - 7,500
100,000 - 112,500
6,500 - 7,500
Rochester
35,000 - 50,000
3,500 - 4,500
35,000 - 50,000
3,500 - 4,500
Kensington
84,000 - 95,000
—
81,000 - 85,000
—
Wharf
85,000 - 95,000
—
88,000 - 95,000
—
Total
304,000 - 352,500
10,000 - 12,000
304,000 - 342,500
10,000 - 12,000
2023 Costs Applicable to Sales Guidance
Previous
Updated
Gold
Silver
Gold
Silver
($/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
$1,650 - $1,750
—
$1,850 - $1,950
—
Wharf (by-product)
$1,200 - $1,350
—
$1,200 - $1,350
—
The Company expects second half 2023 adjusted CAS1 at Rochester
to be similar to actual first half 2023 adjusted CAS1 as Coeur
completes and ramps up the expansion project.
2023 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures,
Sustaining
$148 - $168
Capital Expenditures,
Development
$230 - $264
Exploration, Expensed
$30 - $35
Exploration, Capitalized
$10 - $15
General & Administrative
Expenses
$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. 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 third quarter
2023 financial results on November 9, 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, Aoife
McGrath, Senior Vice President of Exploration, and other members of
management. A replay of the call will be available through November
16, 2023.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088
(International)
Conference ID:
214 52 78
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 cash flow, production growth, costs,
exploration and development efforts and plans, mine life extension,
the gold stream agreement at Palmarejo, expectations, plans, costs
and timing regarding the Rochester expansion 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 ramp-up of the Rochester
expansion project following completion takes longer than expected
and does not achieve planned performance, the risk that anticipated
production, cost and expense levels are not attained, the risks and
hazards inherent in the mining business (including risks inherent
in developing and expanding large-scale mining projects,
environmental hazards, industrial accidents, weather or
geologically-related conditions), changes in the market prices of
gold and silver and a sustained lower price or higher treatment and
refining charge environment, the uncertainties inherent in Coeur’s
production, exploration and development activities, including risks
relating to permitting and regulatory delays (including the impact
of government shutdowns) and mining law changes, ground conditions,
grade and recovery variability, any future labor disputes or work
stoppages (involving the Company and its subsidiaries or third
parties), the risk of adverse outcomes in litigation, the
uncertainties inherent in the estimation of mineral reserves and
resources, impacts from Coeur’s future acquisition of new mining
properties or businesses, the loss of access or insolvency of any
third-party refiner or smelter to whom Coeur markets its
production, materials and equipment availability, inflationary
pressures, continued access to financing sources, the effects of
environmental and other governmental regulations and government
shut-downs, the risks inherent in the ownership or operation of or
investment in mining properties or businesses in foreign countries,
Coeur’s ability to raise additional financing necessary to conduct
its business, make payments or refinance its debt, as well as other
uncertainties and risk factors set out in filings made from time to
time with the United States Securities and Exchange Commission, and
the Canadian securities regulators, including, without limitation,
Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual
results, developments and timetables could vary significantly from
the estimates presented. Readers are cautioned not to put undue
reliance on forward-looking statements. Coeur disclaims any intent
or obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Additionally, Coeur undertakes no obligation to comment on
analyses, expectations or statements made by third parties in
respect of Coeur, its financial or operating results or its
securities. This does not constitute an offer of any securities for
sale.
The scientific and technical information concerning our mineral
projects in this news release have been reviewed and approved by a
“qualified person” under Item 1300 of SEC Regulation S-K, namely
our Senior Director, Technical Services, Christopher Pascoe. For a
description of the key assumptions, parameters and methods used to
estimate mineral reserves and mineral resources, as well as data
verification procedures and a general discussion of the extent to
which the estimates may be affected by any known environmental,
permitting, legal, title, taxation, sociopolitical, marketing or
other relevant factors, please review the Technical Report
Summaries for each of the Company’s material properties which are
available at www.sec.gov.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information
determined under United States generally accepted accounting
principles (U.S. GAAP) with certain non-U.S. GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted EBITDA
margin, free cash flow, adjusted net income (loss), operating cash
flow before changes in working capital and adjusted costs
applicable to sales per ounce (gold and silver) or pound (zinc or
lead). We believe that these adjusted measures provide meaningful
information to assist management, investors and analysts in
understanding our financial results and assessing our prospects for
future performance. We believe these adjusted financial measures
are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We believe EBITDA,
adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted
net income (loss) and adjusted costs applicable to sales per ounce
(gold and silver) and pound (zinc and lead) are important measures
in assessing the Company’s overall financial performance. For
additional explanation regarding our use of non-U.S. GAAP financial
measures, please refer to our Form 10-K for the year ended December
31, 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 September 30, 2023, Coeur had $30
million in outstanding letters of credit and $140 million in
outstanding borrowings under its RCF. Future borrowing under the
RCF may be subject to certain financial covenants.
3.
Excludes amortization.
4.
Includes capital leases. Net of debt
issuance costs and premium received.
Average Spot Prices
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Average Gold Spot Price Per Ounce
$
1,928
$
1,976
$
1,890
$
1,726
$
1,729
Average Silver Spot Price Per Ounce
$
23.57
$
24.13
$
22.55
$
21.17
$
19.23
Average Zinc Spot Price Per Pound
$
1.10
$
1.15
$
1.42
$
1.36
$
1.49
Average Lead Spot Price Per Pound
$
0.98
$
0.96
$
0.97
$
0.95
$
0.90
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
September 30, 2023
December 31, 2022
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
53,223
$
61,464
Receivables
30,138
36,333
Inventory
66,704
61,831
Ore on leach pads
114,314
82,958
Equity securities
7,231
32,032
Prepaid expenses and other
25,556
25,814
297,166
300,432
NON-CURRENT ASSETS
Property, plant and equipment and mining
properties, net
1,639,248
1,389,755
Ore on leach pads
36,627
51,268
Restricted assets
8,735
9,028
Equity securities
—
12,120
Receivables
22,563
22,023
Other
65,413
61,517
TOTAL ASSETS
$
2,069,752
$
1,846,143
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
138,979
$
96,123
Accrued liabilities and other
116,562
92,863
Debt
22,127
24,578
Reclamation
5,796
5,796
283,464
219,360
NON-CURRENT LIABILITIES
Debt
490,114
491,355
Reclamation
202,220
196,635
Deferred tax liabilities
15,390
14,459
Other long-term liabilities
30,186
35,318
737,910
737,767
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 600,000,000 shares, 382,693,309 issued and outstanding
at September 30, 2023 and 295,697,624 at December 31, 2022
3,827
2,957
Additional paid-in capital
4,128,553
3,891,265
Accumulated other comprehensive income
(loss)
11,654
12,343
Accumulated deficit
(3,095,656
)
(3,017,549
)
1,048,378
889,016
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
2,069,752
$
1,846,143
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
In thousands, except share
data
Revenue
$
194,583
$
182,993
$
559,116
$
575,520
COSTS AND EXPENSES
Costs applicable to sales(1)
147,903
163,180
440,596
447,126
Amortization
22,884
29,151
65,187
83,549
General and administrative
9,512
9,722
31,384
29,281
Exploration
12,437
8,406
20,007
19,103
Pre-development, reclamation, and
other
8,680
9,249
29,618
29,839
Total costs and expenses
201,416
219,708
586,792
608,898
OTHER INCOME (EXPENSE), NET
Gain on debt extinguishment
774
—
3,735
—
Fair value adjustments, net
(2,010
)
(13,067
)
4,629
(65,272
)
Interest expense, net of capitalized
interest
(7,402
)
(5,932
)
(21,703
)
(15,670
)
Other, net
459
153
(10,421
)
2,203
Total other income (expense), net
(8,179
)
(18,846
)
(23,760
)
(78,739
)
Income (loss) before income and mining
taxes
(15,012
)
(55,561
)
(51,436
)
(112,117
)
Income and mining tax (expense)
benefit
(6,097
)
(1,883
)
(26,671
)
(15,079
)
NET INCOME (LOSS)
$
(21,109
)
$
(57,444
)
$
(78,107
)
$
(127,196
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges
7,227
29,060
7,141
58,087
Reclassification adjustments for realized
(gain) loss on cash flow hedges
(4,920
)
(9,910
)
(7,830
)
(11,181
)
Other comprehensive income (loss)
2,307
19,150
(689
)
46,906
COMPREHENSIVE INCOME (LOSS)
$
(18,802
)
$
(38,294
)
$
(78,796
)
$
(80,290
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
(0.06
)
$
(0.21
)
$
(0.24
)
$
(0.47
)
Diluted
$
(0.06
)
$
(0.21
)
$
(0.24
)
$
(0.47
)
(1) Excludes amortization.
COEUR MINING, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(21,109
)
$
(57,444
)
$
(78,107
)
$
(127,196
)
Adjustments:
Amortization
22,884
29,151
65,187
83,549
Accretion
4,153
3,596
12,219
10,588
Deferred taxes
(3,872
)
(4,730
)
1,536
(12,288
)
Gain on debt extinguishment
(774
)
—
(3,735
)
—
Fair value adjustments, net
2,010
13,067
(4,629
)
62,133
Stock-based compensation
2,635
2,705
8,462
7,319
Loss on the disposition of assets
19
—
12,650
—
Write-downs
7,727
21,204
22,467
38,018
Deferred revenue recognition
(143
)
(10,167
)
(25,358
)
(10,723
)
Other
657
1,290
2,798
824
Changes in operating assets and
liabilities:
Receivables
(478
)
(119
)
1,659
4,099
Prepaid expenses and other current
assets
(3,000
)
(2,075
)
764
939
Inventory and ore on leach pads
(18,620
)
(13,715
)
(54,993
)
(42,650
)
Accounts payable and accrued
liabilities
5,528
(1,880
)
41,091
(17,512
)
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
(2,383
)
(19,117
)
2,011
(2,900
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(112,273
)
(96,602
)
(271,902
)
(239,260
)
Proceeds from the sale of assets
152
—
8,380
16,001
Sale of investments
—
40,469
41,558
40,469
Proceeds from notes receivable
—
—
5,000
—
Other
(63
)
(42
)
(171
)
(63
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(112,184
)
(56,175
)
(217,135
)
(182,853
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
57,522
—
168,964
98,335
Issuance of notes and bank borrowings, net
of issuance costs
163,000
100,000
388,000
255,000
Payments on debt, finance leases, and
associated costs
(109,268
)
(23,211
)
(348,092
)
(145,515
)
Other
(23
)
(2
)
(2,345
)
(3,565
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
111,231
76,787
206,527
204,255
Effect of exchange rate changes on cash
and cash equivalents
(278
)
(234
)
374
25
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
(3,614
)
1,261
(8,223
)
18,527
Cash, cash equivalents and restricted cash
at beginning of period
58,560
75,555
63,169
58,289
Cash, cash equivalents and restricted cash
at end of period
$
54,946
$
76,816
$
54,946
$
76,816
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
LTM 3Q 2023
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Net income (loss)
$
(29,018
)
$
(21,109
)
$
(32,412
)
$
(24,586
)
$
49,089
$
(57,444
)
Interest expense, net of capitalized
interest
29,894
7,402
6,912
7,389
8,191
5,932
Income tax provision (benefit)
26,250
6,097
9,866
10,708
(421
)
1,883
Amortization
93,264
22,884
19,595
22,708
28,077
29,151
EBITDA
120,390
15,274
3,961
16,219
84,936
(20,478
)
Fair value adjustments, net
(3,233
)
2,010
3,922
(10,561
)
1,396
13,067
Foreign exchange (gain) loss
(17
)
(421
)
(627
)
1,154
(123
)
(93
)
Asset retirement obligation accretion
15,862
4,153
4,073
3,993
3,643
3,597
Inventory adjustments and write-downs
33,449
8,934
1,603
14,187
8,725
22,005
(Gain) loss on sale of assets and
securities
(49,414
)
19
12,622
9
(62,064
)
87
RMC bankruptcy distribution
(3,167
)
—
(1,516
)
—
(1,651
)
—
Gain on debt extinguishment
(3,735
)
(774
)
(2,961
)
—
—
—
COVID-19 costs
246
14
21
56
155
294
Other adjustments
3,428
1,439
1,137
70
782
(181
)
Adjusted EBITDA
$
113,809
$
30,648
$
22,235
$
25,127
$
35,799
$
18,298
Revenue
$
769,232
$
194,583
$
177,235
$
187,298
$
210,116
$
182,993
Adjusted EBITDA Margin
15
%
16
%
13
%
13
%
17
%
10
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Net income (loss)
$
(21,109
)
$
(32,412
)
$
(24,586
)
$
49,089
$
(57,444
)
Fair value adjustments, net
2,010
3,922
(10,561
)
1,396
13,067
Foreign exchange loss (gain)
5
154
1,991
458
(313
)
(Gain) loss on sale of assets and
securities
19
12,622
9
(62,064
)
87
RMC bankruptcy distribution
—
(1,516
)
—
(1,651
)
—
Gain on debt extinguishment
(774
)
(2,961
)
—
—
—
COVID-19 costs
14
21
56
155
294
Other adjustments
1,439
1,137
70
782
(181
)
Tax effect of adjustments
(223
)
(1,120
)
(37
)
(5,616
)
(231
)
Adjusted net income (loss)
$
(18,619
)
$
(20,153
)
$
(33,058
)
$
(17,451
)
$
(44,721
)
Adjusted net income (loss) per share -
Basic
$
(0.05
)
$
(0.06
)
$
(0.11
)
$
(0.06
)
$
(0.16
)
Adjusted net income (loss) per share -
Diluted
$
(0.05
)
$
(0.06
)
$
(0.11
)
$
(0.06
)
$
(0.16
)
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Cash flow from operations
$
(2,383
)
$
39,397
$
(35,003
)
$
28,516
$
(19,117
)
Capital expenditures
112,273
85,581
74,048
113,094
96,602
Free cash flow
$
(114,656
)
$
(46,184
)
$
(109,051
)
$
(84,578
)
$
(115,719
)
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
3Q 2023
2Q 2023
1Q 2023
4Q 2022
3Q 2022
Cash provided by (used in) operating
activities
$
(2,383
)
$
39,397
$
(35,003
)
$
28,516
$
(19,117
)
Changes in operating assets and
liabilities:
Receivables
478
913
(3,050
)
(353
)
119
Prepaid expenses and other
3,000
(4,260
)
496
699
2,075
Inventories
18,620
18,738
17,635
8,798
13,715
Accounts payable and accrued
liabilities
(5,528
)
(61,708
)
26,145
(18,022
)
1,880
Operating cash flow before changes in
working capital
$
14,187
$
(6,920
)
$
6,223
$
19,638
$
(1,328
)
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
September 30, 2023
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
57,083
$
34,708
$
45,180
$
32,614
$
919
$
170,504
Amortization
(9,024
)
(4,176
)
(6,894
)
(1,588
)
(919
)
(22,601
)
Costs applicable to sales
$
48,059
$
30,532
$
38,286
$
31,026
$
—
$
147,903
Inventory Adjustments
(328
)
(7,788
)
(411
)
(16
)
—
(8,543
)
By-product credit
—
—
(57
)
(1,802
)
—
(1,859
)
Adjusted costs applicable to
sales
$
47,731
$
22,744
$
37,818
$
29,208
$
—
$
137,501
Metal Sales
Gold ounces
26,018
4,432
24,516
23,049
—
78,015
Silver ounces
1,533,975
606,083
—
73,677
—
2,213,735
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
50
%
37
%
100
%
100
%
Silver
50
%
63
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
917
$
1,899
$
1,543
$
1,267
$
1,273
Silver ($/oz)
$
15.56
$
23.64
$
—
$
17.85
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended June
30, 2023
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
54,608
$
29,717
$
43,950
$
29,634
$
1,021
$
158,930
Amortization
(8,017
)
(3,649
)
(4,801
)
(1,805
)
(1,021
)
(19,293
)
Costs applicable to sales
$
46,591
$
26,068
$
39,149
$
27,829
$
—
$
139,637
Inventory Adjustments
(209
)
(1,215
)
(239
)
77
—
(1,586
)
By-product credit
—
—
(63
)
(1,922
)
—
(1,985
)
Adjusted costs applicable to
sales
$
46,382
$
24,853
$
38,847
$
25,984
$
—
$
136,066
Metal Sales
Gold ounces
22,207
6,493
13,273
25,117
—
67,090
Silver ounces
1,560,743
694,657
—
82,013
—
2,337,413
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
49
%
43
%
100
%
100
%
Silver
51
%
57
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
1,023
$
1,646
$
2,927
$
1,035
$
1,464
Silver ($/oz)
$
15.16
$
20.39
$
—
$
16.77
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended March
31, 2023
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Silvertip
Total
Costs applicable to sales, including
amortization (U.S. GAAP)
$
57,984
$
48,083
$
43,226
$
24,953
$
1,221
$
175,467
Amortization
(8,719
)
(5,218
)
(5,844
)
(1,409
)
(1,221
)
(22,411
)
Costs applicable to sales
$
49,265
$
42,865
$
37,382
$
23,544
$
—
$
153,056
Inventory Adjustments
(201
)
(13,474
)
(207
)
(38
)
—
(13,920
)
By-product credit
—
—
(74
)
(570
)
(644
)
Adjusted costs applicable to
sales
$
49,064
$
29,391
$
37,101
$
22,936
$
—
$
138,492
Metal Sales
Gold ounces
25,970
8,349
20,902
15,645
—
70,866
Silver ounces
1,795,159
769,804
—
23,956
—
2,588,919
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
49
%
47
%
100
%
100
%
Silver
51
%
53
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
926
$
1,655
$
1,775
$
1,466
$
1,381
Silver ($/oz)
$
13.94
$
20.24
$
—
$
15.83
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for 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 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)
$
232,269
$
181,642
$
114,698
Amortization
(36,538
)
(26,295
)
(6,330
)
Costs applicable to sales
$
195,731
$
155,347
$
108,368
By-product credit
—
(193
)
(5,288
)
Adjusted costs applicable to
sales
$
195,731
$
155,154
$
103,080
Metal Sales
Gold ounces
99,719
83,310
89,109
Silver ounces
6,558,482
221,306
Revenue Split
Gold
49%
100%
100%
Silver
51%
Adjusted costs applicable to
sales
Gold ($/oz)
$900 - $1,050
$1,850 - $1,950
$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)
$
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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108334351/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
Grafico Azioni Coeur Mining (NYSE:CDE)
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Grafico Azioni Coeur Mining (NYSE:CDE)
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