Strong fourth quarter performances at Rochester
and Wharf drove a 35% increase in quarterly revenue
Full-year 2024 guidance highlights significant
expected production growth
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported fourth quarter 2023 financial results, including revenue
of $262 million and cash flow from operating activities of $65
million. The Company reported GAAP net loss from continuing
operations of $26 million, or $0.07 per share. On an adjusted
basis1, Coeur reported EBITDA of $64 million, cash flow from
operating activities before changes in working capital of $45
million and net loss from continuing operations of $6 million, or
$0.02 per share.
For the full year, Coeur reported revenue of $821 million, cash
flow from operating activities of $67 million and GAAP net loss
from continuing operations of $104 million, or $0.30 per share. On
an adjusted basis1, the Company reported EBITDA of $142 million,
cash flow from operating activities prior to changes in working
capital of $59 million and net loss from continuing operations of
$78 million, or $0.23 per share.
Key Highlights
- Strong fourth quarter drove significant increases in revenue
and adjusted EBITDA – Production increases at Rochester and
strong finishes at Kensington and Wharf drove a 35% increase in
revenue and a more-than doubling of adjusted EBITDA
quarter-over-quarter
- Full-year 2023 gold and silver production guidance
achieved – Gold and silver production increased 29% and 34%
quarter-over-quarter, respectively, to 101,609 ounces and 3.1
million ounces. Full-year gold and silver production totaled
317,671 ounces and 10.3 million ounces, respectively, within the
Company’s consolidated production guidance ranges
- Rochester expansion ramp-up progressing – Commissioning
of Rochester’s new crushing circuit is progressing, with completion
of ramp-up activities anticipated during the first half of 2024.
Full-year 2024 silver and gold production guidance reflects strong
anticipated year-over-year growth while second half cost guidance
highlights sharp expected declines compared to recent years. Once
operating at full capacity, throughput levels are expected to
average 32 million tons per year, approximately 2.5 times higher
than historical levels
- Wharf delivers all-time record annual free cash flow1 –
The Wharf gold mine in South Dakota ended the fourth quarter with
operating cash flow of $29 million and free cash flow1 of
approximately $27 million. For the full year, operating cash flow
totaled $84 million and free cash flow1 reached an all-time record
$82 million. Since acquiring Wharf in February 2015, Coeur has
generated cumulative free cash flow1 of more than four times its
original $99.5 million investment while mine life has remained
strong at six years compared to the estimated five-year mine life
at the time of acquisition
- Silvertip drills one of its highest grade intercepts
ever – Results have been received for almost half of 2023
drilling in the Southern Silver Zone at the high-grade Silvertip
polymetallic exploration project in northern British Columbia,
including the highest-grade intercept ever drilled at the Southern
Silver Zone in this rapidly growing near area
“The Company finished 2023 on a high note, highlighted by a
significant step-up in production levels at the newly expanded
Rochester mine in Nevada and a record cash flow year at the Wharf
mine in South Dakota,” said Mitchell J. Krebs, President and Chief
Executive Officer. “Kensington also delivered a solid fourth
quarter to complete a strong second half.
“Ramp-up and commissioning activities at Rochester are
progressing toward completion in the first half of 2024, setting
the stage for strong near-term production growth, lower costs, and
sharp increases in cash flow. Rochester is expected to become the
anchor of our base of North American silver and gold assets and is
the key driver to strong expected increases in our overall silver
and gold production levels this year.
“While we remain focused on our ramp-up and optimization efforts
at Rochester, we continue to advance several key initiatives at our
other operations. At Kensington in Alaska, 2024 represents the last
full year of elevated levels of development and drilling investment
under our current multi-year plan that we expect will significantly
extend its mine life and return the operation to being a generator
of positive free cash flow for the Company. At Palmarejo in Mexico,
expected completion of the transaction with Fresnillo will usher in
a revitalized development phase focused on targeting resources to
the north and east of existing operations. Finally, Silvertip’s
ambitious and highly successful exploration program will continue
in British Columbia, benefiting from a full year of drilling and
geologic modeling aimed at further increasing the scale and our
knowledge of this high-grade polymetallic carbon replacement
deposit.”
Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share
amounts, gold ounces produced & sold, and per-ounce
metrics)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Gold Sales
$
575.7
$
187.7
$
139.5
$
121.4
$
127.1
$
572.9
$
157.6
Silver Sales
$
245.5
$
74.3
$
55.1
$
55.9
$
60.2
$
212.8
$
52.5
Consolidated Revenue
$
821.2
$
262.1
$
194.6
$
177.2
$
187.3
$
785.6
$
210.1
Costs Applicable to Sales2
$
632.9
$
192.3
$
147.9
$
139.6
$
153.1
$
606.5
$
159.3
General and Administrative
Expenses
$
41.6
$
10.2
$
9.5
$
9.8
$
12.1
$
39.5
$
10.2
Net Income (Loss)
$
(103.6
)
$
(25.5
)
$
(21.1
)
$
(32.4
)
$
(24.6
)
$
(78.1
)
$
49.0
Net Income (Loss) Per Share
$
(0.30
)
$
(0.07
)
$
(0.06
)
$
(0.10
)
$
(0.08
)
$
(0.28
)
$
0.17
Adjusted Net Income (Loss)1
$
(78.0
)
$
(6.2
)
$
(18.6
)
$
(20.2
)
$
(33.1
)
$
(89.1
)
$
(17.5
)
Adjusted Net Income (Loss)1 Per
Share
$
(0.23
)
$
(0.02
)
$
(0.05
)
$
(0.06
)
$
(0.11
)
$
(0.32
)
$
(0.06
)
Weighted Average Shares
Outstanding
343.1
380.5
356.7
333.1
301.0
275.2
284.5
EBITDA1
$
60.5
$
25.0
$
15.3
$
4.0
$
16.2
$
72.0
$
84.9
Adjusted EBITDA1
$
142.3
$
64.3
$
30.6
$
22.2
$
25.1
$
139.0
$
35.9
Cash Flow from Operating
Activities
$
67.3
$
65.3
$
(2.4
)
$
39.4
$
(35.0
)
$
25.6
$
28.5
Capital Expenditures
$
364.6
$
92.7
$
112.3
$
85.6
$
74.0
$
352.4
$
113.1
Free Cash Flow1
$
(297.3
)
$
(27.4
)
$
(114.7
)
$
(46.2
)
$
(109.0
)
$
(326.7
)
$
(84.5
)
Cash, Equivalents & Short-Term
Investments
$
61.6
$
61.6
$
53.2
$
56.8
$
67.0
$
61.5
$
61.5
Total Debt3
$
545.3
$
545.3
$
512.2
$
469.4
$
494.1
$
515.9
$
515.9
Average Realized Price Per Ounce –
Gold
$
1,825
$
1,886
$
1,788
$
1,809
$
1,794
$
1,736
$
1,787
Average Realized Price Per Ounce –
Silver
$
24.21
$
24.79
$
24.88
$
23.91
$
23.25
$
21.77
$
21.14
Gold Ounces Produced
317,671
101,609
78,617
68,406
69,039
330,346
87,727
Silver Ounces Produced
10.3
$
3.1
2.3
2.4
2.5
9.8
2.4
Gold Ounces Sold
315,511
99,540
78,015
67,090
70,866
329,968
88,189
Silver Ounces Sold
10.1
$
3.0
2.2
2.3
2.6
9.8
2.5
Adjusted CAS per AuOz1
$
1,355
$
1,225
$
1,273
$
1,464
$
1,381
$
1,300
$
1,270
Adjusted CAS per AgOz1
$
18.10
$
17.03
$
17.85
$
16.77
$
15.83
$
17.00
$
15.57
Financial Results
Fourth quarter 2023 revenue totaled $262 million compared to
$195 million in the prior period and $210 million in the fourth
quarter of 2022. The Company produced 101,609 and 3.1 million
ounces of gold and silver, respectively, during the quarter. Metal
sales for the quarter totaled 99,540 ounces of gold and 3.0 million
ounces of silver. Average realized gold and silver prices for the
quarter were $1,886 and $24.79 per ounce, respectively, compared to
$1,788 and $24.88 per ounce in the prior period and $1,787 and
$21.14 per ounce in the fourth quarter of 2022.
Coeur generated $821 million in revenue during 2023, compared to
$786 million in 2022. Full-year gold and silver production totaled
317,671 and 10.3 million ounces, respectively, compared to 330,346
ounces of gold and 9.8 million ounces of silver in 2022. Metal
sales in 2023 included 315,511 and 10.1 million ounces of gold and
silver, respectively. Average realized gold and silver prices for
the year were $1,825 and $24.21 per ounce, respectively, compared
to $1,736 and $21.77 per ounce in 2022.
Gold and silver sales represented 72% and 28% of quarterly
revenue, respectively. For the full year, gold and silver sales
accounted for 70% and 30% of revenue, respectively. The Company’s
U.S. operations accounted for approximately 65% and 62% in the
fourth quarter and full-year revenue, respectively.
Costs applicable to sales2 during the quarter and for the full
year increased 30% and 4%, respectively, to $192 million and $633
million. Higher costs during the quarter and the year compared to
prior periods were due primarily to higher gold and silver
production levels as well as from higher consumable costs driven by
overall inflationary pressures. General and administrative expenses
remained consistent quarter-over-quarter and year-over-year at $10
million.
Coeur invested approximately $14 million ($11 million expensed
and $3 million capitalized) in exploration during the quarter,
compared to roughly $16 million ($12 million expensed and $3
million capitalized) in the prior period. For the full year, the
Company invested approximately $41 million ($31 million expensed
and $10 million capitalized) compared to roughly $48 million ($27
million expensed and $22 million capitalized) in 2022. See the
“Operations” and “Exploration” sections for additional detail on
the Company’s exploration activities.
The Company recorded income tax expense of approximately $10
million and $37 million during the fourth quarter and for the full
year, respectively. Cash income and mining taxes paid during the
period totaled approximately $8 million, bringing the full-year
total to $35 million. Cash taxes paid in 2023 primarily reflect
income and mining tax payments in Mexico. Coeur expects to pay
approximately $8 - $10 million in cash taxes during the first
quarter of 2024 primarily as a result of its annual tax filings in
Mexico. As of December 31, 2023, Companywide U.S. net operating
loss carryforwards totaled approximately $623 million.
Quarterly operating cash flow totaled $65 million compared to
$(2) million in the prior period, mainly driven by higher metal
sales, increased profitability at Wharf, timing of prepayments and
the semi-annual interest payments on the Company’s 2029 5.125%
Senior Notes. For the full year, operating cash flow more than
doubled to $67 million mainly driven by strong fourth quarter
operational performance.
Capital expenditures decreased 17% quarter-over-quarter to $93
million, bringing the full-year total to $365 million and below
Coeur’s 2023 guidance range of $378 - $432 million due to timing of
remaining payments related to the Rochester expansion. Expenditures
related to the Rochester expansion totaled $52 million and $230
million during the fourth quarter and full year, respectively,
compared to $76 million in the third quarter and $229 million in
2022. Sustaining and development capital expenditures accounted for
approximately $38 million and $55 million, or 41% and 59%,
respectively, of Coeur’s total capital investment during the
quarter.
Balance Sheet and Liquidity Update
Coeur ended the quarter with total liquidity of approximately
$247 million, including $62 million of cash and $185 million of
available capacity under its $390 million revolving credit facility
(“RCF”)4. Total debt increased to $545 million at the end of the
fourth quarter compared to $512 million at the end of the third
quarter and $516 million at year-end 2022.
On February 21, 2024, the Company completed a new agreement to
extend and enhance its RCF. Details include:
- Maturity of February 2027
- Increased aggregate borrowing capacity from $390 million to
$400 million
- Option to increase aggregate borrowing capacity by an
additional $100 million
- Seven banks comprise the syndicate, including new additions
National Bank of Canada and Fédération des Caisses Desjardins du
Québec
During the fourth quarter, Coeur satisfied $45 million
associated with prepay agreements at Kensington, Rochester and
Wharf. Additionally, the Company exercised options under amended
agreements to receive an additional $25 million prepayment at
Kensington, an approximately $18 million prepayment for deliveries
of gold and silver doré from Rochester, and a roughly $13 million
prepayment for deliveries of gold concentrate from Wharf.
Hedging Update
During the fourth quarter, the Company added to its hedge
position by executing additional hedges on approximately 95,000
ounces of its expected 2024 gold production at an average price of
roughly $2,076 per ounce and approximately 3.1 million ounces of
its expected 2024 silver production at an average price of roughly
$25.16 per ounce. An overview of the hedges in place is outlined
below.
1Q 2024
2Q 2024
Gold Ounces Hedged
45,000
49,950
Avg. Forward Price ($/oz)
$2,050
$2,100
Silver Ounces Hedged
1,299,999
1,800,000
Avg. Forward Price ($/oz)
$24.00
$26.00
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 fourth
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 $20 million (approximately $17 million in
costs applicable to sales2 and $3 million of amortization).
Operations
Fourth quarter and full-year 2023 highlights for each of the
Company’s operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce
amounts)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Tons milled
2,008,459
500,509
501,722
472,622
533,606
2,197,808
554,247
Average gold grade (oz/t)
0.050
0.060
0.055
0.056
0.052
0.053
0.051
Average silver grade (oz/t)
3.97
4.08
3.67
4.10
4.02
3.63
3.16
Average recovery rate – Au
91.1
%
89.4
%
97.6
%
87.4
%
90.1
%
92.1
%
92.4
%
Average recovery rate – Ag
82.7
%
79.4
%
86.9
%
83.5
%
81.7
%
84.2
%
85.0
%
Gold ounces produced
100,605
25,401
26,870
23,216
25,118
106,782
25,935
Silver ounces produced (000’s)
6,592
1,622
1,601
1,617
1,752
6,709
1,489
Gold ounces sold
99,043
24,848
26,018
22,207
25,970
107,157
25,252
Silver ounces sold (000’s)
6,534
1,644
1,534
1,561
1,795
6,695
1,490
Average realized price per gold
ounce
$
1,565
$
1,615
$
1,499
$
1,589
$
1,564
$
1,471
$
1,509
Average realized price per silver
ounce
$
24.21
$
24.78
$
24.96
$
23.98
$
23.23
$
21.78
$
21.10
Metal sales
$
313.2
$
80.9
$
77.3
$
72.7
$
82.3
$
303.4
$
69.5
Costs applicable to sales2
$
194.3
$
50.3
$
48.1
$
46.6
$
49.3
$
182.6
$
47.1
Adjusted CAS per AuOz1
$
957
$
1,010
$
917
$
1,023
$
926
$
883
$
1,027
Adjusted CAS per AgOz1
$
15.09
$
15.26
$
15.56
$
15.16
$
13.94
$
13.05
$
14.23
Exploration expense
$
7.8
$
2.7
$
2.2
$
1.6
$
1.3
$
6.6
$
1.5
Cash flow from operating
activities
$
76.8
$
24.1
$
22.6
$
18.6
$
11.5
$
88.4
$
18.9
Sustaining capital expenditures
(excludes capital lease payments)
$
34.6
$
6.9
$
8.4
$
10.7
$
8.6
$
42.6
$
8.1
Development capital
expenditures
$
7.2
$
2.0
$
2.4
$
1.2
$
1.6
$
—
$
—
Total capital expenditures
$
41.8
$
8.9
$
10.8
$
11.9
$
10.2
$
42.6
$
8.1
Free cash flow1
$
35.0
$
15.2
$
11.8
$
6.7
$
1.3
$
45.8
$
10.8
Operational
- Fourth quarter gold and silver production totaled 25,401 and
1.6 million ounces, respectively, compared to 26,870 and 1.6
million ounces in the prior period and 25,935 and 1.5 million
ounces in the fourth quarter of 2022. For the full year, gold and
silver production totaled 100,605 and 6.6 million ounces,
respectively, and were within 2023 guidance ranges of 100,000 -
112,500 ounces of gold and 6.5 - 7.5 million ounces of silver
- Production during the quarter benefited from higher average
grades, offset by lower average gold and silver recoveries
Financial
- Adjusted CAS1 for gold and silver on a co-product basis
increased 10% and decreased 2% quarter-over-quarter to $1,010 and
$15.26 per ounce, respectively, driven by lower gold sales, higher
silver sales and a stronger Mexican Peso
- For the full year, adjusted CAS1 for gold and silver totaled
$957 and $15.09 per ounce, respectively, compared to $883 and
$13.05 per ounce in the prior period. Both cost metrics finished
the year within their 2023 guidance ranges of $900 - $1,050 and
$14.25 - $15.25 per ounces of gold and silver, respectively
- Capital expenditures decreased 18% quarter-over-quarter to $9
million, reflecting completion of the open pit tailings backfill
project. For the full year, capital expenditures decreased 2% to
$42 million
- Free cash flow1 in the fourth quarter and full year totaled $15
million and $35 million, respectively, compared to $12 million and
$46 million in the prior periods
Exploration
- Exploration investment for the fourth quarter increased by 23%
to approximately $3 million (substantially all expensed), while
full-year exploration investment decreased 30% year-over-year to
roughly $8 million (substantially all expensed)
- Drilling during the quarter remained focused on the Hidalgo
corridor, the Zapata - Guadalupe corridor and the Las Animas target
with up to five rigs active during the period
- At Hidalgo, drilling included systematic step-outs along strike
on the San Jaun, Libertad and Hidalgo veins along with larger steps
to the northwest on the Morelos and sub-parallel La Finca
structures. Geology intersected indicates that the Hidalgo corridor
potentially continues to the northwest over an additional 570
meters and includes the Morelos and La Finca veins
- At the Zapata - Guadalupe target, drilling during the quarter
intersected deformation, alteration and veining on both structures.
The main goal of this program is to test for a higher shoot where
these structures intersect. Drilling for this purpose is expected
to continue in early 2024
- At Las Animas, drilling during the quarter aimed at extending
the zone down dip with good vein structures intersected. Results
are pending but the geology visually indicates continuation of the
zone
- Mapping and sampling are continuing to the east of the current
operation and outside of the gold stream area of interest. New
veins were identified during the quarter, which the Company plans
to follow up on in 2024. Coeur expects at least four drill rigs to
be active at Palmarejo in the first quarter and through the
remainder of the year
Other
- Approximately 32% and 35% of Palmarejo’s gold sales in the
fourth quarter and full year, respectively, were sold under its
gold stream agreement at a price of $800 per ounce, totaling 8,047
ounces in the fourth quarter and 34,455 ounces for the full year.
The Company anticipates approximately 30% - 40% of Palmarejo’s gold
sales for 2024 will be sold under the gold stream agreement
Guidance
- Full-year 2024 production is expected to be 95,000 - 103,000
ounces of gold and 5.9 - 6.7 million ounces of silver, relatively
flat compared to 2023 production
- CAS1 in 2024 are expected to be $1,075 - $1,275 per gold ounce
and $16.50 - $17.50 per silver ounce
- Capital expenditures are expected to be $32 - $42 million,
consisting primarily of sustaining capital and underground
development
Rochester, Nevada
(Dollars in millions, except per ounce
amounts)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Ore tons placed
11,388,657
2,754,058
3,487,173
2,690,840
2,456,586
14,919,803
2,754,118
Average silver grade (oz/t)
0.45
0.44
0.50
0.42
0.45
0.41
0.68
Average gold grade (oz/t)
0.003
0.003
0.003
0.003
0.003
0.003
0.003
Silver ounces produced (000’s)
3,392
1,340
608
683
761
3,062
973
Gold ounces produced
38,775
19,847
4,459
6,314
8,155
34,735
11,589
Silver ounces sold (000’s)
3,340
1,269
606
695
770
3,029
975
Gold ounces sold
38,449
19,175
4,432
6,493
8,349
34,370
11,646
Average realized price per silver
ounce
$
24.09
$
24.59
$
24.63
$
23.70
$
23.19
$
21.53
$
21.10
Average realized price per gold
ounce
$
1,965
$
1,991
$
1,967
$
1,946
$
1,922
$
1,875
$
1,893
Metal sales
$
156.0
$
69.4
$
23.6
$
29.1
$
33.9
$
129.7
$
42.6
Costs applicable to sales2
$
171.3
$
71.8
$
30.5
$
26.1
$
42.9
$
165.2
$
44.1
Adjusted CAS per AgOz1
$
23.97
$
19.33
$
23.64
$
20.39
$
20.24
$
25.74
$
17.60
Adjusted CAS per AuOz1
$
1,922
$
1,564
$
1,899
$
1,646
$
1,655
$
2,268
$
1,596
Prepayment, working capital cash
flow
$
17.5
$
—
$
7.5
$
10.0
$
—
$
—
$
—
Exploration expense
$
1.2
$
0.2
$
0.3
$
0.3
$
0.4
$
4.6
$
0.6
Cash flow from operating
activities
$
(23.0
)
$
11.6
$
(17.3
)
$
(3.8
)
$
(13.5
)
$
(48.0
)
$
(5.5
)
Sustaining capital expenditures
(excludes capital lease payments)
$
30.9
$
13.8
$
7.7
$
5.1
$
4.3
$
14.9
$
3.0
Development capital
expenditures
$
232.5
$
51.7
$
76.7
$
56.4
$
47.7
$
231.5
$
89.3
Total capital expenditures
$
263.4
$
65.5
$
84.4
$
61.5
$
52.0
$
246.4
$
92.3
Free cash flow1
$
(286.4
)
$
(53.9
)
$
(101.7
)
$
(65.3
)
$
(65.5
)
$
(294.4
)
$
(97.8
)
Operational
- Silver and gold production in the fourth quarter totaled 1.3
million and 19,847 ounces, respectively, compared to 607,735 and
4,459 ounces in the prior period and 973,000 and 11,589 ounces in
the fourth quarter of 2022. For the full year, silver production
totaled 3.4 million ounces, which was just below 2023 guidance
ranges of 3.5 - 4.5 million ounces, while gold production totaled
38,775 ounces and was within 2023 guidance ranges of 35,000 -
50,000 ounces
- Higher production during the quarter was primarily driven by
the completion of the process plant in the third quarter and ounces
recovered from the new leach pad from ore stacked throughout
2023
- During the fourth quarter, initial commissioning activities
occurred on the primary crusher as part of the completed Rochester
expansion. First ore to the pad was achieved during the month of
January from the primary and secondary crusher. Commissioning
activities continue on the pre-screen and tertiary circuit with
ramp-up continuing through the first half of 2024
Financial
- Fourth quarter adjusted CAS1 figures in the table above and
highlighted below exclude the impact of an LCM adjustment totaling
approximately $17 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
- Fourth quarter adjusted CAS1 for silver and gold on a
co-product basis totaled $19.33 and $1,564 per ounce, respectively,
with significant reductions compared to the prior period largely
driven by increased metal sales as well as lower operating costs
due to lower crushing associated with X-Pit dismantling
- Full-year adjusted CAS1 for silver and gold on a co-product
basis totaled $23.97 and $1,922 per ounce, respectively, compared
to $25.74 and $2,268 per ounce in the prior period
- Capital expenditures increased 22% quarter-over-quarter to $66
million, bringing the full year total to $263 million compared to
$246 million in the prior period, reflecting increased spending
related to the Rochester expansion project
- Free cash flow1 in the fourth quarter and full-year totaled
$(54) million and $(286) million, respectively, compared to $(102)
million and $(294) million in the prior periods
Exploration
- Exploration investment increased 20% quarter-over-quarter to
approximately $1 million ($0.2 million expensed and $0.4 million
capitalized), while full-year investment decreased 68%
year-over-year to roughly $2 million ($1 million expensed and $1
million capitalized)
- Exploration activities continued to focus on geologic logging,
interpretation and geological modeling. A new geological model for
East Rochester has been completed and re-logging campaigns have
commenced at Lincoln Hill and Nevada Packard ahead of modeling
- Exploration drilling is expected to begin in the second quarter
of 2024 with a focus on testing higher-grade structures outlined by
the new geological model at East Rochester. Once the new geological
model for Nevada Packard has been completed, a similar drill
program will be undertaken at the project
Guidance
- Full-year 2024 production is expected to be 4.8 - 6.6 million
ounces of silver and 37,000 - 50,000 ounces of gold. Production in
2024 is expected to increase after a slow first quarter due to
commissioning and ramp-up in the first half of 2024
- With the commissioning and ramp-up of the Rochester expansion
taking place during the first half of 2024, the Company has
provided CAS guidance for the second half of 2024, which are
expected to be $14.00 - $16.00 per silver ounce and $1,200 - $1,400
per gold ounce
- Capital expenditures are expected to be $50 - $70 million,
which reflects fleet enhancements as part of the ramp-up of the
newly expanded Rochester as well as sustaining capital
Kensington, Alaska
(Dollars in millions, except per ounce
amounts)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Tons milled
651,576
177,382
167,950
152,907
153,337
700,346
183,410
Average gold grade (oz/t)
0.14
0.16
0.16
0.09
0.15
0.17
0.18
Average recovery rate
91.9
%
92.3
%
92.6
%
90.9
%
91.2
%
92.5
%
92.4
%
Gold ounces produced
84,789
26,686
24,614
13,193
20,296
109,061
30,335
Gold ounces sold
84,671
25,980
24,516
13,273
20,902
108,972
30,863
Average realized price per gold ounce,
gross
$
1,987
$
2,016
$
1,956
$
1,991
$
1,983
$
1,888
$
1,942
Treatment and refining charges per gold
ounce
$
74
$
58
$
60
$
142
$
63
$
36
$
38
Average realized price per gold ounce,
net
$
1,913
$
1,958
$
1,896
$
1,849
$
1,920
$
1,852
$
1,904
Metal sales
$
162.5
$
51.2
$
46.5
$
24.6
$
40.2
$
202.5
$
58.8
Costs applicable to sales2
$
152.7
$
37.9
$
38.3
$
39.1
$
37.4
$
155.7
$
39.2
Adjusted CAS per AuOz1
$
1,786
$
1,441
$
1,543
$
2,927
$
1,775
$
1,420
$
1,265
Prepayment, working capital cash
flow
$
—
$
10.7
$
(10.7
)
$
9.9
$
(9.9
)
$
10.0
$
9.6
Exploration expense
$
7.9
$
1.7
$
2.9
$
2.3
$
1.0
$
6.6
$
2.2
Cash flow from operating
activities
$
4.0
$
16.9
$
(4.4
)
$
(3.7
)
$
(4.8
)
$
42.2
$
20.8
Sustaining capital expenditures
(excludes capital lease payments)
$
53.3
$
15.1
$
15.8
$
11.7
$
10.7
$
31.5
$
7.7
Development capital
expenditures
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total capital expenditures
$
53.3
$
15.1
$
15.8
$
11.7
$
10.7
$
31.5
$
7.7
Free cash flow1
$
(49.3
)
$
1.8
$
(20.2
)
$
(15.4
)
$
(15.5
)
$
10.7
$
13.1
Operational
- Gold production in the fourth quarter totaled 26,686 ounces
compared to 24,614 ounces in the prior period and 30,335 ounces in
the fourth quarter of 2022. For the full year, gold production
totaled 84,789 ounces and was on the high-end of 2023 guidance
ranges of 81,000 - 85,000 ounces
- Higher production during the quarter was driven by increased
tons milled due to improved performance in long-hole drilling,
paste backfill and stope sequencing
Financial
- Fourth quarter adjusted CAS1 totaled $1,441 per ounce compared
to $1,543 per ounce in the prior period, reflecting increased metal
sales. Full-year adjusted CAS1 totaled $1,786 per ounce compared to
$1,420 per ounce in 2022, largely driven by lower metal sales
- Capital expenditures decreased 4% quarter-over-quarter to $15
million. For the full year, capital expenditures increased 69% to
$53 million primarily driven by increased capital development to
support the ongoing multi-year exploration program aimed at
extending mine life
- Free cash flow1 in the fourth quarter and full-year totaled $2
million and $(49) million, respectively, compared to $(20) million
and $11 million in the prior periods
Exploration
- Exploration investment in the quarter totaled approximately $4
million ($2 million expensed and $2 million capitalized), compared
to $6 million ($3 million expensed and $3 million capitalized) in
the prior period. For the full year, exploration investment
increased 57% to roughly $18 million ($8 million expensed and $10
million capitalized)
- Up to four underground drill rigs were focused on expansion and
infill drilling at Elmira and Kensington during the quarter.
Drilling on all targets is continuing to demonstrate the
continuation of structures down dip and along strike
- Significant progress was made on structural modeling during the
quarter with a district scale tectono-structural study undertaken.
This new knowledge will be used for geological modeling and
exploration targeting
- At Elmira, drilling indicates that mineralization continues
through Elmira South (defined over 500 feet so far) with
opportunity existing over a much longer strike length to the south.
This concept will be tested in early 2024
- In the first quarter, the Company expects to continue drilling
with four underground rigs focused on Elmira and Kensington
Guidance
- Full-year 2024 production is expected to be 92,000 - 106,000
gold ounces
- CAS1 in 2024 are expected to be $1,525 - $1,725 per gold
ounce
- Capital expenditures are expected to be $44 - $56 million, of
which approximately $23 - $29 million and $5 - $10 million is
related to underground development and infill drilling,
respectively, as part of the multi-year exploration program
Wharf, South Dakota
(Dollars in millions, except per ounce
amounts)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Ore tons placed
4,743,469
1,290,562
1,254,267
1,041,846
1,156,794
4,506,849
975,994
Average gold grade (oz/t)
0.026
0.027
0.023
0.022
0.032
0.021
0.024
Gold ounces produced
93,502
29,675
22,674
25,683
15,470
79,768
19,868
Silver ounces produced (000’s)
268
90
69
88
21
46
9
Gold ounces sold
93,348
29,537
23,049
25,117
15,645
79,469
20,428
Silver ounces sold (000’s)
266
86
74
82
24
47
17
Average realized price per gold
ounce
$
1,961
$
1,982
$
1,966
$
1,946
$
1,938
$
1,874
$
1,895
Metal sales
$
189.5
$
60.7
$
47.1
$
50.8
$
30.9
$
150.0
$
39.0
Costs applicable to sales2
$
114.7
$
32.4
$
31.0
$
27.8
$
23.5
$
103.1
$
28.9
Adjusted CAS per AuOz1
$
1,152
$
997
$
1,267
$
1,035
$
1,466
$
1,281
$
1,393
Prepayment, working capital cash
flow
$
12.5
$
—
$
2.5
$
10.0
$
—
$
—
$
—
Exploration expense
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Cash flow from operating
activities
$
84.1
$
28.9
$
19.5
$
33.8
$
1.9
$
33.0
$
10.3
Sustaining capital expenditures
(excludes capital lease payments)
$
2.0
$
1.3
$
0.6
$
0.1
$
—
$
1.5
$
0.7
Development capital
expenditures
$
0.5
$
0.2
$
0.1
$
0.1
$
0.1
$
1.6
$
0.1
Total capital expenditures
$
2.5
$
1.5
$
0.7
$
0.2
$
0.1
$
3.1
$
0.7
Free cash flow1
$
81.6
$
27.4
$
18.8
$
33.6
$
1.8
$
29.9
$
9.6
Operational
- Gold production in the fourth quarter increased 31%
quarter-over-quarter to 29,675 ounces. For the full year, gold
production totaled 93,502 ounces, toward the high-end of 2023
guidance of 88,000 - 95,000 ounces
- Higher production during the quarter was largely driven by the
timing of ounces placed on the leach pad in the prior quarter and
early in the fourth quarter. Ore tons placed increased 3% during
the quarter
Financial
- Adjusted CAS1 on a by-product basis decreased 21%
quarter-over-quarter to $997 per ounce, largely driven by higher
metal sales. Full-year adjusted CAS1 totaled $1,152 per ounce and
was below the 2023 guidance range of $1,200 - $1,350
- Capital expenditures increased slightly quarter-over-quarter to
$2 million
- Free cash flow1 in the fourth quarter and full year totaled $27
million and $82 million, respectively, compared to $19 million and
$30 million in the prior periods. Higher free cash flow1 in the
fourth quarter and full year was largely driven by higher metal
sales and is a record free cash flow1 year for the site. Coeur has
now generated cumulative free cash flow1 from Wharf of more than
four times its original investment of approximately $99.5 million
in February 2015
Exploration
- Exploration investment remained flat quarter-over-quarter. For
the full year, the Company invested less than $1 million on
exploration at Wharf
Guidance
- Full-year 2024 production is expected to be 86,000 - 96,000
gold ounces
- CAS1 in 2024 are expected to be $1,100 - $1,200 per gold
ounce
- Capital expenditures are expected to be $5 - $7 million
Exploration
Coeur had 11 active rigs across all sites during the fourth
quarter, for a total investment of approximately $14 million ($11
million expensed and $3 million capitalized), compared to roughly
$16 million ($12 million expensed and $3 million capitalized) in
the prior period.
For the full year, the Company invested approximately $41
million ($31 million expensed and $10 million capitalized) compared
to roughly $48 million ($27 million expensed and $22 million
capitalized) in 2022. Coeur 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 high-grade Silvertip polymetallic
exploration project in British Columbia, Canada totaled
approximately $6 million in the fourth quarter, bringing full-year
investment to roughly $11 million, compared to $7 million and $10
million, respectively, in prior periods.
Drilling during the fourth quarter continued with two
underground rigs focused on tracing the Southern Silver Zone
chimney along strike to the southeast and down dip in addition to
infill drilling at Saddle Zone. Visual results from the Southern
Silver Zone drilling confirmed massive sulphide mineralization in
all holes with results pending. Southern Silver Zone has been
extended along strike by 150 meters and down dip by 160 meters.
The Company expects to invest $11 - $14 million in exploration
in 2024 at Silvertip, which excludes $15 - $20 million related to
underground mine development and supporting costs.
Across the Company, exploration investment in 2024 is expected
to include $40 - $50 million of scout and expansion drilling
(exploration expense) and $7 - $13 million on infill drilling
(capitalized exploration). The key priorities this year are focused
on building reserves and extending the life of mine at Kensington,
testing higher grade structures at Rochester, commence building a
significant pipeline of inferred resources at Palmarejo to
potentially enable rapid reserve growth over the coming years,
adding mineral reserves at Wharf, and continue increasing the
mineral resource at Silvertip.
2024 Guidance
Gold and silver production is expected to increase compared to
2023, driven by the commissioning and ramp-up of the Rochester
expansion. Overall cost guidance has increased compared to 2023
primarily driven by expected continued inflationary pressures on
operating costs.
With the commissioning and ramp-up of the new Merrill-Crowe
facility and three-stage crusher corridor at Rochester expected to
be completed during the first half of 2024, the Company has elected
to defer providing cost guidance at Rochester for that period. The
below cost guidance for Rochester reflects the second half of 2024.
Coeur expects to have an LCM adjustment at Rochester of roughly $10
- $15 million in the first quarter of 2024.
Additionally, the below exploration expense guidance excludes
$15 - $20 million of underground mine development and support costs
associated with Silvertip.
2024 Production Guidance
Gold
Silver
(oz)
(K oz)
Palmarejo
95,000 - 103,000
5,900 - 6,700
Rochester
37,000 - 50,000
4,800 - 6,600
Kensington
92,000 - 106,000
—
Wharf
86,000 - 96,000
—
Total
310,000 - 355,000
10,700 - 13,300
2024 Costs Applicable to Sales Guidance
Gold
Silver
($/oz)
($/oz)
Palmarejo (co-product)
$1,075 - $1,275
$16.50 - $17.50
Second Half 2024 Rochester
(co-product)
$1,200 - $1,400
$14.00 - $16.00
Kensington
$1,525 - $1,725
—
Wharf (by-product)
$1,100 - $1,200
—
2024 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures,
Sustaining
$116 - $158
Capital Expenditures,
Development
$19 - $26
Exploration, Expensed
$40 - $50
Exploration, Capitalized
$7 - $13
General & Administrative
Expenses
$36 - $40
Note: The Company’s guidance figures assume estimated prices of
$2,000/oz gold and $23.75/oz silver as well as CAD of 1.25 and MXN
of 17.00. 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 fourth quarter
and full-year 2023 financial results on February 22, 2024 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 February
29, 2024.
Replay numbers:
(877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID:
931 28 71
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,
capital expenditures, exploration and development efforts and
plans, mine lives and expected extensions, the gold stream
agreement at Palmarejo, closing of the transaction with Fresnillo,
expectations, plans, costs and timing regarding the Rochester
expansion project including anticipated throughput and timeline for
commissioning and ramp-up, 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
commissioning and ramp-up of the Rochester expansion project takes
longer than expected or 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, the risk that the Fresnillo transaction may not close,
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 report on Form
10-K. 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, 2023.
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 and liquidity.
2.
Excludes amortization.
3.
Includes capital leases. Net of debt
issuance costs and premium received.
4.
As of December 31, 2023, Coeur
had $30 million in outstanding letters of credit and $175 million
in outstanding borrowings under its RCF. Future borrowing under the
RCF may be subject to certain financial covenants.
Average Spot Prices
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Average Gold Spot Price Per Ounce
$
1,941
$
1,971
$
1,928
$
1,976
$
1,890
$
1,800
$
1,726
Average Silver Spot Price Per Ounce
$
23.35
$
23.20
$
23.57
$
24.13
$
22.55
$
21.73
$
21.17
Average Zinc Spot Price Per Pound
$
1.20
$
1.13
$
1.10
$
1.15
$
1.42
$
1.58
$
1.36
Average Lead Spot Price Per Pound
$
0.97
$
0.96
$
0.98
$
0.96
$
0.97
$
0.97
$
0.95
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
December 31, 2023
December 31, 2022
ASSETS
In thousands, except share
data
CURRENT ASSETS
Cash and cash equivalents
$
61,633
$
61,464
Receivables
31,035
36,333
Inventory
76,661
61,831
Ore on leach pads
79,400
82,958
Equity securities
—
32,032
Prepaid expenses and other
18,526
25,814
267,255
300,432
NON-CURRENT ASSETS
Property, plant and equipment and mining
properties, net
1,688,288
1,389,755
Ore on leach pads
25,987
51,268
Restricted assets
9,115
9,028
Equity securities
—
12,120
Receivables
23,140
22,023
Other
67,063
61,517
TOTAL ASSETS
$
2,080,848
$
1,846,143
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
115,110
$
96,123
Accrued liabilities and other
140,913
92,863
Debt
22,636
24,578
Reclamation
10,954
5,796
Liabilities held for sale
—
—
289,613
219,360
NON-CURRENT LIABILITIES
Debt
522,674
491,355
Reclamation
203,059
196,635
Deferred tax liabilities
12,360
14,459
Other long-term liabilities
29,239
35,318
767,332
737,767
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share;
authorized 600,000,000 shares, 386,282,957 issued and outstanding
at December 31, 2023 and 295,697,624 at December 31, 2022
3,863
2,957
Additional paid-in capital
4,139,870
3,891,265
Accumulated other comprehensive income
(loss)
1,331
12,343
Accumulated deficit
(3,121,161
)
(3,017,549
)
1,023,903
889,016
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
2,080,848
$
1,846,143
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
Year Ended December
31,
2023
2022
2021
In thousands, except per share
data
Revenue
$
821,206
$
785,636
$
832,828
COSTS AND EXPENSES
Costs applicable to sales(1)
632,896
606,530
511,539
Amortization
99,822
111,626
128,315
General and administrative
41,605
39,460
40,399
Exploration
30,962
26,624
51,169
Pre-development, reclamation, and
other
54,636
40,647
44,567
Total costs and expenses
859,921
824,887
775,989
OTHER INCOME (EXPENSE), NET
Gain (loss) on debt extinguishment
3,437
—
(9,173
)
Fair value adjustments, net
3,384
(66,668
)
(543
)
Interest expense, net of capitalized
interest
(29,099
)
(23,861
)
(16,451
)
Other, net
(7,463
)
66,331
(27,036
)
Total other income (expense), net
(29,741
)
(24,198
)
(53,203
)
Income (loss) before income and mining
taxes
(68,456
)
(63,449
)
3,636
Income and mining tax (expense)
benefit
(35,156
)
(14,658
)
(34,958
)
NET INCOME (LOSS)
$
(103,612
)
$
(78,107
)
$
(31,322
)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative
contracts designated as cash flow hedges
(318
)
37,445
22,783
Reclassification adjustments for realized
(gain) loss on cash flow hedges
(10,694
)
(23,890
)
(12,859
)
Other comprehensive income (loss)
(11,012
)
13,555
9,924
COMPREHENSIVE INCOME (LOSS)
$
(114,624
)
$
(64,552
)
$
(21,398
)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Basic
$
(0.30
)
$
(0.28
)
$
(0.13
)
Diluted
$
(0.30
)
$
(0.28
)
$
(0.13
)
(1) Excludes amortization.
COEUR MINING, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended December
31,
2023
2022
2021
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(103,612
)
$
(78,107
)
$
(31,322
)
Adjustments:
Amortization
99,822
111,626
128,315
Accretion
16,381
14,850
12,897
Deferred taxes
(1,495
)
(18,450
)
(10,932
)
Gain on debt extinguishment
(3,437
)
—
9,173
Fair value adjustments, net
(3,384
)
63,529
543
Stock-based compensation
11,361
10,030
13,660
Gain on the sale of Sterling/Crown
—
(62,249
)
—
Loss on the sale of assets
25,197
—
—
Write-downs
40,247
45,978
38,596
Deferred revenue recognition
(25,468
)
(15,887
)
(16,226
)
Other
3,215
542
911
Changes in operating assets and
liabilities:
Receivables
933
4,452
(983
)
Prepaid expenses and other current
assets
(461
)
240
489
Inventory and ore on leach pads
(47,592
)
(51,448
)
(27,628
)
Accounts payable and accrued
liabilities
55,581
510
(7,011
)
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
67,288
25,616
110,482
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(364,617
)
(352,354
)
(309,781
)
Proceeds from the sale of assets
8,546
165,829
6,824
Purchase of investments
—
—
(1,955
)
Sale of investments
47,611
40,469
935
Proceeds from notes receivable
5,000
—
—
Other
(239
)
(107
)
(99
)
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
(303,699
)
(146,163
)
(304,076
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock
168,964
147,408
—
Issuance of notes and bank borrowings, net
of issuance costs
598,000
320,000
592,493
Payments on debt, finance leases, and
associated costs
(528,541
)
(338,721
)
(430,101
)
Other
(2,370
)
(3,661
)
(4,256
)
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES
236,053
125,026
158,136
Effect of exchange rate changes on cash
and cash equivalents
567
401
(423
)
INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
209
4,880
(35,881
)
Cash, cash equivalents and restricted cash
at beginning of period
63,169
58,289
94,170
Cash, cash equivalents and restricted cash
at end of period
$
63,378
$
63,169
$
58,289
Adjusted EBITDA
Reconciliation
(Dollars in thousands except per share
amounts)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Net income (loss)
$
(103,612
)
$
(25,505
)
$
(21,109
)
$
(32,412
)
$
(24,586
)
$
(78,107
)
$
49,089
Interest expense, net of capitalized
interest
29,099
7,396
7,402
6,912
7,389
23,861
8,191
Income tax provision (benefit)
35,156
8,485
6,097
9,866
10,708
14,658
(421
)
Amortization
99,822
34,635
22,884
19,595
22,708
111,626
28,077
EBITDA
60,465
25,011
15,274
3,961
16,219
72,038
84,936
Fair value adjustments, net
(3,384
)
1,245
2,010
3,922
(10,561
)
66,668
1,396
Foreign exchange (gain) loss
459
353
(421
)
(627
)
1,154
850
(123
)
Asset retirement obligation accretion
16,405
4,186
4,153
4,073
3,993
14,232
3,643
Inventory adjustments and write-downs
43,188
18,464
8,934
1,603
14,187
49,085
8,725
(Gain) loss on sale of assets and
securities
25,197
12,547
19
12,622
9
(64,429
)
(62,064
)
RMC bankruptcy distribution
(1,516
)
—
—
(1,516
)
—
(1,651
)
(1,651
)
Value-added tax write-off
—
—
—
—
—
—
Loss on debt extinguishment
—
—
—
—
—
Gain on debt extinguishment
(3,437
)
298
(774
)
(2,961
)
—
—
COVID-19 costs
111
20
14
21
56
1,739
155
Other adjustments
4,814
2,168
1,439
1,137
70
(422
)
782
Adjusted EBITDA
$
142,302
$
64,292
$
30,648
$
22,235
$
25,127
$
138,954
$
35,799
Revenue
$
821,206
$
262,090
$
194,583
$
177,235
$
187,298
$
785,636
$
210,116
Adjusted EBITDA Margin
17
%
25
%
16
%
13
%
13
%
18
%
17
%
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share
amounts)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Net income (loss)
$
(103,612
)
$
(25,505
)
$
(21,109
)
$
(32,412
)
$
(24,586
)
$
(78,107
)
$
49,089
Fair value adjustments, net
(3,384
)
1,245
2,010
3,922
(10,561
)
66,668
1,396
Foreign exchange loss (gain)
1,994
(156
)
5
154
1,991
1,648
458
(Gain) loss on sale of assets and
securities
25,197
12,547
19
12,622
9
(64,429
)
(62,064
)
RMC bankruptcy distribution
(1,516
)
—
—
(1,516
)
—
(1,651
)
(1,651
)
Gain on debt extinguishment
(3,437
)
298
(774
)
(2,961
)
—
—
COVID-19 costs
111
20
14
21
56
1,739
155
Other adjustments
4,814
2,168
1,439
1,137
70
(422
)
782
Tax effect of adjustments
1,785
3,165
(223
)
(1,120
)
(37
)
(15,349
)
(5,616
)
Adjusted net income (loss)
$
(78,048
)
$
(6,218
)
$
(18,619
)
$
(20,153
)
$
(33,058
)
$
(89,059
)
$
(17,451
)
Adjusted net income (loss) per share -
Basic
$
(0.23
)
$
(0.02
)
$
(0.05
)
$
(0.06
)
$
(0.11
)
$
(0.32
)
$
(0.06
)
Adjusted net income (loss) per share -
Diluted
$
(0.23
)
$
(0.02
)
$
(0.05
)
$
(0.06
)
$
(0.11
)
$
(0.32
)
$
(0.06
)
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Cash flow from operations
$
67,288
$
65,277
$
(2,383
)
$
39,397
$
(35,003
)
$
25,616
$
28,516
Capital expenditures
364,617
92,715
112,273
85,581
74,048
352,354
113,094
Free cash flow
$
(297,329
)
$
(27,438
)
$
(114,656
)
$
(46,184
)
$
(109,051
)
$
(326,738
)
$
(84,578
)
Consolidated Operating Cash
Flow
Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
2023
4Q 2023
3Q 2023
2Q 2023
1Q 2023
2022
4Q 2022
Cash provided by (used in) operating
activities
$
67,288
$
65,277
$
(2,383
)
$
39,397
$
(35,003
)
$
25,616
$
28,516
Changes in operating assets and
liabilities:
Receivables
(933
)
726
478
913
(3,050
)
(4,452
)
(353
)
Prepaid expenses and other
461
1,225
3,000
(4,260
)
496
(240
)
699
Inventories
47,592
(7,401
)
18,620
18,738
17,635
51,448
8,798
Accounts payable and accrued
liabilities
(55,581
)
(14,490
)
(5,528
)
(61,708
)
26,145
(510
)
(18,022
)
Operating cash flow before changes in
working capital
$
58,827
$
45,337
$
14,187
$
(6,920
)
$
6,223
$
71,862
$
19,638
Reconciliation of Costs
Applicable to Sales
for Year Ended December 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)
$
230,018
$
197,663
$
178,564
$
121,351
$
4,018
$
731,614
Amortization
(35,709
)
(26,392
)
(25,905
)
(6,694
)
(4,018
)
(98,718
)
Costs applicable to sales
$
194,309
$
171,271
$
152,659
$
114,657
$
—
$
632,896
Inventory Adjustments
(933
)
(17,305
)
(988
)
(653
)
(19,879
)
By-product credit
—
—
(468
)
(6,439
)
(6,907
)
Adjusted costs applicable to
sales
$
193,376
$
153,966
$
151,203
$
107,565
$
—
$
606,110
Metal Sales
Gold ounces
99,043
38,449
84,671
93,348
—
315,511
Silver ounces
6,534,469
3,339,780
266,156
—
10,140,405
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
49
%
48
%
100
%
100
%
Silver
51
%
52
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
957
$
1,922
$
1,786
$
1,152
$
1,355
Silver ($/oz)
$
15.09
$
23.97
$
—
$
18.10
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
Reconciliation of Costs
Applicable to Sales
for Three Months Ended
December 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)
$
60,345
$
85,155
$
46,207
$
34,150
$
858
$
226,715
Amortization
(9,949
)
(13,349
)
(8,366
)
(1,892
)
(858
)
(34,414
)
Costs applicable to sales
$
50,396
$
71,806
$
37,841
$
32,258
$
—
$
192,301
Inventory Adjustments
(195
)
(17,295
)
(131
)
(677
)
—
(18,298
)
By-product credit
—
—
(275
)
(2,146
)
—
(2,421
)
Adjusted costs applicable to
sales
$
50,201
$
54,511
$
37,435
$
29,435
$
—
$
171,582
Metal Sales
Gold ounces
24,849
19,174
25,980
29,538
—
99,541
Silver ounces
1,644,592
1,269,236
—
86,510
—
3,000,338
Zinc pounds
—
—
—
—
—
—
Lead pounds
—
—
—
—
—
—
Revenue Split
Gold
50
%
55
%
100
%
100
%
Silver
50
%
45
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
1,010
$
1,564
$
1,441
$
997
$
1,225
Silver ($/oz)
$
15.26
$
19.33
$
—
$
17.03
Zinc ($/lb)
$
—
$
—
Lead ($/lb)
$
—
$
—
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 Year 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)
$
218,008
$
187,792
$
194,757
$
111,310
$
4,912
$
716,779
Amortization
(35,432
)
(22,626
)
(39,032
)
(8,247
)
(4,912
)
(110,249
)
Costs applicable to sales
$
182,576
$
165,166
$
155,725
$
103,063
$
—
$
606,530
Inventory Adjustments
(599
)
(9,232
)
(401
)
(217
)
(10,449
)
By-product credit
—
—
(634
)
(1,083
)
(1,717
)
Adjusted costs applicable to
sales
$
181,977
$
155,934
$
154,690
$
101,763
$
—
$
594,364
Metal Sales
Gold ounces
107,157
34,370
108,972
79,469
—
329,968
Silver ounces
6,695,454
3,028,986
—
47,284
—
9,771,724
Zinc pounds
—
—
Lead pounds
—
—
Revenue Split
Gold
52
%
50
%
100
%
100
%
Silver
48
%
50
%
—
%
Zinc
—
%
Lead
—
%
Adjusted costs applicable to
sales
Gold ($/oz)
$
883
$
2,268
$
1,420
$
1,281
$
1,300
Silver ($/oz)
$
13.05
$
25.74
$
—
$
17.00
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 2024 Guidance
In thousands (except metal sales, per
ounce or per pound amounts)
Palmarejo
Rochester
Kensington
Wharf
Costs applicable to sales, including
amortization (U.S. GAAP)
$
258,870
$
129,322
$
199,980
$
108,330
Amortization
(37,130
)
(36,990
)
(33,530
)
(6,330
)
Costs applicable to sales
$
221,740
$
92,332
$
166,450
$
102,000
By-product credit
—
—
—
(2,550
)
Adjusted costs applicable to
sales
$
221,740
$
92,332
$
166,450
$
99,450
Metal Sales
Gold ounces
100,350
28,130
103,790
90,000
Silver ounces
6,516,830
3,927,890
105,920
Revenue Split
Gold
51%
38%
100%
100%
Silver
49%
62%
Adjusted costs applicable to
sales
Gold ($/oz)
$1,075 - $1,275
$1,200 - $1,400
$1,525 - $1,725
$1,100 - $1,200
Silver ($/oz)
$16.50 - $17.50
$14.00 - $16.00
Reconciliation of Costs Applicable to Sales
for 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221800064/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
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