Coeur Mining (CDE) Q2 2024 earnings summary

Executive summary

• Rochester ramp-up completed, achieving over 88,000 tons/day throughput and driving a 39–40% increase in silver and gold production, positioning for higher output and lower unit costs in H2 2024.

• Q2 2024 revenue reached $222 million, up 25% year-over-year, with net income of $1.4 million and adjusted EBITDA of $52.4 million, up 136% year-over-year.

• Maintained 2024 production guidance; cost guidance lowered at Palmarejo and Wharf, increased at Rochester due to timing of ounces placed.

• Acquisition of key concessions near Palmarejo from Fresnillo completed for $25 million, consolidating land position and unlocking new exploration and mine life extension opportunities.

• Hedging program concluded; company now fully exposed to commodity prices.

Financial highlights

• Q2 2024 revenue: $222 million (up 25% YoY); adjusted EBITDA: $52.4 million (up 136% YoY); net income: $1.4 million; adjusted net loss: $3.4 million.

• LTM adjusted EBITDA: $192 million, up 89–90% YoY; margin 21–24%.

• Cash and equivalents: $74–75.9 million; total debt: $629 million; total liquidity: $170 million as of June 30, 2024.

• Free cash flow for Q2: $(36.2) million, impacted by $51 million in capital expenditures.

• Average realized gold price: $2,003/oz (up 11% YoY); silver: $26.20/oz (up 10% YoY).

Outlook and guidance

• 2024 production guidance maintained: 310,000–355,000 gold oz, 10.7–13.3 million silver oz.

• Palmarejo 2024 CAS: $950–$1,150/oz gold, $15.50–$16.50/oz silver; Rochester H2 2024 CAS: $1,500–$1,700/oz gold, $18.00–$20.00/oz silver.

• Capital expenditures for 2024 increased to $124–$200 million; exploration expense guidance raised to $40–$50 million.

• Rochester expected to generate strong free cash flow in H2 2024; Kensington targeted for free cash flow in H2 2025.

• Focus on optimizing Rochester, accelerating exploration, and commencing de-leveraging in H2 2024.