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, a 136% year-over-year increase.

• 2024 production guidance maintained for all operations; 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 expanding exploration and mine life extension potential.

• 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.

• LTM adjusted EBITDA: $192 million, up 89–90% YoY; adjusted EBITDA margin at 24% in Q2 2024.

• Free cash flow for Q2: $(36.2) million, improved from Q1 2024; operating cash flow: $15 million.

• Cash and equivalents: $74–75.9 million; total debt: $629 million.

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

Outlook and guidance

• 2024 production guidance: 310,000–355,000 gold oz, 10.7–13.3 million silver oz; guidance reaffirmed for all operations.

• Cost guidance lowered for Palmarejo and Wharf, increased for Rochester's second half; 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, with 52% spent in H1; exploration 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.