Coeur Mining (CDE) Q3 2024 earnings summary

Executive summary

• Achieved record free cash flow inflection, with Q3 2024 revenue of $313.5M, net income of $48.7M–$49M, and adjusted EBITDA of $126M, driven by double-digit production increases, higher metals prices, and cost declines.

• Gold and silver production rose 21% and 15% quarter-over-quarter, with cost per ounce for both metals down 12%, resulting in margins more than double the prior period.

• Announced $1.7B all-stock acquisition of SilverCrest Metals, expected to close in Q1 2025, to create a leading global silver company, enhance cost and cash flow profile, and accelerate deleveraging.

• Completed Rochester expansion, now the largest open pit heap leach operation in North America, achieving commercial production and throughput over 88,000 tons/day.

• Net debt-to-EBITDA ratio fell below 2.0x for the first time in three years, with $50M repaid on the revolving credit facility.

Financial highlights

• Q3 2024 revenue: $313.5M (+41% sequentially); net income: $48.7M–$49M ($0.12/share); adjusted EBITDA: $126M (+140% sequentially); free cash flow: $69M–$69.1M, highest in over a decade.

• Adjusted net income was $47.2M ($0.12/share); operating cash flow was $111M, up from $15M in the prior quarter.

• Total debt at quarter-end: $605M–$605.2M; cash and equivalents: $76.9M–$78.7M; liquidity: $222M.

• Adjusted EBITDA margin was 40% in Q3 2024, up from 24% in Q2.

• Average realized gold and silver prices were $2,309/oz and $29.86/oz, up 15% and 14% quarter-over-quarter.

Outlook and guidance

• 2024 production and cost guidance reaffirmed: gold 310,000–355,000 oz, silver 10.7–13.3M oz; cost guidance: Palmarejo gold $950–$1,150/oz, Rochester gold $1,500–$1,700/oz, Kensington gold $1,525–$1,725/oz, Wharf gold $950–$1,050/oz.

• Capital expenditures for 2024 expected at $124M–$200M, with 75% spent YTD; exploration expense $40M–$50M.

• No outstanding gold or silver hedges as of September 30, 2024; no current plans to implement new hedges.

• Focus on optimizing Rochester, closing the SilverCrest acquisition, and integrating Las Chispas.

• Free cash flow inflection point expected to be sustained in Q4, with even stronger results projected for 2025 post-acquisition.