Coeur Mining (CDE) Q4 2023 earnings summary

Executive summary

• Strong Q4 production lifted revenue and adjusted EBITDA; FY2023 gold and silver production met guidance as Rochester’s expansion ramp-up continued.

• FY2023 revenue was $821.2M and adjusted EBITDA was $142.3M; Wharf generated record free cash flow, while exploration expanded reserves and resources.

• 2024 priorities include completing Rochester’s ramp-up, containing costs, advancing high-return exploration and preserving balance-sheet flexibility.

Financial highlights

• FY2023 revenue was $821.2M, up 5% from $785.6M; adjusted EBITDA was $142.3M versus $139.0M in 2022, with a 17% adjusted EBITDA margin.

• Q4 revenue was $262.1M, up 35% QoQ; adjusted EBITDA was $64.3M, versus $30.6M in Q3, with a 25% margin.

• FY2023 reported net loss was $103.6M, or $0.30/share; adjusted net loss was $78.0M, or $0.23/share, versus $89.1M, or $0.32/share, in 2022.

• FY operating cash flow was $67.3M and capital expenditures were $364.6M, resulting in free cash flow of negative $297.3M; capex was below guidance due to Rochester payment timing.

• Q4 operating cash flow was $65.3M; operating cash flow before working-capital changes was $45.3M for Q4 and $58.8M for FY.

Outlook and guidance

• FY2024 consolidated production guidance is 310,000–355,000 oz gold and 10.7M–13.3M oz silver, with growth expected from Rochester’s ramp-up.

• Rochester guidance is 37,000–50,000 oz gold and 4.8M–6.6M oz silver; production is expected to rise after a slow Q1, with commissioning and ramp-up targeted for completion in H1.

• Rochester H2 adjusted CAS guidance is $1,200–$1,400/oz gold and $14–$16/oz silver; full-year cost guidance was deferred during commissioning and ramp-up.

• 2024 capital guidance is $116M–$158M sustaining and $19M–$26M development; exploration guidance is $40M–$50M expensed and $7M–$13M capitalized.

• Guidance assumes $2,000/oz gold and $23.47/oz silver and excludes hedge impacts; Rochester cost guidance is deferred until mid-year.