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Mar 31, 2023

Coeur Q1 2023 Earnings Report

Coeur's financial performance reflected strong overall production and cost management, positioning the company well relative to its full-year guidance ranges.

Key Takeaways

Coeur Mining reported first quarter 2023 financial results, including revenue of $187 million and a GAAP net loss from continuing operations of $25 million, or $0.08 per share. The Rochester expansion remains on-track for mid-year construction completion.

First quarter production was stronger than expected and in-line with 2023 guidance due to solid performances at Palmarejo, Rochester and Wharf.

Rochester expansion remains on-track for mid-year construction completion.

The company ended the quarter with total liquidity of approximately $382 million.

Exploration success continues at Silvertip and Kensington.

Total Revenue
$187M
Previous year: $188M
-0.6%
EPS
-$0.11
Previous year: -$0.05
+120.0%
Adjusted EBITDA
$25.1M
Previous year: $41.5M
-39.5%
Operating Cash Flow
-$35M
Previous year: -$6.43M
+444.6%
Total Debt
$494M
Previous year: $486M
+1.8%
Gross Profit
$11.5M
Previous year: $28.7M
-59.8%
Cash and Equivalents
$67M
Previous year: $73.3M
-8.6%
Free Cash Flow
-$109M
Previous year: -$75.9M
+43.6%
Total Assets
$1.89B
Previous year: $1.82B
+4.0%

Coeur

Coeur

Coeur Revenue by Geographic Location

Forward Guidance

Gold and silver production is expected to increase compared to 2022, driven by the planned construction completion of POA 11 at Rochester mid-year as well as higher expected grades at Wharf due to mine sequencing and resource model enhancements. Overall cost guidance has increased compared to 2022 primarily driven by expected continued inflationary pressures on operating costs.

Positive Outlook

  • Gold production is expected to be between 320,000 and 370,000 ounces.
  • Silver production is expected to be between 10,000,000 and 12,000,000 ounces.
  • Palmarejo gold production is expected to be between 100,000 and 112,500 ounces.
  • Palmarejo silver production is expected to be between 6,500,000 and 7,500,000 ounces.
  • Kensington gold production is expected to be between 100,000 and 112,500 gold ounces

Challenges Ahead

  • The company expects to have an LCM adjustment at Rochester of roughly $10 - $15 million each remaining quarter of 2023.
  • Palmarejo CAS is expected to be $900 - $1,050 per gold ounce and $14.25 - $15.25 per silver ounce.
  • Kensington CAS is expected to be $1,500 - $1,700 per gold ounce.
  • Wharf CAS is expected to be $1,200 - $1,350 per gold ounce.
  • Capital expenditures, sustaining are expected to be between $120,000,000 and $145,000,000