Coeur Q2 2021 Earnings Report
Key Takeaways
Coeur Mining reported a strong second quarter with revenue of $214.9 million and net income of $32.1 million, driven by increased gold and silver production and higher silver prices. The company is progressing with its Rochester expansion and increasing investment at Silvertip.
Revenue increased 6% quarter-over-quarter and 39% year-over-year.
Operating cash flow improved by $62.4 million quarter-over-quarter to $58.1 million.
Gold production increased 2% quarter-over-quarter to 87,275 ounces, while silver production increased 8% to 2.6 million ounces.
Rochester expansion is progressing on schedule, with 31% completion at the end of the second quarter.
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Coeur Revenue by Geographic Location
Forward Guidance
Coeur anticipates production to continue increasing during the second half of 2021 and expects to achieve its full-year production guidance for both gold and silver.
Positive Outlook
- Production expected to continue increasing during the second half of 2021.
- Full-year production guidance for both gold and silver expected to be achieved.
- Rochester expansion progressing on schedule and expected to be largely completed late next year.
- Potential expansion and restart of Silvertip mine in northern British Columbia.
- Investment in exploration leading to additional positive results.
Challenges Ahead
- Seeing some early signs of inflationary pressures in certain areas.
- COVID-19 mitigation and response efforts continue to incur costs.
- Revised CAS guidance for Rochester reflects the non-cash charge as well as higher anticipated diesel, labor and maintenance costs
- Capital expenditures are expected to total $75 - $90 million in 2021 depending on weather conditions and availability of supplies and labor
- Exploration and infill drilling are expected to continue