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Jun 30, 2022
Coeur Q2 2022 Earnings Report
Coeur's financial performance reflected resilience of its multi-asset mine portfolio, with revenue increasing due to higher production levels.
Key Takeaways
Coeur Mining, Inc. reported second quarter 2022 financial results, including revenue of $204 million and cash flow from operating activities of $23 million. The Company reported GAAP net loss from continuing operations of $77 million, or $0.28 per share. On an adjusted basis, Coeur reported EBITDA of $43 million and net loss from continuing operations of $13 million, or $0.05 per share.
Reaffirmed full-year gold and silver production guidance, aligning with company expectations due to increased production during the quarter.
Experienced strong quarterly production increases at Kensington, Wharf, and Rochester operations.
Updated full-year cost guidance to reflect inflationary pressures and increased planned exploration investment by approximately $11 million.
Rochester expansion project remains on-track for completion in mid-2023 with total estimated project capital remaining approximately $600 million.
Coeur
Coeur
Forward Guidance
Coeur reaffirmed its 2022 production guidance but updated cost guidance to reflect industry-wide inflationary pressures on consumables.
Positive Outlook
- Full-year 2022 Palmarejo production is expected to be 100,000 - 110,000 ounces of gold and 6.0 - 7.0 million ounces of silver
- Full-year 2022 Rochester production is expected to be 3.0 - 4.0 million ounces of silver and 35,000 - 43,000 ounces of gold
- Full-year 2022 Kensington production is expected to be 110,000 - 120,000 ounces of gold
- Full-year 2022 Wharf production is expected to be 70,000 - 80,000 ounces
- Capital expenditures are expected to be $2 - $5 million (unchanged) at Wharf
Challenges Ahead
- Palmarejo CAS in 2022 are expected to be $825 - $925 per gold ounce (previously $750 - $850 per ounce) and $12.75 - $13.75 per silver ounce (previously $13.50 - $14.50 per ounce).
- Rochester CAS in 2022 are expected to be $20.00 - $26.00 per silver ounce (previously $20.75 - $22.75 per ounce) and $1,650 - $1,850 per gold ounce (previously $1,490 - $1,590 per ounce).
- Kensington CAS in 2022 are expected to be $1,300 - $1,400 per gold ounce (previously $1,150 - $1,250 per ounce).
- Wharf CAS in 2022 are expected to be $1,250 - $1,350 per gold ounce (previously $1,225 - $1,325).
- Capital expenditures, Sustaining: $110 - $135 million (Updated) vs $115 - $140 million (Previous)