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Jun 30, 2023
Coeur Q2 2023 Earnings Report
Coeur's financial performance was influenced by operating strength at Rochester and Wharf, offsetting lower production at Kensington. The Rochester expansion neared completion, and the company maintained balance sheet flexibility.
Key Takeaways
Coeur Mining reported Q2 2023 revenue of $177 million and a net loss of $32 million, or $0.10 per share. The Rochester expansion was approximately 97% complete. The company maintained its full-year silver production guidance but revised gold production guidance to reflect a lower outlook at Kensington.
Rochester expansion was approximately 97% complete as of July 31, with initial ounces expected to be recovered next month.
Second quarter operating strength at Rochester and Wharf offset lower production at Kensington.
Full-year silver production guidance maintained; gold production guidance revised to reflect lower outlook at Kensington.
Balance sheet flexibility maintained to support remaining capital investments.
Coeur
Coeur
Forward Guidance
Coeur reiterated its 2023 production and cost guidance other than (i) updating production and costs at Kensington and (ii) modifying capital expenditures to reflect the updated estimate to complete the Rochester expansion.
Positive Outlook
- Full-year 2023 production is expected to be 100,000 - 112,500 ounces of gold and 6.5 - 7.5 million ounces of silver at Palmarejo.
- Full-year 2023 production is expected to be 3.5 - 4.5 million ounces of silver and 35,000 - 50,000 ounces of gold at Rochester.
- Full-year 2023 production is expected to be 84,000 - 95,000 gold ounces at Kensington.
- Full-year 2023 production is expected to be 85,000 - 95,000 gold ounces at Wharf.
- CAS in 2023 are expected to be $900 - $1,050 per gold ounce and $14.25 - $15.25 per silver ounce at Palmarejo.
Challenges Ahead
- CAS in 2023 are expected to be $1,650 - $1,750 per gold ounce at Kensington.
- CAS in 2023 are expected to be $1,200 - $1,350 per gold ounce at Wharf.
- Capital Expenditures, Sustaining is expected to be $148 - $168 million.
- Capital Expenditures, Development is expected to be $230 - $264 million.
- Exploration, Expensed is expected to be $30 - $35 million.