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Jun 30, 2024
Coeur Q2 2024 Earnings Report
Coeur's financial performance improved in Q2 2024, driven by higher metal prices and increased production at Rochester and Kensington.
Key Takeaways
Coeur Mining reported a revenue of $222 million and a net income of $1.4 million, or $0.00 per share, for the second quarter of 2024. The company's performance was boosted by the successful ramp-up of the Rochester operation and higher gold production at Kensington.
Rochester achieved mid-year target run rates, with throughput rates exceeding 88,000 tons per day.
Higher gold and silver prices drove revenue and adjusted EBITDA increases.
Kensington's multi-year exploration program continued to yield positive results.
Coeur closed the acquisition of key concessions near Palmarejo, unlocking significant potential to extend mine life.
Coeur
Coeur
Forward Guidance
Coeur reaffirmed its 2024 production guidance and updated cost guidance for Palmarejo, Rochester and Wharf.
Positive Outlook
- Full-year 2024 production guidance maintained at 310,000 - 355,000 gold ounces and 10.7 - 13.3 million silver ounces.
- CAS guidance at Palmarejo and Wharf reduced to reflect strong cost management efforts.
- Exploration guidance increased to reflect additional investment at Wharf and Kensington based on recent results.
- Capital expenditure guidance increased to reflect the accelerated timing of certain equipment purchases and final payments related to the Rochester expansion.
- Rochester now stands on the threshold of a sustained period of strong free cash flow generation beginning in the second half of this year.
Challenges Ahead
- Rochester's second half CAS guidance ranges increased to reflect timing of ounces placed under leach.
- Exploration investment in 2024 is now expected to total $40 - $50 million for expansion drilling (classified as exploration expense) and $15 - $20 million for infill drilling (capitalized exploration).
- The full-year guidance range for infill drilling has been increased to reflect additional exploration investment at Wharf to drill the Juno and North Foley targets and at Kensington to continue drilling in zones in Upper and Lower Kensington.
- Capital expenditures are expected to be $61 - $79 million (previously $50 - $70 million), which reflects fleet enhancements as part of the ramp-up of the newly completed Rochester expansion as well as sustaining capital and an earlier-than-expected conclusion to certain final negotiations and payments related to the Rochester expansion that were originally estimated to take place in 2025.
- Approximately 29% of Palmarejo’s gold sales in the second quarter were sold under the gold stream agreement at a price of $800 per ounce, totaling 7,021 ounces. The Company anticipates approximately 30% - 40% of Palmarejo’s 2024 gold sales will be sold under the gold stream agreement