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Sep 30, 2020

Coeur Q3 2020 Earnings Report

Achieved multi-year high financial results, driven by increased production and higher prices.

Key Takeaways

Coeur Mining reported strong Q3 2020 results with revenue of $229.7 million and net income of $26.9 million, driven by increased production and higher gold and silver prices. The company reduced total debt by $47.5 million and increased cash and cash equivalents by 9%.

Reported highest quarterly financial results in nearly a decade, with revenue up 49% and adjusted EBITDA more than doubled quarter-over-quarter.

Experienced strong quarter-over-quarter production growth, with gold production increased 23% to 95,995 ounces and silver production increased 58% to 2.6 million ounces.

Successfully commenced construction on schedule for Rochester expansion.

Bolstered balance sheet and financial flexibility by reducing total debt by $47.5 million and increasing cash and cash equivalents by 9%.

Total Revenue
$230M
Previous year: $199M
+15.2%
EPS
$0.16
Previous year: -$0.02
-900.0%
Adjusted EBITDA
$90.8M
Operating Cash Flow
$79.5M
Total Debt
$301M
Gross Profit
$84.7M
Previous year: $12.8M
+560.0%
Cash and Equivalents
$77.1M
Previous year: $65.3M
+18.0%
Free Cash Flow
$56.5M
Total Assets
$1.37B
Previous year: $1.69B
-18.8%

Coeur

Coeur

Coeur Revenue by Geographic Location

Forward Guidance

Coeur Mining provided updated full-year 2020 guidance, anticipating slightly higher gold production and solid cost controls.

Positive Outlook

  • Full-year 2020 gold production is expected to be slightly higher at 100,000 - 110,000 ounces.
  • CAS for gold are expected to be $650 - $750 per ounce.
  • Capital expenditures are expected to be modestly lower at approximately $27 - $30 million.
  • Full-year 2020 silver production is expected to be 6.0 - 7.0 million ounces.
  • CAS for silver are anticipated to be $9.50 - $10.50 per ounce

Challenges Ahead

  • Full-year 2020 silver production is anticipated to be modestly lower at 3.1 - 3.7 million ounces (Rochester).
  • CAS for silver in 2020 are expected to be $13.50 - $14.75 per ounce (Rochester).
  • Production in 2020 is expected to be slightly lower at 122,500 - 130,000 ounces of gold (Kensington).
  • Capital expenditures are expected to be modestly higher at approximately $10 - $12 million (Silvertip).
  • Exploration investment is expected to be $50 - $60 million.