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Sep 30, 2021
Coeur Q3 2021 Earnings Report
Coeur's financial performance was influenced by solid production results and strategic investments, with Wharf being a standout performer.
Key Takeaways
Coeur Mining reported Q3 2021 revenue of $208.0 million and a GAAP net loss of $54.8 million, or $0.21 per share. Adjusted EBITDA was $48.8 million, and the company reaffirmed its production guidance while updating cost and capital expenditure guidance. The company is focusing on exploration and the Rochester expansion project.
Coeur reaffirmed its production guidance for 2021, expecting to be within the ranges of 322,500 - 367,500 ounces of gold and 9.7 - 12.2 million ounces of silver.
The company achieved another quarterly exploration record, investing approximately $20.0 million and drilling roughly 326,500 feet across six locations.
Wharf's gold production increased 17% quarter-over-quarter, resulting in $24.9 million of operating cash flow and $23.9 million of free cash flow.
Rochester expansion is now 42% complete, with the company seeking to mitigate inflationary pressures on remaining unawarded work packages.
Coeur
Coeur
Forward Guidance
Coeur Mining provided guidance for 2021 production and costs across its operations, anticipating steady performance and ongoing investment in key projects.
Positive Outlook
- Full-year 2021 production guidance remains unchanged for Palmarejo, Rochester, Kensington and Wharf.
- CAS guidance remains unchanged for Palmarejo and Kensington.
- Capital expenditures are expected to be slightly lower at approximately $35 - $40 million for Palmarejo.
- Capital expenditures are expected to be slightly lower at approximately $158 - $170 million for Rochester.
- Capital expenditures are expected to be slightly lower at approximately $21 - $25 million for Kensington.
Challenges Ahead
- CAS in 2021 are expected to be slightly higher at $21.00 - $23.00 per silver ounce for Rochester (previously $20.00 - $22.00 per ounce).
- CAS in 2021 are expected to be slightly higher at $1,450 - $1,550 per gold ounce for Rochester (previously $1,350 - $1,500 per ounce).
- Full-year 2021 production guidance remains unchanged at 3.2 - 4.4 million ounces of silver and 22,500 - 32,500 ounces of gold for Rochester.
- Gold production in 2021 remains unchanged at 85,000 - 95,000 ounces for Wharf.
- CAS in 2021 remains unchanged at $960 - $1,060 per gold ounce for Wharf.