Coeur Q3 2023 Earnings Report
Key Takeaways
Coeur Mining, Inc. reported a stronger third quarter with a 10% increase in revenue to $195 million and a 38% increase in adjusted EBITDA. This growth was primarily driven by increased gold production and decreased costs. The Rochester expansion project is now complete, and a significant production increase is underway.
Revenue increased 10% and adjusted EBITDA increased 38% quarter-over-quarter, driven by stronger gold production and lower costs.
The Rochester expansion project is now complete, with first production achieved in mid-September.
Rochester saw a material step-up in production during October, more than doubling silver and tripling gold production compared to year-to-date monthly averages.
Gold production and cost guidance updated; silver guidance remains unchanged.
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Coeur Revenue by Geographic Location
Forward Guidance
The Company has made the following changes to its 2023 gold production and cost guidance: (i) the low end of Wharf’s gold production guidance has been revised upward; and (ii) Kensington’s 2023 gold production and cost guidance have been refined to reflect the cumulative impact of paste backfill challenges at Kensington earlier in the year.
Positive Outlook
- Full-year 2023 Palmarejo production is expected to be 100,000 - 112,500 ounces of gold and 6.5 - 7.5 million ounces of silver
- Full-year 2023 Rochester production is expected to be 3.5 - 4.5 million ounces of silver and 35,000 - 50,000 ounces of gold.
- Full-year 2023 Kensington production is now expected to be 81,000 - 85,000 gold ounces
- Full-year 2023 Wharf production is expected to be 88,000 - 95,000 gold ounces
- The Company expects second half 2023 adjusted CAS1 at Rochester to be similar to actual first half 2023 adjusted CAS1 as Coeur completes and ramps up the expansion project.
Challenges Ahead
- Kensington’s 2023 gold production and cost guidance have been refined to reflect the cumulative impact of paste backfill challenges at Kensington earlier in the year.
- Full-year 2023 Kensington CAS1 in 2023 are now expected to be $1,850 - $1,950 per gold ounce
- High capital expenditures related to Rochester expansion
- Ongoing commissioning and ramp-up activities at Rochester will continue over the remainder of the year and into the first half of 2024
- Unfavorable changes in working capital