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Sep 30, 2024
Coeur Q3 2024 Earnings Report
Coeur's financial performance improved significantly due to increased production, cost reductions, and higher prices.
Key Takeaways
Coeur Mining reported a strong third quarter in 2024, marked by double-digit production increases and cost reductions, leading to a net income of $49 million and adjusted EBITDA of $126 million. The company also generated strong free cash flow and announced the acquisition of SilverCrest to create a leading global silver company.
Gold production increased by 21% and silver production increased by 15% due to higher production at all four operations.
Revenue increased by 41% quarter-over-quarter to $313 million and adjusted EBITDA increased by 140% quarter-over-quarter to $126 million.
Rochester expansion remains on track to achieve year-end throughput and production guidance.
The company announced the acquisition of SilverCrest, expected to close in the first quarter of 2025.
Coeur
Coeur
Forward Guidance
Coeur reaffirmed its 2024 production and cost guidance based on the third quarter performance.
Positive Outlook
- Full-year 2024 gold production is expected to be 310,000 - 355,000 ounces.
- Full-year 2024 silver production is expected to be 10,700,000 - 13,300,000 ounces.
- Palmarejo CAS is expected to be $950 - $1,150 per gold ounce and $15.50 - $16.50 per silver ounce.
- Kensington CAS is expected to be $1,525 - $1,725 per gold ounce.
- Wharf CAS is expected to be $950 - $1,050 per gold ounce.
Challenges Ahead
- Exploration expense guidance excludes $15 - $20 million of underground mine development and support costs associated with Silvertip.
- Guidance figures assume estimated prices of $2,300/oz gold and $27.00/oz silver as well as CAD of 1.25 and MXN of 17.00.
- Guidance figures exclude the impact of any metal sales or foreign exchange hedges.
- Rochester CAS for the second half of 2024 are expected to be $1,500 - $1,700 per gold ounce and $18.00 - $20.00 per silver ounce.
- Capital expenditures are expected to be $124 - $158 million for sustaining and $36 - $42 million for development.