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Dec 31, 2021
Coeur Q4 2021 Earnings Report
Coeur's diversified portfolio led to solid contributions and its strongest annual revenue in nearly a decade, with production growth and strategic investments setting the stage for future growth.
Key Takeaways
Coeur Mining reported Q4 2021 revenue of $208 million and a GAAP net loss of $11 million, or $0.04 per share. The company achieved full-year gold and silver production within guidance ranges and advanced the Rochester POA 11 expansion project. Coeur's largest exploration program in company history extended mine lives and drove resource growth.
Solid fourth quarter production growth led to full-year production within guidance ranges, with gold and silver production increasing 2% and 6% quarter-over-quarter, respectively.
Strong cost performance from primary gold operations, with full-year adjusted costs applicable to sales at Palmarejo, Kensington and Wharf within their guidance ranges.
Largest exploration program in Company history extended mine lives and drove resource growth, increasing total exploration investment 41% year-over-year to $71 million in 2021.
Updated capital and schedule estimates for Rochester expansion provide clarity, with construction expected to be completed mid-2023 with commissioning to follow.
Coeur
Coeur
Forward Guidance
Coeur provided full-year 2022 guidance with gold and silver production expected to remain roughly consistent with 2021 levels. Overall cost guidance has increased compared to 2021 primarily driven by expected inflationary pressures on operating costs.
Positive Outlook
- Palmarejo gold production is expected to be 100,000 - 110,000 ounces and silver production is expected to be 6,000,000 - 7,000,000 ounces.
- Rochester gold production is expected to be 35,000 - 43,000 ounces and silver production is expected to be 3,000,000 - 4,000,000 ounces.
- Kensington gold production is expected to be 110,000 - 120,000 ounces.
- Wharf gold production is expected to be 70,000 - 80,000 ounces.
- Capital Expenditures, Sustaining is expected to be $115,000,000 - $140,000,000
Challenges Ahead
- Palmarejo (co-product) costs are expected to be $750 - $850 per gold ounce and $13.50 - $14.50 per silver ounce.
- Rochester (co-product) costs are expected to be $1,490 - $1,590 per gold ounce and $20.75 - $22.75 per silver ounce.
- Kensington costs are expected to be $1,150 - $1,250 per gold ounce.
- Wharf (by-product) costs are expected to be $1,225 - $1,325 per gold ounce.
- Capital Expenditures, Development is expected to be $205,000,000 - $250,000,000