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Dec 31, 2022
Coeur Q4 2022 Earnings Report
Coeur's Q4 2022 financial performance was marked by solid production growth and strategic liquidity bolstering.
Key Takeaways
Coeur Mining reported Q4 2022 revenue of $210 million and net income of $49 million, or $0.17 per share, driven by a gain on the sale of the Crown and Sterling holdings. Adjusted EBITDA was $36 million. The company ended the quarter with approximately $342 million in total liquidity.
Gold and silver production increased 5% and 4% quarter-over-quarter, respectively.
Rochester delivered strong quarterly performance with silver and gold production increasing 31% and 32% quarter-over-quarter, respectively.
POA 11 expansion nearing scheduled mid-year construction completion and remains on-track.
Liquidity further bolstered to support remaining elevated levels of growth investments.
Coeur
Coeur
Forward Guidance
Coeur expects increased gold and silver production in 2023, driven by the planned construction completion of POA 11 at Rochester and higher expected grades at Wharf. Overall cost guidance has increased due to expected continued inflationary pressures. Coeur has elected to defer providing cost guidance at Rochester until mid-year, following the transitional period anticipated in the first half of 2023. The Company expects to have an LCM adjustment at Rochester of roughly $10 - $15 million each quarter in 2023.
Positive Outlook
- Gold production is expected to be between 320,000 and 370,000 ounces.
- Silver production is expected to be between 10.0 and 12.0 million ounces.
- Palmarejo is expected to produce 100,000 - 112,500 ounces of gold and 6.5 - 7.5 million ounces of silver.
- Kensington is expected to produce 100,000 - 112,500 gold ounces.
- Wharf is expected to produce 85,000 - 95,000 gold ounces.
Challenges Ahead
- Continued inflationary pressures on operating costs are expected.
- An LCM adjustment at Rochester of roughly $10 - $15 million each quarter in 2023 is expected.
- Palmarejo CAS is expected to be $900 - $1,050 per gold ounce and $14.25 - $15.25 per silver ounce.
- Kensington CAS is expected to be $1,500 - $1,700 per gold ounce.
- Wharf CAS is expected to be $1,200 - $1,350 per gold ounce.