Coeur Q4 2023 Earnings Report
Key Takeaways
Coeur Mining reported a strong fourth quarter in 2023, with a 35% increase in quarterly revenue to $262 million. The company's performance was boosted by production increases at Rochester and strong finishes at Kensington and Wharf. Despite a GAAP net loss of $26 million, the company generated $65 million in operating cash flow and $64 million in adjusted EBITDA.
Revenue increased by 35% quarter-over-quarter, driven by strong performances at Rochester and Wharf.
Gold and silver production saw significant increases, with gold reaching 101,609 ounces and silver at 3.1 million ounces.
The Rochester expansion is progressing, with commissioning activities expected to be completed in the first half of 2024.
Wharf delivered an all-time record annual free cash flow, highlighting its strong operational performance.
Coeur
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Coeur Revenue by Geographic Location
Forward Guidance
Coeur Mining anticipates increased gold and silver production in 2024, propelled by the commissioning and ramp-up of the Rochester expansion. However, overall cost guidance has risen due to expected inflationary pressures on operating costs. The company has deferred providing cost guidance for Rochester for the first half of 2024, with the provided cost guidance reflecting the second half of the year.
Positive Outlook
- Gold production is expected to increase due to the Rochester expansion.
- Silver production is expected to increase due to the Rochester expansion.
- Rochester expansion commissioning and ramp-up are expected to complete during the first half of 2024.
- Exploration programs are focused on building reserves and extending mine life at Kensington.
- Exploration programs are focused on testing higher grade structures at Rochester.
Challenges Ahead
- Overall cost guidance has increased due to expected continued inflationary pressures on operating costs.
- Coeur expects to have an LCM adjustment at Rochester of roughly $10 - $15 million in the first quarter of 2024.
- Cost guidance for Rochester has been deferred for the first half of 2024.
- Full-year 2024 production at Palmarejo is expected to be relatively flat compared to 2023 production.
- Full-year 2024 production at Wharf is expected to be slightly lower than 2023 production.