0000215466
false
0000215466
2024-05-01
2024-05-01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
May 1, 2024
Coeur Mining, Inc.
(Exact name of registrant as specified in its charter
)
Delaware 1-8641 82-0109423
(State or other jurisdiction (Commission (IRS Employer
of incorporation or organization) File Number) Identification No.)
200 South Wacker Drive
Suite 2100
Chicago
,
Illinois
60606
(Address of Principal Executive Offices)
(
312
)
489-5800
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instructions A.2 below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock (par value $.01 per share) CDE New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 ((s)230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 ((s)240.12b-2 of this
chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act.
..
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Item 2.02. Results of Operations and Financial Condition.
On May 1, 2024, Coeur Mining, Inc. issued a press release announcing its
financial results for the quarter ended March 31, 2024. A copy of the press
release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference. The press release shall be deemed furnished,
not filed, for purposes of this Current Report on Form 8-K.
Item 9.01.
Financial Statements and Exhibits.
(d) List of Exhibits
Exhibit No. Description
Exhibit 99.1 Press Release dated
May
1, 2024
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
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Exhibit Index
Exhibit No. Description
Exhibit 99.1 Press Release dated
May
1
, 2024
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COEUR MINING, INC.
Date: May 1, 2024 By:
/s/ Thomas S. Whelan
Name: Thomas S. Whelan
Title: Senior Vice President and Chief Financial Officer
NEWS RELEASE
Coeur Reports First Quarter 2024 Results
Reaffirms Full-Year 2024 Guidance; Achieves Commercial Production at Rochester
Chicago, Illinois
- May 1, 2024 - Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE: CDE)
today reported first quarter 2024 financial results, including revenue of $213
million and cash flow from operating activities of $(16) million. The Company
reported GAAP net loss from continuing operations of $29 million, or $0.08 per
share. On an adjusted basis
1
, Coeur reported EBITDA of $44 million, cash flow from operating activities
before changes in working capital of $(31) million and net loss from
continuing operations of $19 million, or $0.05 per share.
Key Highlights
.
Strong year-over-year production increases in-line with 2024 guidance
- Solid performances at Palmarejo and Wharf led to total production of 80,744
ounces of gold and 2.6 million ounces of silver compared to 69,039 ounces of
gold and 2.5 million ounces of silver in the first quarter of 2023. Production
levels are expected to increase over the balance of 2024, driven primarily by
the ramp-up at Rochester
.
Increased revenue and adjusted EBITDA driven by increased production and lower
costs
- Revenue increased 14% year-over-year while adjusted EBITDA increased 76%
compared to the first quarter of 2023, raising adjusted LTM EBITDA by 32% to
$162 million through the end of the period compared to a year ago. The Company
also saw a 5% reduction year-over-year in cost applicable to sales, totaling
$146 million for the first quarter
.
Commercial production achieved at Rochester; ramp-up on-track
- Commissioning of Rochester's new three-stage crushing circuit and truck
load-out facility was completed on March 7, 2024. The crushing circuit has
routinely exceeded 70,000 tons per day since commissioning was completed.
Commercial production was achieved as of March 31, 2024 and the ramp-up to
sustained nameplate capacity of 88,000 tons per day remains on schedule for
the end of the second quarter
.
Kensington's multi-year program on target to increase mine life by year-end
- The Company continued its multi-year underground mine development and
exploration program, investing approximately $14 million during the quarter.
Coeur has now completed roughly 71% of total underground mine development and
drilling since inception of the program in 2022. The program is expected to
extend Kensington's reserve-based mine life beyond five years by the end of
2024
.
Published 2023 ESG Report
- On April 23, 2024, Coeur published its 2023 ESG Report which highlighted the
critical role in the modern economy of the metals the Company produces and
progress on ESG priorities, such as ongoing adoption of the Global Industry
Standard on Tailings Management and the roll-out of Coeur's Biodiversity
Management Standard, as well as advances in climate resilience including the
expectation to achieve a 35% reduction in net intensity of greenhouse gas
emissions by year-end
"Coeur began 2024 with solid first quarter production in a catalyst-rich year
for the Company," said Mitchell J. Krebs, President and Chief Executive
Officer. "This strong start, highlighted by the
1
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achievement of commercial production at Rochester at the end of the first
quarter, puts us in a great position to achieve full-year 2024 guidance and
begin generating positive free cash flow in the second half of the year.
Palmarejo achieved its highest quarterly production levels in several years
thanks to strong contributions from both Guadalupe and Independencia
underground operations while Wharf delivered a stronger than planned quarter
after achieving record performance in 2023.
"The team at Rochester completed the pre-commissioning and commissioning of
the new crushing circuit in the first quarter as planned. The next milestone
will be to complete ramp-up to sustained nameplate capacity of 88,000 tons per
day by the end of the second quarter. The combination of lower capex and
significantly higher production, coupled with higher commodity prices, are
expected to lead to strong cash flow generation in the second half of 2024
which will be allocated to debt reduction and funding near-mine exploration
priorities. I am pleased with the progress of Kensington's multi-year
underground development and exploration program, which is expected to wrap up
mid-year next year, and we look forward to achieving our goal of extending its
mine life beyond five years by year-end."
2
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Financial and Operating Highlights (Unaudited)
(Amounts 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
millions,
except
per
share
amounts,
gold
ounces
produced
&
sold,
and
per-ounce
metrics)
Gold $ 151.8 $ 187.7 $ 139.5 $ 121.4 $ 127.1
Sales
Silver $ 61.3 $ 74.3 $ 55.1 $ 55.9 $ 60.2
Sales
Consolidated $ 213.1 $ 262.1 $ 194.6 $ 177.2 $ 187.3
Revenue
Costs $ 146.0 $ 192.3 $ 147.9 $ 139.6 $ 153.1
Applicable
to
Sales
2
General $ 14.4 $ 10.2 $ 9.5 $ 9.8 $ 12.1
and
Administrative
Expenses
Net $ (29.1) $ (25.5) $ (21.1) $ (32.4) $ (24.6)
Income
(Loss)
Net $ (0.08) $ (0.07) $ (0.06) $ (0.10) $ (0.08)
Income
(Loss)
Per
Share
Adjusted $ (19.0) $ (6.2) $ (18.6) $ (20.2) $ (33.1)
Net
Income
(Loss)
1
Adjusted $ (0.05) $ (0.02) $ (0.05) $ (0.06) $ (0.11)
Net
Income
(Loss)
1
Per
Share
Weighted 385.0 380.5 356.7 333.1 301.0
Average
Shares
Outstanding
EBITDA $ 27.2 $ 25.0 $ 15.3 $ 4.0 $ 16.2
1
Adjusted $ 44.3 $ 64.3 $ 30.6 $ 22.2 $ 25.1
EBITDA
1
Cash $ (15.9) $ 65.3 $ (2.4) $ 39.4 $ (35.0)
Flow
from
Operating
Activities
Capital $ 42.1 $ 92.7 $ 112.3 $ 85.6 $ 74.0
Expenditures
Free $ (58.0) $ (27.4) $ (114.7) $ (46.2) $ (109.0)
Cash
Flow
1
Cash, $ 67.5 $ 61.6 $ 53.2 $ 56.8 $ 67.0
Equivalents
&
Short-Term
Investments
Total $ 585.6 $ 545.3 $ 512.2 $ 469.4 $ 494.1
Debt
3
Average $ 1,864 $ 1,886 $ 1,788 $ 1,809 $ 1,794
Realized
Price
Per
Ounce
-
Gold
Average $ 23.57 $ 24.79 $ 24.88 $ 23.91 $ 23.25
Realized
Price
Per
Ounce
-
Silver
Gold 80,744 101,609 78,617 68,406 69,039
Ounces
Produced
Silver 2.6 $ 3.1 2.3 2.4 2.5
Ounces
Produced
Gold 81,416 99,540 78,015 67,090 70,866
Ounces
Sold
Silver 2.6 $ 3.0 2.2 2.3 2.6
Ounces
Sold
Adjusted $ 1,267 $ 1,225 $ 1,273 $ 1,464 $ 1,381
CAS
per
AuOz
1
Adjusted $ 14.63 $ 17.03 $ 17.85 $ 16.77 $ 15.83
CAS
per
AgOz
1
Financial Results
First quarter 2024 revenue totaled $213 million compared to $262 million in
the prior period and $187 million in the first quarter of 2023. The Company
produced 80,744 and 2.6 million ounces of gold and silver, respectively,
during the quarter. Metal sales for the quarter totaled 81,416 ounces of gold
and 2.6 million ounces of silver. Average realized gold and silver prices for
the quarter were $1,864 and $23.57 per ounce, respectively, compared to $1,886
and $24.79 per ounce in the prior period and $1,794 and $23.25 per ounce in
the first quarter of 2023.
Gold and silver sales represented 71% and 29% of quarterly revenue,
respectively, compared to 72% and 28% in the prior period. The Company's U.S.
operations accounted for approximately 55% of first quarter revenue compared
to 65% in the fourth quarter of 2023.
Costs applicable to sales
2
decreased 24% quarter-over-quarter to $146 million, largely due to lower
production in the period. General and administrative expenses increased 41%
quarter-over-quarter to $14 million largely driven by annual incentive payouts.
Coeur invested approximately $14 million ($11 million expensed and $3 million
capitalized) in exploration during the quarter, consistent with roughly $14
million ($11 million expensed and $3 million
3
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capitalized) in the prior period. See the "Operations" and "Exploration"
sections for additional detail on the Company's exploration activities.
The Company recorded income tax expense of approximately $16 million during
the first quarter. Cash income and mining taxes paid during the period totaled
approximately $20 million, including $9 million for payment of the annual
Mexican mining royalty tax.
Quarterly operating cash flow totaled $(16) million compared to $65 million in
the prior period, mainly driven by lower metal sales. Changes in working
capital during the quarter were $15 million, compared to $20 million in the
prior period, reflecting the timing of prepayments, tax payments in Mexico and
semi-annual interest payments on the Company's 2029 5.125% Senior Notes.
First quarter capital expenditures were $42 million compared to $93 million
in the prior period, reflecting the final major investment quarter for the
completed Rochester expansion. Sustaining and development capital expenditures
accounted for approximately $34 million and $8 million, or 81% and 19%,
respectively, of Coeur's total capital investment during the quarter.
Balance Sheet and Liquidity Update
Coeur completed an amendment to its revolving credit facility ("RCF") during
the first quarter which included expanding total borrowing capacity to $400
million and extending the term so that it now matures in the first quarter of
2027. The Company ended the quarter with total liquidity of approximately $213
million, including $67 million of cash and $145 million of available capacity
under its $400 million RCF
4
.
LTM adjusted EBITDA totaled $162 million at the end of the first quarter
compared to $142 million at the end of the fourth quarter of 2023 and $123
million at the end of the first quarter of 2023. Total debt increased to $586
million at the end of the first quarter compared to $545 million at the end of
the fourth quarter of 2023 and $494 million at the end of the first quarter of
2023 primarily due to final Rochester expansion-related payments, leading to a
total debt to adjusted EBITDA leverage ratio of 3.6x at the end of the period
compared to 4.0x at the end of the first quarter of 2023.
During the first quarter, Coeur satisfied $55 million associated with prepay
agreements at Kensington, Rochester and Wharf. Additionally, the Company
exercised options under amended agreements to receive an additional $25
million prepayment at Kensington, an approximately $18 million prepayment for
deliveries of gold and silver dore from Rochester, and a roughly $13 million
prepayment for deliveries of gold concentrate from Wharf. Coeur also completed
a $25 million flow through financing program during the quarter to
substantially fund Silvertip's 2024 exploration program.
Hedging Update
The Company did not execute any additional hedges during the first quarter. An
overview of remaining hedges in place is outlined below.
4
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2Q 2024
Gold Ounces Hedged 49,950
Avg. Forward Price ($/oz) $2,100
Silver Ounces Hedged 1,800,000
Avg. Forward Price ($/oz) $26.00
Rochester LCM Adjustment
Coeur reports the carrying value of metal and leach pad inventory at the lower
of cost or net realizable value, with cost being determined using a weighted
average cost method. Decreases in the market price of gold and silver can
affect the value of metal inventory, stockpiles and leach pads, and it may be
necessary to record a write-down to the net realizable value, as well as
impact carrying value of long-lived assets. At the end of the first quarter,
the cost of ore on leach pads at Rochester exceeded its net realizable value,
which resulted in a lower of cost or market ("LCM") adjustment of $4 million
(approximately $3 million in costs applicable to sales
2
and $1 million of amortization).
Additionally, the Company completed a review of the estimated recoverable
ounces of gold and silver on its leach pads and determined that as a result of
longer expected leach time and favorable recoveries relative to previous
estimates that the estimated recoverable gold and silver on the Rochester
legacy (Stages II, III and IV) leach pads supported an upward revision.
5
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Operations
First quarter 2024 highlights for each of the Company's operations are
provided below.
Palmarejo, Mexico
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
millions,
except
per
ounce
amounts)
Tons 500,747 500,509 501,722 472,622 533,606
milled
Average 0.070 0.060 0.055 0.056 0.052
gold
grade
(oz/t)
Average 4.34 4.08 3.67 4.10 4.02
silver
grade
(oz/t)
Average 95.2 % 89.4 % 97.6 % 87.4 % 90.1 %
recovery
rate
-
Au
Average 83.7 % 79.4 % 86.9 % 83.5 % 81.7 %
recovery
rate
-
Ag
Gold 33,160 25,401 26,870 23,216 25,118
ounces
produced
Silver 1,818 1,622 1,601 1,617 1,752
ounces
produced
(000's)
Gold 33,462 24,848 26,018 22,207 25,970
ounces
sold
Silver 1,796 1,644 1,534 1,561 1,795
ounces
sold
(000's)
Average $ 1,611 $ 1,615 $ 1,499 $ 1,589 $ 1,564
realized
price
per
gold
ounce
Average $ 23.64 $ 24.78 $ 24.96 $ 23.98 $ 23.23
realized
price
per
silver
ounce
Metal $ 96.4 $ 80.9 $ 77.3 $ 72.7 $ 82.3
sales
Costs $ 54.3 $ 50.3 $ 48.1 $ 46.6 $ 49.3
applicable
to
sales
2
Adjusted $ 901 $ 1,010 $ 917 $ 1,023 $ 926
CAS
per
AuOz
1
Adjusted $ 13.18 $ 15.26 $ 15.56 $ 15.16 $ 13.94
CAS
per
AgOz
1
Exploration $ 2.5 $ 2.7 $ 2.2 $ 1.6 $ 1.3
expense
Cash $ 25.6 $ 24.1 $ 22.6 $ 18.6 $ 11.5
flow
from
operating
activities
Sustaining $ 4.7 $ 6.9 $ 8.4 $ 10.7 $ 8.6
capital
expenditures
(excludes
capital
lease
payments)
Development $ 2.1 $ 2.0 $ 2.4 $ 1.2 $ 1.6
capital
expenditures
Total $ 6.8 $ 8.9 $ 10.8 $ 11.9 $ 10.2
capital
expenditures
Free $ 18.8 $ 15.2 $ 11.8 $ 6.7 $ 1.3
cash
flow
1
Operational
.
First quarter gold and silver production totaled 33,160 and 1.8 million
ounces, respectively, compared to 25,401 and 1.6 million ounces in the prior
period and 25,118 and 1.8 million ounces in the first quarter of 2023
.
Production during the quarter benefited from higher average grades as well as
increased average gold and silver recoveries
Financial
.
Adjusted CAS
1
for gold and silver on a co-product basis decreased 11% and 14% quarter-over-qua
rter to $901 and $13.18 per ounce, respectively, driven by higher metal sales
.
Capital expenditures decreased 24% quarter-over-quarter to $7 million,
reflecting lower underground mine development
.
Free cash flow
1
in the first quarter totaled $19 million compared to $15 million in the prior
period
Exploration
.
Exploration investment for the first quarter decreased by 7% to approximately
$3 million (substantially all expensed)
.
Up to three rigs were active during the quarter mainly focused on the Zapata -
Guadalupe corridor and on the Barranca Blanca target
6
-------------------------------------------------------------------------------
.
At the Zapata - Guadalupe target, drilling confirmed the presence of
anticipated mineralized structures and revealed a newly discovered vein with
promising indications of additional mineralization. This area is evolving into
a significant prospect and serves as a potential area for future resource
expansion
.
Exploration efforts continue immediately east of the current operation and
outside the gold stream area. Within this zone, numerous new veins have been
observed, particularly to the southeast of existing operations, which are
believed to run parallel to the primary vein systems currently being mined
nearby. For example, initial scout drilling at Barranca Blanca has
successfully established the existence of a mineralizing system strongly
warranting further investigation
.
Additionally, geological mapping in the Guazapares area to the east of
Palmarejo has pinpointed multiple new veins displaying surface alteration,
shearing, and mineralization, signaling promising prospects for future
exploration
Other
.
Approximately 35% of Palmarejo's gold sales in the first quarter were sold
under its gold stream agreement at a price of $800 per ounce, totaling 11,690
ounces. The Company anticipates approximately 30% - 40% of Palmarejo's gold
sales for 2024 will be sold under the gold stream agreement
Guidance
.
Full-year 2024 production is expected to be 95,000 - 103,000 ounces of gold
and 5.9 - 6.7 million ounces of silver
.
CAS
1
in 2024 are expected to be $1,075 - $1,275 per gold ounce and $16.50 - $17.50
per silver ounce
.
Capital expenditures are expected to be $32 - $42 million, consisting
primarily of sustaining capital and underground development
Rochester, Nevada
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
millions,
except
per
ounce
amounts)
Ore 3,135,571 2,754,058 3,487,173 2,690,840 2,456,586
tons
placed
Average 0.52 0.44 0.50 0.42 0.45
silver
grade
(oz/t)
Average 0.002 0.003 0.003 0.003 0.003
gold
grade
(oz/t)
Silver 699 1,340 608 683 761
ounces
produced
(000's)
Gold 5,755 19,847 4,459 6,314 8,155
ounces
produced
Silver 735 1,269 606 695 770
ounces
sold
(000's)
Gold 6,185 19,175 4,432 6,493 8,349
ounces
sold
Average $ 23.32 $ 24.59 $ 24.63 $ 23.70 $ 23.19
realized
price
per
silver
ounce
Average $ 2,050 $ 1,991 $ 1,967 $ 1,946 $ 1,922
realized
price
per
gold
ounce
Metal $ 29.8 $ 69.4 $ 23.6 $ 29.1 $ 33.9
sales
Costs $ 27.0 $ 71.8 $ 30.5 $ 26.1 $ 42.9
applicable
to
sales
2
Adjusted $ 18.17 $ 19.33 $ 23.64 $ 20.39 $ 20.24
CAS
per
AgOz
1
Adjusted $ 1,630 $ 1,564 $ 1,899 $ 1,646 $ 1,655
CAS
per
AuOz
1
Prepayment, $ - $ - $ 7.5 $ 10.0 $ -
working
capital
cash
flow
Exploration $ 0.4 $ 0.2 $ 0.3 $ 0.3 $ 0.4
expense
Cash $ (18.7) $ 11.6 $ (17.3) $ (3.8) $ (13.5)
flow
from
operating
activities
Sustaining $ 15.4 $ 13.8 $ 7.7 $ 5.1 $ 4.3
capital
expenditures
(excludes
capital
lease
payments)
Development $ 5.8 $ 51.7 $ 76.7 $ 56.4 $ 47.7
capital
expenditures
Total $ 21.2 $ 65.5 $ 84.4 $ 61.5 $ 52.0
capital
expenditures
Free $ (39.9) $ (53.9) $ (101.7) $ (65.3) $ (65.5)
cash
flow
1
Operational
7
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.
Silver and gold production in the first quarter totaled 699,190 and 5,755
ounces, respectively, compared to 1.3 million and 19,847 ounces in the prior
period and 761,346 and 8,155 ounces in the first quarter of 2023
.
Lower planned production during the quarter was primarily driven by a lack of
fresh ore placed on the new Stage VI leach pad for approximately ninety days
during the commissioning and ramp-up of the new three stage crusher after
initial ounces from ore stacked on the new leach pad throughout 2023 were
recovered in the prior period
.
The Company successfully completed the commissioning of all three stages of
the crushing circuit and the truck load-out facility during the first quarter.
Additionally, on March 31, 2024, the operation achieved commercial production
and has routinely exceeded 70,000 tons per day since commissioning was
completed. Ramp-up to sustained nameplate capacity of 88,000 tons per day
remains on schedule to be completed by the end of the second quarter
.
The Company completed a review of the estimated recoverable ounces of gold and
silver on its leach pads during the first quarter and determined that as a
result of longer expected leach time and favorable recoveries relative to
previous estimates that the estimated recoverable gold and silver on the
Rochester legacy (Stages II, III and IV) leach pads supported an upward
revision
Financial
.
First quarter adjusted CAS
1
figures in the table above and highlighted below exclude the impact of an LCM
adjustment totaling approximately $3 million related to the net realizable
value of metal and leach pad inventory due to higher operating costs exceeding
the lower market value of ounces under leach at Rochester
.
First quarter adjusted CAS
1
for silver and gold on a co-product basis continued to decline compared to
recent quarters, totaling $18.17 and $1,630 per ounce, respectively, mainly
driven by the favorable impact of an increase in estimated recoverable ounces
on legacy leach pads
.
Capital expenditures decreased 68% quarter-over-quarter to $21 million,
reflecting decreased spending with the completion of the Rochester expansion
project
.
Free cash flow
1
in the first quarter totaled $(40) million compared to $(54) million in the
prior period
Exploration
.
Exploration investment decreased 17% quarter-over-quarter to approximately $1
million ($0.4 million expensed and $0.1 million capitalized)
.
First quarter activities included preparation for 2024 drill programs,
geologic logging, interpretation and geological modeling, with a new geology
model for Nevada Packard almost complete. This work will help refine
understanding on the controls to mineralization at this deposit and help
finalize 2024 drill planning
.
The primary focus for drilling over the balance of 2024 is assessing the
potential for higher grades on structures identified in the newly-developed
Rochester East and Nevada Packard geology models. Near-term exploration
objectives aim to augment the grade profile of the current 16-year
reserves-only mine life with the goal of bolstering cash flow
Guidance
.
Full-year 2024 production is expected to be 4.8 - 6.6 million ounces of silver
and 37,000 - 50,000 ounces of gold. Production in 2024 is expected to increase
after a slower first quarter due to commissioning and ramp-up in the first
half of 2024
8
-------------------------------------------------------------------------------
.
With the commissioning and ramp-up of the Rochester expansion taking place
during the first half of 2024, the Company has provided CAS guidance for the
second half of 2024, which are expected to be $14.00 - $16.00 per silver ounce
and $1,200 - $1,400 per gold ounce
.
Capital expenditures are expected to be $50 - $70 million, which reflects
fleet enhancements as part of the ramp-up of the newly completed Rochester
expansion as well as sustaining capital
Kensington, Alaska
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
millions,
except
per
ounce
amounts)
Tons 167,439 177,382 167,950 152,907 153,337
milled
Average 0.14 0.16 0.16 0.09 0.15
gold
grade
(oz/t)
Average 90.8 % 92.3 % 92.6 % 90.9 % 91.2 %
recovery
rate
Gold 21,434 26,686 24,614 13,193 20,296
ounces
produced
Gold 21,183 25,980 24,516 13,273 20,902
ounces
sold
Average $ 2,105 $ 2,016 $ 1,956 $ 1,991 $ 1,983
realized
price
per
gold
ounce,
gross
Treatment $52 $58 $60 $142 $63
and
refining
charges
per
gold
ounce
Average $ 2,053 $ 1,958 $ 1,896 $ 1,849 $ 1,920
realized
price
per
gold
ounce,
net
Metal $ 43.5 $ 51.2 $ 46.5 $ 24.6 $ 40.2
sales
Costs $ 39.3 $ 37.9 $ 38.3 $ 39.1 $ 37.4
applicable
to
sales
2
Adjusted $ 1,840 $ 1,441 $ 1,543 $ 2,927 $ 1,775
CAS
per
AuOz
1
Prepayment, $ - $ 10.7 $ (10.7) $ 9.9 $ (9.9)
working
capital
cash
flow
Exploration $ 1.5 $ 1.7 $ 2.9 $ 2.3 $ 1.0
expense
Cash $ 1.5 $ 16.9 $ (4.4) $ (3.7) $ (4.8)
flow
from
operating
activities
Sustaining $ 13.3 $ 15.1 $ 15.8 $ 11.7 $ 10.7
capital
expenditures
(excludes
capital
lease
payments)
Development $ - $ - $ - $ - $ -
capital
expenditures
Total $ 13.3 $ 15.1 $ 15.8 $ 11.7 $ 10.7
capital
expenditures
Free $ (11.8) $ 1.8 $ (20.2) $ (15.4) $ (15.5)
cash
flow
1
Operational
.
Gold production in the first quarter totaled 21,434 ounces compared to 26,686
ounces in the prior period and 20,296 ounces in the first quarter of 2023
.
Lower production during the quarter was driven by mill down time impacting
tons milled as well as lower average grade due to mine sequencing
Financial
.
First quarter adjusted CAS
1
totaled $1,840 per ounce compared to $1,441 per ounce in the prior period,
reflecting decreased metal sales
.
Capital expenditures decreased 12% quarter-over-quarter to $13 million.
Capital expenditures during the quarter continued to focus on capital
development to support the ongoing multi-year exploration program aimed at
extending mine life
.
Free cash flow
1
in the first quarter and full-year totaled $(12) million compared to $2
million in the prior period
Exploration
.
Exploration investment in the quarter totaled approximately $4 million ($2
million expensed and $3 million capitalized), compared to $4 million ($2
million expensed and $2 million capitalized) in the prior period
9
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.
Up to four rigs were active at Kensington, with drilling focused on both
infill as well as extending the current resource boundaries. Notably, the
multiple parallel veins at Kensington Zone 30 are continuing to show
continuity with new, sub-parallel zones identified during the first quarter,
illustrating the potential for additional work fronts and optionality in the
mine plan
.
Exploration at the recently identified Zone 50 continued to delineate
mineralization along both strike and depth extensions, underscoring the
potential for substantial resource and reserve expansion in the very near term
.
Expansion and infill drilling activities at Elmira are ongoing, with
consistent intersection of broad zones of mineralization, especially notable
in the upper sections of the deposit. While many assay results are pending,
visual confirmations of mineralization support confidence that inferred
material in this area can be upgraded to reserves within the current year
.
The recently concluded district-scale structural study aims to enhance
resource modeling and refine future exploration targeting
.
Overall drilling at Kensington continues to demonstrate meaningful progress
toward building a reserve base to support mine life for at least the next five
years
Guidance
.
Full-year 2024 production is expected to be 92,000 - 106,000 gold ounces
.
CAS
1
in 2024 are expected to be $1,525 - $1,725 per gold ounce
.
Capital expenditures are expected to be $44 - $56 million, of which
approximately $23 - $29 million and $5 - $10 million is related to underground
development and infill drilling, respectively, as part of the multi-year
exploration program
Wharf, South Dakota
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
millions,
except
per
ounce
amounts)
Ore 1,251,955 1,290,562 1,254,267 1,041,846 1,156,794
tons
placed
Average 0.021 0.027 0.023 0.022 0.032
gold
grade
(oz/t)
Gold 20,395 29,675 22,674 25,683 15,470
ounces
produced
Silver 67 90 69 88 21
ounces
produced
(000's)
Gold 20,586 29,537 23,049 25,117 15,645
ounces
sold
Silver 69 86 74 82 24
ounces
sold
(000's)
Average $2,026 $1,982 $1,966 $1,946 $1,938
realized
price
per
gold
ounce
Metal $ 43.3 $ 60.7 $ 47.1 $ 50.8 $ 30.9
sales
Costs $ 25.4 $ 32.4 $ 31.0 $ 27.8 $ 23.5
applicable
to
sales
2
Adjusted $ 1,165 $ 997 $ 1,267 $ 1,035 $ 1,466
CAS
per
AuOz
1
Prepayment, $ - $ - $ 2.5 $ 10.0 $ -
working
capital
cash
flow
Exploration $ 0.1 $ - $ - $ - $ -
expense
Cash $ 11.1 $ 28.9 $ 19.5 $ 33.8 $ 1.9
flow
from
operating
activities
Sustaining $ 0.3 $ 1.3 $ 0.6 $ 0.1 $ -
capital
expenditures
(excludes
capital
lease
payments)
Development $ - $ 0.2 $ 0.1 $ 0.1 $ 0.1
capital
expenditures
Total $ 0.3 $ 1.5 $ 0.7 $ 0.2 $ 0.1
capital
expenditures
Free $ 10.8 $ 27.4 $ 18.8 $ 33.6 $ 1.8
cash
flow
1
Operational
.
Gold production in the first quarter decreased 31% quarter-over-quarter to
20,395 ounces, largely due to timing of ounces placed on the leach pads.
Year-over-year production increased 32%
10
-------------------------------------------------------------------------------
Financial
.
Adjusted CAS
1
on a by-product basis increased 17% quarter-over-quarter to $1,165 per ounce,
largely driven by lower metal sales
.
Capital expenditures decreased slightly quarter-over-quarter to less than $1
million
.
Free cash flow
1
in the first quarter totaled $11 million compared to $27 million in the prior
period, reflecting lower metal sales
Exploration
.
Exploration investment remained flat quarter-over-quarter
.
Preparations for the 2024 drilling program were undertaken during the quarter
with the program focusing on increasing reserves though expansion and infill
drilling at the Juno deposit. Historically, exploration at Wharf has shown a
high return on investment
Guidance
.
Full-year 2024 production is expected to be 86,000 - 96,000 gold ounces
.
CAS
1
in 2024 are expected to be $1,100 - $1,200 per gold ounce
.
Capital expenditures are expected to be $5 - $7 million
11
-------------------------------------------------------------------------------
Exploration
Coeur had up to seven active rigs across all sites during the first quarter,
for a total investment of approximately $14 million ($11 million expensed and
$3 million capitalized), compared to roughly $14 million ($11 million expensed
and $3 million capitalized) in the prior period.
Exploration investment at the high-grade Silvertip polymetallic exploration
project in British Columbia, Canada totaled approximately $5 million in the
first quarter, compared to $6 million in the prior period.
Following an extensive technical assessment conducted at the start of the
first quarter, the geological model has been refined, with considerable effort
dedicated to strategizing for the 2024 exploration campaign. This year's
programs at Silvertip will entail a reduction in underground drilling compared
to prior years, with the upcoming summer surface programs anticipated to be
the most extensive ever undertaken by Coeur.
The underground program is expected to continue systematically tracing
mineralization in the Southern Silver Zone and Saddle Zone to the southeast
and south, respectively. The surface programs will transition to a
multi-pronged approach encompassing larger step outs from known mineralization
and district-scale work aimed at identifying additional chimney structures
hosting mineralization similar to the Southern Silver Zone. Ultimately, the
goal is to identify multiple targets that could lead to resource growth over
the next few years to allow a restart decision on this world-class high grade
deposit.
The Company expects to invest $11 - $14 million in exploration in 2024 at
Silvertip, which excludes $15 - $20 million related to underground mine
development and site support costs.
Company-wide, exploration investment in 2024 is projected to comprise $40 -
$50 million for scout and expansion drilling (classified as exploration
expense) and $7 - $13 million on infill drilling (capitalized exploration).
The key priorities this year include: building reserves and extending the life
of mine at Kensington; investigating higher grade structures at Rochester;
initiating development of a significant pipeline of inferred resources at
Palmarejo to potentially facilitate rapid reserve growth over the coming
years; augmenting mineral reserves at Wharf; and continuing to increase the
mineral resource at Silvertip.
12
-------------------------------------------------------------------------------
2024 Guidance
Gold and silver production is expected to increase compared to 2023, driven by
the commissioning and ramp-up of the Rochester expansion. Overall cost
guidance has increased compared to 2023 primarily driven by expected continued
inflationary pressures on operating costs.
With the ramp-up of the new Merrill-Crowe facility and three-stage crusher
corridor at Rochester expected to be completed during the first half of 2024,
the Company has elected to defer providing cost guidance at Rochester for that
period. The below cost guidance for Rochester reflects the second half of 2024.
Additionally, the below exploration expense guidance excludes $15 - $20
million of underground mine development and support costs associated with
Silvertip.
2024 Production Guidance
Gold Silver
(oz) (K oz)
Palmarejo 95,000 - 103,000 5,900 - 6,700
Rochester 37,000 - 50,000 4,800 - 6,600
Kensington 92,000 - 106,000 -
Wharf 86,000 - 96,000 -
Total 310,000 - 355,000 10,700 - 13,300
2024 Costs Applicable to Sales Guidance
Gold Silver
($/oz) ($/oz)
Palmarejo (co-product) $1,075 - $1,275 $16.50 - $17.50
Second Half 2024 Rochester (co-product) $1,200 - $1,400 $14.00 - $16.00
Kensington $1,525 - $1,725 -
Wharf (by-product) $1,100 - $1,200 -
2024 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures, Sustaining $116 - $158
Capital Expenditures, Development $19 - $26
Exploration, Expensed $40 - $50
Exploration, Capitalized $7 - $13
General & Administrative Expenses $36 - $40
Note: The Company's guidance figures assume estimated prices of $2,000/oz gold
and $23.75/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.
13
-------------------------------------------------------------------------------
Financial Results and Conference Call
Coeur will host a conference call to discuss its first quarter 2024 financial
results on May 2, 2024 at 11:00 a.m. Eastern Time.
Dial-In Numbers: (855) 560-2581 (U.S.)
(855) 669-9657 (Canada)
(412) 542-4166 (International)
Conference ID: Coeur Mining
Hosting the call will be Mitchell J. Krebs, President and Chief Executive
Officer of Coeur, who will be joined by Thomas S. Whelan, Senior Vice
President and Chief Financial Officer, Michael "Mick" Routledge, Senior Vice
President and Chief Operating Officer, Aoife McGrath, Senior Vice President of
Exploration, and other members of management. A replay of the call will be
available through May 9, 2024.
Replay numbers: (877) 344-7529 (U.S.)
(855) 669-9658 (Canada)
(412) 317-0088 (International)
Conference ID: 612 39 52
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals
producer with four wholly-owned operations: the Palmarejo gold-silver complex
in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine
in Alaska and the Wharf gold mine in South Dakota. In addition, the Company
wholly-owns the Silvertip polymetallic exploration project in British Columbia.
Cautionary Statements
This news release contains forward-looking statements within the meaning of
securities legislation in the United States and Canada, including statements
regarding cash flow, production growth, costs, capital expenditures,
exploration and development efforts and plans and potential impacts on
reserves and resources, mine lives and expected extensions, the gold stream
agreement at Palmarejo, expectations, plans, costs and timing regarding the
Rochester expansion project including anticipated throughput and timeline for
ramp-up, hedging strategies, anticipated production, costs and expenses and
operations at Palmarejo, Rochester, Wharf and Kensington, and expected
progress on ESG priorities including achievement of the Company's greenhouse
gas emissions net intensity goal. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause
Coeur's actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, among others, the risk
that ramp-up of the Rochester expansion project takes longer than expected or
does not achieve planned performance, the risk that anticipated production,
cost and expense levels are not attained, the risks and hazards inherent in
the mining business (including risks inherent in developing and expanding
large-scale mining projects, environmental hazards, industrial accidents,
weather or geologically-related conditions), changes in the market prices of
gold and silver and a sustained lower price or higher treatment and refining
charge environment, the uncertainties inherent in Coeur's production,
exploration and development activities, including risks relating to permitting
and regulatory delays (including the impact of government shutdowns) and
mining law changes, ground conditions, grade and recovery variability, any
future labor disputes or work stoppages (involving the Company and its
subsidiaries or third parties), the risk of adverse outcomes in litigation,
the uncertainties inherent in the estimation of mineral reserves and
resources, impacts from Coeur's future acquisition of new mining properties or
businesses, the loss of access or insolvency of any third-party refiner or
smelter to whom Coeur markets its production, materials and equipment
availability, inflationary pressures, continued access to financing sources,
the effects of environmental and other governmental regulations and government
shut-downs, the risks inherent in the ownership or
14
-------------------------------------------------------------------------------
operation of or investment in mining properties or businesses in foreign
countries, Coeur's ability to raise additional financing necessary to conduct
its business, make payments or refinance its debt, as well as other
uncertainties and risk factors set out in filings made from time to time with
the United States Securities and Exchange Commission, and the Canadian
securities regulators, including, without limitation, Coeur's most recent
reports on Form 10-K and Form 10-Q. Actual results, developments and
timetables could vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements. Coeur
disclaims any intent or obligation to update publicly such forward-looking
statements, whether as a result of new information, future events or
otherwise. Additionally, Coeur undertakes no obligation to comment on
analyses, expectations or statements made by third parties in respect of
Coeur, its financial or operating results or its securities. This does not
constitute an offer of any securities for sale.
The scientific and technical information concerning our mineral projects in
this news release have been reviewed and approved by a "qualified person"
under Item 1300 of SEC Regulation S-K, namely our Senior Director, Technical
Services, Christopher Pascoe. For a description of the key assumptions,
parameters and methods used to estimate mineral reserves and mineral
resources, as well as data verification procedures and a general discussion of
the extent to which the estimates may be affected by any known environmental,
permitting, legal, title, taxation, sociopolitical, marketing or other
relevant factors, please review the Technical Report Summaries for each of the
Company's material properties which are available at www.sec.gov.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information determined under
United States generally accepted accounting principles (U.S. GAAP) with
certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA,
adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating
cash flow before changes in working capital and adjusted costs applicable to
sales per ounce (gold and silver) or pound (zinc or lead). We believe that
these adjusted measures provide meaningful information to assist management,
investors and analysts in understanding our financial results and assessing
our prospects for future performance. We believe these adjusted financial
measures are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to our core
operating results, and provide a better baseline for analyzing trends in our
underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA
margin, free cash flow, adjusted net income (loss) and adjusted costs
applicable to sales per ounce (gold and silver) and pound (zinc and lead) are
important measures in assessing the Company's overall financial performance.
For additional explanation regarding our use of non-U.S. GAAP financial
measures, please refer to our Form 10-K for the year ended December 31, 2023.
Notes
1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow,
adjusted net income (loss), operating cash flow before changes in working
capital and adjusted costs applicable to sales per ounce (gold and silver) are
non-GAAP measures. Please see tables in the Appendix for the reconciliation to
U.S. GAAP. Free cash flow is defined as cash flow from operating activities
less capital expenditures. Liquidity is defined as cash and cash equivalents
plus availability under the Company's RCF. Please see tables in Appendix for
the calculation of consolidated free cash flow and liquidity.
2. Excludes amortization.
3. Includes capital leases. Net of debt issuance costs and premium received.
4. As of March 31, 2024, Coeur had $30 million in outstanding letters of
credit and $225 million in outstanding borrowings under its RCF. Future
borrowing under the RCF may be subject to certain financial covenants.
Average Spot Prices
1Q 4Q 3Q 2Q 1Q
2024 2023 2023 2023 2023
Average $ 2,070 $ 1,971 $ 1,928 $ 1,976 $ 1,890
Gold
Spot
Price
Per
Ounce
Average $ 23.34 $ 23.20 $ 23.57 $ 24.13 $ 22.55
Silver
Spot
Price
Per
Ounce
Average $ 1.11 $ 1.13 $ 1.10 $ 1.15 $ 1.42
Zinc
Spot
Price
Per
Pound
Average $ 0.94 $ 0.96 $ 0.98 $ 0.96 $ 0.97
Lead
Spot
Price
Per
Pound
For Additional Information
Coeur Mining, Inc.
200 S. Wacker Drive, Suite 2100
Chicago, IL 60606
15
-------------------------------------------------------------------------------
Attention: Jeff Wilhoit, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com
Source: Coeur Mining
16
-------------------------------------------------------------------------------
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, 2024 December 31, 2023
ASSETS In thousands, except share data
CURRENT ASSETS
Cash and cash $ 67,489 $ 61,633
equivalents
Receivables 36,494 31,035
Inventory 78,230 76,661
Ore on leach pads 83,454 79,400
Prepaid expenses 18,943 18,526
and other
284,610 267,255
NON-CURRENT ASSETS
Property, plant and equipment 1,697,927 1,688,288
and mining properties, net
Ore on leach pads 43,073 25,987
Restricted assets 8,812 9,115
Receivables 23,140 23,140
Other 62,503 67,063
TOTAL ASSETS $ 2,120,065 $ 2,080,848
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts $ 120,137 $ 115,110
payable
Accrued liabilities 131,845 140,913
and other
Debt 23,242 22,636
Reclamation 10,954 10,954
286,178 289,613
NON-CURRENT LIABILITIES
Debt 562,310 522,674
Reclamation 206,035 203,059
Deferred tax 16,787 12,360
liabilities
Other long-term 30,626 29,239
liabilities
815,758 767,332
COMMITMENTS AND
CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $0.01 per share; authorized 600,000,000 shares, 398,583,321 3,986 3,863
issued and outstanding at March 31, 2024 and 386,282,957 at December 31, 2023
Additional 4,170,568 4,139,870
paid-in capital
Accumulated other (6,147) 1,331
comprehensive income (loss)
Accumulated (3,150,278) (3,121,161)
deficit
1,018,129 1,023,903
TOTAL LIABILITIES AND $ 2,120,065 $ 2,080,848
STOCKHOLDERS' EQUITY
17
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COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended March 31,
2024 2023
In thousands,
except share data
Revenue $ 213,060 $ 187,298
COSTS AND
EXPENSES
Costs applicable 145,997 153,056
to sales
(1)
Amortization 27,297 22,708
General and 14,404 12,083
administrative
Exploration 10,491 4,650
Pre-development, 18,228 10,890
reclamation, and other
Total costs 216,417 203,387
and expenses
OTHER INCOME
(EXPENSE), NET
Gain on debt 438 -
extinguishment
Fair value - 10,561
adjustments, net
Interest expense, net (12,947) (7,389)
of capitalized interest
Other, net 2,773 (961)
Total other income (9,736) 2,211
(expense), net
Income (loss) before (13,093) (13,878)
income and mining taxes
Income and mining tax (16,024) (10,708)
(expense) benefit
NET INCOME $ (29,117) $ (24,586)
(LOSS)
OTHER COMPREHENSIVE
INCOME (LOSS):
Change in fair value of derivative (7,625) (12,928)
contracts designated as cash flow hedges
Reclassification adjustments for 147 (4,134)
realized (gain) loss on cash flow hedges
Other comprehensive (7,478) (17,062)
income (loss)
COMPREHENSIVE $ (36,595) $ (41,648)
INCOME (LOSS)
NET INCOME
(LOSS) PER SHARE
Basic income
(loss) per share:
Basic $ (0.08) $ (0.08)
Diluted $ (0.08) $ (0.08)
(1)
Excludes amortization.
18
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COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended March 31,
2024 2023
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (29,117) $ (24,586)
Adjustments:
Amortization 27,297 22,708
Accretion 4,076 3,993
Deferred taxes 4,429 6,451
Gain on debt extinguishment (438) -
Fair value adjustments, net - (10,561)
Stock-based compensation 4,248 3,151
Loss on the sale of assets - (9)
Write-downs 3,235 13,113
Deferred revenue recognition (55,159) (10,115)
Other 10,822 2,078
Changes in operating assets and liabilities:
Receivables (5,316) 3,050
Prepaid expenses and other current assets (639) (496)
Inventory and ore on leach pads (19,694) (17,635)
Accounts payable and accrued liabilities 40,385 (26,145)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (15,871) (35,003)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (42,083) (74,048)
Proceeds from the sale of assets 24 -
Sale of investments - 39,775
Proceeds from notes receivable - 5,000
Other (67) (44)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (42,126) (29,317)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 22,823 98,429
Issuance of notes and bank borrowings, net of issuance costs 135,000 75,000
Payments on debt, finance leases, and associated costs (92,225) (101,897)
Other (1,779) (2,097)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 63,819 69,435
Effect of exchange rate changes on cash and cash equivalents 40 399
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 5,862 5,514
Cash, cash equivalents and restricted cash at beginning of period 63,378 63,169
Cash, cash equivalents and restricted cash at end of period $ 69,240 $ 68,683
19
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Adjusted EBITDA Reconciliation
(Dollars LTM 1Q 4Q 3Q 2Q 1Q
in 1Q 2024 2023 2023 2023 2023
thousands 2024
except
per
share
amounts)
Net $ (108,143) $ (29,117) $ (25,505) $ (21,109) $ (32,412) $ (24,586)
income
(loss)
Interest 34,657 12,947 7,396 7,402 6,912 7,389
expense,
net
of
capitalized
interest
Income 40,472 16,024 8,485 6,097 9,866 10,708
tax
provision
(benefit)
Amortization 104,411 27,297 34,635 22,884 19,595 22,708
EBITDA 71,397 27,151 25,011 15,274 3,961 16,219
Fair 7,177 - 1,245 2,010 3,922 (10,561)
value
adjustments,
net
Foreign (330) 365 353 (421) (627) 1,154
exchange
(gain)
loss
Asset 16,488 4,076 4,186 4,153 4,073 3,993
retirement
obligation
accretion
Inventory 33,189 4,188 18,464 8,934 1,603 14,187
adjustments
and
write-downs
(Gain) 28,724 3,536 12,547 19 12,622 9
loss
on
sale
of
assets
and
securities
RMC (1,516) - - - (1,516) -
bankruptcy
distribution
(Gain) (3,875) (438) 298 (774) (2,961) -
loss
on
debt
extinguishment
Other 10,260 5,461 2,188 1,453 1,158 126
adjustments
Adjusted $ 161,514 $ 44,339 $ 64,292 $ 30,648 $ 22,235 $ 25,127
EBITDA
Revenue $ 846,968 $ 213,060 $ 262,090 $ 194,583 $ 177,235 $ 187,298
Adjusted 19 % 21 % 25 % 16 % 13 % 13 %
EBITDA
Margin
Adjusted Net Income (Loss) Reconciliation
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2023 2023 2023 2023 2023
thousands
except
per
share
amounts)
Net $ (29,117) $ (25,505) $ (21,109) $ (32,412) $ (24,586)
income
(loss)
Fair - 1,245 2,010 3,922 (10,561)
value
adjustments,
net
Foreign 484 (156) 5 154 1,991
exchange
loss
(gain)
(Gain) 3,536 12,547 19 12,622 9
loss
on
sale
of
assets
and
securities
RMC - - - (1,516) -
bankruptcy
distribution
(Gain) (438) 298 (774) (2,961) -
loss
on
debt
extinguishment
Other 5,461 2,188 1,453 1,158 126
adjustments
Tax 1,053 3,165 (223) (1,120) (37)
effect
of
adjustments
Adjusted $ (19,021) $ (6,218) $ (18,619) $ (20,153) $ (33,058)
net
income
(loss)
Adjusted $ (0.05) $ (0.02) $ (0.05) $ (0.06) $ (0.11)
net
income
(loss)
per
share
-
Basic
Adjusted $ (0.05) $ (0.02) $ (0.05) $ (0.06) $ (0.11)
net
income
(loss)
per
share
-
Diluted
Consolidated Free Cash Flow Reconciliation
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
thousands)
Cash $ (15,871) $ 65,277 $ (2,383) $ 39,397 $ (35,003)
flow
from
operations
Capital 42,083 92,715 112,273 85,581 74,048
expenditures
Free $ (57,954) $ (27,438) $ (114,656) $ (46,184) $ (109,051)
cash
flow
20
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Consolidated Operating Cash Flow
Before Changes in Working Capital Reconciliation
(Dollars 1Q 4Q 3Q 2Q 1Q
in 2024 2023 2023 2023 2023
thousands)
Cash $ (15,871) $ 65,277 $ (2,383) $ 39,397 $ (35,003)
provided
by
(used
in)
operating
activities
Changes
in
operating
assets
and
liabilities:
Receivables 5,316 726 478 913 (3,050)
Prepaid 639 1,225 3,000 (4,260) 496
expenses
and
other
Inventories 19,694 (7,401) 18,620 18,738 17,635
Accounts (40,385) (14,490) (5,528) (61,708) 26,145
payable
and
accrued
liabilities
Operating $ (30,607) $ 45,337 $ 14,187 $ (6,920) $ 6,223
cash
flow
before
changes
in
working
capital
Reconciliation of Costs Applicable to Sales
for Three Months Ended March 31, 2024
In thousands (except metal sales, Palmarejo Rochester Kensington Wharf Silvertip Total
per ounce or per pound amounts)
Costs applicable to sales, $ 66,896 $ 33,632 $ 44,885 $ 26,808 $ 852 $ 173,073
including amortization (U.S. GAAP)
Amortization (12,602) (6,633) (5,596) (1,393) (852) (27,076)
Costs applicable $ 54,294 $ 26,999 $ 39,289 $ 25,415 $ - $ 145,997
to sales
Inventory (468) (3,555) (283) 198 - (4,108)
Adjustments
By-product - - (34) (1,633) - (1,667)
credit
Adjusted costs $ 53,826 $ 23,444 $ 38,972 $ 23,980 $ - $ 140,222
applicable to sales
Metal Sales
Gold 33,462 6,185 21,183 20,586 - 81,416
ounces
Silver 1,796,468 735,254 68,713 - 2,600,435
ounces
Zinc - -
pounds
Lead - -
pounds
Revenue
Split
Gold 56 % 43 % 100 % 100 %
Silver 44 % 57 % - %
Zinc - %
Lead - %
Adjusted costs
applicable to sales
Gold $ 901 $ 1,630 $ 1,840 $ 1,165 $ 1,267
($/oz)
Silver $ 13.18 $ 18.17 $ - $ 14.63
($/oz)
Zinc $ - $ -
($/lb)
Lead $ - $ -
($/lb)
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Reconciliation of Costs Applicable to Sales
for Three Months Ended December 31, 2023
In thousands (except metal sales, Palmarejo Rochester Kensington Wharf Silvertip Total
per ounce or per pound amounts)
Costs applicable to sales, $ 60,345 $ 85,155 $ 46,207 $ 34,150 $ 858 $ 226,715
including amortization (U.S. GAAP)
Amortization (9,949) (13,349) (8,366) (1,892) (858) (34,414)
Costs applicable $ 50,396 $ 71,806 $ 37,841 $ 32,258 $ - $ 192,301
to sales
Inventory (195) (17,295) (131) (677) - (18,298)
Adjustments
By-product - - (275) (2,146) - (2,421)
credit
Adjusted costs $ 50,201 $ 54,511 $ 37,435 $ 29,435 $ - $ 171,582
applicable to sales
Metal Sales
Gold 24,849 19,174 25,980 29,538 - 99,541
ounces
Silver 1,644,592 1,269,236 - 86,510 - 3,000,338
ounces
Zinc - - - - - -
pounds
Lead - - - - - -
pounds
Revenue
Split
Gold 50 % 55 % 100 % 100 %
Silver 50 % 45 % - %
Zinc - %
Lead - %
Adjusted costs
applicable to sales
Gold $ 1,010 $ 1,564 $ 1,441 $ 997 $ 1,225
($/oz)
Silver $ 15.26 $ 19.33 $ - $ 17.03
($/oz)
Zinc $ - $ -
($/lb)
Lead $ - $ -
($/lb)
Reconciliation of Costs Applicable to Sales
for Three Months Ended September 30, 2023
In thousands (except metal sales, Palmarejo Rochester Kensington Wharf Silvertip Total
per ounce or per pound amounts)
Costs applicable to sales, $ 57,083 $ 34,708 $ 45,180 $ 32,614 $ 919 $ 170,504
including amortization (U.S. GAAP)
Amortization (9,024) (4,176) (6,894) (1,588) (919) (22,601)
Costs applicable $ 48,059 $ 30,532 $ 38,286 $ 31,026 $ - $ 147,903
to sales
Inventory (328) (7,788) (411) (16) - (8,543)
Adjustments
By-product - - (57) (1,802) - (1,859)
credit
Adjusted costs $ 47,731 $ 22,744 $ 37,818 $ 29,208 $ - $ 137,501
applicable to sales
Metal Sales
Gold 26,018 4,432 24,516 23,049 - 78,015
ounces
Silver 1,533,975 606,083 - 73,677 - 2,213,735
ounces
Zinc - -
pounds
Lead - -
pounds
Revenue
Split
Gold 50 % 37 % 100 % 100 %
Silver 50 % 63 % - %
Zinc - %
Lead - %
Adjusted costs
applicable to sales
Gold $ 917 $ 1,899 $ 1,543 $ 1,267 $ 1,273
($/oz)
Silver $ 15.56 $ 23.64 $ - $ 17.85
($/oz)
Zinc $ - $ -
($/lb)
Lead $ - $ -
($/lb)
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Reconciliation of Costs Applicable to Sales
for Three Months Ended June 30, 2023
In thousands (except metal sales, Palmarejo Rochester Kensington Wharf Silvertip Total
per ounce or per pound amounts)
Costs applicable to sales, $ 54,608 $ 29,717 $ 43,950 $ 29,634 $ 1,021 $ 158,930
including amortization (U.S. GAAP)
Amortization (8,017) (3,649) (4,801) (1,805) (1,021) (19,293)
Costs applicable $ 46,591 $ 26,068 $ 39,149 $ 27,829 $ - $ 139,637
to sales
Inventory (209) (1,215) (239) 77 - (1,586)
Adjustments
By-product - - (63) (1,922) - (1,985)
credit
Adjusted costs $ 46,382 $ 24,853 $ 38,847 $ 25,984 $ - $ 136,066
applicable to sales
Metal Sales
Gold 22,207 6,493 13,273 25,117 - 67,090
ounces
Silver 1,560,743 694,657 - 82,013 - 2,337,413
ounces
Zinc - -
pounds
Lead - -
pounds
Revenue
Split
Gold 49 % 43 % 100 % 100 %
Silver 51 % 57 % - %
Zinc - %
Lead - %
Adjusted costs
applicable to sales
Gold $ 1,023 $ 1,646 $ 2,927 $ 1,035 $ 1,464
($/oz)
Silver $ 15.16 $ 20.39 $ - $ 16.77
($/oz)
Zinc $ - $ -
($/lb)
Lead $ - $ -
($/lb)
Reconciliation of Costs Applicable to Sales
for Three Months Ended March 31, 2023
In thousands (except metal sales, Palmarejo Rochester Kensington Wharf Silvertip Total
per ounce or per pound amounts)
Costs applicable to sales, $ 57,984 $ 48,083 $ 43,226 $ 24,953 $ 1,221 $ 175,467
including amortization (U.S. GAAP)
Amortization (8,719) (5,218) (5,844) (1,409) (1,221) (22,411)
Costs applicable $ 49,265 $ 42,865 $ 37,382 $ 23,544 $ - $ 153,056
to sales
Inventory (201) (13,474) (207) (38) - (13,920)
Adjustments
By-product - - (74) (570) (644)
credit
Adjusted costs $ 49,064 $ 29,391 $ 37,101 $ 22,936 $ - $ 138,492
applicable to sales
Metal Sales
Gold 25,970 8,349 20,902 15,645 - 70,866
ounces
Silver 1,795,159 769,804 - 23,956 - 2,588,919
ounces
Zinc - -
pounds
Lead - -
pounds
Revenue
Split
Gold 49 % 47 % 100 % 100 %
Silver 51 % 53 % - %
Zinc - %
Lead - %
Adjusted costs
applicable to sales
Gold $ 926 $ 1,655 $ 1,775 $ 1,466 $ 1,381
($/oz)
Silver $ 13.94 $ 20.24 $ - $ 15.83
($/oz)
Zinc $ - $ -
($/lb)
Lead $ - $ -
($/lb)
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Reconciliation of Costs Applicable to Sales for 2024 Guidance
In thousands (except metal sales, Palmarejo Rochester Kensington Wharf
per ounce or per pound amounts) (1)
Costs applicable to sales, $ 258,870 $ 129,322 $ 199,980 $ 108,330
including amortization (U.S. GAAP)
Amortization (37,130) (36,990) (33,530) (6,330)
Costs applicable $ 221,740 $ 92,332 $ 166,450 $ 102,000
to sales
By-product - - - (2,550)
credit
Adjusted costs $ 221,740 $ 92,332 $ 166,450 $ 99,450
applicable to sales
Metal Sales
Gold 100,350 28,130 103,790 90,000
ounces
Silver 6,516,830 3,927,890 105,920
ounces
Revenue
Split
Gold 51% 38% 100% 100%
Silver 49% 62%
Adjusted costs
applicable to sales
Gold ($/oz) $1,075 - $1,275 $1,200 - $1,400 $1,525 - $1,725 $1,100 - $1,200
Silver $16.50 - $17.50 $14.00 - $16.00
($/oz)
1.
Cost guidance for Rochester reflects the second half of 2024.
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