Coeur Mining(CDE) - 2025 Q2 - Quarterly Results

Key Highlights & Financial Summary Coeur Mining reported record Q2 2025 financial results, driven by significant production increases and higher metal prices, achieving record revenue, operating cash flow, and net income, which enabled debt repayment and a share repurchase program Q2 2025 Financial Performance Highlights | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | | :--- | :--- | :--- | :--- | | Revenue | $480.7M | $360.1M | $222.0M | | Net Income | $70.7M | $33.4M | $1.4M | | Adjusted EBITDA | $243.5M | $148.9M | $52.4M | | Operating Cash Flow | $207.0M | $67.6M | $15.2M | | Free Cash Flow | $146.2M | $17.6M | ($36.2M) | - Production saw substantial year-over-year growth, with silver production increasing by 79% and gold production by 38%[3] - Quarter-over-quarter, silver and gold production rose by 27% and 25%, respectively[3] - The company strengthened its balance sheet by repaying the remaining $110 million on its revolving credit facility (RCF), reducing its net leverage ratio to 0.4x[3] - A $75 million share repurchase program was authorized, with 216,500 shares repurchased during the quarter at an average price of $9.24 per share[3] - Full-year 2025 guidance was reaffirmed for production of 380,000 - 440,000 ounces of gold and 16.7 - 20.3 million ounces of silver[3] Operations Review All five North American operations achieved strong production increases and positive free cash flow in Q2, with significant contributions from the newly acquired Las Chispas and successful ramp-up at Rochester, alongside solid performance from Palmarejo, Kensington, and Wharf Las Chispas, Mexico The Las Chispas mine, in its first full quarter, produced 16,271 ounces of gold and 1.5 million ounces of silver, generating $49.4 million in free cash flow, with exploration focused on expanding high-grade discoveries Las Chispas Q2 2025 Performance | Metric | Q2 2025 | | :--- | :--- | | Gold Production (oz) | 16,271 | | Silver Production (oz) | 1,488,672 | | Adjusted CAS per AuOz ($/oz) | $894 | | Adjusted CAS per AgOz ($/oz) | $8.94 | | Free Cash Flow ($M) | $49.4M | - Exploration investment totaled approximately $3 million, with up to eight rigs active[18] - The high-grade Augusta discovery has been traced over 320 meters along strike, consistently yielding high-grade intercepts[18] Palmarejo, Mexico The Palmarejo complex produced 27,272 ounces of gold and 1.7 million ounces of silver, with free cash flow surging to $42.3 million, driven by higher grades and throughput, while exploration focuses on expanding the Hidalgo Corridor Palmarejo Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gold Production (oz) | 27,272 | 23,032 | | Silver Production (K oz) | 1,741 | 1,680 | | Adjusted CAS per AuOz ($/oz) | $888 | $882 | | Adjusted CAS per AgOz ($/oz) | $14.39 | $14.37 | | Free Cash Flow ($M) | $42.3M | $2.8M | - Exploration investment was approximately $4 million[27] - Drilling at the Hidalgo Corridor continues to deliver excellent results, extending the strike length by an additional 350 meters year-to-date[27] Rochester, Nevada The Rochester expansion project showed continued progress with crushed ore tons increasing 24% to 6.7 million tons, driving higher production of 1.5 million silver ounces and 14,302 gold ounces, and returning to positive free cash flow of $15.1 million Rochester Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Silver Production (K oz) | 1,456 | 1,284 | | Gold Production (oz) | 14,302 | 13,353 | | Adjusted CAS per AgOz ($/oz) | $16.83 | $18.41 | | Adjusted CAS per AuOz ($/oz) | $1,675 | $1,670 | | Free Cash Flow ($M) | $15.1M | ($21.9M) | - The crushing circuit processed 6.7 million tons, a 24% increase from the 5.5 million tons in the previous quarter, reflecting steady increases in circuit availability[33] Kensington, Alaska Kensington's gold production increased to 26,555 ounces, with adjusted CAS decreasing to $1,713 per ounce, generating $19.7 million in free cash flow, marking the end of a multi-year underground development program Kensington Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gold Production (oz) | 26,555 | 22,715 | | Adjusted CAS per AuOz ($/oz) | $1,713 | $1,882 | | Free Cash Flow ($M) | $19.7M | ($9.6M) | - Exploration drilling is progressing well, with a newly-discovered Elmira Hanging Wall Zone expected to be included in year-end resource estimates for the first time[39] Wharf, South Dakota The Wharf mine increased gold production by 18% to 24,087 ounces, leading to a 7% decrease in adjusted CAS to $1,175 per ounce and a substantial increase in free cash flow to $37.8 million Wharf Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gold Production (oz) | 24,087 | 20,491 | | Adjusted CAS per AuOz ($/oz) | $1,175 | $1,260 | | Free Cash Flow ($M) | $37.8M | $8.3M | - Exploration investment totaled $4 million[49] - Expansion and infill drilling programs at Wedge and North Foley were completed and are expected to contribute meaningfully to year-end reserve and resource estimates[49] Exploration The company invested approximately $30 million in Q2 exploration, with total 2025 investment expected between $77 million and $93 million, prioritizing resource expansion at Palmarejo, higher-grade zone definition at Rochester, and geological knowledge building at Las Chispas - Total Q2 exploration investment was approximately $30 million, consisting of $23 million expensed and $7 million capitalized[52] - Top exploration priorities for 2025 are: (1) building the inferred pipeline at Palmarejo, (2) outlining higher-grade structures at Rochester, (3) maintaining a 5-year reserve life at Kensington, (4) completing expansion programs at Wharf, (5) growing the resource base at Silvertip, and (6) building knowledge of Las Chispas[51] - At the Silvertip project, exploration investment was $9 million in Q2, with drilling commencing in May on three targets: Southern Silver, Discovery, and Saddle Zones[53] 2025 Guidance Coeur reaffirmed its full-year 2025 production and CAS guidance while updating sustaining capital expenditures and G&A expenses to reflect a $10 million cash funding decision and non-cash incentive compensation due to strong share price performance 2025 Production Guidance (Ounces) | Mine | Gold (oz) | Silver (K oz) | | :--- | :--- | :--- | | Las Chispas | 42,500 - 52,500 | 4,250 - 5,250 | | Palmarejo | 95,000 - 105,000 | 5,400 - 6,500 | | Rochester | 60,000 - 75,000 | 7,000 - 8,300 | | Kensington | 92,500 - 107,500 | — | | Wharf | 90,000 - 100,000 | 50 - 200 | | Total | 380,000 - 440,000 | 16,700 - 20,250 | 2025 Adjusted CAS Guidance ($/oz) | Mine | Gold ($/oz) | Silver ($/oz) | | :--- | :--- | :--- | | Las Chispas | $850 - $950 | $9.25 - $10.25 | | Palmarejo | $950 - $1,150 | $17.00 - $18.00 | | Rochester | $1,250 - $1,450 | $14.50 - $16.50 | | Kensington | $1,700 - $1,900 | — | | Wharf | $1,250 - $1,350 | — | Updated 2025 Capital, Exploration & G&A Guidance ($M) | Category | Previous ($M) | Updated ($M) | | :--- | :--- | :--- | | Capital Expenditures, Sustaining | $132 - $156 | $142 - $156 | | General & Administrative Expenses | $44 - $48 | $48 - $52 | Financial Statements This section presents the unaudited condensed consolidated financial statements for Q2 2025, including the Balance Sheet, Income Statement, and Cash Flow Statement, reflecting the significant impact of the SilverCrest acquisition and strong operational performance Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $4.15 billion from $2.30 billion due to the SilverCrest acquisition, with cash increasing to $111.6 million and total debt reduced to $380.7 million Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $111,646 | $55,087 | | Total Assets | $4,150,950 | $2,301,747 | | Total Current Liabilities | $327,674 | $330,820 | | Total Debt (Current & Non-Current) | $380,722 | $590,058 | | Total Stockholders' Equity | $2,828,387 | $1,123,252 | Condensed Consolidated Statements of Comprehensive Income (Loss) For Q2 2025, the company generated revenue of $480.7 million, more than double the prior year, resulting in a net income of $70.7 million, or $0.11 per share, a significant improvement from Q2 2024 Q2 Income Statement Comparison (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $480,650 | $222,026 | | Total costs and expenses | $340,542 | $205,350 | | Income from operations | $140,108 | $16,676 | | Net Income | $70,726 | $1,426 | | Basic EPS | $0.11 | $0.00 | Condensed Consolidated Statements of Cash Flows The company generated a record $207.0 million in cash from operating activities in Q2 2025, with $60.6 million used in investing activities and $112.8 million used in financing activities, primarily for debt and lease payments Q2 Cash Flow Comparison (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $206,951 | $15,249 | | Cash used in Investing Activities | ($60,573) | ($51,553) | | Cash from (used in) Financing Activities | ($112,772) | $43,316 | | Increase in Cash | $34,102 | $6,651 | Appendix: Non-GAAP Reconciliations This appendix provides detailed reconciliations of non-U.S. GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and Adjusted Costs Applicable to Sales (CAS), to their nearest U.S. GAAP equivalents, offering transparency into various adjustments - The report provides reconciliations for key non-GAAP measures including EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, and Adjusted Costs Applicable to Sales (CAS) per ounce[64][67] Net Debt and Leverage Ratio Trend | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--- | :--- | :--- | :--- | | Total debt ($M) | $380.7M | $498.3M | $629.3M | | Net debt ($M) | $269.1M | $420.7M | $555.2M | | Leverage ratio (x) | 0.4x | 0.9x | 2.9x | - Detailed reconciliations of Costs Applicable to Sales (CAS) to Adjusted CAS are provided for each operation, breaking down adjustments for amortization, inventory, and by-product credits to arrive at the per-ounce cost metrics[84][86][88]