Coeur Mining(CDE) - 2025 Q2 - Quarterly Report

Part I. Financial Information This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Coeur Mining, Inc. for the period ended June 30, 2025 Condensed Consolidated Balance Sheets Details the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $526,309 | $273,099 | | Cash and cash equivalents | $111,646 | $55,087 | | Total Assets | $4,150,950 | $2,301,747 | | Goodwill | $613,355 | $0 | | Total Current Liabilities | $327,674 | $330,820 | | Total Liabilities | $1,322,563 | $1,178,495 | | Total Stockholders' Equity | $2,828,387 | $1,123,252 | | Total Liabilities and Stockholders' Equity | $4,150,950 | $2,301,747 | - Total assets significantly increased from $2.3 billion to $4.15 billion, primarily driven by the acquisition of SilverCrest, which added $613.4 million in goodwill and increased property, plant, and equipment[11] Condensed Consolidated Statements of Comprehensive Income (Loss) Presents the company's financial performance, including revenue and net income (loss), for the periods ended June 30, 2025 and 2024 Statement of Comprehensive Income (Loss) Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $480,650 | $222,026 | $840,712 | $435,086 | | Income from operations | $140,108 | $16,676 | $202,264 | $13,319 | | Net Income (Loss) | $70,726 | $1,426 | $104,079 | $(27,691) | | Diluted EPS | $0.11 | $0.00 | $0.18 | $(0.07) | - Revenue for the second quarter of 2025 more than doubled year-over-year to $480.7 million, leading to a substantial increase in net income to $70.7 million compared to $1.4 million in the prior-year period[12] Condensed Consolidated Statements of Cash Flows Details cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $274,586 | $(622) | | Net cash provided by (used in) investing activities | $(7,269) | $(93,679) | | Net cash provided by (used in) financing activities | $(210,925) | $107,135 | | Increase in cash, cash equivalents and restricted cash | $56,596 | $12,513 | - Operating cash flow for the first six months of 2025 was a strong inflow of $274.6 million, a significant turnaround from a small outflow in the same period of 2024. Financing activities showed a net use of cash of $210.9 million, primarily due to debt repayments of $357.0 million[13] Notes to Condensed Consolidated Financial Statements This section provides detailed explanations of the accounting policies and methodologies used in preparing the financial statements - On February 14, 2025, the Company completed the acquisition of SilverCrest Metals Inc. in exchange for approximately 239.3 million common shares, with an implied total equity value of $1.58 billion. The transaction was accounted for as a business combination[29][30] Preliminary Purchase Price Allocation for SilverCrest Acquisition (in thousands) | Component | Amount | | :--- | :--- | | Total purchase price | $1,518,211 | | Net identifiable assets acquired | $904,856 | | Goodwill | $613,355 | - The Revolving Credit Facility (RCF) was fully repaid during the quarter, with no outstanding draws as of June 30, 2025, compared to $195.0 million outstanding at the end of 2024[51][53] - The company initiated a $75.0 million share repurchase program on May 27, 2025. During June 2025, 216,500 shares were repurchased for approximately $2.0 million, leaving $73.0 million available under the program[95][96] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses financial condition and results, highlighting record revenue, cash flow, and balance sheet improvements - Q2 2025 was a record quarter with revenue of $480.7 million, net income of $70.7 million, and record free cash flow of $146 million[117] - The company strengthened its balance sheet by repaying the remaining $110 million on its revolving credit facility (RCF), resulting in a net leverage ratio of 0.4x at quarter-end[117] - Full-year 2025 production guidance is reaffirmed at 380,000 - 440,000 ounces of gold and 16.7 - 20.3 million ounces of silver[117] Consolidated Financial Results Provides a comparative analysis of financial results, highlighting significant revenue growth and improved net income Consolidated Metal Sales (in thousands) | Period | Gold Sales | Silver Sales | Total Metal Sales | | :--- | :--- | :--- | :--- | | Q2 2025 | $323,114 | $157,536 | $480,650 | | Q1 2025 | $235,327 | $124,735 | $360,062 | | % Change | 37% | 26% | 33% | - The increase in Q2 2025 revenue was driven by a 20% increase in gold and silver ounces sold and a 15% and 5% increase in average realized gold and silver prices, respectively, compared to Q1 2025[120] - For the first six months of 2025, revenue increased 93% year-over-year, driven by a 24% increase in gold ounces sold, a 65% increase in silver ounces sold, and a 47% and 32% increase in realized gold and silver prices, respectively[130] 2025 Guidance The company reaffirmed 2025 production and cost guidance while updating capital and G&A expense guidance 2025 Production Guidance | Metal | Production Range | | :--- | :--- | | Gold (oz) | 380,000 - 440,000 | | Silver (K oz) | 16,700 - 20,250 | 2025 Capital, Exploration and G&A Guidance Update ($M) | Category | Previous | Updated | | :--- | :--- | :--- | | Capital Expenditures, Sustaining | $132 - $156 | $142 - $156 | | General & Administrative Expenses | $44 - $48 | $48 - $52 | Results of Operations Details the operational performance of each mine, highlighting significant production increases from key sites Q2 2025 Production by Mine | Mine | Gold Ounces Produced | Silver Ounces Produced | | :--- | :--- | :--- | | Las Chispas | 16,271 | 1,488,672 | | Palmarejo | 27,272 | 1,740,952 | | Rochester | 14,302 | 1,456,326 | | Kensington | 26,555 | - | | Wharf | 24,087 | 36,244 | - Las Chispas results reflect a full quarter of operations in Q2 vs. a partial quarter in Q1 post-acquisition, with gold and silver production increasing 127% and 108% respectively[149] - Rochester's ramp-up is progressing, with 6.7 million tons of crushed ore placed on the new leach pad in Q2, a 24% increase compared to Q1[156] Liquidity and Capital Resources The company maintained a strong liquidity position with increased cash and available credit, improving its net leverage ratio - At quarter-end, the company had $113.5 million in cash, cash equivalents, and restricted cash, with $379.8 million available under the RCF[166] - The company fully repaid its RCF, with net repayments of $195.0 million during the first six months of 2025[166] - The company's net leverage ratio (Net Debt to Last Twelve Months Adjusted EBITDA) improved to 0.4x as of June 30, 2025[167] Non-GAAP Financial Performance Measures Provides definitions and reconciliations for non-GAAP measures like Adjusted EBITDA and Free Cash Flow Key Non-GAAP Reconciliations (Q2 2025, in thousands) | Metric | Amount | | :--- | :--- | | Net Income | $70,726 | | Adjusted Net Income | $127,401 | | EBITDA | $202,993 | | Adjusted EBITDA | $243,481 | | Cash flow from operations | $206,951 | | Free Cash Flow | $146,144 | Quantitative and Qualitative Disclosures About Market Risk The company faces market risks from fluctuating metal prices, foreign currency, and interest rates - The company's primary market risk is the fluctuation of gold and silver prices, which can significantly impact profitability, cash flow, and the valuation of inventory and assets[213] - As of June 30, 2025, the company had no outstanding gold or silver hedging contracts. It acquired some zero-cost collar hedges with the SilverCrest acquisition, but they settled by March 2025[217] - The company has exposure to foreign currency risk from its operations in Canada and Mexico. It may use forward contracts to manage this risk but had none outstanding at June 30, 2025[220][221] Controls and Procedures Management concluded disclosure controls were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[225] - There were no changes in the company's internal control over financial reporting during the second quarter of 2025 that have materially affected, or are reasonably likely to materially affect, its internal controls[226] Part II. Other Information This section covers legal proceedings, risk factors, and other material information not included in the financial statements Legal Proceedings Refers to Note 17 for details on legal proceedings, including VAT recovery litigation and labor matters - For details on legal proceedings, the report refers to Note 17 of the financial statements[228] Risk Factors No material changes to previously disclosed risk factors from the 2024 10-K and Q1 2025 10-Q - The risk factors set forth in the 2024 10-K, as supplemented by the Q1 2025 10-Q, remain current. No new significant risks are disclosed in this report[229] Other Information Discloses CEO Mitchell J. Krebs adopted a new Rule 10b5-1 trading plan for potential stock sales - On June 6, 2025, CEO Mitchell J. Krebs adopted a new 10b5-1 trading plan for the sale of up to 250,000 shares of common stock, effective from September 5, 2025, to February 15, 2026[231]