Coeur Mining(CDE) - 2025 Q3 - Quarterly Report

Financial Performance - Coeur reported Q3 2025 revenue of $554.6 million, a 15% increase from Q2 2025, driven by higher gold and silver sales [120][123] - GAAP net income for Q3 2025 was $266.8 million, or $0.41 per diluted share, compared to $70.7 million, or $0.11 per diluted share in Q2 2025 [120][134] - Adjusted EBITDA for Q3 2025 was $299.1 million, a 23% increase from Q2 2025, contributing to a trailing twelve-month total of $808 million [120][121] - Revenue increased by $646.7 million, or 86%, driven by a 22% increase in gold ounces sold and a 65% increase in silver ounces sold [135] - Net income was $370.9 million, or $0.61 per diluted share, compared to $21.0 million, or $0.05 per diluted share in the previous year [148] - Adjusted net income for the nine months ended September 30, 2025, was $334,561 thousand, compared to $24,729 thousand for the same period in 2024 [197] - Free cash flow for the three months ended September 30, 2025, was $188,672 thousand, up from $146,144 thousand in the previous quarter [202] - EBITDA for the three months ended September 30, 2025, was $249,146 thousand, compared to $202,993 thousand for the previous quarter [199] - Adjusted EBITDA for the nine months ended September 30, 2025, was $691,450 thousand, significantly higher than $222,785 thousand for the same period in 2024 [199] Production Metrics - Gold production reached 111,364 ounces, a 3% increase quarter-over-quarter, while silver production was 4.8 million ounces, up 1% quarter-over-quarter and 57% year-over-year [120][121] - Gold sales reached $918.9 million, a 74% increase, while silver sales increased to $476.4 million, an 118% increase [136] - Gold production for the three months ended September 30, 2025, was 114,495 ounces, while silver production was 4,985,952 ounces [211] - For the nine months ended September 30, 2025, gold and silver production totaled 39,986 and 3,774,761 ounces respectively, following the acquisition of SilverCrest [157] - Gold ounces produced at Palmarejo for the quarter were 24,802, with a decrease in average gold grade to 0.050 oz/t [158] - For the nine months ended September 30, 2025, gold production at Kensington increased by 11% due to higher mill throughput [167] - Gold production included 52,000 ounces from Las Chispas, 100,018 ounces from Palmarejo, 68,000 ounces from Rochester, 104,271 ounces from Kensington, and 95,454 ounces from Wharf [218] - Silver production totaled 5,240,757 ounces from Las Chispas, 6,006,911 ounces from Palmarejo, and 7,752,237 ounces from Rochester [218] Costs and Expenses - Costs applicable to sales rose by $235.0 million, or 53%, primarily due to post-acquisition sales at Las Chispas [138] - Amortization increased by $89.0 million, or 101%, due to increased production at Las Chispas, Rochester, and Kensington [139] - General and administrative expenses rose by 12% due to higher stock-based compensation and annual incentive costs [127] - Costs applicable to sales per gold and silver ounce sold were $935 and $10.77 respectively, reflecting an adjusted basis after accounting for inventory impacts [156] - For the nine months ended September 30, 2025, costs applicable to sales totaled $682,456,000, with gold production of 310,759 ounces and silver production of 13,550,625 ounces [213] - Costs applicable to sales for Las Chispas amounted to $98,737,000, while Palmarejo reported $206,988,000, Rochester $200,710,000, Kensington $178,666,000, and Wharf $123,751,000 [218] - The average cost of gold per ounce for the three months ended September 30, 2025, was $1,837, while the average cost of silver was $21.15 [211] Debt and Liquidity - The company’s cash and equivalents more than doubled to $266 million at quarter-end, with a net leverage ratio of 0.1x [120] - The company repaid over $228 million of total debt year-to-date, significantly improving its liquidity position [120] - Total debt as of September 30, 2025, was $363,516,000, down from $380,722,000 in the previous quarter [209] - Net debt decreased to $97,174,000 as of September 30, 2025, from $269,076,000 in the previous quarter [209] - Cash provided by operating activities for the nine months ended September 30, 2025, was $512.3 million, a significant increase from $110.4 million in the same period of 2024 [177] - The company believes its liquidity and capital resources in the U.S. are adequate to fund its operations and corporate activities [193] Taxation - The effective tax rate for Q3 2025 was (57.0)%, influenced by a $216 million release of valuation allowance against U.S. deferred tax assets [130][132] - The company released a $216.0 million valuation allowance against its U.S. net deferred tax assets, resulting in a non-cash deferred tax benefit [146] - The effective tax rate for 2025 is projected to be between 27% - 33% [152] - The tax effect of adjustments for the three months ended September 30, 2025, was $173.0 million, representing a 415.5% increase [197] Future Outlook - Full-year 2025 gold production guidance was refined to 415,250 ounces, a 1% increase in the midpoint, while silver production guidance was adjusted to 18.1 million ounces, a 2% decrease [120] - The updated 2025 production guidance for gold is 392,500 - 438,000 ounces and for silver is 17,100 - 19,150 thousand ounces [150] - The company plans to issue equity securities or repurchase debt securities to reduce indebtedness and fund future cash interest payments [194] - Future plans include continued exploration to extend mine lives, debt reduction, and investment in the viability of the Silvertip project [174] Risk Management - The company operates in several foreign countries, exposing it to foreign currency exchange rate risks that may significantly impact profitability and cash flow [229] - The company had no outstanding foreign currency forward exchange contracts at September 30, 2025 [230] - The company had no outstanding interest rate swaps at September 30, 2025, indicating a focus on managing interest rate exposure [231] - A 10% change in realized gold prices would cause revenue to vary by $4.7 million [228] - The company had forward contracts for gold and silver that settled monthly through June 2024 to protect cash flow during the Rochester expansion ramp-up [226]