Coeur Mining(US:CDE)2023-02-21 16:00Financial Performance - For the full year 2022, Coeur reported revenue of $785.6 million, a decrease of $47.2 million or 6% compared to 2021, primarily due to a 6% decrease in gold ounces sold and a 4% decrease in silver ounces sold [91][94]. - Adjusted EBITDA for 2022 was reported at $138.9 million, down from $216.1 million in 2021 [93][94]. - The company's net loss was $78.1 million, or $0.28 per diluted share, compared to a net loss of $31.3 million, or $0.13 per diluted share in the previous year [107]. - Adjusted net loss was $89.1 million, or $0.32 per diluted share, compared to an adjusted net loss of $1.4 million, or $0.01 per diluted share [109]. - Revenue decreased by $16.7 million, or 10%, primarily due to lower gold production, partially offset by a $7.1 million increase from higher average realized gold prices [142]. - The Company reported a net loss of $78.1 million for the year ended December 31, 2022, compared to a net loss of $31.3 million in 2021 [207]. - Adjusted net income (loss) for 2022 was $(89.1) million, reflecting a significant decrease from $(1.4) million in 2021 [207]. - EBITDA for 2022 was $72.0 million, down from $148.4 million in 2021, indicating a decline in operating performance [210]. Production and Sales - Gold production totaled 330,346 ounces and silver production totaled 9.8 million ounces in 2022, with quarter-over-quarter increases of 5% and 4% respectively in Q4 2022 [91]. - The company expects 2023 gold production of 320,000 - 370,000 ounces and silver production of 10.0 - 12.0 million ounces, driven by increased production from the Wharf operation and the ramp-up at Rochester [91]. - Gold production in 2022 totaled 329,968 ounces, while silver production reached 9,771,724 ounces, reflecting a stable output compared to previous years [218]. - Gold sales totaled 106,452 ounces, while silver sales reached 6,802,113 ounces, contributing to a revenue split of 51% from gold and 49% from silver [222]. Costs and Expenses - Costs applicable to sales increased by $95.0 million, or 19%, primarily due to higher operating costs and inflationary pressures [97]. - General and administrative expenses decreased by $0.9 million, or 2%, primarily due to lower stock-based compensation expenses [99]. - Costs applicable to sales increased by $71.2 million, or 16%, primarily due to inflationary pressures and higher silver ounces sold [113]. - Costs applicable to sales per gold ounce increased by 33% to $886, while costs per silver ounce increased by 9% to $13.09 in 2022 [133]. - The cost per ounce of gold produced in 2022 was $1,423, an increase from $1,086 in 2021, representing a rise of approximately 31% [218]. - Total Costs Applicable to Sales for the year ended December 31, 2022, amounted to $606,530 thousand, compared to $511,539 thousand in 2021, indicating a year-over-year increase of approximately 18.6% [218]. Capital Expenditures and Investments - Capital expenditures for 2023 are projected to be between $320 million and $380 million, including $120 - $145 million for sustaining capital and $200 - $235 million for development [130]. - Capital expenditures increased to $352.4 million in 2022 from $309.8 million in 2021, mainly related to construction activities at Rochester and underground development at Palmarejo and Kensington [167]. - The POA 11 expansion project at Rochester is 74% complete and is on track for mid-year 2023 completion, with total estimated project capital remaining at $650 - $670 million [91]. - Exploration investments led to a 12% increase in gold reserves and a 3% increase in silver reserves year-over-year, with a total investment of approximately $245 million over the last five years [91]. Liquidity and Cash Flow - Coeur's total liquidity at the end of Q4 2022 was approximately $342 million, including $62 million in cash and $280 million available under its revolving credit facility [91]. - Net cash provided by operating activities decreased to $25.6 million in 2022 from $110.5 million in 2021 [164]. - The company’s total cash provided by operating activities for 2022 was $25,616 thousand, a significant decline from $110,482 thousand in 2021 [216]. - Free Cash Flow for 2022 was $(326,738) thousand, a decrease from $(199,299) thousand in 2021, and a significant drop from $49,430 thousand in 2020 [212]. Market and Price Risks - The company is targeting to hedge up to 70% of expected gold production and 50% of expected silver production for 2023 to protect cash flow [159]. - A 10% increase in gold prices would result in a net realized gain of $44.3 million, while a decrease would lead to a loss of $4.8 million [231]. - The company is exposed to foreign currency exchange rate risks due to operations in multiple countries, which may significantly impact profitability and cash flow [233]. Tax and Regulatory Matters - The effective tax rate for 2022 was 23.1%, compared to an effective tax rate of 961.4% for 2021, influenced by various factors including income variations and geographic distribution [105]. - The Company recognizes tax liabilities based on estimates of potential tax audit issues, which may lead to significant adjustments in future periods [201].