Coeur Mining(US:CDE)2026-02-19 17:00Financial Data and Key Metrics Changes - Record full year silver and gold production increased by 57% and 23% year-over-year, respectively, with full year record EBITDA rising 200% to over $1 billion and free cash flow increasing to $666 million from -$9 million in 2024 [3][4] - Year-end cash increased more than 10x to $554 million, and net income rose tenfold to a record $586 million [3][4] - Adjusted cash per ounce for gold and silver was $1,207 and $1,729, respectively, leading to strong margin expansion [11] Business Line Data and Key Metrics Changes - U.S. operations accounted for nearly 60% of 2025 revenue, with silver representing about 35% of total revenue [4] - Las Chispas generated $286 million of free cash flow in only 10.5 months of contribution, while Rochester's production increased 40% and 54% for silver and gold, respectively [4][12] - Kensington achieved gold production of 30,000 ounces and free cash flow of $51 million, marking its best result ever [16][17] Market Data and Key Metrics Changes - Quarterly realized gold and silver prices increased by 21% and 40%, respectively, with expectations for continued strength in 2026 [25] - The company anticipates a 10% year-over-year increase in silver production for 2026, contributing approximately 42% of total revenue based on current prices [6][25] Company Strategy and Development Direction - The company is focused on successfully closing the New Gold transaction, which is expected to enhance its geographic footprint and reduce cost profiles [7][9] - A record amount of capital is allocated to exploration investments in 2026, with a 47% increase compared to 2025 levels [28] - The long-term focus includes building consistency and momentum through operational improvements and exploration to extend mine lives [15][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position, anticipating another record year in 2026 [6][9] - The integration of New Gold is a critical priority, with robust planning already underway [27][28] - Management highlighted the importance of maintaining safety and environmental performance as a top priority [28] Other Important Information - The company achieved its goal of being net cash positive, with total debt declining by 42% year-over-year [25][26] - Exploration investments are expected to increase to between $120 million and $136 million in 2026, focusing on high-return opportunities [22] Q&A Session Summary Question: Reserve grades at Las Chispas - Management indicated that the grade profile reflects a more conservative modeling approach, with expectations for normalization in future grades [34][36] Question: Maiden resources at East Palmarejo - All reported ounces are outside the Franco-Nevada Gold Stream area, with potential for future production [41][42] Question: Cash tax guidance breakdown - Approximately 80% of cash taxes are expected to be paid in Mexico, with some cash tax obligations in the U.S. due to limitations on tax shelters [48][50] Question: Capital returns preference - The company is considering both dividends and buybacks, with a slight preference for buybacks due to the flexibility they provide [54][55] Question: Exploration opportunities in New Gold assets - Management is looking to allocate additional capital to exploration at Rainy River post-transaction closure [57][58]