Q3 2024 Coeur Mining Inc Earnings Call Transcript
Key Points
- Coeur Mining Inc (CDE) reported a strong quarter with significant increases in production at its four operations, driven by higher gold and silver prices and reduced costs per ounce.
- The company achieved multiyear highs in quarterly revenue, adjusted EBITDA, net income, and free cash flow, allowing it to pay down $50 million of its revolving credit facility.
- The acquisition of SilverCrest Metals is expected to create a global leader in the silver industry, with anticipated 2025 production of over 21 million ounces of silver and 432,000 ounces of gold.
- Rochester operations showed continued momentum with a 20% increase in silver and gold production compared to the prior quarter, and significant cost reductions per tonne.
- The company reconfirmed its full-year guidance ranges, indicating another strong quarter ahead and further opportunities to reduce debt levels by year-end.
- Despite the positive results, the company still has a significant amount of debt, with $225 million drawn on its revolving credit facility at the end of the quarter.
- The integration of SilverCrest Metals requires regulatory approvals and shareholder votes, which could pose potential delays or challenges.
- The Rochester operation, while showing improvement, is still in the optimizing phase, which may impact short-term performance.
- The company’s cash balance of $77 million may limit its flexibility in the short term until the revolving credit facility is fully repaid.
- There is ongoing pressure to maintain and improve operational efficiencies, particularly in achieving targeted crush sizes at Rochester to enhance recoveries.
Good day, and welcome to the Coeur Mining third quarter 2024 financial results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mitch Krebs, President and CEO. Please go ahead.
Good morning, everyone, and thanks for joining our call today to discuss our third quarter results. Before we start, we want to quickly point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll start off with a few comments, starting on slide 3, before turning the call over to Mick and Tom.
We obviously had a very strong quarter which represented the free cash flow inflection point that we've been anticipating. Our strong results were driven by production increases at our four operations, higher gold and silver prices, and double-digit declines in our cost per ounce. This Goldilocks environment led to double-digit quarter
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