Coeur Mining (CDE) 9 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the Coeur Mining Third Quarter 2023 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 day, everyone, and thanks for joining our third quarter 2023 earnings call.

Before getting underway, please note our cautionary language on forward-looking statements in today's slide deck and refer to our SEC filings on our website. a over on Tom. to with turning X off call the Mick, kick quick Slide overview before I'll Aoife and

primarily These silver our Gold gold behind declined a take were In at to Rochester completion of a revenue key due to business gold and that results production back gold as Kensington at is gold ounce role third the million adjusted expansion quarter XX% While the quarter the XX% material of and stronger total with per X.X to results. a side the quarter a headline bounce ounces of of is well as drove expansion increased ounces silver. Obviously, Rochester. it approximately increase XX%, us, $XXX larger now EBITDA. which increased total, the drove in strong was million on production Palmarejo. XX,XXX the at project quarterly of set costs

produced ounces than minutes. Xx year. this gold more levels. to significant X,XXX months step-up Rochester will leach new in X-stage The of They ounces X the operating on possible, safely the off ounces and In about the up pad in handing prior October roughly higher it focus circuit recovered Mick couple is of quickly the to and ramp in during plant is so a of were which team and crushing silver the quarter, first production talk as meantime, process now and from to alone, as the new delivering a in over far XXX,XXX

it's able underway, showing plan it us on newly a crusher ore in but scale crusher, the remove infrastructure. access of presentation, legacy to the Rochester million the at year. now early to has beneath that which heap commissioning Slide America's the processing year rate, we expected mine in allows is be And pit to next some North XX beginning expanded here were recent operation. open largest applications do firsthand is at renewable source witness Once started work and of already to higher-grade silver country's and to time leach tonne silver operation With per of starting located the largest September job demand produced also and of refined a become XX electronic today's rapidly when power expected photos, U.S., good of for climbing. to this Some size the domestically sources you

higher a investment With levels and importantly, will will elevated provide the poised transformational Aoife a a at our cash ounces and driver, balance that X.Xx and it with Rochester's through sheet mine several enhance for priority near-mine start in flow to to opportunities key away. now gold is be to production free top truly to lower-cost with leverage be shortly. which in starting minutes. operation life is reducing Finally, as exploration, a will few levels of silver most Coeur on period of recent the fall touch XXXX expand a update Tom

during accelerated Mick. some the at latest that, shortly. With details quarter on to additional the life. continuing potential One other turn demonstrate mine near-mine over the provide add will Kensington to comment its exploration. call Aoife I'll Drilling to results the with to

Thanks, and good day, everyone.

#X Rochester the into expanded Rochester, Nevada recognized the integrate at the at quarterly infrastructure As improvements end expansion good Kensington with as the project. Beginning third of and characterized quarter is newly the was mining full-scale the construction capped by regarding located the in our what Mitch mentioned, operation delivered solid jurisdiction. effort team widely world's the off by results to news

to very for the with remain during new strong ramp-up earlier and we first new fourth is gold taking of place crusher position great plant Commissioning has mentioned set XXXX. truly in first guidance. The XXXX impressive place us fronts underway leach quarter, production full pad been silver of with Mitch September. those process track to from on and October achieve a take the on production the progress results that and half Our

our now of of Looking mining to majority goals. throughput the Nevada at of verifying the scale support Slide required extensive planned forward. XX% enjoy the in to to best Northern increase to the strong in needed increase systems we X, deliver which to testing possible Rochester's we that reputation day by have completed, been tonnes XXX,XXX is full X.Xx The a which the ensure expect helping ramp-up the the modest has workforce place can capacity going in economies expansion is headcount, highlights that end per XXXX. on

for and fully trained are staffed job the ahead. We

from Aside degree Rochester, the mine. from the us benefits mine learnings be gained true the of for Coeur offers attributes matched that inherent familiarity extensive with a new of positive expansion growth the differentiator large is a stand-alone cannot the but of and all new

and that key and technical our are Our a infrastructure advantage. we is deep facilities from the drawing of people, expertise well competitive

accountability Looking construction rock-solid safety X.X million time over lost culture at just served the project incident. and Coeur's foundation back safety for a this a build, single result a as of at truly hours excellent with

by mine the of tailings project open forward schedule. on and of high compression the waste quarter from Palmarejo the Tonnes ahead with Turning milled looking production life. X rock XX,XXX completion gold XX% in completion to recoveries, pit on secures side, higher especially capacity to Slide the step in also of ounces. increased leading where Its to a a backfill tailings contribution and storage nearly the the Guadalupe, and remainder budget increased Palmarejo's through Palmarejo. took at strong big for

our water More XX%, for that while there utilization process needed the on open reclamation tailings importantly, start head providing future by efforts. it pit the reduce estimate we will overall backfilling a legacy and

to leading paste earlier expected, quarter is to operation year similarly between which Moving refrain quarter guidance Wharf, abated The from to significantly expected be continues well to delivered excess production year the but with targets. positioned production Kensington, year. Kensington's flows as for impacted is and have the the results, placement us and have on improved exceed good this ounces. Finishing water to a improved and paste to finish a fourth XX,XXX XX,XXX was up third quarter full issues as

of that, Aoife gold with the a has revised ounces end production low guidance review the remaining ounces pass As upwards for high Wharf's of end XX,XXX ounces. With the been result, over by call at X,XXX XX,XXX to a exploration. to I'll

everyone. hello, and Mick, Thanks,

outlined to XX, of to modeling addition referring at the best at to to in of control the host higher great XXXX there increased in all programs seem the exploration mentioned, been of shoots. Drilling The some and with geology and key Rochester, XXX-foot higher structures September of part enhance mineralized at length of years These Kensington. Mitch structures XXXX, already grades have These some continuation higher-grade At this discovered the at [ followed structures zone, of extends the potential high-angle defined success feet, been on for Kensington structures wide the depth. made the X.X to XXX-feet and Kensington quarter. a intersected indicated life strike that be down Tom. exploration is demonstrated north and successful call A detail multiyear year-end that Rochester to developments Packard we net As and pit. gold has a at XXX Nevada these program mine Kensington's and mine up pit deposit. including by will down the the a positive of south ] released been some of grades. since structures encountered, thicknesses most Kensington, XX from and progress we X-mile during has turn XX, of that we linking that length slides now long press new ongoing and the grade Zone strike continuing form ongoing our in to life, such and has intersected have controls south structures XXXX. Over exploration beyond. I'll of Upper release XXXX addition understanding work in over from subparallel depletion, set opportunity more XXB, has the first recent tested mineralization to the to Lower corridor Drilling ever dip. X-mile over On in we

will brief results review financial a providing quarter our Thanks, with before Aoife. third of update. begin a I balance sheet

to on Slide Turning XX. financial the highlights

flow EBITDA and adjusted at swung Palmarejo payment continue senior a as Rochester at as CAS ounce. Operating revenue the to consolidated semiannual the negative driven notes. we significant the primarily of also the healthy X per quarter new increases leach lower quarter, $X on on prior cash timing gold increased inventory million our to build as to pad well X/X% interest up saw which led to Third compared and sales by Kensington,

drive As we by in to expecting noted production, fourth quarter by sites. Mitch and we all a significant are Mick, cash operating emphasized which increase strong flow across expect

on costs XX. Slide to Turning

We pressures, almost quarter-over-quarter. risk. managing continued and per this increased to helped Kensington drive we improvement Despite mitigate inflationary aggressively key the at consolidated $XXX to initiatives down inflationary CAS costs continued throughput and experience Palmarejo implementing are but pressures, gold by business ounce

net of hedging of Merrill-Crowe our discussing production, balance quarter-over-quarter ounces Turning quarter previous of ramp as million. metal and at is sheet. context note recovered gold and EBITDA equivalents over annual X,XXX of mitigation up Rochester throughout to ounces the tool October, new that fourth total silver ratio entire revolving more the a finished the at a price QX facility capital back we've this important QX under conference expect ounces across Rochester's capacity key $XX at calls is XXXX of To with $XXX cash ounces We flow liquidity of placed and versus combined and on risk million that many second ramp we during the during remains taking which of than company's rates with debt-to-EBITDA third total of month during the to quarter Rochester. on quarter production the this million, intensity been comprised is and $XXX produced we leach up including expected quarter. The the the XXX,XXX lower It guidance and all place of we the higher pad. borrowing during The of the the ended available program give consistent strong credit period we quarter. Rochester. of with end monetize monster cash a sites, flush on primarily slightly We the of quarter to

our production in at We per hedged and XX% quarter our of fourth ounce. almost locked of production $XX.XX have ounce per nearly hedgeable gold silver XX% fourth quarter $X,XXX at

key As with $XX activities. I data of million points gain book total gains an of final remaining XX, $XX expansion. million year-to-date, hedging XXXX the hedge the XXXX just from with on to gains hedges. sits unrealized under to the Rochester related realized of Combined the expect September approximately highlight we wanted two our

$XXX the million million XX have be paid and million at We have the $XXX to September XX, of XXXX, final to approximately paid incurred during $XX million POA as cost capital of quarter the year. $XX leaving

remain Mitch. range to cost $XXX we of pass the guided million. I'll million now within back Importantly, and the between call capital $XXX

XX priorities and Slide full X. summarizes the With to we ramping Wharf, and remainder Safely strong the job our up remains year. Palmarejo are deliver well Tom. at top Kensington achieve Rochester guidance. from quarter a Thanks, quarter another positioned our year fourth efficiently and the consistent for performance fourth and of during quarter stronger

years, we past deliberately business long in to reinvesting been X term. the the X the for Over have

up expansions, of growth, deliver investments benefits the let's more on that, now sheet. With our mine billion look to costs, lives, a go ahead $X begin forward from flow questions. free we declining we silver to our conservative it benefit positive to for more longer As and and especially and transition sector-leading from open balance the in seeing exploration side, this investors than cash

question first today Bank. The Mike from with Parkin Instructions] [Operator National comes

October. Rochester Nice pretty in to numbers at banging see there good some

Just a couple of accounting questions.

you CapEx on that more flow on what's is incurred statement, reported cash with So Rochester? paid or your that the reconciling

rest cash sits and incurred, cash incurred incurred door door -- Mike, out the that will and is then that it's in so the and payables. it's yes, so yes, out the definitely be the -- --

you that payable see So that's elevated why number. accounts

Right.

Okay.

payable the in what's down coming the So quarter. be will accounts fourth

it. got You

Perfect.

the but Okay. being do I know And terms on leach of with have the then it's early thermal just days any load kind pad in concern to to it, sufficient of you we the kinetics, speak in little warms then recoveries second maybe months? winter the expect bit in a Like should slowdown a of at a as Rochester? the QX and pad pickup in quarter up for

Yes.

we course, there's crushed of recoveries the some ex-pit. in we're reality, So that there. seeing winter weather existing But and of now right is what dynamics material from the in all the

which recovery. crusher, Limerick for new us the up the different size expected ramped is yet to haven't we So actually a fraction and deliver improve

X. material that now, year similar got So for the last X experience on pad over getting and we this recoveries should pad this we here we've been for that on

place bit. The X based All we've testing are did. valuable, As the on we landing preparation year, last ramping we from new that in really will the years last that inventory, first up that the that calibrating see the and out that been start we'll of then a and little crusher, over half that the we recovery up flush current learning getting be ramped crusher XXXX. in on is for curve in this right recoveries though change the curve

ounces way a of guess I if a Sure. winter slowing month bit after up stacked, month. more even putting recovery, And ramping as there's in months still you're on you're tonnes

still probably going is month rise to after month. So production

the the earlier flush inventory from course. we'll the So in yes, from of see year,

to that get ramp-up about likely crusher tonnes We've and see bit online. placed that little pad got And we dip already just as then X. initially, a so you'll X.X on is the general million

be year. And again start and placing from that new end the ramped this get that so the crusher on getting where back up of ounces we'll material we'll

that is tonnes, million XX.X is as October? of of that And Okay. end

that's Yes, million. to X.X X.X date. million

Instructions] question Company. ] The Tom from Luther KCL ] comes with [Operator [ [ next

see stock your When up? do you going

XXXX said Yes, the flow, release, side go pretty the silver sheet, the catalysts significant and my I'll I we free levels growth a here leverage some to converge forward into cash look a here transition take seeing Like in balance on positive that. business the the from the on reducing as into few we in seeing comments with U.S. operation. of

benefit think silver and our to lower catalysts more in which more we to contribution are the U.S. see the that that cash terms debt and flow, free transition those investors contribution share in our revenue, should combined we'll revenue So of our price. with

would back Mitch any session. This for I like to and conference Krebs, concludes turn the CEO, remarks. our question-and-answer President over to closing

following today. season, Okay. time but day. speaking again everybody quarter us Hard year-end of saying to everybody, results. look the a healthy safe taking to Have a early Well, for and and thanks, with our forward but talk release we we and believe, to be wish to fourth this, in XXXX the -- good holiday

concluded. now for you today's Thank The attending conference presentation. has

disconnect. now may You