Coeur Mining (CDE) 7 Nov 242024 Q3 Earnings call transcript

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.

driven and increases declines silver cost ounce. were operations, our in results per gold higher prices, strong by at production X our Our and double-digit and to net EBITDA, and free and This revenue, income double-digit flow. environment in quarterly led year-over-year Goldilocks increases multiyear cash highs adjusted quarter-over-quarter cash of million. adjusted down EBITDA approaching to $XXX $XX facility. Together million applied most flow credit LTM We of with the free paying our revolving now we We're now ratios leverage the seeing sheet. quickly drop delever balance as our bit detail and of minutes. Adding was on the a multiple sheet in Metals and priorities few last balance our catalysts go a plans acquire in SilverCrest silver to to will Tom industry. month more to our announcement converging to create our agreement leader in a momentum our these global silver time Chispas of free operation company received low-cost fundamentals ounces XX EBITDA we've the its leader a this on The and and balance lead million of production SilverCrest's stronger of much and with sheet ounces larger, addition XXXX over of million. Since primary announcement of expected silver of the will and gold to creating XXX,XXX $XXX a strong essential over shareholders approximately X, combination for a flow million both at about feedback $XXX October SilverCrest silver of from peer-leading positive extremely last cash with Coeur metal. industry for and pristine

for close the We expect to and formal quarter. shareholder transaction year-end take votes in around the to late place first

and year to during levels guidance XXXX. on reduce be third priorities, set strong ranges. year remains ranges additional Rochester will track to guidance up opportunity continuing our progress year-end. Mick, to the achieve which full our very Looking company-wide details ourselves over operational its and to to you. on by ahead key quarter. on quickly should what its at and end a metrics our achieved some another the implies debt Rochester. Overall, an key remains quarter further top the we've reconfirmed strong full focus highlighting provide for Rochester year Mick a

portfolio, accelerated of positive costs in in last Coeur's pressure and Operating Mitch. achieving lines the decade. Beginning from third continued hygiene quarter. targeted and Production roughly the quarter and has management. Rochester, we to increased strongest strength both Rochester team across continue controls, gold silver since our and showed fine-tuning been led Thanks, placed outlined compared the the quarter. process industrial continued to by with on quarterly trend results over tons we dialing-in XX% focus expansion easing a contributions The prior to July, momentum

expectations part target the of well And We crushed are JMA the circuit systematically Rochester circuit decreases call year. X% the second remains driving with optimization cryssized on we forward. Slide XX cost at taking to primary through line are finest manifest prepare reducing is [indiscernible] cost expected. and tonne half during refine this see pain processing firsthand within in of on operation details the profile how progress the periods during is the the double-digit data down in Rochester's the mining, advantage optimize and the being highlighted power and XX% reaching quarter, of A long scale operation. multi-decade for of focus of approached of dam room its [ the to ] the on point that scale percentage complement the this you the front, operation percentage latter per of September number the in Particle power. saw as excellent material that to of What for made going raw the year. the the beginning and to expanded

cash key free gold Palmarejo year. operations for production the finish increasing good quarter a on quarter. generated also other the X of to respectively, to and XX%, second X% and with compared track flow another the couple third silver good of are Our strong The the a to the the projects made quarter. of portal thing position on and near main end new for with strengths Hidalgo breakthrough the team connection of the future first success,

of drilling continues to prospective Hidalgo presented it's most progress portal gold from work third good also to new Fresnillo outside the areas closed collectively areas associated known flexibility current boundary. development getting completion acquired stream completely early and claims unlock Independencia piece the enhance important on in quarter. of the the immediate zones mining the expected note is Following and to development within mapping, as and The the efficiency. We've ramps, independency adjacent sit to mining and the deposit newly Sur planning after made access that overall accelerate, concessions development these The of Franco-Nevada near-term opportunity. that early

multiyear on to million gold the Positive to strong Wharf. million mine to to an progress wrap an up up quarterly record placement ounces The middle the to positive expected all Moving greater continues sustained year-end. Finishing year-to-date million. cash a flow and mine's demonstrate generating success our also with Kensington nearly drive extremely of positioned cash of cash to to year, to high free Kensington. production life back towards is X-year swing Gold goal reconciliation total timing higher million. $XX to up helped quarter. with underground led $XX of drilling continues all-time free a and flow free of $XX flexibility. development in building mine's the set next and history, bringing flow flow and by XX,XXX operational XX-year price in investment which The the remains of drilling $XX quarter to deliver by cash track well to leave Exploration free

for showing a for areas up Wharf, call North rest X expectations. Bringing to an in is We to mine and to The targets rigs recent keep demonstrate during last of Juno which targets quarter strong outcome. assets Juno introduced come. With more quarter historic Tom. very, continuity a to new fourth increase that, Foley deliver operation we potential to years quarter a the continues good the Wharf, typical potential the Overall, at expect pass very Wharf over I'll life the still delivering from continued continues with materially exploration X to pit. good show continued to that exceed surface and drill as

Thanks, Mick.

discussed and prior and on Higher calls, all the As quarter. expected arrived long-awaited flow CapEx cash for free Coeur costs point were delivered. lower this unit inflection revenues, lower

that XX% we third and in X silver. free of decrease adjusted million factors of higher the quarter to million $XX and gold These quarter, ounce operating and $XXX ounce During punch in metal cash a the third powerful $X,XXX in per of showing saw to prices were per cost flow flow $XX.XX phase per a XX% of is sustained ounce the to free and led mines. the power one-two alone, EBITDA the the inflection and free fourth cash cost, Las continued Kensington we growth and projected even expect XXXX. Coeur's prices Chispas's higher With the of be still production during addition Rochester point on of in portfolio. cash stronger flow, based metals quarter optimizing Rochester at the results higher

from period. at flow be prior with which As debt at we million facility, reduction quarter allocating we drawn a end, revolving levels, our million to free our reducing the sat $XX stated credit have beginning $XXX cash consistently, will

of bullion time As September up begin will include as allocation SilverCrest framework which acquire course, years. abide Whether been to X.X% million by could notes $XXX the reinvest on capital than cash does to the the net the agreement this have or in plunged the form focus generating XXXX. in high-return short-term sheet, to a regulatory SilverCrest, By Slide This, filings. cash X required to Silvertip, we greater of return to position and million long-stated to XX, in mid-XXXX, briefly has balance all returns brownfield not or our [ continue announced of in of a building above, on exploration future of focus our debt-to-EBITDA has of a very healthy ] the ratio of on of to below our continue fully support the to shareholders development period combination some shown of cost a definitive likely recently first XX, repaid in $XXX approximately capital. Returning has and we the repaid of finalizing Xx expect sheet. on balance revolver be it's for capital

upon We for a planning likely call the are in running integration pass QX now actively closing, late smooth XXXX. I'll Mitch. ground so can hit to the we back

Thanks, Tom.

Q&A, positive year with at acquisition to Before remainder our optimization and to the the of Las go of continued reduction I of and it leave the that of and strong positioned integration very questions. by Rochester, the forward moving further another list. for planning highlighted safe SilverCrest free and closing quarter XXXX. With top the XX production, the pursuing well ahead for fourth highlight of for We a for Slide which even the Chispas quarter, priorities cash summarizes let's that, top the up look higher of strong want debt the to us quickly should a open flow delivering

comes first The Instructions] Partners. from with Reagor question Joseph [Operator Capital ROTH

modeled how and apologize that this given far guys you of production I we was the reach internally Is minutes of quarter if on that seeing I guess exact cycle late. I have have first thing ore stacked? don't as what as on touched this, timing you joined the in Rochester, couple guys matching you're third a the

it. to and short, question. I'll In is, the Joe. for can add it you then, Thanks Yes. start Mick,

the As crush size and according million]. from to size things lower been of of of and that. down of and they in as of what a recoveries obviously get we then $X.X we that the to where we -- sizes. running start would kind we've what target at we size improve that focusing period improve the they'll gone tracking fraction do bit the have we've Obviously, end year crush there on based the those time on are higher modeled to a stabilizing [ down, recoveries this get as out crush by will But

So things we you to are want tracking expected. Mick, as anything add? had

couple recovery all great material. model into pit the the Yes. really try insight of fine to way the period down to curves. that upgrade And and the size a had a We gives with ex fractions years larger of and

we're tracking so recovery that seeing are far, And those on curve. recoveries that

at of year, we said a fraction. was focused tonnage we the up rate year. tonnes and getting larger And run earlier the As the size middle on hitting that by the the in

good we'll the towards come be end see that XXXX. as going to into we're some hitting But there. We're we're and in dialing yet, XXX,XXX time, are So really over the X-year direction. size as fraction. And as regularly to in in net of focused results right improve we're the But going but tonnes through said, really overall, we recoveries the momentum day, planned. there those Mitch which heading seeing now per we're and happy. we're But quite to some year on we're not that is

Okay. remaining see Fair. And as then on the it the getting hurdles you closed? SilverCrest to you are what this have acquisition, guys

know -- really we to if the Both for which first have around I late guess, shareholder hurdles in Yes, that [indiscernible] the set Mexico approval we'll that just I companies first should year-end. from quarter us X, will don't We have the then quarter, up do votes expect get steps. close.

biggest the that So and jump through X need hoops those closing. to here between are we'll really

And final balance sheet. on then Okay. the X thing

little to should You a we're $XX traditional keep you for grow that that to about we it trying cash. back at How us that? XXX? a level? as assume repayment guys finished want will with about number around Is debt million levels, it good quarter the towards forecast more guys think Do in to bit you that

go repaid, Well, revolver, prioritizing of first that then mentioned Tom, we're we're half end a that year, and to repayment in lost -- after and plus from some we by probably start have we But little get at kind start the ZIP next next as But can integrated to should midyear, that -- code. then stay that as of is Tom, that with me. cash fully revolver go can I is okay my cash there. which will balance while build, midyear, thought the you we then of once cheese year, of you for least in and through think, see as

Tom, to add? anything

No. Perfect.

This closing for Mitch concludes session. [Operator turn Instructions] At I questions. to any question-and-answer this no would conference over like time, we further the our remarks. Krebs back to have

point the fourth as Well, a you reporting to hey, year well. today, with quarter look that appreciate it's at period February, and our full know give to the I everyone's XXXX today. you forward on Thanks. time transaction Okay. super discussing we we'll in progress busy we SilverCrest be and good a on results update able and

So until then, have season. holiday and safe a happy

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

now disconnect. You may