Categories: Wire Stories

Coeur Reports Third Quarter 2023 Results

Stronger quarter-over-quarter revenue and cost performance

Rochester expansion now complete; significant production increase now underway

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported third quarter 2023 financial results, including revenue of $195 million and cash flow from operating activities of $(2) million. The Company reported GAAP net loss from continuing operations of $21 million, or $0.06 per share. On an adjusted basis1, Coeur reported EBITDA of $31 million, cash flow from operating activities before changes in working capital of $14 million and net loss from continuing operations of $19 million, or $0.05 per share.


 

Key Highlights

  • Increased revenue and adjusted EBITDA driven by stronger gold production and lower costs – Revenue increased 10% and adjusted EBITDA increased 38% quarter-over-quarter, due to a 15% quarter-over-quarter increase in gold production and a 13% quarter-over-quarter decline in adjusted costs applicable to sales per gold ounce
  • Rochester expansion project now complete – First production from the new leach pad and process plant was achieved in mid-September. The legacy crushing circuit is now being decommissioned in preparation of mining expected to begin in that location in 2024
  • Material step-up in Rochester production now occurring – During the month of October, Rochester recovered 537,000 ounces of silver and 8,050 ounces of gold, which is more than double the year-to-date monthly average silver production and more than triple the year-to-date monthly average gold production
  • Gold production and cost guidance updated; silver guidance remains unchanged – A stronger anticipated fourth quarter at Wharf is expected to offset adjusted gold production guidance at Kensington. The low end of total 2024 production guidance remains unchanged and the overall range has narrowed to 304,000 – 342,500 ounces. Additionally, Kensington cost guidance has been revised to reflect the impact of revised production expectations. Silver full-year production guidance of 10 – 12 million ounces remains unchanged
  • Balance sheet and hedging initiatives supporting remaining capital requirements – With elevated capital investment levels related to the recently completed Rochester expansion expected through year-end, Coeur ended the quarter with total liquidity2 of approximately $280 million. Realized and unrealized gains from the Company’s 2023 gold and silver hedges total nearly $20 million at quarter-end, providing meaningful downside protection through this period of capital intensity

Our overall gold production increased 15% quarter-over-quarter while costs applicable to sales per ounce of gold declined by 13%, which led to a 38% increase in adjusted EBITDA,” said Mitchell J. Krebs, President and Chief Executive Officer. “This production growth was driven by an 87% increase at our Kensington gold operation in Alaska and a 16% increase in gold production at our Palmarejo gold-silver mine in northern Mexico. Despite slightly lower gold production from our Wharf mine and the ongoing transition to the newly expanded Rochester infrastructure, the third quarter represented a marked improvement over the prior quarter and sets up the Company to deliver a strong fourth quarter and to achieve our full-year guidance.

With the Rochester expansion complete, we are now seeing materially higher production levels, a trend that is expected to continue throughout the current quarter and into next year to help drive strong Company-wide production growth, lower costs, and a transition to positive free cash flow during 2024. Commissioning and ramp-up activities will continue over the remainder of the year and into the first half of 2024, which is expected to result in one of the world’s largest operations of its kind and become the country’s largest source of domestically produced and refined silver.”

Financial and Operating Highlights (Unaudited)

(Amounts in millions, except per share amounts, gold ounces produced & sold, and per-ounce metrics)

 

3Q 2023

 

 

2Q 2023

 

 

1Q 2023

 

 

4Q 2022

 

 

3Q 2022

 

Gold Sales

$

139.5

 

$

121.4

 

$

127.1

 

$

157.6

 

$

139.2

 

Silver Sales

$

55.1

 

$

55.9

 

$

60.2

 

$

52.5

 

$

43.8

 

Consolidated Revenue

$

194.6

 

$

177.2

 

$

187.3

 

$

210.1

 

$

183.0

 

Costs Applicable to Sales3

$

147.9

 

$

139.6

 

$

153.1

 

$

159.3

 

$

163.2

 

General and Administrative Expenses

$

9.5

 

$

9.8

 

$

12.1

 

$

10.2

 

$

9.7

 

Net Income (Loss)

$

(21.1

)

$

(32.4

)

$

(24.6

)

$

49.0

 

$

(57.4

)

Net Income (Loss) Per Share

$

(0.06

)

$

(0.10

)

$

(0.08

)

$

0.17

 

$

(0.21

)

Adjusted Net Income (Loss)1

$

(18.6

)

$

(20.2

)

$

(33.1

)

$

(17.5

)

$

(44.7

)

Adjusted Net Income (Loss)1 Per Share

$

(0.05

)

$

(0.06

)

$

(0.11

)

$

(0.06

)

$

(0.16

)

Weighted Average Shares Outstanding

 

356.7

 

 

333.1

 

 

301.0

 

 

284.5

 

 

278.1

 

EBITDA1

$

15.3

 

$

4.0

 

$

16.2

 

$

84.9

 

$

(20.5

)

Adjusted EBITDA1

$

30.6

 

$

22.2

 

$

25.1

 

$

35.9

 

$

18.3

 

Cash Flow from Operating Activities

$

(2.4

)

$

39.4

 

$

(35.0

)

$

28.5

 

$

(19.1

)

Capital Expenditures

$

112.3

 

$

85.6

 

$

74.0

 

$

113.1

 

$

96.6

 

Free Cash Flow1

$

(114.7

)

$

(46.2

)

$

(109.0

)

$

(84.5

)

$

(115.7

)

Cash, Equivalents & Short-Term Investments

$

53.2

 

$

56.8

 

$

67.0

 

$

61.5

 

$

75.4

 

Total Debt4

$

512.2

 

$

469.4

 

$

494.1

 

$

515.9

 

$

635.7

 

Average Realized Price Per Ounce – Gold

$

1,788

 

$

1,809

 

$

1,794

 

$

1,787

 

$

1,702

 

Average Realized Price Per Ounce – Silver

$

24.88

 

$

23.91

 

$

23.25

 

$

21.14

 

$

19.09

 

Gold Ounces Produced

 

78,617

 

 

68,406

 

 

69,039

 

 

87,727

 

 

83,438

 

Silver Ounces Produced

 

2.3

 

 

2.4

 

 

2.5

 

 

2.4

 

 

2.4

 

Gold Ounces Sold

 

78,015

 

 

67,090

 

 

70,866

 

 

88,189

 

 

81,782

 

Silver Ounces Sold

 

2.2

 

 

2.3

 

 

2.6

 

 

2.5

 

 

2.3

 

Adjusted CAS per AuOz1

$

1,273

 

$

1,464

 

$

1,381

 

$

1,270

 

$

1,318

 

Adjusted CAS per AgOz1

$

17.85

 

$

16.77

 

$

15.83

 

$

15.57

 

$

14.52

 

Financial Results

Third quarter 2023 revenue totaled $195 million compared to $177 million in the prior period and $183 million in the third quarter of 2022. The Company produced 78,617 and 2.3 million ounces of gold and silver, respectively, during the quarter. Metal sales for the quarter totaled 78,015 ounces of gold and 2.2 million ounces of silver. Average realized gold and silver prices for the quarter were $1,788 and $24.88 per ounce, respectively, compared to $1,809 and $23.91 per ounce in the prior period and $1,702 and $19.09 per ounce in the third quarter of 2022.

Gold and silver sales represented 72% and 28% of quarterly revenue, respectively, compared to 68% and 32% in the prior period. The Company’s U.S. operations accounted for approximately 60% of third quarter revenue compared to 59% in the second quarter of 2023.

Costs applicable to sales3 increased 6% quarter-over-quarter to $148 million, largely due to an $8 million LCM adjustment at Rochester. General and administrative expenses continued to trend lower at less than $10 million in the quarter.

Coeur invested approximately $16 million ($12 million expensed and $3 million capitalized) in exploration during the quarter, compared to roughly $5 million ($3 million expensed and $2 million capitalized) in the prior period. See the “Operations” and “Exploration” sections for additional detail on the Company’s exploration activities.

The Company recorded income tax expense of approximately $6.1 million during the third quarter. Cash income and mining taxes paid during the period totaled approximately $6.6 million. As of December 31, 2022, Companywide U.S. net operating loss carryforwards totaled approximately $535 million.

Quarterly operating cash flow totaled $(2) million compared to $39 million in the prior period, mainly driven by unfavorable changes in working capital, timing of prepayments and the semi-annual interest payments on the Company’s 2029 5.125% Senior Notes.

Capital expenditures increased 31% quarter-over-quarter to $112 million, which was due to the timing of payments relating to the Rochester expansion. Rochester expansion-related expenditures totaled $76 million during the third quarter compared to $55 million in the second quarter. Sustaining and development capital expenditures accounted for approximately $34 million and $78 million, or 31% and 69%, respectively, of Coeur’s total capital investment during the quarter.

Rochester Expansion Project Update

Construction of the new three-stage crushing circuit is now complete and first production from the new leach pad and process plant began in mid-September. Commissioning of the process plant is complete and commissioning of the new crusher corridor is underway, with ramp-up expected throughout the remainder of 2023 and into the first half of 2024.

Once operating at full capacity, throughput levels are expected to average 32 million tons per year, which is approximately 2.5 times higher than historical levels, making Rochester one of the largest open pit heap leach operations in the world. The total estimated capital for the project remains at $710 – $730 million.

Balance Sheet and Liquidity Update

Coeur ended the quarter with total liquidity of approximately $280 million, including $53 million of cash, $220 million of available capacity under its $390 million revolving credit facility (“RCF”)2, and $7 million of marketable securities.

During the third quarter, Coeur satisfied $11 million of the $25 million associated with the prepayment agreement at Kensington as well as the full $10 million prepayment agreements at both Rochester and Wharf, respectively. Additionally, the Company exercised options under amended agreements for a $13 million prepayment for deliveries of gold concentrate from Wharf as well as an $18 million prepayment for deliveries of gold and silver doré from Rochester.

Hedging Update

The Company did not execute any additional hedges during the third quarter. Coeur’s hedging strategy continues to focus on mitigating price risk during this period of capital intensity. An overview of the hedges in place is outlined below.

 

4Q 2023

Gold Ounces Hedged

55,749

Avg. Forward Price ($/oz)

$1,977

Silver Ounces Hedged

1,245,000

Avg. Forward Price ($/oz)

$25.47

Rochester LCM Adjustment

Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method. Decreases in the market price of gold and silver can affect the value of metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as impact carrying value of long-lived assets. At the end of the third quarter, the cost of ore on leach pads at Rochester exceeded its net realizable value which resulted in a lower of cost or market (“LCM”) adjustment of $9 million (approximately $8 million in costs applicable to sales2 and $1 million of amortization).

Operations

Third quarter 2023 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico

(Dollars in millions, except per ounce amounts)

 

3Q 2023

 

 

2Q 2023

 

 

1Q 2023

 

 

4Q 2022

 

 

3Q 2022

 

Tons milled

 

501,722

 

 

472,622

 

 

533,606

 

 

554,247

 

 

538,750

 

Average gold grade (oz/t)

 

0.055

 

 

0.056

 

 

0.052

 

 

0.051

 

 

0.049

 

Average silver grade (oz/t)

 

3.67

 

 

4.10

 

 

4.02

 

 

3.16

 

 

3.53

 

Average recovery rate – Au

 

97.6

%

 

87.4

%

 

90.1

%

 

92.4

%

 

93.3

%

Average recovery rate – Ag

 

86.9

%

 

83.5

%

 

81.7

%

 

85.0

%

 

84.9

%

Gold ounces produced

 

26,870

 

 

23,216

 

 

25,118

 

 

25,935

 

 

24,807

 

Silver ounces produced (000’s)

 

1,601

 

 

1,617

 

 

1,752

 

 

1,489

 

 

1,612

 

Gold ounces sold

 

26,018

 

 

22,207

 

 

25,970

 

 

25,252

 

 

24,378

 

Silver ounces sold (000’s)

 

1,534

 

 

1,561

 

 

1,795

 

 

1,490

 

 

1,554

 

Average realized price per gold ounce

$

1,499

 

$

1,589

 

$

1,564

 

$

1,509

 

$

1,447

 

Average realized price per silver ounce

$

24.96

 

$

23.98

 

$

23.23

 

$

21.10

 

$

19.01

 

Metal sales

$

77.3

 

$

72.7

 

$

82.3

 

$

69.5

 

$

64.8

 

Costs applicable to sales3

$

48.1

 

$

46.6

 

$

49.3

 

$

47.1

 

$

43.2

 

Adjusted CASper AuOz1

$

917

 

$

1,023

 

$

926

 

$

1,027

 

$

948

 

Adjusted CASper AgOz1

$

15.56

 

$

15.16

 

$

13.94

 

$

14.23

 

$

12.67

 

Exploration expense

$

2.2

 

$

1.6

 

$

1.3

 

$

1.5

 

$

1.8

 

Cash flow from operating activities

$

22.6

 

$

18.6

 

$

11.5

 

$

18.9

 

$

12.9

 

Sustaining capital expenditures (excludes capital lease payments)

$

8.4

 

$

10.7

 

$

8.6

 

$

8.1

 

$

10.8

 

Development capital expenditures

$

2.4

 

$

1.2

 

$

1.6

 

$

 

$

 

Total capital expenditures

$

10.8

 

$

11.9

 

$

10.2

 

$

8.1

 

$

10.8

 

Free cash flow1

$

11.8

 

$

6.7

 

$

1.3

 

$

10.8

 

$

2.1

 

Operational

  • Gold and silver production totaled 26,870 and 1.6 million ounces, respectively, compared to 23,216 and 1.6 million ounces in the prior period and 24,807 and 1.6 million ounces in the third quarter of 2022
  • Production benefited from higher average gold and silver recoveries as well as increased mill throughput, offset by lower average grades
  • During the third quarter, the Company completed its high compression thickener and open pit backfill project at Palmarejo under budget and ahead of schedule. The project increases tailings and waste rock storage capacity to accommodate future growth while decreasing process water requirements by nearly 20%

Financial

  • Adjusted CAS1 for gold and silver on a co-product basis decreased 10% and increased 3% quarter-over-quarter to $917 and $15.56 per ounce, respectively, driven by higher gold sales, lower silver sales and a stronger Mexican Peso
  • Capital expenditures decreased 9% quarter-over-quarter to $11 million, reflecting completion of the open pit tailings backfill project
  • Free cash flow1 totaled $12 million compared to $7 million in the prior period

Exploration

  • Exploration investment increased by 38% over the prior period to approximately $2 million (substantially all expensed)
  • The focus of exploration has transitioned from primarily mapping and sampling to more intensive drilling from four rigs during the quarter compared to one rig in the previous quarter. Two rigs in the Hidalgo – Morelos area located at the northwest extension of Independencia targeted the extension of the Libertad vein and the San Juan vein along strike and down dip. An additional drill rig in the Zapata – Guadalupe area focused on finding the intersection of structures where there is potential for a higher-grade shoot. The fourth rig focused on the Las Animas target, aimed at extending the resource along strike and down dip
  • Mapping and sampling is also continuing to the east of the current operation and outside of the area of interest relating to the Franco-Nevada gold stream. The goal of the mapping and sampling program is to build a pipeline of targets for drilling in the coming years
  • Coeur expects a total of five drill rigs to be active at Palmarejo in the fourth quarter, focused on expansion drilling at the Hidalgo, Las Animas and Zapata – Guadalupe zones

Other

  • Approximately 41% of Palmarejo’s gold sales were sold under its gold stream agreement at a price of $800 per ounce. The Company anticipates approximately 30% – 40% of Palmarejo’s gold sales for 2023 will be sold under the gold stream agreement

Guidance

  • Full-year 2023 production is expected to be 100,000 – 112,500 ounces of gold and 6.5 – 7.5 million ounces of silver
  • CAS1 in 2023 are expected to be $900 – $1,050 per gold ounce and $14.25 – $15.25 per silver ounce
  • Capital expenditures are expected to be $35 – $47 million, consisting primarily of underground development as well as development of the high compression thickener and other elements of the open pit backfill project

Rochester, Nevada

(Dollars in millions, except per ounce amounts)

 

3Q 2023

 

 

2Q 2023

 

 

1Q 2023

 

 

4Q 2022

 

 

3Q 2022

 

Ore tons placed

 

3,487,173

 

 

2,690,840

 

 

2,456,586

 

 

2,754,118

 

 

3,551,353

 

Average silver grade (oz/t)

 

0.50

 

 

0.42

 

 

0.45

 

 

0.68

 

 

0.37

 

Average gold grade (oz/t)

 

0.003

 

 

0.003

 

 

0.003

 

 

0.003

 

 

0.004

 

Silver ounces produced (000’s)

 

608

 

 

683

 

 

761

 

 

973

 

 

745

 

Gold ounces produced

 

4,459

 

 

6,314

 

 

8,155

 

 

11,589

 

 

8,761

 

Silver ounces sold (000’s)

 

606

 

 

695

 

 

770

 

 

975

 

 

733

 

Gold ounces sold

 

4,432

 

 

6,493

 

 

8,349

 

 

11,646

 

 

8,725

 

Average realized price per silver ounce

$

24.63

 

$

23.70

 

$

23.19

 

$

21.10

 

$

19.10

 

Average realized price per gold ounce

$

1,967

 

$

1,946

 

$

1,922

 

$

1,893

 

$

1,852

 

Metal sales

$

23.6

 

$

29.1

 

$

33.9

 

$

42.6

 

$

30.2

 

Costs applicable to sales3

$

30.5

 

$

26.1

 

$

42.9

 

$

44.1

 

$

50.8

 

Adjusted CASper AgOz1

$

23.64

 

$

20.39

 

$

20.24

 

$

17.60

 

$

18.46

 

Adjusted CASper AuOz1

$

1,899

 

$

1,646

 

$

1,655

 

$

1,596

 

$

1,821

 

Prepayment, working capital cash flow

$

7.5

 

$

10.0

 

$

 

$

 

$

 

Exploration expense

$

0.3

 

$

0.3

 

$

0.4

 

$

0.6

 

$

0.6

 

Cash flow from operating activities

$

(17.3

)

$

(3.8

)

$

(13.5

)

$

(5.5

)

$

(13.7

)

Sustaining capital expenditures (excludes capital lease payments)

$

7.7

 

$

5.1

 

$

4.3

 

$

3.0

 

$

5.1

 

Development capital expenditures

$

76.7

 

$

56.4

 

$

47.7

 

$

89.3

 

$

68.9

 

Total capital expenditures

$

84.4

 

$

61.5

 

$

52.0

 

$

92.3

 

$

74.0

 

Free cash flow1

$

(101.7

)

$

(65.3

)

$

(65.5

)

$

(97.8

)

$

(87.7

)

Operational

  • Silver and gold production totaled 607,735 and 4,459 ounces, respectively, compared to 682,656 and 6,314 ounces in the prior period and 744,880 and 8,761 ounces in the third quarter of 2022. Lower production quarter-over-quarter is a result of the timing of production from the new leach pad related to startup on the new process plant
  • Tons placed increased 30% quarter-over-quarter to roughly 3.5 million, roughly 80% of which were placed on the new leach pad
  • On November 1, 2023 Coeur commenced the decommissioning of the existing crushing circuit in preparation to begin mining in the area at the beginning of 2024 and to affect a smooth transition of the crusher workforce to the new crushing circuit

Financial

  • Third quarter adjusted CAS1 figures in the table above and highlighted below exclude the impact of an LCM adjustment totaling approximately $8 million related to the net realizable value of metal and leach pad inventory due to higher operating costs exceeding the lower market value of ounces under leach at Rochester
  • Adjusted CAS1 for silver and gold on a co-product basis totaled $1,899 and $23.64 per ounce, respectively, due to continued higher costs as well as lower metal sales
  • Capital expenditures increased 37% quarter-over-quarter to $84 million, reflecting timing of spending related to the Rochester expansion project
  • Free cash flow1 totaled $(102) million compared to $(65) million in the prior period

Exploration

  • Exploration investment decreased 17% quarter-over-quarter to approximately $1 million ($0.3 million expensed and $0.2 million capitalized)
  • Exploration activities focused on geologic logging, interpretation and geological modeling. A new geological model for the East Rochester pit is almost complete which clearly illustrates the controls to mineralization and places the Rochester – Nevada Packard corridor into geological context. In addition, the model has outlined compelling new exploration targets for follow-up in 2024 and beyond
  • Additionally, work continued on regional target assessment and ranking. The program will continue for the remainder of the year and systematically thereafter as geological knowledge and understanding of the district increases
  • Guidance
  • Full-year 2023 production is expected to be 3.5 – 4.5 million ounces of silver and 35,000 – 50,000 ounces of gold. Production in 2023 is expected to be second-half weighted due to timing of construction completion
  • The Company expects second half 2023 adjusted CAS1 to be similar to actual first half 2023 adjusted CAS1 as Coeur completes and ramps up the Rochester expansion
  • Capital expenditures are expected to be $290 – $310 million, which reflects Coeur’s estimate to complete the expansion project

Kensington, Alaska

(Dollars in millions, except per ounce amounts)

 

3Q 2023

 

 

2Q 2023

 

 

1Q 2023

 

 

4Q 2022

 

 

3Q 2022

 

Tons milled

 

167,950

 

 

152,907

 

 

153,337

 

 

183,410

 

 

175,246

 

Average gold grade (oz/t)

 

0.16

 

 

0.09

 

 

0.15

 

 

0.18

 

 

0.18

 

Average recovery rate

 

92.6

%

 

90.9

%

 

91.2

%

 

92.4

%

 

91.1

%

Gold ounces produced

 

24,614

 

 

13,193

 

 

20,296

 

 

30,335

 

 

28,214

 

Gold ounces sold

 

24,516

 

 

13,273

 

 

20,902

 

 

30,863

 

 

27,609

 

Average realized price per gold ounce, gross

$

1,956

 

$

1,991

 

$

1,983

 

$

1,942

 

$

1,808

 

Treatment and refining charges per gold ounce

$

60

 

$

142

 

$

63

 

$

38

 

$

33

 

Average realized price per gold ounce, net

$

1,896

 

$

1,849

 

$

1,920

 

$

1,904

 

$

1,775

 

Metal sales

$

46.5

 

$

24.6

 

$

40.2

 

$

58.8

 

$

49.1

 

Costs applicable to sales3

$

38.3

 

$

39.1

 

$

37.4

 

$

39.2

 

$

40.3

 

Adjusted CAS per AuOz1

$

1,543

 

$

2,927

 

$

1,775

 

$

1,265

 

$

1,455

 

Prepayment, working capital cash flow

$

(10.7

)

$

9.9

 

$

(9.9

)

$

9.6

 

$

(9.6

)

Exploration expense

$

2.9

 

$

2.3

 

$

1.0

 

$

2.2

 

$

2.8

 

Cash flow from operating activities

$

(4.4

)

$

(3.7

)

$

(4.8

)

$

20.8

 

$

(0.2

)

Sustaining capital expenditures (excludes capital lease payments)

$

15.8

 

$

11.7

 

$

10.7

 

$

7.7

 

$

7.1

 

Development capital expenditures

$

 

$

 

$

 

$

 

$

 

Total capital expenditures

$

15.8

 

$

11.7

 

$

10.7

 

$

7.7

 

$

7.1

 

Free cash flow1

$

(20.2

)

$

(15.4

)

$

(15.5

)

$

13.1

 

$

(7.3

)

Operational

  • Gold production totaled 24,614 ounces compared to 13,193 ounces in the prior period and 28,214 ounces in the third quarter of 2022
  • Higher production during the quarter was driven by improved access to high grade stopes as a result of the resolution of water inflow challenges and improvements in the paste backfill process

Financial

  • Adjusted CAS1 totaled $1,543 per ounce compared to $2,927 per ounce in the prior period, reflecting increased metal sales
  • Capital expenditures increased 35% quarter-over-quarter to $16 million due to increased capital development to support the ongoing multi-year exploration program aimed at extending mine life
  • Free cash flow1 totaled $(20) million compared to $(15) million in the prior period

Exploration

  • Exploration investment totaled approximately $6 million ($3 million expensed and $3 million capitalized), compared to $5 million ($2 million expensed and $3 million capitalized) in the prior period
  • Up to four underground drill rigs were focused on expansion and infill drilling at Elmira, Kensington and Johnson with one surface rig scout-drilling the Raven deposit. Drilling at both Upper and Lower Kensington is continuing to demonstrate the continuation of structures down dip and along strike
  • At Lower Kensington, some of the best grade thickness intercepts ever encountered were seen during the quarter, as highlighted in the Company’s September 12, 2023 exploration update. In addition, exploration has discovered a hanging wall splay and is starting to outline linking structures between the main vein and this splay, which presents the potential for higher-grade plunging shoots. In Upper Kensington, a new zone, Zone 30C, has been discovered that has so far been delineated over a strike length of approximately 950 feet and 800 feet down dip
  • In the fourth quarter, the Company expects to continue with infill and expansion drilling from underground in addition to continuing geological modeling to support year-end resource calculations

Guidance

  • Improved production and CAS1 trends at Kensington are expected to continue in the fourth quarter, but the Company has refined 2023 gold production and cost guidance to reflect the cumulative impact of paste backfill challenges earlier in the year
  • Full-year 2023 production is now expected to be 81,000 – 85,000 (previously 84,000 – 95,000) gold ounces
  • CAS1 in 2023 are now expected to be $1,850 – $1,950 (previously $1,650 – $1,750) per gold ounce
  • Capital expenditures are expected to be $50 – $62 million, of which approximately $28 – $34 million and $6 – $10 million is related to underground and infill drilling, respectively, as part of the multi-year exploration program

Wharf, South Dakota

(Dollars in millions, except per ounce amounts)

 

3Q 2023

 

2Q 2023

 

1Q 2023

 

4Q 2022

 

3Q 2022

Ore tons placed

 

1,254,267

 

1,041,846

 

1,156,794

 

975,994

 

1,353,071

Average gold grade (oz/t)

 

0.023

 

0.022

 

0.032

 

0.024

 

0.019

Gold ounces produced

 

22,674

 

25,683

 

15,470

 

19,868

 

21,656

Silver ounces produced (000’s)

 

69

 

88

 

21

 

9

 

13

Gold ounces sold

 

23,049

 

25,117

 

15,645

 

20,428

 

21,070

Silver ounces sold (000’s)

 

74

 

82

 

24

 

17

 

8

Average realized price per gold ounce

$

1,966

$

1,946

$

1,938

$

1,895

$

1,838

Metal sales

$

47.1

$

50.8

$

30.9

$

39.0

$

38.9

Costs applicable to sales3

$

31.0

$

27.8

$

23.5

$

28.9

$

28.9

Adjusted CAS per AuOz1

$

1,267

$

1,035

$

1,466

$

1,393

$

1,357

Prepayment, working capital cash flow

$

2.5

$

10.0

$

$

$

Exploration expense

$

$

$

$

$

Cash flow from operating activities

$

19.5

$

33.8

$

1.9

$

10.3

$

6.9

Sustaining capital expenditures (excludes capital lease payments)

$

0.6

$

0.1

$

$

0.7

$

0.3

Development capital expenditures

$

0.1

$

0.1

$

0.1

$

0.1

$

0.2

Total capital expenditures

$

0.7

$

0.2

$

0.1

$

0.8

$

0.5

Free cash flow1

$

18.8

$

33.6

$

1.8

$

9.5

$

6.4

Contacts

For Additional Information
Coeur Mining, Inc.

200 S. Wacker Drive, Suite 2100

Chicago, IL 60606

Attention: Jeff Wilhoit, Director, Investor Relations

Phone: (312) 489-5800

www.coeur.com

Read full story here

Alex

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