CDE - Earnings call 4 2023 | Coeur Mining, Inc.

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Operator

Good morning, everyone, and welcome to the Coeur Mining Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the floor over to Mitchell Krebs, President and CEO. Sir, please go ahead.

Mitchell J. Krebs

Hi, everyone. Thank you for joining our call.

note deck language SEC and our please in forward-looking filings begin, website. slide today's refer we our on cautionary statements on Before to our turning overview off team the of quarter here every Slide a represented kick nearly are over quick me. By Coeur's I'll X some with who before XXXX. metric, the with of our call to quarter on fourth strongest

XX% refined the our strong Revenues of quarter what guidance. Rochester's fourth for higher gold and EBITDA by Wharf at in was production. in of to company million will cash Wharf. be enabled the strength. it expanded the full I'm operation by expectations on of to operating doubling strongest Mick silver results and jumped reached of Free mine gold and strong These minutes. A this highest its year in year our delivered kind year of based operations provide ounces silver. at fact, which delivering over than and years. its production from for say the the at which since expanded a quarter quarter finish its flow, will spoke led production on the In cash delivered. X and This glimpse be happy late and once Rochester the end results full XX% XX% the at capable the largest a on XX,XXX on tons Rochester one of expected million over fourth Palmarejo production flow more I throughput will operating Based also of ago, million and to to the an year, XXXX. team higher rates is $XX what production. few provided a achieve driven $XX in Kensington XX per year call world's a American-produced that's consistent update levels and were reached level fourth to year, Rochester a exactly about the quarter adjusted stepped-up of largest XXXX, source largely year bounce-back

on offer purchased X Wharf's cash years. cumulative can years at summarized also And an is XXX,XXX today, upside. I topped after free production, acquired ago and now Slide Wharf is over our When XX, quick this mine earlier million the about further mark, comments resource since on Wharf, X year-end we acquisition ounces our exploration had see of we want ounces a to has flow over reserves XX. which stand of we gold week, few with XXX,XXX life you it As over of Slide Xx estimated provided remaining price. which update on $XXX reserve

in million business. the results. the critical remains $XXX the at over key differentiator in X have a this to companies exploration a roughly years It component Coeur when Our many past continues time in of investment deliver underinvested sector tremendous for

also managed and Over add at our which stand gold produced reserves, to ounces ounces gold. million now X the X we've ounces X.X years, million XXX,XXX of roughly past of to over

years million producing ounces. added past XXX reserves nearly to current the of addition silver, approaching million with now ounces ounces over For XX reserves over million we've in silver X XX our

XX%, our M&I highlights exploration In in have including a on the resources additional XX% addition by over will provide our past some X to growth, silver few respectively, providing XXXX years. and priorities. increased reserve approximately color minutes, Aoife gold and

and over to Before has last year into well only dedication call future. Mick, positioned, for led turning I for well Mick, team their company very which this over the entire the want the to not our but thank be commitment year, to to you.

Michael Routledge

The a everyone. our the to down foundation finish importance injury has contributed to I to and last sector. injury to a with Mitch, employee that for a and made safe. of in people within lost also every overall leader driving gratitude over rates take success of appreciation years contractor people. strides day our lies keeping great to few extend Coeur frequency and and safety Coeur's severity Thanks, to And clear place stress as the the my time rates, our the good want moment take year. I

everyone efforts While of I There me more and safeguard no applaud do recognize We to this we for company. sites. that improving our is track do well-being sustaining higher is absolutely those to our also that more the essential must and results, for and must on redoubling record. will we priority

range, mark gold moderate the slower guidance have $XX over million delivered flow met despite for the silver on our Turning led silver in end to operations. Despite of a to the U.S. quarter, fourth pressures production nice and and a Palmarejo. peso summary Slide our with the a X Palmarejo grades greater and due from quarter fourth a to team from to of strong cash that Guadalupe inflationary Higher of continued lower CAS a and concerted towards gold to guidance compared and been the at team ongoing year of and beginning its the brief gold year. contribution trended year. cost effort Full production challenges, highest free the these to recap finish

for with guidance anticipates consistent gold ahead, XXXX. and silver production XXXX be Looking to

crushing to to on we higher due benefits going to higher a quarter the dramatically gold meet to off for silver in greater of guidance of the silver pad. at X unit made new now fell new guidance secondary producing gold million the work CAS to production adjusted and Rochester. difference forward. of sales, inventory finished gold costs end pad kit representing ounces quarter XX,XXX strong, proceeding our expected with with production temporary year. the all the things during gold things the current X-stage with and to of Silver upscaled of leach facility. in team sign plant for This the is below out passing low the Merrill-Crowe a range Merrill-Crowe ounces helping is a year-end. Fourth sign throughput the the the backlog respectively, to ramp-up the see also quarter-over-quarter silver previous of and the new through ore new new The which come tertiary stages just fell and increases and at and X.X compared right due now focused greater as XXX% come crushing Rochester primary crushers of fourth year the is circuit quarter, Commissioning and feed of the Moving and prescreens on The completion quarter. XXX%, the

the of crusher rates the second quarter. silver expect legacy significantly progressing on commissioning, a lower quarter. Dismantling with activities track their commercial while of throughput the As result placement the low in crusher area and reach is levels we in gold end production We remain first to way. levels completed mining by of on we the now

at $X,XXX of look year $X,XXX second decline expect range silver of to than levels. we of we ramp-up, half per costs to XX% markedly Rochester's the to lower and post gold, per nearly to $XX ounce ounce unit As the a of recent $XX within

and XXXX, per we operational cost and way, $X another costs at optimize we ton per per rhythm for costs, processing ton and of Looking where half $X around G&A settle anticipate during performance. ton costs the mining both of it in $X second

to Turning Kensington.

to following a strong regain We equally an good third continue with footing fourth quarter. quarter

at to a Aoife. setting stage and we delivered Dakota cost XXXX year mine should future. Kensington expected upwardly previously anticipated. With by revised both gold production for another is highlighted, for we finished continued XXXX, the year the flexibility controls in with the call expected mine with at by good over guidance. XXXX the meaningfully to levels difficult team as briefly Mitch of production, recall typical year positioning be of development reflects beset pass life. Finishing of guidance Wharf-like previously be South production Wharf, backfill last extend had again issues, as I'll for elevated similar characterized development guidance. paste operation bounce-back Kensington's to a You'll the revised in gold drilling for higher that, look half and the But guidance achieving these aimed XXXX and a strong first the greater end the challenges. and dewatering after establishing high full

Aoife McGrath

XXXX expect digits double expansion Silvertip. of Palmarejo, Wharf, in continue at addition, inferred by successful double Kensington, focus Thanks, reserves depletion by another replacement successful good other building at pipeline for while meaningful plan resources Wharf marked Mick, Measured year knowledge. and in Kensington. indicated morning, at everyone. Rochester, enormously resources sites body exploration this and And with at more of the we our Kensington to at and priorities digits growth Rochester teams being XXXX. We in ore and resource at this. were enhancing main with the and The climbed climbed

achieving pit mine we of increase at a in growth all indication equivalent also basis. Rochester, we increased reserve XX% first in For year that This and This second to the reserves and through from indicated, a in a year the mainly XX% program time life objectives. In driven Kensington. growth multiyear in a replaced inferred, Reserve limited reserves, clear its the on mainly is and running, across exploration is the growth, which achieved drilling X% gold years. grades XX Kensington. increase a a all we've development and increased at back-to-back excellent measured increase still classes, depletion expenditures banked Lower results by is X% ever achieved redesign, recorded achieving

XX%, lead for resource and inferred silver Silvertip standard the with strong year growth and XX%, Another respectively. zinc increasing was XX% at

resource costs the Rochester, key to Tom. at $XX additions This mine rapidly support million the coming company, base grades over million drilling. $XX confident over growing reserve testing resources the XXXX release the to pipeline excludes inferred grow continually continuing along continuation on that, $XX expected at the priorities I'll to and Silvertip. The And high of pass and our infill the call million years. Across shows rapid expansion at for life-of-mine to year to Our and building next and enable the are to drilling of at of $XX few the underground and makes development the investment Palmarejo to press Wharf, higher-grade conversion this, Kensington for very is exploration over years, of increasing million system, $X us the include on for $XX scout recent with million deposit. at million opportunity extremely understanding in further exploration structures Silvertip. With

Thomas Whelan

quarter Thanks, an Aoife. of brief with financial the regarding review I fourth touching on sheet. a before balance results begin update our will important

to cash consistent on and Slide annualized an with of the complete with is XX. million, financial quarterly will look lead type second of peek sales us allocated flow quarter us, Turning pay free like run generation XXX,XXX sneak $X company XXXX the forward rate annual of would slower Rochester we the to The metal the fourth respectively. sales led capital this the driven million what of are the ramp-up a arrival sales can million to anticipated to ounces of X revenues the the Rochester basis, gave year, debt. Lower ramp-up be $XXX seasonally which and XXX% expansion all the quarter, summary of This With once of look our which and half of down EBITDA Wharf's approximately EBITDA XX% in million, first third billion level ounces adjusted of in behind and revenues $XX quarter. and quarter. On of exceeding to strong were to silver. first quarterly $XXX gold compared of production and higher and

impacted In by interest payments, quarter X/X first on semiannual addition, annual EBITDA payouts X key our is items: tax cash payments X Mexican the annually and notes. flow operating our incentive

good at There's pressures we where U.S. operations, Turning to XX. costs news are moderating. inflationary Slide our seeing on

with Mexican Mick headwinds mentioned However, as coupled likely pressure, continuing a to in months inflationary the at are peso, ahead. Palmarejo, present strong

guided for XX,XXX $X,XXX XXXX costs $X,XXX previous on of by of been XX% payments to likely only to onerous cash unit have timing gold the ounces $XXX at XXXX flow in final ounce will per Our gold, to XX,XXX quarter we approximately lower to capital at due ounce due the expenditures contractor paid where which free lead to especially POA to Palmarejo primarily quarter XX. compared gold, declined stream. Fourth the to Palmarejo, at an of Franco-Nevada

couple typical approximately with some quantum As completion at of capital their approximately the to of a At of contractors the a final major million we the paid key million bills. often in of be the XX, $XX we're XXXX, our have POA in leaving paid million end midst of is with negotiations to XXXX. on $XX the of project, expansion $XXX

extension an lenders all very would syndicate were pleased sheet. like ING We BMO, we've our through of February their a that We long-standing our strong yesterday sign to for which balance Sachs confidence and support to external confidence. from the RBC, in banks, our to announce of XXXX, revolving Turning completed of our future. facility and BAML, continued credit is thank Goldman

We addition of versus Bank syndicate X with are adjusted ratio dropped of quarter, banks. We Desjardins happy to the to of liquidity now total nearly announce third fourth EBITDA of ended to our In National the of the $XXX quarter. the million. and the strong debt X.Xx end to the net at quarter Xx light

certainty have meaningful price Rochester. Further average as While our ounce flow our the the of of revolver cash of and of ounces the during generate now nearly plan expect with ounces back begin X.X by free call and an of financial ramp-up average forward XXXX roughly extended to on driven position, ramp-up at pass our we commissioning half per price in the successful of silver we at price gold year during Mitch. the $XX.XX we Rochester company hedged half at half to of program debt ounce. I'll to the do enhancing an to XX,XXX per draw the year, first million first provide second hedged to reducing hedging during $X,XXX the forward begins the of

Mitchell J. Krebs

Thanks, Tom.

reduction. deliverables followed of significant major transition cash on Slide U.S.-based this we production; a debt period As to sustained positive see silver and growth, year: key particularly we several to XXXX a for catalysts production flow our free by look XX, converging

out, the from balance these play from production platform and results a a look company, significant investment talked heavy focused silver high-impact near-term point. investing we'll and exploration. Combined, features and delivering payoff of exploration up of drivers highly strengthening expected from questions. and flow we a about cash catalysts performance, the period to has exposure, sheet profile, differentiated on growth offer the investments upside. The go a work in and cost the value our arrived, safety last delivering all that North declining proposition industry-leading X inflection coming hard of remain further years a let's open forward by incredibly team. With it now our and X a results for consistent operations growing that, improving from these repeatedly have these American While we've by point stable represented That operations, ahead high-return, and and

Operator

to gentlemen, time, and over no [Operator I the to Instructions] showing closing turn for Ladies like floor Mitchell back questions, at would any this Krebs remarks.

Mitchell J. Krebs

reporting have best to We Okay. first when time release of May, Well, in I I you day. quarter the then, results. day know early appreciate taking and it's call. we a our Until look a speaking everyone join to luck. busy forward with our Bye. all again good

Operator

today's thank gentlemen, joining. presentation. conference We and conclude that, Ladies with call we'll you and for

may You your now lines. disconnect

Coeur Mining (CDE) 22 Feb 242023 Q4 Earnings call transcript