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CDE NYSE· Coeur Mining Inc
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CDE NYSE· Coeur Mining Inc
Earnings report Q4 2023

Coeur Mining Reports Decrease in Revenue for Latest Quarter

Segments of revenue

Coeur Mining reported revenue of $821.2 million for the full year 2023. The company sold 329,968 gold ounces and 9.8 million silver ounces during the year. Gold and silver represented 73% and 27% of the company's sales revenue, respectively. The decrease in revenue was primarily due to a 6% decrease in gold ounces sold, a 4% decrease in silver ounces sold, and a 13% decrease in average realized silver prices. However, these decreases were partially offset by a 5% increase in average realized gold prices, driven by the favorable impact of realized gains from gold hedges.

Strengths

Coeur Mining achieved its full-year 2023 gold and silver production guidance, with a 29% increase in gold production and a 34% increase in silver production compared to the previous quarter. The company's strong fourth quarter performance, driven by increased production at Rochester and strong finishes at Kensington and Wharf, resulted in a significant increase in revenue and adjusted EBITDA. Coeur Mining also reported net cash provided by operating activities of $67.3 million for the full year 2023, representing an increase of $41.7 million compared to the previous year.

Challenges

Despite the overall increase in production, Coeur Mining experienced a decrease in revenue due to lower gold and silver ounces sold and a decrease in average realized silver prices. The company cited lower grades at Palmarejo, Kensington, and Wharf as the primary reason for the decrease in gold and silver ounces sold. Additionally, higher operating costs and timing of VAT collections at Palmarejo contributed to the challenges faced by the company.

Noteworthy

Coeur Mining reported a GAAP net loss of $103.6 million, or $0.30 per diluted share, for the full year 2023. On a non-GAAP adjusted basis, the company reported EBITDA of $142.3 million and a net loss of $78.0 million, or $0.23 per diluted share. The company also incurred a $9.2 million loss in connection with the tender and redemption of the 5.875% Senior Notes due 2024, which impacted its financial performance.

Summary

Coeur Mining faced challenges in the latest quarter as it experienced a decrease in revenue due to lower gold and silver ounces sold and a decrease in average realized silver prices. However, the company achieved its full-year production guidance and reported an increase in net cash provided by operating activities. Coeur Mining's strong fourth quarter performance and increased production at key assets were notable strengths. The company will need to address the challenges of lower grades and higher operating costs to improve its financial performance in the future.

Source documents

Form 10-K  filed on Feb 21, 2024
152 pages scanned

Reference data

Company financials Q4 revenue 262M
Analyst estimates Q4 EPS missed by -1,297.60%
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