Sign in

    Coeur Mining (CDE)

    Q4 2024 Earnings Summary

    Reported on Mar 25, 2025 (After Market Close)
    Pre-Earnings Price$6.10Last close (Feb 20, 2025)
    Post-Earnings Price$6.11Open (Feb 21, 2025)
    Price Change
    $0.01(+0.16%)
    • The recent Las Chispas acquisition brings in approximately $100 million in cash and bullion, which Coeur plans to use to reduce debt quickly, accelerating deleveraging efforts.
    • Operational improvements at the Rochester mine, including progress towards achieving the target crush size of 5/8-inch, are expected to increase silver production to 7.5 million to 8 million ounces and gold production to about 70,000 ounces in 2025, with lower costs per ton, driving significant cash flow.
    • The momentum build-up in leach curves at Rochester, particularly for silver which has longer leach times, combined with operational efficiencies, is expected to result in higher production in the second half of 2025, contributing to increased cash flows.
    • The company anticipates a "messy Q1" due to high transaction costs, significant tax payments of nearly $40 million for each of its two subsidiaries, and other expenses related to the Las Chispas acquisition, which may negatively affect financial performance in the near term.
    • Operating costs at the Kensington mine are increasing, with higher labor and camp costs, increased underground development expenses, and sensitivity to ore grade fluctuations. The cost per ounce is going up a decent amount from last year, potentially impacting profitability.
    • At the Rochester mine, production was affected in Q4 due to crusher downtime and issues with crush size, leading to slightly lower silver production. There may be ongoing operational challenges in achieving target crush sizes, which could affect future production and recovery rates.
    MetricYoY ChangeReason

    Total Revenue

    +16.5% (increased from $262.09M to $305.42M)

    Total Revenue increased by 16.5% YoY driven by higher production volumes and improved realized metal prices in key segments. However, this was compounded by a major reallocation in geographic revenue, as U.S. revenue dramatically improved while Mexico revenue plummeted (–81.8% YoY), indicating a shift in operational focus compared to Q4 2023.

    Net Income

    Turnaround from –$25.51M to +$37.85M

    The recovery to a positive net income of $37.85M in Q4 2024 (from a loss of $25.51M in Q4 2023) was achieved through stronger segment performance—especially at Rochester and Kensington—and effective cost control, supported by higher realized gold and silver prices compared to the previous period.

    Rochester Revenue

    +25.6% (from $69.42M to $87.22M)

    Rochester’s revenue grew by 25.6% YoY due to increased production volumes and operational improvements such as process ramp-ups, reflecting significant enhancements over Q4 2023 performance.

    Kensington Revenue

    +33.6% (from $51.18M to $68.36M)

    Kensington’s revenue increased by 33.6% YoY, driven by higher gold production through improved grades and efficiency gains, with better realized prices supporting the revenue growth relative to Q4 2023.

    Silver Sales

    +34.6% (from $74.35M to $100.22M)

    The approximate 34.6% rise in Silver Sales is attributed to increased silver production, higher average realized silver prices, and enhanced recovery rates, marking a clear improvement over the previous period.

    U.S. Revenue

    Shift from –$64.74M to $216.39M

    The U.S. segment reversed its trend dramatically, growing from a negative revenue of –$64.74M to $216.39M due to increased metal sales volumes and significantly higher realized prices, highlighting robust operational improvements compared to Q4 2023.

    Mexico Revenue

    –81.8% (from $491.11M to $89.05M)

    Mexico revenue dropped by approximately 81.8% YoY, falling from $491.11M to $89.05M. This sharp decline suggests a strategic shift such as reduced production levels or asset divestitures in Mexico relative to the previous period.

    Operating Cash Flow

    Slight decrease (from $65.28M to $63.79M)

    Although revenue improved, operating cash flow declined slightly by about $1.49M, potentially due to higher operating expenses or differences in cash timing compared to Q4 2023, suggesting that improved top-line performance was partially offset by cost or timing challenges.

    Cash Used in Investing

    Improved (from –$86.56M to –$47.79M)

    Cash used in investing activities decreased significantly from $86.56M to $47.79M, driven by a reduction in capital expenditures and more favorable timing of outlays associated with ongoing projects compared to Q4 2023.

    Financing Activities Cash Flow

    Reversal from +$29.53M inflow to –$37.29M outflow

    The financing cash flow swung to a negative of $37.29M in Q4 2024 as the company shifted from net proceeds in Q4 2023 to net repayments and outflows, reflecting changes in drawdown and repayment activities under its credit facility.

    Cash and Cash Equivalents

    Decline (from $61.63M to $55.09M)

    Cash and cash equivalents decreased from $61.63M to $55.09M, largely due to the funds used in investing and financing activities exceeding improvements in operating cash flow, showing the net cash impact differed from the enhanced operational metrics.

    MetricPeriodPrevious GuidanceCurrent GuidanceChange

    Production Guidance – Silver

    FY 2025

    no prior guidance

    7 million to 8.3 million ounces at Rochester; 18 million ounces total, representing a 62% year-over-year increase

    no prior guidance

    Production Guidance – Gold

    FY 2025

    no prior guidance

    60,000 to 75,000 ounces at Rochester; 400,000 ounces total, representing a 20% year-over-year increase

    no prior guidance

    Free Cash Flow

    Q2 2025

    no prior guidance

    $75 million to $100 million per quarter starting in Q2 2025

    no prior guidance

    Debt Reduction

    FY 2025

    no prior guidance

    Plan to repay the $195 million revolver balance by the second half of 2025

    no prior guidance

    Exploration Investment

    FY 2025

    no prior guidance

    $85 million allocated for exploration in 2025

    no prior guidance

    Capital Expenditures

    FY 2025

    no prior guidance

    Expected normalization of sustaining CapEx spending following the Rochester expansion; includes tailings dam raise at Kensington, modifications to Rochester’s crushing system, and increased capital at Wharf

    no prior guidance

    Unit Costs

    FY 2025

    no prior guidance

    Rochester's costs per ton expected to decline: Mining costs below $2 per ton; Processing costs around $3 per ton; G&A about $1 per ton

    no prior guidance

    Revenue and EBITDA

    FY 2025

    no prior guidance

    Anticipated record levels of EBITDA, earnings, and free cash flow driven by higher production and commodity prices

    no prior guidance

    Mine Life Extensions

    FY 2025

    no prior guidance

    Focus on extending mine lives at Palmarejo and Wharf, supported by exploration success

    no prior guidance

    Las Chispas Integration

    FY 2025

    no prior guidance

    Las Chispas included for 10.5 months in 2025 guidance

    no prior guidance

    Quarterly Variability

    Q1 2025

    no prior guidance

    Q1 2025 expected to be “messy” due to one-time outflows—including $80 million in tax payments, incentive plan costs, semiannual interest payment, property tax payment, and SilverCrest transaction costs

    no prior guidance

    TopicPrevious MentionsCurrent PeriodTrend

    Rochester Mine Ramp-Up & Operational Optimization

    Consistently featured across Q1 ( , ), Q2 ( , ), and Q3 ( , ), with discussions on ramp-up progress, crusher performance, and leach curve improvements.

    Q4 detailed steady progress with improved crusher performance, significant production increases (e.g. silver up 34%, gold up 63%), and refined operational adjustments ( , , , , ).

    Positive momentum with improved operational efficiency and increased production guidance, pointing to an accelerated ramp-up into 2025.

    Debt Reduction Strategy & Financial Management

    Addressed in Q1 ( , ), Q2 ( , ), and Q3 ( , ), highlighting free cash flow generation, reducing revolving credit balances, and improving net debt ratios.

    Q4 showcased robust free cash flow (e.g. $85M in H2 2024, with Rochester contributing $12M in Q4) and aggressive debt repayment (e.g. $80M paid), further lowering net debt-to-EBITDA ( , ).

    Strengthening financial position with growing free cash flow and accelerated debt reduction, reinforcing improved financial flexibility.

    Strategic Acquisitions & Expansion

    Q1 and Q2 focused primarily on Palmarejo expansion ( , , ), while Q3 introduced plans for the SilverCrest acquisition and Las Chispas integration ( , ).

    Q4 reflected the completed Las Chispas acquisition along with expanded focus on Palmarejo and Rochester, promising reserve and production growth ( , , ).

    Shift from exploration-driven expansion to high-impact, completed acquisitions that are expected to fuel long-term growth.

    Operational Challenges & Cost Management

    In Q1, challenges were noted during the transitional ramp-up ( , ); Q2 addressed production downtime at Rochester and higher capital guidance at Kensington ( , ); Q3 referenced improved cash flow from Kensington operations ( ).

    Q4 provided specific details on cost increases at Kensington (e.g. higher labor, maintenance, and grade sensitivity) and managed planned downtime at Rochester for maintenance ( ).

    Ongoing challenges are being actively managed through proactive measures, maintaining operational continuity and cost optimization.

    Regulatory & Transactional Uncertainties

    Mentioned in Q3 in relation to the SilverCrest acquisition (shareholder votes and Mexican approvals) ( ).

    Not mentioned in Q4.

    No current mention, suggesting that these uncertainties may have been resolved or deprioritized following earlier discussions.

    Commodity Price Volatility & Hedging Exposure

    Q1 discussed the hedging roll-off and expressed optimism about the commodity price environment ( , ).

    No specific discussion in Q4.

    Reduced focus indicates a confident view in the current commodity pricing environment and less immediate concern over hedging exposure.

    Liquidity & Prepayment Dependency Concerns

    Detailed in Q1 ( ) and Q3 ( ), focusing on managing revolving credit usage and short-term liquidity via prepaid gold sales agreements.

    Not addressed in Q4.

    Emphasis diminished as liquidity improves and free cash flow strengthens, reducing dependency on prepayment mechanisms.

    1. Rochester Production and Costs
      Q: Are recovery rates and cost targets on track at Rochester?
      A: Yes, recovery rates at Rochester are tracking expectations for the material sizes we're placing on the leach pad. We anticipate 2025 production of 7.5–8 million ounces of silver and around 70,000 ounces of gold. Our cost targets remain on track, aiming for mining costs under $2 per ton, processing costs at $3 per ton, and G&A around $1 per ton. This positions Rochester to drive significant cash flow in 2025, especially with current metal prices.

    2. Crush Size Progress at Rochester
      Q: Is the crush size issue at Rochester resolved?
      A: We've made substantial progress toward our 5/8-inch crush size goal, with about 70% of material in 2024 achieving this size fraction. Recent tests show that with the right ore blend and optimized crusher settings, we can exceed this target. While some work remains to reach 80%, we're confident in optimizing our operations through improved blasting practices and crusher tuning.

    3. Back-Loaded Production at Rochester
      Q: Why is Rochester's 2025 outlook back-end weighted?
      A: The momentum of silver leach curves means residual ounces build up over time, leading to increased production in the latter half of 2025. Adverse weather in Q1 can slow loading rates, but as we consistently feed better-sized material to the heap leach pad, production is expected to ramp up throughout the year.

    4. Direct-to-Pad Material Benefits
      Q: How does direct-to-pad material affect Rochester?
      A: Incorporating 5–6 million tons of direct-to-pad (DTP) material allows us to exceed the crusher's permit limit of 32 million tons without violating regulations. DTP material is profitable and, despite its larger size fraction slightly impacting recovery, it adds value without counting against our crushing limits.

    5. Kensington Higher Costs
      Q: Why are costs per ounce rising at Kensington?
      A: Higher costs at Kensington stem from increased labor and camp expenses due to more personnel and expanded underground development. The operation is sensitive to grade fluctuations; costs escalate at grades around 0.14, while higher grades like 0.16 improve cost efficiency. Scheduled maintenance, including power plant overhauls, also contributed to the increased expenses.

    6. Las Chispas Acquisition Cash
      Q: What was the cash and bullion from Las Chispas at closing?
      A: The Las Chispas acquisition added approximately $100 million in cash and bullion at closing. This bolsters our balance sheet and supports rapid debt reduction, even as we anticipate a messy first quarter due to transaction costs and substantial tax bills of nearly $40 million for each subsidiary.

    Research analysts covering Coeur Mining.