Coeur Mining Q2 Earnings Call Highlights

Coeur Mining NYSE: CDE reported record second-quarter financial results, supported by the first full quarter of contributions from its recently acquired New Afton and Rainy River operations. The company said quarterly revenue exceeded $1 billion for the first time, while adjusted EBITDA and free cash flow also reached quarterly records. The company generated $1.1 billion in revenue, up 27% from the prior quarter, adjusted EBITDA of $478 million and free cash flow of $388 million. Chief Financial Officer Tom Whelan said free cash flow increased 45% sequentially, with the Canadian assets contributing approximately $175 million, or 45% of the quarterly total, despite both being in ramp-up mode. Coeur ended June with $1.1 billion in cash, double its balance at the end of 2025, and more than $2 billion in liquidity. During the quarter, the company repurchased $110 million of shares, paid its inaugural $0.02-per-share dividend and eliminated $39 million of higher-cost capital lease debt. The quarter included a $141 million non-cash expense associated with the fair-value uplift of acquired short-term inventory at Rainy River. Whelan said the accounting treatment is required under U.S. GAAP and affects EBITDA, net income and costs applicable to sales, or CAS. Coeur expects another $38 million to flow through results in the third quarter as it depletes the remaining acquired Rainy River stockpile. The company said the full-year inventory-related accounting impact is expected to total $244 million at Rainy River and $20 million at New Afton. While results benefited from the Canadian acquisitions, Coeur cited lower realized gold and silver prices, diesel-cost inflation, lower-than-planned grades at Kensington, Rochester and Palmarejo, and the pace of ramp-ups at New Afton and Rainy River as headwinds during the quarter. At Rochester in Nevada, the company crushed a quarterly record 6.8 million metric tonnes, up 15% from the prior quarter. Executive Vice President and Chief Operating Officer Mick Routledge said approximately 97% of the material moved through all three crushing stages, reflecting improving efficiency and consistency in the crushing circuit. Rochester also completed the Phase 2A expansion of Leach Pad 6. More than 4 million tonnes of ore had been placed on the new liner through July, according to Routledge. Coeur expects the ore placed close to liner, combined with higher planned grades and more consistent crushing, to support a strong second half f...