Coeur Mining Beats Estimates in Q3 2024 Financials: 61% Revenue Jump
Coeur Mining (NYSE: CDE) delivered a strong third quarter in 2024, reporting $0.12 in earnings per share, a turnaround from the $0.05 per share loss it reported in Q3 2023. This EPS figure also significantly exceeded analyst expectations, which were set at $0.07 per share, marking a surprise of 71.4%. This year-over-year improvement in profitability underscores the effects of higher production levels and metal prices, as well as disciplined cost control.
Revenues for Coeur surged to $313.5 million in Q3 2024, up from $194.6 million in Q3 2023, reflecting a notable 61% increase. This growth was also a 41% improvement over last quarter’s $222 million, driven largely by stronger metal prices and increased output. Average realized prices in Q3 were $2,309 per ounce for gold and $29.86 per ounce for silver, up from last year’s prices of $1,788 and $24.88, respectively, and also considerably higher than the previous quarter’s averages of $2,003 for gold and $26.20 for silver.
Adjusted costs applicable to sales per ounce of gold fell by 12% sequentially to $1,113 from $1,264 in Q2 2024, while adjusted CAS per ounce of silver dropped to $15.67 from $17.71 last quarter. Coeur allocated $25 million to exploration in Q3, compared to $18 million last quarter, indicating a robust commitment to expanding reserves but also reflecting a necessary trade-off with immediate cash preservation goals.
Adjusted EBITDA for the quarter was $126 million, a significant year-over-year improvement from $30.6 million in Q3 2023 and more than double the $52.4 million achieved in Q2 2024. This improvement aligns with increased production across its primary operations, particularly at the Rochester mine, and with Coeur’s cost management strategies, which have begun to take hold.
Coeur reported cash flow from operating activities of $111 million for the third quarter, a substantial leap from both Q2’s $15.2 million and Q3 2023’s negative $2.4 million. Free cash flow also reached $69 million, compared to negative $36 million last quarter and a significant improvement from last year’s Q3 free cash flow deficit of $114.7 million.
Debt management remains a priority for Coeur, which made a $50 million reduction in its revolving credit facility during the quarter, bringing its total debt down to $605 million from $629 million in Q2 2024. Coeur’s debt-to-EBITDA ratio fell below 2.0x for the first time in three years and liquidity has improved with $77 million in cash and a total liquidity position of $222 million.
At Rochester, Coeur reported significant operational improvements, with silver and gold production up 19% and 21% sequentially, respectively, supported by increased ore throughput from its new crushing circuit.
In early October, Coeur announced a $1.7 billion all-stock acquisition of SilverCrest Metals, a deal that adds the high-grade, low-cost Las Chispas silver mine to its portfolio. While the acquisition promises to enhance Coeur’s production base and reduce its overall cost profile, it also brings integration risks, especially given Coeur’s already substantial leverage. The transaction, expected to close in Q1 2025, will leave current Coeur shareholders owning 63% of the combined company, with SilverCrest shareholders holding the remaining 37%.
Coeur Mining last traded at $5.91 on the NYSE.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
