Coeur Mining Inc (CDE) Reports Q3 2023 Results: Revenue and Adjusted EBITDA Rise Amidst ...
Revenue increased by 10% quarter-over-quarter, reaching $195 million in Q3 2023.
Adjusted EBITDA surged by 38% from the previous quarter, demonstrating stronger gold production and cost management.
Despite a GAAP net loss, operational advancements set the stage for a robust Q4 and adherence to full-year guidance.
Significant production ramp-up at Rochester with the completion of the expansion project, positioning it as a major silver producer in the U.S.
On November 8, 2023, Coeur Mining Inc (NYSE:CDE) released its third-quarter financial results, showcasing a quarter of growth and operational advancements. The company reported a revenue of $195 million, marking a 10% increase from the previous quarter, and an adjusted EBITDA of $31 million, a substantial 38% rise. Despite these gains, Coeur Mining Inc (NYSE:CDE) experienced a GAAP net loss from continuing operations of $21 million, or $0.06 per share. Adjusted net loss from continuing operations was slightly lower at $19 million, or $0.05 per share.
Financial Highlights and Operational Performance
The third quarter saw a 15% increase in gold production and a 13% decrease in adjusted costs applicable to sales per gold ounce, contributing to the improved revenue and EBITDA. The completion of the Rochester expansion project is a pivotal moment for Coeur Mining Inc (NYSE:CDE), with the first production from the new leach pad and process plant achieved in mid-September. This has led to a material step-up in production, with October's output more than double the year-to-date monthly average for silver and more than triple for gold.
Gold production and cost guidance have been updated, with a stronger fourth quarter anticipated at Wharf expected to offset adjusted gold production guidance at Kensington. The low end of the total 2024 production guidance remains unchanged, with the overall range narrowed to 304,000 - 342,500 ounces. Silver full-year production guidance remains at 10 - 12 million ounces.
Balance Sheet and Hedging Initiatives
Coeur Mining Inc (NYSE:CDE) ended the quarter with total liquidity of approximately $280 million. The company's hedging initiatives have realized and unrealized gains totaling nearly $20 million, providing significant downside protection during this capital-intensive period.
Our overall gold production increased 15% quarter-over-quarter while costs applicable to sales per ounce of gold declined by 13%, which led to a 38% increase in adjusted EBITDA, said Mitchell J. Krebs, President and Chief Executive Officer. With the Rochester expansion complete, we are now seeing materially higher production levels, a trend that is expected to continue throughout the current quarter and into next year to help drive strong Company-wide production growth, lower costs, and a transition to positive free cash flow during 2024."
Looking Ahead
As Coeur Mining Inc (NYSE:CDE) looks to the future, the completion of the Rochester expansion and the ramp-up of operations are expected to significantly contribute to the company's growth. The focus remains on driving strong production, managing costs effectively, and transitioning to positive free cash flow in the coming year.
For a more detailed analysis of Coeur Mining Inc (NYSE:CDE)'s financial results, including income statements, balance sheets, and cash flow statements, investors and interested parties are encouraged to visit GuruFocus.com.
Coeur Mining Inc (NYSE:CDE) will host a conference call on November 9, 2023, to discuss the third-quarter 2023 financial results, providing an opportunity for investors to gain further insights into the company's performance and outlook.
Explore the complete 8-K earnings release (here) from Coeur Mining Inc for further details.
This article first appeared on GuruFocus.
