Coeur D’alene Mines ((CDE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Coeur D’alene Mines’ recent earnings call painted a picture of robust financial health and operational efficiency, though not without its challenges. The company celebrated strong financial performance, marked by increased production and effective cost management, leading to significant cash flow and debt reduction achievements. However, concerns were raised regarding Rochester’s operational setbacks and the anticipation of higher tax liabilities.
Record Cash Balance and Financial Position
Coeur D’alene Mines is on track to end the year with a cash balance exceeding $500 million, positioning the company in a solid net cash position as it moves towards 2026. The company has successfully driven net debt below $100 million and is on course to achieve a net debt to EBITDA ratio of zero by the fourth quarter of 2025.
Strong Production and Cost Management
The company reported impressive production figures, with over 111,000 ounces of gold and 4.8 million ounces of silver. The adjusted cash cost per ounce for gold and silver showed a positive trend compared to the third quarter of 2024, standing at $1,215 per ounce and $14.95 per ounce, respectively.
Las Chispas and Palmarejo Performance
Las Chispas operation reported a substantial 34% increase in free cash flow, totaling $66 million. Meanwhile, Palmarejo delivered $47 million in free cash flow, with recoveries and mill throughput reaching their highest levels in six quarters.
Lowered Cost Guidance
The company has lowered its cost guidance at three out of five mines, a reflection of improved cost management and conservative inflation estimates, which bodes well for future financial performance.
Rochester Downtime and Production Setbacks
Rochester faced unplanned downtime due to conveyor belt issues, resulting in a decrease in tons crushed compared to the previous quarter. This downtime has affected the production guidance for 2025, with some production being deferred to 2026.
Tax Rate Changes
Looking ahead, the company anticipates a higher effective tax rate starting next year, with a federal rate of 21% and additional state rates contributing approximately 3%.
Forward-Looking Guidance
Coeur D’alene Mines provided an optimistic guidance outlook during the earnings call, highlighting record-breaking results for the second consecutive quarter. The company projects a cash balance exceeding $500 million by year-end, with full-year EBITDA expected to surpass $1 billion and free cash flow to exceed $550 million. Adjustments in production guidance reflect a minor increase in gold production and a slight decrease in silver production. The company aims for a record-setting year in 2026, supported by strong financial and operational performance.
In conclusion, Coeur D’alene Mines’ earnings call underscored a strong financial and operational position, despite some challenges. The company’s effective cost management and strategic financial positioning are poised to support continued growth, with an optimistic outlook for the coming years.