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Coeur Mining Inc (CDE) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Debt Reduction

In This Article:

  • Free Cash Flow: $85 million in the second half of 2024.

  • Debt Reduction: $80 million reduction in 2024.

  • Earnings: Nearly $90 million in 2024.

  • Adjusted EBITDA: More than doubled to $339 million for full-year 2024.

  • Gold Production: Expected to reach over 400,000 ounces in 2025, a 20% increase from 2024.

  • Silver Production: Expected to reach over 18 million ounces in 2025, a 62% increase from 2024.

  • Revenue: Exceeded $1 billion in 2024.

  • Capital Expenditures: $183 million in 2024, cut in half from the prior year.

  • Exploration Expenditures: Approximately $60 million in 2024.

  • Net Debt-to-EBITDA Ratio: Improved to 1.6 times from 3.4 times a year ago.

  • Free Cash Flow Guidance: Expected $75 million to $100 million per quarter starting Q2 2025.

  • 2025 Production Guidance: 7 million to 8.3 million ounces of silver and 60,000 to 75,000 ounces of gold.

  • Wharf Free Cash Flow: $95 million for full-year 2024, setting a new record.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Coeur Mining Inc (NYSE:CDE) reported a significant increase in free cash flow, generating $85 million in the second half of 2024.

  • The company successfully reduced its debt by $80 million, improving its financial position.

  • Coeur Mining Inc (NYSE:CDE) achieved a more than doubling of its adjusted EBITDA to $339 million for the full year 2024.

  • The Rochester expansion ramp-up was successful, contributing to increased production and free cash flow.

  • The acquisition of SilverCrest is expected to enhance Coeur Mining Inc (NYSE:CDE)'s production capabilities and financial performance in 2025.

Negative Points

  • The first quarter of 2025 is expected to be 'messy' due to several one-time outflows, including significant tax payments in Mexico.

  • Kensington's cost per ounce is projected to increase, impacting overall profitability.

  • Rochester experienced slightly lower-than-planned silver production due to larger crush sizes.

  • The company anticipates a back-half weighted production year at Rochester due to leach kinetics and weather conditions.

  • There are ongoing challenges in achieving the targeted crush size at Rochester, impacting recovery rates.

Q & A Highlights

Q: Can you provide an update on the cash and bullion status following the Las Chispas acquisition? A: Mitchell Krebs, CEO, explained that SilverCrest's balance sheet was a key factor in the acquisition, with plans to use cash and bullion to reduce debt. Thomas Whelan, CFO, added that SilverCrest had $153 million in cash and $40 million in bullion at year-end, with the cash balance closer to $100 million at closing due to various payments.