Coeur Mining, Inc. Q1 FY2026 earnings call

Highlights: Strong first quarter despite being softest quarter, record results with New Afton and Rainy River contributions. 2026 expected to be watershed year with full contributions from New Afton, Rainy River, rising production from Rochester, rebound at Wharf. Balance sheet strengthened with cash and equivalents at $843 million. Integration of New Gold going well. Corporate update on financial policy, share repurchase, and dividend. 2025 responsibility report published. Key strategic priorities: Safety, completing New Gold integration, bolstering liquidity, returning capital, exploration like Silvertip project.

First quarter silver and gold production increased 1,811% year-over-year, respectively, driving quarterly revenue to $856 million. EBITDA increased 12% versus the fourth quarter and nearly fourfold year-over-year to a record $475 million. Free cash flow was $267 million. For 2026, expecting to produce approximately 750,000 ounces of gold, over 20 million ounces of silver, and nearly 60 million pounds of copper. Gold production expected to be 80% increase compared to last year, silver production about 13% increase, with silver production representing over 30% of revenue. 100% of 2026 gold, silver, and copper production from North America, about 70% of revenues from U.S. and Canada.

2026 guidance reaffirmed: midpoint of ranges expects ~750,000 ounces gold, over 20 million ounces silver, nearly 60 million pounds copper. Full contributions from New Afton and Rainy River, rising production from Rochester, rebound at Wharf. Board-authorized capital return strategy includes $750 million buyback and $0.02 per share semiannual dividend.

No specific risks detailed in the provided transcript but mentions monitoring of diesel prices which could impact costs, and accounting nuances related to inventory fair value uplift which may have non-cash impacts.

Q: Elaborate on Q1-specific free cash flow items; A: Mexican taxes, interest, Rochester property tax, incentive payment were Q1-specific, some nonrecurring.

Q: On capital return program; A: Look forward to enacting repurchase program after blackouts lift.

Q: On purchase price accounting to inventory; A: New Afton's CAS impact from inventory flushed, Rainy River has stockpile and WIP included in guidance.

Q: On operations at Rochester and Wharf; A: Issues behind, expected normalized levels in remaining quarters.

Q: On balance sheet deferred income tax; A: Driven by accounting rules from New Gold acquisition, liability reverses over time.

Q: On New Gold assets, Rainy River grade and New Afton ramp-up; A: Rainy River grade lower at start but increasing, New Afton ramping up to target throughput.

Q: On accounting and stockpile at Rainy River; A: Guidance includes monetization of stockpile.

Q: On diesel exposure and Rochester maintenance; A: Rochester has big maintenance shutdown in Q4, monitoring diesel costs.

Q: On labor costs; A: General mining turnover normal, not too much pressure felt.