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Coeur Mining's FCF Surges on Strong Output and Lower Capex
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Key Takeaways
Coeur Mining delivered about $189M in record free cash flow driven by stronger operations.
Higher gold and silver output plus improved realized prices boosted quarterly cash generation.
Capex normalization and disciplined allocation amplified the conversion of revenue to free cash flow.
Coeur Mining, Inc.’s (CDE - Free Report) defining achievement in the recent quarter was its record free cash flow (FCF) generation. The metric underscored both the company’s strengthened operational performance and its improved financial resilience. Free cash flow surged to approximately $189 million, representing nearly a 29% increase from the previous quarter and equating to roughly $2 million of cash generated per day.
This unprecedented performance was attributed to higher production volumes and improved metal prices. Gold output rose to 111,364 ounces (up 3% Q/Q), silver production increased to 4.8 million ounces (up 57% Y/Y), while realized prices climbed to $3,148 per ounce for gold and $38.93 per ounce for silver. Meanwhile, disciplined cost management enabled the stronger revenue to translate efficiently into cash.
Capex Efficiency Becomes a Key Cash Flow Driver
The normalization of capital expenditures also played a significant role in converting operational strength into tangible cash generation. In the recent quarter, capital expenditures moderated significantly as several large-scale development initiatives transitioned from construction to full operational status.
This shift was instrumental in driving a larger portion of operating cash flow to be passed through directly to free cash flow. Additionally, the company adopted a more disciplined capital allocation strategy, prioritizing essential sustaining projects while deferring non-critical or exploratory spending. Lower development drilling requirements, reduced equipment replacement cycles and improved mine sequencing further contributed to capex efficiencies.
To sum it up, Coeur has transitioned from a period of investment-heavy cash absorption to a phase where its existing assets could generate cash at scale.
Among Peers, Southern Copper Corporation (SCCO - Free Report) reported third-quarter operating cash flow of roughly $1.56 billion, up around 8.4% from a year ago. During the quarter, capital investments totaled approximately $349.2 million, leaving Southern Copper with a substantial portion of operating cash flow to be converted into free cash flow. The strong cash generation was largely enabled by healthy by-product contributions and higher metal prices, which offset the volume dip and preserved margins. The elevated free cash flow of $1.210 billion provides Southern Copper with enhanced flexibility for debt reduction, dividend payouts and reinvestment in growth projects.
Lundin Mining Corporation (LUNMF - Free Report) delivered a strong free cash flow performance, generating $168.9 million of free cash flow from operations in the third quarter of 2025, despite a headwind from working capital. This cash flow strength was underpinned by $270.3 million in cash from operations, more than tripling year over year, driven by higher gross margins from elevated copper and gold prices. The company invested $109.1 million in sustaining capital and $51.1 million in expansionary capex, enabling it to still funnel a sizable amount of operating cash into free cash flow. This free cash flow bolstered the company’s balance sheet by the quarter-end.
The Zacks Rundown for CDE
Shares of CDE have popped 142.3% year to date compared with its industry’s 21% rise.
Image Source: Zacks Investment Research
From a valuation perspective, CDE is currently trading at a 5.3 price-to-sales ratio, a premium of about 43.2% to the industry’s average of 3.7X. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CDE for fiscal 2025 earnings is pegged at 91 cents, implying year-over-year growth of 406%.
Image Source: Zacks Investment Research
The consensus estimates for fiscal 2026 have been trending lower over the past 60 days.
Image: Bigstock
Coeur Mining's FCF Surges on Strong Output and Lower Capex
Key Takeaways
Coeur Mining, Inc.’s (CDE - Free Report) defining achievement in the recent quarter was its record free cash flow (FCF) generation. The metric underscored both the company’s strengthened operational performance and its improved financial resilience. Free cash flow surged to approximately $189 million, representing nearly a 29% increase from the previous quarter and equating to roughly $2 million of cash generated per day.
This unprecedented performance was attributed to higher production volumes and improved metal prices. Gold output rose to 111,364 ounces (up 3% Q/Q), silver production increased to 4.8 million ounces (up 57% Y/Y), while realized prices climbed to $3,148 per ounce for gold and $38.93 per ounce for silver. Meanwhile, disciplined cost management enabled the stronger revenue to translate efficiently into cash.
Capex Efficiency Becomes a Key Cash Flow Driver
The normalization of capital expenditures also played a significant role in converting operational strength into tangible cash generation. In the recent quarter, capital expenditures moderated significantly as several large-scale development initiatives transitioned from construction to full operational status.
This shift was instrumental in driving a larger portion of operating cash flow to be passed through directly to free cash flow. Additionally, the company adopted a more disciplined capital allocation strategy, prioritizing essential sustaining projects while deferring non-critical or exploratory spending. Lower development drilling requirements, reduced equipment replacement cycles and improved mine sequencing further contributed to capex efficiencies.
To sum it up, Coeur has transitioned from a period of investment-heavy cash absorption to a phase where its existing assets could generate cash at scale.
Among Peers, Southern Copper Corporation (SCCO - Free Report) reported third-quarter operating cash flow of roughly $1.56 billion, up around 8.4% from a year ago. During the quarter, capital investments totaled approximately $349.2 million, leaving Southern Copper with a substantial portion of operating cash flow to be converted into free cash flow. The strong cash generation was largely enabled by healthy by-product contributions and higher metal prices, which offset the volume dip and preserved margins. The elevated free cash flow of $1.210 billion provides Southern Copper with enhanced flexibility for debt reduction, dividend payouts and reinvestment in growth projects.
Lundin Mining Corporation (LUNMF - Free Report) delivered a strong free cash flow performance, generating $168.9 million of free cash flow from operations in the third quarter of 2025, despite a headwind from working capital. This cash flow strength was underpinned by $270.3 million in cash from operations, more than tripling year over year, driven by higher gross margins from elevated copper and gold prices. The company invested $109.1 million in sustaining capital and $51.1 million in expansionary capex, enabling it to still funnel a sizable amount of operating cash into free cash flow. This free cash flow bolstered the company’s balance sheet by the quarter-end.
The Zacks Rundown for CDE
Shares of CDE have popped 142.3% year to date compared with its industry’s 21% rise.
From a valuation perspective, CDE is currently trading at a 5.3 price-to-sales ratio, a premium of about 43.2% to the industry’s average of 3.7X. It carries a Value Score of C.
The Zacks Consensus Estimate for CDE for fiscal 2025 earnings is pegged at 91 cents, implying year-over-year growth of 406%.
The consensus estimates for fiscal 2026 have been trending lower over the past 60 days.
CDE currently carries a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank here.