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Coeur Q3 Earnings Call Highlights the Need for a Strong Finish
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Key Takeaways
Coeur maintains 2026 guidance despite Q3 setbacks, requiring a sharp Q4 rebound in gold and silver output.
CDE needs sequential Q4 production gains of 29% in gold and 36% in silver to meet its annual targets.
CDE generated $240M in free cash flow and repurchased $111M in shares while maintaining $1.2B in cash.
Coeur Mining, Inc. (CDE - Free Report) maintained its 2026 production guidance despite weather disruptions and equipment downtime that weighed on third-quarter output. Management expects a substantial fourth-quarter recovery across several mines to reach the low end of its annual targets.
CDE’s third-quarter adjusted earnings of $0.10 per share matched the Zacks Consensus Estimate. However, revenues of $983.62 million missed the $1,061.2 million estimate. Quarterly adjusted EBITDA totaled $448 million.
Coeur Mining, Inc. Price, Consensus and EPS Surprise
The earnings call centered on execution risks behind that forecast, progress at newly acquired Canadian operations and a capital return program supported by expanding liquidity.
CDE's Q4 Targets Face Scrutiny
Chairman, president and CEO Mitchell Krebs said Coeur continues to target approximately 630,000 gold ounces, 18.7 million silver ounces and 40 million copper pounds for 2026. These figures sit near the bottom of existing guidance ranges.
A CIBC Capital Markets analyst noted that achieving the annual target would require fourth-quarter production to rise approximately 29% for gold and 36% for silver sequentially. Krebs pointed to improvements across New Afton, Rochester, Palmarejo, Kensington and Wharf rather than reliance on any single mine.
A ROTH Capital Partners analyst questioned why management had not reduced guidance. Krebs said the company revisited its targets after earlier adjustments at the Canadian assets and remained confident in reaching the low end.
Coeur's Canadian Ramp-Ups Regain Momentum
Executive vice president and COO Michael Routledge said New Afton's conveyor failure in late August constrained ore delivery before repairs were completed in mid-September. Mining subsequently reached and sustained the targeted 16,000 tonnes per day.
At Rainy River, heavy rainfall interrupted open-pit activity and forced greater processing of lower-grade stockpiles. Underground mining rates rose to approximately 3,400 tonnes per day, with additional development intended to support sustained higher rates in 2027.
In response to a National Bank Financial analyst, Krebs said New Afton's grades were progressing as planned, with better grades expected as mining advances into eastern and southern parts of the C-Zone.
CDE Watches Rochester Recoveries and Palmarejo Grades
Routledge highlighted record quarterly crushing throughput of 6.8 million tonnes at Rochester, alongside a 39% sequential increase in gold output. Silver recovery remained slower than expected as the operation managed sulfide-bearing ore.
During questioning from CIBC Capital Markets and National Bank Financial, Routledge explained that the mine was restricting sulfide blending to protect recovery rates. Management identified Rochester's silver performance as important to meeting annual targets.
Palmarejo also faces a fourth-quarter catch-up. Rains interrupted deliveries of backfill materials and delayed access to higher-grade areas. Krebs said restored supplies and better access to the Hidalgo area should support improved grades.
Coeur Sees Accounting Relief Amid Cost Pressures
Executive vice president and CFO Thomas Whelan said a $40 million noncash inventory accounting charge affected quarterly adjusted results. He indicated the inventory-related purchase accounting impact was now substantially complete.
Whelan also flagged persistent labor, contractor and consumable inflation. Diesel prices exceeded budgeted levels by 32%, adding approximately $30 million to expected direct costs for the year, although the impact on total annual direct costs was estimated at less than 2%.
CDE Balances Buybacks With Liquidity
Whelan reported quarterly free cash flow of $240 million and cash of approximately $1.2 billion. The company repurchased $111 million of shares during the quarter, equivalent to 46% of free cash flow.
Asked by an RBC Capital Markets analyst about accelerating repurchases, Krebs said Coeur would maintain an opportunistic approach without committing to a fixed percentage of cash flow.
Whelan also expects a $70 million insurance settlement related to Wharf's 2025 fire to arrive in the fourth quarter. Cash taxes and capital spending are tracking toward the low ends of annual guidance ranges.
Coeur Keeps Its Focus on Operational Delivery
Krebs said the immediate priority is integrating recent acquisitions and improving execution rather than pursuing another major transaction. Management expects full-year adjusted EBITDA above $2 billion and free cash flow exceeding $1.3 billion at current metal prices.
The company expects full-year contributions from New Afton and Rainy River to support 2027 results, while near-term attention remains on delivering the planned fourth-quarter production increase.
The composite VGM Score of D points to less attractive combined value, growth and momentum characteristics. The Zacks Rank can change as analysts revise earnings estimates following the reported quarter.
View the Zacks #1 Rank List
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Coeur Q3 Earnings Call Highlights the Need for a Strong Finish
Key Takeaways
Coeur Mining, Inc. (CDE - Free Report) maintained its 2026 production guidance despite weather disruptions and equipment downtime that weighed on third-quarter output. Management expects a substantial fourth-quarter recovery across several mines to reach the low end of its annual targets.
CDE’s third-quarter adjusted earnings of $0.10 per share matched the Zacks Consensus Estimate. However, revenues of $983.62 million missed the $1,061.2 million estimate. Quarterly adjusted EBITDA totaled $448 million.
Coeur Mining, Inc. Price, Consensus and EPS Surprise
Coeur Mining, Inc. price-consensus-eps-surprise-chart | Coeur Mining, Inc. Quote
The earnings call centered on execution risks behind that forecast, progress at newly acquired Canadian operations and a capital return program supported by expanding liquidity.
CDE's Q4 Targets Face Scrutiny
Chairman, president and CEO Mitchell Krebs said Coeur continues to target approximately 630,000 gold ounces, 18.7 million silver ounces and 40 million copper pounds for 2026. These figures sit near the bottom of existing guidance ranges.
A CIBC Capital Markets analyst noted that achieving the annual target would require fourth-quarter production to rise approximately 29% for gold and 36% for silver sequentially. Krebs pointed to improvements across New Afton, Rochester, Palmarejo, Kensington and Wharf rather than reliance on any single mine.
A ROTH Capital Partners analyst questioned why management had not reduced guidance. Krebs said the company revisited its targets after earlier adjustments at the Canadian assets and remained confident in reaching the low end.
Coeur's Canadian Ramp-Ups Regain Momentum
Executive vice president and COO Michael Routledge said New Afton's conveyor failure in late August constrained ore delivery before repairs were completed in mid-September. Mining subsequently reached and sustained the targeted 16,000 tonnes per day.
At Rainy River, heavy rainfall interrupted open-pit activity and forced greater processing of lower-grade stockpiles. Underground mining rates rose to approximately 3,400 tonnes per day, with additional development intended to support sustained higher rates in 2027.
In response to a National Bank Financial analyst, Krebs said New Afton's grades were progressing as planned, with better grades expected as mining advances into eastern and southern parts of the C-Zone.
CDE Watches Rochester Recoveries and Palmarejo Grades
Routledge highlighted record quarterly crushing throughput of 6.8 million tonnes at Rochester, alongside a 39% sequential increase in gold output. Silver recovery remained slower than expected as the operation managed sulfide-bearing ore.
During questioning from CIBC Capital Markets and National Bank Financial, Routledge explained that the mine was restricting sulfide blending to protect recovery rates. Management identified Rochester's silver performance as important to meeting annual targets.
Palmarejo also faces a fourth-quarter catch-up. Rains interrupted deliveries of backfill materials and delayed access to higher-grade areas. Krebs said restored supplies and better access to the Hidalgo area should support improved grades.
Coeur Sees Accounting Relief Amid Cost Pressures
Executive vice president and CFO Thomas Whelan said a $40 million noncash inventory accounting charge affected quarterly adjusted results. He indicated the inventory-related purchase accounting impact was now substantially complete.
Whelan also flagged persistent labor, contractor and consumable inflation. Diesel prices exceeded budgeted levels by 32%, adding approximately $30 million to expected direct costs for the year, although the impact on total annual direct costs was estimated at less than 2%.
CDE Balances Buybacks With Liquidity
Whelan reported quarterly free cash flow of $240 million and cash of approximately $1.2 billion. The company repurchased $111 million of shares during the quarter, equivalent to 46% of free cash flow.
Asked by an RBC Capital Markets analyst about accelerating repurchases, Krebs said Coeur would maintain an opportunistic approach without committing to a fixed percentage of cash flow.
Whelan also expects a $70 million insurance settlement related to Wharf's 2025 fire to arrive in the fourth quarter. Cash taxes and capital spending are tracking toward the low ends of annual guidance ranges.
Coeur Keeps Its Focus on Operational Delivery
Krebs said the immediate priority is integrating recent acquisitions and improving execution rather than pursuing another major transaction. Management expects full-year adjusted EBITDA above $2 billion and free cash flow exceeding $1.3 billion at current metal prices.
The company expects full-year contributions from New Afton and Rainy River to support 2027 results, while near-term attention remains on delivering the planned fourth-quarter production increase.
Zacks Rank and Style Scores Frame CDE's Outlook
CDE carries a Zacks Rank #3 (Hold) at present, indicating a neutral near-term ranking. Its Growth Score of B compares favorably with its Value Score of C and Momentum Score of F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The composite VGM Score of D points to less attractive combined value, growth and momentum characteristics. The Zacks Rank can change as analysts revise earnings estimates following the reported quarter.