CA - Coeur Mining Inc. (CDE) Q1 2024 Earnings Call Transcript
2024-05-02 15:41:10 ET
Coeur Mining, Inc. (CDE)
Q1 2024 Results Conference Call
May 02, 2024 11:00 AM ET
Company Participants
Mitch Krebs - President and CEO
Mick Routledge - SVP, COO
Tom Whelan - SVP, CFO
Aoife McGrath - SVP, Exploration
Conference Call Participants
Michael Dudas - Vertical Research Partners
Mike Parkin - National Bank
Kevin O'Halloran - BMO Capital Markets
Joseph Reagor - ROTH MKM
Brian MacArthur - Raymond James
Joseph Reagor - Roth MKM
Presentation
Operator
Good morning. And welcome to the Coeur Mining First Quarter 2024 Financial Results Conference Call. All participants will be in a listen-only mode [Operator Instructions]. Please also note, today's event is being recorded. I would now like to turn the conference over to Mitch Krebs, President and Chief Executive Officer. Please go ahead.
Mitch Krebs
Okay. Hello, everyone and thanks for joining our call. Before we start, I want to point out our cautionary language on forward-looking statements in today's slide deck and refer to our SEC filings on our Web site. I'll kick off with a quick overview on Slide 3 before turning the call over Mick, Tom and Aoife. Overall, we had a solid first three months of the year. Both Palmarejo and Wharf had strong quarters compared to planned, which puts the company in a great position for a successful 2024. Slide 4 does a nice job of showing where production stood after the first quarter compared to the quarter-by-quarter guidance profile we provided earlier this year. We often talk about the strategic importance of being a multi-asset company and having a balanced portfolio of operations, and the first quarter was a great example of that. Palmarejo's and Wharf's outperformance helped to offset Rochester's planned transitional quarter over to the new crusher, which began to process fresh ore on March 8th. Commercial production was achieved just three weeks later, which was a great accomplishment. But it's what has been happening underneath the hood there that leads to our excitement for the balance of 2024 and beyond. More on Rochester in a minute.
On a companywide basis, overall revenue increased 14% year-over-year, while adjusted EBITDA jumped 76%. Capital expenditures dropped off significantly during the quarter with the Rochester expansion now in the rearview mirror. We're on track to flip to positive free cash flow in the second half of the year, which will be earmarked for debt repayment. That deleveraging process can be further accelerated assuming current silver and gold prices continue, leading to a rapid and dramatic improvement in our overall financial condition and outlook. In the middle of all of these positive catalysts stands Rochester, which is routinely processing and placing over 70,000 tons of ore per day and occasionally exceeding run rate throughput levels as we put the new crushing circuit through its paces. The rapid ramp up curve is a real testament to the knowledge and operating experience the team is bringing to bear at this world class operation. Before turning the call over to Mick for some additional Rochester details, I want to touch briefly on our progress and plans at some other key initiatives that are expected to augment the near term growth we anticipate from Rochester. First up is Kensington, which is in its final full year of elevated investment aimed at extending its mine life and enhancing its operational flexibility. Positive exploration results and impressive underground development progress are pointing to the potential for a substantial mine life extension by the end of this year, which Aoife will talk more about in a few minutes....
Coeur Mining, Inc. (CDE) Q1 2024 Earnings Call Transcript