Earnings Miss. Coeur reported an adjusted third quarter loss of $2.6 million, or ($0.01) per share, compared to adjusted net income of $38.2 million, or $0.16 per share, during the prior year period. Adjusted EBITDA was $48.8 million and free cash flow amounted to ($49.4) million. We had forecast net income of $16.5 million, or $0.06 per share, and EBITDA of $60.1 million. Variances to our estimates included modestly lower revenue due to production and sales below our estimate, and higher costs applicable to sales. On a GAAP-basis, the company reported a loss of $54.8 million, or $(0.21) per share, which included a lot of items rightfully excluded.Updating estimates. We are lowering our 2021 EPS and EBITDA estimates to $0.10 and $223.0 million, respectively, from $0.18 and $237.1 million. The revisions reflect 3Q results and lower operating margin. We have also trimmed our 2022 EPS and EBITDA estimates to $0.32 and $267.4 million from $0.35 and $279.2 million, respectively.Project commentary. Cost inflation is impacting development of the Rochester expansion and the company expects total construction costs to be 10% to 15% higher than the original estimate. Management is also rethinking the timing and scope of the expansion and restart of Silvertip. The near-term focus remains Rochester and Silvertip will follow. The company announced a definitive agreement to sell its La Preciosa project for fixed proceeds of $34.7 million and contingent consideration of up to $58.8 million.Rating is Market Perform. The shares were down following the earnings announcement. Coeur is not expected to extend the support agreement associated with its investment in Victoria Gold which expires October 31, and so it seems less likely that Coeur will seek to increase its ownership. At the present time, we think a Market Perform rating is appropriate based on Coeur's valuation and near-term outlook. Read More >>