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    CDE
    Earnings call· Mar 2026(Q1 FY26)

    Coeur Mining Q1 FY26 earnings call CDE

    May 7, 2026 Source

    Executive summary

    Coeur Mining Q1 FY26 — Record Revenue and EBITDA Driven by New Acquisitions

    Coeur Mining delivered a strong first quarter, achieving record revenue and EBITDA, largely propelled by the recent New Gold acquisition and robust production increases. Despite significant one-time accounting and tax-related outflows, the company generated substantial free cash flow, bolstering its balance sheet. Management is focused on integrating the new assets, executing a large exploration program, and returning capital to shareholders through an increased buyback program and an inaugural dividend.

    Highlights

    5

    • Record quarterly revenue of $856 million, driven by 18% YoY silver production increase and 11% YoY gold production increase.

    • Record adjusted EBITDA of $475 million, nearly fourfold year-over-year.

    • Generated $267 million in free cash flow, marking the seventh consecutive quarter of positive FCF.

    • Cash and equivalents increased nearly 11-fold over the past year to $843 million.

    • Maintained position as the safest mining company among US peers for the fourth consecutive year.

    Concerns

    3

    • Over $200 million in quarter-specific and one-time items impacted free cash flow, including Mexican tax payments and incentive compensation.

    • Purchase price accounting for New Gold acquisition resulted in a non-cash $85 million impact on Cost of Sales (CAS) for the quarter, particularly at Rainy River and New Afton.

    • Diesel prices are a potential headwind, with a 10% increase potentially raising costs by $10 million, equating to a 1-2% increase in CAS per unit.

    Guidance & targets

    8
    CategoryTargetConfidence
    Gold Production
    Approximately 750,000 ounces
    high materiality
    High
    Silver Production
    Over 20 million ounces
    high materiality
    High
    Copper Production
    Nearly 60 million pounds
    high materiality
    High
    Adjusted EBITDA
    More than $3 billion
    high materiality
    High
    Free Cash Flow
    More than $2 billion
    high materiality
    High
    Share Repurchase Program
    $750 million
    high materiality
    High
    Dividend Policy
    $0.02 per share semiannually
    high materiality
    High
    New Afton Throughput
    Approaching 16,000 tonnes per day
    medium materiality
    High

    Operational metrics

    20
    Adjusted EBITDA
    $475 millionnearly fourfold year-over-year
    Q1 FY26

    Record quarterly adjusted EBITDA.

    Cash and Equivalents
    $843 millionnearly 11-fold over the past year
    Q1 FY26

    Cash balance increased by almost $300 million during the quarter, more than offsetting $272 million of net debt assumed from New Gold acquisition.

    Last 12-Month Adjusted EBITDA
    increased by over $1 billioncompared to the same point 1 year ago
    LTM Q1 FY26

    Reflects the incredible turnaround story of the balance sheet.

    Revolving Credit Facility
    $1 billion
    Q1 FY26

    Modernized and materially upsized facility.

    New Gold Net Debt Assumed
    $272 million
    Q1 FY26

    Offset by cash balance increase during the quarter.

    New Gold 2032 Bonds Novated
    Over 96%
    as of April 22

    Outstanding New Gold notes novated to become Coeur notes, providing benefits like no restrictions on capital return, additional U.S. tax shield, and lower filing/compliance costs.

    Capital Leases Repaid Early
    $45 million
    April 30

    Bulk of remaining capital leases repaid early to further reduce overall interest expense.

    Diesel Price Assumption
    $3.19 per gallon
    FY26

    Assumed in 2026 cost guidance.

    Diesel Cost as % of Total Operating Costs
    Approximately 6%
    FY26

    Highlights the company's exposure to oil price surges.

    Impact of 10% Diesel Price Increase on Costs
    $10 million
    Annual

    Quantified impact of a hypothetical diesel price increase.

    Non-Cash Impact on CAS from Purchase Price Accounting
    $85 million
    Q1 FY26

    This 'pointy-headed accounting matter' significantly impacted reported CAS but not free cash flow. Similar to Las Chispas last year.

    Gold Production Increase
    80%compared to last year
    FY26

    Expected increase driven by the two new Canadian operations.

    Silver Production Increase
    13%over last year
    FY26

    Expected increase driven by full year contribution from Las Chispas and step-up at Rochester.

    Silver Production as % of Revenue
    Over 30%
    FY26

    Based on recent prices, expected to keep Coeur in the top 5 of global silver producers.

    North America Production
    100%
    FY26

    All gold, silver, and copper production will come from North America.

    US and Canada Revenue Contribution
    About 70%
    FY26

    Geographic revenue mix.

    Rainy River Stockpile
    Approximate 2 million tonne
    Q1 FY26

    Short-term stockpile inherited, contributing to ongoing CAS impact from fair value uplift.

    Rainy River Gold in Finished Goods/Door Balances
    30,000 ounces
    End of Q1 FY26

    Inherited at acquisition, contributing to ongoing CAS impact from fair value uplift.

    New Afton Throughput (Post-Close Average)
    Around 13,000 tonnes per day
    Post-close Q1 FY26

    Average throughput since the close of the acquisition, gaining momentum towards target.

    New Afton Throughput (Early Q2)
    Around 11,000 tonnes per day
    Early Q2 FY26

    Starting throughput at the end of March and early April, with a target to approach 16,000 tonnes per day by end of Q2.

    Industry KPIs

    1
    MetricValueDetails
    SafetySafest mining company

    Deals & partnerships

    1
    New GoldAcquisition of New Gold, including New Afton and Rainy River mines.

    Transaction closed, with 11 days of contribution reflected in Q1 FY26 results. Integration is progressing smoothly.

    Risks & headwinds

    3
    Quarter-specific and one-time items impacting free cash flowQ1 FY26

    Over $200 million in Q1 FY26

    Mitigation: Management clarified that most are non-recurring beyond Q1, with some (Mexican taxes, interest on notes) recurring in specific quarters (Q1, Q3 for interest).

    Purchase price accounting impact on Cost of Sales (CAS)Q1 FY26, continuing through Q2 and Q3 FY26 for Rainy River

    $85 million non-cash impact on CAS in Q1 FY26

    Mitigation: Management emphasized this is a non-cash accounting matter that does not impact free cash flow. They are finalizing purchase price allocation and will clarify the impact with Q2 results.

    Rising diesel pricesOngoing

    10% increase in diesel prices would increase costs by approximately $10 million, equating to a 1-2% increase in CAS per unit.

    Mitigation: Diesel represents approximately 6% of total operating costs, making the impact less acute than perceived. Teams are laser-focused on monitoring costs and managing contracts.

    What to watch in Q2 FY26

    4

    Share Repurchase Program Activity

    Q2 FY26 and beyond
    CurrentNot yet utilized due to blackouts
    TargetActive execution of the $750 million program

    Why it matters

    Demonstrates commitment to returning capital to shareholders and can impact share price and valuation.

    We've been constrained with blackouts from the New Gold transaction from first quarter. Those now will lift after today. So we look forward to becoming more active here starting in the second quarter and beyond on that repurchase program.

    Q&A highlights

    5

    Clarification on the $200 million in Q1 specific and one-time items impacting free cash flow, specifically if they are non-recurring in Q2, Q3, and Q4.

    Mitch Krebs confirmed that Mexican tax payments, interest, and Rochester property tax are recurring Q1 items, while incentive payments are variable. Tom Whelan added that interest on notes occurs in Q1 and Q3, and transaction costs were one-time. The majority are Q1 specific or one-time.

    “Yes, each first quarter, you're really not going to get away from the Mexican tax payments, the interest and the Rochester property tax. The others were onetime.”

    asked by Cosmos Chiu · answered by Mitchell J. Krebs

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 Performance and New Gold Integration

    Coeur Mining reported a strong first quarter for 2026, with record revenue of $856 million and adjusted EBITDA of $475 million. These results reflect just 11 days of contribution from the newly acquired New Afton and Rainy River mines. The integration of New Gold is progressing smoothly, with teams collaborating effectively, and management anticipates a 'watershed year' for the company with full contributions from the new Canadian operations.

    02

    Balance Sheet Strength and Liquidity

    The company's balance sheet has seen significant improvement, with cash and equivalents increasing to $843 million. Last 12-month adjusted EBITDA increased by over $1 billion. The net cash position, combined with a modernized $1 billion revolving credit facility, provides strong liquidity. Multi-notch upgrades from rating agencies further validate the company's financial stability post-acquisition.

    03

    Capital Return Strategy

    Coeur announced an enhanced financial policy focused on a flexible balance sheet, reinvestment, and capital returns. This includes a $750 million share repurchase program, which will commence activity in Q2 FY26 after blackout periods. Additionally, an inaugural semiannual dividend of $0.02 per share has been approved, designed for sustainability and potential growth.

    04

    Operational Recovery and Outlook

    Operations at Rochester and Wharf, which faced issues in Q1 (maintenance at Rochester, fire at Wharf), are expected to normalize📎 and build momentum throughout the year. Wharf's crushing circuit is fully operational, and Rochester's production is anticipated to increase. The company expects to achieve its full-year guidance for gold, silver, and copper production, with New Afton's C-zone ramp-up targeting 16,000 tonnes per day by the end of Q2.

    05

    Accounting Nuances and Cost of Sales

    The first quarter's Cost of Sales (CAS) was significantly impacted by purchase price accounting for the New Gold acquisition, specifically the fair value uplift of opening inventory. This non-cash impact amounted to $85 million, causing reported CAS at New Afton and Rainy River to approach current spot prices. This effect is expected to continue through Q2 and Q3 at Rainy River due to a large inherited stockpile, but does not affect free cash flow.

    06

    Strategic Priorities and Exploration

    Key strategic priorities for the year include completing the smooth integration of New Gold, bolstering liquidity, and returning capital to shareholders. The company is also undertaking its largest exploration investment in history, with a focus on programs like the Silvertip project in British Columbia. Management is optimistic about the company's position, citing its production profile, metals mix, growth, and geographic footprint.

    AI-generated summary of the company’s earnings call. Not investment advice.