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    CDE
    Earnings call· Jun 2026(Q2 FY26)

    Coeur Mining Q2 FY26 earnings call CDE

    Aug 6, 2026 Source

    Executive summary

    Coeur Mining Q2 FY26 — Record Financials Driven by Acquisitions, Strong H2 Expected Despite Operational Adjustments

    Coeur Mining delivered record Q2 FY26 financial results, with revenue surpassing $1 billion and strong free cash flow, largely due to contributions from the newly acquired New Afton and Rainy River operations. Despite headwinds from lower metal prices and operational ramp-up adjustments at the Canadian assets, the company significantly strengthened its balance sheet and initiated capital returns. Management anticipates a strong second half, driven by increased production and cash flow, positioning for record full-year 2026 and 2027 results.

    Highlights

    5

    • Record quarterly revenue of $1.1 billion, a 27% increase quarter-over-quarter.

    • Record adjusted EBITDA of $478 million, despite a $141 million non-cash expense.

    • Record free cash flow of $388 million, an increase of 45% versus last quarter.

    • Cash balance exceeded $1 billion for the first time, doubling versus year-end 2025.

    • Initiated share repurchases of $110 million and paid the company's first dividend in 30 years ($0.02 per share).

    Concerns

    5

    • Lower realized gold and silver prices in Q2, particularly in June.

    • Lower-than-planned grades at Kensington, Rochester, and Palmarejo.

    • Slower-than-expected ramp-up of underground production rates at Rainy River, requiring $25 million in additional capital and operating costs.

    • New Afton's C-zone cave growth rate slower than anticipated, leading to revised partial year guidance.

    • Non-cash acquisition accounting impact of $140 million ($0.10 per share) on Q2 EPS and EBITDA from Rainy River stockpile inventory.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Adjusted EBITDA
    $2.3 billion
    high materiality
    High
    Full-year 2026 Free Cash Flow
    $1.5 billion
    high materiality
    High
    Rainy River Underground Production Rate
    5,000 tonnes per day by year-end
    medium materiality
    High
    New Afton Targeted Throughput
    16,000 tons per day early in the fourth quarter
    medium materiality
    High
    Silvertip Pre-Feasibility Study (PFS) Completion
    early 2027
    low materiality
    Medium
    Palmarejo Gold Production Subject to Franco-Nevada Terms
    reduce
    medium materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Rochester
    Achieved a new quarterly record for crushed tons, demonstrating improved consistency. Completed Phase 2a leach pad expansion, positioning for strong H2 silver production.
    Metric tons crushed: 6.8 million metric tonsMetric tons crushed growth QoQ: 15%Phase 2a leach pad ore placed: >4 million tons through July
    		————
    New Afton
    Integration advancing. Focus on healthy cave propagation. Revised partial year guidance due to slower cave growth and ramp-up.
    Daily mining rates Q2: ~12,000 tons per dayDaily mining rates July: 14,000 tons per dayTargeted throughput: 16,000 tons per day by early Q4
    		————
    Rainy River
    Strong production from Phase 4 open pit drove significant free cash flow. Open pit mining, processing, and underground development performed well. Revised partial year guidance due to slower underground ramp-up.
    Underground production rates Q2: ~2,300 tonnes per dayUnderground production rates July: ~3,300 tonnes per dayUnderground production rates target: 5,000 tonnes per day by year-end
    		———Free cash flow: $123 million
    Palmarejo
    Ongoing exploration success, particularly to the east. Goal to reduce production subject to stream terms in the near-term.
    Gold production subject to Franco-Nevada terms Q2: ~50%
    		————

    Operational metrics

    9
    Adjusted EBITDA
    $478 million
    Q2 FY26

    Record quarterly EBITDA despite significant non-cash expense.

    Cash Balance
    $1.1 billiondoubling vs. year-end 2025
    as of June 30, 2026

    Exceeded $1 billion for the first time in history.

    Liquidity
    over $2 billion
    as of Q2 FY26 end

    Exited Q2 with strong balance sheet.

    Share Buyback Program
    $750 million
    expanded program

    Began actively repurchasing shares in H2 Q2 under the expanded program.

    Dividend Declared
    $0.02
    Q2 FY26

    Company's first dividend in 30 years.

    Capital Lease Debt Elimination
    $39 million
    Q2 FY26

    Eliminated higher cost capital lease debt.

    Non-Cash Acquisition Accounting Impact
    $140 million
    Q2 FY26

    Impacted EPS and EBITDA. Total for Rainy River is $244 million, with $85 million in Q1 and $38 million expected in Q3.

    Non-Cash Acquisition Accounting Impact
    $20 million
    full year total

    Full year total non-cash impact from acquisition accounting.

    Cost Inflation
    —
    Q2 FY26

    Signs of cost inflation, specifically diesel costs.

    Industry KPIs

    3
    MetricValueDetails
    Unit cash cost$3,788per ounce
    Ore grade recovery drilling by depositLower-than-planned grades
    Production sales volume by metal and by mine6.8 millionmetric tons

    Capital programs

    5
    Rochester Phase 2a Leach Pad Expansioncompleted

    Benefit: over 4 million tons placed through July

    Completed during the quarter, positioning Rochester for very strong second half silver production.

    Rochester Phase 2b Leach Pad Expansionon schedule

    Benefit: additional capacity close to liner

    Well on schedule to be completed in Q4 of this year.

    Rainy River Phase 5 Capitalized Strippingunderway
    Period spend: $45 million

    Reflects a tweak to overall 2026 CapEx guidance, previously guided as an operating cost.

    Rainy River Underground Development, Equipment, and Infrastructureunderway
    Period spend: $25 million

    Benefit: assist with identified gaps in underground mining

    Expenditures to address gaps identified by Mick and his team.

    Silvertip Prefeasibility Study (PFS)underway
    Period spend: $15 million
    Start: mid-May 2026

    Additional capital for 2026 prefeasibility study and related costs, decision made in mid-May.

    Risks & headwinds

    6
    Lower realized gold and silver pricesQ2 FY26

    Lower than Q1, particularly in June

    Mitigation: Company expects significantly higher production in H2 2026 to offset impact.

    Inflationary pressuresQ2 FY26

    Specifically diesel costs

    Lower-than-planned gradesQ2 FY26

    at Kensington, Rochester, and Palmarejo

    Mitigation: Expected to rebound in the second half consistent with guidance.

    Slower rate of C-zone cave growthQ2 FY26

    since C-zone development completed in April

    Mitigation: Adjusted guidance, focusing on disciplined draw management to ensure healthy cave propagation.

    Slower-than-planned underground production ratesQ2 FY26

    due to short-term execution challenges with contractor

    Mitigation: Addressed gaps with additional capital ($25M) and operating costs ($30M), resulting in July production increase and target of 5,000 tpd by year-end.

    Non-cash impact from acquisition accountingQ2 FY26 (with $38M remaining in Q3)

    $140 million or $0.10 per share in Q2, total $244 million for Rainy River, $20 million for New Afton

    Mitigation: Impact is non-cash and expected to conclude after Q3.

    What to watch in Q3 FY26

    5

    Rainy River Underground Production Rate

    Q3 FY26
    Current3,300 tonnes per day (July)
    TargetLinear increase towards 5,000 tonnes per day

    Why it matters

    Key driver for overall production and cash flow, especially given higher underground grades.

    underground production rates jumped over 40% to approximately 3,300 tonnes per day in July, and we now expect to achieve our target of 5,000 tonnes per day by year-end

    Q&A highlights

    7

    Clarification on the revised New Afton guidance, specifically the delay in reaching 16,000 tonnes per day and if grade was a factor.

    The original plan was 16,000 tpd by end of Q2; now expected early Q4 (3 months slower). The delay is primarily timing-driven, with slight grade differential due to drawing from different cave sections to ensure healthy propagation.

    “The original plan for New Afton coming into this year was for them to be at 16,000 tonnes a day by the end of the second quarter. And I think what we're seeing now is hitting that level early in the fourth quarter. So roughly 3 months slower than what they came into the year, assuming, and so the reset in the guidance ranges there was driven more by that timing.”

    asked by Wayne Lam · answered by Mitchell J. Krebs

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Performance and Strategic Overview

    Coeur Mining achieved record Q2 FY26 financial results, with revenue exceeding $1 billion, adjusted EBITDA of $478 million, and free cash flow of $388 million. These results were significantly boosted by the first full quarter of contributions from the recently acquired New Afton and Rainy River operations. The company's cash balance doubled to over $1 billion, enabling increased exploration investment and capital returns, including $110 million in share buybacks and a $0.02 per share dividend.

    02

    Operational Updates and Challenges

    Despite strong overall performance, the quarter faced headwinds from lower metal prices, inflationary pressures, and lower-than-planned grades at Kensington, Rochester, and Palmarejo. New Afton and Rainy River experienced slower ramp-ups than initially anticipated, leading to recalibrated guidance. Specifically, New Afton's C-zone cave growth was slower, and Rainy River faced short-term execution challenges with its underground mining contractor.

    03

    Rochester's Progress and Second Half Outlook

    Rochester achieved a new quarterly record of 6.8 million metric tons crushed, a 15% increase quarter-over-quarter, demonstrating improved crusher consistency. The Phase 2a leach pad expansion was completed, with over 4 million tons placed through July, positioning Rochester for a strong second half silver production due to significant ore placed close to the liner. Phase 2b is also on schedule for Q4 completion.

    04

    Canadian Assets Integration and Optimization

    Integration efforts for New Afton and Rainy River are on schedule. At New Afton, the focus is on healthy cave propagation and disciplined draw management, with daily mining rates increasing to 14,000 tons per day in July, targeting 16,000 tons per day by early Q4. Rainy River's open pit and processing performed well, with waste stripping ahead of schedule. Underground production rates improved significantly in July, jumping 40% to 3,300 tonnes per day, targeting 5,000 tonnes per day by year-end.

    05

    Financial Strength and Capital Allocation

    The company exited Q2 with over $2 billion in liquidity. Management expects significantly higher production and free cash flow in H2 2026, leading to projected full-year 2026 EBITDA of $2.3 billion and free cash flow of $1.5 billion. Capital allocation priorities include exploration investment, organic growth projects (K-Zone, Silvertip, East Rochester), and continued opportunistic share repurchases.

    06

    Non-Cash Accounting Impact

    A significant non-cash impact of $140 million ($0.10 per share) affected Q2 EPS and EBITDA due to acquisition accounting for Rainy River's acquired stockpile inventory. This fair value uplift, totaling $244 million for Rainy River and $20 million for New Afton, is expected to largely conclude with a final $38 million impact in Q3.

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