Details on underground contractor issues, prior 5,000 tpd ramp-up timeline, underground grades, and confirmation if the non-cash accounting impact will cease after Q3.

Underground challenges were tactical (trucks, personnel, infrastructure), addressed quickly, leading to a 40% jump in July production. The 5,000 tpd target is by year-end, not Q3. Underground grades are 3x higher than surface. The non-cash accounting impact is expected to conclude after Q3 with a final $38 million. “I'd say that those short-term in challenges were more in the -- kind of in the tactical realm as those throughput rates started to climb, you could see some gap start to surface in things like trucks, personnel, availability and some infrastructure-related constraints that will be covered by the CapEx increase the Tom play.”

Inquiring if higher grades later in the year will improve recovery rates and what recovery rates are assumed for the rest of 2026 in the recalibrated guidance.

Higher grades in H2, resulting from cave draw management, are expected to lead to higher gold and copper recovery rates. Recoveries are currently tracking well and meeting model expectations based on the technical report. “As those grades come up, we should see some appreciation in the recovery rates.”

Asking for internal targets for Q2 underground mining rates and the expected cadence (linear vs. parabolic) to reach 5,000 tpd by year-end.

The ramp-up from July's 3,300 tpd to 5,000 tpd by year-end is expected to be fairly linear and gradual, with 5,000 tpd being the rate achieved at year-end, not an average for Q4. “I'd say the rate of underground production between now and the end of the year is fairly linear and gradual. And that 5,000 tonne a day is not an average for the fourth quarter. It's sort of -- at the end of the year is where we plan to be.”

CDE

Coeur Mining (CDE) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Materials· Aug 6, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year 2026 Adjusted EBITDA	$2.3 billion high materiality	FY26 · 2026	High
Full-year 2026 Free Cash Flow	$1.5 billion high materiality	FY26 · 2026	High
Rainy River Underground Production Rate	5,000 tonnes per day by year-end medium materiality	Q4 FY26 · 2026	High
New Afton Targeted Throughput	16,000 tons per day early in the fourth quarter medium materiality	Q4 FY26 · 2026	High
Silvertip Pre-Feasibility Study (PFS) Completion	early 2027 low materiality	Q1 FY27 · 2027	Medium
Palmarejo Gold Production Subject to Franco-Nevada Terms	reduce medium materiality	Next 2 or 3 years	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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%	—	—	—	—

Capital programs

Rochester Phase 2a Leach Pad Expansion completed

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 Expansion on schedule

Benefit:additional capacity close to liner

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

Rainy River Phase 5 Capitalized Stripping underway

Period spend: $45 million

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

Rainy River Underground Development, Equipment, and Infrastructure underway

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

Lower realized gold and silver prices Q2 FY26

Lower than Q1, particularly in June

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

Inflationary pressures Q2 FY26

Specifically diesel costs

Lower-than-planned grades Q2 FY26

at Kensington, Rochester, and Palmarejo

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

Slower rate of C-zone cave growth Q2 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 rates Q2 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 accounting Q2 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

Rainy River Underground Production Rate

Q3 FY26

Current 3,300 tonnes per day (July)

Target Linear 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

Find out whether CDE delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.