Coeur Mining Delivers Strong Results in 4Q22
Home > Mining > News Article

Coeur Mining Delivers Strong Results in 4Q22

Photo by:   Dion Beetson
Share it!
Fernando Mares By Fernando Mares | Journalist and Industry Analyst - Thu, 02/23/2023 - 17:58

The US-based precious metals company Coeur Mining presented its 4Q22 and 2022 yearly results. Despite challenges, the company remains optimistic as it performed in line with its forecast. It also expects a production increase once a key expansion project is completed. 

Coeur Mining registered an increase in the production of gold and silver of 5% and 4% respectively in 4Q22. The company registered a yearly production of 330,350oz of gold and 9.8Moz of silver, along the company’s consolidated production guidance ranges. 

Rochester, one of the company’s main assets in the US, registered a production of 11,589oz of gold and 973,000oz of silver, which represents quarter-over-quarter increases of 32% and 31%, respectively. The project also registered decreases in costs applicable to sales of 5% for silver and 12% for gold.  

In that same vein, Coeur’s Plan of Operations Amendment 11 (POA 11), Rochester mine’s most ambitious expansion project, is expected to be ready by 1H23. According to Coeur Mining’s data, the project registered 74% progress at the end of 2022. The project’s Stage VI leach pad is operating with the first ore placed on Feb. 1, 2023. 

The company highlighted that POA maintains on budget since it is forecasted to require between US$650 million and US$670 million. According to data from Dec. 31, 2022, over US$605 million of the estimated capital had been committed, of which US$494 million had been spent. 

Coeur Mining ended 4Q22 with a total liquidity of US$342 million, of which US$62 million was cash and US$280 million was available capacity under a US$390 million revolving credit facility. The company assured that its liquidity is further supported by its “robust” hedges that cover over 52% and 29% of 2023 estimated gold and silver production. 

Regarding taxes, the company recorded a tax benefit of over US$400,000 and expenses of over US$15 million during 4Q22, as well as US$15 million in expenses for 2022. The company paid over US$42 million in cash income and mining taxes in the past year. According to the company, cash taxes paid in 2022 are driven by its Mexican operation taxes. Coeur Mining expects to pay over US$18 million in cash taxes during 1Q23, mostly because of the annual tax filings in Mexico. 

Coeur Mining forecasts a gold production of over 370,000oz and 12Moz of silver for 2023. Mitchell Krebs, President and CEO, Coeur Mining, said this forecast is based on a potential strong 2H23 driven by the completion of the POA11 project.

Photo by:   Dion Beetson

You May Like

Most popular