CHICAGO–(BUSINESS WIRE)– Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) today reported first quarter 2017 financial results, achieving $206.1 million of revenue, which represented increases of 29% quarter-over-quarter and 39% year-over-year. Net income during the first quarter was $18.7 million, or $0.10 per share, and adjusted net income1 was $7.0 million, or $0.04 per share.
Quarterly cash flow from operating activities was $55.3 million, increases of $29.8 million quarter-over-quarter and $48.7 million year-over-year. First quarter adjusted EBITDA1 totaled $56.6 million, representing a 29% increase quarter-over-quarter and a 51% increase year-over-year. Last twelve month (LTM) adjusted EBITDA1 was $235.4 million, representing increases of 9% quarter-over-quarter and 71% year-over-year. Free cash flow1 increased $35.8 million quarter-over-quarter and $56.0 million year-over-year to $31.3 million.
Balance sheet improvements since the beginning of 2016 resulted in a $7.5 million, or 68%, year-over-year decline in quarterly interest expense. Combined with higher LTM adjusted EBITDA1, the Company’s significant debt reductions resulted in total and net debt-to-LTM adjusted EBITDA1 ratios of 0.9x and 0.04x, respectively, compared to 3.7x and 2.5x a year earlier.
First Quarter Highlights
- Silver and gold production were 3.9 million ounces and 88,218 ounces, respectively, or 9.2 million silver equivalent ounces (AgEqOz)1, representing a decline of 8% quarter-over-quarter and an increase of 14% year-over-year
- Sales of 4.5 million ounces of silver and 110,874 ounces of gold, or 11.1 million AgEqOz1, increased 29% quarter-over-quarter and 34% year-over-year
- Companywide all-in sustaining costs (AISC) and adjusted AISC per average spot AgEqOz1 were $13.65 and $13.66, respectively, both declining 6% quarter-over-quarter. On a 60:1 price equivalence basis, companywide AISC and adjusted AISC per AgEqOz1 were $15.01 and $15.02, both representing quarter-over-quarter decreases of 7%
- Primary silver operations delivered costs applicable to sales (CAS) and adjusted CAS per average spot AgEqOz1 of $10.64 and $10.63, respectively, representing quarter-over-quarter decreases of 7% and 6%
- For primary gold operations, CAS and adjusted CAS per gold equivalent ounce (AuEqOz)1 were $788 and $791, respectively, representing 17% increases compared to the prior quarter
- Cash and equivalents totaled $210.0 million at March 31, 2017, an increase of nearly $50 million compared to year-end
- The Company completed the sale of the Joaquin project for consideration of $27.4 million, realizing a gain of $21.1 million; Coeur also retained a 2.0% NSR royalty on the Joaquin project
- Quarterly expensed exploration tripled year-over-year to $5.3 million primarily due to expanded drilling activities at Palmarejo and Kensington and the near-completion of a 25,000 meter drill program at La Preciosa to support a revised Preliminary Economic Assessment (PEA) expected later this year