CDE

Coeur Mining, Inc. 10-Q Summary: Quarter Ended June 30, 2026

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended June 30, 2026. Coeur Mining, Inc. is a diversified precious metals producer with operations in the U.S., Mexico, and Canada. The reporting period marks the first full quarter of consolidated operations following the acquisition of New Gold Inc. (completed March 20, 2026), which added the New Afton gold-copper mine and Rainy River gold-silver mine to Coeur's portfolio. The company operates seven wholly-owned mines and the Silvertip exploration project.

Key Financial Metrics

Note: Debt increased primarily due to the assumption of New Gold's senior notes and the issuance of new 2032 Senior Notes. The company maintains a $1.0 billion revolving credit facility with no outstanding draws as of June 30, 2026.

Material Changes vs. Prior Period

• Revenue Growth: Revenue increased 126% year-over-year (Q2) and 131% year-over-year (YTD), driven by the inclusion of New Gold operations (New Afton and Rainy River) and higher realized gold and silver prices.
• Production Records: Gold production reached a record 163,490 ounces in Q2 2026 (up 51% YoY). Silver production was 4.4 million ounces (flat QoQ, down 7% YoY). Copper production began contributing significantly with 11.4 million pounds sold in Q2.
• Cost Structure: Costs applicable to sales increased significantly due to the New Gold acquisition and purchase price allocation (PPA) adjustments to inventory ($140 million impact in Q2). However, realized prices declined 6% for gold and 14% for silver compared to Q1 2026.
• Capital Returns: The company initiated an inaugural dividend of $0.02 per share ($21 million total) and repurchased $110.4 million of common stock in Q2 under an expanded $750 million program.

Guidance, Outlook, and Risks

• 2026 Guidance Update: Management refined full-year 2026 guidance based on lower assumed metal prices ($4,000/oz gold, $60/oz silver) and slower ramp-up rates at New Afton and Rainy River.
  • Production: Gold: 630k–750k oz; Silver: 18.7m–21.9m oz; Copper: 40m–50m lbs.
  • Financials: Adjusted EBITDA expected at $2.3 billion; Free Cash Flow at $1.5 billion.
  • Capital Expenditures: Increased to $520–$605 million (from $437–$526 million) to include capitalized stripping and underground development.
• Outlook: Management expects record full-year financial results despite lower metal prices, driven by volume growth from the New Gold assets. The company targets a net leverage ratio of 0.0x Adjusted EBITDA.
• Risks & Contingencies:
  • Acquisition Integration: Ongoing integration of New Gold operations and finalization of purchase price allocation.
  • Legal Proceedings: Ongoing arbitration with the Mexican government regarding VAT refunds ($30.2 million principal); Wage and Hour litigation settled for $6.3 million in Q1.
  • Operational: Wharf mine crusher fire in late 2025 impacted production, though operations have resumed with contract crushing.
  • Market Risk: Exposure to fluctuations in gold, silver, and copper prices, as well as foreign exchange rates (MXN, CAD).

Investor Verification Checklist

• Acquisition Impact: Verify the finalization of the New Gold purchase price allocation (PPA) and its impact on future amortization and inventory costs.
• Production Ramp-Up: Monitor the actual production ramp-up rates at New Afton (C-Zone) and Rainy River (underground) against the updated, slightly lower guidance.
• Cost Management: Assess the sustainability of Costs Applicable to Sales (CAS) per ounce as PPA inventory impacts normalize and operational efficiencies are realized at new assets.
• Liquidity Position: Confirm the utilization of the $1.0 billion revolving credit facility and the execution of the $750 million share repurchase program.
• Legal Exposure: Track the status of the Mexican VAT arbitration and any potential impact on cash flows or tax provisions.