CDE

Coeur Mining, Inc. 10-Q Summary: Q1 2026

Business Context and Reporting Period

This report covers the quarterly period ended March 31, 2026. Coeur Mining, Inc. is a diversified precious metals producer with operations in the U.S., Canada, and Mexico. The quarter was defined by the completion of the New Gold Inc. acquisition on March 20, 2026, which added the New Afton and Rainy River mines 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 $400 million senior notes. The company maintains a $1.0 billion revolving credit facility with no outstanding draws as of period end.

Material Changes vs. Prior Periods

• Revenue Surge: Revenue increased 138% year-over-year (YoY) and 27% quarter-over-quarter (QoQ). This was driven by a 66% increase in realized gold prices, a 159% increase in realized silver prices, and the inclusion of copper sales from the New Gold acquisition.
• Profitability: Net income rose 642% YoY. Operating income increased from $62.2 million in Q1 2025 to $349.2 million in Q1 2026.
• Acquisition Impact: The New Gold transaction contributed $134.2 million in revenue and $17.8 million in net loss (pre-tax adjustments) for the 11 days post-closing. The transaction significantly increased total assets from $4.7 billion to $15.3 billion.
• Production: Gold production increased 11% YoY to 96,503 ounces; silver production increased 18% YoY to 4.4 million ounces. Copper production began at 1.4 million pounds from New Afton.
• Costs: Costs applicable to sales increased 62% YoY, largely due to the New Gold acquisition and an $85 million purchase price allocation (PPA) charge to inventory.

Guidance, Outlook, and Management Commentary

• 2026 Guidance Reaffirmed: Management reaffirmed full-year 2026 production guidance of 680,000–815,000 gold ounces, 18.7–21.9 million silver ounces, and 50–65 million copper pounds.
• Capital Allocation: On March 23, 2026, the company announced an expanded $750 million share repurchase program and an inaugural semi-annual dividend of $0.02 per share, with the first payment expected in Q2 2026.
• Liquidity: The company entered into a new $1.0 billion senior secured revolving credit facility. Management targets a net leverage ratio of 0.0x Adjusted EBITDA.
• Operational Updates:
  • Wharf Mine: Production was impacted by a fire at the tertiary crusher; repairs are complete, and production is expected to ramp up.
  • New Afton: Filed updated technical reports including a maiden resource at the K-Zone.
  • Rainy River: Updated mine life plan extends operations to 2035.
• Risks & Contingencies:
  • Legal: Ongoing arbitration with the Mexican government regarding VAT refunds ($29.2 million principal). A wage and hour litigation settlement of $6.3 million was paid in Q1.
  • Market: Exposure to volatile metal prices and foreign exchange rates (MXN, CAD).
  • Integration: Risks associated with integrating New Gold operations and realizing anticipated synergies.

Investor Verification Checklist

• Acquisition Accounting: Verify the finalization of the New Gold purchase price allocation (PPA), specifically the $85 million inventory charge and its impact on future cost of sales.
• Wharf Recovery: Monitor Q2 and Q3 production data to confirm the return to normal crushing capacity following the Q1 fire incident.
• Debt Structure: Review the terms of the new $1.0 billion credit facility and the exchange offer details for the New Gold 2032 Senior Notes.
• Dividend Sustainability: Assess free cash flow generation against the new dividend policy and share repurchase commitments.
• Mexico Litigation: Track the status of the USMCA arbitration regarding the $29.2 million VAT receivable.