Coeur Mining, Inc. (CDE) Earnings & Analysis

Latest quarter

Coeur reported Q2 FY2026 revenue of $1.1 billion, below the $1.2 billion consensus. Adjusted earnings per share were $0.12, also below the $0.22 consensus.

Revenue rose from $480.7 million a year earlier, as the filing said recently acquired New Afton and Rainy River contributed for their first full quarter. Gold production rose 51% year over year to 163,490 ounces, reflecting those contributions and higher output at Wharf. Silver production was 4.4 million ounces, down 7% year over year, partly because of lower grades at Rochester and Palmarejo.

Coeur reported diluted earnings per share of $0.12, compared with $0.11 a year earlier. Gross margin fell to 49.4% from 52.3%, while operating margin declined to 19.9% from 29.1%. The filing said costs applicable to sales increased from the prior quarter, primarily because of full-quarter sales at Rainy River and New Afton and acquisition accounting for inventory. Coeur reported free cash flow of $388.2 million, up from $146.2 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Mitchell J. Krebs said the first full quarter of contributions from New Afton and Rainy River helped drive Coeur’s results. He also cited lower prices, inflation, grades below plan at three operations and the pace of ramp-ups at the two acquired mines as headwinds.

CFO Thomas S. Whelan said realized gold and silver prices fell from the first quarter, particularly in June, and that the company was seeing cost inflation, specifically in diesel. At Rainy River, he said the fair-value uplift of acquired inventory created a noncash charge that flowed through earnings and reported costs. Whelan estimated that approximately $140 million affected the second quarter and that the remaining $38 million would flow through in the third quarter.

Krebs said Rochester crushed 6.8 million metric tons during the quarter, up 15 percent from the prior quarter, and completed its Phase IIa leach pad expansion. He also said Wharf returned to more normal operations after recovering from crusher damage. At Rainy River, COO Michael Routledge said open-pit production generated $123 million in free cash flow.

On capital returns, Whelan said Coeur repurchased $110 million of shares, paid an inaugural $0.02 dividend and eliminated $39 million of higher-cost capital lease debt during the quarter. He said the company’s updated 2026 forecast, using $4 thousand per ounce of gold, $60 per ounce of silver and $6.00 per pound of copper, called for approximately $2.3 billion in EBITDA and $1.5 billion in free cash flow.

Asked about New Afton, Krebs said its targeted daily rate was now expected early in the fourth quarter rather than by the end of the second quarter. In response to a question about the accounting charge, he said it should end with the third quarter. Whelan also said third-quarter capital spending and exploration activity would be higher than in the fourth quarter.

Guidance

Coeur raised its 2026 capital expenditure guidance to $520 - $605 million from $437 - $526 million. The filing attributed the change mainly to capitalized stripping costs and spending on underground development, equipment and infrastructure at Rainy River; it also included approximately $15 million for Silvertip study work.

Krebs said Coeur recalibrated its New Afton and Rainy River guidance for its 2026 ownership period, reflecting cave growth at New Afton and a more gradual underground ramp-up at Rainy River. He said New Afton’s targeted rate of 16 thousand tons a day was expected early in the fourth quarter, rather than at the end of the second quarter.