Coeur Mining Posts Record Quarter on New Assets, but Trims Guidance Amid Ramp-Up Challenges
The silver and gold miner reported its first $1 billion revenue quarter and record free cash flow, though underground production at newly acquired Canadian operations is ramping more slowly than expected.
Record Financial Performance Masks Operational Headwinds
Coeur Mining delivered record financial results in its second quarter, reporting revenue exceeding $1 billion for the first time in company history and generating $388 million in free cash flow, according to President and CEO Mitchell Krebs. The performance was driven primarily by the first full quarter of contributions from the recently acquired New Afton and Rainy River operations in Canada.
Quarterly adjusted EBITDA reached a record $478 million (earnings call, 2026-08-06), and the company's cash balance surpassed $1 billion for the first time. "Our Canadian assets delivered 45% of overall quarterly free cash flow or approximately $175 million despite both assets being in ramp-up mode," CFO Thomas Whelan said.
However, the results included a significant non-cash charge. The company recorded a $140 million, or $0.10 per share, impact from acquisition accounting related to Rainy River stockpile inventory (earnings call, 2026-08-06). The total acquisition accounting impact across both Canadian properties will reach $264 million for the full year.
Guidance Adjustments for Canadian Assets
Coeur recalibrated guidance ranges for New Afton and Rainy River to reflect slower-than-anticipated production ramp-ups. At New Afton, the adjustments reflect the "rate of cave growth we've seen since the C-zone development was completed in April," Krebs said (earnings call, 2026-08-06).
COO Michael Routledge explained that the company is "prioritizing healthy cave growth" and "executing disciplined cave draw management" at New Afton. Daily mining rates averaged approximately 12,000 tons per day during the quarter, though rates reached 14,000 tons per day in the last week of July. The company now expects to achieve targeted throughput of 16,000 tons per day in early Q4, versus the end of Q2 as originally planned (earnings call, 2026-08-06).
At Rainy River, underground mining rates fell short of plan due to "short-term execution challenges with the underground mining contractor," according to Routledge. After addressing these issues, underground production rates jumped from an average of 2,300 tonnes per day in Q2 to approximately 3,300 tonnes per day in July—a 40% increase. The company now expects to reach its target of 5,000 tonnes per day by year-end rather than Q3 (earnings call, 2026-08-06).
Strong Performance at Legacy Operations
Coeur's five legacy operations remained on track to deliver full-year guidance. Rochester achieved a new quarterly record of 6.8 million metric tons crushed, a 15% increase over the prior quarter, with approximately 97% running through all three stages of crushing (earnings call, 2026-08-06). The operation completed its Phase 2a leach pad expansion during the quarter.
Wharf bounced back with a strong quarter after completing repairs from a November 2025 crusher incident ahead of schedule.
Capital Allocation and Outlook
Coeur deployed approximately 45% of Q2 free cash flow through $110 million in share buybacks, payment of its first dividend in 30 years at $0.02 per share, and elimination of $39 million in capital lease debt (earnings call, 2026-08-06).
Based on revised guidance and updated pricing assumptions of $4,000 per ounce gold, $60 per ounce silver, and $6 per pound copper, Whelan said the company expects to generate 2026 EBITDA of approximately $2.3 billion and free cash flow of approximately $1.5 billion (earnings call, 2026-08-06).
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.