CDE — Coeur Mining, Inc.

Summary of Coeur Mining (CDE) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Record Production: Silver production increased by 57% year-over-year, while gold production rose by 23%.
• EBITDA: Full-year EBITDA surged 200% to over $1 billion.
• Free Cash Flow: Increased to $666 million from a negative $9 million in 2024, with Q4 free cash flow at $313 million, a 66% increase.
• Net Income: Rose tenfold to a record $586 million.
• Cash Position: Year-end cash balance increased to $554 million, with total liquidity nearing $1 billion.
• Cost Management: Adjusted costs per ounce for gold and silver were $1,207 and $17.29, respectively.

2. Strategic Updates and Business Highlights

• Acquisition: The acquisition of SilverCrest and the upcoming New Gold transaction are pivotal for growth, expected to close in Q1 2026.
• Operational Performance: Las Chispas emerged as the top cash flow generator with $286 million in free cash flow. Rochester achieved record production metrics and is on track for further improvements.
• Exploration Success: Reserves grew by 10%, with significant increases at Wharf and Palmarejo. The exploration budget for 2026 is set to increase to $120-$136 million.
• Mine Life Extensions: Wharf's mine life nearly doubled to 12 years, and Palmarejo's mine life was extended by five years.

3. Forward Guidance and Outlook

• Production Guidance for 2026: Anticipates a 10% increase in silver production, with silver expected to contribute approximately 42% of total revenue.
• Capital Allocation: Plans to maintain a disciplined capital allocation framework, focusing on high-return investments and potential buybacks post-New Gold transaction.
• Exploration Focus: Continued investment in exploration is expected to drive further growth and mine life extensions.

4. Bad News, Challenges, or Points of Concern

• Operational Issues: A fire at Wharf's tertiary crusher caused damage, with repairs expected to be completed in Q2 2026, potentially impacting production.
• Tax Obligations: Anticipated cash taxes of $400-$500 million, primarily in Mexico, with a significant portion of tax obligations expected to be paid in the U.S. due to limitations on tax pools.
• Grade Normalization: Concerns regarding the grade profile at Las Chispas, with expectations of normalization potentially impacting future production metrics.

5. Notable Q&A Insights

• Reserve Grades at Las Chispas: Management acknowledged a more conservative approach to modeling grades, which may lead to a tighter fit between reserve grades and actual results moving forward.
• Exploration Opportunities: Significant potential for new resources outside the Franco-Nevada stream at Palmarejo, with a focus on developing these areas over the coming years.
• Hedging Strategy: Currently, the company plans to remain unhedged, focusing on cost management rather than implementing downside protection through puts or collars.
• Tax Pool Longevity: Current tax pools in the U.S. are expected to be depleted within 2-3 years due to increased profitability.

This summary encapsulates the key financial metrics, strategic updates, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Coeur Mining's performance and outlook.