Coeur Mining (NYSE:CDE) reported record second-quarter financial results, supported by the first full quarter of contributions from its recently acquired New Afton and Rainy River operations. The company said quarterly revenue exceeded $1 billion for the first time, while adjusted EBITDA and free cash flow also reached quarterly records.
The company generated $1.1 billion in revenue, up 27% from the prior quarter, adjusted EBITDA of $478 million and free cash flow of $388 million. Chief Financial Officer Tom Whelan said free cash flow increased 45% sequentially, with the Canadian assets contributing approximately $175 million, or 45% of the quarterly total, despite both being in ramp-up mode.
Acquisition Accounting Weighed on Reported Results
The quarter included a $141 million non-cash expense associated with the fair-value uplift of acquired short-term inventory at Rainy River. Whelan said the accounting treatment is required under U.S. GAAP and affects EBITDA, net income and costs applicable to sales, or CAS.
The non-cash impact totaled about $140 million, or $0.10 per share, in the second quarter. Coeur expects another $38 million to flow through results in the third quarter as it depletes the remaining acquired Rainy River stockpile. The company said the full-year inventory-related accounting impact is expected to total $244 million at Rainy River and $20 million at New Afton.
While results benefited from the Canadian acquisitions, Coeur cited lower realized gold and silver prices, diesel-cost inflation, lower-than-planned grades at Kensington, Rochester and Palmarejo, and the pace of ramp-ups at New Afton and Rainy River as headwinds during the quarter.
Rochester and Wharf Operations Progress
At Rochester in Nevada, the company crushed a quarterly record 6.8 million metric tonnes, up 15% from the prior quarter. Executive Vice President and Chief Operating Officer Mick Routledge said approximately 97% of the material moved through all three crushing stages, reflecting improving efficiency and consistency in the crushing circuit.
Rochester also completed the Phase 2A expansion of Leach Pad 6. More than 4 million tonnes of ore had been placed on the new liner through July, according to Routledge. Coeur expects the ore placed close to liner, combined with higher planned grades and more consistent crushing, to support a strong second half for silver production. Phase 2B of the leach pad expansion remains on schedule for completion in the fourth quarter.
At Wharf, the company completed crusher repairs following a fire last November ahead of schedule. Contract crushing units supported pad-placement rates until the repaired crusher returned to full capacity in May. Contract crushing has now been demobilized and normal operations have resumed.
New Afton and Rainy River Guidance Reset
Coeur revised its partial-year 2026 guidance for New Afton and Rainy River, reflecting a more measured ramp-up at both operations. At New Afton, daily mining rates averaged about 12,000 tonnes during the second quarter and reached 14,000 tonnes per day during the final week of July.
The company now expects to reach its 16,000-tonne-per-day throughput target early in the fourth quarter, about three months later than the original plan to reach that level by the end of the second quarter. Routledge said the decision reflects disciplined cave-draw management intended to support the long-term health and productivity of the C-Zone cave.
Coeur has been drawing more tonnage from western and northern portions of the cave while limiting draw from the higher-grade eastern area. Management said grades and recoveries should improve as production expands into other parts of the C-Zone later in the year.
At Rainy River, second-quarter free cash flow reached $123 million, which Routledge described as the highest free cash flow generated by any mine in the company’s history. The operation maintained mill throughput using stockpiled material while Phase 5 open-pit waste stripping remained ahead of schedule.
Underground mining rates, however, averaged 2,300 tonnes per day in the second quarter, below plan due to short-term execution challenges involving the mining contractor and constraints related to trucks, personnel, equipment and infrastructure. After Coeur assumed greater control of the operation and addressed those gaps, July underground rates rose more than 40% to approximately 3,300 tonnes per day.
The company now expects to reach 5,000 tonnes per day by year-end, rather than during the third quarter as assumed in the prior New Gold budget. Coeur expects to spend an additional $25 million on underground development, equipment and infrastructure at Rainy River, while total operating costs are expected to rise about 10%, or roughly $30 million, for added labor, rental equipment and maintenance.
Capital Allocation and Outlook
Based on revised guidance and forecast prices of $4,000 per ounce of gold, $60 per ounce of silver and $6 per pound of copper, Coeur expects approximately $2.3 billion in EBITDA and $1.5 billion in free cash flow for 2026. Whelan said the outlook assumes lower metal prices in the second half and only nine months of contribution from New Afton and Rainy River.
Management expects production and cash flow to rise sharply in the second half, with fourth-quarter production anticipated to increase further from third-quarter levels. The company said third-quarter capital spending will be heavier than the fourth quarter, in part because exploration activity will peak during the summer.
Coeur said it plans to continue directing cash toward brownfield exploration, organic growth projects and shareholder returns. The company’s $750 million share repurchase program includes automatic purchases during blackout periods and opportunistic repurchases when management views the stock as undervalued.
In addition to exploration spending at its Mexican operations, Coeur allocated an additional $15 million to Silvertip for a pre-feasibility study and related work. Management expects to complete that study in early 2027, while continuing exploration intended to expand the resource. Coeur also said it is advancing preparations for a feasibility study at New Afton’s K-Zone, where exploration has expanded the mineralized footprint by more than 300 meters from the maiden resource shape outlined earlier in the year.
About Coeur Mining (NYSE:CDE)
Coeur Mining, Inc is a publicly traded precious metals mining company headquartered in Chicago, Illinois. The company specializes in the exploration, development and production of silver and gold deposits, with a focus on high-grade underground and open-pit operations. Through a combination of operating mines and advanced exploration projects, Coeur Mining seeks to deliver consistent production of silver and gold bullion while maintaining industry standards for safety, environmental stewardship and cost management.
Coeur Mining’s portfolio includes five principal operating mines and several exploration projects across North America and Australia.
