Coeur shares fall 4.6% after hours, Q3 profit misses estimates

Coeur (CDE) said third-quarter adjusted earnings were 10 cents per share, missing the 30-cent consensus estimate, while revenue rose 77% from a year earlier to $983.6 million.

Shares fell 4.6% in after-hours trading as of 4:37 p.m. ET, from a regular-session close of $14.58.

The company said in a press release filed with regulators that adjusted EBITDA and free cash flow also rose from a year earlier. Adjusted EBITDA was $448 million, up 69%, and free cash flow was $240 million, up 27%.

Coeur Mining is a U.S.-based precious metals producer with seven wholly-owned operations in Canada, Mexico and the United States.

Here's how the company did:

• Revenue: $983.6 million vs. $554.6 million a year earlier
• Adjusted EPS: 10 cents vs. 19 cents a year earlier, 30 cents expected
• GAAP net income: $109.4 million, or 11 cents per share
• Adjusted EBITDA: $448 million, up 69% from a year earlier
• Free cash flow: $240 million, up 27% from a year earlier

Adjusted net income was $97.8 million. Results were reduced by $40 million, or 3 cents per share, of non-cash expense from purchase price allocation accounting for Rainy River’s stockpile inventory.

Revenue fell from $1.09 billion in the second quarter. Average realized gold and silver prices declined to $3,979 and $62.22 per ounce, from $4,140 and $71.18.

Production and costs

Gold production was 161,400 ounces, down from 163,490 ounces in the second quarter. Silver output fell 12% from a year earlier to 4.2 million ounces, mainly on lower silver grades at Palmarejo.

The company said a conveyor belt failure at New Afton in late August, repaired by mid-September, and heavy rain at Rainy River and Palmarejo held back output. Gold production rose 28% at Wharf and 39% at Rochester from the prior quarter.

Adjusted costs applicable to sales per gold ounce fell to $2,054 from $2,442. That figure includes $40 million of non-cash expense from purchase price allocation, which added $245 per ounce.

Operating cash flow was $386 million, down from $513 million in the second quarter.

Guidance and capital returns

The company continues to target full-year production of approximately 630,000 ounces of gold, 18.7 million ounces of silver and 40.0 million pounds of copper, the low end of its guidance ranges.

It now expects cash income and mining taxes of $350 million to $450 million for 2026, down from the $475 million to $600 million range it gave on Aug. 5.

Chairman, President and Chief Executive Officer Mitchell J. Krebs said: “we remain on-track to deliver strong fourth quarter results to cap off a transformative and record year for the Company.”

Since the enhanced $750 million share repurchase program began in mid-May, Coeur has repurchased $231 million of common stock, including $111 million in the third quarter. Cash rose to $1.2 billion.

The company also declared a second dividend of 2 cents per share, payable Dec. 16 to holders of record at the close of business on Nov. 30.