<div id="readability-page-1"><p>Coeur D’alene Mines ((CDE)) has held its Q4 earnings call. Read on for the main highlights of the call.</p><h3>President's Day Sale - 70% Off</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>Coeur D’alene Mines struck an emphatically upbeat tone on its latest earnings call, framing 2025 as a breakout year in both operations and finances. Management underscored record production, surging cash generation, and major reserve additions as evidence of a transformed business, arguing these strengths more than offset temporary setbacks at Wharf and near‑term tax and recovery headwinds.</p> <h2>Record Production Growth Sets New Baseline</h2> <p>Full‑year 2025 production surged, with silver output up 57% and gold up 23% versus the prior year, marking a step‑change in scale. Management credited the Rochester expansion, the integration of SilverCrest’s Las Chispas asset, and solid performance across its three other North American mines for establishing a higher long‑term production base.</p> <h2>Transformational Financial Performance</h2> <p>Financial results showed an equally dramatic improvement, with adjusted EBITDA up 200% to more than $1 billion and free cash flow swinging to $666 million from a small loss a year earlier. Net income climbed tenfold to a record $586 million, and year‑end cash ballooned more than tenfold to $554 million, highlighting sharply stronger underlying profitability.</p> <h2>Q4 Delivers Broad‑Based Operating Strength</h2> <p>In the fourth quarter, Coeur produced 112,000 ounces of gold and 4.8 million ounces of silver, showcasing momentum across the portfolio. Quarterly free cash flow rose 66% to $313 million, and each mine contributed at least $50 million of free cash flow, underscoring the breadth of the turnaround rather than reliance on a single asset.</p> <h2>Cost Control Drives Margin Expansion</h2> <p>The company reported competitive adjusted cash costs of $1,207 per ounce for gold and $17.29 per ounce for silver, supporting healthier margins. Adjusted EBITDA margin expanded by 63%, including a 60% sequential increase, signaling that operational leverage and disciplined cost management are translating into stronger profitability per ounce.</p> <h2>Rochester Steps Up as Core Growth Engine</h2> <p>At Rochester, full‑year silver and gold production climbed 40% and 54% respectively, confirming the impact of the expansion. In Q4 alone, crusher throughput exceeded 7 million tonnes and generated $78 million of free cash flow, with January 2026 starting above 2.3 million metric tons crushed, positioning the mine as a key cash generator.</p> <h2>Las Chispas and Palmarejo Fuel Cash Generation</h2> <p>Las Chispas quickly emerged as a standout, producing $286 million of free cash flow in roughly 10.5 months and $79 million in Q4 alone, validating the SilverCrest acquisition. Palmarejo also had a strong quarter, milling more than 470,000 tonnes, delivering $63 million of free cash flow, and boosting reserves by almost 40% to 2.0 million gold‑equivalent ounces.</p> <h2>Kensington and Wharf Post Best‑Ever Metrics</h2> <p>Kensington delivered its highest tonnes milled and grade of the year, with Q4 gold production reaching 30,000 ounces, its lowest quarterly cost of $1,533 per ounce, and a record $51 million of free cash flow. Wharf added 25,000 ounces of gold in the quarter and generated $62.3 million of free cash flow, underscoring strong performance before the subsequent crusher incident.</p> <h2>Exploration Success Extends Mine Lives</h2> <p>Exploration results were a key highlight, with total reserves rising 10% and inferred resources jumping 40% year‑over‑year across the portfolio. Wharf stood out with inferred resources up 216% and roughly half a million ounces added to reserves, nearly doubling its mine life to about 12 years, while Palmarejo and Rochester also saw meaningful inferred resource growth.</p> <h2>Balance Sheet Strengthens and Capital Options Grow</h2> <p>Coeur cut total debt by $250 million, a 42% reduction year‑over‑year, ending the period in a net cash position with nearly $1 billion of liquidity. The company also has a $75 million share buyback authorization in place, signaling intent to return capital, though actual repurchases have been slowed by transaction‑related trading constraints.</p> <h2>New Gold Deal and Production Outlook Offer Upside</h2> <p>Management emphasized that 2026 stand‑alone guidance calls for about 10% silver production growth, with silver expected to contribute roughly 42% of revenue at current prices. Beyond that, the planned New Gold acquisition is projected, using consensus assumptions, to support around $3 billion of EBITDA and $2 billion of free cash flow on a full‑year run rate once fully combined.</p> <h2>Wharf Crusher Fire Creates Near‑Term Volatility</h2> <p>A tertiary crusher fire at Wharf in Q4 damaged key infrastructure and introduced short‑term operational risk, though temporary mobile crushing was deployed in January. Repairs are expected to finish in the second quarter, leading to a back‑half‑weighted production profile and some incremental repair capital spending, but management framed the impact as temporary.</p> <h2>Rochester Recoveries and Grade Headwinds</h2> <p>Rochester’s silver recoveries remain below long‑term targets and are highly sensitive to crush size, an issue management is working to improve by targeting a smaller P80 crush size near five‑eighths of an inch. The mine is also scheduled to see lower grades in the first half of 2026 under the mine plan, which may weigh on near‑term output despite higher throughput.</p> <h2>Cash Taxes and Seasonality Pressure Cash Flows</h2> <p>Despite strong earnings, Coeur flagged a significant cash tax burden for 2026, guiding to $400–$500 million, with roughly 80% tied to Mexico. The first quarter is expected to be seasonally cash‑light as year‑end Mexican tax and incentive payments come due, temporarily dampening operating cash flow even as the underlying business remains strong.</p> <h2>U.S. Tax Shields Diminish and Buybacks Delayed</h2> <p>The company’s U.S. tax pools fell to about $530 million from $630 million, and management suggested that at current prices these could be largely utilized within roughly two years, increasing future cash tax exposure. Meanwhile, execution of the $75 million buyback was sharply limited in the second half due to restrictions tied to the New Gold transaction and will likely remain constrained until closing.</p> <h2>Guidance and Strategic Outlook</h2> <p>For 2026, Coeur’s stand‑alone guidance calls for about 10% silver production growth and substantial combined silver and gold gains versus 2025, with Rochester targeting quarterly crushed tonnes between 6.2 and 7.2 million metric tons at a finer top size. Exploration spending is set to rise 47% to $120–$136 million, while management expects the New Gold deal to close around the first half and then update combined guidance, though investors must factor in $400–$500 million of cash taxes and a weaker first‑quarter cash profile.</p> <p>Coeur’s latest call paints a picture of a miner that has turned the corner, with record production, cash generation, and reserve growth reshaping the investment case despite tax and operational bumps. For investors, the key watchpoints now are execution at Rochester and Wharf, the timing and integration of New Gold, and how quickly the stronger balance sheet translates into sustained returns of capital.</p></div>

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<p>Coeur D’alene Mines (CDE) reported a strong Q4 earnings call, projecting 2025 as a breakout year with record production and financial performance. Silver output increased by 57% and gold by 23%, driven by expansions and solid operations. Adjusted EBITDA rose 200% to over $1 billion, with net income reaching $586 million. The company achieved competitive cash costs and significant free cash flow across all mines. Despite a temporary setback from a crusher fire at Wharf, management remains optimistic about future growth, including a planned New Gold acquisition.</p>

Coeur D’alene Mines Signals Breakout Year in Earnings