Coeur Mining Inc (CDE) 2024 Q3 法說會逐字稿

Good day, and welcome to the Coeur Mining third-quarter 2024 financial results conference call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 Coeur Mining 2024 年第三季財務業績電話會議。（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Mitch Krebs, President and CEO. Please go ahead.

現在我想將會議交給總裁兼執行長米奇·克雷布斯 (Mitch Krebs)。請繼續。

Good morning, everyone, and thanks for joining our call today to discuss our third-quarter results. Before we start, we want to quickly point out our cautionary language regarding forward-looking statements in today's slide deck and refer you to our SEC filings on our website. I'll start off with a few comments, starting on slide 3, before turning the call over to Mick and Tom.

大家早安，感謝您今天參加我們的電話會議，討論我們的第三季業績。在開始之前，我們想快速指出今天幻燈片中有關前瞻性陳述的警示性語言，並請您參閱我們網站上的 SEC 文件。我將從幻燈片 3 開始發表一些評論，然後將通話轉給 Mick 和 Tom。

We obviously had a very strong quarter which represented the free cash flow inflection point that we've been anticipating. Our strong results were driven by production increases at our four operations, higher gold and silver prices, and double-digit declines in our cost per ounce. This Goldilocks environment led to double-digit quarter-over-quarter and year-over-year increases and multiyear highs in quarterly revenue, adjusted EBITDA, net income, and free cash flow. We applied most of the free cash flow to paying down $50 million of our revolving credit facility.

顯然，我們有一個非常強勁的季度，這代表了我們一直預期的自由現金流拐點。我們的強勁業績得益於我們四個業務的產量增加、黃金和白銀價格上漲以及每盎司成本兩位數的下降。這種美好的環境導致季度收入、調整後 EBITDA、淨利潤和自由現金流實現兩位數的季度環比和同比增長，並創下多年來的新高。我們將大部分自由現金流用於償還 5,000 萬美元的循環信貸額度。

Together with LTM adjusted EBITDA now approaching $300 million, we're now seeing our leverage ratios quickly drop as we delever the balance sheet. Tom will go in a bit more detail on our balance sheet plans and priorities in a few minutes.

加上 LTM 調整後 EBITDA 目前已接近 3 億美元，隨著資產負債表去槓桿化，我們的槓桿率迅速下降。湯姆將在幾分鐘內更詳細地介紹我們的資產負債表計劃和優先事項。

Adding to our momentum and to these multiple converging catalysts was our announcement last month of our agreement to acquire SilverCrest Metals to create a global leader in the silver industry. The addition of SilverCrest's low-cost La Chispas primary silver operation and its pristine balance sheet will lead to a much larger, stronger company with peer-leading expected 2025 production of over 21 million ounces of silver and 432,000 ounces of gold, with over $700 million of EBITDA and free cash flow of approximately $350 million.

上個月我們宣布同意收購 SilverCrest Metals，以創造白銀行業的全球領導者，這進一步增強了我們的動力和多重聚合催化劑。SilverCrest 的低成本La Chispas 原銀業務及其原始的資產負債表的增加將導致公司規模更大、實力更強，預計2025 年白銀產量將超過2100 萬盎司，黃金產量將超過432,000 盎司，價值超過7億美元。

Since the announcement on October 3, we've received positive feedback from both Coeur and SilverCrest shareholders about the combination and for creating a silver industry leader at a time of extremely strong fundamentals for this essential metal. We expect formal shareholder votes to take place around year-end and for the transaction to close late in the first quarter.

自 10 月 3 日宣布這一消息以來，我們收到了 Coeur 和 SilverCrest 股東對此次合併以及在白銀這一基本金屬基本面極其強勁之際打造白銀行業領導者的積極反饋。我們預計正式股東投票將在年底左右進行，交易將在第一季末完成。

Looking ahead quickly and highlighting our top priorities, a key focus remains on continuing the progress at Rochester to set ourselves up for what should be a very strong 2025. Rochester achieved its key operational metrics during the third quarter, and remains on track to achieve its full-year guidance ranges. Mick will provide some additional details on Rochester.

快速展望未來並突出我們的首要任務，重點仍然是繼續羅徹斯特的進展，為 2025 年的強勁發展做好準備。羅徹斯特在第三季實現了關鍵營運指標，並有望實現全年指導範圍。米克將提供有關羅徹斯特的一些其他詳細資訊。

Overall, we've reconfirmed our company-wide full-year guidance ranges which implies another strong quarter to end the year and an opportunity to further reduce our debt levels by year-end.

總體而言，我們重新確認了全公司的全年指導範圍，這意味著年底將是另一個強勁的季度，並有機會在年底前進一步降低我們的債務水平。

Mick, over to you.

米克，交給你了。

Thanks, Mitch. Operating strength across our portfolio, continued easing costs, and accelerated contributions from the Rochester expansion led to Coeur's strongest quarterly results in over a decade.

謝謝，米奇。我們投資組合的營運實力、持續降低的成本以及羅徹斯特擴張的加速貢獻導致了 Coeur 十多年來最強勁的季度業績。

Beginning with Rochester, the positive trend lines we outlined last quarter showed continued momentum in the third quarter. Production of both silver and gold increased by roughly 20% compared to the prior quarter. The team has been achieving targeted tons placed since July, and we continue to focus on dialing-in pressure controls, process fine-tuning, and industrial hygiene management. We are systematically taking advantage of long-time data and dam periods to optimize and refine the operation to prepare the line for its long multi-decade room going forward.

從羅徹斯特開始，我們上季度概述的積極趨勢線在第三季度顯示出持續的勢頭。與上一季相比，白銀和黃金的產量增加了約 20%。自 7 月以來，該團隊一直在實現目標噸數，我們繼續專注於撥入壓力控制、製程微調和工業衛生管理。我們正在系統地利用長期數據和大壩週期來優化和完善運營，為線路未來數十年的發展做好準備。

Slide 22 details the excellent progress being made on reducing per tonne cost at Rochester with double-digit percentage decreases in mining, processing, and [JMA] highlighted how the scale of the expanded operation is driving down Rochester's cost profile as expected. A number of you on this call saw firsthand in September the scale and power of the circuit in operation.

幻燈片22 詳細介紹了羅徹斯特在降低每噸成本方面取得的巨大進展，採礦、加工方面的百分比下降了兩位數，並且[JMA] 強調了擴大運營規模如何按預期降低羅徹斯特的成本狀況。這次電話會議中的許多人在 9 月親眼目睹了正在運行的電路的規模和功率。

What we are beginning to see manifest through the circuit is the finesse to complement that raw power. Particle [crys] sized optimization remains the primary focus during the second half of the year. And on that front, the percentage of crushed material reaching the 5/8 target approached 75% during the latter part of the quarter, well within expectations for this point of the year.

我們開始透過電路看到明顯的是補充原始功率的技巧。顆粒大小的最佳化仍然是今年下半年的主要焦點。在這方面，本季後半段破碎物料達到 5/8 目標的百分比接近 75%，完全符合今年此時的預期。

Our three other operations are also on track for a good finish to the year. Palmarejo generated another strong quarter of free cash flow with gold and silver production increasing 8% and 14%, respectively, compared to the second quarter. The team made good strides on a couple of key projects to position the mine for future success, with the first thing breakthrough and connection of the new Hidalgo portal near the end of the third quarter. Following completion of associated development ramps, the Hidalgo access portal is expected to unlock new zones within the independency of deposit and enhance overall mining flexibility and efficiency.

我們的其他三個業務也有望在今年取得良好的業績。Palmarejo 的自由現金流再次強勁，黃金和白銀產量較第二季度分別增長 8% 和 14%。該團隊在幾個關鍵項目上取得了長足進步，為礦山未來的成功奠定了基礎，新伊達爾戈門戶在第三季末實現了首次突破和連接。相關開發坡道完成後，伊達爾戈入口預計將在礦床獨立範圍內解鎖新區域，並提高整體採礦靈活性和效率。

We've also made good early progress on getting after the newly acquired claims from Fresnillo that closed early in the third quarter. The concessions adjacent to current mining areas collectively known as the Independencia [Sur] presented the most immediate near-term development opportunity. The pace of mapping, drilling and development planning work continues to accelerate, and it's important to note that these prospective areas sit completely outside the Franco-Nevada gold stream boundary.

我們在處理第三季初結束的 Fresnillo 新獲得的索賠方面也取得了良好的早期進展。毗鄰目前礦區的特許權（統稱為「獨立」[Sur]）提供了最直接的近期發展機會。測繪、鑽探和開發規劃工作的步伐不斷加快，值得注意的是，這些潛在區域完全位於法蘭哥-內華達金礦流邊界之外。

Moving to Kensington. The higher gold price helped drive a $42 million swing back to positive free cash flow in the quarter to $18 million. The mine's multiyear underground development and drilling investment continues to progress and remains on track to wrap up by the middle of next year, which is expected to leave Kensington well positioned to deliver sustained free cash flow with greater operational flexibility. Exploration drilling also continues to demonstrate success towards our goal of building up to a five-year mine life by year-end.

搬到肯辛頓。金價上漲推動本季 4,200 萬美元的自由現金流回升至 1,800 萬美元。該礦的多年地下開發和鑽探投資繼續取得進展，並預計在明年年中完成，預計這將使肯辛頓處於有利地位，能夠以更大的營運靈活性提供持續的自由現金流。勘探鑽探也繼續成功地實現了我們在年底實現礦山壽命五年的目標。

Finishing up with Wharf. Positive reconciliation and timing of all placement led to an extremely strong quarter. Gold production of nearly 34,000 ounces set an all-time record high in the mine's 42-year history, generating quarterly free cash flow of $49 million and bringing the year-to-date free cash flow total to $75 million. We expect a more typical fourth quarter for Wharf, which is still a very, very good outcome. The two new exploration targets at Wharf we introduced last quarter continued to demonstrate strong potential to materially increase mine life as an operation that continues to exceed expectations.

結束了碼頭。所有配售的積極協調和時機導致了一個極其強勁的季度。近 34,000 盎司的黃金產量創下了該礦 42 年歷史上的歷史新高，產生了 4,900 萬美元的季度自由現金流，使年初至今的自由現金流總額達到 7,500 萬美元。我們預計九龍倉的第四季會比較典型，這仍然是一個非常非常好的結果。我們上季在 Wharf 推出的兩個新勘探目標繼續展現出大幅延長礦山壽命的強大潛力，其營運持續超出預期。

Drilling at the North Foley and Juno targets continued during the quarter from two surface drill rigs, with recent assays showing good continuity in areas west of the historic Juno pit. Overall, Wharf continues to deliver and show the potential to keep delivering for years to come.

本季度，兩台露天鑽機繼續在北弗利和朱諾目標進行鑽探，最近的分析顯示歷史悠久的朱諾坑以西地區具有良好的連續性。總體而言，九龍倉將繼續交付並展現出在未來幾年繼續交付的潛力。

With that, I'll pass the call over to Tom.

這樣，我會將電話轉給湯姆。

Thanks, Mick. As discussed on prior calls, the long-awaited free cash flow inflection point for Coeur arrived this quarter. Higher revenues, lower unit costs, and lower CapEx were all expected and delivered. During the third quarter, we saw 15% higher metal prices and a 12% decrease in operating cost per ounce to $1,113 per ounce of gold and $15.67 per ounce of silver. These two factors were a powerful one-two punch that led to $69 million of free cash flow and $126 million of adjusted EBITDA in the third quarter alone, showing the power of the portfolio. With Rochester still in the optimizing phase and the addition of Las Chispas's free cash flow, we expect even stronger results in 2025.

謝謝，米克。正如先前電話會議中討論的那樣，Coeur 期待已久的自由現金流拐點在本季到來。更高的收入、更低的單位成本和更低的資本支出都是預期並實現的。第三季度，金屬價格上漲 15%，每盎司營運成本下降 12%，黃金每盎司 1,113 美元，白銀每盎司 15.67 美元。這兩個因素是強有力的一對二重拳，僅在第三季度就帶來了 6900 萬美元的自由現金流和 1.26 億美元的調整後 EBITDA，顯示了投資組合的力量。由於羅徹斯特仍處於優化階段，加上 Las Chispas 自由現金流的增加，我們預計 2025 年的業績將會更加強勁。

Coeur's free cash flow inflection point is projected to be sustained during the fourth quarter based on continued higher metals prices and production growth at the higher cost Rochester and Kensington mines. As we have stated consistently, we will be allocating free cash flow to reducing our debt levels, beginning with our revolving credit facility, which sat at $225 million drawn at quarter end, a $50 million reduction from the prior period.

由於金屬價格持續走高以及成本較高的羅徹斯特和肯辛頓礦山的產量增長，Coeur 的自由現金流拐點預計將在第四季度持續。正如我們一貫指出的那樣，我們將分配自由現金流來降低我們的債務水平，首先是我們的循環信貸額度，該額度在季度末提取了 2.25 億美元，比上一期減少了 5000 萬美元。

As shown on slide 11, our net debt-to-EBITDA ratio has plunged below 2 times for the first time in three years. This, of course, does not include the very healthy SilverCrest balance sheet, which has approximately $160 million of cash in bullion as of September 30, 2024.

如投影片 11 所示，我們的淨債務與 EBITDA 比率三年來首次降至 2 倍以下。當然，這不包括非常健康的 SilverCrest 資產負債表，截至 2024 年 9 月 30 日，該資產負債表擁有約 1.6 億美元的金條現金。

By mid-2025, we expect to have the revolver fully repaid and could likely be in a position to begin a period of building up cash on the balance sheet. Whether it's to reinvest in high-return brownfield exploration, support the future development of Silvertip, repay this $290 million of [5.125%] notes or a return of capital to shareholders in some form, or a combination of all of the above, we will continue to abide by our long-stated capital allocation framework and continue to focus on generating returns greater than our cost of capital.

到 2025 年中期，我們預計左輪手槍將全額償還，並且很可能能夠開始一段在資產負債表上累積現金的時期。無論是對高回報棕地勘探進行再投資、支持 Silvertip 的未來發展、償還這 2.9 億美元的 [5.125%] 票據，還是以某種形式向股東返還資本，或者以上所有的組合，我們都將繼續遵守我們長期規定的資本配置框架，並持續專注於創造高於資本成本的回報。

Returning briefly to the recently announced definitive agreement to acquire SilverCrest, the short-term focus has been on finalizing required regulatory filings. We are actively planning for a smooth integration so we can hit the ground running upon closing, likely in late Q1 2025.

簡單回顧一下最近宣布的收購 SilverCrest 的最終協議，短期的重點是完成所需的監管備案。我們正在積極規劃順利整合，以便我們能夠在交易結束後立即開始運作，可能是在 2025 年第一季末。

I'll now pass the call back to Mitch.

我現在將電話轉回給米奇。

Thanks, Tom. Before moving to the Q&A, I want to quickly highlight slide 12 that summarizes our top priorities for the remainder of the year with the continued optimization of Rochester, pursuing the closing of the SilverCrest acquisition and planning for the integration of Las Chispas at the top of the list. We look forward to delivering a strong and safe fourth quarter, highlighted by even higher production, another quarter of positive free cash flow and further debt reduction, which should leave us well positioned for a very strong 2025.

謝謝，湯姆。在進行問答之前，我想快速強調投影片 12，該投影片總結了我們今年剩餘時間的首要任務，即繼續優化羅徹斯特、完成 SilverCrest 收購以及規劃整合 Las Chispas名單。我們期待實現強勁且安全的第四季度，其突出特點是產量更高、自由現金流又一個季度為正，債務進一步減少，這將使我們為 2025 年的強勁表現做好準備。

With that, let's go ahead and open it up for questions.

接下來，讓我們繼續提問。

(Operator Instructions) Joseph Reagor, ROTH Capital Partners.

（操作員指示）Joseph Reago，ROTH Capital Partners。

I guess first thing on Rochester, and I apologize if you guys touched on this, I joined a couple of minutes late. Is this leach cycle that you guys have modeled internally matching what you're seeing as far as production in the third quarter, given that we don't have the exact timing of how the ore was stacked?

我想關於羅徹斯特的第一件事，如果你們觸及這一點，我很抱歉，我遲到了幾分鐘。鑑於我們沒有礦石堆疊的確切時間，你們內部模擬的這個浸出週期是否與你們所看到的第三季的生產相符？

Yeah. Thanks for the question. I'll start and then, Mick, you can add to it. In short, it is, Joe. As we get that crush size down to the target by the end of the year of five-eights, obviously, the recoveries will improve as we do that. But in this period of time where we've gone from kind of focusing on stabilizing things out there and running at a bit of a higher size fraction, the recoveries are obviously lower to start and then they'll improve as we get that crush size down, and they have been tracking according to what we've modeled based on those crush sizes. So things are tracking as we had expected.

是的。謝謝你的提問。我先開始，然後，米克，你可以補充。簡而言之，就是這樣，喬。當我們在年底前將壓榨規模降至目標時五八，顯然，當我們這樣做時，恢復率將會提高。但在這段時間裡，我們不再專注於穩定那裡的事物，而是以更高的尺寸分數運行，開始時回收率明顯較低，然後當我們達到破碎尺寸時，回收率就會提高他們一直在根據我們根據這些擠壓尺寸建模的模型進行追蹤。所以事情正在按照我們的預期進行。

Mick, anything you want to add?

米克，你還有什麼要補充的嗎？

Yeah. We had a great period of a couple of years with the ex pit to really try and model and upgrade recovery curves. And that gives insight into the larger size fractions all the way down to the fine material. And so far, we're seeing that those recoveries are tracking on that recovery curve. As we said earlier in the year, we focused on getting the tonnage up and hitting the tonnes run rate by the middle of the year. And that was at a larger size fraction. So we're regularly hitting 100,000 tonnes per day, which is net we're really happy. But now we're focused on dialing that in, as Mitch said, to the five-eights size fraction.

是的。我們在前坑度過了幾年的美好時光，真正嘗試建模和升級恢復曲線。這樣可以深入了解較大尺寸的部分，一直到精細材料。到目前為止，我們看到這些復甦正在沿著復甦曲線進行。正如我們今年早些時候所說，我們的重點是在年中之前提高噸位並達到噸位運行率。那是在更大的尺寸分數。因此，我們每天的產量經常達到 100,000 噸，這是我們非常高興的淨產量。但現在我們的重點是，正如米奇所說，將其調整為五八的尺寸分數。

And we're not quite there yet, but we're heading in the right direction. We're seeing some really good results there. But we're going to see that those recoveries are going to improve over time, and we'll be in some momentum as we come towards the end of the year and through into 2025. But overall, as planned.

我們還沒有完全做到這一點，但我們正朝著正確的方向前進。我們在那裡看到了一些非常好的結果。但我們會看到，隨著時間的推移，這些復甦將會有所改善，並且在接近今年年底和 2025 年的時候，我們將保持一定的勢頭。但總體來說，還是照計畫進行的。

Okay, fair. And then on the SilverCrest acquisition, what are the remaining hurdles you guys have as you see it to getting this closed?

好吧，公平。然後，關於 SilverCrest 的收購，你們認為完成此交易還有哪些障礙？

Yeah, really three, I guess. I don't know if they're hurdles, just steps. Both companies will have shareholder votes around year-end. We do have the (inaudible) approval from Mexico that we expect to get in the first quarter, which should then set us up for that late first-quarter close. So those are really the three biggest hoops that we'll need to jump through between here and closing.

是的，我想確實是三個。我不知道它們是否是障礙，只是步驟。兩家公司都將在年底左右進行股東投票。我們確實獲得了墨西哥的（聽不清楚）批准，我們預計將在第一季獲得這項批准，這將為我們第一季末的收盤奠定基礎。因此，這些確實是我們從這裡到結束之間需要跨越的三個最大的障礙。

Okay. And then one final thing on the balance sheet. You guys finished the quarter with about $77 million in cash. Is that a good number for us to assume as we're trying to forecast debt repayment that you guys will keep it at that level? Do you want to grow it a little bit back towards more traditional levels, around $100 million? How should we think about that?

好的。然後是資產負債表上的最後一件事。本季結束時，你們擁有大約 7700 萬美元的現金。當我們試圖預測債務償還時，我們可以假設你們會將其保持在這個水平，這是一個很好的數字嗎？您想將其成長到更傳統的水平，即 1 億美元左右嗎？我們該如何思考這個問題？

Well, my thought is, and Tom, you can go after me. But in the first half of next year, at least as we're prioritizing repayment of that revolver, that cash balance will probably stay in that ZIP code. But then once that revolver is fully repaid, and I think, Tom, you mentioned midyear, by midyear, then we should start to see some cash start to build, which we're okay with for a little while as we get through the end of next year, have Las Chis plus integrated, and then we can kind of go from there.

好吧，我的想法是，湯姆，你可以追我。但在明年上半年，至少當我們優先考慮償還那把左輪手槍時，現金餘額可能會保留在該郵遞區號中。但是，一旦左輪手槍完全償還，我想，湯姆，你提到年中，到年中，那麼我們應該開始看到一些現金開始積累，當我們度過最後的一段時間時，我們對此感到滿意明年，我們將整合Las Chis plus，然後我們就可以從那裡開始。

Tom, anything to add?

湯姆，有什麼要補充的嗎？

No. Perfect.

不。完美的。

(Operator Instructions) At this time, we have no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to Mitch Krebs for any closing remarks.

（操作員說明） 目前，我們沒有其他問題。我們的問答環節到此結束。我想將會議轉回米奇·克雷布斯（Mitch Krebs）發表閉幕詞。

Okay. Thanks. Well, hey, we appreciate everyone's time today. I know it's a super busy reporting period today, and we look forward to discussing our fourth-quarter and full-year 2024 results with you in February, and we'll be able to give you a good update on the progress on the SilverCrest transaction at that point as well. So until then, have a happy and safe holiday season.

好的。謝謝。嗯，嘿，我們感謝大家今天抽出時間。我知道今天是一個非常繁忙的報告期，我們期待在 2 月份與您討論我們的第四季度和 2024 年全年業績，我們將能夠向您提供有關 SilverCrest 交易進展的最新信息也在那時。所以在那之前，祝您有個快樂、安全的假期。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。