Coeur Mining (CDE) Q3 2026 Earnings Call: Q&A Summary

Q: Did the conveyor repair allow you to reach the 16,000 tonne per day mining rate ahead of year-end, and are there mill bottlenecks?

A: Mitchell Krebs and Michael Routledge confirmed they achieved the 16,000 tonne per day target by the end of October despite the conveyor failure, and the ramp-up has steadied at that level.

Q: Given the Q3 headwinds, what are the key drivers that will allow for the significant production increases in Q4?

A: Mitchell Krebs and Thomas Whelan explained that the portfolio approach allows multiple assets to contribute to the step-up, specifically citing higher mining and milling rates at New Afton, crusher performance and grade recovery at Rochester, improved backfill capacity at Palmarejo, higher grades at Kensington, and crusher upgrades at Wharf.

Q: Was there any consideration given to lowering guidance, and why did you decide to maintain it?

A: Mitchell Krebs stated they reviewed the updated guidance for New Afton and Rainy River and felt confident in the ability of the legacy operations to land at the low end of the ranges, so they maintained the existing guidance.

Q: What is the optimal mix of oxide versus sulfide ore at Rochester, and how are you managing the trade-off with higher grades?

A: Michael Routledge noted the team limits the sulfide percentage to a maximum of 0.7% and is currently targeting 0.3%, managing the blend to ensure proper silver recovery.

Q: Is the amount of sulfide ore encountered in line with the plan, and how does it impact recoveries?

A: Michael Routledge explained the presence of sulfides was expected as a transition zone, and the team has the flexibility to manage the blend to maximize grades without compromising recovery.

Q: Can you achieve the required grade increase in Q4 at Palmarejo, or are you relying on other assets to offset potential underperformance?

A: Mitchell Krebs and Michael Routledge stated both factors apply, as the team is now executing the plan to access higher-grade areas in the Hidalgo region following the resolution of wet weather and backfill supply issues.

Q: Should the $70 million insurance payment for Wharf be added directly to Q4 cash flow without tax effects?

A: Thomas Whelan explained that while there are tax implications, the company expects cash taxes to remain at the low end of the guidance range, and the insurance proceeds are factored into the overall consolidated tax return.

Q: How much of the share buyback activity was discretionary versus automatic, and was it done after knowing about the operational challenges?

A: Thomas Whelan stated the company does not disclose buybacks by month, but they focus on being opportunistic on down days rather than increasing activity based on operational results.

Q: Do you expect to accelerate the buyback pace, and what is the strategy for splitting capital between buybacks and other uses?

A: Mitchell Krebs said the company intends to continue being opportunistic with buybacks while maintaining a balance between bolstering liquidity and reinvesting in the business.

Q: Are there any residual weather impacts drifting into Q4, and how are New Afton and Rainy River progressing?

A: Mitchell Krebs stated the company started the fourth quarter on plan, and the wet weather that impacted Palmarejo and Rainy River in the third quarter has subsided.

Q: Are you looking for further acquisitions, or are you focused on simplifying the organization?

A: Mitchell Krebs said the current priority is to digest the recent transactions and execute on the existing platform, with no immediate plans for further large acquisitions or structural changes.