Coeur Mining, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 14 new, 7 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue and net income rose: Revenue was $856 million, cash flow from operations was $341 million, and GAAP net income from continuing operations was $247 million, or $0.35 per share. Source
• Realized prices rose sharply: Average realized gold and silver prices rose 15% and 53% from the fourth quarter, to $4,383 and $82.85 per ounce. Source
• New Gold closed March 20: New Afton and Rainy River were consolidated for eleven days of the first quarter after the New Gold acquisition closed on March 20, 2026. Source
• K-Zone maiden resource disclosed: The New Afton K-Zone has 47.6 million tonnes of measured and indicated resources containing 715,000 ounces of gold, 2.9 million ounces of silver and 606 million pounds of copper. Source
• Cash balance rose to $843 million: Cash rose 52% from the prior quarter and nearly eleven-fold year over year; the company also entered into a new $1 billion revolving credit facility. Source
• Combined production guidance issued: Prorated production guidance for New Afton and Rainy River, covering nine months of ownership, was issued alongside the combined company totals. Source

“the quarter was our softest of the year as expected, with several first quarter-specific outflows totaling over $200 million”

Mitchell J. Krebs, Chairman, President and Chief Executive Officer

Guidance

What changed from last quarter

• New guidance: Full-year 2026 guidance for New Afton and Rainy River was issued for the first time, following the New Gold closing. Source
• Guidance kept: Full-year 2026 guidance for the legacy mines was reaffirmed, including production, CAS, capital expenditures and DD&A. Source
• New: New Gold transaction closed on March 20, 2026, adding New Afton and Rainy River. Source
• New: Share repurchase program expanded to $750 million on March 23, 2026. Source
• New: Inaugural dividend policy of $0.02 per share, paid semiannually, established. Source
• New: Company entered into a new $1 billion revolving credit facility during the first quarter. Source
• New: Initial resource at the New Afton K-Zone reported in updated technical reports filed March 23, 2026. Source
• New: Rainy River life of mine extended by two years to 2035 in the updated technical report. Source

Results and growth drivers

• Revenue and net income rose: Revenue was $856 million, cash flow from operations was $341 million, and GAAP net income from continuing operations was $247 million, or $0.35 per share. Source
• Free cash flow held up: Free cash flow was $267 million after several first-quarter-specific outflows totaling over $200 million. Source
• Operating cash flow declined from fourth quarter: Operating cash flow was $341 million, down from $375 million, on higher costs applicable to sales and lower metal sales volumes, partly offset by higher realized prices. Source

Costs, prices and margins

• Realized prices rose sharply: Average realized gold and silver prices rose 15% and 53% from the fourth quarter, to $4,383 and $82.85 per ounce. Source
• Gold cost includes acquisition inventory charge: Adjusted costs applicable to sales were $2,032 per gold ounce and $20.01 per silver ounce; the gold figure includes $689 per ounce from the inventory purchase price allocation. Source
• G&A rose on pay and audit fees: General and administrative expenses rose 43% from the prior quarter to $22 million, on higher stock-based compensation, annual incentive payouts and audit fees. Source
• Exploration spend and tax expense: Exploration investment was about $32 million, of which $26 million was expensed. Income tax expense was about $102 million. Source

“Adjusted EBITDA reached a new quarterly record and free cash flow remained robust, leading to a quarter-end cash balance of over $840 million”

Mitchell J. Krebs, Chairman, President and Chief Executive Officer

Operating portfolio

• Wharf output fell after crusher fire: Wharf gold production fell 61% from the prior quarter to 9,772 ounces, with ore tonnes placed lower after fire damage to the tertiary crusher. Source
• Rochester output declined on grades: Rochester produced 14,112 gold ounces and 1.4 million silver ounces, down from 17,722 and 1.7 million, on lower planned grades and crusher down days. Source
• Kensington costs rose on lower output: Kensington gold production was 20,525 ounces, down from 29,567, and adjusted costs per ounce rose 47% to $2,246. Source
• Palmarejo stream sales share: About 51% of Palmarejo gold sales, 11,692 ounces, went under the Franco-Nevada stream at $800 per ounce. Source
• Metal mix across revenue: Gold and silver were 56% and 42% of revenue; copper was 2%, from New Afton and Rainy River after the closing. Source

New Gold transaction and integration

• New Gold closed March 20: New Afton and Rainy River were consolidated for eleven days of the first quarter after the New Gold acquisition closed on March 20, 2026. Source
• Acquired mines added output: New Afton and Rainy River contributed 14,145 ounces of gold, 22,989 ounces of silver and 1.4 million pounds of copper in those eleven days. Source
• Integration progressing to plan: Organizational integration initiatives following the New Gold closing are progressing according to plan, per management. Source

“Our recently updated financial policy is designed to maintain flexible liquidity levels while also returning capital to stockholders through prudent share repurchases and the initiation of a sustainable dividend policy”

Mitchell J. Krebs, Chairman, President and Chief Executive Officer

Exploration and resources

• K-Zone maiden resource disclosed: The New Afton K-Zone has 47.6 million tonnes of measured and indicated resources containing 715,000 ounces of gold, 2.9 million ounces of silver and 606 million pounds of copper. Source
• K-Zone inferred resources: Inferred resources total 5.9 million tonnes with 86,000 ounces of gold, 309,000 ounces of silver and 77 million pounds of copper. Source
• K-Zone drilling grades as expected: Drilling aims to upgrade the 5.9 million tonnes of inferred K-Zone resources; mineralization grades and widths are meeting expectations so far. Source
• Rainy River mine life extended: The updated Rainy River technical report extends mine life to 2035, with ODM Main extended 150 meters and Zone 17 extended 200 meters. Source

Capital, cash and returns to shareholders

• Cash balance rose to $843 million: Cash rose 52% from the prior quarter and nearly eleven-fold year over year; the company also entered into a new $1 billion revolving credit facility. Source
• Capital spending rose modestly: Capital expenditures were $74 million, against $61 million in the prior quarter; sustaining was about $63 million and development about $11 million. Source
• Mexico tax payments drove cash taxes: Cash income and mining taxes paid were about $132 million, mainly Mexican payments; changes in working capital were $104 million. Source
• Buyback and dividend policy set: The $750 million repurchase program and the inaugural dividend policy are designed to return capital while keeping flexible liquidity. Source

2026 guidance and cost drivers

• Legacy guidance reaffirmed: Full-year 2026 guidance for the legacy mines was reaffirmed, covering production, CAS, capital expenditures, DD&A, exploration, G&A and income and mining tax. Source
• Combined production guidance issued: Prorated production guidance for New Afton and Rainy River, covering nine months of ownership, was issued alongside the combined company totals. Source
• Cost drivers named: Cost guidance reflects higher royalty expense from stronger realized metal prices, a stronger Mexican peso, inflation of 3% to 5%, and higher planned maintenance costs. Source
• Silver cost per ounce expected higher: Silver adjusted costs per ounce are expected to be higher in 2026, reflecting silver's higher share of revenue, consistent with the second half of 2025. Source

Coming up, as management said on 6 May 2026

• First dividend in second quarter: The first dividend under the new policy is expected to be paid during the second quarter of 2026. Source
• K-Zone feasibility study to start: A feasibility study for the K-Zone is expected to commence in the second half of 2026. Source
• C-Zone throughput ramp: New Afton throughput is expected to ramp up to 15,000 tonnes per day from the C-Zone during the first half of 2026. Source
• Rainy River underground ramp through 2026: Underground production ramp-up at Rainy River is expected to continue throughout 2026. Source
• Eastern K-Zone drilling from early second quarter: Drilling further to the east at New Afton is expected to start early in the second quarter from an underground exploration drift. Source

Figures management reported

Risks management discussed

• Operational: Wharf crushing relies on temporary crushers while the damaged tertiary crusher is repaired and commissioned. Source
• Operational: Rochester placement was reduced by crusher down days and lower direct-to-pad placement while fleet capacity was redirected to leach pad removal. Source
• Financial: Cash taxes and working capital payments in the quarter were significant outflows, including Mexican income and mining tax payments. Source
• External: Cost guidance assumes inflation of 3% to 5% across the portfolio and higher planned maintenance costs. Source
• Financial: Higher royalty costs and the timing of annual property tax payments at Rochester affected free cash flow. Source

Earlier plans management reported on

• On track: Management said full-year production remains on track for the guided ranges. Source
• On track: Phase 5 open pit stripping at Rainy River remains on schedule. Source
• On track: Integration initiatives are progressing according to plan. Source
• Ahead: Drilling at San Miguel is progressing ahead of schedule. Source
• Met: Management said the quarter was the softest of the year, as expected. Source
• Met: C-Zone cave construction was finalized with drawbell blasting completed. Source
• Met: Prior quarter stated the transaction was on track to close in the first half of 2026; the closing took place on March 20, 2026.
• Met: Prior quarter said guidance would include New Afton and Rainy River upon closing; guidance for both is included in this release.
• Not stated: Prior quarter expected $150 - $160 million of cash taxes in the first quarter; this release reports about $132 million paid.

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.