Coeur Mining, Inc. (NYSE:CDE) Q3 2019 Earnings Conference Call Transcript

Nov 05, 2019 • 11:00 am ET

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Coeur Mining, Inc. (NYSE:CDE) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Coeur Mining Third Quarter 2019 Financial Results Conference Call and Webcast. [Operator Instructions].

I would now like to turn the conference over to Paul DePartout Director of Investor Relations. Please go ahead.

Executive
Paul DePartout

Thank you and good morning. Welcome to Coeur Mining's third quarter earnings conference call. Our results were released after yesterday's market close and a copy of the press release and slides for today's call are available on our website. I would like to remind everyone that our press release slides and some of our comments today include forward-looking statements from which actual results may differ. Please review the cautionary statements included in our press release and presentation as well as the risk factors described in our 2018 10-K.

Now I'll turn it over to Mitch.

Executive
Mitchell J. Krebs

Thanks Paul and good morning. Tom Whelan and Terry Smith along with a handful of other members of the management team are here with me today. Our third quarter results reflect the start of a strong expected second half. We saw a second -- we saw quarter-over-quarter revenue climb 23% to $200 million adjusted EBITDA jump 99% to $61 million and free cash flow nearly double to $11 million. We are reiterating our full year production and cost guidance given our strong expected finish to the year driven by higher gold and silver prices continued solid performance from Palmarejo and Kensington strong fourth quarters at Rochester and Wharf and an improvement at Silvertip. Starting off on slide three. Some key highlights from the quarter were: the strong revenue and cash flow growth due to a 15% increase in our gold production and higher precious metals prices; a second consecutive quarter of positive free cash flow on the back of solid performance at Palmarejo and Wharf; the commissioning of the new crushing facility at Rochester; another solid quarter at Kensington reflecting the ongoing benefit of higher-grade ore from Jualin; and the significant amount of debt that was repaid and the bolstered liquidity at quarter end. As the quarterly results demonstrate 4 of our 5 operations are performing well.

Clearly Silvertip remains our biggest operational challenge. Once we're able to transition the operation from a consumer of cash to a generator of cash our overall financial performance will obviously be even stronger. Although Silvertip's third quarter production levels didn't reflect the same level of progress as prior quarters we are seeing steady improvement and believe we are nearing the completion of our commissioning efforts and will soon be accelerating our optimization and potential expansion initiatives. Before handing the call over to Terry I want to call your attention to a set of slides starting on slide 17 that highlight our commitment to partnering with the communities where we operate. These valued local partnerships have a tremendous impact on the people who matter the most our employees their families and local organizations and are integral to our overall strategy. Also I want to compliment the team for winning the 2019 Verdantix