Coeur Mining, Inc. (NYSE:CDE) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 10:00 am ET
Good morning. And welcome to the Coeur Mining Second Quarter 2020 Financial Results Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded.
I would now like to turn the conference over to Paul DePartout. Please go ahead.
Thank you, and good morning. Welcome to Coeur Mining's second quarter earnings conference call. Our results were released after yesterday's market close and a copy of the press release and slides 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 first quarter 10-Q and 2019 10-K.
Now, I'll turn it over to Mitch.
Mitch J. Krebs
Thanks, Paul. And good morning, everyone. Thanks for joining our call. I first like to introduce everyone to Mick Routledge, who joined us last month as our Chief Operating Officer. As we show on slide three in today's presentation, Mick is an accomplished leader and brings a lot of great experience to the company, which will help us improve our operational planning and execution.
Later in the call, he'll give you his initial thoughts on the operations, touch on some of the highlights from the quarter and summarize the key operational priorities looking ahead. Terry Smith is also on the line and has now transitioned to his new role as Chief Development Officer where he is overseeing our major projects and helping to advance our longer term growth pipeline. And in addition to Mick and Terry, Tom Whelan and several other members of the management team are also on the line. Second quarter cashflow was stronger than the first quarter despite losing 45 days of production and cash flow from Palmarejo, our largest operation due to the Mexican government's mandated suspension of mining activities as a result of the COVID-19 pandemic. However, the rest of our operating portfolio all located in the U.S. continued operating and two of them Kensington and Wharf delivered strong quarters and allowed us to generate some solid overall results and achieved several meaningful accomplishments that I'll quickly highlight and are summarized on slide four.
We successfully and safely restarted Palmarejo and expect it to generate strong free cash flow during the remainder of the year. As I mentioned our Wharf and Kensington gold operations both had very strong quarters. Kensington's free cash flow more than tripled and Wharf's free cash flow increased nearly nine fold on the back of a higher gold price and a 60% increase in production. We expect both assets will continue delivering strong gold production and free cash flow throughout the second half of 2020. Out in Nevada, we're set to break ground at Rochester next month on the POA 11 expansion. Construction is scheduled to be