Coeur strengthens its balance sheet for its expansion plan


“Nearly 80% of [the Rochester plan of operations amendment 11’s] The construction budget has been committed and the recently announced liquidity enhancements have provided the necessary funding and flexibility to support our priority of delivering POA 11 according to plan,” said Coeur President and CEO Mitchell J. Krebs.

Measures taken by Coeur to improve its liquidity included an increase in its gold hedging program to provide protection against price declines, an expanded revolving credit facility to $390 million and a stock offering of 100 million dollars in the market.

Coeur’s plan consists of three actions aimed at ensuring clarity of funding for Rochester’s expansion which, when completed, should generate strong free cash flow.

The company has spent about $283 million on the expansion and committed about $477 million in capital since the project began, representing 80% of the revised cost estimate of $597 million.

Canaccord Genuity Capital Markets analyst Dalton Baretto said strengthening its balance sheet was an important move for the miner, as CG believes liquidity issues have weighed heavily on Coeur’s share price this year. .

He said a 21% decline in Coeur’s share price compares to the middle grower group which is seeing an average decline of 2% while the senior group has seen an average rise of 16%.

The expansion is on track to be completed by the middle of next year, Coeur said.

Meanwhile, Heart’s first quarter production was 75,409 ounces of gold and 2.5 million ounces of silver. CG said gold and silver production was above their forecast of 73,000 ounces and 2.26 million ounces, respectively.

Core’s production forecast for 2022 is between 100,000 and 110,000 oz of Au and between 6.0 and 7.0 million ounces of Ag.

“The company reported GAAP net income from continuing operations of $8 million, or $0.03 per share. On an adjusted basis, Coeur reported EBITDA of $42 million, cash flow from operating ‘operating before changes in working capital of $24 million and a net loss from continuing operations of $14 million, or $0.05 per share,’ Coeur said.

NYSE-listed Coeur’s stock price was quoted at $3.87 on May 5.


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