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| Statement |
|---|
| Higher gold grades due to a greater contribution from Guadalupe in a concerted effort from the team led to a nice finish to the year |
| Another standout for the year was strong inferred resource growth at Silvertip with silver lead and zinc increasing 12%, 20% and 27%, respectively |
| And this along with our continually growing understanding of the system, makes us very confident of rapidly increasing the resource base over the next few years |
| Revenues jumped 35% based on 29% higher gold production and 34% higher silver production |
| This led to a more than doubling of adjusted EBITDA and fourth quarter operating cash flow, which reached its highest level since late 2020 |
| These results were driven largely by the stepped-up production levels at the expanded Rochester operation and by a strong finish to the year at Wharf |
| Kensington and Palmarejo also delivered consistent results to end the year, which enabled the company to achieve its full year production guidance |
| Combined, these drivers offer a highly differentiated value proposition that features production and cash flow growth from a stable platform of four North American operations, growing silver exposure, a declining cost profile, a strengthening balance sheet and significant exploration upside |
| Reserve grades also increased 5% driven mainly by excellent results from Lower Kensington |
| Our recent press release shows the opportunity for extremely high grades in the deposit |
| 2023 marked another successful year for exploration with the main priorities being replacement of depletion at Kensington, building the resource pipeline at other sites, and enhancing our ore body knowledge |
| Our roughly $245 million investment in exploration over the past five years continues to deliver tremendous results |
| 2024 guidance reflects higher expected gold production, setting the stage for a bounce-back year characterized by greater mine flexibility and continued development aimed at positioning the operation for a strong future |
| We were very pleased to announce yesterday that we have completed an extension of our revolving credit facility through February 2027, which is a strong external sign of confidence from our lenders in our future |
| The team finished the year off strong, producing 1.3 million ounces of silver and 20,000 ounces of gold in the fourth quarter, representing quarter-over-quarter increases of 120% and 345%, respectively, a sign of greater things to come with the new pad six and upscaled new Merrill-Crowe facility |
| Before turning the call over to Mick, I want to thank our entire team for their commitment and dedication last year, which has led the company to be very well positioned not only for this year, but well into the future |
| The foundation of Coeur’s success lies with our people and I also extend my gratitude and appreciation to every employee and contractor that contributed to a great finish for the year |
| Despite these challenges, the team at Palmarejo delivered over $15 million of free cash flow in the fourth quarter, its highest mark of the year |
| While these near-term catalysts play out, we’ll remain focused on further improving our industry-leading safety performance, delivering consistent results from all of our operations and investing in high-return, high-impact exploration |
| The teams were enormously successful at this |
| Coeur has made strides over the last few years in driving down injury frequency rates, overall severity and lost time injury rates, to take our place as a clear safety leader within the sector |
| In a year of limited exploration expenditures at Rochester, we still banked growth across all classes, achieving a 7% increase in reserves, a 16% increase in measured and indicated, and a 77% increase in inferred, all on a gold equivalent basis |
| We continue to regain footing with a good fourth quarter following an equally strong third quarter |
| This is the first time we've ever achieved back-to-back reserve growth, a clear indication that the multiyear drilling and development program is achieving its objectives |
| When we acquired Wharf, it had an estimated remaining mine life of about five years and today, after over 800,000 ounces of production, Wharf's reserves stand at over 760,000 ounces of gold with further exploration upside |
| Further enhancing our financial position, we have extended our hedging program to provide price certainty during the commissioning and ramp-up of Rochester in the first half of 2024 with nearly 95,000 ounces of gold hedged at an average forward price of $2,076 per ounce and roughly 3.1 million ounces of silver hedged at an average forward price of $25.16 per ounce |
| A year ago, I spoke on this call about our expectations for a strong bounce back year at Wharf in 2023, and I'm happy to say that's exactly what the team delivered |
| This level of production and sales led to quarterly revenues of $262 million and adjusted EBITDA of $64 million, which were 35% and 110% higher compared to the third quarter |
| Significant U.S.-based production growth, particularly silver production, and a transition to positive free cash flow followed by a period of sustained debt reduction |
| In fact, it was our strongest quarter in over three years |
| Statement |
|---|
| Silver production fell just below the low end of the guidance range due to a temporary inventory backlog at the new Merrill-Crowe plant right at the year end |
| You'll recall Kensington had a difficult first half beset by dewatering and paste backfill challenges |
| Lower metal sales are anticipated in the first quarter, consistent with the Rochester ramp-up and Wharf's seasonally driven slower first quarter |
| As a result of lower placement rates, while we completed crusher commissioning, we expect significantly lower gold and silver production levels in the first quarter |
| However, as Mick mentioned at Palmarejo, continuing inflationary pressure coupled with a strong Mexican peso are likely to present headwinds in the months ahead |
| Our unit costs for 2024 at Palmarejo have been guided to $1075 to $1250 per ounce of gold, which will likely lead to lower free cash flow in 2024 at Palmarejo, especially on the approximately 30,000 ounces to 40,000 ounces of gold where we only paid $800 an ounce due to the onerous Franco-Nevada gold stream |
| As we look at the second half of the year post ramp-up, we expect Rochester's unit costs to markedly decline to within a range of $14 to $16 per ounce of silver and $1,200 to $1,400 per ounce of gold, nearly 50% lower than recent levels |
| While I applaud those results, we must also recognize that redoubling our efforts is absolutely essential to sustaining and improving that track record |
| operations where we are seeing inflationary pressures moderating |
| The last three years have represented a period of heavy investment by the company, and we’ve repeatedly talked about a coming inflection point |
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