Coeur Mining Q2 Earnings Call Flags Slower Canadian Ramp-Ups

CDE Resets Canadian Ramp-Up Timelines

Chairman, president and CEO Mitchell J. Krebs said that New Afton’s C-Zone should reach 16,000 tonnes per day early in the fourth quarter, about three months later than the original 2026 plan.

Executive vice president and COO Michael Routledge said that cave draw management remains focused on healthy propagation. New Afton’s nine-month gold guidance fell to 50,000-60,000 ounces from 60,000-80,000, while copper guidance dropped to 40-50 million pounds from 50-65 million.

At Rainy River, Routledge said that underground rates improved from 2,300 tonnes per day in the second quarter to about 3,300 in July, with 5,000 targeted by year-end. Nine-month gold guidance fell to 190,000-230,000 ounces from 230,000-275,000.

Coeur Builds the Case for a Stronger Second Half

Routledge said that Rochester’s crusher delivered a record 6.8 million tonnes in the quarter, with 97% passing through all three crushing stages. Phase 2A of the leach-pad expansion was completed.

CEO Krebs said that higher grades, steadier crushing and fresh liner should support a large second-half improvement at Rochester. In Q&A, he said gold should arrive faster in the third quarter, while silver should step up more sharply in the fourth quarter.

Routledge also said Wharf returned to normal operations after repairs following the November crusher fire. Full-year guidance remains unchanged across all five legacy operations.

CDE Keeps Cash Flow Ambitions Intact

Executive vice president and CFO Thomas Whelan said Coeur still expects about $2.3 billion of adjusted EBITDA and $1.5 billion of free cash flow in 2026, using updated assumptions of $4,000 gold, $60 silver and $6 copper.

Second-quarter adjusted earnings of $0.12 per share missed the Zacks Consensus Estimate of $0.22, while revenues of $1.09 billion missed the $1.24 billion estimate. Free cash flow reached a record $388 million.

Whelan said that a $140 million noncash inventory purchase-price adjustment reduced second-quarter earnings by $0.10 per share. Management expects the remaining $38 million impact in the third quarter, leaving the fourth quarter cleaner.

Coeur Balances Returns With Organic Growth

Krebs said that the expanded $750 million repurchase program combines automatic buying during blackout periods with opportunistic purchases when management views the stock as undervalued. Coeur had repurchased $121 million of shares through July 31.

Whelan added that cash reached $1.1 billion at quarter-end. Coeur paid its first dividend in 30 years and retired $39 million of higher-cost capital lease debt.

Krebs said that growth spending centers on brownfield exploration, New Afton’s K-Zone, Silvertip studies, East Rochester, Palmarejo exploration outside the Franco-Nevada stream area and longer-term opportunities at Rainy River.

CDE Faces Detailed Questions on Execution

A TD Cowen analyst pressed management on New Afton’s reset and Rainy River’s underground contractor. CEO Krebs replied that the New Afton change was primarily timing-related, while Rainy River’s short-term gaps involved trucks, personnel availability and infrastructure.

A CIBC analyst asked about Rainy River’s ramp cadence. Krebs said that the move from July’s roughly 3,300 tonnes per day toward 5,000 by year-end should be fairly linear.

A Raymond James analyst asked about second-half cash-flow weighting. CEO Krebs said that a roughly 40-60% split between the third and fourth quarters was reasonable, while Whelan expects third-quarter capital spending and exploration to be heavier.

Coeur Stays Focused on Operational Delivery

CEO Krebs framed the rest of 2026 around higher production, stronger cash generation, capital returns and Canadian integration. Management’s outlook remains tied to executing the New Afton and Rainy River ramps.

Coeur also continues to fund exploration while preserving balance-sheet flexibility for organic projects and shareholder returns.

CDE’s Zacks Signals Remain Cautious

CDE carries a Zacks Rank #5 (Strong Sell) at present, indicating unfavorable earnings-estimate revision trends over the Zacks Rank’s one-to-three-month horizon. Its Growth Score of B is its strongest style reading against a Value Score of D, a Momentum Score of C and a VGM Score of D.

The Zacks Style Score is designed to complement the Rank, with A or B scores most favorable alongside a Zacks Rank #1 (Strong Buy) or 2 (Buy). CDE’s current combination lacks that alignment, although the Zacks Rank can change as analysts revise estimates after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.

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