Hot Stock Analysis: Coeur Mining Inc. (NYSE: CDE)

On Friday, Shares of Coeur Mining Inc. (NYSE: CDE) declined -2.13% to $3.68. The stock traded total volume of 2,978,730 shares lower than the average volume of 3.00M shares.

Coeur Mining, Inc. (CDE) recently stated fourth quarter 2018 financial results, counting revenue of $143.80M, adjusted EBITDA of $36.20M and cash flow from operating activities of $0.10M ($24.50M before changes in working capital). Counting $24.50M of non-cash write-downs, the Company stated GAAP net income from continuing operations of $0.40M, or $0.00 per share. On an adjusted basis, the Company stated net income of $16.10M, or $0.08 per share.

For the full year, Coeur stated revenue of $625.90M, adjusted EBITDA of $157.30M and cash flow from operating activities of $20.10M ($112.40M before changes in working capital). Counting $55.30M of non-cash write-downs, the Company stated a GAAP net loss from continuing operations of $49.00M, or $0.26 per share. On an adjusted basis1, the Company stated a net loss of $2.20M, or $0.01 per share. In addition to the non-cash write-downs in the fourth quarter noted above, the full-year figures also reflect (i) a modification to the deferred consideration received for the Company’s Bolivian partner sold in early 2018, (ii) the decommissioning of the in-pit crusher at Rochester, and (iii) an inventory adjustment at Silvertip during its first month of commercial production.

Financial Results:

Fourth quarter revenue of $143.80M was slightly lower contrast to the prior quarter. Average realized gold and silver prices for the quarter were $1,214 and $14.59 per ounce, respectively, or 6% higher and 1% lower quarter-over-quarter.

For the full year, the Company generated revenue of $625.90M contrast to $709.60M in 2017. Average realized gold and silver prices were $1,218 and $15.65, respectively, which were 1% higher and 8% lower year-over-year.

Costs applicable to sales were $116.60M and $441.00M for the fourth quarter and full year, respectively, relatively flat contrast to the same periods in the prior year. Lower overall costs applicable to sales were offset by inventory adjustments regarding concentrate at Silvertip, which totaled $18.00M and $26.70M for the fourth quarter and full year, respectively.

General and administrative expenses were $7.10M and $31.30M for the fourth quarter and full year, respectively, or 8% and 7% lower quarter-over-quarter and year-over-year. These decreases were mostly driven by lower employee-related expenses. Exploration expense for the fourth quarter and full year was $4.10M and $25.40M, respectively. The Company focused its resource expansion efforts on its highest, near-mine growth targets at Palmarejo, Kensington and Silvertip. See page 11 for further details.

During the fourth quarter, the Company recorded an income tax benefit of $36.20M; mostly because of the release of a valuation allowance on its U.S. deferred tax assets in accordance with U.S. GAAP. For the full year, the Company recorded an income tax benefit of $16.80M.

Operating cash flow of $0.10M and $20.10M for the fourth quarter and full year, respectively, was influenced by changes in working capital. Excluding changes in working capital, fourth quarter and full-year operating cash flow were $24.50M and $112.40M, respectively. Fourth quarter working capital was mostly driven by unfavorable movements in inventory, mainly from Silvertip and material that was influenced by RMC’s bankruptcy. Full-year working capital was also influenced by accounts receivable, mostly related to the timing of Mexican value-added tax refunds, as well as income and mining tax payments at Palmarejo associated with 2017 earnings.

Fourth quarter capital expenditures of $17.80M reduced 55% quarter-over-quarter mainly because of the declaration of commercial production at Silvertip. Full-year capital expenditures of $140.80M were relatively flat year-over-year. Sustaining and development capital expenditures accounted for about 60% and 40%, respectively, of the Company’s capital expenditures in 2018.

CDE has the market capitalization of $771.59M and its EPS growth ratio for the past five years was 47.70%. The return on assets ratio of the Company was -2.90% while its return on investment ratio stands at -2.20%. Price to sales ratio was 1.23 while 72.60% of the stock was owned by institutional investors.



Winfred Marion

Winfred Marion

I am Winfred Marion and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Digital Wall with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Basic Materials” category. Address: 2614 Kincheloe Road, Tigard, OR 97223, USA Phone: (+1) 503-443-0752 Email: winfred.marion@yourdigitalwall.com