Coeur Mining's Q1 2025 Results Signal a New Era of Growth and Financial Strength

Coeur Mining (CDE) has delivered a transformative quarter, with its Q1 2025 earnings report showcasing a company in full operational and financial ascendance. The results underscore a strategic shift from debt-heavy growth to a high-margin, low-leverage model, positioning Coeur as a standout performer in the precious metals sector.

Financial Performance: A Tripling of Adjusted EBITDA in Two Years

Coeur’s Q1 2025 revenue soared to $360.1 million, a 19% quarterly increase and a 69% year-over-year jump. This growth was fueled by rising production volumes and higher metal prices, with adjusted EBITDA tripling to $148.9 million compared to Q1 2023. More strikingly, twelve-month adjusted EBITDA hit $444 million, up from just $102 million two years prior, signaling a structural shift in profitability.

The company’s deleveraging efforts also shine. Net debt dropped to $498.3 million, with net leverage falling to 0.9x, thanks to a $85 million RCF debt repayment during the quarter. Even after one-time outflows totaling $130 million (including taxes and transaction costs), free cash flow remained positive at $17.6 million, reinforcing Coeur’s path to a net cash position by 2026.

Operational Excellence: Silver Production Surges, Las Chispas Delivers

Coeur’s operational prowess is evident in its silver production, which rose 17% quarter-over-quarter to 3.7 million ounces—a 44% year-over-year increase. The newly acquired Las Chispas mine contributed 7,175 ounces of gold and 714,239 ounces of silver in its first 1.5 months of operation, proving its low-cost potential ($744/oz gold, $8.38/oz silver). This asset, now fully integrated, is the crown jewel of Coeur’s portfolio, expected to drive 42,500–52,500 oz gold and 4.25–5.25 million oz silver annually.

Gold production remained stable at 86,766 ounces, with Rochester and Palmarejo mines performing in line with expectations. Cost metrics also improved: silver’s adjusted CAS fell 16% to $14.28/oz, while gold’s CAS rose modestly to $1,330/oz, reflecting higher silver sales volume.

Strategic Priorities: Debt Reduction and High-Return Exploration

CEO Mitchell Krebs emphasized three pillars for 2025:
1. Debt Paydown: With free cash flow projected at $75–$100 million per quarter, Coeur aims to eliminate its remaining RCF debt and target a net cash position by 2026.
2. Mine Expansion: $22 million in exploration spending will focus on Las Chispas’ Augusta vein and Palmarejo’s Hidalgo-Libertad corridor, aiming to extend mine lives and boost reserves.
3. Operational Discipline: Sustaining Rochester’s post-expansion efficiency and optimizing costs across all mines remain critical.

Outlook: 2025 Guidance Sets the Stage for Record Performance

Coeur’s full-year 2025 targets are ambitious yet achievable:
- Gold production: 380,000–440,000 oz (up 12% year-over-year).
- Silver production: 16.7–20.3 million oz (a 44% increase).
- Adjusted EBITDA: Expected to exceed $700 million, up from $444 million in 2024.

With Las Chispas fully operational and Palmarejo’s costs under control, Coeur is poised to outperform even these targets. The company’s low-cost profile—especially at Las Chispas—positions it to thrive even if metal prices moderate.

Conclusion: A Buy at Current Levels with Long-Term Upside

Coeur Mining’s Q1 results are a clarion call for investors: this is a fundamentally transformed company. With adjusted EBITDA tripling in two years, net leverage near investment-grade levels, and Las Chispas driving margin expansion, Coeur is now a low-risk, high-reward play in the precious metals space.

The stock currently trades at 10.5x 2025E EBITDA, a valuation that appears undemanding given its growth trajectory. Key catalysts include further debt reduction, exploration success at Las Chispas, and rising silver demand from industrial sectors.

For investors seeking exposure to a mining company with a clear path to profitability and deleveraging, Coeur Mining is a compelling buy. With a $70–$100 million quarterly free cash flow runway and a $700+ million EBITDA target, CDE is primed to deliver outsized returns in the years ahead.

Data as of Q1 2025. Past performance does not guarantee future results.