Commercial Production Achieved
Coeur Mining, Inc. CDE proudly announced the commencement of commercial operations at its newly expanded Rochester silver and gold mine in Nevada. On Mar 7, the new three-stage crushing circuit and truck load-out facility were officially commissioned, propelling the crusher circuit to operate at an impressive average throughput of over 70,000 tons per day, soaring to 88,000 tons per day. This success culminated in the declaration of commercial production by the end of the first quarter.
The ongoing ramp-up is poised to reach the full planned capacity of 88,000 tons per day (approximately 32 million tons per year) by the first half of 2024. As the commissioning wraps up and the ramp-up progresses seamlessly, Coeur will shift its focus to mine optimization activities and development programs to maximize the value of this monumental, long-lasting asset.
Strides in Production and Projection
Upon achieving full operational status, it is expected that throughput levels will escalate to 2.5 times higher than seen previously, transforming Rochester into one of the globe’s largest open-pit heap leach operations. This landmark is set to make it America’s primary source of domestically produced and processed silver, acting as a substantial driver of CDE’s cash flow growth.
Financial Performance and Growth
In the fourth quarter of 2023, Coeur reported an adjusted loss of 2 cents per share, slightly deviating from the Zacks Consensus Estimate placed at a breakeven. The company also reported revenues of $262 million in the same quarter.
Market Performance Perspective
Despite industry growth of 34.7% in the past year, Coeur’s shares have steadily climbed by 15.3% during the same period.
Rankings and Other Industry Players
Presently holding a Zacks Rank #3 (Hold), Coeur stands alongside other notable players in the basic materials sector such as Ecolab Inc., Carpenter Technology Corporation, and Innospec Inc. Notably, Ecolab and Carpenter boast a Zacks Rank of #1 (Strong Buy) while Innospec sits at #2 (Buy).
Ecolab’s 2024 earnings are anticipated to reach $6.39 per share, reflecting a substantial 22.7% increase over the previous year, while Carpenter Technology forecasts earnings at $4 per share with a 1% upward shift in the last 60 days. Innospec projects earnings of $6.72 per share, indicating a year-on-year rise of 10.3%.
