Monday, August 06, 2018 6:27:15 AM
Maxx Chatsko, The Motley Fool July 26, 2018
What happened
Shares of Coeur Mining (NYSE: CDE) fell over 10% today after the company announced second-quarter 2018 earnings. The gold miner actually reported a relatively strong quarter, beating the average Wall Street expectation for earnings per share, and missing the average top-line expectation by only 1.7%, according to estimates compiled by Yahoo! Finance.
However, the company also reported its worst quarterly operating cash flow and free cash totals in over one year. Both were negative and well below the performance in recent periods. As of 3:20 p.m. EDT, the stock had settled to a 8.7% loss.
So what
The reported numbers from the cash flow statement are a bit surprising relative to production levels reported during the period. That's because Coeur Mining churned out 8.8 million silver equivalent ounces in the second quarter of 2018, or nearly 16% more compared to the year-ago period, which was announced on July 9 as part of a production update.
It wasn't enough to make Wall Street overlook operating cash flow of negative $1.3 million and free cash flow of negative $42.5 million -- both of them the lowest quarterly totals in any of the last five quarters at least. While the cash flow metrics aren't ideal, analysts may be forgetting that Coeur Mining boosted its full-year 2018 production guidance as part of the July 9 production update.
The company previously expected to produce 36 million to 39.4 million silver equivalent ounces for the year, but now expects 37.3 million to 40.5 million ounces on the same basis. The increased guidance is in part due to better-than-expected preliminary results from its Silvertip mine, which is expected to come online in the third quarter of 2018.
Now what
Coeur Mining stock has been stuck in first gear for several years now. Despite a relatively ambitious growth strategy to diversify away from silver and toward gold (all while boosting earnings and cash flow), progress has been slow. And although 2018 was expected to be accompanied by an uptick in capital expenditures, the market clearly isn't happy with sacrificing cash flow along the way. The long-term trajectory of the business doesn't appear to have been altered in light of the recent quarterly earnings announcement.
Recent CDE News
- Form 8-K - Current report • Edgar (US Regulatory) • 09/19/2024 08:30:06 PM
- Coeur Announces Achievement of Key Milestones at Expanded Rochester Mine • Business Wire • 09/12/2024 11:00:00 AM
- Coeur to Present at Gold Forum Americas • Business Wire • 09/10/2024 08:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:36:12 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/07/2024 08:35:02 PM
- Coeur Reports Second Quarter 2024 Results • Business Wire • 08/07/2024 08:30:00 PM
- US Index Futures Rise Amid Earnings Season Optimism, Oil Prices Rebound • IH Market News • 08/07/2024 09:49:12 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/11/2024 12:01:59 PM
- Expanded Rochester Mine Achieves Mid-Year Target Run Rates • Business Wire • 07/11/2024 11:00:00 AM
- Coeur Announces Second Quarter 2024 Earnings Call • Business Wire • 07/09/2024 08:30:00 PM
- Coeur Reports Continued Positive Results From Kensington’s Multi-Year Exploration Program • Business Wire • 06/27/2024 11:00:00 AM
- Coeur to Participate in Upcoming RBC Capital Markets Global Mining and Materials Conference • Business Wire • 06/06/2024 08:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 08:38:32 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/16/2024 12:14:26 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 09:06:06 PM
- Coeur to Participate in Upcoming Canaccord Global Metals & Mining Conference • Business Wire • 05/07/2024 08:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 08:35:46 PM
- Coeur Reports First Quarter 2024 Results • Business Wire • 05/01/2024 08:30:00 PM
- Coeur Publishes 2023 ESG Report • Business Wire • 04/23/2024 08:30:00 PM
- Coeur Announces First Quarter 2024 Earnings Call • Business Wire • 04/09/2024 08:30:00 PM
- Expanded Rochester Mine Achieves Commercial Production; Ramp-Up on Schedule • Business Wire • 04/08/2024 08:30:00 PM
- Coeur to Present at Gold Forum Europe • Business Wire • 04/04/2024 08:30:00 PM
- Form D - Notice of Exempt Offering of Securities • Edgar (US Regulatory) • 03/11/2024 08:11:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 10:55:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 10:55:10 PM
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