Coeur Mining, Inc. (NYSE:CDE) Q2 2023 Earnings Call Transcript

Aoife McGrath: Yes. Thanks, Mick. We’ve also deployed some new technology on the actual drill rigs. They’re called Aquaguard and they prevent inflow into the hole. So we’re deploying those with pretty good success at the moment as well. And there’s this particular area where some structures seem to be more water bearing than others, and we’re mapping those out pretty rapidly and getting a much better understanding. So that makes that there’s a number of fronts we’re working on to mitigate that.

Mike Parkin: Okay. Sounds great. And then with respect to the Wharf land area expansion, is that going to see a conversion of any resources to reserves because of that? Or is it something that some more drilling? Like how should we kind of think about that mine life extending and the involvement of that.

Mitchell Krebs: Yes, I’ll start, Mick, then you can fill in. It doesn’t change the 8-year mine life that we have, but it’s obviously something we needed in order to begin the stripping and then the mining in 2024 in that Boston area. So getting that now gives us a chance to maybe get a little bit ahead on the stripping so that we can get in there. There’s some slightly better grade in Boston that will then come into the plan in 2024. Mick, anything you want to add?

Michael Routledge: Yes. And we already had a lot of that in our plan already because we made a good assumption that would get the permissions to be able to make that area because we have such a strong relationship and such a good track record around permitting and access to that land in the local environment. So we built it in, but that doesn’t mean that we will face some nice opportunities as we get into the mining in that area because we drill it enough to characterize it. And then once we start mining it, we’ll optimize it and investigate what else we’ve got there. But at the moment, in the plan and should be executed through next year.

Mike Parkin: And then more switching over towards the balance sheet. Can you give us a sense like you’ve announced this ATM this morning? We’ve seen quite a bit of activity recently with like debt-to-equity conversion. Can you give us a sense and you’ve also done some seemingly very well-timed hedges for both gold and silver as well? What’s your thoughts going forward? Do you feel like the funds from the ATM are sufficient to kind of get you over the hump in addition to the remaining room on the RCF? Or is there additional levers that you’re thinking of pulling that being maybe potential more debt-to-equity conversion, boosting prepaid, boosting hedges? Just looking for some general color there.

Mitchell Krebs: Yes. You kind of highlighted most of the levers that we have or tools that we have in the toolbox to make sure that we can manage our liquidity levels through last period of elevated capital. We feel like we’ve got the flexibility that we need now to get over, like you said, the hump and get to the other side of the Rochester expansion so that we can start to see some free cash flow and begin delevering the balance sheet in 2024. But Tom, do you want to add anything to the question.