Coeur Mining, Inc. (NYSE:CDE) Q3 2022 Results Conference Call November 10, 2022 11:00 AM ET
Company Participants
Mitchell Krebs - President and CEO
Mick Routledge - SVP and COO
Tom Whelan - SVP and CFO
Aoife McGrath - EVP, Exploration
Conference Call Participants
Operator
Good morning, and welcome to the Coeur Mining Third Quarter 2022 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Mitchell Krebs, President and CEO. Please go ahead.
Mitchell Krebs
Good morning, and thanks for joining our third quarter earnings call. With me here in Chicago are Mick Routledge, Tom Whelan, Aoife McGrath, and several other members of our team.
Before I begin, please note our cautionary language on forward-looking statements in our slide deck and refer to our SEC filings, which are available on our website.
Starting off on slide 3, third quarter production results were in line driven by quarter-over-quarter production growth at Rochester, Kensington and Wharf. While cash flow in the quarter was negatively impacted by lower prices, higher consumable costs and lower grades at Palmarejo along with a $21 million noncash inventory adjustment at Rochester.
We’re set up for a strong fourth quarter to finish the year within our full year production and cost guidance ranges and look forward to delivering strong production and cash flow growth on the back of the Rochester expansion that is expected to be completed mid next year, followed by commissioning and ramp-up in the second half.
Turning to a few third quarter highlights, Rochester achieved an important milestone with the successful installation of pre-screens into the existing ex-pit crusher circuit. Since it was commissioned, the team has seen meaningful improvements in crush size and has been able to better manage the level of fines, which bodes well for the expansion as we transition from the existing operation to the newly expanded operation next year.
The expansion is advancing on schedule with overall completion now at 61%. We’ve updated the total capital estimate to incorporate the cost of adding pre-screens into the new crusher to factor in potential price and quantity risk related to steel, cement and labor needed to complete the project and to add contingency to cover remaining potential project risks.