Coeur Mining, Inc. (NYSE:CDE) Q2 2022 Results Conference Call August 4, 2022 11:00 AM ET
Company Participants
Mitch Krebs - Chief Executive Officer
Mick Routledge - Senior Vice President and Chief Operating Officer
Tom Whelan - Senior Vice President and Chief Financial Officer
Aoife McGrath - Senior Vice President of Exploration
Conference Call Participants
Trevor Turnbull - Scotiabank
Mark Reichman - Noble Capital Markets
Brian MacArthur - Raymond James
Operator
Good morning, and welcome to the Coeur Mining Second Quarter 2022 Financial Results Conference Call. All participants will be in a 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 Mitch Krebs, President and CEO. Please go ahead.
Mitch Krebs
Good morning, and thank you for joining our second quarter earnings call. With me here in Chicago are Mick Routledge, Tom Whelan, Aoife McGrath, along with 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. Our second quarter was marked by solid top-line growth and continued progress at the Cornerstone Rochester POA 11 Expansion Project.
As highlighted on Slide 3 in the earnings deck, three of our four operating mines delivered strong production growth compared to the first quarter. Solid metal sales, coupled with some positive changes in working capital led to a strong rebound in quarterly operating cash flow as well. As we look toward the second half of the year, our operations remain on track to achieve our full year production guidance. On the cost side, inflationary pressures continue to impact our results, especially from sharply higher diesel costs. So we have made some minor adjustments to our 2022 cost guidance that Mick and Tom will review in more detail in a moment.
We also modified our full year guidance to reflect our decision to invest an additional $11 million in exploration during the second half to follow-up on recent positive drilling results at Kensington, Palmarejo and the Silvertip project, which Aoife will talk more about shortly. Most importantly, the ongoing expansion at Rochester is now at peak levels of activity, and remains on track to be completed mid next year. There are over 400 contractors going through the gate every day now. And several key milestones were achieved during the quarter, including the completion of major concrete pouring and the start of steel erection at the Merrill-Crowe facility and secondary crusher. Almost all components and equipment are now on site.