Coeur Mining, Inc. (NYSE:CDE) Q2 2024 Earnings Conference Call August 8, 2024 11:00 AM ET
Company Participants
Mitch Krebs - President & Chief Executive Officer
Mick Routledge - Senior Vice President & Chief Operating Officer
Tom Whelan - Senior Vice President & Chief Financial Officer
Aoife McGrath - Senior Vice President, Exploration
Conference Call Participants
Joseph Reagor - ROTH Capital Partners
Marc Ferrari - National Bank Finance
Operator
Good day and welcome to the Second Quarter 2024 Financial Results for Coeur Mining Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.
I would like now to turn the conference over to Mr. Mitch Krebs, President and Chief Executive Officer of Coeur Mining. Please go ahead.
Mitch Krebs
Hello everyone and thanks for joining our call. Before we start, I want to point out our cautionary language regarding forward-looking statements in today's slide deck and refer to our SEC filings on our website.
I'll kick off with some highlights on Slide 3 before turning the call over to the team, and then we'll open it up for questions.
The main focus during the second quarter was getting Rochester ramped up and positioning the company to make the transition to positive free cash flow in the second half of the year.
We were successful in that effort with Rochester now consistently crushing and placing around 90,000 tons per day, which should drive sharp production increases and unit cost reductions in the second half.
Rochester's silver and gold production both jumped nearly 40% in the second quarter, which was a great sign that the team out in Nevada is building momentum heading into the back half of the year. Mick will provide some additional details on Rochester in a few minutes.
Our three other operations are also on track for solid years as we pass the midway point. Palmarejo generated another strong free cash flow quarter; Wharf remained consistent and on plan; and Kensington is now establishing a good rhythm after a couple of years of elevated investment and implementing several operational enhancements, which Mick will cover in greater detail.
Our leading leverage to higher prices was on full display during the quarter. Prices in the second quarter were about 10% higher year-over-year, yet our quarterly adjusted EBITDA jumped 136%, and our LTM adjusted EBITDA increased 90% to $192 million.
On the back of Rochester's ramp-up, Kensington is set to have its own free cash flow inflection point in the second half of next year. The elevated levels of underground development and drilling over the past two years are expected to drop off mid next year, leaving Kensington positioned to deliver positive free cash flow with greater operational flexibility and a longer mine life. Mick and Aoife will both touch on the progress at Kensington.