Coeur Mining, Inc. (CDE): Business Model Canvas [11-2024 Updated]

Coeur Mining, Inc. (CDE) operates within the dynamic landscape of precious metals, focusing on both gold and silver extraction. Understanding its business model canvas reveals the intricate web of key partnerships, essential activities, and robust value propositions that drive its success. From strategic alliances with equipment suppliers to a commitment to sustainable practices, Coeur Mining is positioned to capitalize on growth opportunities in the mining sector. Dive deeper to explore how this company navigates the complexities of the industry and generates value for its stakeholders.

Coeur Mining, Inc. (CDE) - Business Model: Key Partnerships

Strategic alliances with mining equipment suppliers

Coeur Mining has established strategic partnerships with leading mining equipment suppliers to enhance operational efficiency and reduce costs. These alliances are crucial for securing the latest technology and equipment necessary for effective mining operations.

For example, Coeur has collaborated with suppliers such as CAT (Caterpillar Inc.) and Komatsu Ltd. to procure advanced machinery that improves productivity. In 2024, Coeur reported capital expenditures of approximately $135.5 million, which included significant investments in mining equipment.

Collaborations with local governments for regulatory compliance

Coeur Mining actively collaborates with local governments to ensure compliance with mining regulations and environmental standards. These partnerships are essential for obtaining necessary permits and maintaining operational licenses at its mining sites in the U.S. and Mexico. In 2024, Coeur has focused on enhancing relationships with regulatory bodies, which aided in the successful acquisition of mining concessions adjacent to the Palmarejo mine for a total consideration of approximately $25 million, including immediate cash payments and deferred amounts.

Partnerships with exploration firms for resource identification

To bolster its exploration efforts, Coeur Mining has formed partnerships with exploration firms, which are vital for identifying new resource opportunities. This collaboration allows Coeur to leverage external expertise and technology in geological assessments. For instance, Coeur's exploration expenses totaled approximately $21.1 million in the first nine months of 2024, reflecting its commitment to resource expansion.

The partnerships also facilitate access to advanced exploration technologies, enabling Coeur to enhance its resource identification capabilities across its mining properties.

Joint ventures for shared project risk and expertise

Joint ventures represent a significant aspect of Coeur's strategy to share risks and combine expertise in large-scale mining projects. One notable example is Coeur's joint venture with Pan American Silver Corp. at the Palmarejo mine, which helps distribute financial and operational risks associated with mining activities. In 2024, Coeur has reaffirmed its joint venture commitments, which are instrumental in achieving production targets.

Additionally, Coeur has announced an agreement to acquire SilverCrest Metals Inc. for approximately $1.7 billion, expected to close in the first quarter of 2025. This acquisition is anticipated to enhance Coeur's operational capabilities and resource base while sharing the project risk associated with the integration.

Partnership Type	Partner	Focus Area	Financial Impact (2024)
Equipment Supplier	Caterpillar Inc.	Mining Equipment	$135.5 million (Capital Expenditures)
Government Collaboration	Local Governments	Regulatory Compliance	$25 million (Mining Concessions)
Exploration Partnership	Exploration Firms	Resource Identification	$21.1 million (Exploration Expenses)
Joint Venture	Pan American Silver Corp.	Shared Project Risk	$1.7 billion (Acquisition of SilverCrest)

Coeur Mining, Inc. (CDE) - Business Model: Key Activities

Gold and silver extraction from multiple sites

Coeur Mining operates multiple mining sites, producing significant quantities of gold and silver. In the third quarter of 2024, the company reported:

• Gold ounces produced: 94,993 ounces
• Silver ounces produced: 3,020,566 ounces
• Gold ounces sold: 96,913 ounces
• Silver ounces sold: 3,004,501 ounces

The average realized prices for the third quarter of 2024 were:

• Gold: $2,309 per ounce
• Silver: $29.86 per ounce

These figures showcase the company’s robust production capabilities across its operational portfolio, which includes sites like Palmarejo, Rochester, Kensington, and Wharf.

Exploration for new mineral deposits

Coeur Mining actively invests in exploration to identify new mineral deposits. In the first nine months of 2024, the exploration expense totaled:

• Exploration expense: $21.1 million

This investment supports the company’s goal to increase mineral resources, particularly at the Silvertip project, where 376 meters of underground mine development were completed.

Environmental management and compliance

Environmental management is a critical aspect of Coeur Mining's operations. The company engages in practices to ensure compliance with environmental regulations, particularly in its mining activities in the U.S. and Mexico. The company’s initiatives include:

• Environmental management costs: Part of the overall operational expenses, which totaled approximately $440.6 million in costs applicable to sales for the nine months ended September 30, 2024.

These costs reflect the company's commitment to sustainable mining practices and adherence to environmental regulations across its operations.

Financial management and reporting

Coeur Mining maintains rigorous financial management and reporting processes. Key financial highlights for the third quarter of 2024 include:

• Revenue: $313.5 million
• Net income: $48.7 million, or $0.12 per diluted share
• Adjusted EBITDA: $126 million
• Total debt: $605.2 million

The company reported an increase in cash provided by operating activities to $111.1 million, showcasing strong operational performance. The financial data for the nine months ended September 30, 2024 highlights:

Metric	Value
Revenue	$748.6 million
Net income	$21.0 million
Gold ounces sold	255,261 ounces
Silver ounces sold	8,197,663 ounces

Coeur Mining's financial management strategies are designed to optimize its capital structure and maintain liquidity, evidenced by a total liquidity of $222 million, including $78 million in cash as of September 30, 2024.

Coeur Mining, Inc. (CDE) - Business Model: Key Resources

Operational mines in the U.S. and Mexico

Coeur Mining operates several key assets, including:

• Palmarejo: Located in Mexico; production of 86,430 gold ounces and 5,199,839 silver ounces for the nine months ended September 30, 2024.
• Rochester: Another significant asset in Nevada, producing 23,521 gold ounces and 2,818,930 silver ounces in the same period.
• Kensington: Located in Alaska, with production of 69,522 gold ounces.
• Wharf: South Dakota operation, producing 75,788 gold ounces.

Overall, Coeur's total gold production for the nine months ended September 30, 2024, reached 255,261 ounces, while silver production totaled 8,197,663 ounces.

Skilled workforce in mining and geology

Coeur Mining emphasizes the importance of a skilled workforce in mining and geology:

• Expertise in mining operations and geological assessments ensures efficient extraction and processing of resources.
• The company continues to invest in training and development programs to enhance workforce capabilities, which is critical for operational efficiency and safety.

Financial resources, including cash reserves and credit facilities

As of September 30, 2024, Coeur Mining reported:

• Cash and cash equivalents of $78.7 million.
• Available credit under a revolving credit facility (RCF) of $145.4 million, with total liquidity reaching $222 million.
• Total debt of $605.2 million, with a net debt to EBITDA ratio below 2.0x.

Advanced mining technology and equipment

Coeur Mining employs advanced mining technology to enhance operational efficiency:

• Completion of a three-stage crushing circuit at Rochester, significantly improving throughput rates to over 88,000 tons per day.
• Investment in new leach pads and crushing facilities to optimize gold and silver recovery.
• Continued capital expenditures of $135.5 million for the nine months ended September 30, 2024, primarily related to operations at Rochester and exploration activities.

Mine Location	Gold Production (oz)	Silver Production (oz)	Capital Expenditures ($M)
Palmarejo	86,430	5,199,839	149.976
Rochester	23,521	2,818,930	103.063
Kensington	69,522	—	118.109
Wharf	75,788	—	76.308
Total	255,261	8,197,663	447.456

Coeur Mining, Inc. (CDE) - Business Model: Value Propositions

High-quality gold and silver production

Coeur Mining, Inc. is primarily focused on gold and silver production, with significant operational assets in the United States and Mexico. As of September 30, 2024, the company produced a total of 94,993 ounces of gold and 3.0 million ounces of silver, marking a 21% increase in gold production and a 15% rise in silver production compared to the previous quarter. The average realized price per gold ounce was $2,309, while the average realized price for silver was $29.86 during the same period.

Commitment to sustainable mining practices

Coeur Mining emphasizes sustainable mining practices in its operations. The company has implemented various initiatives to minimize environmental impact and enhance community engagement. This includes reducing greenhouse gas emissions and optimizing water usage. For instance, Coeur has committed to achieving net-zero emissions by 2050 and is actively working on projects that support biodiversity.

Strong operational performance and cost management

Coeur Mining has demonstrated strong operational performance, characterized by effective cost management. In Q3 2024, the company reported cash costs applicable to sales (CAS) per gold ounce at $828, a decrease from previous periods. The company has maintained healthy margins, with an adjusted EBITDA of $126 million for the quarter, reflecting a 140% increase quarter-over-quarter. The focus on lowering costs while increasing production has resulted in a net income of $48.7 million for the quarter.

Potential for growth through acquisitions and exploration

Coeur Mining is strategically positioned for growth through potential acquisitions and ongoing exploration efforts. On October 4, 2024, the company announced an agreement to acquire SilverCrest Metals Inc. for approximately $1.7 billion, which is expected to enhance its silver production capabilities significantly. Additionally, Coeur has allocated $40-$50 million for exploration expenses in 2024, focusing on increasing mineral resources at its Silvertip project.

Category	Q3 2024 Results	Comparison Q2 2024	Comparison Q3 2023
Gold Production (oz)	94,993	78,696	216,062
Silver Production (oz)	3,020,566	2,637,950	7,200,410
Average Realized Gold Price ($/oz)	$2,309	$2,003	$1,796
Average Realized Silver Price ($/oz)	$29.86	$26.20	$23.97
Net Income ($ millions)	$48.7	$1.4	($78.1)
Adjusted EBITDA ($ millions)	$126.0	$52.4	$78.0

Coeur Mining, Inc. (CDE) - Business Model: Customer Relationships

Direct sales to precious metals buyers

Coeur Mining, Inc. engages in direct sales of precious metals, primarily gold and silver, to a range of buyers including industrial users, jewelers, and investors. For the third quarter of 2024, the company reported metal sales totaling $313.5 million, with gold ounces sold amounting to 96,913 and silver ounces sold at 3,004,501.

Long-term contracts with industrial customers

The company has established long-term contracts with industrial customers, which provide stability and predictable revenue streams. The average realized price per gold ounce sold in the third quarter of 2024 was $2,309. This pricing strategy is supported by the company's ability to secure contracts that align with market demand and supply conditions.

Investor relations focused on transparency and communication

Coeur Mining maintains a strong focus on investor relations, emphasizing transparency and regular communication. The company reported a GAAP net income of $48.7 million, or $0.12 per diluted share for the third quarter of 2024. The effective communication of financial performance and operational updates is crucial in building investor confidence and maintaining shareholder engagement.

Community engagement initiatives to build goodwill

Coeur Mining actively engages with the communities surrounding its operations to foster goodwill and social responsibility. The company’s community initiatives include environmental stewardship and local economic support. For instance, the company has committed to various community engagement programs, which are essential for maintaining its social license to operate. The total capital expenditures for community and environmental initiatives in the first nine months of 2024 reached approximately $135.5 million, highlighting the company's commitment to sustainable practices.

Category	Q3 2024 Performance	Year-to-Date Performance
Metal Sales (in millions)	$313.5	$748.6
Gold Ounces Sold	96,913	255,261
Silver Ounces Sold	3,004,501	8,197,663
Average Realized Price per Gold Ounce	$2,309	$2,075
Net Income (in millions)	$48.7	$21.0
Capital Expenditures (in millions)	--	$135.5

Coeur Mining, Inc. (CDE) - Business Model: Channels

Direct sales through metal exchanges

Coeur Mining directly sells its gold and silver through various metal exchanges. In the nine months ended September 30, 2024, the company reported metal sales of $748.6 million, with gold sales contributing $529.6 million and silver sales amounting to $218.9 million. The company sold 255,261 gold ounces and 8.2 million silver ounces during this period.

Online platforms for investor relations and information

Coeur Mining utilizes its website and online investor relations platforms to communicate with stakeholders. The company raised approximately $23.7 million through a private placement offering of 7.7 million shares. This online engagement is crucial for disseminating financial reports, operational updates, and investor presentations, enhancing transparency and accessibility for shareholders and potential investors.

Industry conferences and trade shows for networking

Coeur Mining participates in various industry conferences and trade shows to build relationships and network with investors, analysts, and other stakeholders. Participation in such events is integral for promoting their projects and sharing insights into market trends. The company’s strategic engagement at these events helps to bolster its market presence and investor confidence.

Partnerships with financial institutions for funding

Coeur Mining has established partnerships with financial institutions to support its funding needs. As of September 30, 2024, the company had a revolving credit facility (RCF) of $400 million. This facility allows for financial flexibility and supports ongoing operations and development projects. The company reduced its outstanding RCF balance by $50 million during the third quarter of 2024.

Channel	Details	Financial Impact
Direct Sales	Metal exchanges	Gold sales: $529.6M, Silver sales: $218.9M
Online Platforms	Investor relations website	Funds raised: $23.7M from 7.7M shares
Industry Conferences	Networking with stakeholders	Enhances market presence and investor confidence
Partnerships	Financial institutions for funding	RCF of $400M, reduced balance by $50M

Coeur Mining, Inc. (CDE) - Business Model: Customer Segments

Precious metals investors and collectors

Coeur Mining serves precious metals investors and collectors by providing access to gold and silver production. In the third quarter of 2024, Coeur reported a total gold production of 94,993 ounces and silver production of 3.0 million ounces, which represents a significant portion of their output aimed at this customer segment. The company achieved an average realized price of $2,309 per gold ounce and $29.86 per silver ounce during the same period.

Industrial users of silver and gold

Coeur Mining also targets industrial users of silver and gold, as these metals are essential in various applications, including electronics and manufacturing. In 2024, silver production at Coeur's facilities was particularly robust, with 8.2 million ounces produced in the first nine months. The company maintains a focus on optimizing production costs, with costs applicable to sales for silver averaging $13.84 per ounce.

Institutional investors seeking mining stock exposure

Institutional investors form a critical customer segment for Coeur Mining. The company reported a net income of $21.0 million or $0.05 per diluted share for the first nine months of 2024. This performance, coupled with a total debt of $605.2 million, provides institutional investors with insights into the financial health and growth potential of Coeur Mining. The company’s strategic initiatives, including the acquisition of SilverCrest, are aimed at enhancing value for this segment.

Local communities benefiting from mining operations

Coeur Mining engages with local communities where its operations are based, particularly in the U.S. and Mexico. The company’s operational footprint includes significant contributions to local economies through job creation and community investment. In 2024, Coeur reported total capital expenditures of $124 to $158 million aimed at sustaining and developing operations, which directly benefits local communities. The company has made a commitment to responsible mining practices, fostering positive relationships with community stakeholders.

Customer Segment	Key Metrics	Financial Impact
Precious metals investors and collectors	Gold production: 94,993 oz Silver production: 3.0 million oz	Average realized price: $2,309/oz gold Average realized price: $29.86/oz silver
Industrial users of silver and gold	Silver production: 8.2 million oz (9M 2024)	Cost applicable to sales for silver: $13.84/oz
Institutional investors	Net income: $21.0 million Net income per share: $0.05	Total debt: $605.2 million
Local communities	Capital expenditures: $124 - $158 million	Investment in local economies through job creation

Coeur Mining, Inc. (CDE) - Business Model: Cost Structure

Operational costs for mining and processing

Coeur Mining, Inc. reported costs applicable to sales (CAS) per gold ounce at $950 to $1,150 for Palmarejo, $1,500 to $1,700 for Rochester, $1,525 to $1,725 for Kensington, and $950 to $1,050 for Wharf. The costs applicable to sales for gold and silver ounces produced were as follows:

Mine	Gold CAS ($/oz)	Silver CAS ($/oz)
Palmarejo	$950 - $1,150	$15.50 - $16.50
Rochester	$1,500 - $1,700	$18.00 - $20.00
Kensington	$1,525 - $1,725	N/A
Wharf	$950 - $1,050	N/A

For the nine months ended September 30, 2024, Coeur’s total costs applicable to sales increased by $6.9 million, or 2%, primarily due to the increase in gold and silver ounces sold.

Capital expenditures for equipment and infrastructure

Coeur Mining's capital expenditures for the nine months ended September 30, 2024 were $135.5 million, a decrease from $271.9 million in the previous year. The specific capital expenditures were allocated as follows:

Quarter	Capital Expenditures ($ million)
Q1 2024	$58.9
Q2 2024	$42.0
Q3 2024	$34.6

Notably, the capital expenditures were primarily related to expansion construction and ramp-up activities at Rochester as well as underground development at Palmarejo and Kensington.

Exploration and development costs

Exploration expenses totaled $21.1 million for the first nine months of 2024, significantly up from the previous year, reflecting a 115% increase. The breakdown of exploration and development costs was as follows:

Mine/Project	Exploration Costs ($ million)
Palmarejo	$8.0
Kensington	$6.0
Wharf	$3.0
Silvertip	$4.1

In addition, ongoing carrying costs at Silvertip totaled $6.1 million in 2024, down from $13.6 million in the previous year.

Administrative and regulatory compliance expenses

General and administrative expenses increased by $5.2 million, or 17%, to $35.7 million for the first nine months of 2024. The administrative expenses included:

Expense Category	Amount ($ million)
Employee Incentives	$15.0
Legal Costs	$10.0
Outside Services	$10.7

Regulatory compliance costs were embedded within the general and administrative expenses, and specific figures were not disclosed separately.

Coeur Mining, Inc. (CDE) - Business Model: Revenue Streams

Sales of gold and silver products

Coeur Mining, Inc. generates significant revenue from the sale of gold and silver products. For the nine months ended September 30, 2024, gold sales amounted to $529.6 million, while silver sales reached $218.9 million, resulting in total metal sales of $748.6 million. This represents a 34% increase compared to the same period in 2023, driven by an 18% increase in gold ounces sold and a 15% increase in silver ounces sold.

In the third quarter of 2024, Coeur sold 96,913 gold ounces and 3.0 million silver ounces, contributing to a revenue of $313.5 million for the quarter. The average realized price per gold ounce was $2,309 and for silver, $29.86, reflecting a robust market demand for these precious metals.

Period	Gold Sales ($ million)	Silver Sales ($ million)	Total Metal Sales ($ million)
Q3 2024	223.8	89.7	313.5
9 Months 2024	529.6	218.9	748.6
9 Months 2023	387.9	171.2	559.1

Potential revenue from joint ventures and partnerships

Coeur Mining actively explores opportunities for joint ventures and partnerships that can enhance its operational capabilities and market reach. The company announced an agreement to acquire SilverCrest Metals Inc. in October 2024 for approximately $1.7 billion. This acquisition is expected to create a leading global silver company and enhance Coeur's cost and cash flow profile.

Such strategic partnerships not only provide immediate revenue potential but also expand the company's resource base and operational efficiencies, particularly in silver production, which is a key focus area for growth.

Income from investments and financial instruments

Coeur Mining also generates income from investments and financial instruments. The company reported a $5.2 million recognition of FT Premium Liability income, which is derived from its financial strategies involving flow-through shares. Additionally, the company has maintained a liquidity position with $78.7 million in cash and cash equivalents as of September 30, 2024, which supports its operational and investment activities.

Exploration success leading to new resource development

Coeur Mining invests significantly in exploration, which is critical for future revenue streams. The exploration expenses for the first nine months of 2024 totaled $21.1 million, focusing on increasing mineral resources at its Silvertip property. This investment aims to enhance resource development, which can lead to increased production of gold and silver, thereby contributing to future sales revenue.

Successful exploration efforts have historically led to higher production rates. For instance, the company reported a 24% increase in gold production and a 38% increase in silver production in 2024 due to successful ramp-up activities.

Type of Revenue	Amount ($ million)
FT Premium Liability Income	5.2
Exploration Expenses	21.1
Cash and Cash Equivalents	78.7

Updated on 16 Nov 2024

Resources:

1. Coeur Mining, Inc. (CDE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Coeur Mining, Inc. (CDE)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Coeur Mining, Inc. (CDE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.