Executive Summary / Key Takeaways

• Coeur Mining, Inc. is at a significant inflection point, transitioning from a period of heavy investment to a phase of robust free cash flow generation and strategic growth, underscored by record financial performance in Q3 2025 and the transformative acquisition of New Gold (NG).
• Operational excellence, particularly the successful ramp-up of the Rochester expansion and the seamless integration of Las Chispas, is driving substantial increases in gold and silver production and significantly improving profitability margins.
• The company is rapidly strengthening its balance sheet, with net debt to LTM Adjusted EBITDA at 0.1x as of Q3 2025 and an expectation to achieve a net cash position by year-end 2025, well ahead of schedule, enabling future capital returns.
• Coeur's strategic focus on North American assets, combined with its optimized heap leach technology and advanced exploration methodologies, provides a competitive edge and a fertile pipeline for organic growth, further solidified by the New Gold acquisition which positions it as a top-tier global producer.
• Investors should monitor continued operational consistency at Rochester, the successful integration of New Gold, and the company's capital allocation decisions, as these factors will be crucial in realizing Coeur's full potential in a favorable metals price environment.

A Century of Evolution and Strategic Transformation

Coeur Mining, Inc. (NYSE:CDE), with a history spanning nearly a century since its incorporation in 1928, is undergoing a profound strategic transformation, repositioning itself as a larger-scale, growing, and lower-cost silver and gold producer. The company's journey has been marked by methodical expansion and strategic acquisitions, culminating in a balanced portfolio of North American assets. This evolution has been particularly evident over the past decade, with Coeur more than tripling its land positions around existing operations, laying the groundwork for sustainable organic growth.

The company's overarching strategy centers on leveraging its diversified asset base across the United States, Mexico, and soon Canada, to capitalize on a favorable precious metals market. A pivotal moment arrived with the acquisition of SilverCrest Metals Inc. (SILV) in February 2025, which seamlessly integrated the high-grade Las Chispas operation into Coeur's portfolio. This move significantly bolstered Coeur's gold and silver reserves and expanded its footprint in a familiar jurisdiction. Further solidifying its strategic intent, Coeur announced on November 3, 2025, a definitive agreement to acquire New Gold Inc. in an all-stock transaction valued at approximately $7 billion. This transformative deal is set to create a new entity with seven North American operations, positioning the combined company among the top 10 global precious metals producers and top five silver producers. The combined entity is projected to generate $3 billion of expected EBITDA and $2 billion of expected free cash flow in 2026, from an anticipated production of 20 million ounces of silver, 900,000 ounces of gold, and 100 million pounds of copper. This aggressive expansion underscores Coeur's ambition to achieve market leadership and enhance shareholder value through scale and operational synergy.

Technological Edge: Optimizing Extraction and Discovery

Coeur Mining's operational effectiveness is significantly enhanced by its strategic application and continuous optimization of mining technologies, particularly in heap leach processing and advanced exploration. While not relying on a single, proprietary "black box" technology, the company's disciplined approach to process engineering and geological understanding provides a tangible competitive advantage.

At its heap leach operations, such as Rochester and Wharf, Coeur employs integrated steps for scientifically measuring metal content. This includes assaying drill residue, weighing and sampling crushed ore, and conducting metallurgical reconciliations. The leach solution is continuously sampled, and flow meters measure its quantity throughout the process. This meticulous approach, refined over 20 years at Rochester and 30 years at Wharf, allows for precise control and optimization of recovery rates. The Rochester expansion, in particular, highlights this focus, with its three-stage crushing circuit designed to achieve a finer crush size. Management reported that the average particle size at Rochester continued to trend downward in Q3 2025, reaching approximately 0.84 inches, an improvement from 0.92 inches in Q2 2025. The goal is to consistently achieve a 5/8-inch product, with 70% of the material already meeting this target in 2024. This finer crush size is critical because it directly correlates with higher metal recoveries, translating into more gold and silver extracted from the same volume of ore. The company's ability to track recoveries against its particle size distribution (PSD) models confirms the effectiveness of these modifications. For investors, this operational precision means higher production efficiency and enhanced revenue potential from existing reserves, contributing directly to improved profitability and cash flow.

In exploration, Coeur leverages advanced methodologies to de-risk and accelerate discovery. At Palmarejo, the implementation of high-resolution geophysics has proven highly impactful, enabling more accurate identification of subsurface host rocks and structures. This technological application allows for more efficient scout drilling, reducing exploration costs and increasing the probability of successful resource expansion. Similarly, a brand-new geological model at the Silvertip project is serving as an exciting tool for targeting and planning exploration programs. These advancements in geological modeling and geophysical surveying enhance the company's ability to identify and delineate new mineralized zones, extending mine lives and building a robust pipeline of future production. This strategic investment in exploration technology underpins Coeur's long-term growth strategy, providing a low-risk, high-return pathway to increasing its mineral inventory and sustaining its operational footprint.

Operational Excellence Drives Record Performance

Coeur Mining's strategic initiatives and technological optimizations are clearly translating into robust financial and operational performance. The third quarter of 2025 marked a period of record results, driven by higher realized metal prices, strong production levels, and disciplined cost management. Revenue for Q3 2025 reached a record $554.6 million, a 15% increase from Q2 2025. This growth was fueled by a 7% increase in gold and silver ounces sold, alongside a 4% and 15% rise in average realized gold and silver prices, respectively. For the nine months ended September 30, 2025, revenue surged to $1.40 billion, an 86% increase over the same period in 2024.

Operational highlights across the portfolio underscore this performance:

• Las Chispas: In its second full quarter under Coeur's ownership, Las Chispas delivered consistent production, with silver production increasing 6% and gold production up 2% quarter-over-quarter. The mine generated $66 million in free cash flow in Q3 2025, a 34% increase from the prior quarter, reflecting its high-grade, low-cost profile. The full integration of Las Chispas is now complete, and its outperformance led to an increase in its 2025 production guidance.
• Palmarejo: This Mexican operation delivered $47 million in free cash flow in Q3 2025, benefiting from strong recoveries and mill throughput, which reached their highest levels in six quarters. Despite a slight decrease in gold and silver production due to lower grades, the mine's strong year-to-date performance supported an uptick in its full-year 2025 production guidance and a reduction in cost guidance.
• Rochester: The expanded Rochester mine continued its ramp-up, with gold production increasing 3% and silver production 13% quarter-over-quarter, contributing $30 million in free cash flow. Despite planned downtime for crusher modifications, total tons placed on the leach pad increased over 9% to 8.3 million tons, utilizing direct-to-pad material to supplement crushed tons. Revised 2025 guidance for Rochester reflects the cumulative impact of downtime and the expected timing of ounces.
• Kensington: The multi-year underground development program at Kensington is yielding results, with gold production increasing for the third consecutive quarter to over 27,000 ounces. The mine achieved $31 million in free cash flow in Q3 2025, its highest in over six years, driven by higher gold prices, increased production, and a 9% decline in costs applicable to sales per ounce. Its 2025 production guidance has been increased, and cash per ounce guidance narrowed downward.
• Wharf: Wharf achieved its third consecutive quarter of increased production and lower costs, with quarterly gold production rising 16% to 28,000 ounces, generating $54 million in free cash flow. This strong performance led to an increase in full-year gold production guidance by 3,000 ounces and a reduction in cash guidance by $125 per gold ounce.

Consolidated GAAP net income for Q3 2025 reached a record $266.8 million, or $0.41 per diluted share, a substantial increase from $70.7 million in Q2 2025. This was significantly boosted by a $160 million tax benefit from the expected realization of U.S. deferred tax assets. For the nine months ended September 30, 2025, net income was $370.9 million, or $0.61 per diluted share, compared to $21 million in the prior year. Adjusted EBITDA for Q3 2025 hit a record $299.1 million, and free cash flow reached a record $189 million. These figures demonstrate the profound impact of strategic investments, operational improvements, and favorable market conditions.

Strengthening the Balance Sheet: A Path to Financial Dominance

Coeur Mining's financial position has undergone a dramatic transformation, with a clear focus on deleveraging and enhancing liquidity. As of September 30, 2025, the company reported $268.2 million in cash, cash equivalents, and restricted cash, alongside $399.3 million available under its revolving credit facility (RCF). This robust liquidity position is a direct result of strong operating cash flows and the strategic infusion of cash from the SilverCrest acquisition, which contributed $103.7 million in cash and $72 million from the monetization of acquired bullion and metal inventory in the first nine months of 2025.

The company has aggressively pursued debt reduction, repaying over $228 million in total debt during 2025. This has driven the net debt below $100 million, resulting in a net leverage ratio of 0.1x (Net Debt to Last Twelve Months Adjusted EBITDA) as of September 30, 2025. Management anticipates achieving its long-term goal of a net debt to EBITDA ratio of 0 during Q4 2025, well ahead of schedule. This rapid deleveraging is expected to cut interest expense in half compared to the 2024 level of $51 million.

In a testament to its strengthening financial health, Coeur announced a $75 million share repurchase program on May 27, 2025, effective through May 31, 2026. Nearly 10% of this program had been completed by the end of Q3 2025 at an average price of $11.79 per share. This initiative reflects management's confidence in the company's free cash flow profile and its commitment to enhancing per-share value for shareholders. The company expects its cash balance to exceed $500 million by year-end, solidifying its net cash position heading into 2026.

Competitive Positioning: A Mid-Tier Miner's Ascent

Coeur Mining occupies a mid-tier position within the precious metals market, characterized by its regional focus and diversified mine portfolio. While it may not possess the sheer scale or global diversification of industry giants like Newmont Corporation (NEM) or Barrick Gold Corporation (GOLD), Coeur is strategically carving out a leadership role, particularly in silver production. Its recent acquisition of New Gold is poised to significantly elevate its standing, positioning it among the top five silver producers globally.

Compared to larger competitors like Newmont and Barrick, Coeur has historically lagged in overall operational scale and financial resilience, often experiencing higher costs and less robust cash flow generation due to its narrower asset base. These larger players benefit from scale-driven cost advantages and can typically fund more extensive R&D initiatives, leading to faster innovation cycles. However, Coeur's strength lies in its concentrated exposure to high-potential, long-life assets in established North American jurisdictions. Its 100% ownership interests in its mines, such as Rochester and Las Chispas, provide enhanced control and decision-making agility, allowing for rapid implementation of operational improvements and exploration programs.

Against peers like Hecla Mining Company (HL), Coeur is more closely matched as a mid-tier player. Coeur's broader commodity mix, including gold, silver, zinc, and lead, offers a slight diversification advantage, particularly with the polymetallic Silvertip project. While direct quantitative comparisons of all financial metrics can be challenging, Coeur's recent performance, including record free cash flow and a rapidly improving net debt position, indicates a strong trajectory that is narrowing any previous gaps in profitability and efficiency. The company's disciplined focus on cost control, even amidst a stronger Mexican peso and higher royalty obligations, demonstrates its operational effectiveness in protecting and expanding margins.

Coeur's strategic response to the competitive landscape involves a dual approach: optimizing existing operations for maximum cash flow and pursuing high-return organic growth through brownfield exploration. This strategy, coupled with transformative acquisitions like SilverCrest and New Gold, allows Coeur to enhance its market position without solely relying on large, risky greenfield development projects. The company's commitment to safety and environmental performance, consistently ranking among the best in the U.S. mining sector, also contributes to its social license to operate and long-term sustainability, an increasingly important competitive factor.

Outlook and Growth Catalysts: A Golden Future

Coeur Mining is poised for a period of unprecedented growth and financial strength, driven by its optimized asset base and a favorable commodity price environment. The company has refined its full-year 2025 production guidance, projecting gold production between 392,500 and 438,000 ounces (midpoint of 415,250 ounces) and silver production between 17.1 and 19.15 million ounces (midpoint of 18.1 million ounces). These figures represent significant year-over-year increases of 20% for gold and 62% for silver compared to 2024, reflecting the full impact of the Rochester expansion and the Las Chispas acquisition.

Management's confidence in the company's trajectory is evident in its updated financial outlook. Full-year 2025 Adjusted EBITDA is now expected to exceed $1 billion, and free cash flow is projected to top $550 million, both higher than previous estimates. These projections are based on updated commodity price assumptions of $3,411 per ounce for gold and $37.82 per ounce for silver, along with favorable foreign exchange rates. The company anticipates averaging $75 million to $100 million of free cash flow per quarter for the remainder of 2025, which will be primarily allocated to debt reduction.

Longer-term growth is underpinned by Coeur's robust exploration pipeline. The company plans to invest approximately $85 million in exploration in 2025, with a focus on scout and expansion drilling to bolster inferred resources and extend mine lives across its portfolio. At Palmarejo, increased exploration in the East District, outside the Franco-Nevada gold stream area, targets highly prospective trends for future growth. Rochester is expected to achieve an annual crushing rate of over 30 million tons, leading to 7 million to 8 million ounces of silver and 70,000 ounces of gold annually by 2026. The Silvertip exploration project, while a few years out, is viewed as a significant long-term growth catalyst, particularly for silver production, with an initial assessment underway to evaluate its potential. The recent New Gold acquisition further amplifies this growth story, adding two Canadian mines and substantially increasing the combined company's production and cash flow profile for 2026 and beyond.

Navigating the Terrain: Key Risks and Considerations

Despite the compelling growth narrative, investors should be mindful of several key risks and considerations that could impact Coeur Mining's performance. The precious metals industry is inherently exposed to significant commodity price volatility. Fluctuations in gold and silver prices, driven by global economic conditions, U.S. dollar strength, and investor sentiment, can materially affect profitability and cash flow. A sustained decrease in metal prices could also necessitate write-downs of inventory, stockpiles, and long-lived assets.

Operational risks remain, particularly at the Rochester expansion, which has experienced "periodic pauses" and "planned modifications" during its ramp-up. While management has successfully addressed issues like crusher corridor modifications and beltway challenges, the achievement of consistent throughput and targeted crush sizes is critical for realizing the full potential of the expansion. Seasonal weather conditions can also impact open-pit operations like Rochester and Wharf, affecting loading rates and production in certain quarters.

Foreign currency exchange rate fluctuations, especially concerning the Mexican Peso, can impact financial results. An appreciation of the Peso, as observed in Q2 2025, can lead to non-cash provisions on deferred tax liabilities, although strong cost controls have mitigated the impact on margins. Additionally, the company faces litigation risks, including an ongoing dispute with the Mexican government over $28.70 million in unduly paid VAT and a recent wage and hour litigation settlement. While Coeur is actively pursuing recovery and resolving these matters, outcomes can be lengthy and unpredictable.

Finally, while the integration of Las Chispas has been seamless, the upcoming acquisition of New Gold introduces new integration risks, albeit with significant potential synergies. The company also expects to fall within the scope of the Pillar Two global minimum tax rules from January 1, 2025, though it does not anticipate a material impact due to its operations in higher-tax jurisdictions.

Conclusion

Coeur Mining, Inc. stands at the precipice of a transformative era, having successfully navigated a period of significant capital investment to emerge as a formidable player in the North American precious metals landscape. The company's strategic acquisitions, particularly Las Chispas and the pending New Gold transaction, coupled with the successful ramp-up of its Rochester expansion, are driving unprecedented production growth and robust free cash flow generation. This operational excellence, underpinned by a disciplined approach to process optimization and advanced exploration, is rapidly strengthening its balance sheet, with a net cash position expected by year-end 2025.

The investment thesis for Coeur is compelling: a mid-tier miner evolving into a senior producer, offering investors leveraged exposure to rising gold and silver prices through a balanced and geographically diversified portfolio. While operational and market risks persist, the company's clear strategic roadmap, commitment to deleveraging, and potential for shareholder returns through buybacks or dividends, position it for a sustained period of value creation. Coeur's journey from a century of evolution to a North American precious metals powerhouse is now fully underway, promising a golden future for its stakeholders.