Coeur Mining Sees Second-Half Surge as Canadian Mines Ramp Up

Key Points

• Coeur Mining expects a second-half 2026 production surge as its newly acquired Rainy River and New Afton mines ramp up, alongside expansion projects at Rochester and Wharf. The company forecasts approximately 630,000 ounces of gold, 19 million ounces of silver and 40 million pounds of copper for 2026.
• The Canadian assets offer significant longer-term growth potential: New Afton’s K-Zone could extend mine life beyond the expected 2032 exhaustion of the C-Zone, while Rainy River is evaluating underground and open-pit opportunities to sustain mill operations.
• Coeur expects nearly $1.5 billion in 2026 free cash flow and is balancing reinvestment with shareholder returns, including a $750 million buyback program. Management plans to focus on assets in Mexico, the United States and Canada while advancing projects such as Silvertip.

Coeur Mining NYSE: CDE expects production to accelerate in the second half of 2026 as recently acquired Canadian operations ramp up and several existing mines benefit from expansion projects, President and CEO Mitchell Krebs said during a company event.

Krebs said the company closed its New Gold transaction in late March, adding the Rainy River mine in Ontario and the New Afton mine in British Columbia. Coeur expects to produce about 630,000 ounces of gold, 19 million ounces of silver and 40 million pounds of copper during 2026, with revenue projected to be approximately 65% gold, 30% silver and 5% copper.

The company now operates seven North American assets, including two in Mexico, three in the United States and two in Canada. Krebs said 2027 should benefit from a full 12 months of production from the former New Gold assets.

Second-Half Production Drivers

At New Afton, production is expected to increase as the C-Zone block-cave operation ramps up. Rainy River is also in an underground mining ramp-up, with Coeur targeting an underground mining rate of 5,000 tonnes per day by year-end.

Other anticipated second-half catalysts include an expanded leach pad at the Rochester silver and gold mine in Nevada and the completion of crusher projects at the Wharf mine in South Dakota. Krebs said Rochester has material close to the liner that could support a “nice surge of ounces” in the back half, while Wharf is on a trajectory for a stronger second half after its first-half projects.

Coeur modestly lowered production guidance for the newly acquired Canadian assets during the second quarter after taking operational control beginning April 1. Krebs characterized the change as a near-term adjustment intended to establish more achievable 2026 targets rather than a change in the company’s longer-term view.

Longer-Term Potential at Canadian Mines

At New Afton, Coeur is advancing work on the K-Zone, which Krebs said could extend the mine’s life beyond the expected exhaustion of the C-Zone around 2032. The company released an initial K-Zone resource following the acquisition totaling about 54 million tonnes, compared with a current C-Zone reserve of roughly 35 million tonnes.

Recent drilling expanded the K-Zone by 300 meters, Krebs said. Coeur is conducting infill drilling and engineering work to support feasibility studies, with the goal of having the area ready to enter production after C-Zone mining concludes. He said the K-Zone appears likely to be larger than both the C-Zone and the initial resource estimate.

At Rainy River, Coeur is evaluating both underground and open-pit opportunities to keep its 26,000-tonne-per-day mill supplied. Existing tailings capacity is sufficient, or slightly more than sufficient, for the current mine plan through approximately 2035 or 2036, according to Krebs. Any extended mine life would require additional tailings solutions, potentially including in-pit disposal, raising the existing facility or building a new one.

Exploration and Operating Assets

Coeur is also pursuing growth at its Palmarejo operation in Mexico through the La Union and San Miguel deposits east of the current mining area. Krebs said the company has spent more than a decade consolidating land outside the area covered by its gold stream agreement with Franco-Nevada.

Under that agreement, Coeur sells 50% of gold produced within the existing mining area to Franco-Nevada for $800 per ounce, Krebs said. Development of new eastern ore sources could enable Coeur to sell production at spot prices. The company is evaluating whether those deposits would support standalone infrastructure or whether material could be hauled to Palmarejo’s existing processing mill.

Las Chispas in Sonora, Mexico, acquired through Coeur’s SilverCrest Metals transaction, is expected to provide steadier production than the company’s ramping operations. Krebs said the mine produces 5 million to 6 million ounces of silver and 50,000 to 60,000 ounces of gold annually. He described it as Coeur’s lowest-cost and highest-margin asset, while noting that the acquired SilverCrest balance sheet helped accelerate deleveraging efforts.

Wharf’s updated mine plan increased reserves by 65% and extended its reserve-based mine life to 12 years, according to the discussion. Krebs said the asset is expected to generate 80,000 to 100,000 ounces of gold annually and has produced more than $650 million in free cash flow since Coeur acquired it from Goldcorp in 2015 for $99.5 million.

Capital Allocation and Project Pipeline

Coeur is advancing a pre-feasibility study for its Silvertip silver, zinc and lead project in northeastern British Columbia. Krebs said the study is expected around year-end, after which the company will decide whether to proceed to a feasibility study. He cited higher metal prices, resource growth and Canadian support for critical-minerals projects as favorable factors.

On capital allocation, Krebs said Coeur expects nearly $1.5 billion in free cash flow during 2026 and plans to balance reinvestment, shareholder returns and balance-sheet flexibility. The company announced a $750 million share-repurchase program in May and has repurchased about $220 million of stock since then, he said.

Krebs said Coeur intends to remain focused on Mexico, the United States and Canada for the next three to five years, rather than pursuing opportunities in other regions. The company aims to retain meaningful silver exposure, with a range of roughly 30% to 50% of revenue viewed as manageable, while prioritizing financial returns over commodity mix alone.

About Coeur Mining (NYSE:CDE)

Coeur Mining, Inc is a precious metals mining company that explores, develops, and operates mines primarily producing gold and silver. The company also conducts related activities, including mineral exploration, project development, processing, and the sale of recovered metals.

Coeur's operating portfolio has included the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, the Rochester silver-gold mine in Nevada, and the Palmarejo and Las Chispas operations in Mexico.

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