Coeur Mining initiates $75 million share buyback program

Published 27/05/2025, 12:06
Coeur Mining initiates $75 million share buyback program

CHICAGO - Coeur Mining, Inc. (NYSE: CDE), a U.S.-based precious metals producer with a market capitalization of $5 billion, has announced the launch of a $75 million share repurchase program, which is set to remain active until May 31, 2026. The move, as stated by Mitchell J. Krebs, the company’s President and CEO, aims to increase shareholder value and reflects the company’s confidence in its financial health, spurred by favorable gold and silver prices and the performance of its mines, including the newly-acquired Las Chispas and the expanded Rochester mine. The company’s stock has shown remarkable strength, delivering a 36.5% return year-to-date and trading near its 52-week high. According to InvestingPro analysis, the company maintains a "GREAT" overall financial health score.

The repurchase program will be executed opportunistically, with transactions occurring in the open market or through other means depending on market conditions, legal requirements, and other pertinent factors.

Coeur Mining’s portfolio includes five wholly-owned operations: the Las Chispas silver-gold mine in Sonora, Mexico; the Palmarejo gold-silver complex in Chihuahua, Mexico; the Rochester silver-gold mine in Nevada; the Kensington gold mine in Alaska; and the Wharf gold mine in South Dakota. The company also fully owns the Silvertip polymetallic critical minerals exploration project in British Columbia.

The announcement includes forward-looking statements, cautioning that actual results could vary due to risks and uncertainties inherent in mining, market price fluctuations, production and cost variances, regulatory changes, and other factors.

The share repurchase program is part of Coeur Mining’s broader strategy to reduce debt, invest in high-return growth opportunities, and begin returning capital to shareholders following a period of significant investment. This announcement is based on a press release statement from Coeur Mining.

In other recent news, Coeur Mining Inc. reported a strong performance in the first quarter of 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $0.11, compared to the anticipated loss of $0.01. The company’s revenue for the quarter reached $360 million, exceeding the forecasted $309.6 million. S&P Global Ratings upgraded Coeur Mining’s credit rating to ’B+’ from ’B-’, citing robust credit metrics and increased production at the Rochester mine. The company’s senior secured debt rating was also raised to ’BB’, reflecting improved financial stability.

Furthermore, Coeur Mining expanded its operations by acquiring SilverCrest Metals Inc., which added the Las Chispas mine to its portfolio, contributing to increased gold and silver production. The company projects a significant year-over-year increase in gold and silver production, attributed to the newly acquired mine and the expansion at Rochester. During its Annual Stockholders’ Meeting, Coeur Mining received shareholder approval to amend its 2018 Long-Term Incentive Plan, extending its term and increasing the number of shares available for issuance.

Shareholders also ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year 2025. Coeur Mining’s management emphasizes prioritizing debt reduction using free cash flows, aiming for a leverage ratio close to zero by year-end. The company remains focused on operational improvements and strategic initiatives, setting a positive tone for the remainder of the year.

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