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• Content META

  Title	Moody's Ratings upgrades Coeur's CFR to B2; outlook stable
  ID	7337933
  External ID	7587044646
  Author	Unknown
  Published Date	Feb. 27, 2025, 4:31 p.m.
  Summary	New York, February 27, 2025 -- Moody's Ratings (Moody's) upgraded Coeur Mining, Inc.'s ("Coeur") corporate family rating ("CFR") to B2 from B3, its probability of default rating ("PDR") to B2-PD from
  Tags	None
  URL	https://ratings.moodys.com/ratings-news/438170
  Sentiment	Negative: 0.01076    Neutral: 0.04892    Positive: 0.94033
  Relevance	0.03756

• Content Details

  Content ID	4643179
  Key	8818033a-54e2-4ee2-8bfe-98c3098c7400
  Content	New York, February 27, 2025 -- Moody's Ratings (Moody's) upgraded Coeur Mining, Inc.'s ("Coeur") corporate family rating ("CFR") to B2 from B3, its probability of default rating ("PDR") to B2-PD from B3-PD, and the rating on its senior unsecured notes to B3 from Caa1. The company's speculative grade liquidity rating ("SGL") was upgraded to SGL-2 from SGL-3. The ratings outlook remains stable. ESG, specifically governance considerations, was a key driver of the rating action. RATINGS RATIONALE The CFR upgrade reflects: (1) improved scale, following completion of the SilverCrest Metals Inc. ("SilverCrest") acquisition as an all-equity transaction, adding a low-cost asset to Coeur's portfolio; (2) a successful ramp up of the Rochester expansion project; (3) a return to positive free cash flow generation following several years of elevated investments; (4) prioritization of free cash flow for deleveraging; and (5) a strong gold and silver price environment, which should allow for further free cash flow generation and de-leveraging over the next 12-18 months. Coeur's B2 CFR is supported by a favorable geographical footprint, with more than 55% of its revenues coming from the U.S., potential for ample organic growth from the company's geologically prospective asset in Nevada and Silvertip mine in Canada, and low-cost position of its recently acquired Las Chispas mine. The rating is constrained by its modest scale, exposure to volatile gold and silver prices, high cost position of its other mines, and a relatively shorter mine life. The acquisition of SilverCrest added a low-cost Las Chispas gold and silver mine located in Mexico to Coeur's portfolio, which improved the blended cost profile of the company. This, combined with the all-equity nature of the transaction, was a credit positive. Coeur recently completed the ramp up of production at its Rochester mine in Nevada, which had required significant capital investment in recent years. This, along with the currently strong price environment for both gold and silver have allowed Coeur to return to positive free cash flow generation. Based on gold and silver price assumptions of $2,400/oz and $25/oz respectively, we expect Coeur to generate Moody's adjusted EBITDA of around $485 million in 2025, and Moody's adjusted free cash flow of around $70 million. We expect Coeur to utilize a vast majority of this free cash flow to reduce outstanding amounts on the revolver. We expect Coeur's Moody's adjusted Debt/EBITDA to improve to 1.0x by YE2025 from 1.9x at YE2024. Note however that current spot prices for gold and silver are well above our price assumptions for 2025 and if sustained at those levels, there could be upside risk to our estimates. Coeur's SGL-2 reflects good liquidity to support operations over the next 12-18 months. At December 31, 2024, Coeur had $55 million of cash, and $175 million of availability under its $400 million revolving credit facility (unrated), net of $29.3 million of LCs outstanding. Based on our gold and silver price assumptions, we expect Coeur to generate positive free cash flow in 2025, which we expect would be utilized to further reduce revolver borrowings. Coeur's revolving credit facility, which matures in February 2027, is subject to a consolidated net leverage ratio covenant of <3.5x, a senior secured leverage ratio covenant of <2.0x, and a consolidated interest coverage ratio covenant of >3.0x. The stable outlook reflects our expectation for stable operating performance at its mines, successful integration of Las Chispas, a successful extension of the mining permit at Palmarejo which currently expires in October 2025, and continued de-leveraging through the prioritization of free cash flow for debt reduction. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS We could consider an upgrade if Coeur further improves its scale and diversification, expands reserve life at its mines, continues to generate sustained positive free cash flow at various gold and silver price environments, reduces gross debt, leverage is sustained below 3.0x, and EBIT margins are sustained above 10%. Negative rating pressure could develop if there is a significant reduction in borrowing availability or liquidity, if commodity prices decline meaningfully from current levels and if production and operating costs do not meet the projected targets. Quantitatively, we would consider a downgrade if the leverage ratio is expected to remain above 4.0x on a sustained basis, EBIT margin is expected to remain below 8% and (CFO -Dividends) declines to below 15% of outstanding debt. Coeur Mining, Inc. is a mid-tier gold and silver producer. The company's producing properties include Las Chispas silver-gold mine in Mexico, Rochester silver-gold mine in Nevada, Palmarejo gold-silver complex in Mexico, Wharf gold mine in South Dakota and Kensington gold mine in Alaska. The company also owns the Silvertip project (silver-zinc-lead) in Canada. Coeur generated about $1.05 billion of revenue in 2024. The principal methodology used in these ratings was Mining published in October 2021 and available at https://ratings.moodys.com/rmc-documents/76085. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology. REGULATORY DISCLOSURES For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions. For any affected securities or rated entities receiving direct credit support/credit substitution from another entity or entities subject to a credit rating action (the supporting entity), and whose ratings may change as a result of a credit rating action as to the supporting entity, the associated regulatory disclosures will relate to the supporting entity. Exceptions to this approach may be applicable in certain jurisdictions. For ratings issued on a program, series, category/class of debt or security, certain regulatory disclosures applicable to each rating of a subsequently issued bond or note of the same series, category/class of debt, or security, or pursuant to a program for which the ratings are derived exclusively from existing ratings, in accordance with Moody's rating practices, can be found in the most recent Credit Rating Announcement related to the same class of Credit Rating. For provisional ratings, the Credit Rating Announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. Moody's does not always publish a separate Credit Rating Announcement for each Credit Rating assigned in the Anticipated Ratings Process or Subsequent Ratings Process. These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review. At least one ESG consideration was material to the credit rating action(s) announced and described above. Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/rmc-documents/435880. The Global Scale Credit Rating(s) discussed in this Credit Rating Announcement was(were) issued by one of Moody's affiliates outside the EU and UK and is(are) endorsed for use in the EU and UK in accordance with the EU and UK CRA Regulation. Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating. Sandeep Sama, CFA Vice President - Senior Analyst Karen Nickerson Associate Managing Director Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2025 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. 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  Data Source Name	Quantexa News
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