CompanyGraph
Coeur Mining, Inc.
CDE · NYSE Arca · United States
Extracts gold and silver from six geologically distinct North American mine sites, each locked to its own ore chemistry and regulatory permit, shipping concentrates to third-party smelters under off-take agreements.
Coeur Mining extracts gold and silver across six North American sites whose distinct ore chemistries — heap leach at Rochester and Wharf, cyanide milling at Kensington, and separate metallurgical processing at Palmarejo — prevent any shared processing infrastructure, forcing each site to generate chemically distinct concentrates that must be governed by separate, site-specific off-take agreements with third-party smelters. Those agreements embed grade tolerances and delivery schedules that cannot be substituted without full renegotiation, so the company's operational continuity depends on maintaining each specific smelter relationship in parallel with each mine's output. At Kensington, seasonal Arctic logistics windows impose a hard ceiling on annual throughput that underground development capital cannot overcome, because no alternative corridor exists when the single viable route closes. At Palmarejo, USMCA export licenses attach to specific shipping routes and counterparties, meaning any modification to cross-border trade terms propagates directly into delivery commitments already written into those contracts, creating a second site where regulatory change translates immediately into operational constraint.
How does this company make money?
Gold and silver concentrates are sold per ounce to third-party smelters under off-take agreements, with prices tied to London Bullion Market spot prices minus negotiated smelting and refining charges, creating direct exposure to precious metals price movements.
What makes this company hard to replace?
Long-term off-take agreements contain specific concentrate grade and delivery timing clauses that would require full renegotiation before an alternative supplier could step in. Established cross-border shipping routes and customs procedures for Palmarejo concentrates create regulatory friction for any competitor attempting substitution. Mine-specific environmental permits and operating licenses are non-transferable to alternative operators.
What limits this company?
Kensington's underground ore can only exit Alaska through transportation infrastructure subject to seasonal Arctic accessibility windows. When those windows close or logistics equipment fails, no alternative routing exists and concentrate shipments halt entirely, creating a hard ceiling on annualized Kensington throughput that additional underground development capital alone cannot relieve.
What does this company depend on?
The company depends on off-take agreements with third-party smelters to process its concentrates, heap leach pad permits at Rochester and Wharf, cross-border export licenses for Palmarejo concentrate shipments from Mexico, cyanide supply for heap leach operations, and underground ventilation systems at Kensington.
Who depends on this company?
Third-party smelters receiving concentrates would lose feedstock volumes and need to source replacements. Electronics manufacturers purchasing refined gold from downstream processors would face supply chain disruption requiring substitute North American precious metals suppliers. Mexican government tax revenues from Palmarejo operations would decline, necessitating replacement mining activity.
How does this company scale?
Mine site infrastructure and processing equipment — such as additional heap leach cells or underground development — can be expanded at relatively low incremental cost. What cannot be replicated through capital alone is the geographic dispersion across six mine sites in three countries, because each location represents a unique geological deposit with its own metallurgy, permitting history, and infrastructure requirements.
What external forces can significantly affect this company?
Modifications to the NAFTA-USMCA trade framework could affect cross-border concentrate shipments from the Mexican operations. Federal Reserve interest rate policy influences gold prices through dollar strength and shifts in investment demand. Climate change regulations in Canada and relevant US states affect heap leach environmental permitting and water usage rights.
Where is this company structurally vulnerable?
Kensington's position depends entirely on maintaining continuity through the single viable Arctic logistics corridor. Any extended disruption to that corridor — whether from weather, equipment failure, or infrastructure withdrawal — eliminates the operational advantage immediately and cannot be bridged by capital substitution, exposing the mine to prolonged production halts with no rerouting option.