Improving financial health
Coeur Mining’s (CDE) debt at the end of 1Q17 was $219.1 million, which is 57.0% lower than at the end of 1Q16. Its net debt was just $9.0 million at the end of 1Q17, compared to ~$340.0 million one year ago.
Its interest expenses in 1Q17 were just $3.6 million. The reduction in net debt has caused interest expenses to fall 70.0% over the past year and a half.
Its financial metrics have also improved significantly, with a net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 0.4x at the end of 1Q17. The same ratio was at 2.5x at the end of 1Q16.
Hecla Mining (HL) had a net debt of $299.7 million at the end of 1Q17, compared to $314.0 million at the end of 4Q16 and $384.2 million at the end of 1Q16. Most of its debt is long-dated, with notes coming due in 2021. Its liquidity was $313.0 million at the end of 1Q17. Fiscal Q17 was the sixth consecutive quarter of improving debt metrics. Its net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) at the end of 1Q17 was 1.1x, compared to 3.0x at the end of 1Q16.
Net cash position
Tahoe Resources (TAHO) is in a net cash position. It had cash and cash equivalents of $175.4 million and net cash of $126.8 million after debt and leases at the end of 1Q17. Its balance sheet is strong, which should help fund its growth going forward.
First Majestic Silver (AG) ended 1Q17 with $127.6 million in cash and cash equivalents and $145.6 million in total liquidity. Along with cash generation, the company’s liquidity appears to be sufficient to fund internal growth projects as well as debt repayments.
Pan American Silver (PAAS) ended 1Q17 with $183.6 million in cash, which is a rise of $2.7 million from December 31, 2016. It also had an undrawn revolving credit facility of $263.8 million at the end of 1Q17. It had $43.8 million in debt at the end of 1Q17.
Next, we’ll look at silver miners’ (SIL) liquidity profiles and see what we can learn from them.