Coeur Mining Inc. revised its capital expenditure by about 14% above the high end of its previous guidance, reflecting inflationary pressures and cost overruns associated with the Rochester mine expansion. In addition, the company expects 16% lower production from the Kensington mine after operational challenges. We now project weaker-than-expected credit metrics for 2023 following the company?s year-to-date June 30, 2023, financial performance, its revised capital expenditure and production guidance, and S&P Global Ratings? updated gold price assumptions (see ? S&P Global Ratings Metal Price Assumptions: Holding Higher For Longer ,? published Oct. 16, 2023, on Ratings Direct). We expect leverage to deteriorate further to 8x-9x, driven by lower production and our expectation of increased drawings on the revolver to complete
