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On Tuesday, BMO Capital Markets resumed coverage on Coeur Mining Inc (NYSE:CDE), issuing an Outperform rating and setting a price target of $9.00. According to InvestingPro data, the stock is currently trading slightly below its Fair Value, with analysts setting targets as high as $10.50. The move comes after a hiatus due to research restrictions linked to Coeur Mining’s acquisition of SilverCrest Metals (NYSE:SILV).
The analyst at BMO Capital highlighted that the acquisition brings a significant boost to Coeur Mining’s production capabilities. The Las Chispas mine, previously owned by SilverCrest, is expected to contribute approximately 10 million ounces of silver-equivalent production annually. This addition is anticipated to elevate Coeur’s total production beyond 50 million ounces of silver equivalent in 2025. The company has shown strong revenue growth of 31% in the last twelve months, reaching over $1 billion.
The transaction is also seen as a positive influence on Coeur Mining’s financials. The analyst noted that SilverCrest’s robust treasury is set to strengthen Coeur’s balance sheet. Furthermore, the company’s net leverage ratio is projected to decrease to 0.7 times in the first quarter. InvestingPro analysis shows the company maintains a healthy current ratio of 1.09 and a moderate debt-to-equity ratio of 0.56, suggesting solid financial stability.
The resumed coverage and reaffirmed Outperform rating are based on the strategic benefits that the SilverCrest acquisition provides to Coeur Mining. The expected increase in free cash flow (FCF) by $74 million in 2025 further underpins the positive outlook from BMO Capital Markets.
The analyst concluded their remarks by reiterating the Outperform rating and the $9.00 price target, reflecting confidence in Coeur Mining’s growth trajectory following the SilverCrest Metals acquisition.
In other recent news, Coeur Mining has announced key changes to its board of directors and has amended a significant business combination agreement with SilverCrest Metals Inc (TSX:SIL). The amendment allows for certain actions under the Plan of Arrangement to be taken on non-business days. The board of directors will expand from eight to ten members, with N. Eric Fier and Pierre Beaudoin joining the board contingent upon the effective time of the Arrangement.
In addition, the company received approval to increase the number of authorized shares of common stock from 600 million to 900 million and to issue shares of Coeur common stock to SilverCrest shareholders in connection with the Arrangement. These developments are part of Coeur’s strategic business combination transaction with SilverCrest, initially announced in late 2024.
Furthermore, Coeur Mining has secured approval from the Mexican Federal Economic Competition Commission (COFECE) for its pending acquisition of SilverCrest Metals Inc. This approval is a significant step towards finalizing the strategic business combination transaction. Amid these developments, Coeur Mining has faced legal actions with complaints filed in New York alleging that the proxy statement for the special meeting omits material information. In response, Coeur has supplemented disclosures in the proxy statement to address the issues raised.
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