Gold prices steady ahead of Fed decision; weekly weakness noted
On Tuesday, TD Cowen initiated coverage on Coeur Mining Inc (NYSE:CDE) with a Buy rating and set a price target of $7.00. The stock, currently trading at $5.13, shows potential upside according to InvestingPro analysis, which indicates the company is currently undervalued. Analysts at TD Cowen highlighted the company’s potential for peer-leading production growth and robust free cash flow (FCF), driven by the ramp-up of its Rochester mine and the recent acquisition of SilverCrest.
The analysts pointed out that the SilverCrest acquisition strengthens Coeur Mining’s portfolio by adding a high-grade silver asset. This complements the development of Rochester, which is anticipated to contribute to approximately 30% production growth in 2025. This growth is expected to come with a 5% reduction in costs, leading to an all-in sustaining cost (AISC) of $22.31 per ounce of silver equivalent (AgEq).
TD Cowen’s coverage note also mentioned that Coeur Mining is continuing to advance exploration at its Silvertip mine. The ongoing drilling at Silvertip is showing potential for a larger-scale restart, providing the company with additional growth optionality.
The analysts believe that these strategic developments position Coeur Mining favorably in the market. They anticipate that the combined effect of the company’s flagship mines and the exploration advancements will result in a strong growth outlook and improved fundamentals for Coeur Mining. This optimism is reflected in the company’s market performance, with a notable 58.33% return over the past year. For deeper insights into Coeur Mining’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Coeur Mining has reported several key developments. Moody’s Ratings upgraded Coeur Mining’s corporate family rating to B2 from B3, citing the acquisition of SilverCrest Metals (NYSE:SILV) and positive cash flow generation as significant factors. The company has also released a technical report for the Las Chispas Mine, providing insights into its potential, though specific operational changes remain undisclosed. BMO Capital Markets resumed coverage on Coeur Mining with an Outperform rating, highlighting the acquisition’s boost to production capabilities and projecting a $74 million increase in free cash flow by 2025. Additionally, Coeur Mining has announced the expansion of its board of directors, appointing N. Eric Fier and Pierre Beaudoin, contingent on the completion of the SilverCrest acquisition. The company has received Mexican antitrust approval for the acquisition, marking a significant step towards finalizing the deal. Coeur Mining has also addressed legal challenges regarding its proxy statement by providing supplemental disclosures to ensure transparency for its stockholders. These recent developments reflect Coeur Mining’s strategic moves to strengthen its operations and financial standing.
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