Gold prices bounce off 3-week lows; demand likely longer term
On Wednesday, Roth/MKM maintained a positive stance on Coeur Mining Inc (NYSE:CDE) shares, raising the company's stock price target to $8.50, up from the previous $8.00. The firm continues to recommend a Buy rating for the mining company's shares. The adjustment in the price target was attributed to the current performance of precious metals in the market, with gold prices surpassing $2,640 per ounce and silver prices exceeding $31.50 per ounce.
The analyst's recent site visit to Coeur Mining's operations did not directly influence the firm's financial estimates or valuation models. However, the visit reinforced Roth/MKM's optimistic view of the company's Rochester mine. The analyst's comments indicated that the site visit confirmed their positive outlook but did not result in changes to their estimates or valuation of Coeur Mining.
The increase in the price target reflects the higher-than-anticipated prices of precious metals, which have notably exceeded Roth/MKM's forecasts. The strong performance of gold and silver in the market has contributed to the firm's decision to raise the target price for Coeur Mining shares.
The analyst reiterated the Buy rating for Coeur Mining, emphasizing confidence in the company's prospects. This rating suggests that Roth/MKM believes Coeur Mining's stock will perform well and is worth acquiring at its current price.
Coeur Mining Inc, listed on the New York Stock Exchange under the ticker symbol NYSE:CDE, is a precious metals mining company that operates several mines in North and South America. The company focuses on the discovery, acquisition, development, and operation of silver and gold mining properties.
In other recent news, Coeur Mining Inc. has seen substantial changes and developments. The company reported significant progress in its second-quarter operations, particularly at the Rochester mine, which experienced a near 40% increase in silver and gold production. This progress was mirrored in a 136% surge in the company's quarterly adjusted EBITDA, largely due to higher commodity prices.
BMO Capital has raised its price target for Coeur Mining Inc. to $8.00, up from the previous $7.50, following a site visit to the company's Rochester mine. The firm noted the operational successes at the site, which they believe will contribute to a rapid deleveraging of the company's balance sheet.
In personnel news, Coeur Mining's director, Robert Krcmarov, resigned to pursue a new professional opportunity, according to a recent filing with the U.S. Securities and Exchange Commission. His departure was not due to any disagreements with the company's operations, policies, or practices.
In addition to these developments, the company has acquired two key concessions from Fresnillo (LON:FRES), expanding opportunities at its Palmarejo operation. Exploration efforts at Silvertip and Kensington are also underway, set to further enhance the company's portfolio. These recent developments indicate a clear path for Coeur Mining towards achieving positive free cash flow and reducing debt.
InvestingPro Insights
Following the recent positive outlook from Roth/MKM on Coeur Mining Inc (NYSE:CDE), current InvestingPro data adds further context to the company's financial landscape. With a market capitalization of $3 billion, Coeur Mining is trading near its 52-week high, at 97.9% of this threshold, showcasing investor confidence in its market position.
Despite the challenges of a negative P/E ratio over the last twelve months, which stands at -38.47, the company has experienced a substantial price total return of 207.41% over the past year, indicating a strong performance in share price appreciation.
InvestingPro Tips suggest that while Coeur Mining is not profitable over the last twelve months, analysts are predicting the company will turn a profit this year. This aligns with the company's significant returns over the last week, month, and three months, highlighting a trend of robust short-term investment returns. For investors seeking additional insights, there are over 12 InvestingPro Tips available, including the expectation of net income growth and a note on the stock's volatility, which can be found at https://www.investing.com/pro/CDE.
The recent surge in precious metal prices, as noted by Roth/MKM, is a key factor in the company's promising outlook. With a strong revenue growth of 17.7% in the last twelve months as of Q2 2024, Coeur Mining's financial performance seems to be on an upward trajectory, which may justify the firm's raised price target and Buy rating.
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