Coeur Mining shares target raised on expansion success

Published 23/09/2024, 14:24
Coeur Mining shares target raised on expansion success


BMO Capital has increased its price target for Coeur Mining Inc (NYSE:CDE) to $8.00, up from the previous $7.50. The firm has also reaffirmed its Outperform rating for the mining company's shares. The revision follows a recent site visit by analysts to Coeur's Rochester mine in Nevada.

During the visit, which took place last week, BMO Capital's representatives observed the Rochester expansion project operating at full capacity. The new crushing corridor's flexibility was a particular point of interest, indicating potential for operational improvements.

Conversations during the visit also revealed opportunities for further upside, such as optimizing crush sizes and incorporating higher grades into the mining plan.

The site visit has reinforced BMO Capital's expectations for Coeur Mining to reach a free cash flow (FCF) inflection point in the second half of the year. This anticipated improvement in cash flow is projected to contribute to rapid deleveraging of the company's balance sheet.

Coeur Mining's management has not publicly responded to the updated price target. The company's stock performance and future financial results will likely be influenced by its ability to maintain the operational successes observed at the Rochester site.

In other recent news, Coeur Mining, Inc. has experienced substantial changes and developments. The company's director, Robert Krcmarov, resigned to pursue a new professional opportunity, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. His departure was not linked to any disagreements with the company's operations, policies, or practices.

In their second-quarter operations, Coeur Mining reported significant progress, particularly at the Rochester mine with a near 40% increase in silver and gold production. The company's quarterly adjusted EBITDA also soared by 136%, largely due to higher commodity prices. Coeur Mining is on a clear path to achieving positive free cash flow and reducing debt.

Additional developments include the acquisition of two key concessions from Fresnillo (LON:FRES), expanding opportunities at its Palmarejo operation. Exploration efforts at Silvertip and Kensington are set to enhance the company's portfolio further.


InvestingPro Insights


In light of BMO Capital's recent price target increase for Coeur Mining Inc (NYSE:CDE), real-time data from InvestingPro provides additional context for investors considering the firm's prospects. The company's market capitalization stands at approximately $2.78 billion, reflecting its position in the market. Despite a negative P/E ratio over the last twelve months, which indicates a lack of profitability during that period, analysts are optimistic about the company's future. They expect net income to grow this year, with two analysts having revised their earnings upwards for the upcoming period.

Investors should note Coeur Mining's stock price movements have been quite volatile, yet the company has seen a strong return over the last three months, with a substantial price uptick over the last six months. The company is trading near its 52-week high, at 94.32% of that peak, showcasing the recent positive momentum in its share price. However, it's important to be aware that Coeur Mining does not pay a dividend, which may be a consideration for income-focused investors.

For those interested in a deeper dive into Coeur Mining's financials and performance metrics, InvestingPro offers a suite of additional tips to guide investment decisions. To explore these insights further, visit https://www.investing.com/pro/CDE for a comprehensive analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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