Coeur Mining issues shares to settle litigation

Coeur Mining, Inc. (NYSE:CDE), a precious metals producer with a market capitalization of $3.88 billion, has resolved its litigation with Maverix Metals Inc. by amending a royalty agreement and issuing shares, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. The company, headquartered in Chicago, Illinois, announced that on Monday, it issued 595,267 shares of its common stock to an affiliate of Maverix, valued at $3.75 million. According to InvestingPro data, the company has demonstrated strong financial performance, with revenue growth of 28.35% over the last twelve months.

The settlement stems from a dispute over the terms of a royalty on part of the Kensington mine property, which Coeur Mining’s subsidiary, Coeur Alaska, Inc., operates. While Coeur Alaska maintained the validity of its claims, it opted for a settlement to avoid the uncertainties of litigation. The company’s operational efficiency is reflected in its healthy gross profit margin of 39.41%, according to recent financial data.

As part of the agreement reached on March 28, 2024, Coeur Alaska was to issue a total of up to 2,455,000 shares of common stock to Maverix. The first issuance, worth $3.0 million, was scheduled for April 2, 2024, followed by the recent second issuance. The settlement terms allow for the value of issued equity to be credited against the amended royalty as payment for production prior to January 1, 2024.

The issuance of these Settlement Shares is exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. Additionally, the opinion of Gibson, Dunn & Crutcher LLP regarding the legal aspects of the share issuance was filed as an exhibit to the 8-K report and incorporated by reference.

This transaction is part of Coeur Mining’s broader strategy to manage its financial and legal affairs efficiently. The company is incorporated in Delaware and has historically been involved in the exploration, development, and production of gold and silver. The settlement and share issuance are expected to put the legal dispute to rest and allow Coeur Mining to focus on its operational activities. The company’s stock has shown remarkable performance, delivering a 68.17% return over the past year. InvestingPro analysis indicates the stock is currently fairly valued, with analyst price targets ranging from $7.00 to $10.50, suggesting potential upside. For deeper insights into Coeur Mining’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Investors and stakeholders can find further details of the share issuance and the legal opinion in the exhibits attached to the 8-K filing, which is publicly available through the U.S. Securities and Exchange Commission’s database. This news is based on the press release statement filed by Coeur Mining, Inc.

In other recent news, Coeur Mining has reported several significant developments impacting its operations and financial outlook. The company recently disclosed a technical report summary for the Las Chispas Mine, providing insights into its value and prospects, as part of an 8-K filing with the U.S. Securities and Exchange Commission. Moody’s Ratings upgraded Coeur Mining’s corporate family rating to B2, citing the successful acquisition of SilverCrest Metals (NYSE:SILV) and the expansion of the Rochester project as key factors. This acquisition has also been positively noted by BMO Capital Markets, which resumed coverage of Coeur Mining with an Outperform rating and a $9.00 price target, highlighting the significant production boost and financial strengthening from the acquisition.

Additionally, TD Cowen initiated coverage on Coeur Mining with a Buy rating and a $7.00 price target, emphasizing the company’s potential for production growth and robust free cash flow. The acquisition of SilverCrest has been a central theme, strengthening Coeur’s portfolio with the addition of the Las Chispas mine, which is expected to contribute significantly to production. Coeur Mining has also announced changes to its board of directors, increasing its size and appointing new directors as part of its business combination with SilverCrest. These strategic moves are anticipated to enhance Coeur’s growth outlook and improve its fundamentals, according to analysts.

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